Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 |
Document and Entity Information | |||
Entity Registrant Name | Fox Chase Bancorp Inc | ||
Entity Central Index Key | 1485176 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, Shares Outstanding | 11,732,991 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $189 |
Consolidated_Statements_of_Con
Consolidated Statements of Condition (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $2,763 | $149 |
Interest-earning demand deposits in other banks | 14,450 | 11,798 |
Total cash and cash equivalents | 17,213 | 11,947 |
Investment securities available-for-sale | 8,388 | 10,489 |
Mortgage related securities available-for-sale | 125,649 | 246,068 |
Mortgage related securities held-to-maturity (fair value of $170,854 at December 31, 2014 and $67,491 at December 31, 2013) | 170,172 | 68,397 |
Loans, net of allowance for loan losses of $10,730 at December 31, 2014 and $11,529 at December 31, 2013 | 724,326 | 720,490 |
Federal Home Loan Bank stock, at cost | 6,015 | 9,813 |
Bank-owned life insurance | 15,027 | 14,547 |
Premises and equipment, net | 9,418 | 9,814 |
Assets acquired through foreclosure | 2,814 | 6,252 |
Real estate held for investment | 1,620 | 1,620 |
Accrued interest receivable | 3,147 | 3,308 |
Mortgage servicing rights, net | 111 | 152 |
Deferred tax asset, net | 4,561 | 8,906 |
Other assets | 6,155 | 4,819 |
Total Assets | 1,094,616 | 1,116,622 |
LIABILITIES | ||
Deposits | 711,909 | 673,715 |
Short-term borrowings | 50,000 | 80,500 |
Federal Home Loan Bank advances | 120,000 | 150,000 |
Other borrowed funds | 30,000 | 30,000 |
Advances from borrowers for taxes and insurance | 1,447 | 1,525 |
Accrued interest payable | 311 | 314 |
Accrued expenses and other liabilities | 5,038 | 7,101 |
Total Liabilities | 918,705 | 943,155 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock ($.01 par value; 1,000,000 shares authorized, none issued and outstanding at December 31, 2014 and December 31, 2013) | 0 | 0 |
Common stock ($.01 par value; 60,000,000 shares authorized, 11,802,791 shares outstanding at December 31, 2014 and 12,147,803 shares outstanding at December 31, 2013) | 147 | 146 |
Additional paid-in capital | 139,177 | 137,593 |
Treasury stock, at cost (2,852,572 shares at December 31, 2014 and 2,468,172 shares at December 31, 2013) | -39,698 | -33,436 |
Common stock acquired by benefit plans | -8,056 | -9,272 |
Retained earnings | 84,225 | 82,885 |
Accumulated other comprehensive income (loss), net | 116 | -4,449 |
Total Stockholders’ Equity | 175,911 | 173,467 |
Total Liabilities and Stockholders’ Equity | $1,094,616 | $1,116,622 |
Consolidated_Statements_of_Con1
Consolidated Statements of Condition (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Mortgage related securities held to maturity, fair value | $170,854 | $67,491 |
Loans, allowance for loan losses (in dollars) | $10,730 | $11,529 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 11,802,791 | 12,147,803 |
Common stock, shares outstanding | 11,802,791 | 12,147,803 |
Treasury stock, shares | 2,852,572 | 2,468,172 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
INTEREST INCOME | |||
Interest and fees on loans | $32,700,000 | $32,650,000 | $33,878,000 |
Interest on mortgage related securities | 6,859,000 | 7,159,000 | 7,606,000 |
Interest and dividends on investment securities | |||
Interest and dividends on investment securities | 563,000 | 318,000 | 342,000 |
Other interest income | 7,000 | 2,000 | 8,000 |
Total Interest Income | 40,129,000 | 40,129,000 | 41,834,000 |
INTEREST EXPENSE | |||
Deposits | 3,216,000 | 4,344,000 | 6,347,000 |
Short-term borrowings | 127,000 | 130,000 | 38,000 |
Federal Home Loan Bank advances | 2,288,000 | 2,188,000 | 2,383,000 |
Other borrowed funds | 1,004,000 | 1,007,000 | 1,349,000 |
Total Interest Expense | 6,635,000 | 7,669,000 | 10,117,000 |
Net Interest Income | 33,494,000 | 32,460,000 | 31,717,000 |
Provision for loan losses | 1,943,000 | 982,000 | 3,478,000 |
Net Interest Income after Provision for Loan Losses | 31,551,000 | 31,478,000 | 28,239,000 |
NONINTEREST INCOME | |||
Service charges and other fee income | 1,604,000 | 1,694,000 | 1,597,000 |
Net (loss) gain on sale of assets acquired through foreclosure | -68,000 | 484,000 | 135,000 |
Income on bank-owned life insurance | 480,000 | 470,000 | 471,000 |
Equity in earnings of affiliate | 172,000 | 445,000 | 690,000 |
Other | 105,000 | 165,000 | 130,000 |
Less: Portion of loss recognized in other comprehensive income (before taxes) | -60,000 | 0 | 0 |
Net gains on sale of investment securities (includes $0, $532 and $3,292 for the years ended December 31, 2014, 2013 and 2012, respectively, of accumulated other comprehensive income reclassifications for unrealized holdings gains) | 0 | 532,000 | 3,292,000 |
Net investment securities gains | 0 | 532,000 | 3,292,000 |
Total Noninterest Income | 2,293,000 | 3,790,000 | 6,315,000 |
NONINTEREST EXPENSE | |||
Salaries, benefits and other compensation | 14,380,000 | 14,338,000 | 13,540,000 |
Occupancy expense | 1,709,000 | 1,689,000 | 1,702,000 |
Furniture and equipment expense | 390,000 | 469,000 | 537,000 |
Data processing costs | 1,542,000 | 1,537,000 | 1,797,000 |
Professional fees | 1,417,000 | 1,691,000 | 1,706,000 |
Marketing expense | 302,000 | 248,000 | 270,000 |
FDIC premiums | 571,000 | 709,000 | 773,000 |
Assets acquired through foreclosure expense | 420,000 | 5,201,000 | 2,143,000 |
Loss on extinguishment of debt | 0 | 0 | 3,018,000 |
Other | 1,500,000 | 1,589,000 | 1,688,000 |
Total Noninterest Expense | 22,231,000 | 27,471,000 | 27,174,000 |
Income Before Income Taxes | 11,613,000 | 7,797,000 | 7,380,000 |
Income tax provision (includes $0, $186 and $1,174 for the years ended December 31, 2014, 2013 and 2012, respectively, of income tax expense from reclassification items) | 3,418,000 | 2,263,000 | 2,318,000 |
Net Income | $8,195,000 | $5,534,000 | $5,062,000 |
Earnings per share: | |||
Basic (in dollars per share) | $0.73 | $0.49 | $0.44 |
Diluted (in dollars per share) | $0.71 | $0.48 | $0.43 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Accumulated other comprehensive income reclassification for unrealized holdings gains | $0 | $532 | $3,292 |
Income tax expense from reclassification items | $0 | $186 | $1,174 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $8,195 | $5,534 | $5,062 |
Other comprehensive income (loss): | |||
Unrealized holding gains (losses) on securities available-for-sale | 6,986 | -13,343 | 98 |
Tax Effect | -2,459 | 4,700 | -7 |
Net of Tax Amount | 4,527 | -8,643 | 91 |
Accretion of unrealized loss on securities reclassified to held-to-maturity | 60 | 0 | 0 |
Tax Effect | -22 | 0 | 0 |
Net of Tax Amount | 38 | 0 | 0 |
Reclassification adjustments for net investment securities gains included in net income | 0 | -532 | -3,379 |
Tax Effect | 0 | 186 | 1,208 |
Net of Tax Amount | 0 | -346 | -2,171 |
Reclassification adjustment for loss included in net income for other-than-temporary impaired investments sold, net | 0 | 0 | 87 |
Tax Effect | 0 | 0 | -34 |
Net of Tax Amount | 0 | 0 | 53 |
Other comprehensive income (loss) | 4,565 | -8,989 | -2,027 |
Comprehensive income (loss) | $12,760 | ($3,455) | $3,035 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock | Additional Paid in Capital | Treasury Stock | Common Stock Acquired by Benefit Plans | Retained Earnings | Accumulated Other Comprehensive Income, net |
In Thousands, unless otherwise specified | |||||||
BALANCE - beginning of period at Dec. 31, 2011 | $188,192 | $146 | $134,871 | ($19,822) | ($11,541) | $77,971 | $6,567 |
Increase (Decrease) in Stockholders' Equity | |||||||
Purchase of treasury stock | -9,911 | 0 | 0 | -9,911 | 0 | 0 | 0 |
Stock based compensation expense | 1,042 | 0 | 1,042 | 0 | 0 | 0 | 0 |
Unallocated ESOP shares committed to employees | 921 | 0 | 297 | 0 | 624 | 0 | 0 |
Issuance of stock for vested equity awards | 0 | 0 | -646 | 0 | 689 | -43 | 0 |
Common stock issued for exercise of vested stock options | 480 | 0 | 480 | 0 | 0 | 0 | 0 |
Tax benefit from exercise of stock options and vesting of restricted stock | 88 | 0 | 88 | 0 | 0 | 0 | 0 |
Dividends paid | -2,382 | 0 | 0 | 0 | 0 | -2,382 | 0 |
Net income | 5,062 | 0 | 0 | 0 | 0 | 5,062 | 0 |
Other comprehensive income (loss) | -2,027 | 0 | 0 | 0 | 0 | 0 | -2,027 |
BALANCE - end of period at Dec. 31, 2012 | 181,465 | 146 | 136,132 | -29,733 | -10,228 | 80,608 | 4,540 |
Increase (Decrease) in Stockholders' Equity | |||||||
Purchase of treasury stock | -3,703 | 0 | 0 | -3,703 | 0 | 0 | 0 |
Stock based compensation expense | 1,124 | 0 | 1,124 | 0 | 0 | 0 | 0 |
Unallocated ESOP shares committed to employees | 1,114 | 0 | 490 | 0 | 624 | 0 | 0 |
Issuance of stock for vested equity awards | 0 | 0 | -318 | 0 | 332 | -14 | 0 |
Common stock issued for exercise of vested stock options | 106 | 0 | 106 | 0 | 0 | 0 | 0 |
Tax benefit from exercise of stock options and vesting of restricted stock | 59 | 0 | 59 | 0 | 0 | 0 | 0 |
Dividends paid | -3,243 | 0 | 0 | 0 | 0 | -3,243 | 0 |
Net income | 5,534 | 0 | 0 | 0 | 0 | 5,534 | 0 |
Other comprehensive income (loss) | -8,989 | 0 | 0 | 0 | 0 | 0 | -8,989 |
BALANCE - end of period at Dec. 31, 2013 | 173,467 | 146 | 137,593 | -33,436 | -9,272 | 82,885 | -4,449 |
Increase (Decrease) in Stockholders' Equity | |||||||
Purchase of treasury stock | -6,262 | 0 | 0 | -6,262 | 0 | 0 | 0 |
Stock based compensation expense | 1,249 | 0 | 1,249 | 0 | 0 | 0 | 0 |
Unallocated ESOP shares committed to employees | 1,089 | 0 | 465 | 0 | 624 | 0 | 0 |
Issuance of stock for vested equity awards | 0 | 0 | -654 | 0 | 592 | 62 | 0 |
Common stock issued for exercise of vested stock options | 439 | 1 | 438 | 0 | 0 | 0 | 0 |
Tax benefit from exercise of stock options and vesting of restricted stock | 86 | 0 | 86 | 0 | 0 | 0 | 0 |
Dividends paid | -6,917 | 0 | 0 | 0 | 0 | -6,917 | 0 |
Net income | 8,195 | 0 | 0 | 0 | 0 | 8,195 | 0 |
Other comprehensive income (loss) | 4,565 | 0 | 0 | 0 | 0 | 0 | 4,565 |
BALANCE - end of period at Dec. 31, 2014 | $175,911 | $147 | $139,177 | ($39,698) | ($8,056) | $84,225 | $116 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in dollars per share) | $0.60 | $0.28 | $0.20 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows From Operating Activities | |||
Net income | $8,195 | $5,534 | $5,062 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 1,943 | 982 | 3,478 |
Valuation adjustment for assets acquired through foreclosure | 305 | 5,017 | 1,911 |
Depreciation | 698 | 783 | 822 |
Net amortization of securities premiums and discounts | 1,884 | 2,596 | 2,898 |
Proceeds from the sale of loans held for sale | 0 | 3,157 | 0 |
Benefit for deferred income taxes | 1,864 | -1,067 | -90 |
Stock compensation from benefit plans | 2,338 | 2,238 | 1,963 |
Net loss (gain) on sale of assets acquired through foreclosure | 68 | -484 | -135 |
Net gains on sales of investment securities | 0 | -532 | -3,292 |
Income on bank-owned life insurance | -480 | -470 | -471 |
Excess tax benefit from exercise of stock options and vesting of restricted stock | -86 | -59 | -88 |
Decrease in mortgage servicing rights, net | 41 | 18 | 146 |
(Increase) decrease in accrued interest receivable and other assets | -1,281 | -381 | 598 |
(Decrease) increase in accrued interest payable, accrued expenses and other liabilities | -2,066 | 147 | 4,793 |
Net Cash Provided by Operating Activities | 13,423 | 17,479 | 17,595 |
Cash Flows from Investing Activities | |||
Payments to Acquire Interest in Subsidiaries and Affiliates | 225 | 360 | 180 |
Investment securities - available-for-sale: | |||
Purchases | 0 | 0 | -5,269 |
Proceeds from sales | 0 | 0 | 6,157 |
Proceeds from maturities, calls and principal repayments | 2,000 | 2,000 | 9,866 |
Mortgage related securities – available-for-sale: | |||
Purchases | -2,830 | -49,821 | -217,894 |
Proceeds from sales | 0 | 9,517 | 85,686 |
Proceeds from maturities, calls and principal repayments | 32,155 | 62,467 | 71,739 |
Mortgage related securities – held-to-maturity: | |||
Purchases | -20,630 | -51,420 | 0 |
Proceeds from maturities, calls and principal repayments | 15,180 | 10,992 | 12,189 |
Net decrease (increase) in loans | 26,686 | -4,217 | -3,507 |
Purchases of loans and loan participations | -34,372 | -40,877 | -22,350 |
Net decrease (increase) in Federal Home Loan Bank stock | 3,798 | -1,716 | -23 |
Purchases of premises and equipment | -302 | -171 | -833 |
Additions to assets acquired through foreclosure | -25 | -1,180 | -470 |
Proceeds from sales and payments on assets acquired through foreclosure | 4,996 | 4,093 | 1,663 |
Net Cash Provided by (Used in) Investing Activities | 26,881 | -59,973 | -62,866 |
Cash Flows from Financing Activities | |||
Net increase (decrease) in deposits | 38,194 | -13,694 | 10,815 |
Decrease in advances from borrowers for taxes and insurance | -78 | -174 | -37 |
Principal payments on other borrowed funds | 0 | 0 | -20,000 |
Proceeds from Federal Home Loan Bank advances | 10,000 | 40,000 | 60,000 |
Principal payments on Federal Home Loan Bank advances | -40,000 | 0 | -38,278 |
Net (decrease) increase in short-term borrowings | -30,500 | 10,000 | 62,000 |
Excess tax benefit from exercise of stock options and vesting of restricted stock | 86 | 59 | 88 |
Common stock issued for exercise of stock options | 439 | 106 | 480 |
Purchase of treasury stock | -6,262 | -3,703 | -9,911 |
Cash dividends paid | -6,917 | -3,243 | -2,382 |
Net Cash (Used in) Provided by Financing Activities | -35,038 | 29,351 | 62,775 |
Net Increase (Decrease) in Cash and Cash Equivalents | 5,266 | -13,143 | 17,504 |
Cash and Cash Equivalents – Beginning | 11,947 | 25,090 | 7,586 |
Cash and Cash Equivalents – Ending | 17,213 | 11,947 | 25,090 |
Supplemental Disclosure of Cash Flow Information | |||
Interest paid | 6,638 | 7,685 | 10,205 |
Income taxes paid | 1,889 | 2,900 | 2,438 |
Securities Transferred From Available For Sale To Held To Maturity | 96,868 | 0 | 0 |
Transfers of loans to assets acquired through foreclosure | 1,906 | 5,174 | 9,070 |
Transfer of loans to loans held for sale | 0 | 3,157 | 0 |
Net charge-offs | $2,742 | $623 | $4,383 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Business | ||||||||||||||
Fox Chase Bancorp, Inc. (the "Bancorp") is a Maryland corporation. The Bancorp’s primary business is holding the common stock of Fox Chase Bank (the "Bank") and making two loans to the Fox Chase Bank Employee Stock Ownership Plan ("ESOP"). The Bancorp is authorized to pursue other business activities permissible by laws and regulations for bank holding companies. | ||||||||||||||
The Bancorp is a bank holding company and is regulated by the Board of Governors of the Federal Reserve System. The Bank is a Pennsylvania state-chartered savings bank and is regulated by the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation (the "FDIC"). | ||||||||||||||
The Bancorp and the Bank (collectively referred to as the "Company" or the "Corporation") provide a wide variety of financial products and services to individuals and businesses through the Bank’s ten branches in Philadelphia, Richboro, Willow Grove, Warminster, Lahaska, Hatboro, and West Chester, Pennsylvania, and Ocean City, Marmora and Egg Harbor Township, New Jersey. The operations of the Company are managed as a single business segment. The Bank also owns approximately 45% of Philadelphia Mortgage Advisors ("PMA"), a mortgage banker located in Plymouth Meeting, Pennsylvania and Ocean City, New Jersey. | ||||||||||||||
Principles of Consolidation and Presentation | ||||||||||||||
The consolidated financial statements include the accounts of the Bancorp and the Bank. The Bank’s operations include the accounts of its wholly owned subsidiaries, Fox Chase Financial, Inc., Fox Chase Service Corporation, 104 S. Oakland Ave., LLC and Davisville Associates, LLC. Fox Chase Financial, Inc. is a Delaware-chartered investment holding company and its sole purpose is to manage and hold investment securities. Fox Chase Service Corporation is a Pennsylvania-chartered company and its purpose is to facilitate the Bank’s investment in PMA. 104 S. Oakland Ave., LLC is a New Jersey-chartered limited liability company formed to secure, manage and hold foreclosed real estate. Davisville Associates, LLC is a Pennsylvania-chartered limited liability company formed to secure, manage and hold foreclosed real estate. All material inter-company transactions and balances have been eliminated in consolidation. Prior period amounts are reclassified, when necessary, to conform with the current year’s presentation. | ||||||||||||||
The Company follows accounting principles and reporting practices that are in compliance with U.S. generally accepted accounting principles ("GAAP"). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation and realizability of deferred tax assets, the evaluation of other-than-temporary impairment and the valuation of investment securities and assets acquired through foreclosure. | ||||||||||||||
Risk and Uncertainties | ||||||||||||||
In the normal course of its business, the Company encounters two significant types of risk: economic risk and regulatory risk. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on a different basis, from its interest-earning assets. The Company's primary credit risk is the risk of defaults in the Company's loan portfolio that result from borrowers' inability or unwillingness to make contractually required payments. The Company's lending activities are concentrated in Southeastern Pennsylvania and Southern New Jersey. The ability of the Company's borrowers to repay amounts owed is dependent on several factors, including the economic conditions in the borrowers' geographic regions and the borrowers' financial conditions. The Company also has credit risk related to the risk of defaults in its investment securities portfolio. The ability of the Company to realize the full value of its investment securities upon sale or maturity depends on several factors, including the cash flows, credit enhancements and underlying structures of the individual investment securities. Market risk reflects changes in the value of the collateral underlying loans, the valuation of assets acquired through foreclosure, and the valuation of securities, mortgage servicing assets and other investments. | ||||||||||||||
The Company is subject to the regulations of certain federal and state banking agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by regulatory agencies which may subject it to further changes with respect to asset valuations, amounts of required loan loss allowances and operating restrictions resulting from the regulators’ judgments based on information available to them at the time of their examinations. | ||||||||||||||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks and interest-earning demand deposits in other banks. At times, such balances exceed the FDIC limits for insurance coverage. | ||||||||||||||
The Company accounts for cash accounts that are in a net overdraft position as a liability and reports changes in book overdraft positions in operating cash flows. | ||||||||||||||
Investment and Mortgage Related Securities | ||||||||||||||
The Company accounts for its investment securities in accordance with standards that require, among other things, that debt and equity securities are classified into three categories and accounted for as follows: | ||||||||||||||
• | Debt securities with the positive intention to hold to maturity are classified as "held-to-maturity" and reported at amortized cost. | |||||||||||||
• | Debt and equity securities purchased with the intention of selling them in the near future are classified as "trading securities" and are reported at fair value, with unrealized gains and losses included in earnings. As of the balance sheet dates, the Company did not have any trading securities. | |||||||||||||
• | Debt and equity securities not classified in either of the above categories are classified as "available-for-sale securities" and reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, as increases or decreases in accumulated other comprehensive income (loss), a separate component of stockholders' equity. Securities classified as available-for-sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including movement in interest rates, changes in the maturity or mix of the Company's assets and liabilities, liquidity needs, regulatory capital considerations and other factors. | |||||||||||||
Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. | ||||||||||||||
The Company records other-than-temporary impairment charges, through earnings, if they have the intent to sell, or will more likely than not be required to sell, an impaired debt security before a recovery of its amortized cost basis. In addition, the Company records other-than-temporary impairment charges through earnings for the amount of credit losses, regardless of the intent or requirement to sell. Credit loss is measured as the difference between the present value of an impaired debt security's cash flows and its amortized cost basis. Non-credit related write-downs to fair value are recorded as decreases to accumulated other comprehensive income as long as the Company has no intent or requirement to sell an impaired security before a recovery of amortized cost basis. | ||||||||||||||
Purchase premiums and discounts are recognized in interest income using the interest method over the expected life for mortgage related securities and the contractual life for all other securities. Because of volatility of the financial markets in which securities are traded, there is the risk that any future fair value could be significantly less than that recorded or disclosed in the accompanying financial statements. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | ||||||||||||||
Federal Home Loan Bank Stock | ||||||||||||||
Federal Home Loan Bank ("FHLB") stock is an equity interest in the FHLB of Pittsburgh that can be sold to the issuer or to other member banks at its par value. Because ownership is restricted, the fair value is not readily determinable. As such, FHLB stock is recorded at cost and evaluated for other-than-temporary impairment. The Corporation determined there was no other-than-temporary impairment of its investment in FHLB stock at December 31, 2014 and 2013. | ||||||||||||||
Loans, Loan Origination Fees and Uncollected Interest | ||||||||||||||
Loans are recorded at cost, net of unearned discounts, deferred fees and allowances. Discounts or premiums on purchased loans are amortized using the interest method over the remaining contractual life of the purchased loans, adjusted for actual prepayments. Loan origination fees and certain direct origination costs are deferred and amortized using the interest method over the contractual life as an adjustment to yield on the loans. Interest income is accrued on the unpaid principal balance. From time-to-time, the Company sells certain loans for liquidity purposes or to manage interest rate risk. | ||||||||||||||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||||
The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan that is more than 90 days past due may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest income is reversed and the amortization of net deferred loan fees is suspended. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management's judgment as to the ultimate collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. | ||||||||||||||
Allowance for Loan Losses | ||||||||||||||
The allowance for loan losses is adjusted through provisions for loan losses charged against or credited to income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. | ||||||||||||||
The allowance for loan losses is maintained at a level representing management's best estimate of known risks and inherent losses in the portfolio, based upon management's evaluation of the portfolio's collectability. Our methodology for assessing the appropriateness of the allowance for loan losses consists of an allowance on impaired loans and a general valuation allowance on the remainder of the portfolio. Although we determine the amount of each element of the allowance separately, the entire allowance for loan losses is available for losses on the entire portfolio. | ||||||||||||||
Loans are deemed impaired when, based on current information and events, it is probable that the Company will be unable to collect all proceeds due according to the contractual terms of the loan agreement or when a loan is classified as a troubled debt restructuring. Factors considered by management in determining impairment include payment status, borrower cash flow, collateral value and the probability of collecting scheduled principal and interest payments when due. Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan's original effective interest rate, the loan's obtainable market price or the fair value of the collateral less costs to sell if the loan is collateral dependent. The Company establishes an allowance for loan loss in the amount of the difference between fair value of the impaired loan and the loan's carrying amount. | ||||||||||||||
We establish a general allowance for loans that are not considered impaired to recognize the inherent losses associated with lending activities. This general valuation allowance is determined by segmenting the loan portfolio by loan segments (described below) and assigning reserve factors to each category. The reserve factors are calculated using the Company's historical losses and loss emergence periods, and are adjusted for significant factors that, in management's judgment, affect the collectability of the portfolio as of the evaluation date. These significant factors include: | ||||||||||||||
• | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses. | |||||||||||||
• | Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. | |||||||||||||
• | Changes in the nature and volume of the portfolio and in the terms of loans. | |||||||||||||
• | Changes in the experience, ability, and depth of lending management and other relevant staff. | |||||||||||||
• | Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. | |||||||||||||
• | Changes in the quality of the institution’s loan review system. | |||||||||||||
• | Changes in the value of underlying collateral for collateral-dependent loans. | |||||||||||||
• | The existence and effect of any concentrations of credit, and changes in the level of such concentrations. | |||||||||||||
• | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. | |||||||||||||
These reserve factors are subject to ongoing evaluation to ensure their relevance as compared to historical losses in the current environment. We perform this systematic analysis of the allowance on a quarterly basis. These criteria are analyzed and the allowance is developed and maintained at the segment level. | ||||||||||||||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||||
Additional risk is associated with the analysis of the allowance for loan losses as such evaluations are highly subjective, and future adjustments to the allowance may be necessary if conditions differ substantially from the assumptions used in making the evaluations. In addition, various regulatory agencies periodically review the Company's allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance, based on their judgments at the time of their examination. | ||||||||||||||
The loan segments utilized by management to develop the allowance for loan losses are (1) one- to four-family real estate, (2) multi-family and commercial real estate, (3) construction, (4) consumer and (5) commercial and industrial loans. | ||||||||||||||
One- to four-family real estate lending risks generally include the borrower's ability to make repayment from his or her employment or other income, and if the borrower defaults, the ability to obtain repayment from sale of the underlying collateral securing the loan. Risk associated with one- to four-family lending would be higher during a period of increased unemployment or reduced real estate value. | ||||||||||||||
Multi-family and commercial real estate lending risks generally relate to the borrower's creditworthiness and the feasibility and cash flow potential of the underlying project. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to adverse conditions in the real estate market or the economy. | ||||||||||||||
Construction lending is generally considered to have a higher degree of lending risk than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property's value at completion of construction, the estimated cost (including interest) of construction and the ability of the project to be sold or refinanced upon completion. | ||||||||||||||
Commercial and industrial loans are typically made on the basis of the borrower's ability to make repayment from the cash flows of the borrower's underlying business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. Further, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value. | ||||||||||||||
Consumer lending includes unsecured lending or loans secured by assets that depreciate rapidly. In such cases, repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and the remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower's continuing financial stability. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. | ||||||||||||||
Troubled Debt Restructurings | ||||||||||||||
Loans are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring ("TDR") generally involve a reduction in interest rate, extension of a loan's stated maturity date, temporary deferral of payments, principal forgiveness, or granting credit to a borrower who is unable to obtain credit from another financial institution. Accrual of interest continues upon modification if the borrower has demonstrated a history of making payment as contractually due and has provided evidence which supports the borrower's ability to make payments. The accrual of interest income on accruing troubled debt restructurings is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about continued collectability of principal or interest, even though the loan is currently performing. Troubled debt restructurings which are subsequently reported as non-accrual remain as such until they demonstrate consistent payment performance for a minimum period of six months. TDRs that have performed in accordance with the new terms for six consecutive months, are in a current status, reflect a market rate of interest at the time of the restructuring and cross over a year end are considered cured and are no longer classified as TDRs. All loans classified as troubled debt restructurings are considered impaired. | ||||||||||||||
Bank-Owned Life Insurance | ||||||||||||||
The Company has invested in bank-owned life insurance ("BOLI"). BOLI involves the purchasing of life insurance by the Company on a chosen group of employees and directors. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies is included in noninterest income in the consolidated statements of operations. | ||||||||||||||
Premises and Equipment | ||||||||||||||
Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the assets' estimated useful lives or, for leasehold improvements, over the life of the related lease if less than the estimated useful life of the asset. The estimated useful life is generally 10-39 years for buildings and 1-7 years for furniture and equipment. When | ||||||||||||||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||||
assets are retired, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts. The cost of maintenance and repairs is charged to expense when incurred and renewals and improvements are capitalized. Rental concessions on leased properties are recognized over the life of the lease. | ||||||||||||||
Assets Acquired through Foreclosure | ||||||||||||||
Assets acquired through foreclosure consists of other real estate owned and financial assets acquired from debtors. These assets are obtained through foreclosure, by a deed-in-lieu of foreclosure, in-substance foreclosure or in exchange for satisfaction of debt. | ||||||||||||||
Other real estate owned is initially recorded at fair value less costs to sell. In periods subsequent to acquisition, each real estate asset is carried at the lower of the fair value of the asset, less estimated selling costs, or the amount at which the asset was initially recorded. Costs related to the development or improvement of an acquired property are capitalized. Holding costs and declines in carrying value after acquisition are recorded as assets acquired through foreclosure expense in the consolidated statements of operations. | ||||||||||||||
Financial assets acquired from debtors are carried at fair value under the fair value option in accordance with FASB ASC 825 "Financial Instruments." Increases or decreases in fair value after acquisition are recorded as assets acquired through foreclosure expense in the consolidated statements of operations. | ||||||||||||||
Real Estate Held for Investment | ||||||||||||||
Real estate held for investment is carried at cost and is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. As of December 31, 2014 and December 31, 2013, real estate held for investment represented undeveloped land located in Absecon, New Jersey. The property was acquired by the Company in 2003 to expand the Company's retail branch network in southern New Jersey. | ||||||||||||||
In accordance with regulatory guidelines, because this real estate held for investment was not sold or placed in service by June 2011 (eight years from acquisition), for regulatory reporting purposes, the full amount of this asset is recorded as a reduction of risk-based capital at December 31, 2014 and 2013. | ||||||||||||||
Mortgage Servicing Rights | ||||||||||||||
Upon the sale of a residential mortgage loan where the Company retains servicing rights, a mortgage servicing right is recorded. GAAP requires that mortgage servicing rights on these loans be amortized into income over the estimated life of the loans sold using the interest method. At each reporting period, such assets are subject to an impairment test. The impairment test stratifies servicing assets based on predominant risk characteristics of the underlying financial assets. The Company has stratified its mortgage servicing assets by date of sale, which approximates date of origination. | ||||||||||||||
In conjunction with the impairment test, the Company records a valuation allowance when the fair value of the stratified servicing asset is less than amortized cost. Subsequent changes in the valuation of the assets are recorded as either an increase or a reduction of the valuation allowance, however, if the fair value exceeds amortized cost, such excess will not be recognized. As of December 31, 2014, the gross value of the servicing rights was $210,000, the valuation allowance was $99,000, providing for a net balance of $111,000. | ||||||||||||||
Transfers of Financial Assets | ||||||||||||||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. | ||||||||||||||
Income Taxes | ||||||||||||||
The Company accounts for income taxes under the asset/liability method. Deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company files a consolidated federal income tax return and its subsidiaries file individual state income tax returns. | ||||||||||||||
The Company recognizes a tax position if it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If the tax position meets the more-likely-than-not recognition threshold, the position is measured to determine the amount of the benefit to recognize and is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. The Company has no | ||||||||||||||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||||
material tax exposure matters that were accrued as of December 31, 2014 and 2013. The Company's policy is to account for interest and penalties as components of income tax expense. | ||||||||||||||
Equity Method Investments | ||||||||||||||
Under the equity method, the Company recognizes its portion of net income of unconsolidated affiliates, net of eliminations, in equity in earnings of affiliate on the consolidated statements of operations. Equity method investments are included in other assets on the consolidated statements of condition. | ||||||||||||||
Marketing and Advertising | ||||||||||||||
The Company expenses marketing and advertising costs as incurred. | ||||||||||||||
Off-Balance Sheet Financial Instruments | ||||||||||||||
In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the balance sheet when they are funded. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
Certain of the Company's financial instruments are carried at fair value. Generally, fair value is the price that a willing buyer and a willing seller would agree upon in an other than a distressed sale situation. Because of the uncertainties inherent in determining fair value, fair value estimates may not be precise. Many of the fair value estimates are based on highly subjective judgments and assumptions made about market information and economic conditions. See Note 13 for a detailed discussion of fair value measurements and methodology used to determine fair value. | ||||||||||||||
Employee Stock Ownership Plan | ||||||||||||||
The ESOP borrowed funds from the Bancorp to purchase shares of common stock of the Bancorp. The funds borrowed by the ESOP from Bancorp to purchase shares of common stock in 2006 are being repaid from the Bank's contributions over a period of 15 years from 2006 to 2020. The funds borrowed by the ESOP from the Bancorp to purchase shares of common stock in 2010 are being repaid from the Bank's contributions over a period of 14.5 years from 2010 to 2024. The Bancorp's common stock not yet allocated to participants is recorded as a reduction of stockholders' equity at cost. The Bancorp's loans to the ESOP and the ESOP's note payables are not reflected in the consolidated statements of condition. Compensation expense for the ESOP is based on the average market price of the Company's stock and is recognized as shares are committed to be released to participants. The notes receivable and related interest income are included in the parent company financial statements presented in Note 16. | ||||||||||||||
For purposes of computing basic and diluted earnings per share, ESOP shares that have been committed to be released are considered outstanding. ESOP shares that have not been committed to be released are not considered outstanding. | ||||||||||||||
Stock Based Compensation | ||||||||||||||
The Company grants equity awards to employees, consisting of stock options, performance awards and restricted stock, under its Long-Term Incentive Plan, its 2007 Equity Incentive Plan and its 2011 Equity Incentive Plan. The Company classifies share-based compensation for employees and outside directors within "Salaries, benefits and other compensation" in the consolidated statements of operations to correspond with the same line item as compensation paid. Additionally, the Company reports (1) the expense associated with the grants as an adjustment to operating cash flows and (2) any benefits of realized tax deductions in excess of previously recognized tax benefits on compensation expense as a financing cash flow. Excess tax benefits totaled $86,000, $59,000 and $88,000 in 2014, 2013 and 2012, respectively. | ||||||||||||||
Stock options vest over a five-year service period and expire ten years after grant date. The Company recognizes compensation expense for the fair values of stock options using the straight-line method over the requisite service period for the entire award. | ||||||||||||||
Non-performance based restricted shares vest over a five-year service period. The Company recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award. | ||||||||||||||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||||||||||||||
Performance-based restricted shares vest over a five-year period based on service and achievement of performance metrics. The performance metrics to be evaluated during the performance period are (1) return on assets compared to peer group and (2) earnings per share growth rate compared to peer group. On the third anniversary of the grant date, the Company's level of performance relative to the performance metrics are evaluated and, if such performance metrics have been achieved, an amount of shares that will vest at that time and over the following two years will be determined. The number of shares eligible to vest can range from 0% to 150% of the shares identified on grant date (the "target shares"). Of the shares that will vest, 50% of the shares vest on the third anniversary of the date of grant and 25% vest on each of the fourth and fifth anniversaries of the date of grant. | ||||||||||||||
Per Share Information | ||||||||||||||
Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted-average common shares outstanding during the period. Diluted earnings per share is calculated using the treasury stock method of accounting and takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Unallocated shares in the ESOP and shares purchased to fund the Bancorp’s equity incentive plans are not included in either basic or diluted earnings per share. | ||||||||||||||
Earnings per share ("EPS"), basic and diluted, were $0.73 and $0.71, respectively, for the year ended December 31, 2014, $0.49 and $0.48, respectively, for the year ended December 31, 2013 and $0.44 and $0.43, respectively, for the year ended December 31, 2012. | ||||||||||||||
The following table presents the reconciliation of the numerators and denominators of the basic and diluted EPS computations. | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Net income | $ | 8,195,000 | $ | 5,534,000 | $ | 5,062,000 | ||||||||
Weighted-average common shares outstanding (1) | 12,054,779 | 12,199,774 | 12,624,068 | |||||||||||
Average common stock acquired by stock benefit plans: | ||||||||||||||
ESOP shares unallocated | (521,371 | ) | (586,424 | ) | (651,538 | ) | ||||||||
Shares purchased by trust | (283,366 | ) | (324,207 | ) | (372,653 | ) | ||||||||
Weighted-average common shares used to calculate basic earnings per share | 11,250,042 | 11,289,143 | 11,599,877 | |||||||||||
Dilutive effect of: | ||||||||||||||
Restricted stock awards | 51,810 | 42,582 | 29,653 | |||||||||||
Stock option awards | 197,209 | 198,429 | 117,731 | |||||||||||
Weighted-average common shares used to calculate diluted earnings per share | 11,499,061 | 11,530,154 | 11,747,261 | |||||||||||
Earnings per share-basic | $ | 0.73 | $ | 0.49 | $ | 0.44 | ||||||||
Earnings per share-diluted | $ | 0.71 | $ | 0.48 | $ | 0.43 | ||||||||
Outstanding common stock equivalents having no dilutive effect | 1,040,123 | 1,108,329 | 860,842 | |||||||||||
(1) Excludes treasury stock. |
INVESTMENT_AND_MORTGAGE_RELATE
INVESTMENT AND MORTGAGE RELATED SECURITIES | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
INVESTMENT AND MORTGAGE RELATED SECURITIES | INVESTMENT AND MORTGAGE RELATED SECURITIES | |||||||||||||||||||||||
The amortized cost and fair value of securities available-for-sale and held-to-maturity as of December 31, 2014 and 2013 are summarized as follows: | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 300 | $ | 2 | $ | — | $ | 302 | ||||||||||||||||
Corporate securities | 8,053 | 33 | — | 8,086 | ||||||||||||||||||||
8,353 | 35 | — | 8,388 | |||||||||||||||||||||
Private label commercial mortgage related securities | — | — | — | — | ||||||||||||||||||||
Agency residential mortgage related securities | 123,929 | 2,392 | (672 | ) | 125,649 | |||||||||||||||||||
Total mortgage related securities | 123,929 | 2,392 | (672 | ) | 125,649 | |||||||||||||||||||
Total available-for-sale securities | $ | 132,282 | $ | 2,427 | $ | (672 | ) | $ | 134,037 | |||||||||||||||
Held-to-Maturity Securities: | ||||||||||||||||||||||||
Private label residential mortgage related securities | $ | 2,979 | $ | 6 | $ | — | $ | 2,985 | ||||||||||||||||
Agency residential mortgage related securities | 167,193 | 1,239 | (563 | ) | 167,869 | |||||||||||||||||||
Total mortgage related securities | 170,172 | 1,245 | (563 | ) | 170,854 | |||||||||||||||||||
Total held-to-maturity securities | $ | 170,172 | $ | 1,245 | $ | (563 | ) | $ | 170,854 | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 300 | $ | 8 | $ | — | $ | 308 | ||||||||||||||||
Corporate securities | 10,145 | 54 | (18 | ) | 10,181 | |||||||||||||||||||
10,445 | 62 | (18 | ) | 10,489 | ||||||||||||||||||||
Private label commercial mortgage related securities | 2,118 | 2 | — | 2,120 | ||||||||||||||||||||
Agency residential mortgage related securities | 250,851 | 2,655 | (9,558 | ) | 243,948 | |||||||||||||||||||
Total mortgage related securities | 252,969 | 2,657 | (9,558 | ) | 246,068 | |||||||||||||||||||
Total available-for-sale securities | $ | 263,414 | $ | 2,719 | $ | (9,576 | ) | $ | 256,557 | |||||||||||||||
Held-to-Maturity Securities: | ||||||||||||||||||||||||
Agency residential mortgage related securities | $ | 68,397 | $ | 514 | $ | (1,420 | ) | $ | 67,491 | |||||||||||||||
Total mortgage related securities | 68,397 | 514 | (1,420 | ) | 67,491 | |||||||||||||||||||
Total held-to-maturity securities | $ | 68,397 | $ | 514 | $ | (1,420 | ) | $ | 67,491 | |||||||||||||||
Obligations of U.S. government agencies represents debt issued by the Federal Home Loan Bank (the "FHLB") and are not backed by the full faith and credit of the United States government. | ||||||||||||||||||||||||
NOTE 2 - INVESTMENT AND MORTGAGE RELATED SECURITIES (Continued) | ||||||||||||||||||||||||
The following tables show gross unrealized losses and fair value of securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2014 and 2013. | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||
Corporate securities | — | — | — | — | — | — | ||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||
Agency residential mortgage related securities | 8,229 | (15 | ) | 64,502 | (657 | ) | 72,731 | (672 | ) | |||||||||||||||
Total mortgage related securities | 8,229 | (15 | ) | 64,502 | (657 | ) | 72,731 | (672 | ) | |||||||||||||||
Total available-for-sale securities | $ | 8,229 | $ | (15 | ) | $ | 64,502 | $ | (657 | ) | $ | 72,731 | $ | (672 | ) | |||||||||
Held-to-Maturity Securities: | ||||||||||||||||||||||||
Agency residential mortgage related securities | $ | 25,660 | $ | (110 | ) | $ | 27,182 | $ | (453 | ) | $ | 52,842 | $ | (563 | ) | |||||||||
Total mortgage related securities | 25,660 | (110 | ) | 27,182 | (453 | ) | 52,842 | (563 | ) | |||||||||||||||
Total held-to-maturity securities | $ | 25,660 | $ | (110 | ) | $ | 27,182 | $ | (453 | ) | $ | 52,842 | $ | (563 | ) | |||||||||
Total temporarily impaired securities | $ | 33,889 | $ | (125 | ) | $ | 91,684 | $ | (1,110 | ) | $ | 125,573 | $ | (1,235 | ) | |||||||||
December 31, 2013 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||
Corporate securities | — | — | 2,982 | (18 | ) | 2,982 | (18 | ) | ||||||||||||||||
— | — | 2,982 | (18 | ) | 2,982 | (18 | ) | |||||||||||||||||
Agency residential mortgage related securities | 180,448 | (7,251 | ) | 24,841 | (2,307 | ) | 205,289 | (9,558 | ) | |||||||||||||||
Total mortgage related securities | 180,448 | (7,251 | ) | 24,841 | (2,307 | ) | 205,289 | (9,558 | ) | |||||||||||||||
Total available-for-sale securities | $ | 180,448 | $ | (7,251 | ) | $ | 27,823 | $ | (2,325 | ) | $ | 208,271 | $ | (9,576 | ) | |||||||||
Held-to-Maturity Securities: | ||||||||||||||||||||||||
Agency residential mortgage related securities | $ | 40,615 | $ | (1,420 | ) | $ | — | $ | — | $ | 40,615 | $ | (1,420 | ) | ||||||||||
Total mortgage related securities | 40,615 | (1,420 | ) | — | — | 40,615 | (1,420 | ) | ||||||||||||||||
Total held-to-maturity securities | $ | 40,615 | $ | (1,420 | ) | $ | — | $ | — | $ | 40,615 | $ | (1,420 | ) | ||||||||||
Total temporarily impaired securities | $ | 221,063 | $ | (8,671 | ) | $ | 27,823 | $ | (2,325 | ) | $ | 248,886 | $ | (10,996 | ) | |||||||||
NOTE 2 - INVESTMENT AND MORTGAGE RELATED SECURITIES (Continued) | ||||||||||||||||||||||||
The Company evaluates a variety of factors when concluding whether a security is other-than-temporarily impaired. These factors include, but are not limited to, the type and purpose of the security, the underlying rating of the issuer, the presence of credit enhancements and the length of time a security has been in a loss position and the severity of the loss. | ||||||||||||||||||||||||
At December 31, 2014, gross unrealized losses on the total investment portfolio were $1.2 million. 40 agency residential mortgage related securities with a fair value of $91.7 million and an unrealized loss position of $1.1 million, had unrealized loss positions for twelve months or longer as of December 31, 2014. The remaining securities in an unrealized loss position at December 31, 2014 have been in an unrealized loss position for less than twelve months. These securities consist of 15 agency residential mortgage related securities with a fair value of $33.9 million and an unrealized loss of $125,000. The fair value of these 55 agency residential mortgage related securities primarily fluctuates with changes in market conditions for the underlying securities and changes in the interest rate environment. The Company does not intend to sell the securities in an unrealized loss position and it is not more likely than not that it will be required to sell these securities before a recovery of fair value, which may be maturity. Upon review of the attributes of the individual securities, the Company concluded these securities were not other-than-temporarily impaired. | ||||||||||||||||||||||||
As of December 31, 2014, the Company held one private label residential mortgage backed securities ("PLMBS") with an amortized cost of $3.0 million. This security had an unrealized gain of $6,000 at December 31, 2014. As of December 31, 2013, the Company held two private label commercial mortgage backed securities ("CMBS") with an amortized cost of $2.1 million. These securities had a net unrealized gain of $2,000 at December 31, 2013 and both individual securities were held at an unrealized gain. These securities were paid off at amortized cost during the year ended December 31, 2014. | ||||||||||||||||||||||||
During the year ended December 31, 2014, 38 residential mortgage related securities with a fair value of $96.9 million were transferred from available-for-sale securities to held-to-maturity. The reclassification was permitted as the Company has appropriately determined the ability and intent to hold these securities as an investment until maturity. The securities transferred had an unrealized net loss of $1.6 million at the time of transfer which continues to be reflected in accumulated other comprehensive loss on the consolidated balance sheet, net of subsequent amortization, which is being recognized over the life of the securities. | ||||||||||||||||||||||||
At December 31, 2014, the amortized cost of held-to-maturity investments consisted of the following (in thousands): | ||||||||||||||||||||||||
Original | Unrealized Loss | Post-transfer | Amortized | |||||||||||||||||||||
Cost | at Transfer | Accretion | Cost | |||||||||||||||||||||
Transferred securities | $ | 94,992 | $ | (1,625 | ) | $ | 60 | $ | 93,427 | |||||||||||||||
Other held-to-maturity securities | 76,745 | — | — | 76,745 | ||||||||||||||||||||
Total | $ | 171,737 | $ | (1,625 | ) | $ | 60 | $ | 170,172 | |||||||||||||||
NOTE 2 - INVESTMENT AND MORTGAGE RELATED SECURITIES (Continued) | ||||||||||||||||||||||||
No securities were sold and there were no net investment securities gains (losses) in the consolidated statement of operations for the year ended December 31, 2014. The following schedules provide a summary of the components of net investment securities gains (losses) in the Company’s consolidated statements of operations for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Gross | Gross | Net Gains | ||||||||||||||||||||||
Realized | Realized | (Losses) | ||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | — | $ | — | $ | — | ||||||||||||||||||
— | — | — | ||||||||||||||||||||||
Private label residential mortgage related security | — | — | — | |||||||||||||||||||||
Agency residential mortgage related securities | 532 | — | 532 | |||||||||||||||||||||
Total mortgage related securities | 532 | — | 532 | |||||||||||||||||||||
Total securities available-for-sale | $ | 532 | $ | — | $ | 532 | ||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
Gross | Gross | Net Gains | ||||||||||||||||||||||
Realized | Realized | (Losses) | ||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 64 | $ | — | $ | 64 | ||||||||||||||||||
64 | — | 64 | ||||||||||||||||||||||
Private label residential mortgage related security | — | (87 | ) | (87 | ) | |||||||||||||||||||
Agency residential mortgage related securities | 3,315 | — | 3,315 | |||||||||||||||||||||
Total mortgage related securities | 3,315 | (87 | ) | 3,228 | ||||||||||||||||||||
Total securities available-for-sale | $ | 3,379 | $ | (87 | ) | $ | 3,292 | |||||||||||||||||
NOTE 2 - INVESTMENT AND MORTGAGE RELATED SECURITIES (Continued) | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at December 31, 2014 and 2013 by contractual maturity are as follows: | ||||||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Due in one year or less | $ | 5,803 | $ | 5,818 | $ | — | $ | — | ||||||||||||||||
Due after one year through five years | 2,550 | 2,570 | — | — | ||||||||||||||||||||
Due after five years through ten years | — | — | — | — | ||||||||||||||||||||
Due after ten years | — | — | — | — | ||||||||||||||||||||
Total mortgage related securities | 123,929 | 125,649 | 170,172 | 170,854 | ||||||||||||||||||||
$ | 132,282 | $ | 134,037 | $ | 170,172 | $ | 170,854 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Due in one year or less | $ | 1,999 | $ | 2,000 | $ | — | $ | — | ||||||||||||||||
Due after one year through five years | 8,446 | 8,489 | — | — | ||||||||||||||||||||
Due after five years through ten years | — | — | — | — | ||||||||||||||||||||
Due after ten years | — | — | — | — | ||||||||||||||||||||
Total mortgage related securities | 252,969 | 246,068 | 68,397 | 67,491 | ||||||||||||||||||||
$ | 263,414 | $ | 256,557 | $ | 68,397 | $ | 67,491 | |||||||||||||||||
Securities with a fair value of $37.0 million and $9.7 million at December 31, 2014 and 2013, respectively, were pledged to secure public deposits and for other purposes as required or permitted by law. | ||||||||||||||||||||||||
Securities with a fair value of $169.7 million and $197.6 million at December 31, 2014 and 2013, respectively, were used to secure FHLB advances, short-term borrowings, other borrowed funds and related unused borrowing capacities. See Note 7. | ||||||||||||||||||||||||
Securities with a fair value of $1.1 million and $702,000 at December 31, 2014 and 2013, respectively, were used to secure derivative transactions. |
LOANS
LOANS | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
LOANS | LOANS | |||||||||||||||||||||||||||
The composition of net loans at December 31, 2014 and 2013 is provided below: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 108,208 | $ | 127,501 | ||||||||||||||||||||||||
Multi-family and commercial | 388,821 | 408,365 | ||||||||||||||||||||||||||
Construction | 39,541 | 5,904 | ||||||||||||||||||||||||||
536,570 | 541,770 | |||||||||||||||||||||||||||
Consumer loans | 19,599 | 22,478 | ||||||||||||||||||||||||||
Commercial and industrial loans | 179,181 | 168,013 | ||||||||||||||||||||||||||
Total loans | 735,350 | 732,261 | ||||||||||||||||||||||||||
Deferred loan origination (fees) cost, net | (294 | ) | (242 | ) | ||||||||||||||||||||||||
Allowance for loan losses | (10,730 | ) | (11,529 | ) | ||||||||||||||||||||||||
Net loans | $ | 724,326 | $ | 720,490 | ||||||||||||||||||||||||
NOTE 3 - LOANS (Continued) | ||||||||||||||||||||||||||||
The following tables present changes in the allowance for loan losses by loan segment for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
One- to | Multi-family | Construction | Consumer | Commercial | Unallocated | Total | ||||||||||||||||||||||
Four-Family | and | and | ||||||||||||||||||||||||||
Commercial | Industrial | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance, beginning | $ | 403 | $ | 7,141 | $ | 324 | $ | 153 | $ | 3,051 | $ | 457 | $ | 11,529 | ||||||||||||||
(Credit) provision for loan losses | (20 | ) | (357 | ) | 714 | (1 | ) | 1,704 | (97 | ) | 1,943 | |||||||||||||||||
Loans charged off | (6 | ) | (811 | ) | — | (16 | ) | (2,002 | ) | — | (2,835 | ) | ||||||||||||||||
Recoveries | 28 | 17 | — | 48 | — | — | 93 | |||||||||||||||||||||
Balance, ending | $ | 405 | $ | 5,990 | $ | 1,038 | $ | 184 | $ | 2,753 | $ | 360 | $ | 10,730 | ||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Balance, ending: individually evaluated for impairment | $ | 11 | $ | 401 | $ | 114 | $ | 26 | $ | — | $ | — | $ | 552 | ||||||||||||||
Balance, ending: collectively evaluated for impairment | 394 | 5,589 | 924 | 158 | 2,753 | 360 | 10,178 | |||||||||||||||||||||
Total | $ | 405 | $ | 5,990 | $ | 1,038 | $ | 184 | $ | 2,753 | $ | 360 | $ | 10,730 | ||||||||||||||
Total Loans: | ||||||||||||||||||||||||||||
Balance, ending: individually evaluated for impairment | $ | 2,629 | $ | 5,849 | $ | 2,723 | $ | 256 | $ | 75 | $ | — | $ | 11,532 | ||||||||||||||
Balance, ending: collectively evaluated for impairment | 105,579 | 382,972 | 36,818 | 19,343 | 179,106 | — | 723,818 | |||||||||||||||||||||
Total | $ | 108,208 | $ | 388,821 | $ | 39,541 | $ | 19,599 | $ | 179,181 | $ | — | $ | 735,350 | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
One- to | Multi-family | Construction | Consumer | Commercial | Unallocated | Total | ||||||||||||||||||||||
Four-Family | and | and | ||||||||||||||||||||||||||
Commercial | Industrial | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance, beginning | $ | 642 | $ | 6,327 | $ | 873 | $ | 232 | $ | 2,630 | $ | 466 | $ | 11,170 | ||||||||||||||
(Credit) provision for loan losses | (95 | ) | 1,252 | (549 | ) | (38 | ) | 421 | (9 | ) | 982 | |||||||||||||||||
Loans charged off | (179 | ) | (463 | ) | — | (71 | ) | — | — | (713 | ) | |||||||||||||||||
Recoveries | 35 | 25 | — | 30 | — | — | 90 | |||||||||||||||||||||
Balance, ending | $ | 403 | $ | 7,141 | $ | 324 | $ | 153 | $ | 3,051 | $ | 457 | $ | 11,529 | ||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Balance, ending: individually evaluated for impairment | $ | 164 | $ | 1,287 | $ | 263 | $ | 6 | $ | — | $ | — | $ | 1,720 | ||||||||||||||
Balance, ending: collectively evaluated for impairment | 239 | 5,854 | 61 | 147 | 3,051 | 457 | 9,809 | |||||||||||||||||||||
Total | $ | 403 | $ | 7,141 | $ | 324 | $ | 153 | $ | 3,051 | $ | 457 | $ | 11,529 | ||||||||||||||
Total Loans: | ||||||||||||||||||||||||||||
Balance, ending: individually evaluated for impairment | $ | 2,972 | $ | 9,222 | $ | 3,231 | $ | 141 | $ | — | $ | — | $ | 15,566 | ||||||||||||||
Balance, ending: collectively evaluated for impairment | 124,529 | 399,143 | 2,673 | 22,337 | 168,013 | — | 716,695 | |||||||||||||||||||||
Total | $ | 127,501 | $ | 408,365 | $ | 5,904 | $ | 22,478 | $ | 168,013 | $ | — | $ | 732,261 | ||||||||||||||
NOTE 3 - LOANS (Continued) | ||||||||||||||||||||||||||||
The following tables set forth the breakdown of impaired loans by loan segment as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Nonaccrual | Accruing | Other | Total | Impaired | Impaired | |||||||||||||||||||||||
Loans | TDRs | Impaired | Impaired | Loans | Loans | |||||||||||||||||||||||
Loans | Loans | with | without | |||||||||||||||||||||||||
Allowance | Allowance | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 1,741 | $ | 888 | $ | — | $ | 2,629 | $ | 137 | $ | 2,492 | ||||||||||||||||
Multi-family and commercial | 1,395 | — | 4,454 | 5,849 | 4,502 | 1,347 | ||||||||||||||||||||||
Construction | — | 2,723 | — | 2,723 | 2,723 | — | ||||||||||||||||||||||
Consumer loans | 243 | 13 | — | 256 | 82 | 174 | ||||||||||||||||||||||
Commercial and industrial | 75 | — | — | 75 | — | 75 | ||||||||||||||||||||||
Total | $ | 3,454 | $ | 3,624 | $ | 4,454 | $ | 11,532 | $ | 7,444 | $ | 4,088 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Nonaccrual | Accruing | Other | Total | Impaired | Impaired | |||||||||||||||||||||||
Loans | TDRs | Impaired | Impaired | Loans | Loans | |||||||||||||||||||||||
Loans | Loans | with | without | |||||||||||||||||||||||||
Allowance | Allowance | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 2,390 | $ | 582 | $ | — | $ | 2,972 | $ | 2,972 | $ | — | ||||||||||||||||
Multi-family and commercial | 3,031 | 6,191 | — | 9,222 | 8,866 | 356 | ||||||||||||||||||||||
Construction | 3,231 | — | — | 3,231 | 3,231 | — | ||||||||||||||||||||||
Consumer loans | 128 | 13 | — | 141 | 141 | — | ||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 8,780 | $ | 6,786 | $ | — | $ | 15,566 | $ | 15,210 | $ | 356 | ||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the average recorded investment in the impaired loans was $12.5 million, $15.9 million, and $28.7 million respectively. The interest income recognized on these impaired loans was $533,000, $359,000 and $502,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||
Loans on which the accrual of interest has been discontinued amounted to $3.5 million at December 31, 2014 and $8.8 million at December 31, 2013. If interest on such loans had been recorded in accordance with contractual terms, interest income would have increased by $161,000, $616,000 and $1.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. There were no loans past due 90 days or more and still accruing interest at December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||
At December 31, 2014, four troubled debt restructurings (“TDRs”) totaling $1.4 million are excluded from the accruing TDR column above as they are included in nonaccrual loans. Of this amount, $1.1 million relates to one multi-family and commercial loan. Additionally, the Bank had three residential loan TDRs totaling $336,000, which are included in nonaccrual loans. | ||||||||||||||||||||||||||||
At December 31, 2013, four TDRs totaling $3.5 million are excluded from the accruing TDR column as they are included in nonaccrual loans. Of this amount, $3.2 million relates to one construction loan. The Bank had commitments of $618,000 to lend additional funds related to this construction loan. Additionally, the Bank had three residential loan TDRs totaling $256,000 which are included in nonaccrual loans. | ||||||||||||||||||||||||||||
During the year ended December 31, 2014, one multi-family and commercial loan totaling $4.5 million was reclassified from an accruing TDR to an other impaired loan. This reclassification was due to our annual assessment where TDRs that have performed in accordance with the new terms for six consecutive months, are in a current status, reflected a market rate of interest at the time of the restructuring and cross over a year end are considered cured and are no longer classified as TDRs. | ||||||||||||||||||||||||||||
NOTE 3 - LOANS (Continued) | ||||||||||||||||||||||||||||
The following tables set forth the allowance for loan loss for impaired loans and general allowance by loan segment as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||
Nonaccrual | Accruing | Other | Total | |||||||||||||||||||||||||
Loans | TDRs | Impaired | Impaired | |||||||||||||||||||||||||
Loans | Loans | General | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 11 | $ | — | $ | — | $ | 11 | $ | 394 | $ | 405 | ||||||||||||||||
Multi-family and commercial | 10 | — | 391 | 401 | 5,589 | 5,990 | ||||||||||||||||||||||
Construction | — | 114 | — | 114 | 924 | 1,038 | ||||||||||||||||||||||
Consumer loans | 26 | — | — | 26 | 158 | 184 | ||||||||||||||||||||||
Commercial and industrial | — | — | — | — | 2,753 | 2,753 | ||||||||||||||||||||||
Unallocated | — | — | — | — | 360 | 360 | ||||||||||||||||||||||
Total allowance for loan losses | $ | 47 | $ | 114 | $ | 391 | $ | 552 | $ | 10,178 | $ | 10,730 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||
Nonaccrual | Accruing | Other | Total | |||||||||||||||||||||||||
Loans | TDRs | Impaired | Impaired | |||||||||||||||||||||||||
Loans | Loans | General | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 163 | $ | 1 | $ | — | $ | 164 | $ | 239 | $ | 403 | ||||||||||||||||
Multi-family and commercial | 600 | 687 | — | 1,287 | 5,854 | 7,141 | ||||||||||||||||||||||
Construction | 263 | — | — | 263 | 61 | 324 | ||||||||||||||||||||||
Consumer loans | 6 | — | — | 6 | 147 | 153 | ||||||||||||||||||||||
Commercial and industrial | — | — | — | — | 3,051 | 3,051 | ||||||||||||||||||||||
Unallocated | — | — | — | — | 457 | 457 | ||||||||||||||||||||||
Total allowance for loan losses | $ | 1,032 | $ | 688 | $ | — | $ | 1,720 | $ | 9,809 | $ | 11,529 | ||||||||||||||||
NOTE 3 - LOANS (Continued) | ||||||||||||||||||||||||||||
The Company may, under certain circumstances, restructure loans as a concession to borrowers who have experienced financial difficulty, which results in a TDR. TDRs are impaired loans. TDRs typically result from the Company’s loss mitigation activities, which, among other activities, could include extension of maturity, rate reductions, payment extension, and/or principal forgiveness. | ||||||||||||||||||||||||||||
The following tables set forth a summary of the TDR activity for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
Restructured Current Period | ||||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Type of Modification | |||||||||||||||||||||||||
of Loans | Outstanding | Outstanding | ||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | 1 | $ | 245 | $ | 245 | Principal forgiveness | ||||||||||||||||||||||
Multi-family and commercial | 1 | 1,640 | 1,540 | Principal forgiveness | ||||||||||||||||||||||||
Construction | — | — | — | |||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||
Commercial and industrial | — | — | — | |||||||||||||||||||||||||
Total | 2 | $ | 1,885 | $ | 1,785 | |||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
Restructured Current Period | ||||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Type of Modification | |||||||||||||||||||||||||
of Loans | Outstanding | Outstanding | ||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | 2 | $ | 622 | $ | 622 | Delayed repayment | ||||||||||||||||||||||
Multi-family and commercial | — | — | — | |||||||||||||||||||||||||
Construction | — | — | — | |||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||
Commercial and industrial | — | — | — | |||||||||||||||||||||||||
Total | 2 | $ | 622 | $ | 622 | |||||||||||||||||||||||
During the years ended December 31, 2014 and 2013, a $1.6 million multi-family and commercial real estate TDR which was restructured during 2014 and 2013 defaulted. During 2014, the Company recorded charge-offs of $552,000 on this loan, $100,000 of which was recorded in conjunction with the modification. | ||||||||||||||||||||||||||||
The following table sets forth past due loans by segment as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
30-59 | 60-89 | 30-59 | 60-89 | |||||||||||||||||||||||||
Days | Days | Days | Days | |||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
One- to four-family real estate | $ | — | $ | 145 | $ | 172 | $ | — | ||||||||||||||||||||
Multi-family and commercial real estate | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | ||||||||||||||||||||||||
Consumer | 113 | — | 241 | 5 | ||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 113 | $ | 145 | $ | 413 | $ | 5 | ||||||||||||||||||||
NOTE 3 - LOANS (Continued) | ||||||||||||||||||||||||||||
We use six primary classifications for loans: pass, pass watch, special mention, substandard, doubtful and loss, of which three classifications are for problem loans: substandard, doubtful and loss. “Substandard loans” must have one or more well defined weaknesses and are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. “Doubtful loans” have the weaknesses of substandard loans with the additional characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. A loan classified “loss” is considered uncollectible and of such little value that continuance as a loan of the institution is not warranted. We also maintain a “special mention” category, described as loans which do not currently expose us to a sufficient degree of risk to warrant classification but do possess credit deficiencies or potential weaknesses deserving our close attention. If we classify an asset as loss, it is recorded as a loan charged off in the current period. | ||||||||||||||||||||||||||||
The following tables set forth criticized and classified loans by segment as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
One- to | Multi-family | Construction | Consumer | Commercial | Total | |||||||||||||||||||||||
Four-Family | and | and | ||||||||||||||||||||||||||
Commercial | Industrial | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Pass and Pass watch | $ | 106,467 | $ | 376,134 | $ | 36,229 | $ | 19,357 | $ | 174,143 | $ | 712,330 | ||||||||||||||||
Special mention | — | 8,406 | 2,723 | — | 3,012 | 14,141 | ||||||||||||||||||||||
Substandard | 1,741 | 4,281 | 589 | 242 | 2,026 | 8,879 | ||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | ||||||||||||||||||||||
Total loans | $ | 108,208 | $ | 388,821 | $ | 39,541 | $ | 19,599 | $ | 179,181 | $ | 735,350 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
One- to | Multi-family | Construction | Consumer | Commercial | Total | |||||||||||||||||||||||
Four-Family | and | and | ||||||||||||||||||||||||||
Commercial | Industrial | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Pass and Pass watch | $ | 125,111 | $ | 390,908 | $ | 2,673 | $ | 22,350 | $ | 165,336 | $ | 706,378 | ||||||||||||||||
Special mention | — | 12,414 | — | — | 2,677 | 15,091 | ||||||||||||||||||||||
Substandard | 2,390 | 5,043 | 3,231 | 128 | — | 10,792 | ||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | ||||||||||||||||||||||
Total loans | $ | 127,501 | $ | 408,365 | $ | 5,904 | $ | 22,478 | $ | 168,013 | $ | 732,261 | ||||||||||||||||
DERIVATIVES_AND_HEDGING
DERIVATIVES AND HEDGING | 12 Months Ended |
Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING |
Interest Rate Swaps | |
On November 3, 2006, the Company entered into an interest rate swap with a current notional amount of $798,000, which is used to hedge a 15-year fixed rate loan that is earning interest at 7.43%. The Company is receiving variable rate payments of one-month LIBOR plus 224 basis points and is paying fixed rate payments of 7.43%. The swap matures in April 2022 and had a fair value loss position of $116,000 and $132,000 at December 31, 2014 and 2013, respectively. The interest rate swap is carried at fair value in accordance with FASB ASC 815 “Derivatives and Hedging.” The loan is carried at fair value under the fair value option as permitted by FASB ASC 825 “Financial Instruments.” | |
On October 12, 2011, the Company entered into an interest rate swap with a current notional amount of $1.5 million, which is used to hedge a 10-year fixed rate loan that is earning interest at 5.83%. The Company is receiving variable rate payments of one-month LIBOR plus 350 basis points and is paying fixed rate payments of 5.83%. The Company designated this relationship as a fair value hedge. The swap matures in October 2021 and had a fair value loss position of $46,000 and gain position of $12,000 at December 31, 2014 and 2013, respectively. The difference between changes in the fair values of the interest rate swap agreement and the hedged loan represents hedge ineffectiveness and is recorded in other non-interest income in the consolidated statements of operations. Hedge ineffectiveness resulted in expense of $16,000 and income of $20,000 for the years ended December 31, 2014 and 2013, respectively. | |
NOTE 4 - DERIVATIVES AND HEDGING (Continued) | |
Credit Derivatives | |
We have entered into agreements with a third-party financial institution whereby the financial institution enters into interest rate derivative contracts and foreign currency swap contracts with customers referred to them by us. Under the agreements, the financial institution has recourse to the Company for any exposure created under each swap contract in the event the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. These transactions represent credit derivatives and are a customary arrangement that allows financial institutions like us to provide access to interest rate and foreign currency swap transactions for our customers without creating the swap ourselves. The Company records the fair value of credit derivatives in other liabilities on the consolidated statement of condition. The Company recognizes changes in the fair value of credit derivatives, net of any fees received, as service charges and other fee income in the consolidated statements of operations. | |
At December 31, 2014, there were four variable-rate to fixed-rate interest rate swap transactions between the third-party financial institution and our customers with a notional amount of $12.6 million, and remaining maturities ranging from five to eight years. At December 31, 2013, there were five variable-rate to fixed-rate interest swap transactions between the third-party financial institution and our customers with a notional amount of $19.5 million, and remaining maturities ranging from six to nine years. The fair value of the swaps to the customers was an asset of $91,000 and $969,000 as of December 31, 2014 and 2013, respectively, and all swaps were in paying positions to the third-party financial institution at December 31, 2014 and 2013. As of December 31, 2014 and 2013, the fair value of the Company’s interest rate swap credit derivatives was a liability of $10,000 and $3,000, respectively. During the years ended December 31, 2014 and 2013, the Company recognized expense of $8,000 and income of $10,000 respectively, from interest rate swap credit derivatives. | |
At December 31, 2014, there were six foreign currency swap transactions between the third-party financial institution and our customers with a notional amount of $366,000, and remaining maturities ranging from one to four months. The aggregate fair value of these swaps to the customers was a loss position of $44,000 as of December 31, 2014. At December 31, 2014, the fair value of the Company’s credit derivatives was a liability of $2,000. At December 31, 2013, there were seven foreign currency swap transactions between the third-party financial institution and our customers with a notional amount of $517,000, and remaining maturities ranging from 1 to 11 months. The aggregate fair value of these swaps to the customers was $0 as of December 31, 2013. At December 31, 2013, the fair value of the Company's credit derivatives was a liability of $1,000. During the years ended December 31, 2014 and 2013, the Company recognized income of $12,000 and $3,000, respectively, from foreign currency swap credit derivatives. | |
The maximum potential payments by the Company to the financial institution under these credit derivatives are not estimable as they are contingent on future interest rates and exchange rates, and the agreement does not provide for a limitation of the maximum potential payment amount. |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT | ||||||||||||
The components of premises and equipment at December 31, 2014 and 2013 were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Land | $ | 3,207 | $ | 3,207 | |||||||||
Buildings | 13,917 | 13,759 | |||||||||||
Leasehold improvements | 161 | 202 | |||||||||||
Furniture, fixtures and equipment | 4,845 | 4,739 | |||||||||||
22,130 | 21,907 | ||||||||||||
Less: accumulated depreciation | (12,712 | ) | (12,093 | ) | |||||||||
Premises and equipment, net | $ | 9,418 | $ | 9,814 | |||||||||
NOTE 5 - PREMISES AND EQUIPMENT (Continued) | |||||||||||||
As of December 31, 2014, the Company leased space for an operations center in Blue Bell, Pennsylvania and certain office equipment. The leases are accounted for as operating leases. The Blue Bell lease expires in January 2016 and, upon expiration, the Company has the option to extend the lease at the then prevailing market rate. The following rental expenses were included in the Company's financial statements. | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Office rent | $ | 399 | $ | 407 | $ | 449 | |||||||
Equipment lease | 2 | 2 | 2 | ||||||||||
Total | $ | 401 | $ | 409 | $ | 451 | |||||||
The following table shows the minimum future rental payments under non-cancelable leases for premises and equipment as of December 31, 2014. | |||||||||||||
Year | Amount | ||||||||||||
(In thousands) | |||||||||||||
2015 | $ | 428 | |||||||||||
2016 | 36 | ||||||||||||
2017 | — | ||||||||||||
2018 | — | ||||||||||||
2019 | — | ||||||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||
DEPOSITS | DEPOSITS | |||||||||||||
Deposits and their respective weighted average interest rate at December 31, 2014 and December 31, 2013 consist of the following: | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Weighted | Amount | Weighted | Amount | |||||||||||
Average | Average | |||||||||||||
Interest Rate | Interest Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Noninterest-bearing demand accounts | — | % | $ | 168,791 | — | % | $ | 100,748 | ||||||
NOW accounts | 0.21 | 82,417 | 0.21 | 84,569 | ||||||||||
Money market accounts | 0.22 | 73,802 | 0.2 | 85,017 | ||||||||||
Savings and club accounts | 0.37 | 129,893 | 0.22 | 108,183 | ||||||||||
Brokered deposits | 0.73 | 70,817 | 0.56 | 71,334 | ||||||||||
Certificates of deposit | 0.87 | 186,189 | 1.26 | 223,864 | ||||||||||
Total | 0.42 | % | $ | 711,909 | 0.56 | % | $ | 673,715 | ||||||
NOTE 6 - DEPOSITS (Continued) | ||||||||||||||
The scheduled maturities of certificates of deposit and brokered deposits for periods subsequent to December 31, 2014 are as follows: | ||||||||||||||
December 31, | ||||||||||||||
Year | Certificates of | Brokered | Total | |||||||||||
Deposit | Deposits | |||||||||||||
(In thousands) | ||||||||||||||
2015 | $ | 105,403 | $ | 32,362 | $ | 137,765 | ||||||||
2016 | 26,548 | 16,075 | 42,623 | |||||||||||
2017 | 33,205 | 11,219 | 44,424 | |||||||||||
2018 | 7,741 | 6,190 | 13,931 | |||||||||||
2019 | 7,604 | 4,971 | 12,575 | |||||||||||
Thereafter | 5,688 | — | 5,688 | |||||||||||
Total | $ | 186,189 | $ | 70,817 | $ | 257,006 | ||||||||
A summary of interest expense on deposits for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(In thousands) | ||||||||||||||
NOW accounts | $ | 183 | $ | 172 | $ | 234 | ||||||||
Money market accounts | 202 | 172 | 339 | |||||||||||
Savings and club accounts | 275 | 141 | 253 | |||||||||||
Brokered deposits | 450 | 391 | 194 | |||||||||||
Certificates of deposit | 2,106 | 3,468 | 5,327 | |||||||||||
Total | $ | 3,216 | $ | 4,344 | $ | 6,347 | ||||||||
The aggregate amount of certificates of deposit with a minimum denomination of $100,000 was $42.4 million and $51.1 million at December 31, 2014 and 2013, respectively. Deposits in excess of $250,000 are not insured by the FDIC. |
BORROWINGS
BORROWINGS | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
BORROWINGS | ||||||||||||||||||
BORROWINGS | BORROWINGS | |||||||||||||||||
The following is a summary of borrowed funds by type: | ||||||||||||||||||
Balance at | Weighted Average | Maximum Amount | Average Amount | Weighted Average | ||||||||||||||
End of Year | Coupon Rate | Outstanding at | Outstanding | Interest Rate | ||||||||||||||
Month End | During the Year | During the Year | ||||||||||||||||
During the Year | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
2014 | ||||||||||||||||||
FHLB advances | $ | 120,000 | 1.8 | % | $ | 150,000 | $ | 143,980 | 1.59 | % | ||||||||
Other borrowed funds | 30,000 | 3.3 | 30,000 | 30,000 | 3.35 | |||||||||||||
Short-term borrowings | 50,000 | 0.32 | 84,900 | 41,000 | 0.31 | |||||||||||||
2013 | ||||||||||||||||||
FHLB advances | $ | 150,000 | 1.52 | % | $ | 150,000 | $ | 135,807 | 1.61 | % | ||||||||
Other borrowed funds | 30,000 | 3.3 | 30,000 | 30,000 | 3.36 | |||||||||||||
Short-term borrowings | 80,500 | 0.32 | 80,500 | 47,368 | 0.28 | |||||||||||||
NOTE 7 - BORROWINGS (Continued) | ||||||||||||||||||
FHLB Advances | ||||||||||||||||||
Pursuant to collateral agreements with the FHLB of Pittsburgh, advances are secured by qualifying first mortgage loans, qualifying fixed-income securities, FHLB stock and an interest-bearing demand deposit account with the FHLB. | ||||||||||||||||||
Maturity Date | Amount | Coupon Rate | Call Date | Rate if Called | ||||||||||||||
(In thousands) | ||||||||||||||||||
Mar-15 | $ | 10,000 | 0.49 | % | Not Applicable | Not Applicable | ||||||||||||
Apr-15 | 10,000 | 0.45 | Not Applicable | Not Applicable | ||||||||||||||
Aug-15 | 10,000 | 0.68 | Not Applicable | Not Applicable | ||||||||||||||
Mar-16 | 10,000 | 0.6 | Not Applicable | Not Applicable | ||||||||||||||
Mar-16 | 10,000 | 0.62 | Not Applicable | Not Applicable | ||||||||||||||
Sep-16 | 5,000 | 0.75 | Not Applicable | Not Applicable | ||||||||||||||
Sep-16 | 10,000 | 1.04 | Not Applicable | Not Applicable | ||||||||||||||
Jun-17 | 5,000 | 0.94 | Not Applicable | Not Applicable | ||||||||||||||
Nov-17 | 15,000 | 3.62 | Feb-15 | LIBOR + 0.10% | ||||||||||||||
Nov-17 | 15,000 | 3.87 | Feb-15 | LIBOR + 0.10% | ||||||||||||||
Dec-17 | 20,000 | 2.83 | March 2015 | LIBOR + 0.11% | ||||||||||||||
$ | 120,000 | 1.8 | % | |||||||||||||||
Advances from the FHLB of Pittsburgh with coupon rates ranging from 0.45% to 3.87% are due as follows. | ||||||||||||||||||
Maturity | Amount | Weighted Average | ||||||||||||||||
Coupon Rate | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
2015 | $ | 30,000 | 0.54 | % | ||||||||||||||
2016 | 35,000 | 0.75 | ||||||||||||||||
2017 | 55,000 | 3.16 | ||||||||||||||||
$ | 120,000 | 1.8 | % | |||||||||||||||
For the borrowings which have a "Call Date" disclosed in the above table, if the borrowing is called, the Bank has the option to either pay off the borrowing without penalty or the borrowing’s fixed rate resets to a variable LIBOR based rate, as noted in the above table. Subsequent to the call date, the borrowings are callable by the FHLB quarterly. Accordingly, the contractual maturities above may differ from actual maturities. | ||||||||||||||||||
The Bank had a maximum borrowing capacity with the FHLB of Pittsburgh of approximately $411.0 million at December 31, 2014. As of December 31, 2014, the Bank had qualifying collateral pledged against its advances consisting of loans in the amount of $470.1 million and securities in the amount of $75.7 million. Additionally, as of December 31, 2014, the Bank had a maximum borrowing capacity of $59.3 million with the Federal Reserve Bank of Philadelphia through the Discount Window. This borrowing capacity was generated by pledged securities with a fair value of $59.3 million. | ||||||||||||||||||
As a member of the FHLB of Pittsburgh, the Bank is required to acquire and hold shares of FHLB of Pittsburgh capital stock. Stock holding requirement is based on a percentage of the Bank's borrowings and a percentage of the Bank's "eligible assets" as defined by the FHLB. Percentages of borrowings and "eligible assets" used to determine the stock requirement are set by the FHLB from a defined range. Maximum percentages are 6.00% of its advances plus 1.00% of the Bank’s "eligible assets." Minimum percentages are 2.00% of its advances plus 0.05% of "eligible assets." Current percentages are 4.00% of advances plus 0.10% of "eligible assets." As of December 31, 2014, given the current level of FHLB advances and of "eligible assets," the Bank’s maximum potential stock obligation was $14.2 million and minimum potential stock obligation was $3.0 million. The Company held $6.0 million in FHLB stock at that date. | ||||||||||||||||||
NOTE 7 - BORROWINGS (Continued) | ||||||||||||||||||
Other Borrowed Funds | ||||||||||||||||||
Other borrowed funds obtained from large commercial banks under security repurchase agreements totaled $30.0 million at December 31, 2014. These borrowings contractually mature with dates ranging from September 2018 through November 2018. As disclosed in the table below, one of the borrowings may be called by the lender based on the underlying agreements. Accordingly, the contractual maturity on that borrowing may differ from actual maturity. | ||||||||||||||||||
Next Call Date | Subsequent Call Frequency | |||||||||||||||||
Maturity Date | Amount | Coupon Rate | ||||||||||||||||
(In thousands) | ||||||||||||||||||
September 2018 | $ | 10,000 | 3.4 | % | Not Applicable | Not Applicable | ||||||||||||
September 2018 | 5,000 | 3.2 | Not Applicable | Not Applicable | ||||||||||||||
October 2018 | 5,000 | 3.15 | January 2015 | Quarterly | ||||||||||||||
October 2018 | 5,000 | 3.27 | Not Applicable | Not Applicable | ||||||||||||||
November 2018 | 5,000 | 3.37 | Not Applicable | Not Applicable | ||||||||||||||
$ | 30,000 | 3.3 | % | |||||||||||||||
Mortgage backed securities with a fair value of $34.7 million at December 31, 2014 were used to secure these other borrowed funds. | ||||||||||||||||||
During 2012, the Company terminated $20.0 million of other long-term borrowings at a pre-tax cost of $1.5 million, which was recorded in loss on extinguishment of debt in the consolidated statement of operations. | ||||||||||||||||||
On January 5, 2015, the Bank modified the four non-callable fixed rate borrowings (as identified in the above table) totaling $25.0 million. Prior to the modification, the borrowings had a weighted average fixed rate of 3.33% and a weighted average term to maturity of 3.8 years. Subsequent to the modification, the borrowings have a weighted average variable rate of one-month LIBOR plus 1.79% and a weighted average term to maturity of 5.0 years. | ||||||||||||||||||
Short-term Borrowings | ||||||||||||||||||
Short-term borrowings consist of overnight borrowings plus term borrowings with an original maturity less than one year. Short-term borrowings are obtained from commercial banks, participants in the Federal Funds market and the FHLB. As of December 31, 2014, the Company had $50.0 million of short-term borrowings consisting of $35.0 million of overnight borrowings and $15.0 million of short-term borrowings with an original maturity less than one year. The weighted average rates for these borrowings was 0.31% and 0.33%, respectively. As of December 31, 2013, the Company had $80.5 million of short term borrowings consisting solely of overnight borrowings with a weighted average rate of 0.32%. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS |
401(k) Plan | |
The Bank has a 401(k) retirement plan covering all employees meeting certain eligibility requirements. Employees may contribute a percentage of their salary to the Plan each year, subject to limitations set by law. The Bank matches a portion of each employee contribution and also may make discretionary contributions, based on the Bank's performance. The Bank provides a matching contribution equivalent to 33% of the first 6% of the contribution made by an employee. The Bank's contributions to the plan on behalf of its employees resulted in an expenditure of $143,000, $146,000 and $131,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Employee Stock Ownership Plan | |
The ESOP is a tax-qualified plan designed to invest in the Bancorp's common stock that provides employees meeting certain eligibility requirements with the opportunity to receive a funded retirement benefit, based on the value of the Bancorp's common stock. The ESOP has purchased 963,767 shares of common stock and has total loans outstanding of $5.5 million as of December 31, 2014. The ESOP purchased shares in two separate transactions as described below. | |
NOTE 8 - EMPLOYEE BENEFITS (Continued) | |
The ESOP initially purchased 615,267 shares of common stock in 2006 in conjunction with the Bancorp's initial public offering at a price of $9.35 per share with the proceeds of a loan from Bancorp to the ESOP. The outstanding loan principal balance on the initial ESOP transaction at December 31, 2014 and 2013 was $3.0 million and $3.3 million, respectively. ESOP shares from this transaction that were unallocated at December 31, 2014 totaled 246,106 and had a fair market value of $4.1 million. | |
The ESOP purchased an additional 348,500 shares of common stock in conjunction with the Bancorp's mutual-to-stock conversion completed on June 29, 2010 at a price of $10.00 per share with the proceeds of a second loan from the Bancorp to the ESOP. The outstanding loan principal balance at December 31, 2014 and 2013 was $2.5 million and $2.8 million, respectively. ESOP shares from this transaction that were unallocated at December 31, 2014 totaled 240,345 and had a fair market value of $4.0 million. | |
Shares of the Bancorp's common stock pledged as collateral for the loan are released from the pledge for allocation to Plan participants as loan payments are made. The Bank releases 65,053 shares annually based upon the ratio that the current principal and interest payment bears to the current and remaining scheduled future principal and interest payments. Dividends declared on common stock held by the ESOP and not allocated to the account of a participant are used to repay the loan. Dividends declared on common stock held by the ESOP that are allocated to the account of a participant are paid to the participant each year. | |
As of December 31, 2014, there were no shares committed to employees, 477,316 shares allocated to employees and 486,451 unallocated shares to be released in future periods. | |
Total ESOP compensation expense for the years ended December 31, 2014, 2013 and 2012 was $1.1 million, $1.1 million and $921,000, respectively, representing the average fair market value of shares allocated during the year. | |
Long-Term Incentive Plan | |
The Bank maintains the Fox Chase Bank Executive Long-Term Incentive Plan (the "Incentive Plan"). All plan assets are invested in Bancorp common stock. The Incentive Plan became effective January 1, 2006. All shares in the plan were fully vested on January 1, 2011. |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION | ||||||||||||||||||||
In 2007, stockholders approved the Fox Chase Bancorp, Inc. 2007 Equity Incentive Plan (the "2007 Plan"). The Plan provides that 769,083 shares of common stock may be issued in connection with the exercise of stock options and 307,633 shares of common stock may be issued as restricted stock. The Plan allows for the granting of non-statutory stock options ("NSOs"), incentive stock options and restricted stock. Options are granted at no less than the fair value of the Bancorp's common stock on the date of the grant. In 2007, a trust was funded which purchased 307,395 shares of Bancorp's common stock to fund restricted stock awards under the Plan. The 307,395 shares were purchased by the trust at a weighted average cost of $12.18 per share. | |||||||||||||||||||||
In August 2011, stockholders approved the Fox Chase Bancorp, Inc. 2011 Equity Incentive Plan (the "2011 Plan"). The 2011 Plan provides that 685,978 shares of common stock may be issued in connection with the exercise of stock options and 274,391 shares of common stock may be issued as restricted stock, including performance based restricted stock. In August 2011, a trust was funded that purchased 274,391 shares of Bancorp's common stock to fund restricted stock awards under the 2011 Plan. The 274,391 shares were purchased by the trust at a weighted average cost of $12.66 per share. | |||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recorded $1.2 million, $1.1 million and $1.0 million of stock based compensation expense, respectively, comprised of stock option expense of $437,000, $431,000 and $420,000, respectively and restricted stock expense of $812,000, $693,000 and $621,000, respectively. | |||||||||||||||||||||
NOTE 9 - STOCK BASED COMPENSATION (Continued) | |||||||||||||||||||||
The following is a summary of the Bancorp’s stock option activity and related information for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||
Stock | Average | Average | Intrinsic | ||||||||||||||||||
Options | Exercise | Remaining | Value | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
Outstanding at December 31, 2011 | 788,142 | $ | 11.23 | 6.6 years | $ | 1,111,000 | |||||||||||||||
Granted | 146,550 | 13.15 | |||||||||||||||||||
Exercised | (43,954 | ) | 10.94 | ||||||||||||||||||
Forfeited/Cancelled | (13,069 | ) | 11.1 | ||||||||||||||||||
Outstanding at December 31, 2012 | 877,669 | $ | 11.57 | 6.3 years | $ | 4,461,000 | |||||||||||||||
Granted | 255,650 | 17 | |||||||||||||||||||
Exercised | (9,811 | ) | 10.82 | ||||||||||||||||||
Forfeited/Cancelled | (100 | ) | 12.94 | ||||||||||||||||||
Outstanding at December 31, 2013 | 1,123,408 | $ | 12.81 | 6.2 years | $ | 5,013,000 | |||||||||||||||
Granted | 39,600 | 16.92 | |||||||||||||||||||
Exercised | (39,388 | ) | 11.12 | ||||||||||||||||||
Forfeited/Cancelled | (23,100 | ) | 15.52 | ||||||||||||||||||
Outstanding at December 31, 2014 | 1,100,520 | $ | 12.96 | 5.3 years | $ | 4,172,000 | |||||||||||||||
Exercisable at December 31, 2014 | 731,017 | $ | 11.73 | 4.0 years | $ | 3,631,000 | |||||||||||||||
Management estimated the fair values of all option grants using the Black-Scholes option-pricing model. Management utilized the Company's actual volatility in determining the expected volatility rate, estimated the expected life of the options using the simplified method allowed under certain accounting standards and determined the risk-free rate utilizing the Treasury yield for the expected life of the option contract. | |||||||||||||||||||||
The fair value and underlying assumptions for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair Value | $3.49 | - | $3.66 | $4.20 | - | $4.45 | $3.56 | - | $3.92 | ||||||||||||
Expected Dividend Yield | 3.53% | 2.22% | 1.82% | ||||||||||||||||||
Expected Volatility | 30.71 | % | - | 31.04% | 31.11 | % | - | 31.12% | 32 | % | - | 32.50% | |||||||||
Risk-Free Interest Rate | 1.85 | % | - | 1.90% | 1.19 | % | - | 1.74% | 0.86 | % | - | 1.10% | |||||||||
Expected Option Life in Years | 6.5 | 6.5 | 6.5 | ||||||||||||||||||
NOTE 9 - STOCK BASED COMPENSATION (Continued) | |||||||||||||||||||||
The following is a summary of the Bancorp’s unvested options as of December 31, 2014, 2013 and 2012 and the changes therein during the years then ended. | |||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Stock | Average | ||||||||||||||||||||
Options | Grant Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Unvested at December 31, 2011 | 322,530 | $ | 3.15 | ||||||||||||||||||
Granted | 146,550 | 3.57 | |||||||||||||||||||
Vested | (145,350 | ) | 3.1 | ||||||||||||||||||
Forfeited / Cancelled | (13,069 | ) | 3.17 | ||||||||||||||||||
Unvested at December 31, 2012 | 310,661 | $ | 3.36 | ||||||||||||||||||
Granted | 255,650 | 4.2 | |||||||||||||||||||
Vested | (90,787 | ) | 3.16 | ||||||||||||||||||
Forfeited / Cancelled | — | — | |||||||||||||||||||
Unvested at December 31, 2013 | 475,524 | $ | 3.85 | ||||||||||||||||||
Granted | 39,600 | 3.65 | |||||||||||||||||||
Vested | (125,521 | ) | 3.65 | ||||||||||||||||||
Forfeited / Cancelled | (20,100 | ) | 3.91 | ||||||||||||||||||
Unvested at December 31, 2014 | 369,503 | $ | 3.9 | ||||||||||||||||||
Expected future expense relating to the 369,503 non-vested options outstanding as of December 31, 2014 is $1.1 million over a weighted average period of 2.9 years. | |||||||||||||||||||||
The following is a summary of the status of the Bancorp’s restricted stock as of December 31, 2014, 2013 and 2012 and changes therein during the years then ended. | |||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Restricted | Average | ||||||||||||||||||||
Shares | Grant Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Unvested at December 31, 2011 | 119,990 | $ | 11.54 | ||||||||||||||||||
Granted | 69,950 | 13.14 | |||||||||||||||||||
Vested | (56,358 | ) | 11.46 | ||||||||||||||||||
Forfeited / Cancelled | (3,025 | ) | 12.08 | ||||||||||||||||||
Unvested at December 31, 2012 | 130,557 | $ | 12.41 | ||||||||||||||||||
Granted | 122,450 | 17 | |||||||||||||||||||
Vested | (27,075 | ) | 11.77 | ||||||||||||||||||
Forfeited / Cancelled | — | — | |||||||||||||||||||
Unvested at December 31, 2013 | 225,932 | $ | 14.98 | ||||||||||||||||||
Granted | 18,865 | 15.89 | |||||||||||||||||||
Vested | (47,525 | ) | 13.76 | ||||||||||||||||||
Forfeited / Cancelled | (8,650 | ) | 15.32 | ||||||||||||||||||
Unvested at December 31, 2014 | 188,622 | $ | 15.36 | ||||||||||||||||||
Expected future compensation expense relating to the 188,622 restricted shares at December 31, 2014 is $2.2 million over a weighted average period of 3.0 years. | |||||||||||||||||||||
NOTE 9 - STOCK BASED COMPENSATION (Continued) | |||||||||||||||||||||
In August 2011, the Company granted 10,668 shares (the "target shares") of performance-based restricted stock to certain executive officers of the Company. In August 2014, the Company awarded an additional 4,265 shares of performance-based restricted stock, which represented additional shares owed to participants under the August 2011 grant as the Company exceeded the performance targets under the 2011 award. This represented a total grant of 140% of the "target shares." The 14,933 shares had a grant date fair value of $12.39. | |||||||||||||||||||||
During 2013 and 2012, the Company granted 39,250 and 22,500 shares, respectively, of performance-based restricted stock to certain executive officers of the Company. For the purposes of the above table, the Company is assuming 100% of the "target shares" will be awarded. However, more or less shares may actually be awarded based on the performance of the Company at the applicable measurement date. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
INCOME TAXES | INCOME TAXES | ||||||||||||
The components of income tax expense (benefit) for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Federal: | |||||||||||||
Current | $ | 1,534 | $ | 3,330 | $ | 2,408 | |||||||
Deferred | 1,876 | (1,083 | ) | (140 | ) | ||||||||
3,410 | 2,247 | 2,268 | |||||||||||
State: | |||||||||||||
Current | 20 | — | — | ||||||||||
Deferred | (12 | ) | 16 | 50 | |||||||||
8 | 16 | 50 | |||||||||||
$ | 3,418 | $ | 2,263 | $ | 2,318 | ||||||||
The provision for income taxes differs from the statutory federal rate of 34% due to the following: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Federal income tax at statutory rate of 34% | $ | 3,948 | $ | 2,651 | $ | 2,509 | |||||||
Tax exempt interest, net | (295 | ) | (233 | ) | (62 | ) | |||||||
Bank-owned life insurance | (163 | ) | (160 | ) | (160 | ) | |||||||
ESOP compensation expense | 158 | 167 | 101 | ||||||||||
Other, net | 19 | 14 | 13 | ||||||||||
Dividends received from equity method investments | (61 | ) | (98 | ) | (49 | ) | |||||||
Dividends paid on benefit plans | (192 | ) | (89 | ) | (67 | ) | |||||||
State taxes, net | (140 | ) | (20 | ) | 304 | ||||||||
Increase (decrease) in valuation allowance | 144 | 31 | (271 | ) | |||||||||
Total Provision | $ | 3,418 | $ | 2,263 | $ | 2,318 | |||||||
Effective tax rate | 29.44 | % | 29.03 | % | 31.41 | % | |||||||
NOTE 10 - INCOME TAXES (Continued) | |||||||||||||
The net deferred tax asset consisted of the following components as of December 31, 2014 and 2013: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses, net | $ | 3,779 | $ | 3,920 | |||||||||
Provision for loss on assets acquired through foreclosure | 100 | 1,826 | |||||||||||
Nonaccrual interest | 89 | 274 | |||||||||||
Equity incentive plans | 1,398 | 1,187 | |||||||||||
Accrued expenses | 508 | 455 | |||||||||||
Deferred lease liability | 27 | 46 | |||||||||||
State net operating loss carryforward | 65 | 96 | |||||||||||
Unrealized losses on securities available-for-sale | — | 2,408 | |||||||||||
5,966 | 10,212 | ||||||||||||
Valuation allowance | (211 | ) | (67 | ) | |||||||||
5,755 | 10,145 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Prepaid expense deduction | 260 | 255 | |||||||||||
Mortgage servicing rights | 39 | 52 | |||||||||||
Loan origination costs | 25 | 28 | |||||||||||
Deferrable earnings on investments | 478 | 504 | |||||||||||
Depreciation of premises and equipment | 319 | 400 | |||||||||||
Unrealized gains on securities available-for-sale | 73 | — | |||||||||||
1,194 | 1,239 | ||||||||||||
Net Deferred Tax Asset | $ | 4,561 | $ | 8,906 | |||||||||
Based on the Company's history of earnings and its expectation of future taxable income, management anticipates that it is more likely than not that the above deferred tax assets will be realized, except for $211,000 of net deferred tax assets related to Fox Chase Bank's state taxes. | |||||||||||||
Retained earnings include $6.0 million at December 31, 2014, 2013 and 2012 for which no provision for federal income tax has been made. This amount represents deductions for bad debt reserves for tax purposes, which were only allowed to savings institutions that met certain criteria prescribed by the Internal Revenue Code of 1986, as amended. The Small Business Job Protection Act of 1996 (the "Act") eliminated the special bad debt deduction granted solely to thrifts. Under the terms of the Act, there would be no recapture of the pre-1988 (base year) reserves. However, these pre-1988 reserves would be subject to recapture under the rules of the Internal Revenue Code if the Company pays a cash dividend in excess of cumulative retained earnings or liquidates. | |||||||||||||
Approximately $65,000 of gross deferred tax assets were related to state tax net operating losses at December 31, 2014. Of this amount, $29,000 is related to the Bank and has a full valuation allowance of $29,000 on this deferred tax asset due to an expectation of such net operating losses expiring before being utilized. The remaining $36,000 of gross deferred tax assets were related to state tax net operating losses on Fox Chase Service Corporation and have no valuation allowance as it is more likely than not that it will be fully utilized before it expires. The Company has $414,000 of state net operating losses remaining as of December 31, 2014 for the Bank, which will begin to expire December 31, 2015. The Company has $363,000 of state net operating losses remaining as of December 31, 2014 for Fox Chase Service Corporation, which will begin to expire December 31, 2029. | |||||||||||||
As of December 31, 2014 and prior periods, the Company had no material unrecognized tax benefits or accrued interest and penalties. The Company's policy is to account for interest and penalties as a component of income tax expense. Federal and state tax years 2011 through 2013 were open for examination as of December 31, 2014. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | ||||||||
Lending Operations | |||||||||
The Company 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. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the statements of financial condition. | |||||||||
The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | |||||||||
A summary of the Company's financial instrument commitments at December 31, 2014 and 2013 is as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Commitments to grant loans | $ | 43,853 | $ | 31,401 | |||||
Unfunded commitments under lines of credit | 123,459 | 115,229 | |||||||
Standby letters of credit | 17,324 | 11,508 | |||||||
Commercial letters of credit | 413 | 411 | |||||||
$ | 185,049 | $ | 158,549 | ||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation. Collateral held varies, but includes principally residential or commercial real estate, accounts receivable or inventory. Fixed rate commitments to grant loans were $6.6 million and $4.0 million as of December 31, 2014 and December 31, 2013, respectively. The interest rates on these fixed rate loans ranged from 4.25% to 6.00% as of December 31, 2014 and 4.50% to 6.00% as of December 31, 2013. | |||||||||
Legal Proceedings | |||||||||
The Company is periodically subject to various pending and threatened legal actions, which involve claims for monetary relief. Based upon information presently available to the Company, it is the Company's opinion that any legal and financial responsibility arising from such claims will not have a material adverse effect on the Company's results of operations. | |||||||||
Service Contracts | |||||||||
The Company has entered into contracts with third-party providers to manage the Company's network operations, data processing and other related services. The projected amount of the Company's future minimum payments contractually due after December 31, 2014 is as follows (in thousands): | |||||||||
Year | Amount | ||||||||
2015 | $ | 1,690 | |||||||
2016 | 60 | ||||||||
2017 | 14 | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY | |||||||||||||||||||||
The Bancorp and Bank are subject to various regulatory capital requirements administered by their respective regulators, including a risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bancorp and Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bancorp and Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | ||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bancorp and Bank to maintain minimum amounts and ratios (set forth below) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets, and of Tier 1 capital to total assets, as defined. Management believes, as of December 31, 2014, that the Bancorp and Bank meet all capital adequacy requirements to which they were subject. | ||||||||||||||||||||||
As of December 31, 2014, the Bancorp and Bank were categorized as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bancorp or Bank's category. | ||||||||||||||||||||||
The Bancorp and Bank's actual capital amounts and ratios at December 31, 2014 and 2013 and the minimum amounts and ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions are as follows: | ||||||||||||||||||||||
Actual | For Capital | To be Well Capitalized under | ||||||||||||||||||||
Adequacy Purposes | Prompt Corrective Action Provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | ||||||||||||||||||||||
Bancorp | $ | 183,993 | 23.45 | % | $ | 62,758 | 8 | % | $ | 78,448 | 10 | % | ||||||||||
Bank | 156,976 | 20.02 | 62,743 | 8 | 78,428 | 10 | ||||||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||
Bancorp | 175,795 | 22.41 | 31,379 | 4 | 47,069 | 6 | ||||||||||||||||
Bank | 148,781 | 18.97 | 31,371 | 4 | 47,057 | 6 | ||||||||||||||||
Tier 1 capital (to adjusted assets) | ||||||||||||||||||||||
Bancorp | 175,795 | 16.58 | 42,420 | 4 | 53,026 | 5 | ||||||||||||||||
Bank | 148,781 | 13.99 | 42,551 | 4 | 53,188 | 5 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | ||||||||||||||||||||||
Bancorp | $ | 186,147 | 23.67 | % | $ | 62,905 | 8 | % | $ | 78,631 | 10 | % | ||||||||||
Bank | 153,206 | 19.48 | 62,903 | 8 | 78,629 | 10 | ||||||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||
Bancorp | 177,916 | 22.63 | 31,452 | 4 | 47,178 | 6 | ||||||||||||||||
Bank | 144,977 | 18.44 | 31,452 | 4 | 47,177 | 6 | ||||||||||||||||
Tier 1 capital (to adjusted assets) | ||||||||||||||||||||||
Bancorp | 177,916 | 16.18 | 43,971 | 4 | 54,964 | 5 | ||||||||||||||||
Bank | 144,977 | 13.12 | 44,194 | 4 | 55,242 | 5 | ||||||||||||||||
NOTE 12 - STOCKHOLDERS' EQUITY (Continued) | ||||||||||||||||||||||
The Bancorp's ability to pay dividends is limited by statutory and regulatory requirements. The Bancorp may not declare nor pay dividends on its stock if such declaration or payment would violate statutory or regulatory requirements. During 2014, the Bancorp paid total cash dividends of $0.60 per common share. During 2013, the Bancorp paid total cash dividends of $0.28 per common share. | ||||||||||||||||||||||
During the first quarter of 2014, the Bancorp received a $5.8 million dividend from the Bank, equaling the amount of the Bank's 2013 net income. The Bancorp did not receive any dividends from the Bank during 2013. | ||||||||||||||||||||||
The Bancorp repurchased 384,400 shares of common stock during the year ended December 31, 2014 in conjunction with stock repurchase programs. There were 218,752 shares repurchased during the year ended December 31, 2013. As of December 31, 2014, the aggregate purchases recorded as treasury stock, at cost, on the Bancorp's statement of condition is $39.7 million. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
FAIR VALUE | FAIR VALUE | ||||||||||||||||||||
Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of the respective year ends, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year end. | |||||||||||||||||||||
The Company determines the fair value of financial instruments using three levels of input: | |||||||||||||||||||||
Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. | |||||||||||||||||||||
Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, 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 for substantially the full term of the assets or liabilities. | |||||||||||||||||||||
Level 3 - Valuations are observed from unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||
The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2014 and 2013: | |||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
The carrying amounts of cash and cash equivalents approximate their fair value. | |||||||||||||||||||||
Investment and Mortgage Related Securities—Available-for-Sale and Held-to-Maturity | |||||||||||||||||||||
Fair values for investment securities and mortgage related securities are obtained from one external pricing service ("primary pricing service") as the provider of pricing on the investment portfolio on a quarterly basis. We generally obtain one quote per investment security. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. If quoted market prices are not available for comparable securities, fair value is based on quoted bids for the security or comparable securities. We review the estimates of fair value provided by the primary pricing service to determine if they are representative of fair value based upon our general knowledge of market conditions and relative changes in interest rates and the credit environment. The Company made no adjustments to the values obtained from the primary pricing service. | |||||||||||||||||||||
NOTE 13 - FAIR VALUE (Continued) | |||||||||||||||||||||
Loans Receivable, Net | |||||||||||||||||||||
To determine the fair values of loans that are not impaired, we employ discounted cash flow analyses that use interest rates and terms similar to those currently being offered to borrowers. We do not record loans at fair value on a recurring basis. We record fair value adjustments to impaired loans on a nonrecurring basis to reflect full and partial charge-offs due to impairment. For impaired loans, we use a variety of techniques to measure fair value, such as using the current appraised value of the collateral, agreements of sale, discounting the contractual cash flows, and analyzing market data that we may adjust due to specific characteristics of the loan or collateral. | |||||||||||||||||||||
FHLB Stock | |||||||||||||||||||||
The fair value of the FHLB stock is assumed to equal its cost, since the stock is nonmarketable but redeemable at its par value. | |||||||||||||||||||||
Mortgage Servicing Rights | |||||||||||||||||||||
The fair value of the MSRs was determined using a third-party valuation model that calculates the present value of estimated future servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds and discount rates. | |||||||||||||||||||||
Financial Assets Acquired from Debtors | |||||||||||||||||||||
The fair value of financial assets acquired from debtors are determined using sales prices from executed sale agreements. | |||||||||||||||||||||
Accrued Interest Receivable and Accrued Interest Payable | |||||||||||||||||||||
The carrying amount of accrued interest receivable and accrued interest payable approximates fair value. | |||||||||||||||||||||
Deposit Liabilities | |||||||||||||||||||||
Fair values for demand deposits (including NOW accounts), savings and club accounts and money market deposits are, by definition, equal to the amount payable on demand at the reporting date. Fair values of fixed-maturity certificates of deposit, including brokered deposits, are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar instruments with similar maturities. | |||||||||||||||||||||
Short-term Borrowings, FHLB Advances and Other Borrowed Funds | |||||||||||||||||||||
Fair values of short-term borrowings, FHLB advances and other borrowed funds are estimated using discounted cash flow analyses, based on rates currently available to the Bank for advances with similar terms and remaining maturities. | |||||||||||||||||||||
Derivative Contracts | |||||||||||||||||||||
The fair values of derivative contracts are based upon the estimated amount the Company would receive or pay to terminate the contracts or agreements, taking into account underlying interest rates, creditworthiness of underlying customers for credit derivatives and, when appropriate, the creditworthiness of the counterparties. | |||||||||||||||||||||
NOTE 13 - FAIR VALUE (Continued) | |||||||||||||||||||||
The estimated fair values of the Company’s financial instruments at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fair Value | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
Hierarchy | Amount | Fair | Amount | Fair | |||||||||||||||||
Level | Value | Value | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 17,213 | $ | 17,213 | $ | 11,947 | $ | 11,947 | ||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Investment securities available-for-sale | Level 2 | 8,388 | 8,388 | 10,489 | 10,489 | ||||||||||||||||
Private label commercial mortgage related securities | Level 3 | — | — | 2,120 | 2,120 | ||||||||||||||||
Agency residential mortgage related securities | Level 2 | 125,649 | 125,649 | 243,948 | 243,948 | ||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Private label residential mortgage related security | Level 2 | 2,979 | 2,985 | — | — | ||||||||||||||||
Agency residential mortgage related securities | Level 2 | 167,193 | 167,869 | 68,397 | 67,491 | ||||||||||||||||
Loans receivable, net | Level 3 | 724,326 | 732,142 | 720,490 | 721,417 | ||||||||||||||||
FHLB stock | Level 3 | 6,015 | 6,015 | 9,813 | 9,813 | ||||||||||||||||
Accrued interest receivable | Level 2, 3 | 3,147 | 3,147 | 3,308 | 3,308 | ||||||||||||||||
Mortgage servicing rights | Level 3 | 111 | 111 | 152 | 152 | ||||||||||||||||
Financial assets acquired from debtors | Level 3 | — | — | 1,938 | 1,938 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Savings and club accounts | Level 2 | 129,893 | 129,893 | 108,183 | 108,183 | ||||||||||||||||
Demand, NOW and money market deposits | Level 2 | 325,010 | 325,010 | 270,334 | 270,334 | ||||||||||||||||
Brokered deposits | Level 2 | 70,817 | 70,600 | 71,334 | 71,020 | ||||||||||||||||
Certificates of deposit | Level 2 | 186,189 | 186,154 | 223,864 | 225,357 | ||||||||||||||||
Short-term borrowings | Level 2 | 50,000 | 50,000 | 80,500 | 80,500 | ||||||||||||||||
FHLB advances | Level 2 | 120,000 | 123,189 | 150,000 | 154,069 | ||||||||||||||||
Other borrowed funds | Level 2 | 30,000 | 32,017 | 30,000 | 32,178 | ||||||||||||||||
Accrued interest payable | Level 2 | 311 | 311 | 314 | 314 | ||||||||||||||||
Derivative contracts | Level 2, 3 | 174 | 174 | 124 | 124 | ||||||||||||||||
The following financial instruments were classified as Level 3 and carried at fair value as of the dates indicated below: | |||||||||||||||||||||
• | Private label CMBS, the fair value of which are difficult to determine because they are not actively traded in securities markets. The net unrealized gain in the private label CMBS portfolio was $2,000 at December 31, 2013. | ||||||||||||||||||||
• | Two commercial loans, since lending credit risk is not an observable input for these loans (see Note 4). The unrealized gain on the two loans was $152,000 at December 31, 2014 compared to $125,000 at December 31, 2013. | ||||||||||||||||||||
• | Financial assets acquired from debtors were valued using executed sales agreements at December 31, 2013. Losses resulting from changes in fair value were $4.8 million for the year ended December 31, 2013. This loss was recorded in assets acquired through foreclosure expense in the consolidated statements of operations. | ||||||||||||||||||||
• | Credit derivatives are valued based on creditworthiness of the underlying borrower which is a significant unobservable input. The liability resulting from credit derivatives was $12,000 at December 31, 2014 and $4,000 at December 31, 2013. | ||||||||||||||||||||
NOTE 13 - FAIR VALUE (Continued) | |||||||||||||||||||||
The following measures were made on a recurring basis as of December 31, 2014 and 2013. | |||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||
Quoted Prices in Active Markets | Significant Other | Significant Other | |||||||||||||||||||
As of | for Identical Assets | Observable Inputs | Unobservable Inputs | ||||||||||||||||||
Description | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Available-for-Sale Securities: | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 302 | $ | — | $ | 302 | $ | — | |||||||||||||
Corporate securities | 8,086 | — | 8,086 | — | |||||||||||||||||
Agency residential mortgage related securities | 125,649 | — | 125,649 | — | |||||||||||||||||
Loans (1) | 2,451 | — | — | 2,451 | |||||||||||||||||
Derivative contracts (1) | (174 | ) | — | (162 | ) | (12 | ) | ||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||
Quoted Prices in Active Markets | Significant Other | Significant Other | |||||||||||||||||||
As of | for Identical Assets | Observable Inputs | Unobservable Inputs | ||||||||||||||||||
Description | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Available-for-Sale Securities: | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 308 | $ | — | $ | 308 | $ | — | |||||||||||||
Corporate securities | 10,181 | — | 10,181 | — | |||||||||||||||||
Private label commercial mortgage related securities | 2,120 | — | — | 2,120 | |||||||||||||||||
Agency residential mortgage related securities | 243,948 | — | 243,948 | — | |||||||||||||||||
Loans (1) | 2,535 | — | — | 2,535 | |||||||||||||||||
Financial assets acquired from debtors | 1,938 | — | — | 1,938 | |||||||||||||||||
Derivative contracts (1) | (124 | ) | — | (120 | ) | (4 | ) | ||||||||||||||
(1) Such financial instruments are recorded at fair value as further described in Note 4. | |||||||||||||||||||||
The following measures were made on a non-recurring basis as of December 31, 2014 and 2013: | |||||||||||||||||||||
Loans, which were partially charged off at December 31, 2014 and 2013. The loans’ fair values are based on Level 3 inputs, which are either an appraised value or a sales agreement, less costs to sell. These amounts do not include fully charged-off loans, because we carry fully charged-off loans at zero on our balance sheet. | |||||||||||||||||||||
MSRs, the fair value of which was determined using a third-party valuation model that calculates the present value of estimated future servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds and discount rates. | |||||||||||||||||||||
Other real estate owned, for which we used Level 3 inputs, which consist of appraisals, agreements of sale or letters of intent. | |||||||||||||||||||||
NOTE 13 - FAIR VALUE (Continued) | |||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||
Quoted Prices in Active Markets | Significant Other | Significant Other | |||||||||||||||||||
for Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Balance | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-14 | (In thousands) | ||||||||||||||||||||
Loans | $ | 1,654 | $ | — | $ | — | $ | 1,654 | |||||||||||||
Mortgage servicing rights | 111 | — | — | 111 | |||||||||||||||||
Other real estate owned | 2,814 | — | — | 2,814 | |||||||||||||||||
Total | $ | 4,579 | $ | — | $ | — | $ | 4,579 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Loans | $ | 912 | $ | — | $ | — | $ | 912 | |||||||||||||
Mortgage servicing rights | 152 | — | — | 152 | |||||||||||||||||
Other real estate owned | 4,314 | — | — | 4,314 | |||||||||||||||||
Total | $ | 5,378 | $ | — | $ | — | $ | 5,378 | |||||||||||||
The following tables include a roll forward of the financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3), on a recurring basis, for the periods from December 31, 2012 to December 31, 2014. | |||||||||||||||||||||
Private Label | Derivative | Financial Assets | Loans | Total | |||||||||||||||||
Commercial Mortgage | Contracts | Acquired | |||||||||||||||||||
Related Securities | from Debtors | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Beginning balance, December 31, 2012 | $ | 6,197 | $ | (12 | ) | $ | 3,714 | $ | 2,806 | $ | 12,705 | ||||||||||
Purchases/additions | — | (5 | ) | 1,994 | — | 1,989 | |||||||||||||||
Sales | — | — | (120 | ) | — | (120 | ) | ||||||||||||||
Payments (received) made | (3,998 | ) | — | 1,143 | (104 | ) | (2,959 | ) | |||||||||||||
Premium amortization, net | (3 | ) | — | — | — | (3 | ) | ||||||||||||||
(Decrease) increase in value | (76 | ) | 13 | (4,793 | ) | (167 | ) | (5,023 | ) | ||||||||||||
Ending balance, December 31, 2013 | $ | 2,120 | $ | (4 | ) | $ | 1,938 | $ | 2,535 | $ | 6,589 | ||||||||||
Purchases/additions | — | (12 | ) | — | — | (12 | ) | ||||||||||||||
Sales | — | — | (1,938 | ) | — | (1,938 | ) | ||||||||||||||
Payments received | (2,118 | ) | — | — | (112 | ) | (2,230 | ) | |||||||||||||
Premium amortization, net | — | — | — | — | — | ||||||||||||||||
(Decrease) increase in value | (2 | ) | 4 | — | 28 | 30 | |||||||||||||||
Ending balance, December 31, 2014 | $ | — | $ | (12 | ) | $ | — | $ | 2,451 | $ | 2,439 | ||||||||||
There were no transfers made between levels during the years ended December 31, 2014 or 2013. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS |
Transactions with Directors, Officers and Employees | |
The Company may from time to time enter into transactions with its directors, officers and employees. Such transactions are made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with others unrelated to the Bank, and do not, in the opinion of management, involve more than the normal credit risk or present other unfavorable features. | |
There were no loans to directors and executive officers as of December 31, 2014 and 2013. | |
Equity Method Investments | |
As of December 31, 2014, 2013 and 2012, Fox Chase Bank owned approximately 45% of Philadelphia Mortgage Advisors, Inc. ("PMA"). During 2014, 2013 and 2012, the Company engaged in certain business activities with PMA. These activities included providing a warehouse line of credit to PMA, as well as acquiring residential mortgage loans from PMA. The Company recorded interest income from PMA on the warehouse line of $269,000, $307,000, and $460,000 for the years ended December 31, 2014, 2013 and 2012, respectively, as well as loan satisfaction fees, which are recorded in service charges and other fee income, of $35,000, $47,000 and $66,000 for the years ended December 31, 2014, 2013 and 2012, respectively. The balance outstanding on the warehouse line was $11.7 million and $4.4 million at December 31, 2014 and 2013, respectively. In addition, the Company acquired total loans from PMA of $668,000, $892,000 and $14.4 million for the years ended December 31, 2014, 2013 and 2012, respectively, which includes the cost of the loans. | |
The Company's investment in PMA was $2.1 million at December 31, 2014 and 2013 and was included in other assets on the consolidated statements of condition. | |
PMA had total assets of $20.5 million and $12.9 million as of December 31, 2014 and 2013, respectively. PMA had total liabilities of $16.4 million and $8.7 million as of December 31, 2014 and 2013, respectively. PMA had net revenues of $5.3 million, $7.0 million and $7.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. PMA had expenses (including income taxes) of $4.9 million, $6.0 million and $6.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. PMA had net income of $379,000, $949,000 and $1.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
ACCOUNTING_PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS |
ASU No. 2013-11-Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). As a result of applying this ASU, an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss ("NOL") or other tax credit carryforward when settlement in this manner is available under the tax law. The assessment of whether settlement is available under the tax law would be based on facts and circumstances as of the balance sheet reporting date and would not consider future events (e.g., upcoming expiration of related NOL carryforwards). This classification should not affect an entity's analysis of the realization of its deferred tax assets. Gross presentation in the roll forward of unrecognized tax positions in the notes to the financial statements will still be required. For the Company, the update was effective prospectively for annual reporting periods beginning on or after January 1, 2014, and interim periods within those annual periods. Retrospective application is permitted. Adoption of this ASU did not have a material impact on the Company's consolidated financial statements. | |
ASU No. 2014-04 - Troubled Debt Restructuring by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force). The amendments in this update apply to all creditors who obtain physical possession (resulting from an in substance repossession or foreclosure) of residential real estate property collateralizing a consumer mortgage loan in satisfaction of a receivable. The objective of the amendments in this update is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to requirements of the applicable jurisdiction. The amendments in this update are effective for the Company for annual reporting periods beginning on or after January 1, 2015, and interim periods within those annual periods. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements, but is expected to result in additional disclosures. | |
NOTE 15 - ACCOUNTING PRONOUNCEMENTS (Continued) | |
ASU No. 2014-09 - Revenue from Contracts with Customers (Topic 660). This update requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
ASU No. 2014-11 - Transfers and Servicing (Topic 860) - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this update change the accounting for repurchase-to-maturity transactions and enhances the required disclosures for repurchase agreements and other similar transactions. Repurchase-to-maturity transactions will be accounted for as secured borrowings rather than sales of assets with separate forward repurchase or resale commitments. Transactions which include the initial transfer of financial assets and a repurchase financing involving the same or substantially the same asset with the same counterparty that are entered into contemporaneously with, or in contemplation of, one another will be accounted for as two separate transactions. This will result in the initial transfer being accounted for as a sale (if derecognition criteria are met) and a purchase by the counterparty and both parties accounting for the repurchase financing as a secured borrowing. The update also requires new disclosures for transactions similar to repurchases in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets. It also requires additional disclosures about the nature of collateral pledged in repurchases that are accounted for as secured borrowings. The accounting changes in the standard and the disclosures for transactions accounted for as sales are effective for the Company for interim and annual periods beginning on or after January 1, 2015. The disclosures for repurchases, securities lending transactions, and repurchases-to-maturity accounted for as secured borrowings are required for the Company for annual periods beginning on or after January 1, 2015, and interim periods beginning on or after April 1, 2015. Early application is prohibited. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements, but is expected to result in additional disclosures related to the Company's secured borrowings. | |
ASU No. 2014-12 - Compensation-Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period a consensus of the FASB Emerging Issues Task Force. The amendments in this update require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The amendments in this update are effective for the Company for annual periods and interim periods beginning on or after January 1, 2016. Earlier adoption is permitted. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. | |
ASU No. 2014-13 - Consolidation (Topic 810) - Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity. This update clarifies the measurement of the financial assets and the financial liabilities of a consolidated collateralized financing entity, such as a collateralized debt obligation (CDO) or collateralized loan obligation (CLO) entity. The amendments in this update are effective for the Company for annual periods and interim periods beginning on or after January 1, 2016. Earlier adoption is permitted. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements as the Company does not have consolidated collateralized financing entities. | |
ASU No. 2014-14 - Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure a Consensus of the FASB Emerging Issues Task Force. The objective of this update is to reduce the diversity in classification of government-guaranteed mortgage loans, including FHA or VA guaranteed loans, upon foreclosure. The amendments in this update are effective for the Company for annual periods and interim periods beginning on or after January 1, 2016. Earlier adoption is permitted. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements as the Company does not hold any government-guaranteed mortgage loans. | |
NOTE 15 - ACCOUNTING PRONOUNCEMENTS (Continued) | |
ASU No. 2014-15 - Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The amendments in this update require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for the Company for the annual period ending December 31, 2016 and annual and interim periods thereafter. Earlier application is permitted. Application of this ASU is not expected to have a material impact on the Company's consolidated financial statements. |
PARENT_COMPANY_ONLY_FINANCIAL_
PARENT COMPANY ONLY FINANCIAL STATEMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
PARENT COMPANY ONLY FINANCIAL STATEMENTS | PARENT COMPANY ONLY FINANCIAL STATEMENTS | ||||||||||||
The following condensed financial statements for Fox Chase Bancorp, Inc. (parent company only) reflect the investment in its wholly owned subsidiary, Fox Chase Bank, using the equity method of accounting. | |||||||||||||
CONDENSED BALANCE SHEET | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 290 | $ | 99 | |||||||||
Interest-earning deposits with banks | 19,994 | 25,934 | |||||||||||
Total cash and cash equivalents | 20,284 | 26,033 | |||||||||||
Investment in subsidiary | 148,897 | 140,527 | |||||||||||
Due from subsidiary, net | 1,020 | 888 | |||||||||||
ESOP loans | 5,525 | 6,109 | |||||||||||
Other assets | 261 | 20 | |||||||||||
Total Assets | 175,987 | 173,577 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Other liabilities | 76 | 110 | |||||||||||
Total Liabilities | 76 | 110 | |||||||||||
Stockholders' Equity | 175,911 | 173,467 | |||||||||||
Total Liabilities and Stockholders' Equity | $ | 175,987 | $ | 173,577 | |||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
INCOME | |||||||||||||
Interest on deposits with banks | $ | 37 | $ | 37 | $ | 66 | |||||||
Interest on ESOP loans | 365 | 400 | 432 | ||||||||||
Total Income | 402 | 437 | 498 | ||||||||||
EXPENSES | |||||||||||||
Other expenses | 906 | 996 | 1,000 | ||||||||||
Total Expenses | 906 | 996 | 1,000 | ||||||||||
Loss before income tax benefit and equity in undistributed net earnings of subsidiary | (504 | ) | (559 | ) | (502 | ) | |||||||
Income tax benefit | (171 | ) | (280 | ) | (171 | ) | |||||||
Loss before equity in undistributed net earnings of subsidiary | (333 | ) | (279 | ) | (331 | ) | |||||||
Equity in undistributed net earnings of subsidiary | 8,528 | 5,813 | 5,393 | ||||||||||
Net Income | $ | 8,195 | $ | 5,534 | $ | 5,062 | |||||||
NOTE 16 - PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued) | |||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Cash Flows From Operating Activities | |||||||||||||
Net income | $ | 8,195 | $ | 5,534 | $ | 5,062 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed income of subsidiary | (8,528 | ) | (5,813 | ) | (5,393 | ) | |||||||
(Increase) decrease in due from subsidiary, net | (132 | ) | (907 | ) | 259 | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | (86 | ) | (59 | ) | (88 | ) | |||||||
(Increase) decrease in other assets | (155 | ) | 588 | (308 | ) | ||||||||
(Decrease) increase in other liabilities | (34 | ) | (2 | ) | 130 | ||||||||
Net Cash Used in Operating Activities | (740 | ) | (659 | ) | (338 | ) | |||||||
Cash Flows from Investing Activities | |||||||||||||
Loan payment received on ESOP loans | 584 | 550 | 516 | ||||||||||
Cash dividends received from subsidiary | 5,813 | — | 21,281 | ||||||||||
Net Cash Provided by Investing Activities | 6,397 | 550 | 21,797 | ||||||||||
Cash Flows from Financing Activities | |||||||||||||
Purchase of treasury stock | (6,262 | ) | (3,703 | ) | (9,911 | ) | |||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | 86 | 59 | 88 | ||||||||||
Receipts from subsidiary related to equity compensation activity | 1,248 | 3,316 | 646 | ||||||||||
Common stock issued for exercise of stock options | 439 | 106 | 480 | ||||||||||
Cash dividends paid | (6,917 | ) | (3,243 | ) | (2,382 | ) | |||||||
Net Cash Used in Financing Activities | (11,406 | ) | (3,465 | ) | (11,079 | ) | |||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (5,749 | ) | (3,574 | ) | 10,380 | ||||||||
Cash and Cash Equivalents—Beginning | 26,033 | 29,607 | 19,227 | ||||||||||
Cash and Cash Equivalents—Ending | $ | 20,284 | $ | 26,033 | $ | 29,607 | |||||||
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||||||||||||||||
The following represents summarized quarterly financial data of Fox Chase Bancorp, Inc. and subsidiary, which, in the opinion of management, reflects all adjustments (comprising only normal recurring accruals) necessary for a fair presentation. The Company reported net income of $2.1 million for the quarter ended December 31, 2014 and net income of $1.5 million for the quarter ended December 31, 2013. | |||||||||||||||||||||||||||||||||
The net income for the quarter ended December 31, 2014 included a provision for loan losses of $350,000 and valuation adjustments of assets acquired through foreclosure of $23,000, which is recorded in noninterest expense. | |||||||||||||||||||||||||||||||||
The net income for the quarter ended December 31, 2013 included a provision for loan losses of $450,000 and a valuation adjustment of assets acquired through foreclosure of $713,000, which is recorded in noninterest expense. | |||||||||||||||||||||||||||||||||
Three Months Ended | 12/31/14 | 9/30/14 | 6/30/14 | 3/31/14 | 12/31/13 | 9/30/13 | 6/30/13 | 3/31/13 | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||
Interest income | $ | 9,840 | $ | 10,153 | $ | 10,078 | $ | 10,058 | $ | 10,291 | $ | 10,141 | $ | 9,825 | $ | 9,872 | |||||||||||||||||
Interest expense | 1,606 | 1,635 | 1,653 | 1,741 | 1,843 | 1,909 | 1,958 | 1,959 | |||||||||||||||||||||||||
Net interest income | 8,234 | 8,518 | 8,425 | 8,317 | 8,448 | 8,232 | 7,867 | 7,913 | |||||||||||||||||||||||||
Provision (Credit) for loan losses | 350 | 1,493 | 100 | — | 450 | 675 | (783 | ) | 640 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 7,884 | 7,025 | 8,325 | 8,317 | 7,998 | 7,557 | 8,650 | 7,273 | |||||||||||||||||||||||||
Noninterest income | 678 | 642 | 514 | 459 | 568 | 1,029 | 1,139 | 1,054 | |||||||||||||||||||||||||
Noninterest expense | 5,621 | 5,198 | 5,419 | 5,993 | 6,487 | 7,002 | 8,307 | 5,675 | |||||||||||||||||||||||||
Income before taxes | 2,941 | 2,469 | 3,420 | 2,783 | 2,079 | 1,584 | 1,482 | 2,652 | |||||||||||||||||||||||||
Income tax provision | 833 | 653 | 1,105 | 827 | 589 | 411 | 438 | 825 | |||||||||||||||||||||||||
Net Income | $ | 2,108 | $ | 1,816 | $ | 2,315 | $ | 1,956 | $ | 1,490 | $ | 1,173 | $ | 1,044 | $ | 1,827 | |||||||||||||||||
Per Common Share Data | |||||||||||||||||||||||||||||||||
Weighted average common shares—basic | 11,127,377 | 11,287,884 | 11,291,452 | 11,294,883 | 11,272,233 | 11,247,741 | 11,262,144 | 11,376,054 | |||||||||||||||||||||||||
Weighted average common shares—diluted | 11,366,427 | 11,523,917 | 11,534,163 | 11,555,104 | 11,535,589 | 11,494,520 | 11,489,566 | 11,602,633 | |||||||||||||||||||||||||
Net income per share—basic | $ | 0.19 | $ | 0.16 | $ | 0.21 | $ | 0.17 | $ | 0.13 | $ | 0.1 | $ | 0.09 | $ | 0.16 | |||||||||||||||||
Net income per share—diluted | $ | 0.19 | $ | 0.16 | $ | 0.2 | $ | 0.17 | $ | 0.13 | $ | 0.1 | $ | 0.09 | $ | 0.16 | |||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation | |
The consolidated financial statements include the accounts of the Bancorp and the Bank. The Bank’s operations include the accounts of its wholly owned subsidiaries, Fox Chase Financial, Inc., Fox Chase Service Corporation, 104 S. Oakland Ave., LLC and Davisville Associates, LLC. Fox Chase Financial, Inc. is a Delaware-chartered investment holding company and its sole purpose is to manage and hold investment securities. Fox Chase Service Corporation is a Pennsylvania-chartered company and its purpose is to facilitate the Bank’s investment in PMA. 104 S. Oakland Ave., LLC is a New Jersey-chartered limited liability company formed to secure, manage and hold foreclosed real estate. Davisville Associates, LLC is a Pennsylvania-chartered limited liability company formed to secure, manage and hold foreclosed real estate. All material inter-company transactions and balances have been eliminated in consolidation. Prior period amounts are reclassified, when necessary, to conform with the current year’s presentation. | ||
The Company follows accounting principles and reporting practices that are in compliance with U.S. generally accepted accounting principles ("GAAP"). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation and realizability of deferred tax assets, the evaluation of other-than-temporary impairment and the valuation of investment securities and assets acquired through foreclosure. | ||
Risk and Uncertainties | Risk and Uncertainties | |
In the normal course of its business, the Company encounters two significant types of risk: economic risk and regulatory risk. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on a different basis, from its interest-earning assets. The Company's primary credit risk is the risk of defaults in the Company's loan portfolio that result from borrowers' inability or unwillingness to make contractually required payments. The Company's lending activities are concentrated in Southeastern Pennsylvania and Southern New Jersey. The ability of the Company's borrowers to repay amounts owed is dependent on several factors, including the economic conditions in the borrowers' geographic regions and the borrowers' financial conditions. The Company also has credit risk related to the risk of defaults in its investment securities portfolio. The ability of the Company to realize the full value of its investment securities upon sale or maturity depends on several factors, including the cash flows, credit enhancements and underlying structures of the individual investment securities. Market risk reflects changes in the value of the collateral underlying loans, the valuation of assets acquired through foreclosure, and the valuation of securities, mortgage servicing assets and other investments. | ||
The Company is subject to the regulations of certain federal and state banking agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by regulatory agencies which may subject it to further changes with respect to asset valuations, amounts of required loan loss allowances and operating restrictions resulting from the regulators’ judgments based on information available to them at the time of their examinations. | ||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks and interest-earning demand deposits in other banks. At times, such balances exceed the FDIC limits for insurance coverage. | ||
The Company accounts for cash accounts that are in a net overdraft position as a liability and reports changes in book overdraft positions in operating cash flows. | ||
Investment and Mortgage Related Securities | Investment and Mortgage Related Securities | |
The Company accounts for its investment securities in accordance with standards that require, among other things, that debt and equity securities are classified into three categories and accounted for as follows: | ||
• | Debt securities with the positive intention to hold to maturity are classified as "held-to-maturity" and reported at amortized cost. | |
• | Debt and equity securities purchased with the intention of selling them in the near future are classified as "trading securities" and are reported at fair value, with unrealized gains and losses included in earnings. As of the balance sheet dates, the Company did not have any trading securities. | |
• | Debt and equity securities not classified in either of the above categories are classified as "available-for-sale securities" and reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, as increases or decreases in accumulated other comprehensive income (loss), a separate component of stockholders' equity. Securities classified as available-for-sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including movement in interest rates, changes in the maturity or mix of the Company's assets and liabilities, liquidity needs, regulatory capital considerations and other factors. | |
Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. | ||
The Company records other-than-temporary impairment charges, through earnings, if they have the intent to sell, or will more likely than not be required to sell, an impaired debt security before a recovery of its amortized cost basis. In addition, the Company records other-than-temporary impairment charges through earnings for the amount of credit losses, regardless of the intent or requirement to sell. Credit loss is measured as the difference between the present value of an impaired debt security's cash flows and its amortized cost basis. Non-credit related write-downs to fair value are recorded as decreases to accumulated other comprehensive income as long as the Company has no intent or requirement to sell an impaired security before a recovery of amortized cost basis. | ||
Purchase premiums and discounts are recognized in interest income using the interest method over the expected life for mortgage related securities and the contractual life for all other securities. Because of volatility of the financial markets in which securities are traded, there is the risk that any future fair value could be significantly less than that recorded or disclosed in the accompanying financial statements. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | ||
Loans, Loan Origination Fees and Uncollected Interest | Loans, Loan Origination Fees and Uncollected Interest | |
Loans are recorded at cost, net of unearned discounts, deferred fees and allowances. Discounts or premiums on purchased loans are amortized using the interest method over the remaining contractual life of the purchased loans, adjusted for actual prepayments. Loan origination fees and certain direct origination costs are deferred and amortized using the interest method over the contractual life as an adjustment to yield on the loans. Interest income is accrued on the unpaid principal balance. From time-to-time, the Company sells certain loans for liquidity purposes or to manage interest rate risk. | ||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||
The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan that is more than 90 days past due may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest income is reversed and the amortization of net deferred loan fees is suspended. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management's judgment as to the ultimate collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. | ||
Allowance for Loan Losses | Allowance for Loan Losses | |
The allowance for loan losses is adjusted through provisions for loan losses charged against or credited to income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. | ||
The allowance for loan losses is maintained at a level representing management's best estimate of known risks and inherent losses in the portfolio, based upon management's evaluation of the portfolio's collectability. Our methodology for assessing the appropriateness of the allowance for loan losses consists of an allowance on impaired loans and a general valuation allowance on the remainder of the portfolio. Although we determine the amount of each element of the allowance separately, the entire allowance for loan losses is available for losses on the entire portfolio. | ||
Loans are deemed impaired when, based on current information and events, it is probable that the Company will be unable to collect all proceeds due according to the contractual terms of the loan agreement or when a loan is classified as a troubled debt restructuring. Factors considered by management in determining impairment include payment status, borrower cash flow, collateral value and the probability of collecting scheduled principal and interest payments when due. Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan's original effective interest rate, the loan's obtainable market price or the fair value of the collateral less costs to sell if the loan is collateral dependent. The Company establishes an allowance for loan loss in the amount of the difference between fair value of the impaired loan and the loan's carrying amount. | ||
We establish a general allowance for loans that are not considered impaired to recognize the inherent losses associated with lending activities. This general valuation allowance is determined by segmenting the loan portfolio by loan segments (described below) and assigning reserve factors to each category. The reserve factors are calculated using the Company's historical losses and loss emergence periods, and are adjusted for significant factors that, in management's judgment, affect the collectability of the portfolio as of the evaluation date. These significant factors include: | ||
• | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses. | |
• | Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. | |
• | Changes in the nature and volume of the portfolio and in the terms of loans. | |
• | Changes in the experience, ability, and depth of lending management and other relevant staff. | |
• | Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. | |
• | Changes in the quality of the institution’s loan review system. | |
• | Changes in the value of underlying collateral for collateral-dependent loans. | |
• | The existence and effect of any concentrations of credit, and changes in the level of such concentrations. | |
• | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. | |
These reserve factors are subject to ongoing evaluation to ensure their relevance as compared to historical losses in the current environment. We perform this systematic analysis of the allowance on a quarterly basis. These criteria are analyzed and the allowance is developed and maintained at the segment level. | ||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||
Additional risk is associated with the analysis of the allowance for loan losses as such evaluations are highly subjective, and future adjustments to the allowance may be necessary if conditions differ substantially from the assumptions used in making the evaluations. In addition, various regulatory agencies periodically review the Company's allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance, based on their judgments at the time of their examination. | ||
The loan segments utilized by management to develop the allowance for loan losses are (1) one- to four-family real estate, (2) multi-family and commercial real estate, (3) construction, (4) consumer and (5) commercial and industrial loans. | ||
One- to four-family real estate lending risks generally include the borrower's ability to make repayment from his or her employment or other income, and if the borrower defaults, the ability to obtain repayment from sale of the underlying collateral securing the loan. Risk associated with one- to four-family lending would be higher during a period of increased unemployment or reduced real estate value. | ||
Multi-family and commercial real estate lending risks generally relate to the borrower's creditworthiness and the feasibility and cash flow potential of the underlying project. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to adverse conditions in the real estate market or the economy. | ||
Construction lending is generally considered to have a higher degree of lending risk than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property's value at completion of construction, the estimated cost (including interest) of construction and the ability of the project to be sold or refinanced upon completion. | ||
Commercial and industrial loans are typically made on the basis of the borrower's ability to make repayment from the cash flows of the borrower's underlying business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. Further, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value. | ||
Consumer lending includes unsecured lending or loans secured by assets that depreciate rapidly. In such cases, repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and the remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower's continuing financial stability. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. | ||
Troubled Debt Restructurings | Troubled Debt Restructurings | |
Loans are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring ("TDR") generally involve a reduction in interest rate, extension of a loan's stated maturity date, temporary deferral of payments, principal forgiveness, or granting credit to a borrower who is unable to obtain credit from another financial institution. Accrual of interest continues upon modification if the borrower has demonstrated a history of making payment as contractually due and has provided evidence which supports the borrower's ability to make payments. The accrual of interest income on accruing troubled debt restructurings is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about continued collectability of principal or interest, even though the loan is currently performing. Troubled debt restructurings which are subsequently reported as non-accrual remain as such until they demonstrate consistent payment performance for a minimum period of six months. TDRs that have performed in accordance with the new terms for six consecutive months, are in a current status, reflect a market rate of interest at the time of the restructuring and cross over a year end are considered cured and are no longer classified as TDRs. All loans classified as troubled debt restructurings are considered impaired. | ||
Bank-Owned Life Insurance | Bank-Owned Life Insurance | |
The Company has invested in bank-owned life insurance ("BOLI"). BOLI involves the purchasing of life insurance by the Company on a chosen group of employees and directors. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies is included in noninterest income in the consolidated statements of operations. | ||
Premises and Equipment | Premises and Equipment | |
Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the assets' estimated useful lives or, for leasehold improvements, over the life of the related lease if less than the estimated useful life of the asset. The estimated useful life is generally 10-39 years for buildings and 1-7 years for furniture and equipment. When | ||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||
assets are retired, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts. The cost of maintenance and repairs is charged to expense when incurred and renewals and improvements are capitalized. Rental concessions on leased properties are recognized over the life of the lease. | ||
Assets Acquired through Foreclosure | Assets Acquired through Foreclosure | |
Assets acquired through foreclosure consists of other real estate owned and financial assets acquired from debtors. These assets are obtained through foreclosure, by a deed-in-lieu of foreclosure, in-substance foreclosure or in exchange for satisfaction of debt. | ||
Other real estate owned is initially recorded at fair value less costs to sell. In periods subsequent to acquisition, each real estate asset is carried at the lower of the fair value of the asset, less estimated selling costs, or the amount at which the asset was initially recorded. Costs related to the development or improvement of an acquired property are capitalized. Holding costs and declines in carrying value after acquisition are recorded as assets acquired through foreclosure expense in the consolidated statements of operations. | ||
Financial assets acquired from debtors are carried at fair value under the fair value option in accordance with FASB ASC 825 "Financial Instruments." Increases or decreases in fair value after acquisition are recorded as assets acquired through foreclosure expense in the consolidated statements of operations. | ||
Real Estate Held for Investment | Real Estate Held for Investment | |
Real estate held for investment is carried at cost and is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. As of December 31, 2014 and December 31, 2013, real estate held for investment represented undeveloped land located in Absecon, New Jersey. The property was acquired by the Company in 2003 to expand the Company's retail branch network in southern New Jersey. | ||
In accordance with regulatory guidelines, because this real estate held for investment was not sold or placed in service by June 2011 (eight years from acquisition), for regulatory reporting purposes, the full amount of this asset is recorded as a reduction of risk-based capital at December 31, 2014 and 2013. | ||
Mortgage Servicing Rights | Mortgage Servicing Rights | |
Upon the sale of a residential mortgage loan where the Company retains servicing rights, a mortgage servicing right is recorded. GAAP requires that mortgage servicing rights on these loans be amortized into income over the estimated life of the loans sold using the interest method. At each reporting period, such assets are subject to an impairment test. The impairment test stratifies servicing assets based on predominant risk characteristics of the underlying financial assets. The Company has stratified its mortgage servicing assets by date of sale, which approximates date of origination. | ||
In conjunction with the impairment test, the Company records a valuation allowance when the fair value of the stratified servicing asset is less than amortized cost. Subsequent changes in the valuation of the assets are recorded as either an increase or a reduction of the valuation allowance, however, if the fair value exceeds amortized cost, such excess will not be recognized. As of December 31, 2014, the gross value of the servicing rights was $210,000, the valuation allowance was $99,000, providing for a net balance of $111,000. | ||
Transfers of Financial Assets | Transfers of Financial Assets | |
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. | ||
Income Taxes | Income Taxes | |
The Company accounts for income taxes under the asset/liability method. Deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company files a consolidated federal income tax return and its subsidiaries file individual state income tax returns. | ||
The Company recognizes a tax position if it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If the tax position meets the more-likely-than-not recognition threshold, the position is measured to determine the amount of the benefit to recognize and is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. The Company has no | ||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||
material tax exposure matters that were accrued as of December 31, 2014 and 2013. The Company's policy is to account for interest and penalties as components of income tax expense. | ||
Equity Method Investments | Equity Method Investments | |
Under the equity method, the Company recognizes its portion of net income of unconsolidated affiliates, net of eliminations, in equity in earnings of affiliate on the consolidated statements of operations. Equity method investments are included in other assets on the consolidated statements of condition. | ||
Marketing and Advertising | Marketing and Advertising | |
The Company expenses marketing and advertising costs as incurred. | ||
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments | |
In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the balance sheet when they are funded. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. | ||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |
Certain of the Company's financial instruments are carried at fair value. Generally, fair value is the price that a willing buyer and a willing seller would agree upon in an other than a distressed sale situation. Because of the uncertainties inherent in determining fair value, fair value estimates may not be precise. Many of the fair value estimates are based on highly subjective judgments and assumptions made about market information and economic conditions. See Note 13 for a detailed discussion of fair value measurements and methodology used to determine fair value. | ||
Employee Stock Ownership Plan | Employee Stock Ownership Plan | |
The ESOP borrowed funds from the Bancorp to purchase shares of common stock of the Bancorp. The funds borrowed by the ESOP from Bancorp to purchase shares of common stock in 2006 are being repaid from the Bank's contributions over a period of 15 years from 2006 to 2020. The funds borrowed by the ESOP from the Bancorp to purchase shares of common stock in 2010 are being repaid from the Bank's contributions over a period of 14.5 years from 2010 to 2024. The Bancorp's common stock not yet allocated to participants is recorded as a reduction of stockholders' equity at cost. The Bancorp's loans to the ESOP and the ESOP's note payables are not reflected in the consolidated statements of condition. Compensation expense for the ESOP is based on the average market price of the Company's stock and is recognized as shares are committed to be released to participants. The notes receivable and related interest income are included in the parent company financial statements presented in Note 16. | ||
For purposes of computing basic and diluted earnings per share, ESOP shares that have been committed to be released are considered outstanding. ESOP shares that have not been committed to be released are not considered outstanding. | ||
Stock Based Compensation | Stock Based Compensation | |
The Company grants equity awards to employees, consisting of stock options, performance awards and restricted stock, under its Long-Term Incentive Plan, its 2007 Equity Incentive Plan and its 2011 Equity Incentive Plan. The Company classifies share-based compensation for employees and outside directors within "Salaries, benefits and other compensation" in the consolidated statements of operations to correspond with the same line item as compensation paid. Additionally, the Company reports (1) the expense associated with the grants as an adjustment to operating cash flows and (2) any benefits of realized tax deductions in excess of previously recognized tax benefits on compensation expense as a financing cash flow. Excess tax benefits totaled $86,000, $59,000 and $88,000 in 2014, 2013 and 2012, respectively. | ||
Stock options vest over a five-year service period and expire ten years after grant date. The Company recognizes compensation expense for the fair values of stock options using the straight-line method over the requisite service period for the entire award. | ||
Non-performance based restricted shares vest over a five-year service period. The Company recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award. | ||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) | ||
Performance-based restricted shares vest over a five-year period based on service and achievement of performance metrics. The performance metrics to be evaluated during the performance period are (1) return on assets compared to peer group and (2) earnings per share growth rate compared to peer group. On the third anniversary of the grant date, the Company's level of performance relative to the performance metrics are evaluated and, if such performance metrics have been achieved, an amount of shares that will vest at that time and over the following two years will be determined. The number of shares eligible to vest can range from 0% to 150% of the shares identified on grant date (the "target shares"). Of the shares that will vest, 50% of the shares vest on the third anniversary of the date of grant and 25% vest on each of the fourth and fifth anniversaries of the date of grant. | ||
Per Share Information | Per Share Information | |
Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted-average common shares outstanding during the period. Diluted earnings per share is calculated using the treasury stock method of accounting and takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Unallocated shares in the ESOP and shares purchased to fund the Bancorp’s equity incentive plans are not included in either basic or diluted earnings per share. | ||
Earnings per share ("EPS"), basic and diluted, were $0.73 and $0.71, respectively, for the year ended December 31, 2014, $0.49 and $0.48, respectively, for the year ended December 31, 2013 and $0.44 and $0.43, respectively, for the year ended December 31, 2012. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||
Cost Method Investments, Policy [Policy Text Block] | Federal Home Loan Bank Stock | |||||||||||||
Federal Home Loan Bank ("FHLB") stock is an equity interest in the FHLB of Pittsburgh that can be sold to the issuer or to other member banks at its par value. Because ownership is restricted, the fair value is not readily determinable. As such, FHLB stock is recorded at cost and evaluated for other-than-temporary impairment. The Corporation determined there was no other-than-temporary impairment of its investment in FHLB stock at December 31, 2014 and 2013. | ||||||||||||||
Schedule of the reconciliation of the numerators and denominators of the basic and diluted earnings per share computations | The following table presents the reconciliation of the numerators and denominators of the basic and diluted EPS computations. | |||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Net income | $ | 8,195,000 | $ | 5,534,000 | $ | 5,062,000 | ||||||||
Weighted-average common shares outstanding (1) | 12,054,779 | 12,199,774 | 12,624,068 | |||||||||||
Average common stock acquired by stock benefit plans: | ||||||||||||||
ESOP shares unallocated | (521,371 | ) | (586,424 | ) | (651,538 | ) | ||||||||
Shares purchased by trust | (283,366 | ) | (324,207 | ) | (372,653 | ) | ||||||||
Weighted-average common shares used to calculate basic earnings per share | 11,250,042 | 11,289,143 | 11,599,877 | |||||||||||
Dilutive effect of: | ||||||||||||||
Restricted stock awards | 51,810 | 42,582 | 29,653 | |||||||||||
Stock option awards | 197,209 | 198,429 | 117,731 | |||||||||||
Weighted-average common shares used to calculate diluted earnings per share | 11,499,061 | 11,530,154 | 11,747,261 | |||||||||||
Earnings per share-basic | $ | 0.73 | $ | 0.49 | $ | 0.44 | ||||||||
Earnings per share-diluted | $ | 0.71 | $ | 0.48 | $ | 0.43 | ||||||||
Outstanding common stock equivalents having no dilutive effect | 1,040,123 | 1,108,329 | 860,842 | |||||||||||
(1) Excludes treasury stock. |
INVESTMENT_AND_MORTGAGE_RELATE1
INVESTMENT AND MORTGAGE RELATED SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Schedule of Held-to-maturity Securities [Line Items] | ||||||||||||||||||||||||
Held-to-maturity Securities [Table Text Block] | At December 31, 2014, the amortized cost of held-to-maturity investments consisted of the following (in thousands): | |||||||||||||||||||||||
Original | Unrealized Loss | Post-transfer | Amortized | |||||||||||||||||||||
Cost | at Transfer | Accretion | Cost | |||||||||||||||||||||
Transferred securities | $ | 94,992 | $ | (1,625 | ) | $ | 60 | $ | 93,427 | |||||||||||||||
Other held-to-maturity securities | 76,745 | — | — | 76,745 | ||||||||||||||||||||
Total | $ | 171,737 | $ | (1,625 | ) | $ | 60 | $ | 170,172 | |||||||||||||||
Schedule of amortized cost and fair value of securities available-for-sale and held-to-maturity | The amortized cost and fair value of securities available-for-sale and held-to-maturity as of December 31, 2014 and 2013 are summarized as follows: | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 300 | $ | 2 | $ | — | $ | 302 | ||||||||||||||||
Corporate securities | 8,053 | 33 | — | 8,086 | ||||||||||||||||||||
8,353 | 35 | — | 8,388 | |||||||||||||||||||||
Private label commercial mortgage related securities | — | — | — | — | ||||||||||||||||||||
Agency residential mortgage related securities | 123,929 | 2,392 | (672 | ) | 125,649 | |||||||||||||||||||
Total mortgage related securities | 123,929 | 2,392 | (672 | ) | 125,649 | |||||||||||||||||||
Total available-for-sale securities | $ | 132,282 | $ | 2,427 | $ | (672 | ) | $ | 134,037 | |||||||||||||||
Held-to-Maturity Securities: | ||||||||||||||||||||||||
Private label residential mortgage related securities | $ | 2,979 | $ | 6 | $ | — | $ | 2,985 | ||||||||||||||||
Agency residential mortgage related securities | 167,193 | 1,239 | (563 | ) | 167,869 | |||||||||||||||||||
Total mortgage related securities | 170,172 | 1,245 | (563 | ) | 170,854 | |||||||||||||||||||
Total held-to-maturity securities | $ | 170,172 | $ | 1,245 | $ | (563 | ) | $ | 170,854 | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 300 | $ | 8 | $ | — | $ | 308 | ||||||||||||||||
Corporate securities | 10,145 | 54 | (18 | ) | 10,181 | |||||||||||||||||||
10,445 | 62 | (18 | ) | 10,489 | ||||||||||||||||||||
Private label commercial mortgage related securities | 2,118 | 2 | — | 2,120 | ||||||||||||||||||||
Agency residential mortgage related securities | 250,851 | 2,655 | (9,558 | ) | 243,948 | |||||||||||||||||||
Total mortgage related securities | 252,969 | 2,657 | (9,558 | ) | 246,068 | |||||||||||||||||||
Total available-for-sale securities | $ | 263,414 | $ | 2,719 | $ | (9,576 | ) | $ | 256,557 | |||||||||||||||
Held-to-Maturity Securities: | ||||||||||||||||||||||||
Agency residential mortgage related securities | $ | 68,397 | $ | 514 | $ | (1,420 | ) | $ | 67,491 | |||||||||||||||
Total mortgage related securities | 68,397 | 514 | (1,420 | ) | 67,491 | |||||||||||||||||||
Total held-to-maturity securities | $ | 68,397 | $ | 514 | $ | (1,420 | ) | $ | 67,491 | |||||||||||||||
Schedule of gross unrealized losses and fair value of securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position | The following tables show gross unrealized losses and fair value of securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2014 and 2013. | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||
Corporate securities | — | — | — | — | — | — | ||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||
Agency residential mortgage related securities | 8,229 | (15 | ) | 64,502 | (657 | ) | 72,731 | (672 | ) | |||||||||||||||
Total mortgage related securities | 8,229 | (15 | ) | 64,502 | (657 | ) | 72,731 | (672 | ) | |||||||||||||||
Total available-for-sale securities | $ | 8,229 | $ | (15 | ) | $ | 64,502 | $ | (657 | ) | $ | 72,731 | $ | (672 | ) | |||||||||
Held-to-Maturity Securities: | ||||||||||||||||||||||||
Agency residential mortgage related securities | $ | 25,660 | $ | (110 | ) | $ | 27,182 | $ | (453 | ) | $ | 52,842 | $ | (563 | ) | |||||||||
Total mortgage related securities | 25,660 | (110 | ) | 27,182 | (453 | ) | 52,842 | (563 | ) | |||||||||||||||
Total held-to-maturity securities | $ | 25,660 | $ | (110 | ) | $ | 27,182 | $ | (453 | ) | $ | 52,842 | $ | (563 | ) | |||||||||
Total temporarily impaired securities | $ | 33,889 | $ | (125 | ) | $ | 91,684 | $ | (1,110 | ) | $ | 125,573 | $ | (1,235 | ) | |||||||||
December 31, 2013 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||
Corporate securities | — | — | 2,982 | (18 | ) | 2,982 | (18 | ) | ||||||||||||||||
— | — | 2,982 | (18 | ) | 2,982 | (18 | ) | |||||||||||||||||
Agency residential mortgage related securities | 180,448 | (7,251 | ) | 24,841 | (2,307 | ) | 205,289 | (9,558 | ) | |||||||||||||||
Total mortgage related securities | 180,448 | (7,251 | ) | 24,841 | (2,307 | ) | 205,289 | (9,558 | ) | |||||||||||||||
Total available-for-sale securities | $ | 180,448 | $ | (7,251 | ) | $ | 27,823 | $ | (2,325 | ) | $ | 208,271 | $ | (9,576 | ) | |||||||||
Held-to-Maturity Securities: | ||||||||||||||||||||||||
Agency residential mortgage related securities | $ | 40,615 | $ | (1,420 | ) | $ | — | $ | — | $ | 40,615 | $ | (1,420 | ) | ||||||||||
Total mortgage related securities | 40,615 | (1,420 | ) | — | — | 40,615 | (1,420 | ) | ||||||||||||||||
Total held-to-maturity securities | $ | 40,615 | $ | (1,420 | ) | $ | — | $ | — | $ | 40,615 | $ | (1,420 | ) | ||||||||||
Total temporarily impaired securities | $ | 221,063 | $ | (8,671 | ) | $ | 27,823 | $ | (2,325 | ) | $ | 248,886 | $ | (10,996 | ) | |||||||||
Schedules of components of net gains on sale of investment securities | The following schedules provide a summary of the components of net investment securities gains (losses) in the Company’s consolidated statements of operations for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Gross | Gross | Net Gains | ||||||||||||||||||||||
Realized | Realized | (Losses) | ||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | — | $ | — | $ | — | ||||||||||||||||||
— | — | — | ||||||||||||||||||||||
Private label residential mortgage related security | — | — | — | |||||||||||||||||||||
Agency residential mortgage related securities | 532 | — | 532 | |||||||||||||||||||||
Total mortgage related securities | 532 | — | 532 | |||||||||||||||||||||
Total securities available-for-sale | $ | 532 | $ | — | $ | 532 | ||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
Gross | Gross | Net Gains | ||||||||||||||||||||||
Realized | Realized | (Losses) | ||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 64 | $ | — | $ | 64 | ||||||||||||||||||
64 | — | 64 | ||||||||||||||||||||||
Private label residential mortgage related security | — | (87 | ) | (87 | ) | |||||||||||||||||||
Agency residential mortgage related securities | 3,315 | — | 3,315 | |||||||||||||||||||||
Total mortgage related securities | 3,315 | (87 | ) | 3,228 | ||||||||||||||||||||
Total securities available-for-sale | $ | 3,379 | $ | (87 | ) | $ | 3,292 | |||||||||||||||||
Schedule of amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity by contractual maturity | The amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at December 31, 2014 and 2013 by contractual maturity are as follows: | |||||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Due in one year or less | $ | 5,803 | $ | 5,818 | $ | — | $ | — | ||||||||||||||||
Due after one year through five years | 2,550 | 2,570 | — | — | ||||||||||||||||||||
Due after five years through ten years | — | — | — | — | ||||||||||||||||||||
Due after ten years | — | — | — | — | ||||||||||||||||||||
Total mortgage related securities | 123,929 | 125,649 | 170,172 | 170,854 | ||||||||||||||||||||
$ | 132,282 | $ | 134,037 | $ | 170,172 | $ | 170,854 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Due in one year or less | $ | 1,999 | $ | 2,000 | $ | — | $ | — | ||||||||||||||||
Due after one year through five years | 8,446 | 8,489 | — | — | ||||||||||||||||||||
Due after five years through ten years | — | — | — | — | ||||||||||||||||||||
Due after ten years | — | — | — | — | ||||||||||||||||||||
Total mortgage related securities | 252,969 | 246,068 | 68,397 | 67,491 | ||||||||||||||||||||
$ | 263,414 | $ | 256,557 | $ | 68,397 | $ | 67,491 | |||||||||||||||||
LOANS_Tables
LOANS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
Schedule of composition of net loans | The composition of net loans at December 31, 2014 and 2013 is provided below: | |||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 108,208 | $ | 127,501 | ||||||||||||||||||||||||
Multi-family and commercial | 388,821 | 408,365 | ||||||||||||||||||||||||||
Construction | 39,541 | 5,904 | ||||||||||||||||||||||||||
536,570 | 541,770 | |||||||||||||||||||||||||||
Consumer loans | 19,599 | 22,478 | ||||||||||||||||||||||||||
Commercial and industrial loans | 179,181 | 168,013 | ||||||||||||||||||||||||||
Total loans | 735,350 | 732,261 | ||||||||||||||||||||||||||
Deferred loan origination (fees) cost, net | (294 | ) | (242 | ) | ||||||||||||||||||||||||
Allowance for loan losses | (10,730 | ) | (11,529 | ) | ||||||||||||||||||||||||
Net loans | $ | 724,326 | $ | 720,490 | ||||||||||||||||||||||||
Schedule of changes in allowance for loan losses | ||||||||||||||||||||||||||||
Schedule of changes in allowance for loan losses by loan segment | The following tables present changes in the allowance for loan losses by loan segment for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
One- to | Multi-family | Construction | Consumer | Commercial | Unallocated | Total | ||||||||||||||||||||||
Four-Family | and | and | ||||||||||||||||||||||||||
Commercial | Industrial | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance, beginning | $ | 403 | $ | 7,141 | $ | 324 | $ | 153 | $ | 3,051 | $ | 457 | $ | 11,529 | ||||||||||||||
(Credit) provision for loan losses | (20 | ) | (357 | ) | 714 | (1 | ) | 1,704 | (97 | ) | 1,943 | |||||||||||||||||
Loans charged off | (6 | ) | (811 | ) | — | (16 | ) | (2,002 | ) | — | (2,835 | ) | ||||||||||||||||
Recoveries | 28 | 17 | — | 48 | — | — | 93 | |||||||||||||||||||||
Balance, ending | $ | 405 | $ | 5,990 | $ | 1,038 | $ | 184 | $ | 2,753 | $ | 360 | $ | 10,730 | ||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Balance, ending: individually evaluated for impairment | $ | 11 | $ | 401 | $ | 114 | $ | 26 | $ | — | $ | — | $ | 552 | ||||||||||||||
Balance, ending: collectively evaluated for impairment | 394 | 5,589 | 924 | 158 | 2,753 | 360 | 10,178 | |||||||||||||||||||||
Total | $ | 405 | $ | 5,990 | $ | 1,038 | $ | 184 | $ | 2,753 | $ | 360 | $ | 10,730 | ||||||||||||||
Total Loans: | ||||||||||||||||||||||||||||
Balance, ending: individually evaluated for impairment | $ | 2,629 | $ | 5,849 | $ | 2,723 | $ | 256 | $ | 75 | $ | — | $ | 11,532 | ||||||||||||||
Balance, ending: collectively evaluated for impairment | 105,579 | 382,972 | 36,818 | 19,343 | 179,106 | — | 723,818 | |||||||||||||||||||||
Total | $ | 108,208 | $ | 388,821 | $ | 39,541 | $ | 19,599 | $ | 179,181 | $ | — | $ | 735,350 | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
One- to | Multi-family | Construction | Consumer | Commercial | Unallocated | Total | ||||||||||||||||||||||
Four-Family | and | and | ||||||||||||||||||||||||||
Commercial | Industrial | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance, beginning | $ | 642 | $ | 6,327 | $ | 873 | $ | 232 | $ | 2,630 | $ | 466 | $ | 11,170 | ||||||||||||||
(Credit) provision for loan losses | (95 | ) | 1,252 | (549 | ) | (38 | ) | 421 | (9 | ) | 982 | |||||||||||||||||
Loans charged off | (179 | ) | (463 | ) | — | (71 | ) | — | — | (713 | ) | |||||||||||||||||
Recoveries | 35 | 25 | — | 30 | — | — | 90 | |||||||||||||||||||||
Balance, ending | $ | 403 | $ | 7,141 | $ | 324 | $ | 153 | $ | 3,051 | $ | 457 | $ | 11,529 | ||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Balance, ending: individually evaluated for impairment | $ | 164 | $ | 1,287 | $ | 263 | $ | 6 | $ | — | $ | — | $ | 1,720 | ||||||||||||||
Balance, ending: collectively evaluated for impairment | 239 | 5,854 | 61 | 147 | 3,051 | 457 | 9,809 | |||||||||||||||||||||
Total | $ | 403 | $ | 7,141 | $ | 324 | $ | 153 | $ | 3,051 | $ | 457 | $ | 11,529 | ||||||||||||||
Total Loans: | ||||||||||||||||||||||||||||
Balance, ending: individually evaluated for impairment | $ | 2,972 | $ | 9,222 | $ | 3,231 | $ | 141 | $ | — | $ | — | $ | 15,566 | ||||||||||||||
Balance, ending: collectively evaluated for impairment | 124,529 | 399,143 | 2,673 | 22,337 | 168,013 | — | 716,695 | |||||||||||||||||||||
Total | $ | 127,501 | $ | 408,365 | $ | 5,904 | $ | 22,478 | $ | 168,013 | $ | — | $ | 732,261 | ||||||||||||||
Schedule of breakdown of impaired loans by loan segment | The following tables set forth the breakdown of impaired loans by loan segment as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Nonaccrual | Accruing | Other | Total | Impaired | Impaired | |||||||||||||||||||||||
Loans | TDRs | Impaired | Impaired | Loans | Loans | |||||||||||||||||||||||
Loans | Loans | with | without | |||||||||||||||||||||||||
Allowance | Allowance | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 1,741 | $ | 888 | $ | — | $ | 2,629 | $ | 137 | $ | 2,492 | ||||||||||||||||
Multi-family and commercial | 1,395 | — | 4,454 | 5,849 | 4,502 | 1,347 | ||||||||||||||||||||||
Construction | — | 2,723 | — | 2,723 | 2,723 | — | ||||||||||||||||||||||
Consumer loans | 243 | 13 | — | 256 | 82 | 174 | ||||||||||||||||||||||
Commercial and industrial | 75 | — | — | 75 | — | 75 | ||||||||||||||||||||||
Total | $ | 3,454 | $ | 3,624 | $ | 4,454 | $ | 11,532 | $ | 7,444 | $ | 4,088 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Nonaccrual | Accruing | Other | Total | Impaired | Impaired | |||||||||||||||||||||||
Loans | TDRs | Impaired | Impaired | Loans | Loans | |||||||||||||||||||||||
Loans | Loans | with | without | |||||||||||||||||||||||||
Allowance | Allowance | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 2,390 | $ | 582 | $ | — | $ | 2,972 | $ | 2,972 | $ | — | ||||||||||||||||
Multi-family and commercial | 3,031 | 6,191 | — | 9,222 | 8,866 | 356 | ||||||||||||||||||||||
Construction | 3,231 | — | — | 3,231 | 3,231 | — | ||||||||||||||||||||||
Consumer loans | 128 | 13 | — | 141 | 141 | — | ||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 8,780 | $ | 6,786 | $ | — | $ | 15,566 | $ | 15,210 | $ | 356 | ||||||||||||||||
Schedule of allowance for loan loss for impaired loans and general allowance by loan segment | The following tables set forth the allowance for loan loss for impaired loans and general allowance by loan segment as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||
Nonaccrual | Accruing | Other | Total | |||||||||||||||||||||||||
Loans | TDRs | Impaired | Impaired | |||||||||||||||||||||||||
Loans | Loans | General | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 11 | $ | — | $ | — | $ | 11 | $ | 394 | $ | 405 | ||||||||||||||||
Multi-family and commercial | 10 | — | 391 | 401 | 5,589 | 5,990 | ||||||||||||||||||||||
Construction | — | 114 | — | 114 | 924 | 1,038 | ||||||||||||||||||||||
Consumer loans | 26 | — | — | 26 | 158 | 184 | ||||||||||||||||||||||
Commercial and industrial | — | — | — | — | 2,753 | 2,753 | ||||||||||||||||||||||
Unallocated | — | — | — | — | 360 | 360 | ||||||||||||||||||||||
Total allowance for loan losses | $ | 47 | $ | 114 | $ | 391 | $ | 552 | $ | 10,178 | $ | 10,730 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||
Nonaccrual | Accruing | Other | Total | |||||||||||||||||||||||||
Loans | TDRs | Impaired | Impaired | |||||||||||||||||||||||||
Loans | Loans | General | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | $ | 163 | $ | 1 | $ | — | $ | 164 | $ | 239 | $ | 403 | ||||||||||||||||
Multi-family and commercial | 600 | 687 | — | 1,287 | 5,854 | 7,141 | ||||||||||||||||||||||
Construction | 263 | — | — | 263 | 61 | 324 | ||||||||||||||||||||||
Consumer loans | 6 | — | — | 6 | 147 | 153 | ||||||||||||||||||||||
Commercial and industrial | — | — | — | — | 3,051 | 3,051 | ||||||||||||||||||||||
Unallocated | — | — | — | — | 457 | 457 | ||||||||||||||||||||||
Total allowance for loan losses | $ | 1,032 | $ | 688 | $ | — | $ | 1,720 | $ | 9,809 | $ | 11,529 | ||||||||||||||||
Summary of TDR activity for the periods | The following tables set forth a summary of the TDR activity for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
Restructured Current Period | ||||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Type of Modification | |||||||||||||||||||||||||
of Loans | Outstanding | Outstanding | ||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | 1 | $ | 245 | $ | 245 | Principal forgiveness | ||||||||||||||||||||||
Multi-family and commercial | 1 | 1,640 | 1,540 | Principal forgiveness | ||||||||||||||||||||||||
Construction | — | — | — | |||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||
Commercial and industrial | — | — | — | |||||||||||||||||||||||||
Total | 2 | $ | 1,885 | $ | 1,785 | |||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
Restructured Current Period | ||||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Type of Modification | |||||||||||||||||||||||||
of Loans | Outstanding | Outstanding | ||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
One- to four-family | 2 | $ | 622 | $ | 622 | Delayed repayment | ||||||||||||||||||||||
Multi-family and commercial | — | — | — | |||||||||||||||||||||||||
Construction | — | — | — | |||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||
Commercial and industrial | — | — | — | |||||||||||||||||||||||||
Total | 2 | $ | 622 | $ | 622 | |||||||||||||||||||||||
Schedule of past due loans by segment | The following table sets forth past due loans by segment as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
30-59 | 60-89 | 30-59 | 60-89 | |||||||||||||||||||||||||
Days | Days | Days | Days | |||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
One- to four-family real estate | $ | — | $ | 145 | $ | 172 | $ | — | ||||||||||||||||||||
Multi-family and commercial real estate | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | ||||||||||||||||||||||||
Consumer | 113 | — | 241 | 5 | ||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 113 | $ | 145 | $ | 413 | $ | 5 | ||||||||||||||||||||
Schedule of criticized and classified loans by segment | The following tables set forth criticized and classified loans by segment as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
One- to | Multi-family | Construction | Consumer | Commercial | Total | |||||||||||||||||||||||
Four-Family | and | and | ||||||||||||||||||||||||||
Commercial | Industrial | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Pass and Pass watch | $ | 106,467 | $ | 376,134 | $ | 36,229 | $ | 19,357 | $ | 174,143 | $ | 712,330 | ||||||||||||||||
Special mention | — | 8,406 | 2,723 | — | 3,012 | 14,141 | ||||||||||||||||||||||
Substandard | 1,741 | 4,281 | 589 | 242 | 2,026 | 8,879 | ||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | ||||||||||||||||||||||
Total loans | $ | 108,208 | $ | 388,821 | $ | 39,541 | $ | 19,599 | $ | 179,181 | $ | 735,350 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
One- to | Multi-family | Construction | Consumer | Commercial | Total | |||||||||||||||||||||||
Four-Family | and | and | ||||||||||||||||||||||||||
Commercial | Industrial | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Pass and Pass watch | $ | 125,111 | $ | 390,908 | $ | 2,673 | $ | 22,350 | $ | 165,336 | $ | 706,378 | ||||||||||||||||
Special mention | — | 12,414 | — | — | 2,677 | 15,091 | ||||||||||||||||||||||
Substandard | 2,390 | 5,043 | 3,231 | 128 | — | 10,792 | ||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | ||||||||||||||||||||||
Total loans | $ | 127,501 | $ | 408,365 | $ | 5,904 | $ | 22,478 | $ | 168,013 | $ | 732,261 | ||||||||||||||||
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Schedule of components of premises and equipment | The components of premises and equipment at December 31, 2014 and 2013 were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Land | $ | 3,207 | $ | 3,207 | |||||||||
Buildings | 13,917 | 13,759 | |||||||||||
Leasehold improvements | 161 | 202 | |||||||||||
Furniture, fixtures and equipment | 4,845 | 4,739 | |||||||||||
22,130 | 21,907 | ||||||||||||
Less: accumulated depreciation | (12,712 | ) | (12,093 | ) | |||||||||
Premises and equipment, net | $ | 9,418 | $ | 9,814 | |||||||||
Schedule of rental expenses | The following rental expenses were included in the Company's financial statements. | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Office rent | $ | 399 | $ | 407 | $ | 449 | |||||||
Equipment lease | 2 | 2 | 2 | ||||||||||
Total | $ | 401 | $ | 409 | $ | 451 | |||||||
Schedule of minimum future rental payments under non-cancelable leases for premises and equipment | The following table shows the minimum future rental payments under non-cancelable leases for premises and equipment as of December 31, 2014. | ||||||||||||
Year | Amount | ||||||||||||
(In thousands) | |||||||||||||
2015 | $ | 428 | |||||||||||
2016 | 36 | ||||||||||||
2017 | — | ||||||||||||
2018 | — | ||||||||||||
2019 | — | ||||||||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||
Schedule of components of weighted average interest rate and balance of deposits | Deposits and their respective weighted average interest rate at December 31, 2014 and December 31, 2013 consist of the following: | |||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Weighted | Amount | Weighted | Amount | |||||||||||
Average | Average | |||||||||||||
Interest Rate | Interest Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Noninterest-bearing demand accounts | — | % | $ | 168,791 | — | % | $ | 100,748 | ||||||
NOW accounts | 0.21 | 82,417 | 0.21 | 84,569 | ||||||||||
Money market accounts | 0.22 | 73,802 | 0.2 | 85,017 | ||||||||||
Savings and club accounts | 0.37 | 129,893 | 0.22 | 108,183 | ||||||||||
Brokered deposits | 0.73 | 70,817 | 0.56 | 71,334 | ||||||||||
Certificates of deposit | 0.87 | 186,189 | 1.26 | 223,864 | ||||||||||
Total | 0.42 | % | $ | 711,909 | 0.56 | % | $ | 673,715 | ||||||
Schedule of maturities of certificates of deposit and brokered deposits | The scheduled maturities of certificates of deposit and brokered deposits for periods subsequent to December 31, 2014 are as follows: | |||||||||||||
December 31, | ||||||||||||||
Year | Certificates of | Brokered | Total | |||||||||||
Deposit | Deposits | |||||||||||||
(In thousands) | ||||||||||||||
2015 | $ | 105,403 | $ | 32,362 | $ | 137,765 | ||||||||
2016 | 26,548 | 16,075 | 42,623 | |||||||||||
2017 | 33,205 | 11,219 | 44,424 | |||||||||||
2018 | 7,741 | 6,190 | 13,931 | |||||||||||
2019 | 7,604 | 4,971 | 12,575 | |||||||||||
Thereafter | 5,688 | — | 5,688 | |||||||||||
Total | $ | 186,189 | $ | 70,817 | $ | 257,006 | ||||||||
Summary of interest expense on deposits | A summary of interest expense on deposits for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(In thousands) | ||||||||||||||
NOW accounts | $ | 183 | $ | 172 | $ | 234 | ||||||||
Money market accounts | 202 | 172 | 339 | |||||||||||
Savings and club accounts | 275 | 141 | 253 | |||||||||||
Brokered deposits | 450 | 391 | 194 | |||||||||||
Certificates of deposit | 2,106 | 3,468 | 5,327 | |||||||||||
Total | $ | 3,216 | $ | 4,344 | $ | 6,347 | ||||||||
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
BORROWINGS | ||||||||||||||||||
Summary of borrowed funds by type | The following is a summary of borrowed funds by type: | |||||||||||||||||
Balance at | Weighted Average | Maximum Amount | Average Amount | Weighted Average | ||||||||||||||
End of Year | Coupon Rate | Outstanding at | Outstanding | Interest Rate | ||||||||||||||
Month End | During the Year | During the Year | ||||||||||||||||
During the Year | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
2014 | ||||||||||||||||||
FHLB advances | $ | 120,000 | 1.8 | % | $ | 150,000 | $ | 143,980 | 1.59 | % | ||||||||
Other borrowed funds | 30,000 | 3.3 | 30,000 | 30,000 | 3.35 | |||||||||||||
Short-term borrowings | 50,000 | 0.32 | 84,900 | 41,000 | 0.31 | |||||||||||||
2013 | ||||||||||||||||||
FHLB advances | $ | 150,000 | 1.52 | % | $ | 150,000 | $ | 135,807 | 1.61 | % | ||||||||
Other borrowed funds | 30,000 | 3.3 | 30,000 | 30,000 | 3.36 | |||||||||||||
Short-term borrowings | 80,500 | 0.32 | 80,500 | 47,368 | 0.28 | |||||||||||||
Schedule of FHLB advances | ||||||||||||||||||
Maturity Date | Amount | Coupon Rate | Call Date | Rate if Called | ||||||||||||||
(In thousands) | ||||||||||||||||||
Mar-15 | $ | 10,000 | 0.49 | % | Not Applicable | Not Applicable | ||||||||||||
Apr-15 | 10,000 | 0.45 | Not Applicable | Not Applicable | ||||||||||||||
Aug-15 | 10,000 | 0.68 | Not Applicable | Not Applicable | ||||||||||||||
Mar-16 | 10,000 | 0.6 | Not Applicable | Not Applicable | ||||||||||||||
Mar-16 | 10,000 | 0.62 | Not Applicable | Not Applicable | ||||||||||||||
Sep-16 | 5,000 | 0.75 | Not Applicable | Not Applicable | ||||||||||||||
Sep-16 | 10,000 | 1.04 | Not Applicable | Not Applicable | ||||||||||||||
Jun-17 | 5,000 | 0.94 | Not Applicable | Not Applicable | ||||||||||||||
Nov-17 | 15,000 | 3.62 | Feb-15 | LIBOR + 0.10% | ||||||||||||||
Nov-17 | 15,000 | 3.87 | Feb-15 | LIBOR + 0.10% | ||||||||||||||
Dec-17 | 20,000 | 2.83 | March 2015 | LIBOR + 0.11% | ||||||||||||||
$ | 120,000 | 1.8 | % | |||||||||||||||
Schedule of maturity of FHLB advances with weighted average coupon by year | Advances from the FHLB of Pittsburgh with coupon rates ranging from 0.45% to 3.87% are due as follows. | |||||||||||||||||
Maturity | Amount | Weighted Average | ||||||||||||||||
Coupon Rate | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
2015 | $ | 30,000 | 0.54 | % | ||||||||||||||
2016 | 35,000 | 0.75 | ||||||||||||||||
2017 | 55,000 | 3.16 | ||||||||||||||||
$ | 120,000 | 1.8 | % | |||||||||||||||
Schedule of other long-term borrowings | ||||||||||||||||||
Next Call Date | Subsequent Call Frequency | |||||||||||||||||
Maturity Date | Amount | Coupon Rate | ||||||||||||||||
(In thousands) | ||||||||||||||||||
September 2018 | $ | 10,000 | 3.4 | % | Not Applicable | Not Applicable | ||||||||||||
September 2018 | 5,000 | 3.2 | Not Applicable | Not Applicable | ||||||||||||||
October 2018 | 5,000 | 3.15 | January 2015 | Quarterly | ||||||||||||||
October 2018 | 5,000 | 3.27 | Not Applicable | Not Applicable | ||||||||||||||
November 2018 | 5,000 | 3.37 | Not Applicable | Not Applicable | ||||||||||||||
$ | 30,000 | 3.3 | % | |||||||||||||||
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Summary of stock option activity and related information | The following is a summary of the Bancorp’s stock option activity and related information for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||
Stock | Average | Average | Intrinsic | ||||||||||||||||||
Options | Exercise | Remaining | Value | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
Outstanding at December 31, 2011 | 788,142 | $ | 11.23 | 6.6 years | $ | 1,111,000 | |||||||||||||||
Granted | 146,550 | 13.15 | |||||||||||||||||||
Exercised | (43,954 | ) | 10.94 | ||||||||||||||||||
Forfeited/Cancelled | (13,069 | ) | 11.1 | ||||||||||||||||||
Outstanding at December 31, 2012 | 877,669 | $ | 11.57 | 6.3 years | $ | 4,461,000 | |||||||||||||||
Granted | 255,650 | 17 | |||||||||||||||||||
Exercised | (9,811 | ) | 10.82 | ||||||||||||||||||
Forfeited/Cancelled | (100 | ) | 12.94 | ||||||||||||||||||
Outstanding at December 31, 2013 | 1,123,408 | $ | 12.81 | 6.2 years | $ | 5,013,000 | |||||||||||||||
Granted | 39,600 | 16.92 | |||||||||||||||||||
Exercised | (39,388 | ) | 11.12 | ||||||||||||||||||
Forfeited/Cancelled | (23,100 | ) | 15.52 | ||||||||||||||||||
Outstanding at December 31, 2014 | 1,100,520 | $ | 12.96 | 5.3 years | $ | 4,172,000 | |||||||||||||||
Exercisable at December 31, 2014 | 731,017 | $ | 11.73 | 4.0 years | $ | 3,631,000 | |||||||||||||||
Schedule of assumptions to determine the fair value of the options | The fair value and underlying assumptions for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair Value | $3.49 | - | $3.66 | $4.20 | - | $4.45 | $3.56 | - | $3.92 | ||||||||||||
Expected Dividend Yield | 3.53% | 2.22% | 1.82% | ||||||||||||||||||
Expected Volatility | 30.71 | % | - | 31.04% | 31.11 | % | - | 31.12% | 32 | % | - | 32.50% | |||||||||
Risk-Free Interest Rate | 1.85 | % | - | 1.90% | 1.19 | % | - | 1.74% | 0.86 | % | - | 1.10% | |||||||||
Expected Option Life in Years | 6.5 | 6.5 | 6.5 | ||||||||||||||||||
Summary of unvested options and changes during the period | The following is a summary of the Bancorp’s unvested options as of December 31, 2014, 2013 and 2012 and the changes therein during the years then ended. | ||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Stock | Average | ||||||||||||||||||||
Options | Grant Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Unvested at December 31, 2011 | 322,530 | $ | 3.15 | ||||||||||||||||||
Granted | 146,550 | 3.57 | |||||||||||||||||||
Vested | (145,350 | ) | 3.1 | ||||||||||||||||||
Forfeited / Cancelled | (13,069 | ) | 3.17 | ||||||||||||||||||
Unvested at December 31, 2012 | 310,661 | $ | 3.36 | ||||||||||||||||||
Granted | 255,650 | 4.2 | |||||||||||||||||||
Vested | (90,787 | ) | 3.16 | ||||||||||||||||||
Forfeited / Cancelled | — | — | |||||||||||||||||||
Unvested at December 31, 2013 | 475,524 | $ | 3.85 | ||||||||||||||||||
Granted | 39,600 | 3.65 | |||||||||||||||||||
Vested | (125,521 | ) | 3.65 | ||||||||||||||||||
Forfeited / Cancelled | (20,100 | ) | 3.91 | ||||||||||||||||||
Unvested at December 31, 2014 | 369,503 | $ | 3.9 | ||||||||||||||||||
Summary of the status of the Company's restricted stock activity and balances | The following is a summary of the status of the Bancorp’s restricted stock as of December 31, 2014, 2013 and 2012 and changes therein during the years then ended. | ||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Restricted | Average | ||||||||||||||||||||
Shares | Grant Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Unvested at December 31, 2011 | 119,990 | $ | 11.54 | ||||||||||||||||||
Granted | 69,950 | 13.14 | |||||||||||||||||||
Vested | (56,358 | ) | 11.46 | ||||||||||||||||||
Forfeited / Cancelled | (3,025 | ) | 12.08 | ||||||||||||||||||
Unvested at December 31, 2012 | 130,557 | $ | 12.41 | ||||||||||||||||||
Granted | 122,450 | 17 | |||||||||||||||||||
Vested | (27,075 | ) | 11.77 | ||||||||||||||||||
Forfeited / Cancelled | — | — | |||||||||||||||||||
Unvested at December 31, 2013 | 225,932 | $ | 14.98 | ||||||||||||||||||
Granted | 18,865 | 15.89 | |||||||||||||||||||
Vested | (47,525 | ) | 13.76 | ||||||||||||||||||
Forfeited / Cancelled | (8,650 | ) | 15.32 | ||||||||||||||||||
Unvested at December 31, 2014 | 188,622 | $ | 15.36 | ||||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of components of income tax expense (benefit) | The components of income tax expense (benefit) for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Federal: | |||||||||||||
Current | $ | 1,534 | $ | 3,330 | $ | 2,408 | |||||||
Deferred | 1,876 | (1,083 | ) | (140 | ) | ||||||||
3,410 | 2,247 | 2,268 | |||||||||||
State: | |||||||||||||
Current | 20 | — | — | ||||||||||
Deferred | (12 | ) | 16 | 50 | |||||||||
8 | 16 | 50 | |||||||||||
$ | 3,418 | $ | 2,263 | $ | 2,318 | ||||||||
Schedule of differences between income tax expense and statutory rate | The provision for income taxes differs from the statutory federal rate of 34% due to the following: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Federal income tax at statutory rate of 34% | $ | 3,948 | $ | 2,651 | $ | 2,509 | |||||||
Tax exempt interest, net | (295 | ) | (233 | ) | (62 | ) | |||||||
Bank-owned life insurance | (163 | ) | (160 | ) | (160 | ) | |||||||
ESOP compensation expense | 158 | 167 | 101 | ||||||||||
Other, net | 19 | 14 | 13 | ||||||||||
Dividends received from equity method investments | (61 | ) | (98 | ) | (49 | ) | |||||||
Dividends paid on benefit plans | (192 | ) | (89 | ) | (67 | ) | |||||||
State taxes, net | (140 | ) | (20 | ) | 304 | ||||||||
Increase (decrease) in valuation allowance | 144 | 31 | (271 | ) | |||||||||
Total Provision | $ | 3,418 | $ | 2,263 | $ | 2,318 | |||||||
Effective tax rate | 29.44 | % | 29.03 | % | 31.41 | % | |||||||
Schedule of components of net deferred tax asset | The net deferred tax asset consisted of the following components as of December 31, 2014 and 2013: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses, net | $ | 3,779 | $ | 3,920 | |||||||||
Provision for loss on assets acquired through foreclosure | 100 | 1,826 | |||||||||||
Nonaccrual interest | 89 | 274 | |||||||||||
Equity incentive plans | 1,398 | 1,187 | |||||||||||
Accrued expenses | 508 | 455 | |||||||||||
Deferred lease liability | 27 | 46 | |||||||||||
State net operating loss carryforward | 65 | 96 | |||||||||||
Unrealized losses on securities available-for-sale | — | 2,408 | |||||||||||
5,966 | 10,212 | ||||||||||||
Valuation allowance | (211 | ) | (67 | ) | |||||||||
5,755 | 10,145 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Prepaid expense deduction | 260 | 255 | |||||||||||
Mortgage servicing rights | 39 | 52 | |||||||||||
Loan origination costs | 25 | 28 | |||||||||||
Deferrable earnings on investments | 478 | 504 | |||||||||||
Depreciation of premises and equipment | 319 | 400 | |||||||||||
Unrealized gains on securities available-for-sale | 73 | — | |||||||||||
1,194 | 1,239 | ||||||||||||
Net Deferred Tax Asset | $ | 4,561 | $ | 8,906 | |||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Summary of the Company's financial instrument commitments | A summary of the Company's financial instrument commitments at December 31, 2014 and 2013 is as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Commitments to grant loans | $ | 43,853 | $ | 31,401 | |||||
Unfunded commitments under lines of credit | 123,459 | 115,229 | |||||||
Standby letters of credit | 17,324 | 11,508 | |||||||
Commercial letters of credit | 413 | 411 | |||||||
$ | 185,049 | $ | 158,549 | ||||||
Schedule of projected amount of the Company's future minimum payments contractually due | The projected amount of the Company's future minimum payments contractually due after December 31, 2014 is as follows (in thousands): | ||||||||
Year | Amount | ||||||||
2015 | $ | 1,690 | |||||||
2016 | 60 | ||||||||
2017 | 14 | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||
Schedule of capital amounts and ratios | ||||||||||||||||||||||
Actual | For Capital | To be Well Capitalized under | ||||||||||||||||||||
Adequacy Purposes | Prompt Corrective Action Provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | ||||||||||||||||||||||
Bancorp | $ | 183,993 | 23.45 | % | $ | 62,758 | 8 | % | $ | 78,448 | 10 | % | ||||||||||
Bank | 156,976 | 20.02 | 62,743 | 8 | 78,428 | 10 | ||||||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||
Bancorp | 175,795 | 22.41 | 31,379 | 4 | 47,069 | 6 | ||||||||||||||||
Bank | 148,781 | 18.97 | 31,371 | 4 | 47,057 | 6 | ||||||||||||||||
Tier 1 capital (to adjusted assets) | ||||||||||||||||||||||
Bancorp | 175,795 | 16.58 | 42,420 | 4 | 53,026 | 5 | ||||||||||||||||
Bank | 148,781 | 13.99 | 42,551 | 4 | 53,188 | 5 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | ||||||||||||||||||||||
Bancorp | $ | 186,147 | 23.67 | % | $ | 62,905 | 8 | % | $ | 78,631 | 10 | % | ||||||||||
Bank | 153,206 | 19.48 | 62,903 | 8 | 78,629 | 10 | ||||||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||
Bancorp | 177,916 | 22.63 | 31,452 | 4 | 47,178 | 6 | ||||||||||||||||
Bank | 144,977 | 18.44 | 31,452 | 4 | 47,177 | 6 | ||||||||||||||||
Tier 1 capital (to adjusted assets) | ||||||||||||||||||||||
Bancorp | 177,916 | 16.18 | 43,971 | 4 | 54,964 | 5 | ||||||||||||||||
Bank | 144,977 | 13.12 | 44,194 | 4 | 55,242 | 5 | ||||||||||||||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair value of financial instruments | The estimated fair values of the Company’s financial instruments at December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fair Value | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
Hierarchy | Amount | Fair | Amount | Fair | |||||||||||||||||
Level | Value | Value | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 17,213 | $ | 17,213 | $ | 11,947 | $ | 11,947 | ||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Investment securities available-for-sale | Level 2 | 8,388 | 8,388 | 10,489 | 10,489 | ||||||||||||||||
Private label commercial mortgage related securities | Level 3 | — | — | 2,120 | 2,120 | ||||||||||||||||
Agency residential mortgage related securities | Level 2 | 125,649 | 125,649 | 243,948 | 243,948 | ||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Private label residential mortgage related security | Level 2 | 2,979 | 2,985 | — | — | ||||||||||||||||
Agency residential mortgage related securities | Level 2 | 167,193 | 167,869 | 68,397 | 67,491 | ||||||||||||||||
Loans receivable, net | Level 3 | 724,326 | 732,142 | 720,490 | 721,417 | ||||||||||||||||
FHLB stock | Level 3 | 6,015 | 6,015 | 9,813 | 9,813 | ||||||||||||||||
Accrued interest receivable | Level 2, 3 | 3,147 | 3,147 | 3,308 | 3,308 | ||||||||||||||||
Mortgage servicing rights | Level 3 | 111 | 111 | 152 | 152 | ||||||||||||||||
Financial assets acquired from debtors | Level 3 | — | — | 1,938 | 1,938 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Savings and club accounts | Level 2 | 129,893 | 129,893 | 108,183 | 108,183 | ||||||||||||||||
Demand, NOW and money market deposits | Level 2 | 325,010 | 325,010 | 270,334 | 270,334 | ||||||||||||||||
Brokered deposits | Level 2 | 70,817 | 70,600 | 71,334 | 71,020 | ||||||||||||||||
Certificates of deposit | Level 2 | 186,189 | 186,154 | 223,864 | 225,357 | ||||||||||||||||
Short-term borrowings | Level 2 | 50,000 | 50,000 | 80,500 | 80,500 | ||||||||||||||||
FHLB advances | Level 2 | 120,000 | 123,189 | 150,000 | 154,069 | ||||||||||||||||
Other borrowed funds | Level 2 | 30,000 | 32,017 | 30,000 | 32,178 | ||||||||||||||||
Accrued interest payable | Level 2 | 311 | 311 | 314 | 314 | ||||||||||||||||
Derivative contracts | Level 2, 3 | 174 | 174 | 124 | 124 | ||||||||||||||||
Schedule of fair value measurements on a recurring basis | The following measures were made on a recurring basis as of December 31, 2014 and 2013. | ||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||
Quoted Prices in Active Markets | Significant Other | Significant Other | |||||||||||||||||||
As of | for Identical Assets | Observable Inputs | Unobservable Inputs | ||||||||||||||||||
Description | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Available-for-Sale Securities: | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 302 | $ | — | $ | 302 | $ | — | |||||||||||||
Corporate securities | 8,086 | — | 8,086 | — | |||||||||||||||||
Agency residential mortgage related securities | 125,649 | — | 125,649 | — | |||||||||||||||||
Loans (1) | 2,451 | — | — | 2,451 | |||||||||||||||||
Derivative contracts (1) | (174 | ) | — | (162 | ) | (12 | ) | ||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||
Quoted Prices in Active Markets | Significant Other | Significant Other | |||||||||||||||||||
As of | for Identical Assets | Observable Inputs | Unobservable Inputs | ||||||||||||||||||
Description | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Available-for-Sale Securities: | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 308 | $ | — | $ | 308 | $ | — | |||||||||||||
Corporate securities | 10,181 | — | 10,181 | — | |||||||||||||||||
Private label commercial mortgage related securities | 2,120 | — | — | 2,120 | |||||||||||||||||
Agency residential mortgage related securities | 243,948 | — | 243,948 | — | |||||||||||||||||
Loans (1) | 2,535 | — | — | 2,535 | |||||||||||||||||
Financial assets acquired from debtors | 1,938 | — | — | 1,938 | |||||||||||||||||
Derivative contracts (1) | (124 | ) | — | (120 | ) | (4 | ) | ||||||||||||||
(1) Such financial instruments are recorded at fair value as further described in Note 4. | |||||||||||||||||||||
Schedule of fair value measurements on a non-recurring basis | |||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||
Quoted Prices in Active Markets | Significant Other | Significant Other | |||||||||||||||||||
for Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Balance | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-14 | (In thousands) | ||||||||||||||||||||
Loans | $ | 1,654 | $ | — | $ | — | $ | 1,654 | |||||||||||||
Mortgage servicing rights | 111 | — | — | 111 | |||||||||||||||||
Other real estate owned | 2,814 | — | — | 2,814 | |||||||||||||||||
Total | $ | 4,579 | $ | — | $ | — | $ | 4,579 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Loans | $ | 912 | $ | — | $ | — | $ | 912 | |||||||||||||
Mortgage servicing rights | 152 | — | — | 152 | |||||||||||||||||
Other real estate owned | 4,314 | — | — | 4,314 | |||||||||||||||||
Total | $ | 5,378 | $ | — | $ | — | $ | 5,378 | |||||||||||||
Rollforward of Level 3 Fair Value Financial Instruments | The following tables include a roll forward of the financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3), on a recurring basis, for the periods from December 31, 2012 to December 31, 2014. | ||||||||||||||||||||
Private Label | Derivative | Financial Assets | Loans | Total | |||||||||||||||||
Commercial Mortgage | Contracts | Acquired | |||||||||||||||||||
Related Securities | from Debtors | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Beginning balance, December 31, 2012 | $ | 6,197 | $ | (12 | ) | $ | 3,714 | $ | 2,806 | $ | 12,705 | ||||||||||
Purchases/additions | — | (5 | ) | 1,994 | — | 1,989 | |||||||||||||||
Sales | — | — | (120 | ) | — | (120 | ) | ||||||||||||||
Payments (received) made | (3,998 | ) | — | 1,143 | (104 | ) | (2,959 | ) | |||||||||||||
Premium amortization, net | (3 | ) | — | — | — | (3 | ) | ||||||||||||||
(Decrease) increase in value | (76 | ) | 13 | (4,793 | ) | (167 | ) | (5,023 | ) | ||||||||||||
Ending balance, December 31, 2013 | $ | 2,120 | $ | (4 | ) | $ | 1,938 | $ | 2,535 | $ | 6,589 | ||||||||||
Purchases/additions | — | (12 | ) | — | — | (12 | ) | ||||||||||||||
Sales | — | — | (1,938 | ) | — | (1,938 | ) | ||||||||||||||
Payments received | (2,118 | ) | — | — | (112 | ) | (2,230 | ) | |||||||||||||
Premium amortization, net | — | — | — | — | — | ||||||||||||||||
(Decrease) increase in value | (2 | ) | 4 | — | 28 | 30 | |||||||||||||||
Ending balance, December 31, 2014 | $ | — | $ | (12 | ) | $ | — | $ | 2,451 | $ | 2,439 | ||||||||||
PARENT_COMPANY_ONLY_FINANCIAL_1
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed balance sheet | CONDENSED BALANCE SHEET | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 290 | $ | 99 | |||||||||
Interest-earning deposits with banks | 19,994 | 25,934 | |||||||||||
Total cash and cash equivalents | 20,284 | 26,033 | |||||||||||
Investment in subsidiary | 148,897 | 140,527 | |||||||||||
Due from subsidiary, net | 1,020 | 888 | |||||||||||
ESOP loans | 5,525 | 6,109 | |||||||||||
Other assets | 261 | 20 | |||||||||||
Total Assets | 175,987 | 173,577 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Other liabilities | 76 | 110 | |||||||||||
Total Liabilities | 76 | 110 | |||||||||||
Stockholders' Equity | 175,911 | 173,467 | |||||||||||
Total Liabilities and Stockholders' Equity | $ | 175,987 | $ | 173,577 | |||||||||
Condensed statements of operations | CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
INCOME | |||||||||||||
Interest on deposits with banks | $ | 37 | $ | 37 | $ | 66 | |||||||
Interest on ESOP loans | 365 | 400 | 432 | ||||||||||
Total Income | 402 | 437 | 498 | ||||||||||
EXPENSES | |||||||||||||
Other expenses | 906 | 996 | 1,000 | ||||||||||
Total Expenses | 906 | 996 | 1,000 | ||||||||||
Loss before income tax benefit and equity in undistributed net earnings of subsidiary | (504 | ) | (559 | ) | (502 | ) | |||||||
Income tax benefit | (171 | ) | (280 | ) | (171 | ) | |||||||
Loss before equity in undistributed net earnings of subsidiary | (333 | ) | (279 | ) | (331 | ) | |||||||
Equity in undistributed net earnings of subsidiary | 8,528 | 5,813 | 5,393 | ||||||||||
Net Income | $ | 8,195 | $ | 5,534 | $ | 5,062 | |||||||
Condensed statements of cash flows | CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Cash Flows From Operating Activities | |||||||||||||
Net income | $ | 8,195 | $ | 5,534 | $ | 5,062 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed income of subsidiary | (8,528 | ) | (5,813 | ) | (5,393 | ) | |||||||
(Increase) decrease in due from subsidiary, net | (132 | ) | (907 | ) | 259 | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | (86 | ) | (59 | ) | (88 | ) | |||||||
(Increase) decrease in other assets | (155 | ) | 588 | (308 | ) | ||||||||
(Decrease) increase in other liabilities | (34 | ) | (2 | ) | 130 | ||||||||
Net Cash Used in Operating Activities | (740 | ) | (659 | ) | (338 | ) | |||||||
Cash Flows from Investing Activities | |||||||||||||
Loan payment received on ESOP loans | 584 | 550 | 516 | ||||||||||
Cash dividends received from subsidiary | 5,813 | — | 21,281 | ||||||||||
Net Cash Provided by Investing Activities | 6,397 | 550 | 21,797 | ||||||||||
Cash Flows from Financing Activities | |||||||||||||
Purchase of treasury stock | (6,262 | ) | (3,703 | ) | (9,911 | ) | |||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | 86 | 59 | 88 | ||||||||||
Receipts from subsidiary related to equity compensation activity | 1,248 | 3,316 | 646 | ||||||||||
Common stock issued for exercise of stock options | 439 | 106 | 480 | ||||||||||
Cash dividends paid | (6,917 | ) | (3,243 | ) | (2,382 | ) | |||||||
Net Cash Used in Financing Activities | (11,406 | ) | (3,465 | ) | (11,079 | ) | |||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (5,749 | ) | (3,574 | ) | 10,380 | ||||||||
Cash and Cash Equivalents—Beginning | 26,033 | 29,607 | 19,227 | ||||||||||
Cash and Cash Equivalents—Ending | $ | 20,284 | $ | 26,033 | $ | 29,607 | |||||||
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of quarterly financial data (unaudited) | |||||||||||||||||||||||||||||||||
Three Months Ended | 12/31/14 | 9/30/14 | 6/30/14 | 3/31/14 | 12/31/13 | 9/30/13 | 6/30/13 | 3/31/13 | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||
Interest income | $ | 9,840 | $ | 10,153 | $ | 10,078 | $ | 10,058 | $ | 10,291 | $ | 10,141 | $ | 9,825 | $ | 9,872 | |||||||||||||||||
Interest expense | 1,606 | 1,635 | 1,653 | 1,741 | 1,843 | 1,909 | 1,958 | 1,959 | |||||||||||||||||||||||||
Net interest income | 8,234 | 8,518 | 8,425 | 8,317 | 8,448 | 8,232 | 7,867 | 7,913 | |||||||||||||||||||||||||
Provision (Credit) for loan losses | 350 | 1,493 | 100 | — | 450 | 675 | (783 | ) | 640 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 7,884 | 7,025 | 8,325 | 8,317 | 7,998 | 7,557 | 8,650 | 7,273 | |||||||||||||||||||||||||
Noninterest income | 678 | 642 | 514 | 459 | 568 | 1,029 | 1,139 | 1,054 | |||||||||||||||||||||||||
Noninterest expense | 5,621 | 5,198 | 5,419 | 5,993 | 6,487 | 7,002 | 8,307 | 5,675 | |||||||||||||||||||||||||
Income before taxes | 2,941 | 2,469 | 3,420 | 2,783 | 2,079 | 1,584 | 1,482 | 2,652 | |||||||||||||||||||||||||
Income tax provision | 833 | 653 | 1,105 | 827 | 589 | 411 | 438 | 825 | |||||||||||||||||||||||||
Net Income | $ | 2,108 | $ | 1,816 | $ | 2,315 | $ | 1,956 | $ | 1,490 | $ | 1,173 | $ | 1,044 | $ | 1,827 | |||||||||||||||||
Per Common Share Data | |||||||||||||||||||||||||||||||||
Weighted average common shares—basic | 11,127,377 | 11,287,884 | 11,291,452 | 11,294,883 | 11,272,233 | 11,247,741 | 11,262,144 | 11,376,054 | |||||||||||||||||||||||||
Weighted average common shares—diluted | 11,366,427 | 11,523,917 | 11,534,163 | 11,555,104 | 11,535,589 | 11,494,520 | 11,489,566 | 11,602,633 | |||||||||||||||||||||||||
Net income per share—basic | $ | 0.19 | $ | 0.16 | $ | 0.21 | $ | 0.17 | $ | 0.13 | $ | 0.1 | $ | 0.09 | $ | 0.16 | |||||||||||||||||
Net income per share—diluted | $ | 0.19 | $ | 0.16 | $ | 0.2 | $ | 0.17 | $ | 0.13 | $ | 0.1 | $ | 0.09 | $ | 0.16 | |||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
branch | loan | ||||||||||
branch | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Mortgage Servicing Rights Gross | $210 | $210 | |||||||||
Mortgage Servicing Rights Valuation Allowance | 99 | 99 | |||||||||
Net income per share—diluted | $0.19 | $0.16 | $0.20 | $0.17 | $0.13 | $0.10 | $0.09 | $0.16 | $0.71 | $0.48 | $0.43 |
Mortgage servicing rights, net | $111 | $152 | $111 | $152 | |||||||
Number of Loans to ESOP | 2 | ||||||||||
Number of branches | 10 | 10 | |||||||||
Ownership (as a percent) | 45.00% | 45.00% | 45.00% | ||||||||
PMA | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Ownership (as a percent) | 45.00% | 45.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings | Minimum | |
PREMISES AND EQUIPMENT | |
Useful life | 10 years |
Buildings | Maximum | |
PREMISES AND EQUIPMENT | |
Useful life | 39 years |
Furniture and equipment | Minimum | |
PREMISES AND EQUIPMENT | |
Useful life | 1 year |
Furniture and equipment | Maximum | |
PREMISES AND EQUIPMENT | |
Useful life | 7 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Held for Investment | ||
Carrying value of property | $1,620 | $1,620 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended |
Dec. 31, 2014 | |
Initial 2006 stock offering | |
Employee Stock Ownership Plan | |
Period over which borrowed funds will be repaid | 15 years |
Mutual-to-stock conversion | |
Employee Stock Ownership Plan | |
Period over which borrowed funds will be repaid | 14 years 6 months |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
STOCK BASED COMPENSATION | |||
Excess tax benefits | $86 | $59 | $88 |
Stock options | |||
STOCK BASED COMPENSATION | |||
Vesting period | 5 years | ||
Expiration period | 10 years | ||
Non-performance based restricted stock | |||
STOCK BASED COMPENSATION | |||
Vesting period | 5 years | ||
Performance based restricted stock | |||
STOCK BASED COMPENSATION | |||
Vesting period | 5 years | ||
Performance based restricted stock | 50% vest on Third Anniversary | |||
STOCK BASED COMPENSATION | |||
Awarded performance based stock that vest on fourth anniversary (as a percent) | 50.00% | ||
Performance based restricted stock | 25% vest on Fourth Anniversary | |||
STOCK BASED COMPENSATION | |||
Awarded performance based stock that vest on fourth anniversary (as a percent) | 25.00% | ||
Performance based restricted stock | 25% vest on Fifth Anniversary | |||
STOCK BASED COMPENSATION | |||
Awarded performance based stock that vest on fourth anniversary (as a percent) | 25.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Earnings per share: | ||||||||||||||
Net income | $2,108 | $1,816 | $2,315 | $1,956 | $1,490 | $1,173 | $1,044 | $1,827 | $8,195 | $5,534 | $5,062 | |||
Weighted-average common shares outstanding (in shares) | 12,054,779 | [1] | 12,199,774 | [1] | 12,624,068 | [1] | ||||||||
Average common stock acquired by stock benefit plans: | ||||||||||||||
ESOP shares unallocated | -521,371 | -586,424 | -651,538 | |||||||||||
Shares purchased by trust | -283,366 | -324,207 | -372,653 | |||||||||||
Weighted-average common shares used to calculate basic earnings per share (in shares) | 11,127,377 | 11,287,884 | 11,291,452 | 11,294,883 | 11,272,233 | 11,247,741 | 11,262,144 | 11,376,054 | 11,250,042 | 11,289,143 | 11,599,877 | |||
Dilutive effect of: | ||||||||||||||
Restricted stock awards | 51,810 | 42,582 | 29,653 | |||||||||||
Stock option awards | 197,209 | 198,429 | 117,731 | |||||||||||
Weighted average common share-diluted (in shares) | 11,366,427 | 11,523,917 | 11,534,163 | 11,555,104 | 11,535,589 | 11,494,520 | 11,489,566 | 11,602,633 | 11,499,061 | 11,530,154 | 11,747,261 | |||
Net income per share—basic | $0.19 | $0.16 | $0.21 | $0.17 | $0.13 | $0.10 | $0.09 | $0.16 | $0.73 | $0.49 | $0.44 | |||
Net income per share—diluted | $0.19 | $0.16 | $0.20 | $0.17 | $0.13 | $0.10 | $0.09 | $0.16 | $0.71 | $0.48 | $0.43 | |||
Outstanding common stock equivalents having no dilutive effect (in shares) | 1,040,123 | 1,108,329 | 860,842 | |||||||||||
[1] | Excludes treasury stock. |
INVESTMENT_AND_MORTGAGE_RELATE2
INVESTMENT AND MORTGAGE RELATED SECURITIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Available-for-Sale Securities: | ||
Amortized Cost | $132,282 | $263,414 |
Gross Unrealized Gains | 2,427 | 2,719 |
Gross Unrealized Losses | -672 | -9,576 |
Fair Value | 134,037 | 256,557 |
Held-to-maturity Securities: | ||
Amortized Cost | 170,172 | 68,397 |
Gross Unrealized Gains | 1,245 | 514 |
Gross Unrealized Losses | -563 | -1,420 |
Fair Value | 170,854 | 67,491 |
Available-for-sale securities: | ||
Fair Value, Less than 12 Months | 8,229 | 180,448 |
Unrealized Losses, Less than 12 Months | -15 | -7,251 |
Fair Value, 12 Months or More | 64,502 | 27,823 |
Unrealized Losses, 12 Months or More | -657 | -2,325 |
Fair Value, Total | 72,731 | 208,271 |
Unrealized Losses, Total | -672 | -9,576 |
Held-to-maturity Securities: | ||
Fair Value, Less than 12 Months | 25,660 | 40,615 |
Unrealized Losses, Less than 12 Months | -110 | -1,420 |
Fair Value, 12 Months or More | 27,182 | 0 |
Unrealized Losses Plus OTTI in AOCI, 12 Months or More | -453 | 0 |
Fair Value, Total | 52,842 | 40,615 |
Unrealized Losses, Total | -563 | -1,420 |
Temporarily Impaired Securities | ||
Fair Value, Less than 12 Months | 33,889 | 221,063 |
Unrealized Losses, Less than 12 Months | -125 | -8,671 |
Fair Value, 12 Months or More | 91,684 | 27,823 |
Unrealized Losses Plus OTTI in AOCI, 12 Months or More | -1,110 | -2,325 |
Fair Value, Total | 125,573 | 248,886 |
Unrealized Losses, Total | -1,235 | -10,996 |
Debt securities excluding mortgage related securities | ||
Available-for-Sale Securities: | ||
Amortized Cost | 8,353 | 10,445 |
Gross Unrealized Gains | 35 | 62 |
Gross Unrealized Losses | 0 | -18 |
Fair Value | 8,388 | 10,489 |
Available-for-sale securities: | ||
Fair Value, Less than 12 Months | 0 | 0 |
Unrealized Losses, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or More | 0 | 2,982 |
Unrealized Losses, 12 Months or More | 0 | -18 |
Fair Value, Total | 0 | 2,982 |
Unrealized Losses, Total | 0 | -18 |
Obligations of U.S. government agencies | ||
Available-for-Sale Securities: | ||
Amortized Cost | 300 | 300 |
Gross Unrealized Gains | 2 | 8 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 302 | 308 |
Corporate securities | ||
Available-for-Sale Securities: | ||
Amortized Cost | 8,053 | 10,145 |
Gross Unrealized Gains | 33 | 54 |
Gross Unrealized Losses | 0 | -18 |
Fair Value | 8,086 | 10,181 |
Available-for-sale securities: | ||
Fair Value, Less than 12 Months | 0 | 0 |
Unrealized Losses, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or More | 0 | 2,982 |
Unrealized Losses, 12 Months or More | 0 | -18 |
Fair Value, Total | 0 | 2,982 |
Unrealized Losses, Total | 0 | -18 |
Mortgage related securities | ||
Available-for-Sale Securities: | ||
Amortized Cost | 123,929 | 252,969 |
Gross Unrealized Gains | 2,392 | 2,657 |
Gross Unrealized Losses | -672 | -9,558 |
Fair Value | 125,649 | 246,068 |
Held-to-maturity Securities: | ||
Amortized Cost | 170,172 | 68,397 |
Gross Unrealized Gains | 1,245 | 514 |
Gross Unrealized Losses | -563 | -1,420 |
Fair Value | 170,854 | 67,491 |
Available-for-sale securities: | ||
Fair Value, Less than 12 Months | 8,229 | 180,448 |
Unrealized Losses, Less than 12 Months | -15 | -7,251 |
Fair Value, 12 Months or More | 64,502 | 24,841 |
Unrealized Losses, 12 Months or More | -657 | -2,307 |
Fair Value, Total | 72,731 | 205,289 |
Unrealized Losses, Total | -672 | -9,558 |
Held-to-maturity Securities: | ||
Fair Value, Less than 12 Months | 25,660 | 40,615 |
Unrealized Losses, Less than 12 Months | -110 | -1,420 |
Fair Value, 12 Months or More | 27,182 | 0 |
Unrealized Losses Plus OTTI in AOCI, 12 Months or More | -453 | 0 |
Fair Value, Total | 52,842 | 40,615 |
Unrealized Losses, Total | -563 | -1,420 |
Private label commercial mortgage related securities | ||
Available-for-Sale Securities: | ||
Amortized Cost | 0 | 2,118 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 2,120 |
Held-to-maturity Securities: | ||
Amortized Cost | 2,979 | |
Gross Unrealized Gains | 6 | |
Gross Unrealized Losses | 0 | |
Fair Value | 2,985 | |
Agency residential mortgage related securities | ||
Available-for-Sale Securities: | ||
Amortized Cost | 123,929 | 250,851 |
Gross Unrealized Gains | 2,392 | 2,655 |
Gross Unrealized Losses | -672 | -9,558 |
Fair Value | 125,649 | 243,948 |
Held-to-maturity Securities: | ||
Amortized Cost | 167,193 | 68,397 |
Gross Unrealized Gains | 1,239 | 514 |
Gross Unrealized Losses | -563 | -1,420 |
Fair Value | 167,869 | 67,491 |
Available-for-sale securities: | ||
Fair Value, Less than 12 Months | 8,229 | 180,448 |
Unrealized Losses, Less than 12 Months | -15 | -7,251 |
Fair Value, 12 Months or More | 64,502 | 24,841 |
Unrealized Losses, 12 Months or More | -657 | -2,307 |
Fair Value, Total | 72,731 | 205,289 |
Unrealized Losses, Total | -672 | -9,558 |
Held-to-maturity Securities: | ||
Fair Value, Less than 12 Months | 25,660 | 40,615 |
Unrealized Losses, Less than 12 Months | -110 | -1,420 |
Fair Value, 12 Months or More | 27,182 | 0 |
Unrealized Losses Plus OTTI in AOCI, 12 Months or More | -453 | 0 |
Fair Value, Total | 52,842 | 40,615 |
Unrealized Losses, Total | -563 | -1,420 |
Temporarily Impaired Securities | ||
Unrealized Losses, Less than 12 Months | -125 | |
Fair Value, 12 Months or More | 91,700 | |
Unrealized Losses Plus OTTI in AOCI, 12 Months or More | -1,100 | |
Private label residential mortgage related security | ||
Held-to-maturity Securities: | ||
Amortized Cost | $3,000 |
INVESTMENT_AND_MORTGAGE_RELATE3
INVESTMENT AND MORTGAGE RELATED SECURITIES (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
security | security | |
INVESTMENT AND MORTGAGE RELATED SECURITIES | ||
Amortized cost of transferred securities excluding transfer loss | $94,992,000 | |
Number of securities sold | 0 | |
Temporarily Impaired Investments Continuous Unrealized Loss Position Aggregate Losses 1 | 1,235,000 | 10,996,000 |
Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Loss | 125,000 | 8,671,000 |
Amortized Cost | 132,282,000 | 263,414,000 |
Fair Value of securities impaired greater than twelve months | 91,684,000 | 27,823,000 |
Temporarily Impaired Investments Continuous Unrealized Loss Position 12 Months or Longer Aggregate Losses | 1,110,000 | 2,325,000 |
Net unrealized loss on date of transfer from available-for-sale | -1,625,000 | |
Accretion of Transfer Loss for Securities Transferred from Available-for-Sale to Held-to-Maturity | 60,000 | |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 170,172,000 | 68,397,000 |
Amortized Cost of Held-to-Maturity Securities excluding Transfer Loss | 171,737,000 | |
Number of securities transferred | 38 | |
Securities Transferred From Available For Sale To Held To Maturity, FV | 96,900,000 | |
Transferred Securities from Available-for-Sale [Member] | ||
INVESTMENT AND MORTGAGE RELATED SECURITIES | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 93,427,000 | |
Mortgage related securities | ||
INVESTMENT AND MORTGAGE RELATED SECURITIES | ||
Amortized Cost | 123,929,000 | 252,969,000 |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 170,172,000 | 68,397,000 |
Corporate securities | ||
INVESTMENT AND MORTGAGE RELATED SECURITIES | ||
Amortized Cost | 8,053,000 | 10,145,000 |
Agency residential mortgage related securities | ||
INVESTMENT AND MORTGAGE RELATED SECURITIES | ||
Number of Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months | 15 | |
Number of Mortgage Related Securities, Continuous Unrealized Loss Position, Twelve Months or Longer | 40 | |
Number of Agency Residential Mortgage Related Securities | 55 | |
Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 33,889,000 | |
Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Loss | 125,000 | |
Amortized Cost | 123,929,000 | 250,851,000 |
Fair Value of securities impaired greater than twelve months | 91,700,000 | |
Temporarily Impaired Investments Continuous Unrealized Loss Position 12 Months or Longer Aggregate Losses | 1,100,000 | |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 167,193,000 | 68,397,000 |
Private label commercial mortgage related securities | ||
INVESTMENT AND MORTGAGE RELATED SECURITIES | ||
Amortized Cost | 0 | 2,118,000 |
Number of securities held | 1 | 2 |
Net unrealized gain | 2,000 | |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 2,979,000 | |
Residential Mortgage Backed Securities [Member] | ||
INVESTMENT AND MORTGAGE RELATED SECURITIES | ||
Net unrealized gain | 6,000 | |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 3,000,000 | |
Held-to-Maturity, Excluding Transferred Securities [Member] | ||
INVESTMENT AND MORTGAGE RELATED SECURITIES | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $76,745,000 |
INVESTMENT_AND_MORTGAGE_RELATE4
INVESTMENT AND MORTGAGE RELATED SECURITIES (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
security | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Fair Value of Investment Securities Pledged | $37,000,000 | $9,700,000 | |
Fair Value of Investment Securities Pledged for Borrowings | 169,700,000 | 197,600,000 | |
Number of Debt Securities Sold | 0 | ||
Gross Realized Gains | 532,000 | 3,379,000 | |
Gross Realized Losses | 0 | -87,000 | |
Net investment securities gains | 0 | 532,000 | 3,292,000 |
Mortgage related securities | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Gross Realized Gains | 532,000 | 3,315,000 | |
Gross Realized Losses | 0 | -87,000 | |
Net investment securities gains | 532,000 | 3,228,000 | |
Agency residential mortgage related securities | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Gross Realized Gains | 532,000 | 3,315,000 | |
Net investment securities gains | 532,000 | 3,315,000 | |
Private label residential mortgage related security | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Gross Realized Losses | 0 | -87,000 | |
Net investment securities gains | 0 | -87,000 | |
Debt securities excluding mortgage related securities | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Gross Realized Gains | 0 | 64,000 | |
Net investment securities gains | 0 | 64,000 | |
Obligations of U.S. government agencies | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Gross Realized Gains | 0 | 64,000 | |
Net investment securities gains | $0 | $64,000 |
INVESTMENT_AND_MORTGAGE_RELATE5
INVESTMENT AND MORTGAGE RELATED SECURITIES (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Available for Sale, Amortized Cost | ||
Due in one year or less | $5,803,000 | $1,999,000 |
Due after one year through five years | 2,550,000 | 8,446,000 |
Due after five years through ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Total mortgage related securities | 123,929,000 | 252,969,000 |
Total Amortized Cost | 132,282,000 | 263,414,000 |
Available for Sale, Fair Value | ||
Due in one year or less | 5,818,000 | 2,000,000 |
Due after one year through five years | 2,570,000 | 8,489,000 |
Due after five years through ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Total mortgage related securities | 125,649,000 | 246,068,000 |
Total Fair Value | 134,037,000 | 256,557,000 |
Held to Maturity, Amortized Cost | ||
Total mortgage related securities | 170,172,000 | 68,397,000 |
Total Amortized Cost | 170,172,000 | 68,397,000 |
Held to Maturity, Fair Value | ||
Total mortgage related securities | 170,854,000 | 67,491,000 |
Total Fair Value | 170,854,000 | 67,491,000 |
Fair Value of Investment Securities Pledged | 37,000,000 | 9,700,000 |
Fair Value of Investment Securities Pledged for Borrowings | 169,700,000 | 197,600,000 |
Fair value of investment securities used to secure derivative transactions | $1,100,000 | $702,000 |
LOANS_Details
LOANS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
LOANS | |||
Total loans | $735,350 | $732,261 | |
Deferred loan origination cost, net | -294 | -242 | |
Allowance for loan losses | -10,730 | -11,529 | -11,170 |
Net loans | 724,326 | 720,490 | |
Loans and Leases Receivable, Gross | 724,326 | 720,490 | |
Real estate loans: | |||
LOANS | |||
Total loans | 536,570 | 541,770 | |
One- to four-family | |||
LOANS | |||
Total loans | 108,208 | 127,501 | |
Allowance for loan losses | -405 | -403 | -642 |
Multi-family and commercial | |||
LOANS | |||
Total loans | 388,821 | 408,365 | |
Allowance for loan losses | -5,990 | -7,141 | -6,327 |
Construction | |||
LOANS | |||
Total loans | 39,541 | 5,904 | |
Allowance for loan losses | -1,038 | -324 | -873 |
Consumer | |||
LOANS | |||
Total loans | 19,599 | 22,478 | |
Allowance for loan losses | -184 | -153 | -232 |
Commercial and industrial | |||
LOANS | |||
Total loans | 179,181 | 168,013 | |
Allowance for loan losses | ($2,753) | ($3,051) | ($2,630) |
LOANS_Details_2
LOANS (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in allowance for loan losses | ||
Balance, beginning | $11,529 | $11,170 |
Provision for loan losses | 1,943 | 982 |
Loans charged off | -2,835 | -713 |
Recoveries | 93 | 90 |
Balance, ending | $10,730 | $11,529 |
LOANS_Details_3
LOANS (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
LOANS | ||
Financing Receivable, Individually Evaluated for Impairment | $11,532 | $15,566 |
Financing Receivable, Collectively Evaluated for Impairment | 723,818 | 716,695 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 552 | 1,720 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 10,178 | 9,809 |
Principal Amount of Loans Receivable Gross | 735,350 | 732,261 |
Changes in allowance for loan losses | ||
Balance, beginning | 11,529 | 11,170 |
Provision for loan losses | 1,943 | 982 |
Loans charged off | -2,835 | -713 |
Recoveries | 93 | 90 |
Balance, ending | 10,730 | 11,529 |
One- to four-family | ||
LOANS | ||
Financing Receivable, Individually Evaluated for Impairment | 2,629 | 2,972 |
Financing Receivable, Collectively Evaluated for Impairment | 105,579 | 124,529 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 11 | 164 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 394 | 239 |
Principal Amount of Loans Receivable Gross | 108,208 | 127,501 |
Changes in allowance for loan losses | ||
Balance, beginning | 403 | 642 |
Provision for loan losses | -20 | -95 |
Loans charged off | -6 | -179 |
Recoveries | 28 | 35 |
Balance, ending | 405 | 403 |
Multi-family and commercial | ||
LOANS | ||
Financing Receivable, Individually Evaluated for Impairment | 5,849 | 9,222 |
Financing Receivable, Collectively Evaluated for Impairment | 382,972 | 399,143 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 401 | 1,287 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 5,589 | 5,854 |
Principal Amount of Loans Receivable Gross | 388,821 | 408,365 |
Changes in allowance for loan losses | ||
Balance, beginning | 7,141 | 6,327 |
Provision for loan losses | -357 | 1,252 |
Loans charged off | -811 | -463 |
Recoveries | 17 | 25 |
Balance, ending | 5,990 | 7,141 |
Construction | ||
LOANS | ||
Financing Receivable, Individually Evaluated for Impairment | 2,723 | 3,231 |
Financing Receivable, Collectively Evaluated for Impairment | 36,818 | 2,673 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 114 | 263 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 924 | 61 |
Principal Amount of Loans Receivable Gross | 39,541 | 5,904 |
Changes in allowance for loan losses | ||
Balance, beginning | 324 | 873 |
Provision for loan losses | 714 | -549 |
Loans charged off | 0 | 0 |
Recoveries | 0 | 0 |
Balance, ending | 1,038 | 324 |
Consumer | ||
LOANS | ||
Financing Receivable, Individually Evaluated for Impairment | 256 | 141 |
Financing Receivable, Collectively Evaluated for Impairment | 19,343 | 22,337 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 26 | 6 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 158 | 147 |
Principal Amount of Loans Receivable Gross | 19,599 | 22,478 |
Changes in allowance for loan losses | ||
Balance, beginning | 153 | 232 |
Provision for loan losses | -1 | -38 |
Loans charged off | -16 | -71 |
Recoveries | 48 | 30 |
Balance, ending | 184 | 153 |
Commercial and industrial | ||
LOANS | ||
Financing Receivable, Individually Evaluated for Impairment | 75 | 0 |
Financing Receivable, Collectively Evaluated for Impairment | 179,106 | 168,013 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2,753 | 3,051 |
Principal Amount of Loans Receivable Gross | 179,181 | 168,013 |
Changes in allowance for loan losses | ||
Balance, beginning | 3,051 | 2,630 |
Provision for loan losses | 1,704 | 421 |
Loans charged off | -2,002 | 0 |
Recoveries | 0 | 0 |
Balance, ending | 2,753 | 3,051 |
Unallocated | ||
LOANS | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Collectively Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 360 | 457 |
Changes in allowance for loan losses | ||
Balance, beginning | 457 | 466 |
Provision for loan losses | -97 | -9 |
Loans charged off | 0 | 0 |
Recoveries | 0 | 0 |
Balance, ending | $360 | $457 |
LOANS_Details_4
LOANS (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Impaired loans by loan segment | |||
Nonaccrual Loans | $3,454,000 | $8,780,000 | |
Accruing TDRs | 3,624,000 | 6,786,000 | |
Other Impaired Loans | 4,454,000 | 0 | |
Total Impaired Loans | 11,532,000 | 15,566,000 | |
Impaired Loans with Allowance | 7,444,000 | 15,210,000 | |
Impaired Loans without Allowance | 4,088,000 | 356,000 | |
Average recorded investment in impaired loans | 12,500,000 | 15,900,000 | 28,700,000 |
Interest income recognized on impaired loans | 533,000 | 359,000 | 502,000 |
One- to four-family | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 1,741,000 | 2,390,000 | |
Accruing TDRs | 888,000 | 582,000 | |
Other Impaired Loans | 0 | 0 | |
Total Impaired Loans | 2,629,000 | 2,972,000 | |
Impaired Loans with Allowance | 137,000 | 2,972,000 | |
Impaired Loans without Allowance | 2,492,000 | 0 | |
Multi-family and commercial | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 1,395,000 | 3,031,000 | |
Accruing TDRs | 0 | 6,191,000 | |
Other Impaired Loans | 4,454,000 | 0 | |
Total Impaired Loans | 5,849,000 | 9,222,000 | |
Impaired Loans with Allowance | 4,502,000 | 8,866,000 | |
Impaired Loans without Allowance | 1,347,000 | 356,000 | |
Construction | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 0 | 3,231,000 | |
Accruing TDRs | 2,723,000 | 0 | |
Other Impaired Loans | 0 | 0 | |
Total Impaired Loans | 2,723,000 | 3,231,000 | |
Impaired Loans with Allowance | 2,723,000 | 3,231,000 | |
Impaired Loans without Allowance | 0 | 0 | |
Consumer | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 243,000 | 128,000 | |
Accruing TDRs | 13,000 | 13,000 | |
Other Impaired Loans | 0 | 0 | |
Total Impaired Loans | 256,000 | 141,000 | |
Impaired Loans with Allowance | 82,000 | 141,000 | |
Impaired Loans without Allowance | 174,000 | 0 | |
Commercial and industrial | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 75,000 | 0 | |
Accruing TDRs | 0 | 0 | |
Other Impaired Loans | 0 | 0 | |
Total Impaired Loans | 75,000 | 0 | |
Impaired Loans with Allowance | 0 | 0 | |
Impaired Loans without Allowance | $75,000 | $0 |
LOANS_Details_5
LOANS (Details 5) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
loan | loan | ||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | $3,454,000 | $8,780,000 | |
Increase in interest income, if recognized | 161,000 | 600,000 | 1,500,000 |
Loans past due 90 days or more and still accruing interest | 0 | 0 | 0 |
TDRs additional disclosure | |||
Number of troubled debt restructurings, nonaccrual status | 4 | 4 | |
Troubled debt restructurings excluded from accruing TDR | 1,400,000 | 3,500,000 | |
Number of Loans | 2 | 2 | |
Pre-Modification Outstanding Recorded Investment | 1,885,000 | 622,000 | |
Post-Modification Outstanding Recorded Investment | 1,785,000 | 622,000 | |
Financing Receivables Modifications Subsequent Default Recorded Investment | 1,600,000 | 1,600,000 | |
Allowance for Loan and Lease Losses, Write-offs | 2,835,000 | 713,000 | |
One- to four-family | |||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | 1,741,000 | 2,390,000 | |
TDRs additional disclosure | |||
Number of troubled debt restructurings, nonaccrual status | 3 | 3 | |
Troubled debt restructurings excluded from accruing TDR | 300,000 | 256,000 | |
Number of Loans | 1 | 2 | |
Pre-Modification Outstanding Recorded Investment | 245,000 | 622,000 | |
Post-Modification Outstanding Recorded Investment | 245,000 | 622,000 | |
Allowance for Loan and Lease Losses, Write-offs | 6,000 | 179,000 | |
Multi-family and commercial | |||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | 1,395,000 | 3,031,000 | |
TDRs additional disclosure | |||
Number of troubled debt restructurings, nonaccrual status | 1 | ||
Troubled debt restructurings excluded from accruing TDR | 1,100,000 | ||
Number of Loans | 1 | 0 | |
Pre-Modification Outstanding Recorded Investment | 1,640,000 | 0 | |
Post-Modification Outstanding Recorded Investment | 1,540,000 | 0 | |
Financing Receivable, Modifications, Number of Contracts Reclassified from Accruing TDR to Other Impaired Loans | 1 | ||
Financing Receivable, Modifications, Reclassified from Accruing TDR to other Impaired Loans | 4,500,000 | ||
Allowance for Loan and Lease Losses, Write-offs | 811,000 | 463,000 | |
Multi-family and commercial | Defaulted Troubled Debt Restructurings [Member] | |||
TDRs additional disclosure | |||
Allowance for Loan and Lease Losses, Write-offs | 552,000 | ||
Write-offs at time of Modification | 100,000 | ||
Construction | |||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | 0 | 3,231,000 | |
TDRs additional disclosure | |||
Number of troubled debt restructurings, nonaccrual status | 1 | ||
Troubled debt restructurings excluded from accruing TDR | 3,200,000 | ||
Commitments to lend additional funds | 618,000 | ||
Number of Loans | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | |
Consumer | |||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | 243,000 | 128,000 | |
TDRs additional disclosure | |||
Number of Loans | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Allowance for Loan and Lease Losses, Write-offs | 16,000 | 71,000 | |
Commercial and industrial | |||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | 75,000 | 0 | |
TDRs additional disclosure | |||
Number of Loans | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Allowance for Loan and Lease Losses, Write-offs | $2,002,000 | $0 |
LOANS_Details_6
LOANS (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Allowance for loan loss for impaired loans and general allowance by loan segment | |||
Nonaccrual Loans, Allowance for Loan Losses | $47 | $1,032 | |
Accruing TDRs, Allowance for Loan Losses | 114 | 688 | |
Other Impaired Loans, Allowance for Loan Loss | 391 | 0 | |
Total Impaired Loans, Allowance for Loan Losses | 552 | 1,720 | |
General Allowance for Loan Losses | 10,178 | 9,809 | |
Total | 10,730 | 11,529 | 11,170 |
One- to four-family | |||
Allowance for loan loss for impaired loans and general allowance by loan segment | |||
Nonaccrual Loans, Allowance for Loan Losses | 11 | 163 | |
Accruing TDRs, Allowance for Loan Losses | 0 | 1 | |
Other Impaired Loans, Allowance for Loan Loss | 0 | 0 | |
Total Impaired Loans, Allowance for Loan Losses | 11 | 164 | |
General Allowance for Loan Losses | 394 | 239 | |
Total | 405 | 403 | 642 |
Multi-family and commercial | |||
Allowance for loan loss for impaired loans and general allowance by loan segment | |||
Nonaccrual Loans, Allowance for Loan Losses | 10 | 600 | |
Accruing TDRs, Allowance for Loan Losses | 0 | 687 | |
Other Impaired Loans, Allowance for Loan Loss | 391 | 0 | |
Total Impaired Loans, Allowance for Loan Losses | 401 | 1,287 | |
General Allowance for Loan Losses | 5,589 | 5,854 | |
Total | 5,990 | 7,141 | 6,327 |
Construction | |||
Allowance for loan loss for impaired loans and general allowance by loan segment | |||
Nonaccrual Loans, Allowance for Loan Losses | 0 | 263 | |
Accruing TDRs, Allowance for Loan Losses | 114 | 0 | |
Other Impaired Loans, Allowance for Loan Loss | 0 | 0 | |
Total Impaired Loans, Allowance for Loan Losses | 114 | 263 | |
General Allowance for Loan Losses | 924 | 61 | |
Total | 1,038 | 324 | 873 |
Consumer | |||
Allowance for loan loss for impaired loans and general allowance by loan segment | |||
Nonaccrual Loans, Allowance for Loan Losses | 26 | 6 | |
Accruing TDRs, Allowance for Loan Losses | 0 | 0 | |
Other Impaired Loans, Allowance for Loan Loss | 0 | 0 | |
Total Impaired Loans, Allowance for Loan Losses | 26 | 6 | |
General Allowance for Loan Losses | 158 | 147 | |
Total | 184 | 153 | 232 |
Commercial and industrial | |||
Allowance for loan loss for impaired loans and general allowance by loan segment | |||
Nonaccrual Loans, Allowance for Loan Losses | 0 | 0 | |
Accruing TDRs, Allowance for Loan Losses | 0 | 0 | |
Other Impaired Loans, Allowance for Loan Loss | 0 | 0 | |
Total Impaired Loans, Allowance for Loan Losses | 0 | 0 | |
General Allowance for Loan Losses | 2,753 | 3,051 | |
Total | 2,753 | 3,051 | 2,630 |
Unallocated | |||
Allowance for loan loss for impaired loans and general allowance by loan segment | |||
Nonaccrual Loans, Allowance for Loan Losses | 0 | 0 | |
Accruing TDRs, Allowance for Loan Losses | 0 | 0 | |
Other Impaired Loans, Allowance for Loan Loss | 0 | 0 | |
Total Impaired Loans, Allowance for Loan Losses | 0 | 0 | |
General Allowance for Loan Losses | 360 | 457 | |
Total | $360 | $457 | $466 |
LOANS_Details_7
LOANS (Details 7) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Past due loans | ||
30 - 59 Days Past Due | $113 | $413 |
60 - 89 Days Past Due | 145 | 5 |
One- to four-family | ||
Past due loans | ||
30 - 59 Days Past Due | 0 | 172 |
60 - 89 Days Past Due | 145 | 0 |
Multi-family and commercial | ||
Past due loans | ||
30 - 59 Days Past Due | 0 | 0 |
60 - 89 Days Past Due | 0 | 0 |
Construction | ||
Past due loans | ||
30 - 59 Days Past Due | 0 | 0 |
60 - 89 Days Past Due | 0 | 0 |
Consumer | ||
Past due loans | ||
30 - 59 Days Past Due | 113 | 241 |
60 - 89 Days Past Due | 0 | 5 |
Commercial and industrial | ||
Past due loans | ||
30 - 59 Days Past Due | 0 | 0 |
60 - 89 Days Past Due | $0 | $0 |
LOANS_Details_8
LOANS (Details 8) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
weakness | ||
classification | ||
Criticized and classified loans by segment | ||
Number of primary classification for loans | 6 | |
Number of classifications for problem loans | 3 | |
Minimum number of defined weaknesses for substandard loans | 1 | |
Total loans | $735,350 | $732,261 |
One- to four-family | ||
Criticized and classified loans by segment | ||
Total loans | 108,208 | 127,501 |
Multi-family and commercial | ||
Criticized and classified loans by segment | ||
Total loans | 388,821 | 408,365 |
Construction | ||
Criticized and classified loans by segment | ||
Total loans | 39,541 | 5,904 |
Consumer | ||
Criticized and classified loans by segment | ||
Total loans | 19,599 | 22,478 |
Commercial and industrial | ||
Criticized and classified loans by segment | ||
Total loans | 179,181 | 168,013 |
Pass and Pass watch | ||
Criticized and classified loans by segment | ||
Total loans | 712,330 | 706,378 |
Pass and Pass watch | One- to four-family | ||
Criticized and classified loans by segment | ||
Total loans | 106,467 | 125,111 |
Pass and Pass watch | Multi-family and commercial | ||
Criticized and classified loans by segment | ||
Total loans | 376,134 | 390,908 |
Pass and Pass watch | Construction | ||
Criticized and classified loans by segment | ||
Total loans | 36,229 | 2,673 |
Pass and Pass watch | Consumer | ||
Criticized and classified loans by segment | ||
Total loans | 19,357 | 22,350 |
Pass and Pass watch | Commercial and industrial | ||
Criticized and classified loans by segment | ||
Total loans | 174,143 | 165,336 |
Special mention loans | ||
Criticized and classified loans by segment | ||
Total loans | 14,141 | 15,091 |
Special mention loans | One- to four-family | ||
Criticized and classified loans by segment | ||
Total loans | 0 | 0 |
Special mention loans | Multi-family and commercial | ||
Criticized and classified loans by segment | ||
Total loans | 8,406 | 12,414 |
Special mention loans | Construction | ||
Criticized and classified loans by segment | ||
Total loans | 2,723 | 0 |
Special mention loans | Consumer | ||
Criticized and classified loans by segment | ||
Total loans | 0 | 0 |
Special mention loans | Commercial and industrial | ||
Criticized and classified loans by segment | ||
Total loans | 3,012 | 2,677 |
Substandard loans | ||
Criticized and classified loans by segment | ||
Total loans | 8,879 | 10,792 |
Substandard loans | One- to four-family | ||
Criticized and classified loans by segment | ||
Total loans | 1,741 | 2,390 |
Substandard loans | Multi-family and commercial | ||
Criticized and classified loans by segment | ||
Total loans | 4,281 | 5,043 |
Substandard loans | Construction | ||
Criticized and classified loans by segment | ||
Total loans | 589 | 3,231 |
Substandard loans | Consumer | ||
Criticized and classified loans by segment | ||
Total loans | 242 | 128 |
Substandard loans | Commercial and industrial | ||
Criticized and classified loans by segment | ||
Total loans | 2,026 | 0 |
Doubtful loans | ||
Criticized and classified loans by segment | ||
Total loans | 0 | 0 |
Doubtful loans | One- to four-family | ||
Criticized and classified loans by segment | ||
Total loans | 0 | 0 |
Doubtful loans | Multi-family and commercial | ||
Criticized and classified loans by segment | ||
Total loans | 0 | 0 |
Doubtful loans | Construction | ||
Criticized and classified loans by segment | ||
Total loans | 0 | 0 |
Doubtful loans | Consumer | ||
Criticized and classified loans by segment | ||
Total loans | 0 | 0 |
Doubtful loans | Commercial and industrial | ||
Criticized and classified loans by segment | ||
Total loans | $0 | $0 |
DERIVATIVES_AND_HEDGING_Detail
DERIVATIVES AND HEDGING (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Nov. 03, 2006 | Oct. 12, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest rate swap maturing in April 2022 | ||||
Derivative | ||||
Notional amount, interest rate swap | $798,000 | |||
Fixed rate loan term | 15 years | |||
Interest rate on loans receivable | 7.43% | |||
Fixed interest rate to be paid under hedge (as a percent) | 7.43% | |||
Variable interest rate basis | one-month LIBOR | |||
Margin added to derivative interest rate (as a percent) | 2.24% | |||
Fair value loss position on interest rate swap derivative | 116,000 | 132,000 | ||
Interest rate swap maturing in October 2021 | ||||
Derivative | ||||
Notional amount, interest rate swap | 1,500,000 | |||
Fixed rate loan term | 10 years | |||
Interest rate on loans receivable | 5.83% | |||
Fixed interest rate to be paid under hedge (as a percent) | 5.83% | |||
Variable interest rate basis | one-month LIBOR | |||
Margin added to derivative interest rate (as a percent) | 3.50% | |||
Fair value loss position on interest rate swap derivative | 46,000 | |||
Derivative Asset, Fair Value, Gross Asset | 12,000 | |||
Hedge ineffectiveness, income | 16,000 | 20,000 | ||
Credit Derivatives (Interest Rate Swap Underlyings) | ||||
Derivative | ||||
Number of derivative transactions | 4 | 5 | ||
Notional amount of credit swap derivative (protection sold) | 12,600,000 | 19,500,000 | ||
Remaining maturity period, minimum | 5 years | 6 years | ||
Remaining maturity period, maximum | 8 years | 9 years | ||
Fair value of swap asset (liability) | 91,000 | 969,000 | ||
Recognized income | 8,000 | 10,000 | ||
Derivative liability | 10,000 | 3,000 | ||
Credit Derivatives (Foreign Currency Swap Underlyings) | ||||
Derivative | ||||
Number of derivative transactions | 6 | 7 | ||
Notional amount of credit swap derivative (protection sold) | 366,000 | 517,000 | ||
Remaining maturity period, minimum | 1 month | 1 month | ||
Remaining maturity period, maximum | 4 months | 11 months | ||
Fair value of swap asset (liability) | 44,000 | 0 | ||
Recognized income | 12,000 | 3,000 | ||
Derivative liability | $2,000 | $1,000 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | $22,130 | $21,907 |
Less: accumulated depreciation | -12,712 | -12,093 |
Premises and equipment, net | 9,418 | 9,814 |
Land | ||
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | 3,207 | 3,207 |
Buildings | ||
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | 13,917 | 13,759 |
Leasehold improvements | ||
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | 161 | 202 |
Furniture, fixtures and equipment | ||
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | $4,845 | $4,739 |
PREMISES_AND_EQUIPMENT_Details1
PREMISES AND EQUIPMENT (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating leases | |||
Rental expenses | $401 | $409 | $451 |
Minimum future rental payments under non-cancelable leases | |||
2014 | 428 | ||
2015 | 36 | ||
2016 | 0 | ||
2017 | 0 | ||
2018 | 0 | ||
Office rent | |||
Operating leases | |||
Rental expenses | 399 | 407 | 449 |
Equipment lease | |||
Operating leases | |||
Rental expenses | $2 | $2 | $2 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Weighted Average Interest Rate | ||
NOW accounts | 0.21% | 0.21% |
Money market accounts | 0.22% | 0.20% |
Savings and club accounts | 0.37% | 0.22% |
Brokered deposits | 0.73% | 0.56% |
Certificates of deposit | 0.87% | 1.26% |
Deposits | 0.42% | 0.56% |
Deposits | ||
Noninterest-bearing demand accounts | $168,791 | $100,748 |
NOW accounts | 82,417 | 84,569 |
Money market accounts | 73,802 | 85,017 |
Savings and club accounts | 129,893 | 108,183 |
Brokered deposits | 70,817 | 71,334 |
Certificates of deposit | 186,189 | 223,864 |
Total deposits amount | $711,909 | $673,715 |
DEPOSITS_Details_2
DEPOSITS (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Maturity of deposits | |
2014 | $137,765 |
2015 | 42,623 |
2016 | 44,424 |
2017 | 13,931 |
2018 | 12,575 |
Thereafter | 5,688 |
Total | 257,006 |
Certificates of deposit | |
Maturity of deposits | |
2014 | 105,403 |
2015 | 26,548 |
2016 | 33,205 |
2017 | 7,741 |
2018 | 7,604 |
Thereafter | 5,688 |
Total | 186,189 |
Brokered deposits | |
Maturity of deposits | |
2014 | 32,362 |
2015 | 16,075 |
2016 | 11,219 |
2017 | 6,190 |
2018 | 4,971 |
Thereafter | 0 |
Total | $70,817 |
DEPOSITS_Details_3
DEPOSITS (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Interest expense on deposits | |||
NOW accounts | $183,000 | $172,000 | $234,000 |
Money market accounts | 202,000 | 172,000 | 339,000 |
Savings and club accounts | 275,000 | 141,000 | 253,000 |
Brokered deposits | 450,000 | 391,000 | 194,000 |
Certificates of deposit | 2,106,000 | 3,468,000 | 5,327,000 |
Interest expense on deposits, total | 3,216,000 | 4,344,000 | 6,347,000 |
Certificates of deposit with a minimum denomination of $100,000 | |||
Amount of certificates of deposit with a minimum denomination of $100,000 | $42,400,000 | $51,100,000 |
BORROWINGS_Details
BORROWINGS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Borrowings | ||
Balance at End of Year | $120,000,000 | $150,000,000 |
Balance at End of Year | 50,000,000 | 80,500,000 |
Other borrowed funds | 30,000,000 | 30,000,000 |
Security Owned and Pledged as Collateral, Fair Value | 169,700,000 | 197,600,000 |
FHLB stock | 6,015,000 | 9,813,000 |
0.49% borrowing, due March 2015 | ||
Borrowings | ||
Balance at End of Year | 10,000,000 | |
0.45% borrowing, due April 2015 | ||
Borrowings | ||
Balance at End of Year | 10,000,000 | |
0.68% borrowing, due August 2015 | ||
Borrowings | ||
Balance at End of Year | 10,000,000 | |
0.60% borrowing, due March 2016 | ||
Borrowings | ||
Balance at End of Year | 10,000,000 | |
0.62% borrowing, due March 2016 | ||
Borrowings | ||
Balance at End of Year | 10,000,000 | |
0.75% borrowing, due September 2016 | ||
Borrowings | ||
Balance at End of Year | 5,000,000 | |
1.04% borrowing, due September 2016 | ||
Borrowings | ||
Balance at End of Year | 10,000,000 | |
0.94% borrowing, due June 2017 | ||
Borrowings | ||
Balance at End of Year | 5,000,000 | |
3.62% borrowing, due November 2017 | ||
Borrowings | ||
Balance at End of Year | 15,000,000 | |
Reference rate, description | LIBOR | |
Interest rate added to reference rate (as a percent) | 0.10% | |
3.87% borrowing, due November 2017 | ||
Borrowings | ||
Balance at End of Year | 15,000,000 | |
Reference rate, description | LIBOR | |
Interest rate added to reference rate (as a percent) | 0.10% | |
2.83% borrowing, due on December 2017 | ||
Borrowings | ||
Balance at End of Year | 20,000,000 | |
Reference rate, description | LIBOR | |
Interest rate added to reference rate (as a percent) | 0.11% | |
FHLB of Pittsburgh | ||
Borrowings | ||
Balance at End of Year | 120,000,000 | |
Maximum borrowing capacity | 411,000,000 | |
Capital stock to be held as percentage of advances | 4.00% | |
Capital stock to be held as percentage of eligible assets | 0.10% | |
FHLB of Pittsburgh | Minimum | ||
Borrowings | ||
Capital stock to be held as percentage of advances | 2.00% | |
Capital stock to be held as percentage of eligible assets | 0.05% | |
Stock obligation | 3,000,000 | |
FHLB of Pittsburgh | Maximum | ||
Borrowings | ||
Capital stock to be held as percentage of advances | 6.00% | |
Capital stock to be held as percentage of eligible assets | 1.00% | |
Stock obligation | 14,200,000 | |
Federal Reserve Bank of Philadelphia | ||
Borrowings | ||
Maximum borrowing capacity | 59,300,000 | |
Security Owned and Pledged as Collateral, Fair Value | 59,300,000 | |
Federal Home Loan Bank Advances Maturing in Less than One Year [Member] | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.54% | |
Federal Home Loan Bank Advances Maturing in One to Two Years [Member] | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.75% | |
Federal Home Loan Bank Advances Maturing in Two to Three Years [Member] | ||
Borrowings | ||
Weighted Average Coupon Rate | 3.16% | |
FHLB of Pittsburgh | ||
Borrowings | ||
Weighted Average Coupon Rate | 1.80% | 1.52% |
Maximum Amount Outstanding during the period | 150,000,000 | 150,000,000 |
Average Amount Outstanding during the period | 143,980,000 | 135,807,000 |
Interest rate (as a percent) | 1.59% | 1.61% |
Loans pledged as collateral | 470,100,000 | |
Maturity of FHLB advances | ||
2015 | 30,000,000 | |
2016 | 35,000,000 | |
2017 | 55,000,000 | |
Total | 120,000,000 | |
FHLB of Pittsburgh | Minimum | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.45% | |
FHLB of Pittsburgh | Maximum | ||
Borrowings | ||
Weighted Average Coupon Rate | 3.87% | |
FHLB of Pittsburgh | 0.49% borrowing, due March 2015 | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.49% | |
FHLB of Pittsburgh | 0.45% borrowing, due April 2015 | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.45% | |
FHLB of Pittsburgh | 0.68% borrowing, due August 2015 | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.68% | |
FHLB of Pittsburgh | 0.60% borrowing, due March 2016 | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.60% | |
FHLB of Pittsburgh | 0.62% borrowing, due March 2016 | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.62% | |
FHLB of Pittsburgh | 0.75% borrowing, due September 2016 | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.75% | |
FHLB of Pittsburgh | 1.04% borrowing, due September 2016 | ||
Borrowings | ||
Weighted Average Coupon Rate | 1.04% | |
FHLB of Pittsburgh | 0.94% borrowing, due June 2017 | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.94% | |
FHLB of Pittsburgh | 3.62% borrowing, due November 2017 | ||
Borrowings | ||
Weighted Average Coupon Rate | 3.62% | |
FHLB of Pittsburgh | 3.87% borrowing, due November 2017 | ||
Borrowings | ||
Weighted Average Coupon Rate | 3.87% | |
FHLB of Pittsburgh | 2.83% borrowing, due on December 2017 | ||
Borrowings | ||
Weighted Average Coupon Rate | 2.83% | |
FHLB of Pittsburgh | FHLB of Pittsburgh | ||
Borrowings | ||
Weighted Average Coupon Rate | 1.80% | |
Other borrowed funds | ||
Borrowings | ||
Weighted Average Coupon Rate | 3.30% | 3.30% |
Maximum Amount Outstanding during the period | 30,000,000 | 30,000,000 |
Average Amount Outstanding during the period | 30,000,000 | 30,000,000 |
Interest rate (as a percent) | 3.35% | 3.36% |
Short-term borrowings | ||
Borrowings | ||
Weighted Average Coupon Rate | 0.32% | 0.32% |
Maximum Amount Outstanding during the period | 84,900,000 | 80,500,000 |
Average Amount Outstanding during the period | 41,000,000 | 47,368,000 |
Interest rate (as a percent) | 0.31% | 0.28% |
FHLB of Pittsburgh | ||
Borrowings | ||
Security Owned and Pledged as Collateral, Fair Value | $75,700,000 |
BORROWINGS_Details_2
BORROWINGS (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 05, 2015 | |
Other Borrowed Funds | ||||
Fair Value of Investment Securities Pledged for Borrowings | $169,700,000 | $197,600,000 | ||
Amount of other borrowings | 30,000,000 | 30,000,000 | ||
Loss on extinguishment of debt | 0 | 0 | 3,018,000 | |
Short-term borrowings | 50,000,000 | 80,500,000 | ||
Blended weighted average interest rate (as a percent) | 0.32% | |||
Other Long Term Borrowings [Member] | ||||
Other Borrowed Funds | ||||
Fair Value of Investment Securities Pledged for Borrowings | 34,700,000 | |||
3.40% other borrowings, due September 2018 | ||||
Other Borrowed Funds | ||||
Amount of other borrowings | 10,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.40% | |||
3.20% other borrowings, due September 2018 | ||||
Other Borrowed Funds | ||||
Amount of other borrowings | 5,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | |||
3.15% other borrowings, due October 2018 | ||||
Other Borrowed Funds | ||||
Amount of other borrowings | 5,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | |||
3.27% other borrowings, due October 2018 | ||||
Other Borrowed Funds | ||||
Amount of other borrowings | 5,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.27% | |||
3.37% other borrowings, due November 2018 | ||||
Other Borrowed Funds | ||||
Amount of other borrowings | 5,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.37% | |||
Other Long Term Debt | ||||
Other Borrowed Funds | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.30% | 3.30% | ||
Termination of debt | 20,000,000 | |||
Loss on extinguishment of debt | 1,500,000 | |||
FHLB of Pittsburgh | ||||
Other Borrowed Funds | ||||
Capital stock to be held as percentage of advances | 4.00% | |||
Capital stock to be held as percentage of eligible assets | 0.10% | |||
Short-term Debt other than Overnight [Member] | ||||
Other Borrowed Funds | ||||
Short-term borrowings | 15,000,000 | |||
Blended weighted average interest rate (as a percent) | 0.33% | |||
Overnight Borrowings [Member] | ||||
Other Borrowed Funds | ||||
Short-term borrowings | 35,000,000 | |||
Blended weighted average interest rate (as a percent) | 0.31% | |||
Subsequent Event [Member] | ||||
Other Borrowed Funds | ||||
Amount of other borrowings | $25,000,000 | |||
Other Borrowings Terms before Modification | 3 years 10 months | |||
Spread to One-Month Libor Subsequent to Modification | 1.79% | |||
Other Borrowings Weighted Average Maturity Subsequent to Modification | 5 years 0 months | |||
Subsequent Event [Member] | Other Borrowings Stated Rate before Modification [Member] | ||||
Other Borrowed Funds | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.33% |
EMPLOYEE_BENEFITS_Details
EMPLOYEE BENEFITS (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2006 | Jun. 29, 2010 | |
401(k) Plan | |||||
Employer's matching contribution on the first 6% of employee contribution (as a percent) | 33.00% | ||||
Percentage of employee's discretionary contribution matched by 33% of employer contribution | 6.00% | ||||
Contribution by employer | $143,000 | $146,000 | $131,000 | ||
ESOP | |||||
Employee Stock Ownership Plan | |||||
Number of shares purchased | 963,767 | ||||
Loans outstanding | 5,500,000 | ||||
Number of stock purchase transactions | 2 | ||||
Committed-to-be-Released Shares | 0 | ||||
Shares allocated | 477,316 | ||||
Unallocated shares | 486,451 | ||||
Shares annually released based upon the ratio that the current principal and interest payment bears to the current and remaining scheduled future principal and interest payments | 65,053 | ||||
Compensation expense | 1,100,000 | 1,114,000 | 921,000 | ||
ESOP | Initial 2006 stock offering | |||||
Employee Stock Ownership Plan | |||||
Number of shares purchased | 615,267 | ||||
Loans outstanding | 3,000,000 | 3,300,000 | |||
Purchase price (in dollars per share) | $9.35 | ||||
Unallocated shares | 246,106 | ||||
Fair market value of unallocated shares | 4,100,000 | ||||
ESOP | Mutual-to-stock conversion | |||||
Employee Stock Ownership Plan | |||||
Number of shares purchased | 348,500 | ||||
Loans outstanding | 2,500,000 | 2,800,000 | |||
Purchase price (in dollars per share) | $10 | ||||
Unallocated shares | 240,345 | ||||
Fair market value of unallocated shares | $4,000,000 |
STOCK_BASED_COMPENSATION_Detai
STOCK BASED COMPENSATION (Details) (USD $) | 12 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2011 | Sep. 30, 2014 | Aug. 31, 2014 | Dec. 31, 2007 | |
STOCK BASED COMPENSATION | ||||||||
Stock based compensation expense | $1,200,000 | $1,100,000 | $1,000,000 | |||||
Number of Restricted Shares | ||||||||
Share Based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options Variable Payout Percentage | 140.00% | |||||||
Stock options | ||||||||
STOCK BASED COMPENSATION | ||||||||
Stock based compensation expense | 437,000 | 431,000 | 420,000 | |||||
Number of Stock Options | ||||||||
Outstanding at the beginning of the period (in shares) | 1,123,408 | 877,669 | 788,142 | 1,123,408 | ||||
Granted (in shares) | 39,600 | 255,650 | 146,550 | |||||
Exercised (in shares) | -39,388 | -9,811 | -43,954 | |||||
Forfeited / Cancelled (in shares) | -23,100 | -100 | -13,069 | |||||
Outstanding at the end of the period (in shares) | 1,100,520 | 1,123,408 | 877,669 | 788,142 | ||||
Exercisable at the end of the period (in shares) | 731,017 | |||||||
Weighted Average Exercise Price | ||||||||
Outstanding at the beginning of the period (in dollars per share) | $12.81 | $11.57 | $11.23 | $12.81 | ||||
Granted (in dollars per share) | $16.92 | $17 | $13.15 | |||||
Exercised (in dollars per share) | $11.12 | $10.82 | $10.94 | |||||
Forfeited / Cancelled (in dollars per share) | $15.52 | $12.94 | $11.10 | |||||
Outstanding at the end of the period (in dollars per share) | $12.96 | $12.81 | $11.57 | $11.23 | ||||
Exercisable at the end of the period (in dollars per share) | $11.73 | |||||||
Weighted Average Remaining Contractual Life | ||||||||
Outstanding at the beginning of the period | 5 years 3 months 0 days | 6 years 2 months 12 days | 6 years 3 months 18 days | 6 years 7 months 6 days | ||||
Outstanding at the end of the period | 5 years 3 months 0 days | 6 years 2 months 12 days | 6 years 3 months 18 days | 6 years 7 months 6 days | ||||
Exercisable at the end of the period | 4 years 0 months | |||||||
Aggregate Intrinsic Value | ||||||||
Outstanding at the beginning of the period | 5,013,000 | 4,461,000 | 1,111,000 | 5,013,000 | ||||
Outstanding at the end of the period | 4,172,000 | 5,013,000 | 4,461,000 | 1,111,000 | ||||
Exercisable at the end of the period | 3,631,000 | |||||||
Assumptions used to determine fair value of options granted | ||||||||
Expected dividend yield (as a percent) | 3.53% | 2.22% | ||||||
Expected option life | 6 years 6 months | 6 years 6 months | 6 years 6 months | |||||
Number of Stock Options, Unvested | ||||||||
Unvested at the beginning of the period (in shares) | 475,524 | 310,661 | 322,530 | 475,524 | ||||
Granted (in shares) | 39,600 | 255,650 | 146,550 | |||||
Vested (in shares) | -125,521 | -90,787 | -145,350 | |||||
Forfeited / Cancelled (in shares) | -20,100 | 0 | -13,069 | |||||
Unvested at the end of the period (in shares) | 369,503 | 475,524 | 310,661 | 322,530 | ||||
Weighted Average Grant Date Fair Value, Unvested | ||||||||
Unvested at the beginning of the period (in dollars per share) | $3.85 | $3.36 | $3.15 | $3.85 | ||||
Granted (in dollars per share) | $3.65 | $4.20 | $3.57 | |||||
Vested (in dollars per share) | $3.65 | $3.16 | $3.10 | |||||
Forfeited / Cancelled (in dollars per share) | $3.91 | $0 | $3.17 | |||||
Unvested at the end of the period (in dollars per share) | $3.90 | $3.85 | $3.36 | $3.15 | ||||
Compensation cost not yet recognized, nonvested awards | ||||||||
Expected future compensation expense, non-vested options | 1,100,000 | |||||||
Weighted average period | 2 years 11 months | |||||||
Stock options | Minimum | ||||||||
Assumptions used to determine fair value of options granted | ||||||||
Expected volatility (as a percent) | 30.71% | 31.10% | 32.00% | |||||
Risk-free interest rate (as a percent) | 1.85% | 1.19% | 0.86% | |||||
Weighted Average Grant Date Fair Value, Unvested | ||||||||
Granted (in dollars per share) | $3.49 | $4.20 | $3.56 | |||||
Stock options | Maximum | ||||||||
Assumptions used to determine fair value of options granted | ||||||||
Expected dividend yield (as a percent) | 1.82% | |||||||
Expected volatility (as a percent) | 31.04% | 31.10% | 32.50% | |||||
Risk-free interest rate (as a percent) | 1.90% | 1.74% | 1.10% | |||||
Weighted Average Grant Date Fair Value, Unvested | ||||||||
Granted (in dollars per share) | $3.66 | $4.45 | $3.92 | |||||
Restricted stock | ||||||||
STOCK BASED COMPENSATION | ||||||||
Stock based compensation expense | 812,000 | 693,000 | 621,000 | |||||
Compensation cost not yet recognized, nonvested awards | ||||||||
Weighted average period | 3 years 0 months | |||||||
Number of Restricted Shares | ||||||||
Unvested at the beginning of the period (in shares) | 225,932 | 130,557 | 119,990 | 225,932 | ||||
Granted (in shares) | 18,865 | 122,450 | 69,950 | |||||
Vested (in shares) | -47,525 | -27,075 | -56,358 | |||||
Forfeited / Cancelled (in shares) | -8,650 | 0 | -3,025 | |||||
Unvested at the end of the period (in shares) | 188,622 | 225,932 | 130,557 | |||||
Weighted Average Grant Date Fair Value | ||||||||
Unvested at the beginning of the period (in dollars per share) | $14.98 | $12.41 | $11.54 | $14.98 | ||||
Granted (in dollars per share) | $15.89 | $17 | $13.14 | |||||
Vested (in dollars per share) | $13.76 | $11.77 | $11.46 | |||||
Forfeited / Cancelled (in dollars per share) | $15.32 | $0 | $12.08 | |||||
Unvested at the end of the period (in dollars per share) | $15.36 | $14.98 | $12.41 | |||||
Expected future compensation expense, restricted shares | $2,200,000 | |||||||
Performance based restricted stock | Executive Officer | ||||||||
Number of Restricted Shares | ||||||||
Granted (in shares) | 39,250 | 22,500 | 10,668 | |||||
Weighted Average Grant Date Fair Value | ||||||||
Granted (in dollars per share) | $12.39 | |||||||
Performance Shares Variable Payout Adjustment [Member] | Executive Officer | ||||||||
Number of Restricted Shares | ||||||||
Granted (in shares) | 4,265 | |||||||
Performance Shares including Variable Payout Adjustment [Member] | Executive Officer | ||||||||
Number of Restricted Shares | ||||||||
Granted (in shares) | 14,933 | |||||||
2007 Plan | Stock options | ||||||||
STOCK BASED COMPENSATION | ||||||||
Shares reserved for issuance | 769,083 | |||||||
2007 Plan | Restricted stock | ||||||||
STOCK BASED COMPENSATION | ||||||||
Shares reserved for issuance | 307,633 | |||||||
Shares Purchased | 307,395 | |||||||
Weighted average cost per share of shares purchased (in dollars per share) | $12.18 | |||||||
2011 Plan | Stock options | ||||||||
STOCK BASED COMPENSATION | ||||||||
Shares reserved for issuance | 685,978 | |||||||
2011 Plan | Restricted stock | ||||||||
STOCK BASED COMPENSATION | ||||||||
Shares reserved for issuance | 274,391 | |||||||
Shares Purchased | 274,391 | 274,391 | ||||||
Weighted average cost per share of shares purchased (in dollars per share) | $12.66 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of income tax expense (benefits) | |||||||||||
Current | $1,534,000 | $3,330,000 | $2,408,000 | ||||||||
Deferred | 1,876,000 | -1,083,000 | -140,000 | ||||||||
Federal income tax expense (benefit) | 3,410,000 | 2,247,000 | 2,268,000 | ||||||||
Current | 20,000 | 0 | 0 | ||||||||
Deferred | -12,000 | 16,000 | 50,000 | ||||||||
State income tax expense (benefit) | 8,000 | 16,000 | 50,000 | ||||||||
Income tax expense (benefit) | 833,000 | 653,000 | 1,105,000 | 827,000 | 589,000 | 411,000 | 438,000 | 825,000 | 3,418,000 | 2,263,000 | 2,318,000 |
Statutory rate (as a percent) | 34.00% | 34.00% | 34.00% | ||||||||
Income tax rate reconciliation | |||||||||||
Federal income tax at statutory rate | 3,948,000 | 2,651,000 | 2,509,000 | ||||||||
Tax exempt interest, net | -295,000 | -233,000 | -62,000 | ||||||||
Bank-owned life insurance | -163,000 | -160,000 | -160,000 | ||||||||
ESOP compensation expense | 158,000 | 167,000 | 101,000 | ||||||||
Other, net | 19,000 | 14,000 | 13,000 | ||||||||
Dividends received from equity method investments | -61,000 | -98,000 | -49,000 | ||||||||
Dividends paid on benefit plans | -192,000 | -89,000 | -67,000 | ||||||||
State taxes, net | -140,000 | -20,000 | 304,000 | ||||||||
Decrease in valuation allowance | 144,000 | 31,000 | -271,000 | ||||||||
Income tax expense (benefit) | 833,000 | 653,000 | 1,105,000 | 827,000 | 589,000 | 411,000 | 438,000 | 825,000 | 3,418,000 | 2,263,000 | 2,318,000 |
Effective tax rate (as a percent) | 29.44% | 29.03% | 31.41% | ||||||||
Deferred tax assets: | |||||||||||
Allowance for loan losses, net | 3,779,000 | 3,920,000 | 3,779,000 | 3,920,000 | |||||||
Provision for loss on assets acquired through foreclosure | 100,000 | 1,826,000 | 100,000 | 1,826,000 | |||||||
Nonaccrual interest | 89,000 | 274,000 | 89,000 | 274,000 | |||||||
Equity incentive plans | 1,398,000 | 1,187,000 | 1,398,000 | 1,187,000 | |||||||
Accrued expenses | 508,000 | 455,000 | 508,000 | 455,000 | |||||||
Deferred lease liability | 27,000 | 46,000 | 27,000 | 46,000 | |||||||
State net operating loss carryforward | 65,000 | 96,000 | 65,000 | 96,000 | |||||||
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross | 0 | 2,408,000 | 0 | 2,408,000 | |||||||
Total | 5,966,000 | 10,212,000 | 5,966,000 | 10,212,000 | |||||||
Valuation allowance | -211,000 | -67,000 | -211,000 | -67,000 | |||||||
Net | 5,755,000 | 10,145,000 | 5,755,000 | 10,145,000 | |||||||
Deferred tax liability | |||||||||||
Prepaid expense deduction | 260,000 | 255,000 | 260,000 | 255,000 | |||||||
Mortgage servicing rights | 39,000 | 52,000 | 39,000 | 52,000 | |||||||
Loan origination costs | 25,000 | 28,000 | 25,000 | 28,000 | |||||||
Deferrable earnings on investments | 478,000 | 504,000 | 478,000 | 504,000 | |||||||
Depreciation of premises and equipment | 319,000 | 400,000 | 319,000 | 400,000 | |||||||
Unrealized gains on securities available-for-sale | 73,000 | 0 | 73,000 | 0 | |||||||
Deferred tax liability | 1,194,000 | 1,239,000 | 1,194,000 | 1,239,000 | |||||||
Net Deferred Tax Asset | 4,561,000 | 8,906,000 | 4,561,000 | 8,906,000 | |||||||
Other income tax disclosures | |||||||||||
State net operating loss carryforward not likely to be realized | 29,000 | 29,000 | |||||||||
Amount for which no federal income tax provision has been made | 6,000,000 | 6,000,000 | 6,000,000 | 6,000,000 | 6,000,000 | ||||||
State operating loss not likely to be recognized | 29,000 | 29,000 | |||||||||
State net operating loss | 414,000 | 414,000 | |||||||||
Fox Chase Service Corporation | State | |||||||||||
Deferred tax assets: | |||||||||||
State net operating loss carryforward | 36,000 | 36,000 | |||||||||
Other income tax disclosures | |||||||||||
State net operating loss | $363,000 | $363,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Financial instrument commitments | ||
Financial instrument commitment | $185,049,000 | $158,549,000 |
Commitments to grant loans | ||
Financial instrument commitments | ||
Financial instrument commitment | 43,853,000 | 31,401,000 |
Fixed rate commitments to grant loans | 6,600,000 | 4,000,000 |
Interest rate on fixed rate loans, minimum (as a percent) | 4.25% | 4.50% |
Interest rate on fixed rate loans, maximum (as a percent) | 6.00% | 6.00% |
Unfunded commitments under lines of credit | ||
Financial instrument commitments | ||
Financial instrument commitment | 123,459,000 | 115,229,000 |
Standby letters of credit | ||
Financial instrument commitments | ||
Financial instrument commitment | 17,324,000 | 11,508,000 |
Commercial letters of credit | ||
Financial instrument commitments | ||
Financial instrument commitment | $413,000 | $411,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (Third-party providers, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Third-party providers | |
Future minimum payments contractually due | |
2014 | $1,690 |
2015 | 60 |
2016 | 14 |
2017 | 0 |
2018 | $0 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fox Chase Bancorp, Inc. | ||
Total risk-based capital (to risk-weighted assets) | ||
Actual, Amount | $183,993 | $186,147 |
Actual, Ratio (as a percent) | 23.45% | 23.67% |
For Capital Adequacy Purposes, Amount | 62,758 | 62,905 |
For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 78,448 | 78,631 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) | ||
Actual, Amount | 175,795 | 177,916 |
Actual, Ratio (as a percent) | 22.41% | 22.63% |
For Capital Adequacy Purposes, Amount | 31,379 | 31,452 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 47,069 | 47,178 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.00% | 6.00% |
Tier 1 capital (to adjusted assets) | ||
Actual, Amount | 175,795 | 177,916 |
Actual, Ratio (as a percent) | 16.58% | 16.18% |
For Capital Adequacy Purposes, Amount | 42,420 | 43,971 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 53,026 | 54,964 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |
Fox Chase Bank | ||
Total risk-based capital (to risk-weighted assets) | ||
Actual, Amount | 156,976 | 153,206 |
Actual, Ratio (as a percent) | 20.02% | 19.48% |
For Capital Adequacy Purposes, Amount | 62,743 | 62,903 |
For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 78,428 | 78,629 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) | ||
Actual, Amount | 148,781 | 144,977 |
Actual, Ratio (as a percent) | 18.97% | 18.44% |
For Capital Adequacy Purposes, Amount | 31,371 | 31,452 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 47,057 | 47,177 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.00% | 6.00% |
Tier 1 capital (to adjusted assets) | ||
Actual, Amount | 148,781 | 144,977 |
Actual, Ratio (as a percent) | 13.99% | 13.12% |
For Capital Adequacy Purposes, Amount | 42,551 | 44,194 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $53,188 | $55,242 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |
STOCKHOLDERS_EQUITY_Details_2
STOCKHOLDERS' EQUITY (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
STOCKHOLDERS' EQUITY | ||||
Cash dividend on common share (in dollars per share) | $0.60 | $0.28 | $0.20 | |
Dividend received from subsidiary | $5,800,000 | |||
Common stock repurchased | 6,262,000 | 3,703,000 | 9,911,000 | |
Common Stock | ||||
STOCKHOLDERS' EQUITY | ||||
Cash dividend on common share (in dollars per share) | $0.60 | $0.28 | ||
Common stock repurchased (in shares) | 384,400 | 218,752 | ||
Common stock repurchased | $39,700,000 |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
adjustment | ||
quote | ||
external_pricing_service | ||
Fair Value Disclosures [Abstract] | ||
Number of external pricing service providers | 1 | |
Number of quotes per investment security obtained | 1 | |
Adjustments to the values obtained from the primary pricing service | 0 | |
Financial assets: | ||
Investment securities available-for-sale | $134,037 | $256,557 |
Mortgage related securities | 125,649 | 246,068 |
Held to maturity securities | 170,854 | 67,491 |
Federal Home Loan Bank stock | 6,015 | 9,813 |
Accrued interest receivable | 3,147 | 3,308 |
Mortgage servicing rights | 111 | 152 |
Financial liabilities: | ||
Savings and club accounts | 129,893 | 108,183 |
Private label commercial mortgage related securities | ||
Financial assets: | ||
Investment securities available-for-sale | 0 | 2,120 |
Held to maturity securities | 2,985 | |
Agency residential mortgage related securities | ||
Financial assets: | ||
Investment securities available-for-sale | 125,649 | 243,948 |
Held to maturity securities | 167,869 | 67,491 |
Carrying Amount | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 17,213 | 11,947 |
Carrying Amount | Level 2 | ||
Financial assets: | ||
Investment securities available-for-sale | 8,388 | 10,489 |
Financial liabilities: | ||
Savings and club accounts | 129,893 | 108,183 |
Demand, NOW and money market deposits | 325,010 | 270,334 |
Brokered deposits | 70,817 | 71,334 |
Certificates of deposit | 186,189 | 223,864 |
Short-term borrowings | 50,000 | 80,500 |
Federal Home Loan Bank advances | 120,000 | 150,000 |
Other borrowed funds | 30,000 | 30,000 |
Accrued interest payable | 311 | 314 |
Carrying Amount | Level 3 | ||
Financial assets: | ||
Loans receivable, net | 724,326 | 720,490 |
Federal Home Loan Bank stock | 6,015 | 9,813 |
Mortgage servicing rights | 111 | 152 |
Financial assets acquired from debtors - CV | 0 | 1,938 |
Carrying Amount | Level 2, 3 | ||
Financial assets: | ||
Accrued interest receivable | 3,147 | 3,308 |
Financial liabilities: | ||
Derivative contracts | 174 | 124 |
Carrying Amount | Private label commercial mortgage related securities | Level 3 | ||
Financial assets: | ||
Mortgage related securities | 0 | 2,120 |
Carrying Amount | Agency residential mortgage related securities | Level 2 | ||
Financial assets: | ||
Mortgage related securities | 125,649 | 243,948 |
Held to maturity securities | 167,193 | 68,397 |
Carrying Amount | Residential Mortgage Backed Securities [Member] | Level 2 | ||
Financial assets: | ||
Held to maturity securities | 2,979 | 0 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 17,213 | 11,947 |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Investment securities available-for-sale | 8,388 | 10,489 |
Financial liabilities: | ||
Savings and club accounts | 129,893 | 108,183 |
Demand, NOW and money market deposits | 325,010 | 270,334 |
Brokered deposits | 70,600 | 71,020 |
Certificates of deposit | 186,154 | 225,357 |
Short-term borrowings | 50,000 | 80,500 |
Federal Home Loan Bank advances | 123,189 | 154,069 |
Other borrowed funds | 32,017 | 32,178 |
Accrued interest payable | 311 | 314 |
Estimated Fair Value | Level 3 | ||
Financial assets: | ||
Loans receivable, net | 732,142 | 721,417 |
Federal Home Loan Bank stock | 6,015 | 9,813 |
Mortgage servicing rights | 111 | 152 |
Financial assets acquired from debtors - CV | 0 | 1,938 |
Estimated Fair Value | Level 2, 3 | ||
Financial assets: | ||
Accrued interest receivable | 3,147 | 3,308 |
Financial liabilities: | ||
Derivative contracts | 174 | 124 |
Estimated Fair Value | Private label commercial mortgage related securities | Level 3 | ||
Financial assets: | ||
Mortgage related securities | 0 | 2,120 |
Estimated Fair Value | Agency residential mortgage related securities | Level 2 | ||
Financial assets: | ||
Mortgage related securities | 125,649 | 243,948 |
Held to maturity securities | 167,869 | 67,491 |
Estimated Fair Value | Residential Mortgage Backed Securities [Member] | Level 2 | ||
Financial assets: | ||
Held to maturity securities | $2,985 | $0 |
FAIR_VALUE_Details_2
FAIR VALUE (Details 2) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Fair value measurement | ||||
Investment securities available-for-sale | $134,037,000 | $256,557,000 | ||
Mortgage servicing rights | 111,000 | 152,000 | ||
Loans | ||||
Fair value measurement | ||||
Number of loans | 2 | |||
Significant Other Unobservable Inputs (Level 3) | ||||
Fair value measurement | ||||
Losses resulting from changes in fair value | -30,000 | 5,023,000 | ||
Significant Other Unobservable Inputs (Level 3) | Private label commercial mortgage related securities | ||||
Fair value measurement | ||||
Net unrealized gain | 2,000 | |||
Losses resulting from changes in fair value | 2,000 | 76,000 | ||
Significant Other Unobservable Inputs (Level 3) | Loans | ||||
Fair value measurement | ||||
Unrealized gain on loans | 152,000 | 125,000 | ||
Losses resulting from changes in fair value | -28,000 | 167,000 | ||
Significant Other Unobservable Inputs (Level 3) | Losses on financial assets acquired from debtors | ||||
Fair value measurement | ||||
Losses resulting from changes in fair value | 4,800,000 | |||
Significant Other Unobservable Inputs (Level 3) | Derivatives contracts | ||||
Fair value measurement | ||||
Losses resulting from changes in fair value | -4,000 | -13,000 | ||
Recurring basis | Balance | ||||
Fair value measurement | ||||
Financial assets acquired from debtors - CV | 1,938,000 | |||
Recurring basis | Balance | Obligations of U.S. government agencies | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 302,000 | 308,000 | ||
Recurring basis | Balance | Corporate securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 8,086,000 | 10,181,000 | ||
Recurring basis | Balance | Private label commercial mortgage related securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 2,120,000 | |||
Recurring basis | Balance | Agency residential mortgage related securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 125,649,000 | 243,948,000 | ||
Recurring basis | Balance | Loans | ||||
Fair value measurement | ||||
Assets | 2,451,000 | [1] | 2,535,000 | [1] |
Recurring basis | Balance | Derivatives contracts | ||||
Fair value measurement | ||||
Liabilities | -174,000 | [1] | -124,000 | [1] |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair value measurement | ||||
Financial assets acquired from debtors - CV | 0 | |||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U.S. government agencies | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 0 | 0 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 0 | 0 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Private label commercial mortgage related securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 0 | |||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency residential mortgage related securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 0 | 0 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans | ||||
Fair value measurement | ||||
Assets | 0 | [1] | 0 | [1] |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives contracts | ||||
Fair value measurement | ||||
Liabilities | 0 | [1] | 0 | [1] |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||||
Fair value measurement | ||||
Financial assets acquired from debtors - CV | 0 | |||
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. government agencies | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 302,000 | 308,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 8,086,000 | 10,181,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | Private label commercial mortgage related securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 0 | |||
Recurring basis | Significant Other Observable Inputs (Level 2) | Agency residential mortgage related securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 125,649,000 | 243,948,000 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | Loans | ||||
Fair value measurement | ||||
Assets | 0 | [1] | 0 | [1] |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivatives contracts | ||||
Fair value measurement | ||||
Liabilities | -162,000 | [1] | -120,000 | [1] |
Recurring basis | Significant Other Unobservable Inputs (Level 3) | ||||
Fair value measurement | ||||
Financial assets acquired from debtors - CV | 1,938,000 | |||
Recurring basis | Significant Other Unobservable Inputs (Level 3) | Obligations of U.S. government agencies | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 0 | 0 | ||
Recurring basis | Significant Other Unobservable Inputs (Level 3) | Corporate securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 0 | 0 | ||
Recurring basis | Significant Other Unobservable Inputs (Level 3) | Private label commercial mortgage related securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 2,120,000 | |||
Recurring basis | Significant Other Unobservable Inputs (Level 3) | Agency residential mortgage related securities | ||||
Fair value measurement | ||||
Investment securities available-for-sale | 0 | 0 | ||
Recurring basis | Significant Other Unobservable Inputs (Level 3) | Loans | ||||
Fair value measurement | ||||
Assets | 2,451,000 | [1] | 2,535,000 | [1] |
Recurring basis | Significant Other Unobservable Inputs (Level 3) | Derivatives contracts | ||||
Fair value measurement | ||||
Liabilities | -12,000 | [1] | -4,000 | [1] |
Non-recurring basis | Balance | ||||
Fair value measurement | ||||
Assets | 4,579,000 | 5,378,000 | ||
Mortgage servicing rights | 111,000 | 152,000 | ||
Non-recurring basis | Balance | Loans | ||||
Fair value measurement | ||||
Assets | 1,654,000 | 912,000 | ||
Non-recurring basis | Balance | Other real estate owned | ||||
Fair value measurement | ||||
Assets | 2,814,000 | 4,314,000 | ||
Non-recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair value measurement | ||||
Assets | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Non-recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans | ||||
Fair value measurement | ||||
Assets | 0 | 0 | ||
Non-recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | ||||
Fair value measurement | ||||
Assets | 0 | 0 | ||
Non-recurring basis | Significant Other Observable Inputs (Level 2) | ||||
Fair value measurement | ||||
Assets | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Non-recurring basis | Significant Other Observable Inputs (Level 2) | Loans | ||||
Fair value measurement | ||||
Assets | 0 | 0 | ||
Non-recurring basis | Significant Other Observable Inputs (Level 2) | Other real estate owned | ||||
Fair value measurement | ||||
Assets | 0 | 0 | ||
Non-recurring basis | Significant Other Unobservable Inputs (Level 3) | ||||
Fair value measurement | ||||
Assets | 4,579,000 | 5,378,000 | ||
Mortgage servicing rights | 111,000 | 152,000 | ||
Non-recurring basis | Significant Other Unobservable Inputs (Level 3) | Loans | ||||
Fair value measurement | ||||
Assets | 1,654,000 | 912,000 | ||
Fully charged off loans balance sheet value | 0 | |||
Non-recurring basis | Significant Other Unobservable Inputs (Level 3) | Other real estate owned | ||||
Fair value measurement | ||||
Assets | $2,814,000 | $4,314,000 | ||
[1] | Such financial instruments are recorded at fair value as further described in Note 4. |
FAIR_VALUE_Details_3
FAIR VALUE (Details 3) (Significant Other Unobservable Inputs (Level 3), USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Roll forward of financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3) | ||
Beginning balance | $6,589 | $12,705 |
Purchases/ additions | -12 | 1,989 |
Sales | -1,938 | -120 |
Payments (received) made | -2,230 | -2,959 |
Premium amortization, net | 0 | -3 |
(Decrease) increase in value | 30 | -5,023 |
Ending balance | 2,439 | 6,589 |
Private label commercial mortgage related securities | ||
Roll forward of financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3) | ||
Beginning balance | 2,120 | 6,197 |
Purchases/ additions | 0 | 0 |
Sales | 0 | 0 |
Payments (received) made | -2,118 | -3,998 |
Premium amortization, net | 0 | -3 |
(Decrease) increase in value | -2 | -76 |
Ending balance | 0 | 2,120 |
Derivatives contracts | ||
Roll forward of financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3) | ||
Beginning balance | -4 | -12 |
Purchases/ additions | -12 | -5 |
Sales | 0 | 0 |
Payments (received) made | 0 | 0 |
Premium amortization, net | 0 | 0 |
(Decrease) increase in value | 4 | 13 |
Ending balance | -12 | -4 |
Financial Assets Acquired from Debtors | ||
Roll forward of financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3) | ||
Beginning balance | 1,938 | 3,714 |
Purchases/ additions | 0 | 1,994 |
Sales | -1,938 | -120 |
Payments (received) made | 0 | 1,143 |
Premium amortization, net | 0 | 0 |
(Decrease) increase in value | 0 | -4,793 |
Ending balance | 0 | 1,938 |
Loans | ||
Roll forward of financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3) | ||
Beginning balance | 2,535 | 2,806 |
Purchases/ additions | 0 | 0 |
Sales | 0 | 0 |
Payments (received) made | -112 | -104 |
Premium amortization, net | 0 | 0 |
(Decrease) increase in value | 28 | -167 |
Ending balance | $2,451 | $2,535 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
RELATED PARTY TRANSACTIONS | |||
Ownership percentage | 45.00% | 45.00% | |
Officers and Directors | |||
RELATED PARTY TRANSACTIONS | |||
Receivables from directors and officers | $0 | $0 | |
PMA | |||
RELATED PARTY TRANSACTIONS | |||
Ownership percentage | 45.00% | ||
Loans acquired | 668,000 | 900,000 | 14,400,000 |
Value of investments | 2,100,000 | 2,100,000 | |
Value of assets | 20,500,000 | 12,900,000 | |
Value of liabilities | 16,400,000 | 8,700,000 | |
Net revenues | 5,300,000 | 7,000,000 | 7,800,000 |
Expenses (including income taxes) | 4,900,000 | 6,000,000 | 6,300,000 |
Net income | 379,000 | 900,000 | 1,500,000 |
PMA | Warehouse line of credit facility | |||
RELATED PARTY TRANSACTIONS | |||
Interest income | 269,000 | 307,000 | 460,000 |
Loan satisfaction fees | 35,000 | 47,000 | 66,000 |
Balance outstanding | $11,700,000 | $4,400,000 |
PARENT_COMPANY_ONLY_FINANCIAL_2
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
ASSETS | ||||
Cash and due from banks | $2,763,000 | $149,000 | ||
Interest-earning deposits with banks | 14,450,000 | 11,798,000 | ||
Total cash and cash equivalents | 17,213,000 | 11,947,000 | 25,090,000 | 7,586,000 |
Other assets | 6,155,000 | 4,819,000 | ||
Total Assets | 1,094,616,000 | 1,116,622,000 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Total Liabilities | 918,705,000 | 943,155,000 | ||
Stockholders' Equity | 175,911,000 | 173,467,000 | 181,465,000 | 188,192,000 |
Total Liabilities and Stockholders’ Equity | 1,094,616,000 | 1,116,622,000 | ||
Parent company | ||||
ASSETS | ||||
Cash and due from banks | 290,000 | 99,000 | ||
Interest-earning deposits with banks | 19,994,000 | 25,934,000 | ||
Total cash and cash equivalents | 20,284,000 | 26,033,000 | 29,607,000 | 19,227,000 |
Investment in subsidiary | 148,897,000 | 140,527,000 | ||
Due from Related Parties | 1,020,000 | 888,000 | ||
ESOP loans | 5,525,000 | 6,109,000 | ||
Other assets | 261,000 | 20,000 | ||
Total Assets | 175,987,000 | 173,577,000 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Other liabilities | 76,000 | 110,000 | ||
Total Liabilities | 76,000 | 110,000 | ||
Stockholders' Equity | 175,911,000 | 173,467,000 | ||
Total Liabilities and Stockholders’ Equity | $175,987,000 | $173,577,000 |
PARENT_COMPANY_ONLY_FINANCIAL_3
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME | |||||||||||
Total Interest Income | $9,840 | $10,153 | $10,078 | $10,058 | $10,291 | $10,141 | $9,825 | $9,872 | $40,129 | $40,129 | $41,834 |
EXPENSES | |||||||||||
Income Before Income Taxes | 2,941 | 2,469 | 3,420 | 2,783 | 2,079 | 1,584 | 1,482 | 2,652 | 11,613 | 7,797 | 7,380 |
Income tax benefit | 833 | 653 | 1,105 | 827 | 589 | 411 | 438 | 825 | 3,418 | 2,263 | 2,318 |
Net income | 2,108 | 1,816 | 2,315 | 1,956 | 1,490 | 1,173 | 1,044 | 1,827 | 8,195 | 5,534 | 5,062 |
Parent company | |||||||||||
INCOME | |||||||||||
Interest on deposits with banks | 37 | 37 | 66 | ||||||||
Interest on ESOP loans | 365 | 400 | 432 | ||||||||
Total Interest Income | 402 | 437 | 498 | ||||||||
EXPENSES | |||||||||||
Other expenses | 906 | 996 | 1,000 | ||||||||
Total Expenses | 906 | 996 | 1,000 | ||||||||
Income Before Income Taxes | -504 | -559 | -502 | ||||||||
Income tax benefit | -171 | -280 | -171 | ||||||||
Loss before equity in undistributed net earnings of subsidiary | -333 | -279 | -331 | ||||||||
Equity in undistributed net earnings of subsidiary | 8,528 | 5,813 | 5,393 | ||||||||
Net income | $8,195 | $5,534 | $5,062 |
PARENT_COMPANY_ONLY_FINANCIAL_4
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows From Operating Activities | |||||||||||
Net income | $2,108 | $1,816 | $2,315 | $1,956 | $1,490 | $1,173 | $1,044 | $1,827 | $8,195 | $5,534 | $5,062 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | -86 | -59 | -88 | ||||||||
Net Cash Provided by Operating Activities | 13,423 | 17,479 | 17,595 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Net Cash Provided by (Used in) Investing Activities | 26,881 | -59,973 | -62,866 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Purchase of treasury stock | -6,262 | -3,703 | -9,911 | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | 86 | 59 | 88 | ||||||||
Common stock issued for exercise of stock options | 439 | 106 | 480 | ||||||||
Cash dividends paid | -6,917 | -3,243 | -2,382 | ||||||||
Net Cash (Used in) Provided by Financing Activities | -35,038 | 29,351 | 62,775 | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 5,266 | -13,143 | 17,504 | ||||||||
Cash and Cash Equivalents – Beginning | 11,947 | 25,090 | 11,947 | 25,090 | 7,586 | ||||||
Cash and Cash Equivalents – Ending | 17,213 | 11,947 | 17,213 | 11,947 | 25,090 | ||||||
Parent company | |||||||||||
Cash Flows From Operating Activities | |||||||||||
Net income | 8,195 | 5,534 | 5,062 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed income of subsidiary | -8,528 | -5,813 | -5,393 | ||||||||
(Increase) decrease in due from subsidiary, net | -132 | -907 | 259 | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | -86 | -59 | -88 | ||||||||
(Increase) decrease in other assets | -155 | 588 | -308 | ||||||||
(Decrease) increase in other liabilities | -34 | -2 | 130 | ||||||||
Net Cash Provided by Operating Activities | -740 | -659 | -338 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Loan payment received on ESOP loans | 584 | 550 | 516 | ||||||||
Cash dividends received from subsidiary | 5,813 | 0 | 21,281 | ||||||||
Net Cash Provided by (Used in) Investing Activities | 6,397 | 550 | 21,797 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Purchase of treasury stock | -6,262 | -3,703 | -9,911 | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | 86 | 59 | 88 | ||||||||
Receipts from subsidiary related to equity compensation activity | 1,248 | 3,316 | 646 | ||||||||
Common stock issued for exercise of stock options | 439 | 106 | 480 | ||||||||
Cash dividends paid | -6,917 | -3,243 | -2,382 | ||||||||
Net Cash (Used in) Provided by Financing Activities | -11,406 | -3,465 | -11,079 | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | -5,749 | -3,574 | 10,380 | ||||||||
Cash and Cash Equivalents – Beginning | 26,033 | 29,607 | 26,033 | 29,607 | 19,227 | ||||||
Cash and Cash Equivalents – Ending | $20,284 | $26,033 | $20,284 | $26,033 | $29,607 |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Valuation adjustment for assets acquired through foreclosure | $23 | $713 | $305 | $5,017 | $1,911 | ||||||
Interest income | 9,840 | 10,153 | 10,078 | 10,058 | 10,291 | 10,141 | 9,825 | 9,872 | 40,129 | 40,129 | 41,834 |
Interest expense | 1,606 | 1,635 | 1,653 | 1,741 | 1,843 | 1,909 | 1,958 | 1,959 | 6,635 | 7,669 | 10,117 |
Net Interest Income | 8,234 | 8,518 | 8,425 | 8,317 | 8,448 | 8,232 | 7,867 | 7,913 | 33,494 | 32,460 | 31,717 |
Provision for loan losses | 350 | 1,493 | 100 | 0 | 450 | 675 | -783 | 640 | 1,943 | 982 | 3,478 |
Net Interest Income after Provision for Loan Losses | 7,884 | 7,025 | 8,325 | 8,317 | 7,998 | 7,557 | 8,650 | 7,273 | 31,551 | 31,478 | 28,239 |
Noninterest income | 678 | 642 | 514 | 459 | 568 | 1,029 | 1,139 | 1,054 | 2,293 | 3,790 | 6,315 |
Noninterest expense | 5,621 | 5,198 | 5,419 | 5,993 | 6,487 | 7,002 | 8,307 | 5,675 | 22,231 | 27,471 | 27,174 |
Income Before Income Taxes | 2,941 | 2,469 | 3,420 | 2,783 | 2,079 | 1,584 | 1,482 | 2,652 | 11,613 | 7,797 | 7,380 |
Income tax expense (benefit) | 833 | 653 | 1,105 | 827 | 589 | 411 | 438 | 825 | 3,418 | 2,263 | 2,318 |
Net Income | $2,108 | $1,816 | $2,315 | $1,956 | $1,490 | $1,173 | $1,044 | $1,827 | $8,195 | $5,534 | $5,062 |
Per Common Share Data | |||||||||||
Weighted average common shares—basic | 11,127,377 | 11,287,884 | 11,291,452 | 11,294,883 | 11,272,233 | 11,247,741 | 11,262,144 | 11,376,054 | 11,250,042 | 11,289,143 | 11,599,877 |
Weighted average common shares—diluted | 11,366,427 | 11,523,917 | 11,534,163 | 11,555,104 | 11,535,589 | 11,494,520 | 11,489,566 | 11,602,633 | 11,499,061 | 11,530,154 | 11,747,261 |
Net income per share—basic | $0.19 | $0.16 | $0.21 | $0.17 | $0.13 | $0.10 | $0.09 | $0.16 | $0.73 | $0.49 | $0.44 |
Net income per share—diluted | $0.19 | $0.16 | $0.20 | $0.17 | $0.13 | $0.10 | $0.09 | $0.16 | $0.71 | $0.48 | $0.43 |