Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Aug. 03, 2020
Document And Entity Information (Abstract)
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
Entity Registrant Name	Metropolitan Bank Holding Corp.
Entity File Number	001-38282
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	13-4042724
Entity Address, Address Line One	99 Park Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10016
City Area Code	212
Local Phone Number	659-0600
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MCB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,293,709
Entity Central Index Key	0001476034
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 9,529	$ 8,116
Overnight deposits	813,147	381,104
Total cash and cash equivalents	822,676	389,220
Investment securities available for sale, at fair value	189,359	234,942
Investment securities held to maturity (estimated fair value of $3,406 and $3,712 at June 30, 2020 and December 31, 2019 respectively)	3,319	3,722
Equity investment securities	2,301	2,224
Total securities	194,979	240,888
Other investments	15,731	21,437
Loans, net of deferred fees and unamortized costs	2,892,274	2,672,949
Allowance for loan losses	(32,505)	(26,272)
Net loans	2,859,769	2,646,677
Receivable from prepaid card programs, net	31,123	11,581
Accrued interest receivable	11,148	8,862
Premises and equipment, net	15,065	12,100
Prepaid expenses and other assets	10,217	17,074
Goodwill	9,733	9,733
Total assets	3,970,441	3,357,572
Deposits:
Noninterest-bearing demand deposits	1,526,439	1,090,479
Interest-bearing deposits	1,868,300	1,700,295
Total deposits	3,394,739	2,790,774
Federal Home Loan Bank of New York advances	104,000	144,000
Trust preferred securities	20,620	20,620
Subordinated debt, net of issuance cost	24,629	24,601
Secured borrowing	41,948	42,972
Accounts payable, accrued expenses and other liabilities	34,780	23,556
Accrued interest payable	1,199	1,229
Prepaid third-party debit cardholder balances	31,357	10,696
Total liabilities	3,653,272	3,058,448
Stockholders' equity:
Common stock, $0.01 par value, 25,000,000 shares authorized, 8,294,801 and 8,312,918 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	82	82
Additional paid in capital	217,643	216,468
Retained earnings	98,272	81,364
Accumulated other comprehensive gain, net of tax effect	1,169	1,207
Total stockholders' equity	317,169	299,124
Total liabilities and stockholders' equity	3,970,441	3,357,572
Class B Preferred Stock
Stockholders' equity:
Class B preferred stock, $0.01 par value, authorized 2,000,000 shares, 272,636 issued and outstanding at June 30, 2020 and December 31, 2019	3	3
Total stockholders' equity	$ 3	$ 3

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Securities held to maturity	$ 3,406	$ 3,712
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	8,294,801	8,312,918
Common stock, shares outstanding	8,294,801	8,312,918
Class B Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	272,636	272,636
Preferred stock, shares outstanding	272,636	272,636

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Interest and dividend income:
Loans, including fees	$ 32,983	$ 28,019	$ 65,811	$ 53,069
Securities:
Taxable	636	373	2,008	606
Tax-exempt		4		11
Money market funds	4	41	34	75
Overnight deposits	374	2,111	1,967	3,520
Other interest and dividends	226	280	471	537
Total interest income	34,223	30,828	70,291	57,818
Interest expense:
Deposits	2,915	5,936	8,682	10,582
Borrowed funds	583	1,322	1,319	2,426
Trust preferred securities interest expense	159	228	349	485
Subordinated debt interest expense	405	405	809	810
Total interest expense	4,062	7,891	11,159	14,303
Net interest income	30,161	22,937	59,132	43,515
Provision (credit) for loan losses	1,766	1,950	6,556	(81)
Net interest income after provision for loan losses	28,395	20,987	52,576	43,596
Non-interest income:
Service charges on deposit accounts	803	908	1,883	1,727
Prepaid third-party debit card income	2,108	1,422	3,729	2,679
Other service charges and fees	411	313	1,036	591
Unrealized gain on equity securities	19	31	55	70
Gain on sale of securities	2,312		3,286
Total non-interest income	5,653	2,674	9,989	5,067
Non-interest expense:
Compensation and benefits	10,058	7,921	20,017	15,411
Bank premises and equipment	1,887	1,348	4,387	2,683
Professional fees	882	917	1,837	1,711
Licensing fees and technology costs	3,460	2,618	7,265	4,003
Other expenses	1,997	1,920	4,291	3,610
Total non-interest expense	18,284	14,724	37,797	27,418
Net income before income tax expense	15,764	8,937	24,768	21,245
Income tax expense	4,953	2,880	7,860	6,657
Net income	$ 10,811	$ 6,057	$ 16,908	$ 14,588
Earnings per common share:
Basic earnings per common share (in dollars per share)	$ 1.30	$ 0.73	$ 2.04	$ 1.76
Diluted earnings per common share (in dollars per share)	$ 1.28	$ 0.71	$ 2.00	$ 1.72

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Net income	$ 10,811	$ 6,057	$ 16,908	$ 14,588
Other comprehensive income:
Unrealized holding gain (loss) arising during the period	(1,428)	1,009	5,110	1,394
Reclassification adjustment for gain included in net income	(2,312)	0	(3,286)	0
Tax effect	1,179	(315)	(577)	(442)
Net of tax	(2,561)	694	1,247	952
Unrealized loss on cash flow hedges:
Unrealized holding loss arising during the period	(817)		(1,877)
Tax effect	258		592
Net of tax	(559)		(1,285)
Total other comprehensive income (loss)	(3,120)	694	(38)	952
Comprehensive Income	$ 7,691	$ 6,751	$ 16,870	$ 15,540

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Class B Preferred Stock Previously Reported	Class B Preferred Stock	Previously Reported Common Stock	Previously Reported Additional Paid-in Capital	Previously Reported Retained Earnings	Previously Reported AOCI (Loss), Net	Previously Reported	Common Stock	Additional Paid-in Capital	Retained Earnings	AOCI (Loss), Net	Total
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adopting new accounting standard \| ASU 2016-01										$ (68)	$ 68
Cumulative effect of adopting new accounting standard \| ASU 2014-09										(117)		$ (117)
Adjusted balance		$ 3						$ 82	$ 213,490	51,230	(405)	264,400
Balance at Dec. 31, 2018	$ 3		$ 82	$ 213,490	$ 51,415	$ (473)	$ 264,517
Balance (in shares) at Dec. 31, 2018	272,636	272,636	8,217,274					8,217,274
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock grants, net of forfeiture (in shares)								106,423
Employee and non-employee stock-based compensation									1,478			1,478
Repurchase of shares for tax withholding for restricted stock vesting									(88)			(88)
Repurchase of shares for tax withholding for restricted stock vesting (in shares)								(2,881)
Net income										14,588		14,588
Other comprehensive income (loss)											952	952
Balance at Jun. 30, 2019		$ 3						$ 82	214,880	65,818	547	281,330
Balance (in shares) at Jun. 30, 2019		272,636						8,320,816
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adopting new accounting standard \| ASU 2016-01											0
Balance at Mar. 31, 2019		$ 3						$ 82	214,088	59,761	(147)	273,787
Balance (in shares) at Mar. 31, 2019		272,636						8,320,816
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee and non-employee stock-based compensation									792			792
Net income										6,057		6,057
Other comprehensive income (loss)											694	694
Balance at Jun. 30, 2019		$ 3						$ 82	214,880	65,818	547	281,330
Balance (in shares) at Jun. 30, 2019		272,636						8,320,816
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adopting new accounting standard \| ASU 2016-01											0
Balance at Dec. 31, 2019		$ 3						$ 82	216,468	81,364	1,207	299,124
Balance (in shares) at Dec. 31, 2019		272,636						8,312,918
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock grants, net of forfeiture (in shares)								(12,244)
Employee and non-employee stock-based compensation									1,754			1,754
Repurchase of shares for tax withholding for restricted stock vesting									(579)			(579)
Repurchase of shares for tax withholding for restricted stock vesting (in shares)								(5,873)
Net income										16,908		16,908
Other comprehensive income (loss)											(38)	(38)
Balance at Jun. 30, 2020		$ 3						$ 82	217,643	98,272	1,169	317,169
Balance (in shares) at Jun. 30, 2020		272,636						8,294,801
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adopting new accounting standard \| ASU 2016-01											0
Balance at Mar. 31, 2020		$ 3						$ 82	216,701	87,461	4,289	308,536
Balance (in shares) at Mar. 31, 2020		272,636						8,294,801
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee and non-employee stock-based compensation									942			942
Net income										10,811		10,811
Other comprehensive income (loss)											(3,120)	(3,120)
Balance at Jun. 30, 2020		$ 3						$ 82	$ 217,643	$ 98,272	$ 1,169	$ 317,169
Balance (in shares) at Jun. 30, 2020		272,636						8,294,801

CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income	$ 16,908	$ 14,588
Adjustments to reconcile net income to net cash:
Net depreciation amortization and accretion	1,969	928
Provision (credit) for loan losses	6,556	(81)
Net change in deferred loan fees	48	1,670
Income tax	(4)
Gain on sale of available-for-sale securities	3,286
Employee and non-employee stock-based expense	1,754	1,478
Gain on sale of loans	(18)
Dividends earned on CRA fund	(23)	(25)
Unrealized gain/loss of equity securities	(55)	(70)
Net change in:
Accrued interest receivable	(2,286)	(2,288)
Accounts payable, accrued expenses and other liabilities	11,224	7,230
Prepaid third-party debit cardholder balances	20,661	8,030
Accrued interest payable	(30)	253
Receivable from prepaid card programs, net	(19,542)	(8,315)
Prepaid expenses and other assets	7,960	82
Net cash provided by operating activities	41,836	23,480
Cash flows from investing activities:
Loan originations, purchases and payments, net of recoveries	(229,646)	(468,173)
Proceeds from loans sold	9,968
Redemptions of other investments	6,800	6,955
Purchases of other investments	(1,094)	(7,640)
Purchase of securities available for sale	(94,180)	(78,196)
Proceeds from calls of securities available for sale	5,000	1,065
Proceeds from sales of securities available for sale	111,422
Proceeds from paydowns and maturities of securities available for sale	27,933	2,607
Proceeds from paydowns and maturities of securities held to maturity	388	395
Purchase of derivative contract	(2,980)
Purchase of premises and equipment, net	(4,353)	(532)
Net cash used in investing activities	(170,742)	(543,519)
Cash flows from financing activities:
Proceeds from FHLB advances		610,000
Repayments of FHLB advances	(40,000)	(605,000)
Redemption of common stock for tax withholdings for restricted stock vesting	(579)	(88)
Payments of secured borrowings	(1,024)
Net increase in deposits	603,965	715,568
Net cash provided by financing activities	562,362	720,480
Increase in cash and cash equivalents	433,456	200,441
Cash and cash equivalents at the beginning of the period	389,220	232,950
Cash and cash equivalents at the end of the period	822,676	433,391
Cash paid for:
Interest	11,189	14,050
Income Taxes	$ 3,500	9,570
Non-cash item:
Pending settlement of purchases of securities available for sale		$ 24,513

ORGANIZATION

6 Months Ended

Jun. 30, 2020

ORGANIZATION

ORGANIZATION

NOTE 1 - ORGANIZATION

Metropolitan Bank Holding Corp., a New York corporation (the “Company”), is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The Bank’s primary market is the New York metropolitan area. The Bank offers a traditional range of services to individuals, businesses and others needing banking services. Its primary lending products are commercial and multifamily real estate loans and commercial and industrial loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from the cash flows from the operations of the business. The Bank’s primary deposit products are checking, savings, and term deposit accounts, and its deposit accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to the maximum amounts allowed by law.

The Company and the Bank are subject to the regulations of certain state and federal agencies and, accordingly, are periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s business is affected by state and federal legislation and regulations.

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2020

BASIS OF PRESENTATION

BASIS OF PRESENTATION

NOTE 2 – BASIS OF PRESENTATION

The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles (“GAAP”) and predominant practices within the U.S. banking industry. All intercompany balances and transactions have been eliminated. The Unaudited Consolidated Financial Statements, which include the accounts of the Company and the Bank, have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Unaudited Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. The accounting and reporting policies of the Company conform with U.S generally accepted accounting principles and predominant practices within the U.S. banking industry.

Certain prior-periods’ amounts have been reclassified to conform to current period’s presentation.

The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or for any other period. Management believes that results of future periods are rendered particularly unpredictable due to the Novel Coronavirus (“COVID-19”).

To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results could differ. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, including COVID-19-related changes, and changes in the financial condition of borrowers.

The Company has evaluated goodwill for impairment resulting from COVID-19 and has concluded that no impairment existed at June 30, 2020. Management will continue to monitor if a triggering event requiring further goodwill impairment testing has occurred.

The Company could experience a material adverse effect on its business as a result of the impact of the COVID-19 pandemic, and the resulting governmental actions to curtail its spread. It is at least reasonably possible that information that was available at the date of the financial statements will change in the near term due to the COVID-19 pandemic and

that the effect of the change would be material to the financial statements. Particularly susceptible to change would be the allowance for loan losses and interest income on loans. The extent to which the COVID-19 pandemic will impact Bank’s estimates and assumptions is highly uncertain at this time.

The unaudited consolidated financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to audited consolidated financial statements included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the year ended December 31, 2019 as filed with the Securities and Exchange Commission (“SEC”).

The following accounting policy represents a material update and addition to the accounting policies previously disclosed in the Company’s Annual Report for the fiscal year ended December 31, 2019 as filed with the SEC.

Derivatives: The Company has entered into an interest rate cap derivative that, based on the Company’s intentions and belief as to the likely effectiveness as a hedge, was designated as a cash flow hedge. A cash flow hedge is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in accumulated other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of the derivative that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. The amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedged transactions at the inception of the hedging relationship. The documentation includes linking the cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions or group of forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, or treatment of the derivative as a hedge is no longer appropriate or intended.

When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were in accumulated other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in accumulated other comprehensive income is reclassified into current earnings.

SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2020

SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS

SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS

NOTE 3 – SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS

Pursuant to the Jumpstart Our Business Startups Act (“JOBS Act”), an Emerging Growth Company (“EGC”) is permitted to elect to adopt new accounting guidance using adoption dates of nonpublic entities. The Company elected delayed effective dates of recently issued accounting standards.

Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2016, the Financial Accounting Standards Board (“FASB”) deferred the effective date of the ASU by one year which resulted in ASU 2014-09 being effective for the Company beginning January 1, 2019. The Company adopted the new revenue guidance as of January 1, 2019, using the five-step model prescribed by the ASU and described above. Management evaluated the Company’s revenue streams and recorded an adjustment to opening retained earnings of $117,000 in accordance with the modified retrospective method allowed by the ASU.

In January 2016, the FASB issued ASU 2016-01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The objectives of the ASU are to: (1) require equity investments to be measured at fair value, with changes in fair value recognized in net income, (2) simplify the impairment assessment of equity investments without readily determinable fair values, (3) eliminate the requirement to disclose methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet, (4) require the use of the exit price notion when measuring the fair value of financial instruments, and (5) clarify the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Liabilities, an amendment to ASU 2016-01. The amendments clarify certain aspects of the guidance issued in ASU 2016-01. The Company adopted these ASUs on January 1, 2019. The Company evaluated the impact of ASU 2016-01 and 2018-03 and recorded $68,000, net of tax, as an adjustment to opening retained earnings and accumulated other comprehensive income in accordance with the modified retrospective method allowed by the ASU.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. In October 2019, the FASB approved a delay for the implementation of the ASU for non-public business entities (“PBE”) and smaller reporting companies (“SRC”). Accordingly, for the Company, which is an EGC and an SRC, the ASU will be effective fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Under ASU 2016-02, the Company will recognize a right-of-use asset and a lease obligation liability on the consolidated balance sheet, which will increase the Company’s assets and liabilities. The Company is evaluating other potential impacts of ASU 2016-02 on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In October 2019, the FASB approved a delay for the implementation of the ASU for non-PBEs and SRCs. Accordingly, as an EGC and an SRC, the Company’s effective date for the implementation of the ASU will be January 1, 2023. Management has established a committee to evaluate the impact of ASU 2016-13 on the Company’s financial statements. The Company expects to recognize a one-time cumulative adjustment to the allowance for loan losses as of the beginning of the reporting period in which the ASU takes effect but cannot yet determine the magnitude of the impact on the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the second step in the goodwill impairment test, which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for the Company beginning January 1, 2021, with early adoption permitted for goodwill impairment tests performed after January 1, 2017. Management expects that ASU 2017-04 will not have a material impact on its consolidated financial statements.

INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2020

INVESTMENT SECURITIES

INVESTMENT SECURITIES

NOTE 4 - INVESTMENT SECURITIES

The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity at June 30, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses (in thousands):


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At June 30, 2020	Cost		Gains		Losses		Fair Value
Debt securities available for sale:
Residential mortgage securities	$	139,488	$	2,695	$	—	$	142,183
Commercial mortgage securities		21,291		885		(2)		22,174
U.S. Government agency securities		25,000		2		—		25,002
Total securities available-for-sale	$	185,779	$	3,582	$	(2)	$	189,359

Held-to-maturity securities:
Residential mortgage securities	$	3,319	$	87	$	—	$	3,406
Total securities held-to-maturity	$	3,319	$	87	$	—	$	3,406

Equity investments:
CRA Mutual Fund	$	2,282	$	19	$	—	$	2,301
Total non-trading equity investment securities	$	2,282	$	19	$	—	$	2,301


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At December 31, 2019	Cost		Gains		Losses		Fair Value
Debt securities available for sale:
Residential mortgage securities	$	175,902	$	1,478	$	(117)	$	177,263
Commercial mortgage securities		32,284		206		(18)		32,472
U.S. Government agency securities		25,000		207		—		25,207
Total securities available for sale	$	233,186	$	1,891	$	(135)	$	234,942

Held-to-maturity securities:
Residential mortgage securities		3,722		9		(19)		3,712
Total securities held to maturity	$	3,722	$	9	$	(19)	$	3,712

Equity investments:
CRA Mutual Fund		2,258		—		(34)		2,224
Total non-trading equity investment securities	$	2,258	$	—	$	(34)	$	2,224

For the three months ended June 30, 2020, there were sales of $88.1 million, at amortized cost, of available-for-sale securities. There were sales and calls of $108.1 million and $5.0 million, at amortized cost, respectively, for the six months ended June 30, 2020 and calls of $1.1 million for the three and six months ended June 30, 2019. The proceeds from sales and calls of securities and associated gains for the three and six months ended June 30, 2020 and 2019 (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Proceeds	$	90,447	$	1,065	$	116,422	$	1,065
Gross gains	$	2,312	$	—	$	3,286	$	—
Tax impact	$	(729)	$	—	$	(1,036)	$	—

Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. The following tables summarize, by contractual maturity, the amortized cost and fair value of debt securities at June 30, 2020 and December 31, 2019 (in thousands):


	Held-to-Maturity				Available-for-Sale
At June 30, 2020	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	—	$	—	$	—	$	—
One to five years		—		—		—		—
Five to ten years		—		—		25,000		25,002
After ten years		—		—		—		—
Total	$	—	$	—	$	25,000	$	25,002

Residential mortgage securities	$	3,319	$	3,406		139,488		142,183
Commercial mortgage securities		—		—		21,291		22,174
Total Securities	$	3,319	$	3,406	$	185,779	$	189,359


	Held-to-Maturity				Available-for-Sale
At December 31, 2019	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	—	$	—	$	—	$	—
One to five years		—		—		—		—
Five to ten years		—		—		25,000		25,207
Due after ten years		—		—		—		—
Total	$	—	$	—	$	25,000	$	25,207

Residential mortgage securities	$	3,722	$	3,712	$	175,902	$	177,263
Commercial mortgage securities		—		—		32,284		32,472
Total Securities	$	3,722	$	3,712	$	233,186	$	234,942

There were no securities pledged as collateral at June 30, 2020. At December 31, 2019, there were $126.2 million of securities available for sale pledged as collateral for certain deposits.

At June 30, 2020 and December 31, 2019, all of the residential mortgage securities and commercial mortgage securities held by the Bank were issued by U.S. Government-sponsored entities and agencies.

Securities with unrealized/unrecognized losses at June 30, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized/unrecognized loss position, are as follows (in thousands):


	Less than 12 Months				12 months or more				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At June 30, 2020	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Debt securities available for sale:
Residential mortgage securities	$	—	$	—	$	—	$	—	$	—	$	—
Commercial mortgage securities		—		—		389		(2)		389		(2)
Total securities available for sale	$	—	$	—	$	389	$	(2)	$	389	$	(2)

Held-to-Maturity Securities:
Residential mortgage securities	$	—	$	—	$	—	$	—	$	—	$	—
Total securities held to maturity	$	—	$	—	$	—	$	—	$	—	$	—

Equity investments:
CRA Mutual Fund	$	—	$	—	$	—	$	—	$	—	$	—
Total equity investment securities	$	—	$	—	$	—	$	—	$	—	$	—


	Less than 12 Months				12 months or more				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At December 31, 2019	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Debt securities available for sale:
Residential mortgage securities	$	22,850	$	(52)	$	6,728	$	(65)	$	29,578	$	(117)
Commercial mortgage securities		9,911		(18)		—		—		9,911		(18)
Total securities available-for-sale	$	32,761	$	(70)	$	6,728	$	(65)	$	39,489	$	(135)

Held-to-Maturity Securities:
Residential mortgage securities	$	—	$	—	$	1,470	$	(19)	$	1,470	$	(19)
Total securities held to maturity	$	—	$	—	$	1,470	$	(19)	$	1,470	$	(19)

Equity investments:
CRA Mutual Fund	$	—	$	—	$	2,224	$	(34)	$	2,224	$	(34)
Total equity investment securities	$	—	$	—	$	2,224	$	(34)	$	2,224	$	(34)

The unrealized losses on securities are primarily due to the changes in market interest rates subsequent to purchase. The Bank did not consider these securities to be other-than-temporarily impaired at June 30, 2020 and December 31, 2019 since the decline in market value was attributable to changes in interest rates and not credit quality. In addition, the Bank does not intend to sell and does not believe that it is more likely than not that it will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. As a result, no impairment loss was recognized during the six months ended June 30, 2020 or for the year ended December 31, 2019.

At June 30, 2020 and December 31, 2019, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

LOANS AND ALLOWANCE FOR LOAN LOSSES

6 Months Ended

Jun. 30, 2020

LOANS AND ALLOWANCE FOR LOAN LOSSES

LOANS AND ALLOWANCE FOR LOAN LOSSES

NOTE 5 – LOANS AND ALLOWANCE FOR LOAN LOSSES

Loans, net of deferred costs and fees, consist of the following as of June 30, 2020 and December 31, 2019 (in thousands):


	June 30, 2020		December 31, 2019
Real estate
Commercial	$	1,875,764	$	1,668,236
Construction		59,378		30,827
Multifamily		393,342		375,611
One-to-four family		68,326		82,670
Total real estate loans		2,396,810		2,157,344

Commercial and industrial		444,265		448,619
Consumer		56,217		71,956
Total loans		2,897,292		2,677,919
Deferred fees		(5,018)		(4,970)
Loans, net of deferred fees and unamortized costs		2,892,274		2,672,949
Allowance for loan losses		(32,505)		(26,272)
Balance at the end of the period	$	2,859,769	$	2,646,677

The Bank has taken several steps to assess the financial impact of COVID-19 on its business, including contacting customers to determine how their business was being affected and analyzing the impact of the virus on the different industries that the Bank serves. As of June 30, 2020, total loans consisted primarily of commercial real estate loans (“CRE”), commercial and industrial loans (“C&I”) and multi-family mortgage loans. At June 30, 2020, the Bank’s loan portfolio includes loans to the following industries (dollars in thousands):


	June 30, 2020
		Balance	% of Total Loans

CRE ⁽¹⁾
Skilled Nursing Facilities	$	538,705	18.6%
Multi-family		393,342	13.6%
Retail		218,133	7.5%
Mixed use		209,362	7.2%
Office		162,528	5.6%
Hospitality		158,379	5.5%
Construction		59,378	2.1%
Other		546,709	18.9%
Total CRE	$	2,286,535	79.1%

C&I ⁽²⁾
Healthcare	$	107,486	3.7%
Skilled Nursing Facilities		110,906	3.8%
Finance & Insurance		100,538	3.5%
Wholesale		24,578	0.8%
Manufacturing		17,384	0.6%
Transportation		13,661	0.5%
Retail		4,200	0.1%
Recreation & Restaurants		1,843	0.1%
Other		42,309	1.5%
Total C&I	$	422,905	14.6%

(1)	Commercial real estate, not including one-to-four family loans

(2)	Net of participations, premiums and overdraft adjustments

The largest concentration in the loan portfolio is to the healthcare industry amounting to $757.1 million or 26.1% of total loans and including $649.6 million in loans to skilled nursing facilities (“SNF”). As of the date of this Quarterly Report on Form 10-Q, the Bank has not noted any significant impact on SNF loans as a result of COVID-19 as the demand for nursing home beds remains strong and cash flows have not been significantly affected.

The portfolio segments in the tables below represent the categories that the Bank uses to determine its Allowance for Loan Losses (“ALLL”). As part of the determination of the ALLL, the Bank considered the effects of COVID-19 on macro-economic conditions such as sharply increasing unemployment rates and the shut-down of all non-essential businesses. The Bank also analyzed the impact of COVID-19 on its primary market, which is the New York metropolitan area, as well as the impact on the Bank’s market sectors and its specific clients.

In the first quarter of 2020, as part of its estimation of an adjustment to the ALLL due to COVID-19, the Bank identified those market sectors or industries that were more likely to be affected, such as hospitality, transportation and outpatient care centers. To determine the potential impact on the Bank’s customers, particularly in these industries, management primarily relied on the results of the Bank’s semi-annual stress tests. The scenarios used in these stress tests include significant revenue declines in a borrower’s business as well as reductions in its operating cash flows and the impact on its ability to repay its loans. Using the stress test results, management estimated the probability of default and loss-given-default for the various loan categories at March 31, 2020 and assigned a weighting to each scenario. Based on this analysis, management estimated the potential impact of a stressed environment, such as the one resulting from COVID-19, and the adjustment to the ALLL as of March 31, 2020. In addition to the stress tests, the Bank also established an additional qualitative loss factor solely related to the impact of COVID-19 and included that analysis in its ALLL calculations. As a result of management’s assessment, the Bank recorded an additional unallocated loan loss provision of $3.1 million in the first quarter of 2020.

In the second quarter of 2020, the Bank engaged a third-party vendor to develop a COVID-19-specific ALLL qualitative adjustment framework, which addresses those credit risk factors presented by the pandemic that are not covered by the traditional allowance process. The qualitative adjustment framework was designed to be used as a supplement to the Bank’s existing ALLL process. The framework examines three factors: the relationship between historical net charge-offs and macroeconomic variables, the institution-level efficacy of stimulus relief funding and the Bank’s geographical exposure and the regional sensitivity to the economic shock based on criteria such as exposure to virus, demographics and trade disruption in the region. Using these three factors, the framework built a correlation between the COVID-19-specific ALLL loss rate for the Bank’s loan portfolio and the rate of unemployment, the geographical exposure of the Bank’s loans and the impact of stimulus relief. Based on management’s assessment, the Bank did not record an additional loan provision related to the impact of COVID-19.

Based on current economic conditions, particularly the unemployment rate, and the Bank’s ALLL methodology, the total provision for loan losses for the six months ended June 30, 2020 was $6.6 million, of which $3.1 million relates to the economic impact of COVID-19 and is allocated to the portfolio segments in the tables below. Included in the $3.1 million provision for loan losses was $544,000 related to one C&I loan, included in the Bank’s transportation segment, with a principal balance of $5.4 million. This loan became impaired due to COVID-19.

The largest concentration in the loan portfolio is to the healthcare industry amounting to $757.1 million or 26.1% of total loans and including $649.6 million in loans to skilled nursing facilities (“SNF”). As of the date of this Quarterly Report on Form 10-Q, the Bank has not noted any significant impact on SNF loans as a result of COVID-19 as the demand for nursing home beds remains strong and cash flows have not been significantly affected.

However, this is a period of great uncertainty and the impact of COVID-19 is likely to be felt over the next several quarters, particularly as the term of loan modifications expire and borrowers return to a normal debt service schedule as well as the commencement of a repayment schedule for payments that were deferred. As such, significant adjustments to the ALLL may be required as the full impact of COVID-19 on the Bank’s borrowers becomes known.

The following tables present the activity in the ALLL by segment for the three and six months ended June 30, 2020 and 2019 (in thousands):


	Commercial		Commercial				Multi		One-to-four
Three months ended June 30, 2020	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	15,891	$	8,213	$	549	$	2,518	$	191	$	506	$	27,868
COVID-19 allowance allocation		1,478		1,280		71		190		12		25		3,056
Adjusted beginning balance		17,369		9,493		620		2,708		203		531		30,924
Provision/(credit) for loan losses		1,321		(204)		121		31		39		458		1,766
Loans charged-off		—		(159)		—		—		—		(33)		(192)
Recoveries		—		2		—		—		—		5		7
Total ending allowance balance	$	18,690	$	9,132	$	741	$	2,739	$	242	$	961	$	32,505


	Commercial		Commercial				Multi		One-to-four
Three months ended June 30, 2019	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	10,885	$	6,177	$	647	$	2,111	$	308	$	706	$	20,834
Provision/(credit) for loan losses		2,121		(23)		(146)		138		(55)		(85)		1,950
Loans charged-off		—		(12)		—		—		—		(57)		(69)
Recoveries		—		—		—		—		—		—		—
Total ending allowance balance	$	13,006	$	6,142	$	501	$	2,249	$	253	$	564	$	22,715


	Commercial		Commercial				Multi		One-to-four
Six months ended June 30, 2020	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	15,317	$	7,070	$	411	$	2,453	$	267	$	754	$	26,272
Provision/(credit) for loan losses ⁽¹⁾		3,373		2,174		330		286		(25)		418		6,556
Loans charged-off		—		(172)		—		—		—		(221)		(393)
Recoveries		—		60		—		—		—		10		70
Total ending allowance balance	$	18,690	$	9,132	$	741	$	2,739	$	242	$	961	$	32,505


	Commercial		Commercial				Multi		One-to-four
Six months ended June 30, 2019	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	9,037	$	6,257	$	625	$	2,047	$	228	$	748	$	18,942
Provision/(credit) for loan losses		3,969		(4,099)		(124)		202		25		(54)		(81)
Loans charged-off		—		(286)		—		—		—		(130)		(416)
Recoveries		—		4,270		—		—		—		—		4,270
Total ending allowance balance	$	13,006	$	6,142	$	501	$	2,249	$	253	$	564	$	22,715

(1)	Includes the provision for loan losses related to the impact of COVID-19

Net charge-offs were $185,000 and $69,000 for the three months ended June 30, 2020 and 2019, respectively. Net charge-offs were $323,000 for the six months ended June 30, 2020, as compared to net recoveries of $3.9 million for the six months ended June 30, 2019. Included in the net recoveries during the six months ended June 30, 2019 were $4.2 million in recoveries related to taxi medallion loans charged-off in 2016 and 2017.

The following tables present the balance in the ALLL and the recorded investment in loans by portfolio segment, including the impact of COVID-19, based on impairment method as of June 30, 2020 and December 31, 2019 (in thousands):


	Commercial		Commercial				Multi		One-to-four
At June 30, 2020	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	1,408	$	—	$	—	$	58	$	527	$	1,993
Collectively evaluated for impairment		18,690		7,724		741		2,739		184		434		30,512
Total ending allowance balance	$	18,690	$	9,132	$	741	$	2,739	$	242	$	961	$	32,505
Loans:
Individually evaluated for impairment	$	363	$	6,482	$	—	$	—	$	1,016	$	1,926	$	9,787
Collectively evaluated for impairment		1,875,401		437,783		59,378		393,342		67,310		54,291		2,887,505
Total ending loan balance	$	1,875,764	$	444,265	$	59,378	$	393,342	$	68,326	$	56,217	$	2,897,292


	Commercial		Commercial				Multi		One-to-four
At December 31, 2019	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	805	$	—	$	—	$	64	$	311	$	1,180
Collectively evaluated for impairment		15,317		6,265		411		2,453		203		443		25,092
Total ending allowance balance	$	15,317	$	7,070	$	411	$	2,453	$	267	$	754	$	26,272
Loans:
Individually evaluated for impairment	$	367	$	1,047	$	—	$	—	$	3,384	$	728	$	5,526
Collectively evaluated for impairment		1,667,869		447,572		30,827		375,611		79,286		71,228		2,672,393
Total ending loan balance	$	1,668,236	$	448,619	$	30,827	$	375,611	$	82,670	$	71,956	$	2,677,919

The following tables present loans individually evaluated for impairment recognized as of June 30, 2020 and December 31, 2019 (in thousands):


	Unpaid Principal				Allowance for Loan
At June 30, 2020	Balance		Recorded Investment		Losses Allocated
With an allowance recorded:
One-to-four family	$	621	$	492	$	58
Consumer		1,926		1,926		527
Commercial & industrial		6,482		6,482		1,408
Total	$	9,029	$	8,900	$	1,993

Without an allowance recorded:
One-to-four family	$	672	$	524	$	—
Commercial real estate		363		363		—
Commercial & industrial		—		—		—
Total	$	1,035	$	887	$	—


	Unpaid Principal				Allowance for Loan
At December 31, 2019	Balance		Recorded Investment		Losses Allocated
With an allowance recorded:
One-to-four family	$	633	$	503	$	64
Consumer		731		728		311
Commercial & industrial		1,047		1,047		805
Total	$	2,411	$	2,278	$	1,180

Without an allowance recorded:
One-to-four family		3,028	$	2,881	$	—
Commercial real estate		367		367		—
Total	$	3,395	$	3,248	$	—

The recorded investment in loans excludes accrued interest receivable and loan origination fees.

The following tables present the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three and six months ended June 30, 2020 and 2019 (in thousands):


	Average Recorded		Interest Income
Three months ended June 30, 2020	Investment		Recognized
With an allowance recorded:
One-to-four family	$	494	$	3
Consumer		1,147		27
Commercial & industrial		3,765		—
Total	$	5,406	$	30

Without an allowance recorded:
One-to-four family	$	528	$	—
Commercial real estate		363		—
Commercial & industrial		2,377		—
Total	$	3,268	$	—


	Average Recorded		Interest Income
Three months ended June 30, 2019	Investment		Recognized
With an allowance recorded:
One-to-four family	$	521	$	7
Consumer		91		2
Total	$	612	$	9

Without an allowance recorded:
One-to-four family	$	1,732	$	79
Commercial real estate		377		4
Total	$	2,109	$	83


	Average Recorded		Interest Income
Six months ended June 30, 2020	Investment		Recognized
With an allowance recorded:
One-to-four family	$	497	$	8
Consumer		1,008		31
Commercial & industrial		2,859		—
Total	$	4,364	$	39

Without an allowance recorded:
One-to-four family	$	1,312	$	10
Commercial real estate		364		4
Total	$	1,676	$	14


	Average Recorded		Interest Income
Six months ended June 30, 2019	Investment		Recognized
With an allowance recorded:
One-to-four family	$	347	$	10
Consumer		90		4
Total	$	437	$	14

Without an allowance recorded:
One-to-four family	$	3,891	$	90
Commercial real estate		379		8
Total	$	4,270	$	98

For a loan to be considered impaired, management determines after review whether it is probable that the Bank will not be able to collect all amounts due according to the contractual terms of the loan agreement. Management applies its normal loan review procedures in making these judgments. Impaired loans include individually classified non-accrual loans and troubled debt restructurings (“TDRs”). Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows is compared to the carrying value to determine if any write-down or specific loan loss allowance allocation is required.

For discussion on modification of loans to borrowers impacted by COVID-19, refer to the “Troubled Debt Restructuring” section herein.

The following tables present the recorded investment in non-accrual loans and loans past due over 90 days and still accruing, by class of loans, as of June 30, 2020 and December 31, 2019 (in thousands):


At June 30, 2020	Non-accrual		Loans Past Due Over 90 Days Still Accruing
Commercial & industrial	$	6,482	$	54
Consumer		601		1,311
Total	$	7,083	$	1,365


At December 31, 2019	Non-accrual			Loans Past Due Over 90 Days Still Accruing
Commercial & industrial	$	1,047	$	408
One-to-four family		2,345		—
Consumer		693		—
Total	$	4,085	$	408

Interest income that would have been recorded for the three and six months ended June 30, 2020 and 2019 had non-accrual loans been current according to their original terms, was immaterial.

The following tables present the aging of the recorded investment in past due loans by class of loans as of June 30, 2020 and December 31, 2019 (in thousands):


					Greater
	30-59		60-89		than 90		Total past		Current
At June 30, 2020	Days		Days		days		due		loans		Total
Commercial real estate	$	6,400	$	—	$	—	$	6,400	$	1,869,364	$	1,875,764
Commercial & industrial		18		2		6,536		6,556		437,709		444,265
Construction		—		—		—		—		59,378		59,378
Multifamily		—		—		—		—		393,342		393,342
One-to-four family		—		—		—		—		68,326		68,326
Consumer		68		25		1,912		2,005		54,212		56,217
Total	$	6,486	$	27	$	8,448	$	14,961	$	2,882,331	$	2,897,292


					Greater
	30-59		60-89		than 90		Total past		Current
At December 31, 2019	Days		Days		days		due		loans		Total
Commercial real estate	$	—	$	—	$	—	$	—	$	1,668,236	$	1,668,236
Commercial & industrial		346		—		1,455		1,801		446,818		448,619
Construction		—		—		—		—		30,827		30,827
Multifamily		—		—		—		—		375,611		375,611
One-to-four family		—		—		—		—		82,670		82,670
Consumer		636		14		693		1,343		70,613		71,956
Total	$	982	$	14	$	2,148	$	3,144	$	2,674,775	$	2,677,919

Troubled Debt Restructurings:

Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and classified as impaired. On March 22, 2020, the banking regulators and the FASB issued guidance to financial institutions who are working with borrowers affected by COVID-19 (“COVID-19 Guidance”). The COVID-19 Guidance indicated that regulatory agencies will not criticize institutions for working with borrowers and will not direct banks to automatically categorize all COVID-19 related loan modifications as TDRs. In addition, the COVID-19 Guidance noted that modification or deferral programs mandated by the federal or a state

government related to COVID-19 would not be in the scope of Accounting Standards Codification Subtopic 310-40 – Receivables – Troubled Debt Restructurings by Creditors (“ASC 310-40”), such as a state program that requires all institutions within that state to suspend mortgage payments for a specified period.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings,” allows banks to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. A bank may elect to account for modifications on certain loans under Section 4013 of the CARES Act or, if a loan modification is not eligible under Section 4013, a bank may use the criteria in the COVID-19 Guidance to determine when a loan modification is not a TDR in accordance with ASC 310-40.

All loans classified as TDRs as of June 30, 2020 were restructured prior to the introduction of the COVID-19 Guidance. As of June 30, 2020, 300 loans amounting to $527.6 million were modified in accordance with the COVID-19 Guidance and the CARES Act. As of July 31, 2020, 116 loans totaling $91.0 million that were included in modified loans have returned to repayment status.

Included in impaired loans at June 30, 2020 and December 31, 2019 were $1.4 million of loans modified as TDRs. The Bank allocated specific reserves amounting to $65,000 and $81,000 for TDRs as of June 30, 2020 and December 31, 2019, respectively. There were no loans modified as a TDR during the three and six months ended June 30, 2020 or the year ended December 31, 2019. The Bank has not committed to lend additional amounts as of June 30, 2020 to customers with outstanding loans that are classified as TDRs. During the six months ended June 30, 2020 and June 30, 2019 there were no payment defaults on any loans previously identified as TDRs. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Bank’s internal underwriting policy.

The following tables present the recorded investment in TDRs by class of loans as of June 30, 2020 and December 31, 2019 (in thousands):


	June 30, 2020		December 31, 2019
Troubled debt restructurings:
Real Estate:
Commercial real estate	$	363	$	367
One-to-four family		1,016		1,039
Consumer		14		35
Total troubled debt restructurings	$	1,393	$	1,441

All TDRs at June 30, 2020 and December 31, 2019 were performing in accordance with their restructured terms.

Credit Quality Indicators:

The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank generally analyzes all loans over $500,000, other than one-to-four family and consumer loans, individually by classifying the loans as to credit risk at least annually. For one-to-four family loans and consumer loans, the Bank evaluates credit quality based on the aging status of the loan and by performance status. An analysis is performed on a quarterly basis for loans classified as special mention, substandard, or doubtful. The Bank uses the following definitions for risk ratings:

Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):


			Special
At June 30, 2020	Pass		Mention		Substandard		Doubtful			Total
Commercial real estate	$	1,875,401	$	363	$	—	$	—	$	1,875,764
Commercial & industrial		437,729		—		5,489		1,047		444,265
Construction		59,378		—		—		—		59,378
Multifamily		393,342		—		—		—		393,342
Total	$	2,765,850	$	363	$	5,489	$	1,047	$	2,772,749


			Special
At December 31, 2019	Pass		Mention		Substandard		Doubtful			Total
Commercial real estate	$	1,667,869	$	367	$	—	$	—	$	1,668,236
Commercial & industrial		446,612		—		960		1,047		448,619
Construction		30,827		—		—		—		30,827
Multi-family		375,611		—		—		—		375,611
Total	$	2,520,919	$	367	$	960	$	1,047	$	2,523,293

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2020

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 6 – EARNINGS PER SHARE

The computation of basic and diluted earnings per share is shown below (dollars in thousands, except share data):


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Basic
Net income per consolidated statements of income	$	10,811	$	6,057	$	16,908	$	14,588
Less: Earnings allocated to participating securities		(95)		(107)		(164)		(243)
Net income available to common stockholders	$	10,716	$	5,950	$	16,744	$	14,345

Weighted average common shares outstanding including participating securities		8,294,801		8,320,036		8,299,503		8,310,071
Less: Weighted average participating securities		(73,053)		(146,549)		(80,650)		(138,711)
Weighted average common shares outstanding		8,221,748		8,173,487		8,218,853		8,171,360

Basic earnings per common share	$	1.30	$	0.73	$	2.04	$	1.76

Diluted
Net income allocated to common stockholders	$	10,716	$	5,950	$	16,744	$	14,345

Weighted average common shares outstanding for basic earnings per common share		8,221,748		8,173,487		8,218,853		8,171,360
Add: Dilutive effects of assumed exercise of stock options		74,597		126,491		108,905		121,022
Add: Dilutive effects of assumed vesting of performance based restricted stock units		63,105		36,086		63,756		28,484
Average shares and dilutive potential common shares		8,359,450		8,336,064		8,391,514		8,320,866

Dilutive earnings per common share	$	1.28	$	0.71	$	2.00	$	1.72

All stock options were considered in computing diluted earnings per common share for the three and six months ended June 30, 2020 and 2019. 52,197 restricted stock units were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive for the three and six months ended June 30, 2020.

STOCK COMPENSATION PLAN

6 Months Ended

Jun. 30, 2020

STOCK COMPENSATION PLAN

STOCK COMPENSATION PLAN

NOTE 7 - STOCK COMPENSATION PLAN

Equity Incentive Plan

On May 28, 2019, the Company's 2019 Equity Incentive Plan (the “2019 EIP”) was approved by stockholders of the Company. Under the 2019 EIP, the maximum number of shares of stock that may be delivered to participants in the form of restricted stock, restricted stock units and stock options, including incentive stock options (“ISO”) and non-qualified stock options, is 340,000, plus any awards that are forfeited under the 2009 Equity Incentive Plan (the “2009 Plan”) after the effective date of the 2019 EIP, which was May 28, 2019. Under the 2009 Plan, there are 468,382 shares that are subject to outstanding and/or unexercised awards that have been granted and, if forfeited after May 28, 2019, such shares will be available to be granted under the 2019 EIP. The 2009 Plan expired on May 18, 2019 and, accordingly, the 628,719 shares that were unauthorized and unissued under the 2009 Plan have expired and may not be granted (and such shares of stock did not roll over to the 2019 EIP).

Under the terms of the 2019 EIP, a stock option cannot have an exercise price that is less than 100% of the fair market value of the shares covered by the stock option on the date of grant. In the case of an ISO granted to a 10% stockholder, the exercise price shall not be less than 110% of the fair market value of the shares covered by the stock option on the date

of grant. In no event shall the exercise period exceed ten years from the date of grant of the option, except, in the case of an ISO granted to a 10% stockholder, the exercise period shall not exceed five years from the date of grant. The 2019 EIP contains a double trigger change in control feature, providing for an acceleration of vesting upon an involuntary termination of employment simultaneous with or following a change in control.

The fair value of each stock option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities based on historical volatilities of the Company’s common stock are not significant. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

A summary of the status of the Company’s stock options and the changes during the six months ended June 30, 2020 is presented below:


	Six Months Ended June 30, 2020
	Number of	Weighted Average
	Options	Exercise Price

Outstanding, beginning of period	231,000	$	18.00
Granted	—		—
Exercised	—		—
Cancelled/forfeited	—		—
Outstanding, end of period	231,000	$	18.00
Options vested and exercisable at end of period	231,000	$	18.00

Weighted average remaining contractual life (years)			3.88

There was no unrecognized compensation cost related to stock options for the six months ended June 30, 2020 or the year ended December 31, 2019.

There was no compensation cost related to stock options for the six months ended June 30, 2020 and 2019.

The following table summarizes information about stock options outstanding at June 30, 2020:


	At June 30, 2020
Range of Average		Weighted Average	Weighted Average		Weighted Average
Exercise Prices	Number Outstanding at	Remaining Contractual Life	Exercise Price		Intrinsic Price per Share
$10 – 20	231,000	3.88	$	18.00	$	14.08
$21 – 30	—	—	$	—	$	—
$10 – 30	231,000	3.88	$	18.00	$	14.08

There were no stock options exercised during the six months ended June 30, 2020.

Restricted Stock Awards and Restricted Stock Units

The Company issued restricted stock awards under the 2009 Plan and restricted stock units under the 2019 Plan (collectively, “restricted stock grants”) to certain key personnel. Each restricted stock grant vests based on the vesting schedule outlined in the restricted stock grant agreement. Restricted stock grants are subject to forfeiture if the holder is not employed by the Company on the vesting date.

In the first quarter of 2020, 60,307 restricted stock units were issued to certain key personnel. These shares vest one-third each year for three years beginning December 15, 2020. No restricted stock units were granted in the second quarter of 2020.

Total compensation cost that has been charged against income for restricted stock grants was $484,000 and $334,000 for three months ended June 30, 2020 and 2019, respectively. For the six months ended June 30, 2020 and 2019 compensation cost that has been charged against income for restricted stock grants was $839,000 and $564,000, respectively. As of June 30, 2020, there was $3.1 million of total unrecognized compensation expense related to the restricted stock awards. The cost is expected to be recognized over a weighted-average period of 2.17 years.

Additionally, on January 1, 2019, 38,900 restricted shares were granted to members of the Board of Directors in lieu of retainer fees for three years of service. These shares vest one-third each year for three years beginning on December 31, 2019. Total expense for these awards was $100,000 for the three months ended June 30, 2020 and 2019 and $200,000 for six months ended June 30, 2020 and 2019. As of June 30, 2020, there was $600,000 of unrecognized expense related to these grants. The cost is expected to be recognized over a weighted-average period of 1.50 years.

The following table summarizes the changes in the Company’s restricted stock grants for the six months ended June 30, 2020:


	Six Months Ended June 30, 2020
		Weighted Average
	Number of Shares	Grant Date Fair Value

Outstanding, beginning of period	104,838	$	29.86
Granted	60,307		45.29
Forfeited	(20,354)		35.87
Vested	(19,541)		19.39
Outstanding at end of period	125,250	$	37.95

The total fair value of shares vested was $744,000 during the six months ended June 30, 2020.

Performance Based Stock Awards

During the first quarter of 2018, the Company established a long-term incentive award program under the 2009 Plan. For each award, Performance Restricted Share Units (“PRSUs”) are eligible to be earned over a three-year performance period based on personal performance and the Company’s relative performance, in each case as compared to certain measurement goals that were established at the onset of the performance period. These awards were accounted for in accordance with guidance prescribed in ASC Topic 718, Compensation – Stock Compensation. 90,000 PRSUs were awarded under the program. The earned units will be granted at the end of the three-year performance period.

The following table summarizes the changes in the Company’s non-vested PRSU awards for the six months ended June 30, 2020:



	June 30, 2020

Weighted average service inception date fair value of award shares	$	4,064,295
Minimum aggregate share payout		12,000
Maximum aggregate share payout		90,000
Likely aggregate share payout		90,000

Total compensation cost that has been charged against income for this plan was $358,000 for the three months ended June 30, 2020 and 2019 and $715,000 for six months ended June 30, 2020 and 2019.

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2020

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The Company did not have any liabilities that were measured at fair value at June 30, 2020 and December 31,

2019. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as certain impaired loans and goodwill. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses.

Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Assets and Liabilities Measured on a Recurring Basis

Assets measured on a recurring basis are limited to the Bank’s available-for-sale securities (“AFS”) portfolio, equity investments and an interest rate cap derivative contract. The AFS portfolio is carried at estimated fair value with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss in shareholders’ equity. Equity investments are carried at estimated fair value with changes in fair value reported as unrealized gain/(loss) on the statement of operations. The interest rate cap derivative contract is carried at estimated fair value with changes in fair value reported as accumulated other comprehensive income or loss in shareholders’ equity. The fair values for substantially all of these assets are obtained monthly from an independent nationally recognized pricing service. On a quarterly basis, the Bank assesses the reasonableness of the fair values obtained for the AFS portfolio by reference to a second independent nationally recognized pricing service. Based on the nature of these securities, the Bank’s independent pricing service provides prices which are categorized as Level 2 since quoted prices in active markets for identical assets are generally not available for the majority of securities in the Bank’s portfolio. Various modeling techniques are used to determine pricing for the Bank’s mortgage-backed securities, including option pricing and discounted cash flow models. The inputs to these models include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. On an annual basis, the Bank obtains the models, inputs and assumptions utilized by its pricing service and reviews them for reasonableness.

Assets measured at fair value on a recurring basis are summarized below (in thousands):


	Fair Value Measurement using:
			Quoted Prices
			in Active		Significant
			Markets		Other		Significant
	Carrying		For Identical		Observable		Unobservable
	Amount		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
At June 30, 2020
Residential mortgage securities	$	142,183	$	—	$	142,183	$	—
Commercial mortgage securities		22,174		—		22,174		—
U.S. Government agency securities		25,002				25,002
CRA Mutual Fund		2,301		2,301		—		—
Interest rate cap derivative		989		—		989		—


	Fair Value Measurement using:
			Quoted Prices
			in Active		Significant
			Markets		Other		Significant
	Carrying		For Identical		Observable		Unobservable
	Amount		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)

At December 31, 2019
Residential mortgage securities	$	177,263	$	—	$	177,263	$	—
Commercial mortgage securities		32,472		—		32,472		—
U.S. Government agency securities		25,207		—		25,207		—
CRA Mutual Fund		2,224		2,224		—		—

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2020 and 2019.

There were no material assets measured at fair value on a non-recurring basis at June 30, 2020 and December 31, 2019.

The Bank has engaged an independent pricing service provider to provide the fair values of its financial assets and liabilities measured at amortized cost. This provider follows FASB’s exit pricing guidelines, as required by

ASU 2016-01, when calculating the fair market value.

Carrying amount and estimated fair values of financial instruments at June 30, 2020 and December 31, 2019 were as follows (in thousands):


			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets		Other		Significant
	Carrying		For Identical		Observable		Unobservable		Total Fair
At June 30, 2020	Amount		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Value
Financial Assets:
Cash and due from banks	$	9,529	$	9,529	$	—	$	—	$	9,529
Overnight deposits		813,147		813,147		—		—		813,147
Securities available for sale		189,359		—		189,359		—		189,359
Securities held to maturity		3,319		—		3,406		—		3,406
Equity investments		2,301		2,301		—		—		2,301
Loans, net		2,859,769		—		—		2,858,854		2,858,854
Other investments
FRB Stock		7,335		N/A		N/A		N/A		N/A
FHLB Stock		7,398		N/A		N/A		N/A		N/A
Disability Fund		500		—		500		—		500
Time deposits at banks		498		498		—		—		498
Interest rate cap derivative		989		—		989		—		989
Accrued interest receivable		11,148		—		375		10,773		11,148

Financial liabilities:
Non-interest-bearing demand deposits	$	1,526,439	$	1,526,439	$	—	$	—	$	1,526,439
Money market and savings deposits		1,769,419		1,769,419		—		—		1,769,419
Time deposits		98,881		—		100,209		—		100,209
Federal Home Loan Bank of New York advances		104,000		—		104,384		—		104,384
Trust preferred securities payable		20,620		—		—		20,082		20,082
Subordinated debt, net of issuance cost		24,629		—		25,000		—		25,000
Accrued interest payable		1,199		6		1,029		164		1,199


			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets		Other		Significant
	Carrying		For Identical		Observable		Unobservable		Total Fair
At December 31, 2019	Amount		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Value
Financial Assets:
Cash and due from banks	$	8,116	$	8,116	$	—	$	—	$	8,116
Overnight deposits		381,104		381,104		—		—		381,104
Securities available for sale		234,942		—		234,942		—		234,942
Securities held to maturity		3,722		—		3,712		—		3,712
Equity investments		2,224		2,224		—		—		2,224
Loans, net		2,646,677		—		—		2,609,233		2,609,233
Other investments
FRB Stock		7,317		N/A		N/A		N/A		N/A
FHLB Stock		8,122		N/A		N/A		N/A		N/A
SBA Loan Fund		5,000		N/A		N/A		N/A		N/A
Disability Fund		500		—		500		—		500
Time deposits at banks		498		498		—		—		498
Accrued interest receivable		8,862		—		544		8,318		8,862

Financial liabilities:
Non-interest-bearing demand deposits	$	1,090,479	$	1,090,479	$	—	$	—	$	1,090,479
Money market and savings deposits		1,589,920		1,589,920		—		—		1,589,920
Time deposits		110,375		—		110,800		—		110,800
Federal Home Loan Bank of New York advances		144,000		—		144,229		—		144,229
Trust preferred securities payable		20,620		—		—		20,011		20,011
Subordinated debt, net of issuance cost		24,601		—		25,375		—		25,375
Accrued interest payable		1,229		14		1,009		206		1,229

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

ACCUMULATED OTHER COMPREHENSIVE LOSS

6 Months Ended

Jun. 30, 2020

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

NOTE 9 - ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table presents changes in Accumulated Other Comprehensive Income, net of tax, for the three and six months ended June 30, 2020 and 2019 (in thousands):


	Three months ended				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019
Beginning balance	$	4,289	$	(147)	$	1,207	$	(473)
Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes		—		—		—		68
Balance net of cumulative effect of adopting ASU 2016-01	$	4,289	$	(147)	$	1,207	$	(405)

Other comprehensive income, net of tax:
Unrealized gain (loss) on securities available for sale
Unrealized holding gain (loss) arising during the period	$	(1,428)	$	1,009	$	5,110	$	1,394
Reclassification adjustment for gain included in net income		(2,312)		—		(3,286)		—
Tax effect		1,179		(315)		(577)		(442)
Net of tax	$	(2,561)	$	694	$	1,247	$	952

Unrealized loss on cash flow hedges
Unrealized holding loss arising during the period	$	(817)	$	—	$	(1,877)	$	—
Tax effect		258		—		592		—
Net of tax	$	(559)	$	—	$	(1,285)	$	—

Net current period other comprehensive income (loss)	$	(3,120)	$	694	$	(38)	$	952

Ending balance	$	1,169	$	547	$	1,169	$	547

There were no amounts related to the gain on the sale of securities that were reclassed out of accumulated other comprehensive income during the three and six months ended June 30, 2019. The following table shows the amounts reclassified out of each component of accumulated other comprehensive income for the gain on the sale of securities during the three and six months ended June 30, 2020 (in thousands):


	Three months ended June 30, 2020		Six months ended June 30, 2020		Affected line item in the Consolidated Statements of Operations
Amounts reclassified from accumulated other comprehensive income	$	2,312	$	3,286	Gain on sale of securities
Income tax expense		(729)		(1,036)	Income tax expense
Total reclassifications, net of income tax	$	1,583	$	2,250

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

6 Months Ended

Jun. 30, 2020

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

NOTE 10 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. The Bank’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

The following off-balance-sheet financial instruments, whose contract amounts represent credit risk, are outstanding at June 30, 2020 and December 31, 2019 (in thousands):


	At June 30, 2020				At December 31, 2019
			Variable				Variable
	Fixed Rate		Rate		Fixed Rate		Rate
Undrawn lines of credit	$	19,303	$	246,805	$	17,204	$	193,767
Letters of credit		40,124		—		47,743		—
Total	$	59,427	$	246,805	$	64,947	$	193,767

A commitment to extend credit is a legally binding agreement to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally expire within two years. At June 30, 2020, the Bank’s fixed rate loan commitments had interest rates ranging from 3.0% to 5.6% and the Bank’s variable rate loan commitments had interest rates ranging from 2.0% to 11.3%, with a maturity of one year or more. At December 31, 2019, the Bank’s fixed rate loan commitments had interest rates ranging from 3.0% to 5.6% and the Bank’s variable rate loan commitments had interest rates ranging from 3.5% to 9.8%, with a maturity of one year or more. The amount of collateral obtained, if any, by the Bank upon extension of credit is based on management’s credit evaluation of the borrower. Collateral held varies but may include mortgages on commercial and residential real estate, security interests in business assets, equipment, deposit accounts with the Bank or other financial institutions and securities.

The Bank’s stand-by letters of credit amounted to $40.1 million and $47.7 million as of June 30, 2020 and December 31, 2019, respectively. The Bank’s stand-by letters of credit are collateralized by interest-bearing accounts of $26.8 million and $29.8 million as of June 30, 2020 and December 31, 2019, respectively. The stand-by letters of credit mature within one year.

REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2020

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE 11 – REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company adopted ASU 2014-09, Revenue from Contracts with Customers, as of January 1, 2019. All of the Company’s revenue from contracts with customers that are in the scope of the accounting guidance are recognized in non-interest income. The following table presents the Company’s sources of non-interest income, within the scope of the ASU, for the three and six months ended June 30, 2020 and June 30, 2019 (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Service charges on deposit accounts	$	803	$	908	$	1,883	$	1,727
Prepaid third-party debit card income		2,108		1,422		3,729		2,679
Other service charges and fees		411		313		1,036		591
Total	$	3,322	$	2,643	$	6,648	$	4,997

A description of the Company’s revenue streams accounted for under the accounting guidance follows:

Debit card income: The Bank serves as a debit card issuer to, and contracts with, various program managers to issue debit cards to support various products including, but not limited to, healthcare marketing, general purpose reloadable cards, payroll cards, disbursement of government payments, payment of federal benefits and E-Wallet and push payments for sellers in online marketplaces. The Bank earns initial set-up fees for these programs as well as fees for transactions processed. The Bank receives transaction data at the end of each month for debit card services rendered, at which time revenue is recognized.

Service charges on deposit accounts: The Bank offers business and personal retail products and services, which include, but are not limited to, online banking, mobile banking, ACH, and remote deposit capture. A standard deposit contract exists between the Bank and all deposit customers. The Bank earns fees from its deposit customers for transaction-based

services (such as ATM use fees, stop payment charges, statement rendering, and ACH fees), account maintenance, and overdraft services. Transaction-based fees are recognized at the time the transaction is executed as that is the point in time the Bank fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Other service charges: The primary component of other service charges relates to foreign exchange (“FX”) conversion fees. The Bank outsources FX conversion for foreign currency transactions to correspondent banks. The Bank earns a portion of an FX conversion fee that the customer charges to process an FX conversion transaction. Revenue is recognized at the end of the month, once the customer has remitted the transaction information to the Bank.

DERIVATIVES

6 Months Ended

Jun. 30, 2020

DERIVATIVES

DERIVATIVES

NOTE 12 – DERIVATIVES

In the first quarter of 2020, the Company entered into an interest rate cap derivative contract (“interest rate cap” or “contract”) as a part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate cap does not represent the amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the contract. The interest rate subject to the cap is 30-day LIBOR.

The interest rate cap had a notional amount of $300.0 million as of June 30, 2020 and was designated as a cash flow hedge of certain deposit liabilities of the Bank. The hedge was determined to be effective during the three and six months ended June 30, 2020. The Company expects the hedge to remain effective during the remaining term of the contract.

The following table reflects the derivatives recorded on the balance sheet at June 30, 2020 (in thousands):


At June 30, 2020		Notional Amount		Fair Value
Derivatives designated as hedges:
Interest rate caps related to customer deposits	$	300,000	$	989
Total included in Other Assets	$	300,000	$	989

The effect of cash flow hedge accounting on accumulated other comprehensive income at June 30, 2020 is as follows (in thousands):


At June 30, 2020		Amount of Loss Recognized in OCI, net of tax		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income

Interest rate caps related to customer deposits	$	(1,285)	$	N/A	$	—

SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	Jun. 30, 2020
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS
ORGANIZATION	Metropolitan Bank Holding Corp., a New York corporation (the “Company”), is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The Bank’s primary market is the New York metropolitan area. The Bank offers a traditional range of services to individuals, businesses and others needing banking services. Its primary lending products are commercial and multifamily real estate loans and commercial and industrial loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from the cash flows from the operations of the business. The Bank’s primary deposit products are checking, savings, and term deposit accounts, and its deposit accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to the maximum amounts allowed by law. The Company and the Bank are subject to the regulations of certain state and federal agencies and, accordingly, are periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s business is affected by state and federal legislation and regulations.
Derivatives	The following accounting policy represents a material update and addition to the accounting policies previously disclosed in the Company’s Annual Report for the fiscal year ended December 31, 2019 as filed with the SEC. Derivatives: The Company has entered into an interest rate cap derivative that, based on the Company’s intentions and belief as to the likely effectiveness as a hedge, was designated as a cash flow hedge. A cash flow hedge is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in accumulated other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of the derivative that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. The amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedged transactions at the inception of the hedging relationship. The documentation includes linking the cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions or group of forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, or treatment of the derivative as a hedge is no longer appropriate or intended. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were in accumulated other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in accumulated other comprehensive income is reclassified into current earnings.

INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2020

INVESTMENT SECURITIES

Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At June 30, 2020	Cost		Gains		Losses		Fair Value
Debt securities available for sale:
Residential mortgage securities	$	139,488	$	2,695	$	—	$	142,183
Commercial mortgage securities		21,291		885		(2)		22,174
U.S. Government agency securities		25,000		2		—		25,002
Total securities available-for-sale	$	185,779	$	3,582	$	(2)	$	189,359

Held-to-maturity securities:
Residential mortgage securities	$	3,319	$	87	$	—	$	3,406
Total securities held-to-maturity	$	3,319	$	87	$	—	$	3,406

Equity investments:
CRA Mutual Fund	$	2,282	$	19	$	—	$	2,301
Total non-trading equity investment securities	$	2,282	$	19	$	—	$	2,301


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At December 31, 2019	Cost		Gains		Losses		Fair Value
Debt securities available for sale:
Residential mortgage securities	$	175,902	$	1,478	$	(117)	$	177,263
Commercial mortgage securities		32,284		206		(18)		32,472
U.S. Government agency securities		25,000		207		—		25,207
Total securities available for sale	$	233,186	$	1,891	$	(135)	$	234,942

Held-to-maturity securities:
Residential mortgage securities		3,722		9		(19)		3,712
Total securities held to maturity	$	3,722	$	9	$	(19)	$	3,712

Equity investments:
CRA Mutual Fund		2,258		—		(34)		2,224
Total non-trading equity investment securities	$	2,258	$	—	$	(34)	$	2,224

Schedule of Realized Gain (Loss) on Sales and Calls of Securities


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Proceeds	$	90,447	$	1,065	$	116,422	$	1,065
Gross gains	$	2,312	$	—	$	3,286	$	—
Tax impact	$	(729)	$	—	$	(1,036)	$	—

Schedule of amortized cost and fair value of debt securities classified by contractual maturity


	Held-to-Maturity				Available-for-Sale
At June 30, 2020	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	—	$	—	$	—	$	—
One to five years		—		—		—		—
Five to ten years		—		—		25,000		25,002
After ten years		—		—		—		—
Total	$	—	$	—	$	25,000	$	25,002

Residential mortgage securities	$	3,319	$	3,406		139,488		142,183
Commercial mortgage securities		—		—		21,291		22,174
Total Securities	$	3,319	$	3,406	$	185,779	$	189,359


	Held-to-Maturity				Available-for-Sale
At December 31, 2019	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	—	$	—	$	—	$	—
One to five years		—		—		—		—
Five to ten years		—		—		25,000		25,207
Due after ten years		—		—		—		—
Total	$	—	$	—	$	25,000	$	25,207

Residential mortgage securities	$	3,722	$	3,712	$	175,902	$	177,263
Commercial mortgage securities		—		—		32,284		32,472
Total Securities	$	3,722	$	3,712	$	233,186	$	234,942

Schedule of securities with unrealized/unrecognized losses


	Less than 12 Months				12 months or more				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At June 30, 2020	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Debt securities available for sale:
Residential mortgage securities	$	—	$	—	$	—	$	—	$	—	$	—
Commercial mortgage securities		—		—		389		(2)		389		(2)
Total securities available for sale	$	—	$	—	$	389	$	(2)	$	389	$	(2)

Held-to-Maturity Securities:
Residential mortgage securities	$	—	$	—	$	—	$	—	$	—	$	—
Total securities held to maturity	$	—	$	—	$	—	$	—	$	—	$	—

Equity investments:
CRA Mutual Fund	$	—	$	—	$	—	$	—	$	—	$	—
Total equity investment securities	$	—	$	—	$	—	$	—	$	—	$	—


	Less than 12 Months				12 months or more				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At December 31, 2019	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Debt securities available for sale:
Residential mortgage securities	$	22,850	$	(52)	$	6,728	$	(65)	$	29,578	$	(117)
Commercial mortgage securities		9,911		(18)		—		—		9,911		(18)
Total securities available-for-sale	$	32,761	$	(70)	$	6,728	$	(65)	$	39,489	$	(135)

Held-to-Maturity Securities:
Residential mortgage securities	$	—	$	—	$	1,470	$	(19)	$	1,470	$	(19)
Total securities held to maturity	$	—	$	—	$	1,470	$	(19)	$	1,470	$	(19)

Equity investments:
CRA Mutual Fund	$	—	$	—	$	2,224	$	(34)	$	2,224	$	(34)
Total equity investment securities	$	—	$	—	$	2,224	$	(34)	$	2,224	$	(34)

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2020

LOANS AND ALLOWANCE FOR LOAN LOSSES

Schedule of Net loans


	June 30, 2020		December 31, 2019
Real estate
Commercial	$	1,875,764	$	1,668,236
Construction		59,378		30,827
Multifamily		393,342		375,611
One-to-four family		68,326		82,670
Total real estate loans		2,396,810		2,157,344

Commercial and industrial		444,265		448,619
Consumer		56,217		71,956
Total loans		2,897,292		2,677,919
Deferred fees		(5,018)		(4,970)
Loans, net of deferred fees and unamortized costs		2,892,274		2,672,949
Allowance for loan losses		(32,505)		(26,272)
Balance at the end of the period	$	2,859,769	$	2,646,677

Schedule of portfolio of loans


	June 30, 2020
		Balance	% of Total Loans

CRE ⁽¹⁾
Skilled Nursing Facilities	$	538,705	18.6%
Multi-family		393,342	13.6%
Retail		218,133	7.5%
Mixed use		209,362	7.2%
Office		162,528	5.6%
Hospitality		158,379	5.5%
Construction		59,378	2.1%
Other		546,709	18.9%
Total CRE	$	2,286,535	79.1%

C&I ⁽²⁾
Healthcare	$	107,486	3.7%
Skilled Nursing Facilities		110,906	3.8%
Finance & Insurance		100,538	3.5%
Wholesale		24,578	0.8%
Manufacturing		17,384	0.6%
Transportation		13,661	0.5%
Retail		4,200	0.1%
Recreation & Restaurants		1,843	0.1%
Other		42,309	1.5%
Total C&I	$	422,905	14.6%

(1)	Commercial real estate, not including one-to-four family loans

(2)	Net of participations, premiums and overdraft adjustments

Schedule of changes in the allowance for loan losses by portfolio segment


	Commercial		Commercial				Multi		One-to-four
Three months ended June 30, 2020	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	15,891	$	8,213	$	549	$	2,518	$	191	$	506	$	27,868
COVID-19 allowance allocation		1,478		1,280		71		190		12		25		3,056
Adjusted beginning balance		17,369		9,493		620		2,708		203		531		30,924
Provision/(credit) for loan losses		1,321		(204)		121		31		39		458		1,766
Loans charged-off		—		(159)		—		—		—		(33)		(192)
Recoveries		—		2		—		—		—		5		7
Total ending allowance balance	$	18,690	$	9,132	$	741	$	2,739	$	242	$	961	$	32,505


	Commercial		Commercial				Multi		One-to-four
Three months ended June 30, 2019	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	10,885	$	6,177	$	647	$	2,111	$	308	$	706	$	20,834
Provision/(credit) for loan losses		2,121		(23)		(146)		138		(55)		(85)		1,950
Loans charged-off		—		(12)		—		—		—		(57)		(69)
Recoveries		—		—		—		—		—		—		—
Total ending allowance balance	$	13,006	$	6,142	$	501	$	2,249	$	253	$	564	$	22,715


	Commercial		Commercial				Multi		One-to-four
Six months ended June 30, 2020	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	15,317	$	7,070	$	411	$	2,453	$	267	$	754	$	26,272
Provision/(credit) for loan losses ⁽¹⁾		3,373		2,174		330		286		(25)		418		6,556
Loans charged-off		—		(172)		—		—		—		(221)		(393)
Recoveries		—		60		—		—		—		10		70
Total ending allowance balance	$	18,690	$	9,132	$	741	$	2,739	$	242	$	961	$	32,505


	Commercial		Commercial				Multi		One-to-four
Six months ended June 30, 2019	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	9,037	$	6,257	$	625	$	2,047	$	228	$	748	$	18,942
Provision/(credit) for loan losses		3,969		(4,099)		(124)		202		25		(54)		(81)
Loans charged-off		—		(286)		—		—		—		(130)		(416)
Recoveries		—		4,270		—		—		—		—		4,270
Total ending allowance balance	$	13,006	$	6,142	$	501	$	2,249	$	253	$	564	$	22,715

Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment

The following tables present the balance in the ALLL and the recorded investment in loans by portfolio segment, including the impact of COVID-19, based on impairment method as of June 30, 2020 and December 31, 2019 (in thousands):


	Commercial		Commercial				Multi		One-to-four
At June 30, 2020	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	1,408	$	—	$	—	$	58	$	527	$	1,993
Collectively evaluated for impairment		18,690		7,724		741		2,739		184		434		30,512
Total ending allowance balance	$	18,690	$	9,132	$	741	$	2,739	$	242	$	961	$	32,505
Loans:
Individually evaluated for impairment	$	363	$	6,482	$	—	$	—	$	1,016	$	1,926	$	9,787
Collectively evaluated for impairment		1,875,401		437,783		59,378		393,342		67,310		54,291		2,887,505
Total ending loan balance	$	1,875,764	$	444,265	$	59,378	$	393,342	$	68,326	$	56,217	$	2,897,292


	Commercial		Commercial				Multi		One-to-four
At December 31, 2019	Real Estate		& Industrial		Construction		Family		Family		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	805	$	—	$	—	$	64	$	311	$	1,180
Collectively evaluated for impairment		15,317		6,265		411		2,453		203		443		25,092
Total ending allowance balance	$	15,317	$	7,070	$	411	$	2,453	$	267	$	754	$	26,272
Loans:
Individually evaluated for impairment	$	367	$	1,047	$	—	$	—	$	3,384	$	728	$	5,526
Collectively evaluated for impairment		1,667,869		447,572		30,827		375,611		79,286		71,228		2,672,393
Total ending loan balance	$	1,668,236	$	448,619	$	30,827	$	375,611	$	82,670	$	71,956	$	2,677,919

Schedule of loans determined to be impaired by class of loans


	Unpaid Principal				Allowance for Loan
At June 30, 2020	Balance		Recorded Investment		Losses Allocated
With an allowance recorded:
One-to-four family	$	621	$	492	$	58
Consumer		1,926		1,926		527
Commercial & industrial		6,482		6,482		1,408
Total	$	9,029	$	8,900	$	1,993

Without an allowance recorded:
One-to-four family	$	672	$	524	$	—
Commercial real estate		363		363		—
Commercial & industrial		—		—		—
Total	$	1,035	$	887	$	—


	Unpaid Principal				Allowance for Loan
At December 31, 2019	Balance		Recorded Investment		Losses Allocated
With an allowance recorded:
One-to-four family	$	633	$	503	$	64
Consumer		731		728		311
Commercial & industrial		1,047		1,047		805
Total	$	2,411	$	2,278	$	1,180

Without an allowance recorded:
One-to-four family		3,028	$	2,881	$	—
Commercial real estate		367		367		—
Total	$	3,395	$	3,248	$	—

Schedule of average recorded investment and interest income of loans


	Average Recorded		Interest Income
Three months ended June 30, 2020	Investment		Recognized
With an allowance recorded:
One-to-four family	$	494	$	3
Consumer		1,147		27
Commercial & industrial		3,765		—
Total	$	5,406	$	30

Without an allowance recorded:
One-to-four family	$	528	$	—
Commercial real estate		363		—
Commercial & industrial		2,377		—
Total	$	3,268	$	—


	Average Recorded		Interest Income
Three months ended June 30, 2019	Investment		Recognized
With an allowance recorded:
One-to-four family	$	521	$	7
Consumer		91		2
Total	$	612	$	9

Without an allowance recorded:
One-to-four family	$	1,732	$	79
Commercial real estate		377		4
Total	$	2,109	$	83


	Average Recorded		Interest Income
Six months ended June 30, 2020	Investment		Recognized
With an allowance recorded:
One-to-four family	$	497	$	8
Consumer		1,008		31
Commercial & industrial		2,859		—
Total	$	4,364	$	39

Without an allowance recorded:
One-to-four family	$	1,312	$	10
Commercial real estate		364		4
Total	$	1,676	$	14


	Average Recorded		Interest Income
Six months ended June 30, 2019	Investment		Recognized
With an allowance recorded:
One-to-four family	$	347	$	10
Consumer		90		4
Total	$	437	$	14

Without an allowance recorded:
One-to-four family	$	3,891	$	90
Commercial real estate		379		8
Total	$	4,270	$	98

Schedule of recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans


At June 30, 2020	Non-accrual		Loans Past Due Over 90 Days Still Accruing
Commercial & industrial	$	6,482	$	54
Consumer		601		1,311
Total	$	7,083	$	1,365


At December 31, 2019	Non-accrual			Loans Past Due Over 90 Days Still Accruing
Commercial & industrial	$	1,047	$	408
One-to-four family		2,345		—
Consumer		693		—
Total	$	4,085	$	408

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


					Greater
	30-59		60-89		than 90		Total past		Current
At June 30, 2020	Days		Days		days		due		loans		Total
Commercial real estate	$	6,400	$	—	$	—	$	6,400	$	1,869,364	$	1,875,764
Commercial & industrial		18		2		6,536		6,556		437,709		444,265
Construction		—		—		—		—		59,378		59,378
Multifamily		—		—		—		—		393,342		393,342
One-to-four family		—		—		—		—		68,326		68,326
Consumer		68		25		1,912		2,005		54,212		56,217
Total	$	6,486	$	27	$	8,448	$	14,961	$	2,882,331	$	2,897,292


					Greater
	30-59		60-89		than 90		Total past		Current
At December 31, 2019	Days		Days		days		due		loans		Total
Commercial real estate	$	—	$	—	$	—	$	—	$	1,668,236	$	1,668,236
Commercial & industrial		346		—		1,455		1,801		446,818		448,619
Construction		—		—		—		—		30,827		30,827
Multifamily		—		—		—		—		375,611		375,611
One-to-four family		—		—		—		—		82,670		82,670
Consumer		636		14		693		1,343		70,613		71,956
Total	$	982	$	14	$	2,148	$	3,144	$	2,674,775	$	2,677,919

Schedule of recorded investment in TDRs by class of loans

The following tables present the recorded investment in TDRs by class of loans as of June 30, 2020 and December 31, 2019 (in thousands):


	June 30, 2020		December 31, 2019
Troubled debt restructurings:
Real Estate:
Commercial real estate	$	363	$	367
One-to-four family		1,016		1,039
Consumer		14		35
Total troubled debt restructurings	$	1,393	$	1,441

Schedule of risk category of loans by class of loans


			Special
At June 30, 2020	Pass		Mention		Substandard		Doubtful			Total
Commercial real estate	$	1,875,401	$	363	$	—	$	—	$	1,875,764
Commercial & industrial		437,729		—		5,489		1,047		444,265
Construction		59,378		—		—		—		59,378
Multifamily		393,342		—		—		—		393,342
Total	$	2,765,850	$	363	$	5,489	$	1,047	$	2,772,749


			Special
At December 31, 2019	Pass		Mention		Substandard		Doubtful			Total
Commercial real estate	$	1,667,869	$	367	$	—	$	—	$	1,668,236
Commercial & industrial		446,612		—		960		1,047		448,619
Construction		30,827		—		—		—		30,827
Multi-family		375,611		—		—		—		375,611
Total	$	2,520,919	$	367	$	960	$	1,047	$	2,523,293

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2020

EARNINGS PER SHARE

Schedule of earnings per common share


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Basic
Net income per consolidated statements of income	$	10,811	$	6,057	$	16,908	$	14,588
Less: Earnings allocated to participating securities		(95)		(107)		(164)		(243)
Net income available to common stockholders	$	10,716	$	5,950	$	16,744	$	14,345

Weighted average common shares outstanding including participating securities		8,294,801		8,320,036		8,299,503		8,310,071
Less: Weighted average participating securities		(73,053)		(146,549)		(80,650)		(138,711)
Weighted average common shares outstanding		8,221,748		8,173,487		8,218,853		8,171,360

Basic earnings per common share	$	1.30	$	0.73	$	2.04	$	1.76

Diluted
Net income allocated to common stockholders	$	10,716	$	5,950	$	16,744	$	14,345

Weighted average common shares outstanding for basic earnings per common share		8,221,748		8,173,487		8,218,853		8,171,360
Add: Dilutive effects of assumed exercise of stock options		74,597		126,491		108,905		121,022
Add: Dilutive effects of assumed vesting of performance based restricted stock units		63,105		36,086		63,756		28,484
Average shares and dilutive potential common shares		8,359,450		8,336,064		8,391,514		8,320,866

Dilutive earnings per common share	$	1.28	$	0.71	$	2.00	$	1.72

STOCK COMPENSATION PLAN (Tables)

6 Months Ended

Jun. 30, 2020

STOCK COMPENSATION PLAN

Schedule of status of the stock option plan


	Six Months Ended June 30, 2020
	Number of	Weighted Average
	Options	Exercise Price

Outstanding, beginning of period	231,000	$	18.00
Granted	—		—
Exercised	—		—
Cancelled/forfeited	—		—
Outstanding, end of period	231,000	$	18.00
Options vested and exercisable at end of period	231,000	$	18.00

Weighted average remaining contractual life (years)			3.88

Schedule of summary of stock options outstanding


	At June 30, 2020
Range of Average		Weighted Average	Weighted Average		Weighted Average
Exercise Prices	Number Outstanding at	Remaining Contractual Life	Exercise Price		Intrinsic Price per Share
$10 – 20	231,000	3.88	$	18.00	$	14.08
$21 – 30	—	—	$	—	$	—
$10 – 30	231,000	3.88	$	18.00	$	14.08

Schedule of changes in the non-vested restricted stock awards


	Six Months Ended June 30, 2020
		Weighted Average
	Number of Shares	Grant Date Fair Value

Outstanding, beginning of period	104,838	$	29.86
Granted	60,307		45.29
Forfeited	(20,354)		35.87
Vested	(19,541)		19.39
Outstanding at end of period	125,250	$	37.95

Summary of changes in the non-vested Performance Restricted Share Units awards



	June 30, 2020

Weighted average service inception date fair value of award shares	$	4,064,295
Minimum aggregate share payout		12,000
Maximum aggregate share payout		90,000
Likely aggregate share payout		90,000

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2020

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of Assets and Liabilities measured at fair value on a recurring basis


	Fair Value Measurement using:
			Quoted Prices
			in Active		Significant
			Markets		Other		Significant
	Carrying		For Identical		Observable		Unobservable
	Amount		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
At June 30, 2020
Residential mortgage securities	$	142,183	$	—	$	142,183	$	—
Commercial mortgage securities		22,174		—		22,174		—
U.S. Government agency securities		25,002				25,002
CRA Mutual Fund		2,301		2,301		—		—
Interest rate cap derivative		989		—		989		—


	Fair Value Measurement using:
			Quoted Prices
			in Active		Significant
			Markets		Other		Significant
	Carrying		For Identical		Observable		Unobservable
	Amount		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)

At December 31, 2019
Residential mortgage securities	$	177,263	$	—	$	177,263	$	—
Commercial mortgage securities		32,472		—		32,472		—
U.S. Government agency securities		25,207		—		25,207		—
CRA Mutual Fund		2,224		2,224		—		—

Schedule of carrying amount and estimated fair values of financial instruments

Carrying amount and estimated fair values of financial instruments at June 30, 2020 and December 31, 2019 were as follows (in thousands):


			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets		Other		Significant
	Carrying		For Identical		Observable		Unobservable		Total Fair
At June 30, 2020	Amount		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Value
Financial Assets:
Cash and due from banks	$	9,529	$	9,529	$	—	$	—	$	9,529
Overnight deposits		813,147		813,147		—		—		813,147
Securities available for sale		189,359		—		189,359		—		189,359
Securities held to maturity		3,319		—		3,406		—		3,406
Equity investments		2,301		2,301		—		—		2,301
Loans, net		2,859,769		—		—		2,858,854		2,858,854
Other investments
FRB Stock		7,335		N/A		N/A		N/A		N/A
FHLB Stock		7,398		N/A		N/A		N/A		N/A
Disability Fund		500		—		500		—		500
Time deposits at banks		498		498		—		—		498
Interest rate cap derivative		989		—		989		—		989
Accrued interest receivable		11,148		—		375		10,773		11,148

Financial liabilities:
Non-interest-bearing demand deposits	$	1,526,439	$	1,526,439	$	—	$	—	$	1,526,439
Money market and savings deposits		1,769,419		1,769,419		—		—		1,769,419
Time deposits		98,881		—		100,209		—		100,209
Federal Home Loan Bank of New York advances		104,000		—		104,384		—		104,384
Trust preferred securities payable		20,620		—		—		20,082		20,082
Subordinated debt, net of issuance cost		24,629		—		25,000		—		25,000
Accrued interest payable		1,199		6		1,029		164		1,199


			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets		Other		Significant
	Carrying		For Identical		Observable		Unobservable		Total Fair
At December 31, 2019	Amount		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Value
Financial Assets:
Cash and due from banks	$	8,116	$	8,116	$	—	$	—	$	8,116
Overnight deposits		381,104		381,104		—		—		381,104
Securities available for sale		234,942		—		234,942		—		234,942
Securities held to maturity		3,722		—		3,712		—		3,712
Equity investments		2,224		2,224		—		—		2,224
Loans, net		2,646,677		—		—		2,609,233		2,609,233
Other investments
FRB Stock		7,317		N/A		N/A		N/A		N/A
FHLB Stock		8,122		N/A		N/A		N/A		N/A
SBA Loan Fund		5,000		N/A		N/A		N/A		N/A
Disability Fund		500		—		500		—		500
Time deposits at banks		498		498		—		—		498
Accrued interest receivable		8,862		—		544		8,318		8,862

Financial liabilities:
Non-interest-bearing demand deposits	$	1,090,479	$	1,090,479	$	—	$	—	$	1,090,479
Money market and savings deposits		1,589,920		1,589,920		—		—		1,589,920
Time deposits		110,375		—		110,800		—		110,800
Federal Home Loan Bank of New York advances		144,000		—		144,229		—		144,229
Trust preferred securities payable		20,620		—		—		20,011		20,011
Subordinated debt, net of issuance cost		24,601		—		25,375		—		25,375
Accrued interest payable		1,229		14		1,009		206		1,229

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

6 Months Ended

Jun. 30, 2020

ACCUMULATED OTHER COMPREHENSIVE LOSS

Summary of changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects


	Three months ended				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019
Beginning balance	$	4,289	$	(147)	$	1,207	$	(473)
Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes		—		—		—		68
Balance net of cumulative effect of adopting ASU 2016-01	$	4,289	$	(147)	$	1,207	$	(405)

Other comprehensive income, net of tax:
Unrealized gain (loss) on securities available for sale
Unrealized holding gain (loss) arising during the period	$	(1,428)	$	1,009	$	5,110	$	1,394
Reclassification adjustment for gain included in net income		(2,312)		—		(3,286)		—
Tax effect		1,179		(315)		(577)		(442)
Net of tax	$	(2,561)	$	694	$	1,247	$	952

Unrealized loss on cash flow hedges
Unrealized holding loss arising during the period	$	(817)	$	—	$	(1,877)	$	—
Tax effect		258		—		592		—
Net of tax	$	(559)	$	—	$	(1,285)	$	—

Net current period other comprehensive income (loss)	$	(3,120)	$	694	$	(38)	$	952

Ending balance	$	1,169	$	547	$	1,169	$	547

Schedule of reclassifications out of accumulated other comprehensive income (loss)


	Three months ended June 30, 2020		Six months ended June 30, 2020		Affected line item in the Consolidated Statements of Operations
Amounts reclassified from accumulated other comprehensive income	$	2,312	$	3,286	Gain on sale of securities
Income tax expense		(729)		(1,036)	Income tax expense
Total reclassifications, net of income tax	$	1,583	$	2,250

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)

6 Months Ended

Jun. 30, 2020

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

Schedule of off-balance-sheet financial instruments


	At June 30, 2020				At December 31, 2019
			Variable				Variable
	Fixed Rate		Rate		Fixed Rate		Rate
Undrawn lines of credit	$	19,303	$	246,805	$	17,204	$	193,767
Letters of credit		40,124		—		47,743		—
Total	$	59,427	$	246,805	$	64,947	$	193,767

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

6 Months Ended

Jun. 30, 2020

REVENUE FROM CONTRACTS WITH CUSTOMERS

Schedule of Company's sources of non-interest income


	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Service charges on deposit accounts	$	803	$	908	$	1,883	$	1,727
Prepaid third-party debit card income		2,108		1,422		3,729		2,679
Other service charges and fees		411		313		1,036		591
Total	$	3,322	$	2,643	$	6,648	$	4,997

DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2020

DERIVATIVES

Schedule of derivative position gross on the balance sheet

The following table reflects the derivatives recorded on the balance sheet at June 30, 2020 (in thousands):


At June 30, 2020		Notional Amount		Fair Value
Derivatives designated as hedges:
Interest rate caps related to customer deposits	$	300,000	$	989
Total included in Other Assets	$	300,000	$	989

Schedule of effect of cash flow hedge accounting on accumulated other comprehensive income

The effect of cash flow hedge accounting on accumulated other comprehensive income at June 30, 2020 is as follows (in thousands):


At June 30, 2020		Amount of Loss Recognized in OCI, net of tax		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income

Interest rate caps related to customer deposits	$	(1,285)	$	N/A	$	—

BASIS OF PRESENTATION (Details) $ in Thousands	6 Months Ended
BASIS OF PRESENTATION (Details) $ in Thousands	Jun. 30, 2020 USD ($)
BASIS OF PRESENTATION
Impairment of goodwill	$ 0

SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Details) - Restatement Adjustment	Jan. 01, 2019 USD ($)
ASU 2014-09
Adjustment to opening retained earnings	$ 117,000
ASU 2016-01 and 2018-03
Adjustment to opening retained earnings	$ 68,000

INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Investment securities available for sale, at fair value	$ 189,359	$ 234,942
Available-for-sale Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	185,779	233,186
Gross Unrealized/Unrecognized Gains	3,582	1,891
Gross Unrealized/Unrecognized Losses	(2)	(135)
Investment securities available for sale, at fair value	189,359	234,942
Available-for-sale Securities \| Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	139,488	175,902
Gross Unrealized/Unrecognized Gains	2,695	1,478
Gross Unrealized/Unrecognized Losses		(117)
Investment securities available for sale, at fair value	142,183	177,263
Available-for-sale Securities \| Commercial mortgage-backed securities issued by U.S. government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	21,291	32,284
Gross Unrealized/Unrecognized Gains	885	206
Gross Unrealized/Unrecognized Losses	(2)	(18)
Investment securities available for sale, at fair value	22,174	32,472
Available-for-sale Securities \| U.S. Government agency securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	25,000	25,000
Gross Unrealized/Unrecognized Gains	2	207
Gross Unrealized/Unrecognized Losses		0
Investment securities available for sale, at fair value	$ 25,002	$ 25,207

INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 3,319	$ 3,722
Total Securities	3,406	3,712
Held-to-maturity Securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	3,319	3,722
Gross Unrealized/Unrecognized Gains	87	9
Gross Unrealized/Unrecognized Losses		(19)
Total Securities	3,406	3,712
Held-to-maturity Securities \| Residential mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	3,319	3,722
Gross Unrealized/Unrecognized Gains	87	9
Gross Unrealized/Unrecognized Losses		(19)
Total Securities	$ 3,406	$ 3,712

INVESTMENT SECURITIES (Schedule of amortized cost and fair value of marketable equity securities) (Details) - Equity securities - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Amortized Cost - CRA Mutual Fund	$ 2,282	$ 2,258
Gross Unrealized/Unrecognized Gains	(19)	0
Gross Unrealized/Unrecognized Losses		(34)
Fair Value CRA Mutual Fund	2,301	2,224
CRA mutual fund
Marketable Securities [Line Items]
Amortized Cost - CRA Mutual Fund	2,282	2,258
Gross Unrealized/Unrecognized Gains	(19)	0
Gross Unrealized/Unrecognized Losses		(34)
Fair Value CRA Mutual Fund	$ 2,301	$ 2,224

INVESTMENT SECURITIES (Proceeds from sales and calls of securities and associated gains and losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
INVESTMENT SECURITIES
Sale of available for sale securities, at amortized cost	$ 88,100		$ 108,100
Proceeds from calls of securities available for sale		$ 1,100	5,000	$ 1,065
Proceeds from sales and calls	90,447	$ 1,065	116,422	$ 1,065
Gross gains	2,312		3,286
Tax impact	$ 729		$ 1,036

INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amortized Cost
Amortized Cost, Held to maturity	$ 3,319	$ 3,722
Fair Value
Fair Value, Held to maturity	3,406	3,712
Amortized Cost
Five to ten years	25,000	25,000
Amortized Cost, total	25,000	25,000
Amortized Cost, Available-for-sale Securities	185,779	233,186
Fair Value
Five to ten years	25,002	25,207
Fair Value, total	25,002	25,207
Fair Value, Available-for-sale Securities	189,359	234,942
AFS securities pledged to secure customer deposit	0	126,200
Residential mortgage-backed securities
Amortized Cost
Amortized Cost, Held to maturity	3,319	3,722
Fair Value
Fair Value, Held to maturity	3,406	3,712
Amortized Cost
Amortized Cost, Available-for-sale Securities	139,488	175,902
Fair Value
Fair Value, Available-for-sale Securities	142,183	177,263
Commercial mortgage-backed securities issued by U.S. government sponsored entities
Amortized Cost
Amortized Cost, Available-for-sale Securities	21,291	32,284
Fair Value
Fair Value, Available-for-sale Securities	$ 22,174	$ 32,472

INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020 USD ($) item	Dec. 31, 2019 USD ($) item
Held-to-maturity Securities
Number of securities of one issuer \| item	0	0
Impairment loss	$ 0	$ 0
Equity securities
Held-to-maturity Securities
12 months or more, Estimated Fair Value		2,224
12 months or more, Unrealized/Unrecognized Losses		(34)
Total, Estimated Fair Value		2,224
Total, Unrealized Losses		(34)
Available-for-sale Securities
Available-for-sale Securities
Less than 12 Months, Estimated Fair Value		32,761
Less than 12 Months, Unrealized/Unrecognized Losses		(70)
12 months or more, Estimated Fair Value	389	6,728
12 months or more, Unrealized/Unrecognized Losses	(2)	(65)
Total, Estimated Fair Value	389	39,489
Total, Unrealized/Unrecognized Losses	(2)	(135)
Held-to-maturity Securities
Held-to-maturity Securities
12 months or more, Estimated Fair Value		1,470
12 months or more, Unrealized/Unrecognized Losses		(19)
Total, Estimated Fair Value		1,470
Total, Unrealized Losses		(19)
Residential mortgage-backed securities \| Available-for-sale Securities
Available-for-sale Securities
Less than 12 Months, Estimated Fair Value		22,850
Less than 12 Months, Unrealized/Unrecognized Losses		(52)
12 months or more, Estimated Fair Value		6,728
12 months or more, Unrealized/Unrecognized Losses		(65)
Total, Estimated Fair Value		29,578
Total, Unrealized/Unrecognized Losses		(117)
Residential mortgage-backed securities \| Held-to-maturity Securities
Held-to-maturity Securities
12 months or more, Estimated Fair Value		1,470
12 months or more, Unrealized/Unrecognized Losses		(19)
Total, Estimated Fair Value		1,470
Total, Unrealized Losses		(19)
Commercial mortgage-backed securities issued by U.S. government sponsored entities \| Available-for-sale Securities
Available-for-sale Securities
Less than 12 Months, Estimated Fair Value		9,911
Less than 12 Months, Unrealized/Unrecognized Losses		(18)
Total, Estimated Fair Value		9,911
Total, Unrealized/Unrecognized Losses		(18)
Commercial collateralized mortgage obligations \| Available-for-sale Securities
Available-for-sale Securities
12 months or more, Estimated Fair Value	389
12 months or more, Unrealized/Unrecognized Losses	(2)
Total, Estimated Fair Value	389
Total, Unrealized/Unrecognized Losses	$ (2)
CRA mutual fund \| Equity securities
Held-to-maturity Securities
12 months or more, Estimated Fair Value		2,224
12 months or more, Unrealized/Unrecognized Losses		(34)
Total, Estimated Fair Value		2,224
Total, Unrealized Losses		$ (34)

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable Disclosure [Line Items]
Total loans		$ 2,897,292	$ 2,677,919
Deferred fees		(5,018)	(4,970)
Loans, net of deferred fees and unamortized costs		2,892,274	2,672,949
Allowance for loan losses		(32,505)	(26,272)	$ (22,715)	$ (20,834)	$ (18,942)
Net loans		2,859,769	2,646,677
Healthcare Sector [Member]
Loans and Leases Receivable Disclosure [Line Items]
Net loans		757,100
Additional provision for loan losses	$ 3,100
Skilled nursing facilities [Member]
Loans and Leases Receivable Disclosure [Line Items]
Net loans		649,600
Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans		2,396,810	2,157,344
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans		444,265	448,619
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans		56,217	71,956
Commercial \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans		1,875,764	1,668,236
Allowance for loan losses	(15,891)	(18,690)	(15,317)	(13,006)	(10,885)	(9,037)
Commercial \| Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans		444,265	448,619
Allowance for loan losses	(8,213)	(9,132)	(7,070)	(6,142)	(6,177)	(6,257)
Construction \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans		59,378	30,827
Allowance for loan losses	(549)	(741)	(411)	(501)	(647)	(625)
Consumer \| Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans		56,217	71,956
Allowance for loan losses	(506)	(961)	(754)	(564)	(706)	(748)
Multi-family \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans		393,342	375,611
Allowance for loan losses	(2,518)	(2,739)	(2,453)	(2,249)	(2,111)	(2,047)
One to four family \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans		68,326	82,670
Allowance for loan losses	$ (191)	$ (242)	$ (267)	$ (253)	$ (308)	$ (228)

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Portfolio) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Impaired [Line Items]
Total loans	$ 2,859,769	$ 2,646,677
Healthcare Sector [Member]
Financing Receivable, Impaired [Line Items]
Total loans	$ 757,100
Percentage of total loans	26.10%
Skilled nursing facilities [Member]
Financing Receivable, Impaired [Line Items]
Total loans	$ 649,600
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Total loans	$ 2,286,535
Percentage of total loans	79.10%
CRE Skilled Nursing Facilities
Financing Receivable, Impaired [Line Items]
Total loans	$ 538,705
Percentage of total loans	18.60%
CRE Multi-family
Financing Receivable, Impaired [Line Items]
Total loans	$ 393,342
Percentage of total loans	13.60%
CRE Retail
Financing Receivable, Impaired [Line Items]
Total loans	$ 218,133
Percentage of total loans	7.50%
CRE Mixed use
Financing Receivable, Impaired [Line Items]
Total loans	$ 209,362
Percentage of total loans	7.20%
CRE Office
Financing Receivable, Impaired [Line Items]
Total loans	$ 162,528
Percentage of total loans	5.60%
CRE Hospitality
Financing Receivable, Impaired [Line Items]
Total loans	$ 158,379
Percentage of total loans	5.50%
CRE Construction
Financing Receivable, Impaired [Line Items]
Total loans	$ 59,378
Percentage of total loans	2.10%
CRE Other
Financing Receivable, Impaired [Line Items]
Total loans	$ 546,709
Percentage of total loans	18.90%
Commercial And Industrial
Financing Receivable, Impaired [Line Items]
Total loans	$ 422,905
Percentage of total loans	14.60%
C&I Healthcare
Financing Receivable, Impaired [Line Items]
Total loans	$ 107,486
Percentage of total loans	3.70%
C&I Skilled Nursing Facilities
Financing Receivable, Impaired [Line Items]
Total loans	$ 110,906
Percentage of total loans	3.80%
C&I Finance And Insurance
Financing Receivable, Impaired [Line Items]
Total loans	$ 100,538
Percentage of total loans	3.50%
C&I Wholesale
Financing Receivable, Impaired [Line Items]
Total loans	$ 24,578
Percentage of total loans	0.80%
C&I Manufacturing
Financing Receivable, Impaired [Line Items]
Total loans	$ 17,384
Percentage of total loans	0.60%
C&I Transportation
Financing Receivable, Impaired [Line Items]
Total loans	$ 13,661
Percentage of total loans	0.50%
C&I Retail
Financing Receivable, Impaired [Line Items]
Total loans	$ 4,200
Percentage of total loans	0.10%
C&I Recreation And Restaurants
Financing Receivable, Impaired [Line Items]
Total loans	$ 1,843
Percentage of total loans	0.10%
C&I Other
Financing Receivable, Impaired [Line Items]
Total loans	$ 42,309
Percentage of total loans	1.50%

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance		$ 20,834	$ 26,272	$ 18,942
Provision (credit) for loan losses	$ 1,766	1,950	6,556	(81)
Loans charged-off		(69)	(393)	(416)
Recoveries			70	4,270
Total ending allowance balance	32,505	22,715	32,505	22,715
Net charge-offs (recoveries)	185	69	323	(3,900)
Recovered charged-off in taxi medallion loans				4,200
COVID 19 - Impact
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	27,868
COVID-19 allowance allocation					$ 3,056
Adjusted beginning balance	30,924
Provision (credit) for loan losses	1,766		3,100
Loans charged-off	(192)
Recoveries	7
Total ending allowance balance	32,505		32,505
Commercial And Industrial
Allowance for Loan and Lease Losses [Roll Forward]
Principal balance	5,400		5,400
Real estate \| Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	15,891	10,885	15,317	9,037
COVID-19 allowance allocation					1,478
Adjusted beginning balance	17,369
Provision (credit) for loan losses	1,321	2,121	3,373	3,969
Total ending allowance balance	18,690	13,006	18,690	13,006
Real estate \| Construction
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	549	647	411	625
COVID-19 allowance allocation					71
Adjusted beginning balance	620
Provision (credit) for loan losses	121	(146)	330	(124)
Total ending allowance balance	741	501	741	501
Real estate \| Multi-family
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	2,518	2,111	2,453	2,047
COVID-19 allowance allocation					190
Adjusted beginning balance	2,708
Provision (credit) for loan losses	31	138	286	202
Total ending allowance balance	2,739	2,249	2,739	2,249
Real estate \| One to four family
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	191	308	267	228
COVID-19 allowance allocation					12
Adjusted beginning balance	203
Provision (credit) for loan losses	39	(55)	(25)	25
Total ending allowance balance	242	253	242	253
Commercial and industrial \| Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	8,213	6,177	7,070	6,257
COVID-19 allowance allocation					1,280
Adjusted beginning balance	9,493
Provision (credit) for loan losses	(204)	(23)	2,174	(4,099)
Loans charged-off	(159)	(12)	(172)	(286)
Recoveries	2		60	4,270
Total ending allowance balance	9,132	6,142	9,132	6,142
Commercial and industrial \| COVID 19 - Impact
Allowance for Loan and Lease Losses [Roll Forward]
Loans charged-off			544
Consumer \| Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	506	706	754	748
COVID-19 allowance allocation					$ 25
Adjusted beginning balance	531
Provision (credit) for loan losses	458	(85)	418	(54)
Loans charged-off	(33)	(57)	(221)	(130)
Recoveries	5		10
Total ending allowance balance	$ 961	$ 564	$ 961	$ 564

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment, Allowance for loan losses			$ 1,180
Collectively evaluated for impairment, Allowance for loan losses			25,092
Total ending allowance balance	$ 32,505		26,272	$ 22,715	$ 20,834	$ 18,942
Individually evaluated for impairment, Loans			5,526
Collectively evaluated for impairment, Loans			2,672,393
Total ending loan balance	2,897,292		2,677,919
COVID 19 - Impact
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment, Allowance for loan losses	1,993
Collectively evaluated for impairment, Allowance for loan losses	30,512
Total ending allowance balance	32,505	$ 27,868
Individually evaluated for impairment, Loans	9,787
Collectively evaluated for impairment, Loans	2,887,505
Total ending loan balance	2,897,292
Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total ending loan balance	2,396,810		2,157,344
Real estate \| Commercial
Loans and Leases Receivable Disclosure [Line Items]
Collectively evaluated for impairment, Allowance for loan losses	18,690		15,317
Total ending allowance balance	18,690	15,891	15,317	13,006	10,885	9,037
Individually evaluated for impairment, Loans	363		367
Collectively evaluated for impairment, Loans	1,875,401		1,667,869
Total ending loan balance	1,875,764		1,668,236
Real estate \| Construction
Loans and Leases Receivable Disclosure [Line Items]
Collectively evaluated for impairment, Allowance for loan losses	741		411
Total ending allowance balance	741	549	411	501	647	625
Collectively evaluated for impairment, Loans	59,378		30,827
Total ending loan balance	59,378		30,827
Real estate \| Multi-family
Loans and Leases Receivable Disclosure [Line Items]
Collectively evaluated for impairment, Allowance for loan losses	2,739		2,453
Total ending allowance balance	2,739	2,518	2,453	2,249	2,111	2,047
Collectively evaluated for impairment, Loans	393,342		375,611
Total ending loan balance	393,342		375,611
Real estate \| One to four family
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment, Allowance for loan losses	58		64
Collectively evaluated for impairment, Allowance for loan losses	184		203
Total ending allowance balance	242	191	267	253	308	228
Individually evaluated for impairment, Loans	1,016		3,384
Collectively evaluated for impairment, Loans	67,310		79,286
Total ending loan balance	68,326		82,670
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total ending loan balance	444,265		448,619
Commercial and industrial \| Commercial
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment, Allowance for loan losses	1,408		805
Collectively evaluated for impairment, Allowance for loan losses	7,724		6,265
Total ending allowance balance	9,132	8,213	7,070	6,142	6,177	6,257
Individually evaluated for impairment, Loans	6,482		1,047
Collectively evaluated for impairment, Loans	437,783		447,572
Total ending loan balance	444,265		448,619
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total ending loan balance	56,217		71,956
Consumer \| Consumer
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment, Allowance for loan losses	527		311
Collectively evaluated for impairment, Allowance for loan losses	434		443
Total ending allowance balance	961	$ 506	754	$ 564	$ 706	$ 748
Individually evaluated for impairment, Loans	1,926		728
Collectively evaluated for impairment, Loans	54,291		71,228
Total ending loan balance	$ 56,217		$ 71,956

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Impaired by Class of Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
With an allowance recorded:
Unpaid Principal Balance	$ 9,029		$ 9,029		$ 2,411
Recorded Investment	8,900		8,900		2,278
Allowance for Loan Losses Allocated	1,993		1,993		1,180
Average Recorded Investment	5,406	$ 612	4,364	$ 437
Interest Income Recognized	30	9	39	14
Without an allowance recorded:
Unpaid Principal Balance	1,035		1,035		3,395
Recorded Investment	887		887		3,248
Average Recorded Investment	3,268	2,109	1,676	4,270
Interest Income Recognized		83	14	98
One to four family
With an allowance recorded:
Average Recorded Investment			497	347
Interest Income Recognized			8	10
Without an allowance recorded:
Average Recorded Investment			1,312	3,891
Interest Income Recognized			10	90
Real estate \| Commercial
Without an allowance recorded:
Unpaid Principal Balance	363		363		367
Recorded Investment	363		363		367
Average Recorded Investment	363	377	364	379
Interest Income Recognized		4	4	8
Real estate \| One to four family
With an allowance recorded:
Unpaid Principal Balance	621		621		633
Recorded Investment	492		492		503
Allowance for Loan Losses Allocated	58		58		64
Average Recorded Investment	494	521
Interest Income Recognized	3	7
Without an allowance recorded:
Unpaid Principal Balance	672		672		3,028
Recorded Investment	524		524		2,881
Average Recorded Investment	528	1,732
Interest Income Recognized		79
Commercial and industrial
With an allowance recorded:
Average Recorded Investment			2,859
Commercial and industrial \| Commercial
With an allowance recorded:
Unpaid Principal Balance	6,482		6,482		1,047
Recorded Investment	6,482		6,482		1,047
Allowance for Loan Losses Allocated	1,408		1,408		805
Average Recorded Investment	3,765
Without an allowance recorded:
Average Recorded Investment	2,377
Consumer
With an allowance recorded:
Average Recorded Investment			1,008	90
Interest Income Recognized			31	$ 4
Consumer \| Consumer
With an allowance recorded:
Unpaid Principal Balance	1,926		1,926		731
Recorded Investment	1,926		1,926		728
Allowance for Loan Losses Allocated	527		$ 527		$ 311
Average Recorded Investment	1,147	91
Interest Income Recognized	$ 27	$ 2

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual	$ 7,083	$ 4,085
Loans Past Due Over 90 Days Still Accruing	1,365	408
One to four family
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual	601	2,345
Loans Past Due Over 90 Days Still Accruing	1,311	0
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual	6,482	1,047
Loans Past Due Over 90 Days Still Accruing	$ 54	408
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual		693
Loans Past Due Over 90 Days Still Accruing		$ 0

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 14,961	$ 3,144
Loans not Past Due	2,882,331	2,674,775
Total loans	2,897,292	2,677,919
30 - 59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,486	982
60 - 89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	27	14
Greater than 90 days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8,448	2,148
Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	2,396,810	2,157,344
Real estate \| Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,400
Loans not Past Due	1,869,364	1,668,236
Total loans	1,875,764	1,668,236
Real estate \| Commercial \| 30 - 59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,400
Real estate \| Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans not Past Due	59,378	30,827
Total loans	59,378	30,827
Real estate \| Multi-family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans not Past Due	393,342	375,611
Total loans	393,342	375,611
Real estate \| One to four family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans not Past Due	68,326	82,670
Total loans	68,326	82,670
Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,556	1,801
Loans not Past Due	437,709	446,818
Total loans	444,265	448,619
Commercial and industrial \| 30 - 59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	18	346
Commercial and industrial \| 60 - 89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2
Commercial and industrial \| Greater than 90 days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,536	1,455
Commercial and industrial \| Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	444,265	448,619
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,005	1,343
Loans not Past Due	54,212	70,613
Total loans	56,217	71,956
Consumer \| 30 - 59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	68	636
Consumer \| 60 - 89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	25	14
Consumer \| Greater than 90 days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,912	693
Consumer \| Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	$ 56,217	$ 71,956

LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructurings) (Details)	3 Months Ended	6 Months Ended		7 Months Ended	12 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2020 USD ($) item loan	Jun. 30, 2019 item	Jul. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Loans modified in troubled debt restructurings	$ 1,393,000	$ 1,393,000			$ 1,441,000
Number of TDR loans during the period	0	0			0
Specific reserves modified as TDRs	$ 65,000	$ 65,000			$ 81,000
Number of contracts financing receivable modifications \| item		0	0
One to four family
Loans and Leases Receivable Disclosure [Line Items]
Loans modified in troubled debt restructurings	1,016,000	$ 1,016,000			1,039,000
COVID 19 - Impact
Loans and Leases Receivable Disclosure [Line Items]
Loans modified in troubled debt restructurings	527,600,000	$ 527,600,000
Number of TDR loans during the period \| loan		300
Number of modified loans returned to prepayment status \| loan				116
Amount of modified loans returned to prepayment status				$ 91,000,000.0
Real estate \| Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans modified in troubled debt restructurings	363,000	$ 363,000			367,000
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans modified in troubled debt restructurings	$ 14,000	$ 14,000			$ 35,000

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Risk Category) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	$ 2,897,292	$ 2,677,919
Commercial Construction and Multifamily Real Estate Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	2,772,749	2,523,293
Commercial Construction and Multifamily Real Estate Loans [Member] \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	2,765,850	2,520,919
Commercial Construction and Multifamily Real Estate Loans [Member] \| Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	363	367
Commercial Construction and Multifamily Real Estate Loans [Member] \| Substandard
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	5,489	960
Commercial Construction and Multifamily Real Estate Loans [Member] \| Doubtful
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	1,047	1,047
Receivables other than one to four family and consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Minimum threshold amount taken as base for credit indicator analysis	500
Real estate
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	2,396,810	2,157,344
Real estate \| Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	1,875,764	1,668,236
Real estate \| Commercial \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	1,875,401	1,667,869
Real estate \| Commercial \| Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	363	367
Real estate \| Construction
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	59,378	30,827
Real estate \| Construction \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	59,378	30,827
Real estate \| Multi-family
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	393,342	375,611
Real estate \| Multi-family \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	393,342	375,611
Real estate \| One to four family
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	68,326	82,670
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	444,265	448,619
Commercial and industrial \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	437,729	446,612
Commercial and industrial \| Substandard
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	5,489	960
Commercial and industrial \| Doubtful
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	1,047	1,047
Commercial and industrial \| Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	444,265	448,619
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	56,217	71,956
Consumer \| Consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans and Leases Receivable, Gross	$ 56,217	$ 71,956

EARNINGS PER SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Basic
Net income per consolidated statements of income	$ 10,811	$ 6,057	$ 16,908	$ 14,588
Less: Earnings allocated to participating securities	(95)	(107)	(164)	(243)
Net income available to common stockholder	$ 10,716	$ 5,950	$ 16,744	$ 14,345
Weighted average common shares outstanding including participating securities	8,294,801	8,320,036	8,299,503	8,310,071
Less: Weighted average participating securities	(73,053)	(146,549)	(80,650)	(138,711)
Weighted average common shares outstanding	8,221,748	8,173,487	8,218,853	8,171,360
Basic earnings per common share (in dollars per share)	$ 1.30	$ 0.73	$ 2.04	$ 1.76
Diluted
Net income allocated to common shareholders	$ 10,716	$ 5,950	$ 16,744	$ 14,345
Weighted average common shares outstanding for basic earnings per common share	8,221,748	8,173,487	8,218,853	8,171,360
Average shares and dilutive potential common shares	8,359,450	8,336,064	8,391,514	8,320,866
Diluted earnings per common share (in dollars per share)	$ 1.28	$ 0.71	$ 2.00	$ 1.72
Stock Option
Diluted
Add: Dilutive effects of assumed exercise of stock options	74,597	126,491	108,905	121,022
Restricted stock
Calculations of basic and diluted earnings per share
Number of antidilutive shares not considered in computing diluted earnings per share	52,197		52,197
Diluted
Dilutive effects of assumed exercise of stock options/vesting of performance based restricted stock	63,105	36,086	63,756	28,484

STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details)	6 Months Ended
	Jun. 30, 2020 $ / shares shares
Number of Options
Outstanding, beginning of period	231,000
Exercised	0
Outstanding, end of period	231,000
Options vested and exercisable at end of period	231,000
Weighted Average Exercise Price
Outstanding, beginning of period \| $ / shares	$ 18.00
Outstanding, end of period \| $ / shares	18.00
Options vested and exercisable at end of period \| $ / shares	$ 18.00
Weighted average remaining contractual life (years)	3 years 10 months 17 days

STOCK COMPENSATION PLAN (Summary of Stock Options Outstanding) (Details)	6 Months Ended
	Jun. 30, 2020 $ / shares shares
$10 - 20
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Average Exercise Prices, Lower Limit	$ 10
Range of Average Exercise Prices, Upper Limit	$ 20
Number of Options Outstanding \| shares	231,000
Weighted Average Remaining Contractual Life	3 years 10 months 17 days
Weighted Average Exercise Price	$ 18.00
Weighted Average Intrinsic Price	14.08
$21 - 30
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Average Exercise Prices, Lower Limit	21
Range of Average Exercise Prices, Upper Limit	$ 30
Number of Options Outstanding \| shares	0
Weighted Average Exercise Price	$ 0
Weighted Average Intrinsic Price	0
$10 - 30
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Average Exercise Prices, Lower Limit	10
Range of Average Exercise Prices, Upper Limit	$ 30
Number of Options Outstanding \| shares	231,000
Weighted Average Remaining Contractual Life	3 years 10 months 17 days
Weighted Average Exercise Price	$ 18.00
Weighted Average Intrinsic Price	$ 14.08

STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of shares, Outstanding, beginning of period		104,838	104,838
Number of shares, Granted	0	60,307	60,307
Number of shares, Forfeited			(20,354)
Number of shares, Vested			(19,541)
Number of shares, Outstanding at end of period	125,250		125,250
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date fair Value, beginning of period		$ 29.86	$ 29.86
Weighted Average Grant Date fair Value, Granted			45.29
Weighted Average Grant Date fair Value, Forfeited			35.87
Weighted Average Grant Date fair Value, Vested			19.39
Weighted Average Grant Date fair Value, at end of period	$ 37.95		$ 37.95
Vesting period			3 years

STOCK COMPENSATION PLAN (Summary of Performance Based Stock Awards) (Details)	6 Months Ended
	Jun. 30, 2020 USD ($) shares
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share payout	90,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share payout	12,000
Performance Restricted Share Units ("Prsus")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period (in years)	3 years
Weighted average service inception date fair value of award shares \| $	$ 4,064,295
Likely aggregate share payout	90,000

STOCK COMPENSATION PLAN (Details) - USD ($)		3 Months Ended			6 Months Ended
STOCK COMPENSATION PLAN (Details) - USD ($)	May 18, 2019	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	May 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding shares		231,000			231,000		231,000
Exercise of stock options (in shares)					0
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested stock options		$ 3,100,000			$ 3,100,000
Compensation cost related to stock awards		$ 484,000		$ 334,000	$ 839,000	$ 564,000
Number of shares, Granted		0	60,307		60,307
Vesting period					3 years
Unrecognized compensation expense recognition period					2 years 2 months 1 day
Fair value of shares vested					$ 744,000
Restricted stock \| Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost related to stock awards		$ 100,000		100,000	$ 200,000	200,000
Number of shares, Granted					38,900
Vesting percentage					33.00%
Service period (in years)					3 years
Vesting period					3 years
Performance Restricted Share Units ("Prsus")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost related to stock awards		358,000		$ 358,000	$ 715,000	715,000
Number of PRSUs awarded					90,000
Directors' fees \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested stock options		600,000			$ 600,000
Unrecognized compensation expense recognition period					1 year 6 months
Equity Incentive Plan 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, shares authorized, maximum								340,000
Equity Incentive Plan 2019 \| Stock Option \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of exercise price to the fair market value					100.00%
Equity Incentive Plan 2019 \| Incentive stock options granted to any 10% stockholder \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of the exercise price to the fair market value of the shares covered by the stock option on the date of grant in the case of an ISO granted to 10% stockholder					110.00%
Equity Incentive Plan 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding shares								468,382
Number of shares expired	628,719
Compensation cost related to stock awards					$ 0	$ 0
Equity Incentive Plan 2009 \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested stock options		$ 0			$ 0		$ 0
Equity Incentive Plan 2009 \| Equity Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, exercise period from the grant date					10 years
Equity Incentive Plan 2009 \| Incentive stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, exercise period from the grant date					5 years

FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 194,979	$ 240,888
Amount of transfers of assets measured on a recurring basis out of Level 1 of the fair value hierarchy into Level 2	0		$ 0
Amount of transfers of assets measured on a recurring basis out of Level 2 of the fair value hierarchy into Level 1	0		$ 0
Fair value assets measured at fair value on a non-recurring basis	0	0
Carrying Amount \| Residential mortgage-backed securities \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	142,183	177,263
Carrying Amount \| Commercial mortgage-backed securities issued by U.S. government sponsored entities \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	22,174	32,472
Carrying Amount \| U.S. Government agency securities \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	25,002	25,207
Carrying Amount \| CRA mutual fund \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	2,301	2,224
Fair Value, Inputs, Level 1 \| CRA mutual fund \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	2,301	2,224
Fair Value, Inputs, Level 2 \| Residential mortgage-backed securities \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	142,183	177,263
Fair Value, Inputs, Level 2 \| Commercial mortgage-backed securities issued by U.S. government sponsored entities \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	22,174	32,472
Fair Value, Inputs, Level 2 \| U.S. Government agency securities \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	25,002	25,207
Fair Value, Inputs, Level 2 \| CRA mutual fund \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	$ 0
Interest Rate Cap [Member] \| Carrying Amount \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	989
Interest Rate Cap [Member] \| Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 989

FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financial assets:
Debt securities available for sale	$ 189,359	$ 234,942
Securities held to maturity	3,406	3,712
Other investments
Other Investments	15,731	21,437
Financial liabilities:
Noninterest-bearing demand deposits	1,526,439	1,090,479
Federal Home Loan Bank of New York advances	104,000	144,000
Carrying Amount
Financial assets:
Cash and due from banks	9,529	8,116
Overnight deposits	813,147	381,104
Debt securities available for sale	189,359	234,942
Securities held to maturity	3,319	3,722
Equity investments	2,301	2,224
Loans, net	2,859,769	2,646,677
Other investments
FRB Stock	7,335	7,317
FHLB Stock	7,398	8,122
SBA Loan Fund		5,000
Disability Fund	500	500
Time deposits at banks	498	498
Interest rate cap derivative	989
Accrued interest receivable	11,148	8,862
Financial liabilities:
Noninterest-bearing demand deposits	1,526,439	1,090,479
Money market and savings deposits	1,769,419	1,589,920
Time deposits	98,881	110,375
Federal Home Loan Bank of New York advances	104,000	144,000
Trust preferred securities payable	20,620	20,620
Subordinated debt, net of issuance cost	24,629	24,601
Accrued interest payable	1,199	1,229
Total Fair Value
Financial assets:
Cash and due from banks	9,529	8,116
Overnight deposits	813,147	381,104
Debt securities available for sale	189,359	234,942
Securities held to maturity	3,406	3,712
Equity investments	2,301	2,224
Loans, net	2,858,854	2,609,233
Other investments
Disability Fund	500	500
Time deposits at banks	498	498
Interest rate cap derivative	989
Accrued interest receivable	11,148	8,862
Financial liabilities:
Noninterest-bearing demand deposits	1,526,439	1,090,479
Money market and savings deposits	1,769,419	1,589,920
Time deposits	100,209	110,800
Federal Home Loan Bank of New York advances	104,384	144,229
Trust preferred securities payable	20,082	20,011
Subordinated debt, net of issuance cost	25,000	25,375
Accrued interest payable	1,199	1,229
Fair Value, Inputs, Level 1
Financial assets:
Cash and due from banks	9,529	8,116
Overnight deposits	813,147	381,104
Equity investments	2,301	2,224
Other investments
Time deposits at banks	498	498
Financial liabilities:
Noninterest-bearing demand deposits	1,526,439	1,090,479
Money market and savings deposits	1,769,419	1,589,920
Accrued interest payable	6	14
Fair Value, Inputs, Level 2
Financial assets:
Debt securities available for sale	189,359	234,942
Securities held to maturity	3,406	3,712
Other investments
Disability Fund	500	500
Interest rate cap derivative	989
Accrued interest receivable	375	544
Financial liabilities:
Money market and savings deposits	0
Time deposits	100,209	110,800
Federal Home Loan Bank of New York advances	104,384	144,229
Subordinated debt, net of issuance cost	25,000	25,375
Accrued interest payable	1,029	1,009
Fair Value, Inputs, Level 3
Financial assets:
Loans, net	2,858,854	2,609,233
Other investments
Accrued interest receivable	10,773	8,318
Financial liabilities:
Money market and savings deposits	0
Trust preferred securities payable	20,082	20,011
Accrued interest payable	$ 164	$ 206

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			$ 1,207
Beginning balance, as adjusted	$ 1,169		1,207			$ 1,207
Unrealized holding gain (loss) arising during the period	(1,428)	$ 1,009	5,110	$ 1,394
Reclassification adjustment for gain included in net income	(2,312)	0	(3,286)	0
Tax effect	1,179	(315)	(577)	(442)
Net of tax	(2,561)	694	1,247	952
Unrealized holding loss arising during the period	(817)		(1,877)
Tax effect	258		592
Net of tax	(559)		(1,285)
Net current period other comprehensive (income) loss	(3,120)	694	(38)	952
Ending balance	1,169		1,169
AOCI (Loss), Net
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	4,289	(147)	1,207	(473)
Beginning balance, as adjusted	1,169	547	1,169	547	$ 4,289	1,207	$ (147)	$ (473)
Net current period other comprehensive (income) loss	(3,120)	694	(38)	952
Ending balance	1,169	547	1,169	547
AOCI (Loss), Net \| ASU 2016-01
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	4,289	(147)	1,207	(405)
Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes					0	0	0	68
Beginning balance, as adjusted	$ 4,289	$ (147)	$ 1,207	$ (405)	$ 4,289	$ 1,207	$ (147)	$ (405)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense	$ (4,953)	$ (2,880)	$ (7,860)	$ (6,657)
Reclassifications out of accumulated other comprehensive (loss) income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gain on sale of available for sale securities	2,312		3,286
Income tax expense	(729)		(1,036)
Total reclassifications, net of income tax	$ 1,583		$ 2,250

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	$ 59,427	$ 64,947
Variable Rate	246,805	193,767
Undrawn lines of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	19,303	17,204
Variable Rate	246,805	193,767
Letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	40,124	47,743
Variable Rate	$ 0	$ 0

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amount of off-balance-sheet financial instruments	$ 59,427	$ 64,947
Maturity of stand by letters of credit and time deposits	one year
Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed interest rate off-balance-sheet financial instruments	3.00%	3.00%
Variable interest rate off-balance-sheet financial instrument	2.00%	3.50%
Commitments term	1 year
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed interest rate off-balance-sheet financial instruments	5.60%	5.60%
Variable interest rate off-balance-sheet financial instrument	11.30%	9.80%
Commitments term	2 years
Letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amount of off-balance-sheet financial instruments	$ 40,124	$ 47,743
Amount of off-balance-sheet financial instruments collateral received	$ 26,800	$ 29,800

REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of non-interest income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Total non-interest income	$ 3,322	$ 2,643	$ 6,648	$ 4,997
Service charges on deposit accounts
Non-interest income	803	908	1,883	1,727
Prepaid third-party debit card incomes
Non-interest income	2,108	1,422	3,729	2,679
Other service charges and fees
Non-interest income	$ 411	$ 313	$ 1,036	$ 591

DERIVATIVES - Derivative position (Details) - Derivatives designated as hedging instruments $ in Thousands	Jun. 30, 2020 USD ($)
Interest rate caps related to customer deposits
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount, derivative asset	$ 300,000
Fair value	989
Other assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount, derivative asset	300,000
Fair value	989
Deposit liability \| Interest rate caps related to customer deposits
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount, derivative liability	$ 300,000

DERIVATIVES - Cash flow hedge accounting (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
Derivatives designated as hedging instruments \| Interest rate caps related to customer deposits \| Cash flow hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Loss Recognized in OCI on Derivative	$ (1,285)