Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | Fox Chase Bancorp Inc | ||
Entity Central Index Key | 1,485,176 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, Shares Outstanding | 11,767,590 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 179.9 |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 3,413 | $ 2,763 |
Interest-earning demand deposits in other banks | 4,385 | 14,450 |
Total cash and cash equivalents | 7,798 | 17,213 |
Investment securities available-for-sale | 139,751 | 134,037 |
Mortgage related securities available-for-sale | 121,911 | 125,649 |
Investment securities held-to-maturity (fair value of $149,850 at December 31, 2015 and $170,854 at December 31, 2014) | 150,190 | 170,172 |
Loans, net of allowance for loan losses of $10,562 at December 31, 2015 and $10,730 at December 31, 2014 | 767,683 | 724,326 |
Federal Home Loan Bank stock, at cost | 6,734 | 6,015 |
Bank-owned life insurance | 25,687 | 15,027 |
Premises and equipment, net | 9,030 | 9,418 |
Assets acquired through foreclosure | 2,623 | 2,814 |
Real estate held for investment | 1,620 | 1,620 |
Accrued interest receivable | 3,145 | 3,147 |
Mortgage servicing rights, net | 104 | 111 |
Deferred tax asset, net | 5,142 | 4,561 |
Other assets | 6,096 | 6,155 |
Total Assets | 1,125,603 | 1,094,616 |
LIABILITIES | ||
Deposits | 764,974 | 711,909 |
Short-term borrowings | 38,496 | 50,000 |
Federal Home Loan Bank advances | 110,000 | 120,000 |
Other borrowed funds | 30,000 | 30,000 |
Advances from borrowers for taxes and insurance | 1,422 | 1,447 |
Accrued interest payable | 319 | 311 |
Accrued expenses and other liabilities | 3,478 | 5,038 |
Total Liabilities | $ 948,689 | $ 918,705 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock ($.01 par value; 1,000,000 shares authorized, none issued and outstanding at December 31, 2015 and December 31, 2014) | $ 0 | $ 0 |
Common stock ($.01 par value; 60,000,000 shares authorized, 11,767,590 shares outstanding at December 31, 2015 and 11,802,791 shares outstanding at December 31, 2014) | 149 | 147 |
Additional paid-in capital | 142,189 | 139,177 |
Treasury stock, at cost (3,141,201 shares at December 31, 2015 and 2,852,572 shares at December 31, 2014) | (44,468) | (39,698) |
Common stock acquired by benefit plans | (6,717) | (8,056) |
Retained earnings | 86,241 | 84,225 |
Accumulated other comprehensive income (loss), net | (480) | 116 |
Total Stockholders’ Equity | 176,914 | 175,911 |
Total Liabilities and Stockholders’ Equity | $ 1,125,603 | $ 1,094,616 |
Consolidated Statements of Con3
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Held-to-maturity Securities, Fair Value | $ 149,850 | $ 170,854 |
Loans, allowance for loan losses (in dollars) | $ 10,562 | $ 10,730 |
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 | 11,767,590 | 11,802,791 |
Common stock, shares outstanding | 11,767,590 | 11,802,791 |
Treasury stock, shares | 3,141,201 | 2,852,572 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 33,061 | $ 32,700 | $ 32,650 |
Interest and dividends on investment securities | |||
Interest and dividends on investment securities | 6,987 | 7,422 | 7,477 |
Other interest income | 25 | 7 | 2 |
Total Interest Income | 40,073 | 40,129 | 40,129 |
INTEREST EXPENSE | |||
Deposits | 3,000 | 3,216 | 4,344 |
Short-term borrowings | 94 | 127 | 130 |
Federal Home Loan Bank advances | 2,198 | 2,288 | 2,188 |
Other borrowed funds | 665 | 1,004 | 1,007 |
Total Interest Expense | 5,957 | 6,635 | 7,669 |
Net Interest Income | 34,116 | 33,494 | 32,460 |
(Credit) provision for loan losses | (995) | 1,943 | 982 |
Net Interest Income after (Credit) Provision for Loan Losses | 35,111 | 31,551 | 31,478 |
NONINTEREST INCOME | |||
Service charges and other fee income | 1,572 | 1,604 | 1,694 |
Net (loss) gain on sale of assets acquired through foreclosure | (12) | (68) | 484 |
Income on bank-owned life insurance | 661 | 480 | 470 |
Equity in earnings of affiliate | 303 | 172 | 445 |
Other | 209 | 105 | 165 |
Less: Portion of loss recognized in other comprehensive income (before taxes) | (206) | (60) | 0 |
Net gains on sale of investment securities (includes $0, $0 and $532 for the years ended December 31, 2015, 2014 and 2013, respectively, of accumulated other comprehensive income reclassifications for unrealized holdings gains) | 0 | 0 | 532 |
Net investment securities gains | 0 | 0 | 532 |
Total Noninterest Income | 2,733 | 2,293 | 3,790 |
NONINTEREST EXPENSE | |||
Salaries, benefits and other compensation | 15,470 | 14,380 | 14,338 |
Occupancy expense | 1,663 | 1,709 | 1,689 |
Furniture and equipment expense | 358 | 390 | 469 |
Data processing costs | 2,311 | 1,542 | 1,537 |
Professional fees | 1,970 | 1,417 | 1,691 |
Marketing expense | 192 | 302 | 248 |
FDIC premiums | 509 | 571 | 709 |
Assets acquired through foreclosure expense | 247 | 420 | 5,201 |
Other | 1,513 | 1,500 | 1,589 |
Total Noninterest Expense | 24,233 | 22,231 | 27,471 |
Income Before Income Taxes | 13,611 | 11,613 | 7,797 |
Income tax provision (includes $0, $0 and $186 for the years ended December 31, 2015, 2014 and 2013, respectively, of income tax expense from reclassification items) | 4,065 | 3,418 | 2,263 |
Net Income | $ 9,546 | $ 8,195 | $ 5,534 |
Earnings per share: | |||
Basic (in dollars per share) | $ 0.87 | $ 0.73 | $ 0.49 |
Diluted (in dollars per share) | $ 0.85 | $ 0.71 | $ 0.48 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Accumulated other comprehensive income reclassification for unrealized holdings gains | $ 0 | $ 0 | $ 532 |
Income tax expense from reclassification items | $ 0 | $ 0 | $ 186 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 9,546 | $ 8,195 | $ 5,534 |
Other comprehensive (loss) income: | |||
Unrealized holding (losses) gains on securities available-for-sale | (1,125) | 6,986 | (13,343) |
Tax Effect | 398 | (2,459) | 4,700 |
Net of Tax Amount | (727) | 4,527 | (8,643) |
Accretion of unrealized loss on securities reclassified to held-to-maturity | 206 | 60 | 0 |
Tax Effect | (75) | (22) | 0 |
Net of Tax Amount | 131 | 38 | 0 |
Reclassification adjustments for net investment securities gains included in net income | 0 | 0 | (532) |
Tax Effect | 0 | 0 | 186 |
Net of Tax Amount | 0 | 0 | (346) |
Other comprehensive (loss) income | (596) | 4,565 | (8,989) |
Comprehensive income (loss) | $ 8,950 | $ 12,760 | $ (3,455) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Treasury Stock | Common Stock Acquired by Benefit Plans | Retained Earnings | Accumulated Other Comprehensive Income, net |
BALANCE - beginning 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 |
Increase (Decrease) in Stockholders' Equity | |||||||
Purchase of treasury stock | (4,770) | 0 | 0 | (4,770) | 0 | 0 | 0 |
Stock based compensation expense | 1,468 | 0 | 1,468 | 0 | 0 | 0 | 0 |
Unallocated ESOP shares committed to employees | 1,116 | 0 | 492 | 0 | 624 | 0 | 0 |
Issuance of stock for vested equity awards | 0 | 0 | (790) | 0 | 715 | 75 | 0 |
Common stock issued for exercise of vested stock options | 1,015 | 2 | 1,013 | 0 | 0 | 0 | 0 |
Tax benefit from exercise of stock options and vesting of restricted stock | 829 | 0 | 829 | 0 | 0 | 0 | 0 |
Dividends paid | (7,605) | 0 | 0 | 0 | 0 | (7,605) | 0 |
Net income | 9,546 | 0 | 0 | 0 | 0 | 9,546 | 0 |
Other comprehensive income (loss) | (596) | 0 | 0 | 0 | 0 | 0 | (596) |
BALANCE - end of period at Dec. 31, 2015 | $ 176,914 | $ 149 | $ 142,189 | $ (44,468) | $ (6,717) | $ 86,241 | $ (480) |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Treasury Stock, Shares, Acquired | 288,629 | 384,400 | 218,572 |
Dividends paid (in dollars per share) | $ 0.68 | $ 0.60 | $ 0.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows From Operating Activities | |||
Net income | $ 9,546 | $ 8,195 | $ 5,534 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Credit) provision for loan losses | (995) | 1,943 | 982 |
Valuation adjustment for assets acquired through foreclosure | 137 | 305 | 5,017 |
Depreciation | 625 | 698 | 783 |
Net amortization of securities premiums and discounts | 1,689 | 1,884 | 2,596 |
Proceeds from the sale of loans held for sale | 0 | 0 | 3,157 |
Deferred income tax benefit (expense) | (260) | 1,864 | (1,067) |
Stock compensation from benefit plans | 2,584 | 2,338 | 2,238 |
Net loss (gain) on sale of assets acquired through foreclosure | 12 | 68 | (484) |
Net gains on sales of investment securities | 0 | 0 | (532) |
Income on bank-owned life insurance | (661) | (480) | (470) |
Excess tax benefit from exercise of stock options and vesting of restricted stock | (829) | (86) | (59) |
Decrease in mortgage servicing rights, net | 7 | 41 | 18 |
Decrease (increase) in accrued interest receivable and other assets | 204 | (1,281) | (381) |
(Decrease) increase in accrued interest payable, accrued expenses and other liabilities | (1,598) | (2,066) | 147 |
Net Cash Provided by Operating Activities | 10,461 | 13,423 | 17,479 |
Cash Flows from Investing Activities | |||
Equity investment in unconsolidated entity | 225 | 225 | 360 |
Investment securities - available-for-sale: | |||
Purchases | (36,531) | (2,830) | (49,821) |
Proceeds from sales | 0 | 0 | 9,517 |
Proceeds from maturities, calls and principal repayments | 28,819 | 34,155 | 64,467 |
Investment securities – held-to-maturity: | |||
Purchases | (5,823) | (20,630) | (51,420) |
Proceeds from maturities, calls and principal repayments | 25,140 | 15,180 | 10,992 |
Net (increase) decrease in loans | (5,064) | 26,686 | (4,217) |
Purchases of loans and loan participations | (37,048) | (34,372) | (40,877) |
Net (increase) decrease in Federal Home Loan Bank stock | (719) | 3,798 | (1,716) |
Purchase of bank-owned life insurance | (10,000) | ||
Purchases of premises and equipment | (237) | (302) | (171) |
Additions to assets acquired through foreclosure | (83) | (25) | (1,180) |
Proceeds from sales and payments on assets acquired through foreclosure | 440 | 4,996 | 4,093 |
Net Cash (Used in) Provided by Investing Activities | (40,881) | 26,881 | (59,973) |
Cash Flows from Financing Activities | |||
Net increase (decrease) in deposits | 53,065 | 38,194 | (13,694) |
Decrease in advances from borrowers for taxes and insurance | (25) | (78) | (174) |
Proceeds from Federal Home Loan Bank advances | 20,000 | 10,000 | 40,000 |
Principal payments on Federal Home Loan Bank advances | (30,000) | (40,000) | 0 |
Net (decrease) increase in short-term borrowings | (11,504) | (30,500) | 10,000 |
Excess tax benefit from exercise of stock options and vesting of restricted stock | 829 | 86 | 59 |
Common stock issued for exercise of stock options | 1,015 | 439 | 106 |
Purchase of treasury stock | (4,770) | (6,262) | (3,703) |
Cash dividends paid | (7,605) | (6,917) | (3,243) |
Net Cash Provided by (Used in) Financing Activities | 21,005 | (35,038) | 29,351 |
Net (Decrease) Increase in Cash and Cash Equivalents | (9,415) | 5,266 | (13,143) |
Cash and Cash Equivalents – Beginning | 17,213 | 11,947 | 25,090 |
Cash and Cash Equivalents – Ending | 7,798 | 17,213 | 11,947 |
Supplemental Disclosure of Cash Flow Information | |||
Interest paid | 5,949 | 6,638 | 7,685 |
Income taxes paid | 4,340 | 1,889 | 2,900 |
Reclassification of securities available-for-sale to held-to-maturity | 0 | 96,868 | 0 |
Transfers of loans to assets acquired through foreclosure | 315 | 1,906 | 5,174 |
Transfer of loans to loans held for sale | 0 | 0 | 3,157 |
Net charge-offs | $ (827) | $ 2,742 | $ 623 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Fox Chase Bancorp, Inc. (the "Bancorp" or "Fox Chase") 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 (the "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 with offices 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 sole 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. 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 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, 2015 or 2014 . 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 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 property. 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 home equity loans, home equity lines of credit, unsecured loans and 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 for certain employees and directors. The Company is the owner and beneficiary of the policies, however certain policies include split-dollar endorsements. Under these endorsements, beneficiaries of the insured individuals are entitled to a portion of the proceeds from the policy upon death of the insured. 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. During 2015, the Company purchased $10.0 million of additional BOLI. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. Land is carried at cost. When 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. 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, 2015 and December 31, 2014 , 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. Mortgage Servicing Rights Upon the sale of a residential mortgage loan where the Company retains servicing rights, a mortgage servicing right is recorded at fair value. 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 the 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, 2015 , the gross value of the servicing rights was $175,000 and the valuation allowance was $71,000 , providing for a net balance of $104,000 . 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. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 material tax exposure matters that were accrued as of December 31, 2015 and 2014 . 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 14 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 eliminated in consolidation 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 17 . 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 $829,000 , $86,000 and $59,000 in 2015 , 2014 and 2013 , 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 four or 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 at the measurement date and 50% on the fourth anniversary 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 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. Average 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. The following table presents the reconciliation of the numerators and denominators of the basic and diluted EPS computations. Years Ended December 31, 2015 2014 2013 Net income $ 9,546,000 $ 8,195,000 $ 5,534,000 Weighted-average common shares outstanding (1) 11,651,909 12,054,779 12,199,774 Average common stock acquired by stock benefit plans: ESOP shares unallocated (455,850 ) (521,371 ) (586,424 ) Shares purchased by trust (228,806 ) (283,366 ) (324,207 ) Weighted-average common shares used to calculate basic earnings per share 10,967,253 11,250,042 11,289,143 Dilutive effect of: Restricted stock awards 39,917 51,810 42,582 Stock option awards 198,140 197,209 198,429 Weighted-average common shares used to calculate diluted earnings per share 11,205,310 11,499,061 11,530,154 Earnings per share-basic $ 0.87 $ 0.73 $ 0.49 Earnings per share-diluted $ 0.85 $ 0.71 $ 0.48 Outstanding common stock equivalents having no dilutive effect 452,330 1,040,123 1,108,329 (1) Excludes treasury stock. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Proposed Merger with Univest Corporation of Pennsylvania On December 8, 2015, Univest and Fox Chase entered into a merger agreement (the "Merger Agreement") that provides that the Company will merge with and into Univest, with Univest remaining as the surviving entity. At the effective time of the Merger, Fox Chase shareholders will be entitled to elect to receive, for each share of Fox Chase common stock, subject to the election and adjustment procedures described in this joint proxy statement/prospectus, either 0.9731 shares of Univest common stock or $21.00 in cash; provided, however that, 60% of the total number of outstanding shares of Fox Chase common stock will be converted into Univest common stock, and the remaining outstanding shares of Fox Chase common stock will be converted into cash. As a result, if more Fox Chase shareholders make valid elections to receive either Univest common stock or cash than is available as merger consideration under the merger agreement, those Fox Chase shareholders electing the over-subscribed form of consideration may have the over-subscribed consideration proportionately reduced and substituted with consideration in the alternative form. NOTE 2 - BUSINESS COMBINATIONS (Continued) S ubject to the satisfaction or waiver of the closing conditions contained in the merger agreement, including the approval of the merger agreement by the Company’s and Univest's shareholders and the receipt of required regulatory approvals, Univest and the Company expect that the merger will be completed during the third quarter of 2016. However, it is possible that factors outside the control of both companies, including whether or when the required regulatory approvals will be received, could result in the merger being completed at a different time or not at all. |
INVESTMENT AND MORTGAGE RELATED
INVESTMENT AND MORTGAGE RELATED SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT AND MORTGAGE RELATED SECURITIES | INVESTMENT SECURITIES The amortized cost and fair value of securities available-for-sale and held-to-maturity as of December 31, 2015 and 2014 are summarized as follows: December 31, 2015 Amortized Gross Gross Fair (In thousands) Available-for-Sale Securities: Obligations of U.S. government agencies $ 301 $ — $ (2 ) $ 299 Corporate securities 17,625 9 (93 ) 17,541 Agency residential mortgage related securities 121,195 1,597 (881 ) 121,911 Total available-for-sale securities $ 139,121 $ 1,606 $ (976 ) $ 139,751 Held-to-Maturity Securities: Corporate securities $ 1,776 $ — $ (11 ) $ 1,765 Private label residential mortgage related securities 2,522 — (25 ) 2,497 Agency residential mortgage related securities 145,892 663 (967 ) 145,588 Total held-to-maturity securities $ 150,190 $ 663 $ (1,003 ) $ 149,850 December 31, 2014 Amortized Gross Gross Fair (In thousands) Available-for-Sale Securities: Obligations of U.S. government agencies $ 300 $ 2 $ — $ 302 Corporate securities 8,053 33 — 8,086 Agency residential 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 held-to-maturity securities $ 170,172 $ 1,245 $ (563 ) $ 170,854 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 3 - INVESTMENT 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, 2015 and 2014 . December 31, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Available-for-Sale Securities: Obligations of U.S. government agencies $ 299 $ (2 ) $ — $ — $ 299 $ (2 ) Corporate securities 15,015 (93 ) — — 15,015 (93 ) Agency residential mortgage related securities 79,995 (716 ) 7,927 (165 ) 87,922 (881 ) Total available-for-sale securities $ 95,309 $ (811 ) $ 7,927 $ (165 ) $ 103,236 $ (976 ) Held-to-Maturity Securities: Corporate securities $ 1,766 $ (11 ) $ — $ — $ 1,766 $ (11 ) Private label residential mortgage related 2,497 (25 ) — — 2,497 (25 ) Agency residential mortgage related securities 80,741 (709 ) 9,768 (258 ) 90,509 (967 ) Total held-to-maturity securities $ 85,004 $ (745 ) $ 9,768 $ (258 ) $ 94,772 $ (1,003 ) Total temporarily impaired securities $ 180,313 $ (1,556 ) $ 17,695 $ (423 ) $ 198,008 $ (1,979 ) December 31, 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Available-for-Sale Securities: Agency residential 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 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 ) During the years ended December 31, 2015 and 2014 , no securities were sold. There were no net investment securities gains or losses in the consolidated statement of operations for the years ended December 31, 2015 and 2014 . 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, 2015 , gross unrealized losses totaled $2.0 million . Ten agency residential mortgage related securities, with a fair value of $17.7 million , had an unrealized loss position of $423,000 for twelve months or longer as of December 31, 2015 . Additionally, 78 agency residential mortgage related securities, with a fair value of $160.7 million and an unrealized loss position of $1.4 million , seven corporate securities, with a fair value of $16.8 million and an unrealized loss position of $104,000 , one agency debenture, with a fair value of $299,000 and an unrealized loss position of $2,000 and one private label residential mortgage backed securities ("PLMBS"), with a fair value of $2.5 million and an unrealized loss position of $25,000 , had unrealized loss positions for less than twelve months as of December 31, 2015 . The fair value of these 97 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 NOTE 3 - INVESTMENT SECURITIES (Continued) 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. 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 had 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, 2015 , the amortized cost of held-to-maturity investments consisted of the following (in thousands): Original Cost Unrealized Loss at Transfer Post-transfer Accretion Amortized Cost Transferred securities $ 83,107 $ (1,625 ) $ (266 ) $ 81,216 Other held-to-maturity securities 68,974 — — 68,974 Total $ 152,081 $ (1,625 ) $ (266 ) $ 150,190 The amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at December 31, 2015 and 2014 by contractual maturity are as follows: Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (In thousands) December 31, 2015 Due in one year or less $ 2,517 $ 2,526 $ — $ — Due after one year through five years 15,409 15,314 1,776 1,765 Due after five years through ten years — — — — Due after ten years — — — — Total mortgage related securities 121,195 121,911 148,414 148,085 $ 139,121 $ 139,751 $ 150,190 $ 149,850 December 31, 2014 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 Securities with a fair value of $48.7 million and $37.0 million at December 31, 2015 and 2014 , respectively, were pledged to secure public deposits and for other purposes as required or permitted by law. Securities with a fair value of $161.7 million and $169.7 million at December 31, 2015 and 2014 , respectively, were used to secure FHLB advances, short-term borrowings, other borrowed funds and related unused borrowing capacities. See Note 8 . Securities with a fair value of $900,000 and $1.1 million at December 31, 2015 and 2014 , respectively, were used to secure derivative transactions. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
LOANS | LOANS The composition of net loans at December 31, 2015 and 2014 is provided below: December 31, 2015 2014 (In thousands) Real estate loans: One- to four-family $ 90,339 $ 108,208 Multi-family and commercial 442,612 388,821 Construction 35,794 39,541 568,745 536,570 Consumer loans 14,711 19,599 Commercial and industrial loans 195,078 179,181 Total loans 778,534 735,350 Deferred loan origination (fees) cost, net (289 ) (294 ) Allowance for loan losses (10,562 ) (10,730 ) Net loans $ 767,683 $ 724,326 The following tables present changes in the allowance for loan losses by loan segment for the years ended December 31, 2015 , 2014 and 2013 . Year Ended December 31, 2015 One- to Multi-family Construction Consumer Commercial Unallocated Total (In thousands) Balance, beginning $ 405 $ 5,990 $ 1,038 $ 184 $ 2,753 $ 360 $ 10,730 Provision (credit) for loan losses 303 425 (753 ) (874 ) (86 ) (10 ) (995 ) Loans charged off (347 ) (16 ) — (1 ) — — (364 ) Recoveries 1 65 295 825 5 — 1,191 Balance, ending $ 362 $ 6,464 $ 580 $ 134 $ 2,672 $ 350 $ 10,562 Year Ended December 31, 2014 One- to Multi-family Construction Consumer Commercial Unallocated Total (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 Year Ended December 31, 2013 One- to Multi-family Construction Consumer Commercial Unallocated Total (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 NOTE 4 - LOANS (Continued) The following tables provide details of loans, and associated allowance for loan losses, which are individually or collectively evaluated for impairment as of December 31, 2015 and 2014 . Year Ended December 31, 2015 One- to Multi-family Construction Consumer Commercial Unallocated Total (In thousands) Allowance for Loan Losses: Balance, ending: individually evaluated for impairment $ 3 $ 539 $ 135 $ 56 $ 54 $ — $ 787 Balance, ending: collectively evaluated for impairment 359 5,925 445 78 2,618 350 9,775 Total $ 362 $ 6,464 $ 580 $ 134 $ 2,672 $ 350 $ 10,562 Total Loans: Balance, ending: individually evaluated for impairment $ 1,460 $ 7,111 $ 3,866 $ 171 $ 718 $ — $ 13,326 Balance, ending: collectively evaluated for impairment 88,879 435,501 31,928 14,540 194,360 — 765,208 Total $ 90,339 $ 442,612 $ 35,794 $ 14,711 $ 195,078 $ — $ 778,534 Year Ended December 31, 2014 One- to Multi-family Construction Consumer Commercial Unallocated Total (In thousands) 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 NOTE 4 - LOANS (Continued) The following tables set forth the breakdown of impaired loans by loan segment as of December 31, 2015 and 2014 . December 31, 2015 Nonaccrual Accruing Other Total Impaired Impaired (In thousands) Real estate loans: One- to four-family $ 583 $ 877 $ — $ 1,460 $ 117 $ 1,343 Multi-family and commercial 1,074 1,685 4,352 7,111 6,340 771 Construction — 3,866 — 3,866 3,866 — Consumer loans 159 12 — 171 57 114 Commercial and industrial 718 — — 718 718 — Total $ 2,534 $ 6,440 $ 4,352 $ 13,326 $ 11,098 $ 2,228 December 31, 2014 Nonaccrual Accruing Other Total Impaired Impaired (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 For the years ended December 31, 2015, 2014 and 2013 , the average recorded investment in the impaired loans was $13.9 million , $12.5 million , and $15.9 million , respectively. The interest income recognized on these impaired loans was $794,000 , $533,000 and $359,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. Loans on which the accrual of interest has been discontinued amounted to $2.5 million at December 31, 2015 and $3.5 million at December 31, 2014 . If interest on such loans had been recorded in accordance with contractual terms, interest income would have increased by $120,000 , $161,000 and $616,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. There were no loans past due 90 days or more and still accruing interest at December 31, 2015, 2014 and 2013 . At December 31, 2015 , two TDRs totaling $1.1 million are excluded from the accruing TDR column above as they are included in nonaccrual loans. Of this amount, $1.0 million relates to one multi-family and commercial real estate loan and $93,000 relates to one residential loan. At December 31, 2014 , four TDRs totaling $1.4 million are excluded from the accruing TDR column as they are included in nonaccrual loans. Of this amount, $1.1 million relates to one multi-family and commercial real estate loan and $336,000 relates to three residential 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 4 - 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, 2015 and 2014 . December 31, 2015 Allowance for Loan Losses Impaired Loans Nonaccrual Accruing Other Total General Total (In thousands) Real estate loans: One- to four-family $ 3 $ — $ — $ 3 $ 359 $ 362 Multi-family and commercial 119 46 374 539 5,925 6,464 Construction — 135 — 135 445 580 Consumer loans 56 — — 56 78 134 Commercial and industrial 54 — — 54 2,618 2,672 Unallocated — — — — 350 350 Total allowance for loan losses $ 232 $ 181 $ 374 $ 787 $ 9,775 $ 10,562 December 31, 2014 Allowance for Loan Losses Impaired Loans Nonaccrual Accruing Other Total 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 NOTE 4 - 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, 2015 and 2014 . Year Ended December 31, 2015 Restructured Current Period Number Pre-Modification Post-Modification Type of Modification (Dollars in thousands) Real estate loans: One- to four-family — $ — $ — Multi-family and commercial 2 1,685 1,685 Delayed repayment Construction — — — Consumer loans — — — Commercial and industrial — — — Total 2 $ 1,685 $ 1,685 Year Ended December 31, 2014 Restructured Current Period Number Pre-Modification Post-Modification Type of Modification (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 At December 31, 2015 , the recorded investment of residential and consumer mortgage loans secured by residential real estate properties, for which formal foreclosure proceedings are in process, totaled $364,000 . At December 31, 2015 , there were three foreclosed residential real estate properties, which were carried at $122,000 . During the year ended December 31, 2014, a $1.6 million multi-family and commercial real estate TDR which was restructured during 2014 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. NOTE 4 - LOANS (Continued) The following table sets forth past due loans by segment as of December 31, 2015 and 2014 . December 31, 2015 2014 30-59 60-89 30-59 60-89 (In thousands) One- to four-family real estate $ 865 $ 685 $ — $ 145 Multi-family and commercial real estate — — — — Construction — — — — Consumer 156 — 113 — Commercial and industrial — — — — Total $ 1,021 $ 685 $ 113 $ 145 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, 2015 and 2014 . December 31, 2015 One- to Multi-family Construction Consumer Commercial Total (In thousands) Pass and Pass watch $ 89,756 $ 427,393 $ 31,927 $ 14,552 $ 191,496 $ 755,124 Special mention — 13,958 — — 1,799 15,757 Substandard 583 1,261 3,867 159 1,783 7,653 Doubtful — — — — — — Total loans $ 90,339 $ 442,612 $ 35,794 $ 14,711 $ 195,078 $ 778,534 December 31, 2014 One- to Multi-family Construction Consumer Commercial Total (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 |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 12 Months Ended |
Dec. 31, 2015 | |
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 $713,000 , 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 $92,000 and $116,000 at December 31, 2015 and 2014 , 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 $56,000 and $46,000 at December 31, 2015 and 2014 , 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 $2,000 and $16,000 for the years ended December 31, 2015 and 2014 , respectively. 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. By the terms of 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 ours 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, 2015 , 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 $12.2 million , and remaining maturities ranging from four to seven years. At December 31, 2014 , there were four variable-rate to fixed-rate interest 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. The fair value of the swaps to the customers was a liability of $53,000 and an asset of $91,000 as of December 31, 2015 and 2014 , respectively, and all swaps were in paying positions to the third-party financial institution at December 31, 2015 and 2014 . As of December 31, 2015 and 2014 , the fair value of the Company’s interest rate swap credit derivatives was a liability of $6,000 and $10,000 , respectively. During the years ended December 31, 2015 and 2014 , the Company recognized income of $5,000 and expense of $8,000 , respectively, from interest rate swap credit derivatives. At December 31, 2015 , there were no foreign currency swap transactions between the third-party financial institution and our customers. 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 liability 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 . During the years ended December 31, 2015 and 2014 , the Company recognized income of $6,000 and $12,000 , 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, 2015 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT The components of premises and equipment at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 (In thousands) Land $ 3,207 $ 3,207 Buildings 13,962 13,917 Leasehold improvements 162 161 Furniture, fixtures and equipment 3,847 4,845 21,178 22,130 Less: accumulated depreciation (12,148 ) (12,712 ) Premises and equipment, net $ 9,030 $ 9,418 As of December 31, 2015 , 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 lease for our Blue Bell office expired in January 2016. We are currently under a month-to-month arrangement for this location. The following rental expenses were included in the Company's financial statements. December 31, 2015 2014 2013 (In thousands) Office rent $ 388 $ 399 $ 407 Equipment lease 1 2 2 Total $ 389 $ 401 $ 409 The following table shows the minimum future rental payments under non-cancelable leases for premises and equipment as of December 31, 2015 . Year Amount (In thousands) 2015 $ 36 2016 — 2017 — 2018 — 2019 — |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS Deposits and their respective weighted average interest rate at December 31, 2015 and December 31, 2014 consist of the following: December 31, 2015 2014 Weighted Amount Weighted Amount (Dollars in thousands) Noninterest-bearing demand accounts — % $ 170,327 — % $ 168,791 NOW accounts 0.20 97,838 0.21 82,417 Money market accounts 0.28 93,325 0.22 73,802 Savings and club accounts 0.45 142,966 0.37 129,893 Brokered deposits 0.76 78,481 0.73 70,817 Certificates of deposit 0.88 182,037 0.87 186,189 Total 0.43 % $ 764,974 0.42 % $ 711,909 The scheduled maturities of certificates of deposit and brokered deposits for periods subsequent to December 31, 2015 are as follows: December 31, Year Certificates of Brokered Total (In thousands) 2016 $ 79,562 $ 56,072 $ 135,634 2017 61,122 11,232 72,354 2018 24,917 6,199 31,116 2019 7,592 4,978 12,570 2020 5,252 — 5,252 Thereafter 3,592 — 3,592 Total $ 182,037 $ 78,481 $ 260,518 A summary of interest expense on deposits for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 (In thousands) NOW accounts $ 190 $ 183 $ 172 Money market accounts 206 202 172 Savings and club accounts 501 275 141 Brokered deposits 525 450 391 Certificates of deposit 1,578 2,106 3,468 Total $ 3,000 $ 3,216 $ 4,344 The aggregate amount of certificates of deposit with a denomination greater than $250,000 was $7.5 million and $4.7 million at December 31, 2015 and 2014 , respectively. Deposits in excess of $250,000 are not insured by the FDIC. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2015 | |
BORROWINGS | |
BORROWINGS | BORROWINGS The following is a summary of borrowed funds by type: Balance at Weighted Average Maximum Amount Average Amount Weighted Average (Dollars in thousands) 2015 FHLB advances $ 110,000 2.02 % $ 120,000 $ 110,323 1.99 % Other borrowed funds 30,000 2.37 30,000 30,000 2.22 Short-term borrowings 38,496 0.43 60,000 27,689 0.34 2014 FHLB advances $ 120,000 1.80 % $ 150,000 $ 143,980 1.59 % Other borrowed funds 30,000 3.30 30,000 30,000 3.35 Short-term borrowings 50,000 0.32 84,900 41,000 0.31 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) March 2016 $ 10,000 0.60 % Not Applicable Not Applicable March 2016 10,000 0.62 Not Applicable Not Applicable September 2016 5,000 0.75 Not Applicable Not Applicable September 2016 10,000 1.04 Not Applicable Not Applicable June 2017 5,000 0.94 Not Applicable Not Applicable July 2017 10,000 0.92 Not Applicable Not Applicable November 2017 15,000 3.62 February 2016 3-month LIBOR + 0.10% November 2017 15,000 3.87 February 2016 3-month LIBOR + 0.10% December 2017 20,000 2.83 March 2016 3-month LIBOR + 0.11% July 2018 10,000 1.32 Not Applicable Not Applicable $ 110,000 2.02 % Advances from the FHLB of Pittsburgh with coupon rates ranging from 0.60% to 3.87% are due as follows. Maturity Amount Weighted Average (Dollars in thousands) 2016 $ 35,000 0.75 % 2017 65,000 2.81 2018 10,000 1.32 $ 110,000 2.02 % NOTE 8 - BORROWINGS (Continued) 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 borrowings' fixed rate resets to a variable 3-month 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 $478.8 million at December 31, 2015 . As of December 31, 2015 , the Bank had qualifying collateral pledged against its advances consisting of loans in the amount of $606.6 million and securities in the amount of $65.3 million . Additionally, as of December 31, 2015 , the Bank had a maximum borrowing capacity of $59.9 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 $59.9 million . As a member of the FHLB of Pittsburgh, the Bank is required to acquire and hold shares of FHLB of Pittsburgh capital stock. The FHLB 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 holding 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, 2015 , the Company had a minimum stock obligation of $2.5 million and a maximum stock obligation of $12.5 million . The Company held $6.7 million in FHLB stock at that date. Other Borrowed Funds Other borrowed funds obtained from large commercial banks under security repurchase agreements totaled $30.0 million at December 31, 2015 . These borrowings contractually mature with dates ranging from October 2018 through November 2020. 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) October 2018 $ 5,000 3.15% January 2016 Quarterly December 2018 5,000 1-month LIBOR + 2.03% Not Applicable Not Applicable September 2019 10,000 1-month LIBOR + 1.89% Not Applicable Not Applicable September 2020 5,000 1-month LIBOR + 1.56% Not Applicable Not Applicable November 2020 5,000 1-month LIBOR + 1.58% Not Applicable Not Applicable $ 30,000 Mortgage backed securities with a fair value of $34.8 million at December 31, 2015 were used to secure these other borrowed funds. Changes in the fair value of pledged collateral may require the Company to pledge additional securities. During January 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, 2015 , the Company had $38.5 million of overnight borrowings with the FHLB. The weighted average rate for this borrowing was 0.43% . 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. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS 401(k) Plan The Bank has a 401(k) retirement plan covering 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 $150,000 , $143,000 and $146,000 for the years ended December 31, 2015, 2014 and 2013 , 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 $4.9 million as of December 31, 2015 . The ESOP purchased shares in two separate transactions as described below. 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, 2015 and 2014 was $2.6 million and $3.0 million , respectively. ESOP shares from this transaction that were unallocated at December 31, 2015 totaled 205,088 and had a fair market value of $4.2 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, 2015 and 2014 was $2.3 million and $2.5 million , respectively. ESOP shares from this transaction that were unallocated at December 31, 2015 totaled 216,310 and had a fair market value of $4.4 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, 2015 , there were no shares committed to employees, 542,369 shares allocated to employees and 421,398 unallocated shares to be released in future periods. Total ESOP compensation expense for the years ended December 31, 2015, 2014 and 2013 was $1.1 million , $1.1 million and $1.1 million , respectively, representing the average fair market value of shares allocated during the year. On January 29, 2016, Fox Chase Bank submitted an application for determination to terminate the ESOP pursuant to an unanimous written consent of the Board of Directors of Fox Chase Bank on December 22, 2015. Contingent upon the merger, as discussed in Note 2 , the Company plans to terminate the ESOP on the last business day preceding the closing of the merger. 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, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION The Company maintains the Fox Chase Bancorp, Inc. 2007 Equity Incentive Plan (the "2007 Plan"), which 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. The Company maintains the Fox Chase Bancorp, Inc. 2011 Equity Incentive Plan (the "2011 Plan"), which 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 NOTE 10 - STOCK BASED COMPENSATION (Continued) 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, 2015, 2014 and 2013 , the Company recorded $1.5 million , $1.2 million and $1.1 million of stock based compensation expense, respectively, comprised of stock option expense of $465,000 , $437,000 and $431,000 , respectively and restricted stock expense of $1.0 million , $812,000 and $693,000 , respectively. The following is a summary of the Bancorp’s stock option activity and related information for the years ended December 31, 2015, 2014 and 2013 . Number of Weighted Weighted Aggregate Outstanding at December 31, 2012 877,669 $ 11.57 6.3 years $ 4,461,000 Granted 255,650 17.00 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 Granted 130,500 16.99 Exercised (493,586 ) 11.76 Forfeited/Cancelled (21,880 ) 15.45 Outstanding at December 31, 2015 715,554 $ 14.45 6.1 years $ 4,182,000 Exercisable at December 31, 2015 349,192 $ 12.63 4.4 years $ 2,677,000 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, 2015 , 2014 and 2013 are as follows: 2015 2014 2013 Fair Value $2.24 - $3.24 $3.49 - $3.66 $4.20 - $4.45 Expected Dividend Yield 4.00% 3.53% 2.22% Expected Volatility 22.45 % - 29.86% 30.71 % - 31.04% 31.11 % - 31.12% Risk-Free Interest Rate 1.65 % - 1.74% 1.85 % - 1.90% 1.19 % - 1.74% Expected Option Life in Years 6.5 6.5 6.5 NOTE 10 - STOCK BASED COMPENSATION (Continued) The 2007 Plan and 2011 Plan allow option holders to pay for option exercises using previously owned shares of Fox Chase Bancorp, Inc. common stock having an equivalent fair value. Options exercised using this method result in fewer shares being issued (the number of options exercised less any shares tendered to exercise the option). During 2015, 408,879 options were exercised using this method, which resulted in 168,721 shares being issued. The following is a summary of the Bancorp’s unvested options as of December 31, 2015, 2014 and 2013 and the changes therein during the years then ended. Number of Weighted Unvested at December 31, 2012 310,661 $ 3.36 Granted 255,650 4.20 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 $ 3.90 Granted 130,500 3.21 Vested (112,661 ) 3.82 Forfeited / Cancelled (20,980 ) 3.84 Unvested at December 31, 2015 366,362 $ 3.68 Expected future expense relating to the 366,362 non-vested options outstanding as of December 31, 2015 is $1.0 million over a weighted average period of 2.8 years . The following is a summary of the status of the Bancorp’s restricted stock as of December 31, 2015, 2014 and 2013 and changes therein during the years then ended. Number of Weighted Unvested at December 31, 2012 130,557 $ 12.41 Granted 122,450 17.00 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 Granted 51,755 16.31 Vested (56,154 ) 14.08 Forfeited / Cancelled (7,150 ) 15.51 Unvested at December 31, 2015 177,073 $ 16.04 Expected future compensation expense relating to the 177,073 restricted shares at December 31, 2015 is $2.0 million over a weighted average period of 2.7 years . NOTE 10 - STOCK BASED COMPENSATION (Continued) Performance-based restricted shares granted in 2012 and 2013, as discussed in the following paragraph, vest over a five -year period based on continued service with the Bank and the achievement of performance metrics. The performance metrics to be evaluated during the performance period are (1) return on assets, actual and growth rate, compared to a predetermined peer group and (2) earnings per share growth rate compared to the peer group ("performance criteria"). Each performance metric has a 50% weight. On the third anniversary of the grant date ("measurement date"), the Company's level of performance relative to the performance criteria are evaluated and the number of shares that will vest at that time and over the following two years will be determined. The number of shares eligible to vest is variable and can range from 0% to 150% of the shares identified on the grant date (the "target shares"). Of the shares that will vest, 50% of the shares vest on the measurement date and 25% vest on each of the fourth and fifth anniversaries of the date of grant. During August 2011, the Company granted 10,668 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 May 2012, the Company granted performance-based restricted stock to certain executive officers of the Company, of which 21,500 remained outstanding at the measurement date. During May 2015, the Company awarded an additional 9,055 shares of performance-based restricted stock, which represented additional shares owed to participants under the May 2012 grant as the Company exceeded the performance targets under the 2012 award. This represented a total grant of 142% of the "target shares." The 30,555 shares had a grant date fair value of $13.11 . During March 2013, the Company granted 39,250 shares 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, which is March 7, 2016. During March 2015, the Company granted 8,840 shares of performance-based restricted stock to certain executive officers of the Company. Performance-based restricted shares granted in 2015 utilize similar performance criteria and measurement date as outlined above for the 2012 and 2013 performance based grants. However, the 2015 awards vest 50% at measurement date and 50% on the fourth anniversary of the date of the grant. 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, which is March 18, 2018. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013 are as follows: December 31, 2015 2014 2013 (In thousands) Federal: Current $ 4,213 $ 1,534 $ 3,330 Deferred (70 ) 1,876 (1,083 ) 4,143 3,410 2,247 State: Current 112 20 — Deferred (190 ) (12 ) 16 (78 ) 8 16 $ 4,065 $ 3,418 $ 2,263 NOTE 11 - INCOME TAXES (Continued) The provision for income taxes differs from the statutory federal rate of 34% due to the following: December 31, 2015 2014 2013 (In thousands) Federal income tax at statutory rate of 34% $ 4,628 $ 3,948 $ 2,651 Tax exempt interest, net (280 ) (295 ) (233 ) Bank-owned life insurance (225 ) (163 ) (160 ) ESOP compensation expense 167 158 167 Merger related expenses 79 — — Other, net 38 19 14 Dividends received from equity method investments (61 ) (61 ) (98 ) Dividends paid on benefit plans (229 ) (192 ) (89 ) State taxes, net 123 (140 ) (20 ) (Decrease) increase in valuation allowance (175 ) 144 31 Total Provision $ 4,065 $ 3,418 $ 2,263 Effective tax rate 29.87 % 29.44 % 29.03 % The net deferred tax asset consisted of the following components as of December 31, 2015 and 2014 : December 31, 2015 2014 (In thousands) Deferred tax assets: Allowance for loan losses, net $ 3,743 $ 3,779 Provision for loss on assets acquired through foreclosure 133 100 Nonaccrual interest 42 89 Equity incentive plans 1,089 1,398 Accrued expenses 572 508 Loan origination fees and costs, net 102 — Merger related expenses 64 — Deferred lease liability 2 27 State net operating loss carryforward 82 65 Unrealized losses on securities available-for-sale 248 — 6,077 5,966 Valuation allowance (36 ) (211 ) 6,041 5,755 Deferred tax liabilities: Prepaid expense deduction 86 260 Mortgage servicing rights 37 39 Loan origination costs — 25 Deferrable earnings on investments 515 478 Depreciation of premises and equipment 261 319 Unrealized gains on securities available-for-sale — 73 899 1,194 Net Deferred Tax Asset $ 5,142 $ 4,561 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 $36,000 of net deferred tax assets related to Fox Chase Bank's state taxes. During 2015, the Company reversed a $182,000 valuation allowance on certain state deferred tax assets, as management determined it is more likely than not the deferred tax assets will be realized. NOTE 11 - INCOME TAXES (Continued) Retained earnings include $6.0 million at December 31, 2015, 2014 and 2013 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 $82,000 of gross deferred tax assets were related to state tax net operating losses at December 31, 2015 . Of this amount, $36,000 is related to the Bank and has a full valuation allowance due to an expectation of such net operating losses expiring before being utilized. The remaining $46,000 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 $509,000 of state net operating losses remaining as of December 31, 2015 for the Bank, which will expire on December 31, 2017 . The Company has $461,000 of state net operating losses remaining as of December 31, 2015 for Fox Chase Service Corporation, which will begin to expire December 31, 2029. As of December 31, 2015 and prior periods, the Company had no material unrecognized tax benefits or accrued interest and penalties under ASC 740-10. The Company's policy is to account for interest and penalties as a component of income tax expense. Federal and state tax years 2012 through 2014 were open for examination as of December 31, 2015 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 is as follows: December 31, 2015 2014 (In thousands) Commitments to grant loans $ 3,327 $ 43,853 Unfunded commitments under lines of credit 151,307 123,459 Standby letters of credit 14,366 17,324 Commercial letters of credit 495 413 $ 169,495 $ 185,049 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 $18.3 million and $6.6 million as of December 31, 2015 and December 31, 2014 , respectively. The interest rates on these fixed rate loans ranged from 1.00% to 5.00% as of December 31, 2015 and 4.25% to 6.00% as of December 31, 2014 . 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. NOTE 12 - COMMITMENTS AND CONTINGENCIES (Continued) 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, 2015 is as follows (in thousands): Year Amount 2016 $ 1,734 2017 1,496 2018 1,333 2019 1,222 2020 1,187 Thereafter 2,015 Merger-Related Litigation The Company has received a letter from attorneys representing a purported shareholder demanding that the Company's board remedy alleged breaches of fiduciary duties in connection with the merger. The letter asserts that the proposed transaction undervalues the Company and that the Company's directors breached their fiduciary duties by allegedly refusing to adequately shop the company and maximize shareholder value. The letter requests that the Company's board, among other things: (i) undertake all appropriate methods to maximize shareholder value; (ii) revise the merger agreement to eliminate certain deal protection devices; and (iii) refrain from completing the merger. A negative outcome in this matter could have a material adverse effect on the Company if it results in preliminary or permanent injunctive relief or rescission of the Merger Agreement. Such actions may also create additional uncertainty relating to the merger, and responding to such demands and defending such actions may be costly and distracting to management. The Company is currently not able to predict the outcome of any suit arising out of or relating to the proposed transaction that may be filed in the future. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
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. Federal regulations require federally insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, a total capital to risk-based assets of 8.0%, and a Tier 1 capital to total assets leverage ratio of 4.0%. These capital requirements ("Basel III") were effective January 1, 2015 and are the result of a final rule implementing recommendations of the Basel Committee on Banking Supervision and certain requirements of the Dodd-Frank Act. In addition to establishing the minimum regulatory capital requirements, these regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted asset above the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement is being phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented at 2.5% on January 1, 2019. Management believes, as of December 31, 2015 , that the Bancorp and Bank meet all capital adequacy requirements to which they were subject. As of December 31, 2015 , 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. NOTE 13 - STOCKHOLDERS' EQUITY (Continued) The Bancorp and Bank's actual capital amounts and ratios at December 31, 2015 and 2014 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 Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2015 (Basel III) Common Equity Tier 1 Capital Ratio (to risk-weighted assets) Bancorp $ 177,349 19.50 % $ 40,925 4.5 % $ 59,114 6.5 % Bank 151,676 16.69 40,887 4.5 59,060 6.5 Tier 1 Capital Ratio (to risk-weighted assets) Bancorp 177,349 19.50 54,567 6.0 72,755 8.0 Bank 151,676 16.69 54,517 6.0 72,689 8.0 Total Capital Ratio (to risk-weighted assets) Bancorp 186,291 20.48 72,755 8.0 90,944 10.0 Bank 160,618 17.68 72,689 8.0 90,861 10.0 Tier 1 Leverage Ratio (to adjusted average assets) Bancorp 177,349 15.85 44,755 4.0 55,944 5.0 Bank 151,676 13.52 44,875 4.0 56,094 5.0 December 31, 2014 Tier 1 Capital (to risk-weighted assets) Bancorp $ 175,795 22.41 % $ 31,379 4.0 % $ 47,069 6.0 % Bank 148,781 18.97 31,371 4.0 47,057 6.0 Total Risk-Based Capital (to risk-weighted assets) Bancorp 183,993 23.45 62,758 8.0 78,448 10.0 Bank 156,976 20.02 62,743 8.0 78,428 10.0 Tier 1 Capital (to adjusted assets) Bancorp 175,795 16.58 42,420 4.0 53,026 5.0 Bank 148,781 13.99 42,551 4.0 53,188 5.0 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 2015 , the Bancorp paid total cash dividends of $0.68 per common share. During 2014 , the Bancorp paid total cash dividends of $0.60 per common share. During the first quarter of 2015, the Bancorp received an $8.5 million dividend from the Bank, equaling the amount of the Bank's 2014 net income. 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 repurchased 288,629 shares of common stock during the year ended December 31, 2015 in conjunction with stock repurchase programs. There were 384,400 shares repurchased during the year ended December 31, 2014 . As of December 31, 2015 , the aggregate purchases recorded as treasury stock, at cost, on the Bancorp's statement of condition is $44.5 million . |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2015 | |
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. NOTE 14 - FAIR VALUE (Continued) 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 derived 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, 2015 and 2014 : Cash and Cash Equivalents The carrying amounts of cash and cash equivalents approximate their fair value. Investment Securities—Available-for-Sale and Held-to-Maturity Fair values for investment 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. The Company made no adjustments to the values obtained from the primary pricing service. 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 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. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. FHLB Stock It is not practical to determine the fair value of FHLB stock due to restriction placed on its transferability. Mortgage Servicing Rights The fair value of the mortgage servicing rights ("MSRs") was determined using a 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. 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. NOTE 14 - FAIR VALUE (Continued) 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. The estimated fair values of the Company’s financial instruments at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 Fair Value Carrying Estimated Carrying Estimated (In thousands) Financial assets: Cash and cash equivalents Level 1 $ 7,798 $ 7,798 $ 17,213 $ 17,213 Investment securities available-for-sale Level 2 139,751 139,751 134,037 134,037 Investment securities held-to-maturity Level 2 150,190 149,850 170,172 170,854 Loans receivable, net Level 3 767,683 768,516 724,326 732,142 FHLB stock NA 6,734 NA 6,015 NA Accrued interest receivable Level 2, 3 3,145 3,145 3,147 3,147 Mortgage servicing rights Level 3 104 104 111 111 Financial liabilities: Savings and club accounts Level 2 142,966 142,966 129,893 129,893 Demand, NOW and money market deposits Level 2 361,490 361,490 325,010 325,010 Brokered deposits Level 2 78,481 78,219 70,817 70,600 Certificates of deposit Level 2 182,037 181,422 186,189 186,154 Short-term borrowings Level 2 38,496 38,496 50,000 50,000 FHLB advances Level 2 110,000 111,985 120,000 123,189 Other borrowed funds Level 2 30,000 31,692 30,000 32,017 Accrued interest payable Level 2 319 319 311 311 Derivative contracts Level 2, 3 154 154 174 174 The following financial instruments were classified as Level 3 and carried at fair value on a recurring basis as of the dates indicated below: • Two commercial loans, since lending credit risk is not an observable input for these loans (see interest rate swap discussion in Note 5 ). The unrealized gain on the two loans was $137,000 at December 31, 2015 compared to $152,000 at December 31, 2014 . • Credit derivatives are valued based on creditworthiness of the underlying borrower which is a significant unobservable input. The liability resulting from credit derivatives was $6,000 and $12,000 at December 31, 2015 and 2014 , respectively. NOTE 14 - FAIR VALUE (Continued) The following measures were made on a recurring basis as of December 31, 2015 and 2014 . Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Other Significant Other As of Description December 31, 2015 (Level 1) (Level 2) (Level 3) (In thousands) Available-for-Sale Securities: Obligations of U.S. government agencies $ 299 $ — $ 299 $ — Corporate securities 17,541 — 17,541 — Agency residential mortgage related securities 121,911 — 121,911 — Loans (1) 2,315 — — 2,315 Derivative contracts (1) (154 ) — (148 ) (6 ) Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Other Significant Other As of Description December 31, 2014 (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 ) (1) Such financial instruments are recorded at fair value as further described in Note 5 . The following measures were made on a non-recurring basis as of December 31, 2015 and 2014 : Loans, which were partially charged off at December 31, 2015 and 2014 . 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 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 14 - FAIR VALUE (Continued) Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Other Significant Other Balance (Level 1) (Level 2) (Level 3) December 31, 2015 (In thousands) Loans $ 1,239 $ — $ — $ 1,239 Mortgage servicing rights 104 — — 104 Other real estate owned 2,623 — — 2,623 Total $ 3,966 $ — $ — $ 3,966 December 31, 2014 Loans $ 1,654 $ — $ — $ 1,654 Mortgage servicing rights 111 — — 111 Other real estate owned 2,814 — — 2,814 Total $ 4,579 $ — $ — $ 4,579 The following tables include a roll forward of the financial instruments which fair value is determined on a recurring basis using Significant Other Unobservable Inputs (Level 3) for the periods from December 31, 2013 to December 31, 2015 . Private Label Commercial Mortgage Related Securities Derivative Contracts Financial Assets Acquired from Debtors Loans Total (In thousands) Beginning 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 ) (Decrease) increase in value (2 ) 4 — 28 30 Ending balance, December 31, 2014 $ — $ (12 ) $ — $ 2,451 $ 2,439 Purchases/additions — (2 ) — — (2 ) Sales — — — — — Payments received — — — (120 ) (120 ) Increase (decrease) in value — 8 — (16 ) (8 ) Ending balance, December 31, 2015 $ — $ (6 ) $ — $ 2,315 $ 2,309 There were no transfers made between levels during the years ended December 31, 2015 or 2014 . |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Transactions with Directors and Executive Officers The Company may from time to time enter into transactions with its directors and executive officers. There were no loans to directors and executive officers as of December 31, 2015 and 2014 . Equity Method Investments As of December 31, 2015, 2014 and 2013 , Fox Chase Bank owned approximately 45% of PMA. During 2015 , 2014 and 2013 , 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 $288,000 , $269,000 , and $307,000 for the years ended December 31, 2015, 2014 and 2013 , respectively, as well as loan satisfaction fees, which are recorded in service charges and other fee income, of $39,000 , $35,000 and $47,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. The balance outstanding on the warehouse line was $7.6 million and $11.7 million at December 31, 2015 and 2014 , respectively. In addition, the Company acquired total loans from PMA of $0 , $668,000 and $892,000 for the years ended December 31, 2015, 2014 and 2013 , respectively, which includes the cost of the loans. The Company's investment in PMA was $2.2 million and $2.1 million , respectively, at December 31, 2015 and 2014 and was included in other assets on the consolidated statements of condition. |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS Accounting Standards Update (ASU) No. 2015-01 - Income Statement—Extraordinary and Unusual Items (Subtopic 225-20) - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The objective of this update is to simplify the income statement presentation requirements in Subtopic 225-20 by eliminating the concept of extraordinary items. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. The amendments in this update were effective for the Company for annual and interim periods beginning on or after January 1, 2016. This update did not have an impact on the Company’s consolidated financial statements. ASU No. 2015-02 - Consolidation (Topic 810) - Amendments to the Consolidation Analysis. The amendments in this update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (2) Eliminate the presumption that a general partner should consolidate a limited partnership, (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amendments in this update were effective for the Company for annual and interim periods beginning on or after January 1, 2016. This update did not have an impact on the Company’s consolidated financial statements. ASU No. 2015-05 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The amendments in this Update provide guidance to software customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change generally accepted accounting principles for a customer’s accounting for service contracts. The amendments in this update were effective for the Company for annual and interim periods beginning on or after January 1, 2016, however early adoption was permitted. The Company adopted this update effective with its issuance. Pursuant to the this guidance, agreements related to the change in our outsourced data processing systems during October 2015 are accounted for as service contracts. |
PARENT COMPANY ONLY FINANCIAL S
PARENT COMPANY ONLY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 (In thousands) ASSETS Cash and due from banks $ 1,101 $ 290 Interest-earning deposits with banks 19,051 19,994 Total cash and cash equivalents 20,152 20,284 Investment in subsidiary 151,242 148,897 Due from subsidiary, net — 1,020 ESOP loans 4,903 5,525 Deferred Tax Asset 62 — Other assets 1,088 261 Total Assets 177,447 175,987 LIABILITIES AND STOCKHOLDERS' EQUITY Due to subsidiary, net 4 — Other liabilities 529 76 Total Liabilities 533 76 Stockholders' Equity 176,914 175,911 Total Liabilities and Stockholders' Equity $ 177,447 $ 175,987 CONDENSED STATEMENTS OF OPERATIONS Years Ended December 31, 2015 2014 2013 (In thousands) INCOME Interest on deposits with banks $ 31 $ 37 $ 37 Interest on ESOP loans 327 365 400 Total Income 358 402 437 EXPENSES Other expenses 1,456 906 996 Total Expenses 1,456 906 996 Loss before income tax benefit and equity in undistributed net earnings of subsidiary (1,098 ) (504 ) (559 ) Income tax benefit (292 ) (171 ) (280 ) Loss before equity in undistributed net earnings of subsidiary (806 ) (333 ) (279 ) Equity in undistributed net earnings of subsidiary 10,352 8,528 5,813 Net Income $ 9,546 $ 8,195 $ 5,534 NOTE 17 - PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued) CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2015 2014 2013 (In thousands) Cash Flows From Operating Activities Net income $ 9,546 $ 8,195 $ 5,534 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiary (10,352 ) (8,528 ) (5,813 ) Increase in deferred tax asset (62 ) — — Decrease (increase) in due from subsidiary, net 1,024 (132 ) (907 ) Excess tax benefit from exercise of stock options and vesting of restricted stock (829 ) (86 ) (59 ) Decrease (increase) in other assets 2 (155 ) 588 Increase (decrease) in other liabilities 453 (34 ) (2 ) Net Cash Used in Operating Activities (218 ) (740 ) (659 ) Cash Flows from Investing Activities Loan payment received on ESOP loans 622 584 550 Cash dividends received from subsidiary 8,527 5,813 — Net Cash Provided by Investing Activities 9,149 6,397 550 Cash Flows from Financing Activities Purchase of treasury stock (4,770 ) (6,262 ) (3,703 ) Excess tax benefit from exercise of stock options and vesting of restricted stock 829 86 59 Receipts from subsidiary related to equity compensation activity 1,468 1,248 3,316 Common stock issued for exercise of stock options 1,015 439 106 Cash dividends paid (7,605 ) (6,917 ) (3,243 ) Net Cash Used in Financing Activities (9,063 ) (11,406 ) (3,465 ) Net Decrease in Cash and Cash Equivalents (132 ) (5,749 ) (3,574 ) Cash and Cash Equivalents—Beginning 20,284 26,033 29,607 Cash and Cash Equivalents—Ending $ 20,152 $ 20,284 $ 26,033 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
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 $1.8 million for the quarter ended December 31, 2015 and net income of $2.1 million for the quarter ended December 31, 2014 . The net income for the quarter ended December 31, 2015 included $487,000 of merger related expense and $292,000 of one-time core data processing systems conversion expense. The net income for the quarter ended December 31, 2014 included a provision for loan losses of $350,000 and a valuation adjustment of assets acquired through foreclosure of $23,000 , which was recorded in noninterest expense. Three Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014 (Dollars in thousands, except per share data) Interest income $ 9,953 $ 9,906 $ 10,090 $ 10,124 $ 9,840 $ 10,153 $ 10,078 $ 10,058 Interest expense 1,563 1,505 1,437 1,452 1,606 1,635 1,653 1,741 Net interest income 8,390 8,401 8,653 8,672 8,234 8,518 8,425 8,317 Provision (Credit) for loan losses 100 (300 ) (1,267 ) 472 350 1,493 100 — Net interest income after provision for loan losses 8,290 8,701 9,920 8,200 7,884 7,025 8,325 8,317 Noninterest income 745 721 696 571 678 642 514 459 Noninterest expense 6,387 6,058 6,023 5,765 5,621 5,198 5,419 5,993 Income before taxes 2,648 3,364 4,593 3,006 2,941 2,469 3,420 2,783 Income tax provision 865 1,036 1,437 727 833 653 1,105 827 Net Income $ 1,783 $ 2,328 $ 3,156 $ 2,279 $ 2,108 $ 1,816 $ 2,315 $ 1,956 Per Common Share Data Weighted average common shares—basic 10,984,837 10,918,909 10,938,705 11,027,566 11,127,377 11,287,884 11,291,452 11,294,883 Weighted average common shares—diluted 11,216,635 11,148,260 11,176,780 11,267,666 11,366,427 11,523,917 11,534,163 11,555,104 Net income per share—basic $ 0.16 $ 0.21 $ 0.29 $ 0.21 $ 0.19 $ 0.16 $ 0.21 $ 0.17 Net income per share—diluted $ 0.16 $ 0.21 $ 0.28 $ 0.20 $ 0.19 $ 0.16 $ 0.20 $ 0.17 |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 sole 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. |
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 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 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 property. 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 home equity loans, home equity lines of credit, unsecured loans and 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 for certain employees and directors. The Company is the owner and beneficiary of the policies, however certain policies include split-dollar endorsements. Under these endorsements, beneficiaries of the insured individuals are entitled to a portion of the proceeds from the policy upon death of the insured. 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. During 2015, the Company purchased $10.0 million of additional BOLI. |
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. Land is carried at cost. When 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. |
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, 2015 and December 31, 2014 , 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. |
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 at fair value. 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 the 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, 2015 , the gross value of the servicing rights was $175,000 and the valuation allowance was $71,000 , providing for a net balance of $104,000 . |
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. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 material tax exposure matters that were accrued as of December 31, 2015 and 2014 . 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 14 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 eliminated in consolidation 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 17 . 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 $829,000 , $86,000 and $59,000 in 2015 , 2014 and 2013 , 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 four or 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 at the measurement date and 50% on the fourth anniversary 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 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. Average 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. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 or 2014 . |
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, 2015 2014 2013 Net income $ 9,546,000 $ 8,195,000 $ 5,534,000 Weighted-average common shares outstanding (1) 11,651,909 12,054,779 12,199,774 Average common stock acquired by stock benefit plans: ESOP shares unallocated (455,850 ) (521,371 ) (586,424 ) Shares purchased by trust (228,806 ) (283,366 ) (324,207 ) Weighted-average common shares used to calculate basic earnings per share 10,967,253 11,250,042 11,289,143 Dilutive effect of: Restricted stock awards 39,917 51,810 42,582 Stock option awards 198,140 197,209 198,429 Weighted-average common shares used to calculate diluted earnings per share 11,205,310 11,499,061 11,530,154 Earnings per share-basic $ 0.87 $ 0.73 $ 0.49 Earnings per share-diluted $ 0.85 $ 0.71 $ 0.48 Outstanding common stock equivalents having no dilutive effect 452,330 1,040,123 1,108,329 (1) Excludes treasury stock. |
INVESTMENT AND MORTGAGE RELAT30
INVESTMENT AND MORTGAGE RELATED SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | |
Held-to-maturity Securities [Table Text Block] | At December 31, 2015 , the amortized cost of held-to-maturity investments consisted of the following (in thousands): Original Cost Unrealized Loss at Transfer Post-transfer Accretion Amortized Cost Transferred securities $ 83,107 $ (1,625 ) $ (266 ) $ 81,216 Other held-to-maturity securities 68,974 — — 68,974 Total $ 152,081 $ (1,625 ) $ (266 ) $ 150,190 |
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, 2015 and 2014 are summarized as follows: December 31, 2015 Amortized Gross Gross Fair (In thousands) Available-for-Sale Securities: Obligations of U.S. government agencies $ 301 $ — $ (2 ) $ 299 Corporate securities 17,625 9 (93 ) 17,541 Agency residential mortgage related securities 121,195 1,597 (881 ) 121,911 Total available-for-sale securities $ 139,121 $ 1,606 $ (976 ) $ 139,751 Held-to-Maturity Securities: Corporate securities $ 1,776 $ — $ (11 ) $ 1,765 Private label residential mortgage related securities 2,522 — (25 ) 2,497 Agency residential mortgage related securities 145,892 663 (967 ) 145,588 Total held-to-maturity securities $ 150,190 $ 663 $ (1,003 ) $ 149,850 December 31, 2014 Amortized Gross Gross Fair (In thousands) Available-for-Sale Securities: Obligations of U.S. government agencies $ 300 $ 2 $ — $ 302 Corporate securities 8,053 33 — 8,086 Agency residential 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 held-to-maturity securities $ 170,172 $ 1,245 $ (563 ) $ 170,854 |
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, 2015 and 2014 . December 31, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Available-for-Sale Securities: Obligations of U.S. government agencies $ 299 $ (2 ) $ — $ — $ 299 $ (2 ) Corporate securities 15,015 (93 ) — — 15,015 (93 ) Agency residential mortgage related securities 79,995 (716 ) 7,927 (165 ) 87,922 (881 ) Total available-for-sale securities $ 95,309 $ (811 ) $ 7,927 $ (165 ) $ 103,236 $ (976 ) Held-to-Maturity Securities: Corporate securities $ 1,766 $ (11 ) $ — $ — $ 1,766 $ (11 ) Private label residential mortgage related 2,497 (25 ) — — 2,497 (25 ) Agency residential mortgage related securities 80,741 (709 ) 9,768 (258 ) 90,509 (967 ) Total held-to-maturity securities $ 85,004 $ (745 ) $ 9,768 $ (258 ) $ 94,772 $ (1,003 ) Total temporarily impaired securities $ 180,313 $ (1,556 ) $ 17,695 $ (423 ) $ 198,008 $ (1,979 ) December 31, 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Available-for-Sale Securities: Agency residential 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 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 ) |
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, 2015 and 2014 by contractual maturity are as follows: Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (In thousands) December 31, 2015 Due in one year or less $ 2,517 $ 2,526 $ — $ — Due after one year through five years 15,409 15,314 1,776 1,765 Due after five years through ten years — — — — Due after ten years — — — — Total mortgage related securities 121,195 121,911 148,414 148,085 $ 139,121 $ 139,751 $ 150,190 $ 149,850 December 31, 2014 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 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of composition of net loans | The composition of net loans at December 31, 2015 and 2014 is provided below: December 31, 2015 2014 (In thousands) Real estate loans: One- to four-family $ 90,339 $ 108,208 Multi-family and commercial 442,612 388,821 Construction 35,794 39,541 568,745 536,570 Consumer loans 14,711 19,599 Commercial and industrial loans 195,078 179,181 Total loans 778,534 735,350 Deferred loan origination (fees) cost, net (289 ) (294 ) Allowance for loan losses (10,562 ) (10,730 ) Net loans $ 767,683 $ 724,326 |
Schedule of changes in allowance for loan losses | The following tables present changes in the allowance for loan losses by loan segment for the years ended December 31, 2015 , 2014 and 2013 . Year Ended December 31, 2015 One- to Multi-family Construction Consumer Commercial Unallocated Total (In thousands) Balance, beginning $ 405 $ 5,990 $ 1,038 $ 184 $ 2,753 $ 360 $ 10,730 Provision (credit) for loan losses 303 425 (753 ) (874 ) (86 ) (10 ) (995 ) Loans charged off (347 ) (16 ) — (1 ) — — (364 ) Recoveries 1 65 295 825 5 — 1,191 Balance, ending $ 362 $ 6,464 $ 580 $ 134 $ 2,672 $ 350 $ 10,562 Year Ended December 31, 2014 One- to Multi-family Construction Consumer Commercial Unallocated Total (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 Year Ended December 31, 2013 One- to Multi-family Construction Consumer Commercial Unallocated Total (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 |
Schedule of changes in allowance for loan losses by loan segment | The following tables provide details of loans, and associated allowance for loan losses, which are individually or collectively evaluated for impairment as of December 31, 2015 and 2014 . Year Ended December 31, 2015 One- to Multi-family Construction Consumer Commercial Unallocated Total (In thousands) Allowance for Loan Losses: Balance, ending: individually evaluated for impairment $ 3 $ 539 $ 135 $ 56 $ 54 $ — $ 787 Balance, ending: collectively evaluated for impairment 359 5,925 445 78 2,618 350 9,775 Total $ 362 $ 6,464 $ 580 $ 134 $ 2,672 $ 350 $ 10,562 Total Loans: Balance, ending: individually evaluated for impairment $ 1,460 $ 7,111 $ 3,866 $ 171 $ 718 $ — $ 13,326 Balance, ending: collectively evaluated for impairment 88,879 435,501 31,928 14,540 194,360 — 765,208 Total $ 90,339 $ 442,612 $ 35,794 $ 14,711 $ 195,078 $ — $ 778,534 Year Ended December 31, 2014 One- to Multi-family Construction Consumer Commercial Unallocated Total (In thousands) 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 |
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, 2015 and 2014 . December 31, 2015 Nonaccrual Accruing Other Total Impaired Impaired (In thousands) Real estate loans: One- to four-family $ 583 $ 877 $ — $ 1,460 $ 117 $ 1,343 Multi-family and commercial 1,074 1,685 4,352 7,111 6,340 771 Construction — 3,866 — 3,866 3,866 — Consumer loans 159 12 — 171 57 114 Commercial and industrial 718 — — 718 718 — Total $ 2,534 $ 6,440 $ 4,352 $ 13,326 $ 11,098 $ 2,228 December 31, 2014 Nonaccrual Accruing Other Total Impaired Impaired (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 |
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, 2015 and 2014 . December 31, 2015 Allowance for Loan Losses Impaired Loans Nonaccrual Accruing Other Total General Total (In thousands) Real estate loans: One- to four-family $ 3 $ — $ — $ 3 $ 359 $ 362 Multi-family and commercial 119 46 374 539 5,925 6,464 Construction — 135 — 135 445 580 Consumer loans 56 — — 56 78 134 Commercial and industrial 54 — — 54 2,618 2,672 Unallocated — — — — 350 350 Total allowance for loan losses $ 232 $ 181 $ 374 $ 787 $ 9,775 $ 10,562 December 31, 2014 Allowance for Loan Losses Impaired Loans Nonaccrual Accruing Other Total 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 |
Summary of TDR activity for the periods | The following tables set forth a summary of the TDR activity for the years ended December 31, 2015 and 2014 . Year Ended December 31, 2015 Restructured Current Period Number Pre-Modification Post-Modification Type of Modification (Dollars in thousands) Real estate loans: One- to four-family — $ — $ — Multi-family and commercial 2 1,685 1,685 Delayed repayment Construction — — — Consumer loans — — — Commercial and industrial — — — Total 2 $ 1,685 $ 1,685 Year Ended December 31, 2014 Restructured Current Period Number Pre-Modification Post-Modification Type of Modification (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 |
Schedule of past due loans by segment | The following table sets forth past due loans by segment as of December 31, 2015 and 2014 . December 31, 2015 2014 30-59 60-89 30-59 60-89 (In thousands) One- to four-family real estate $ 865 $ 685 $ — $ 145 Multi-family and commercial real estate — — — — Construction — — — — Consumer 156 — 113 — Commercial and industrial — — — — Total $ 1,021 $ 685 $ 113 $ 145 |
Schedule of criticized and classified loans by segment | The following tables set forth criticized and classified loans by segment as of December 31, 2015 and 2014 . December 31, 2015 One- to Multi-family Construction Consumer Commercial Total (In thousands) Pass and Pass watch $ 89,756 $ 427,393 $ 31,927 $ 14,552 $ 191,496 $ 755,124 Special mention — 13,958 — — 1,799 15,757 Substandard 583 1,261 3,867 159 1,783 7,653 Doubtful — — — — — — Total loans $ 90,339 $ 442,612 $ 35,794 $ 14,711 $ 195,078 $ 778,534 December 31, 2014 One- to Multi-family Construction Consumer Commercial Total (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 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of premises and equipment | The components of premises and equipment at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 (In thousands) Land $ 3,207 $ 3,207 Buildings 13,962 13,917 Leasehold improvements 162 161 Furniture, fixtures and equipment 3,847 4,845 21,178 22,130 Less: accumulated depreciation (12,148 ) (12,712 ) Premises and equipment, net $ 9,030 $ 9,418 |
Schedule of rental expenses | The following rental expenses were included in the Company's financial statements. December 31, 2015 2014 2013 (In thousands) Office rent $ 388 $ 399 $ 407 Equipment lease 1 2 2 Total $ 389 $ 401 $ 409 |
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, 2015 . Year Amount (In thousands) 2015 $ 36 2016 — 2017 — 2018 — 2019 — |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and December 31, 2014 consist of the following: December 31, 2015 2014 Weighted Amount Weighted Amount (Dollars in thousands) Noninterest-bearing demand accounts — % $ 170,327 — % $ 168,791 NOW accounts 0.20 97,838 0.21 82,417 Money market accounts 0.28 93,325 0.22 73,802 Savings and club accounts 0.45 142,966 0.37 129,893 Brokered deposits 0.76 78,481 0.73 70,817 Certificates of deposit 0.88 182,037 0.87 186,189 Total 0.43 % $ 764,974 0.42 % $ 711,909 |
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, 2015 are as follows: December 31, Year Certificates of Brokered Total (In thousands) 2016 $ 79,562 $ 56,072 $ 135,634 2017 61,122 11,232 72,354 2018 24,917 6,199 31,116 2019 7,592 4,978 12,570 2020 5,252 — 5,252 Thereafter 3,592 — 3,592 Total $ 182,037 $ 78,481 $ 260,518 |
Summary of interest expense on deposits | A summary of interest expense on deposits for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 (In thousands) NOW accounts $ 190 $ 183 $ 172 Money market accounts 206 202 172 Savings and club accounts 501 275 141 Brokered deposits 525 450 391 Certificates of deposit 1,578 2,106 3,468 Total $ 3,000 $ 3,216 $ 4,344 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 (Dollars in thousands) 2015 FHLB advances $ 110,000 2.02 % $ 120,000 $ 110,323 1.99 % Other borrowed funds 30,000 2.37 30,000 30,000 2.22 Short-term borrowings 38,496 0.43 60,000 27,689 0.34 2014 FHLB advances $ 120,000 1.80 % $ 150,000 $ 143,980 1.59 % Other borrowed funds 30,000 3.30 30,000 30,000 3.35 Short-term borrowings 50,000 0.32 84,900 41,000 0.31 |
Schedule of FHLB advances | Maturity Date Amount Coupon Rate Call Date Rate if Called (In thousands) March 2016 $ 10,000 0.60 % Not Applicable Not Applicable March 2016 10,000 0.62 Not Applicable Not Applicable September 2016 5,000 0.75 Not Applicable Not Applicable September 2016 10,000 1.04 Not Applicable Not Applicable June 2017 5,000 0.94 Not Applicable Not Applicable July 2017 10,000 0.92 Not Applicable Not Applicable November 2017 15,000 3.62 February 2016 3-month LIBOR + 0.10% November 2017 15,000 3.87 February 2016 3-month LIBOR + 0.10% December 2017 20,000 2.83 March 2016 3-month LIBOR + 0.11% July 2018 10,000 1.32 Not Applicable Not Applicable $ 110,000 2.02 % |
Schedule of maturity of FHLB advances with weighted average coupon by year | Advances from the FHLB of Pittsburgh with coupon rates ranging from 0.60% to 3.87% are due as follows. Maturity Amount Weighted Average (Dollars in thousands) 2016 $ 35,000 0.75 % 2017 65,000 2.81 2018 10,000 1.32 $ 110,000 2.02 % |
Schedule of other long-term borrowings | Next Call Date Subsequent Call Frequency Maturity Date Amount Coupon Rate (In thousands) October 2018 $ 5,000 3.15% January 2016 Quarterly December 2018 5,000 1-month LIBOR + 2.03% Not Applicable Not Applicable September 2019 10,000 1-month LIBOR + 1.89% Not Applicable Not Applicable September 2020 5,000 1-month LIBOR + 1.56% Not Applicable Not Applicable November 2020 5,000 1-month LIBOR + 1.58% Not Applicable Not Applicable $ 30,000 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 2014 and 2013 . Number of Weighted Weighted Aggregate Outstanding at December 31, 2012 877,669 $ 11.57 6.3 years $ 4,461,000 Granted 255,650 17.00 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 Granted 130,500 16.99 Exercised (493,586 ) 11.76 Forfeited/Cancelled (21,880 ) 15.45 Outstanding at December 31, 2015 715,554 $ 14.45 6.1 years $ 4,182,000 Exercisable at December 31, 2015 349,192 $ 12.63 4.4 years $ 2,677,000 |
Schedule of assumptions to determine the fair value of the options | The fair value and underlying assumptions for the years ended December 31, 2015 , 2014 and 2013 are as follows: 2015 2014 2013 Fair Value $2.24 - $3.24 $3.49 - $3.66 $4.20 - $4.45 Expected Dividend Yield 4.00% 3.53% 2.22% Expected Volatility 22.45 % - 29.86% 30.71 % - 31.04% 31.11 % - 31.12% Risk-Free Interest Rate 1.65 % - 1.74% 1.85 % - 1.90% 1.19 % - 1.74% 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, 2015, 2014 and 2013 and the changes therein during the years then ended. Number of Weighted Unvested at December 31, 2012 310,661 $ 3.36 Granted 255,650 4.20 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 $ 3.90 Granted 130,500 3.21 Vested (112,661 ) 3.82 Forfeited / Cancelled (20,980 ) 3.84 Unvested at December 31, 2015 366,362 $ 3.68 |
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, 2015, 2014 and 2013 and changes therein during the years then ended. Number of Weighted Unvested at December 31, 2012 130,557 $ 12.41 Granted 122,450 17.00 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 Granted 51,755 16.31 Vested (56,154 ) 14.08 Forfeited / Cancelled (7,150 ) 15.51 Unvested at December 31, 2015 177,073 $ 16.04 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 2014 and 2013 are as follows: December 31, 2015 2014 2013 (In thousands) Federal: Current $ 4,213 $ 1,534 $ 3,330 Deferred (70 ) 1,876 (1,083 ) 4,143 3,410 2,247 State: Current 112 20 — Deferred (190 ) (12 ) 16 (78 ) 8 16 $ 4,065 $ 3,418 $ 2,263 |
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, 2015 2014 2013 (In thousands) Federal income tax at statutory rate of 34% $ 4,628 $ 3,948 $ 2,651 Tax exempt interest, net (280 ) (295 ) (233 ) Bank-owned life insurance (225 ) (163 ) (160 ) ESOP compensation expense 167 158 167 Merger related expenses 79 — — Other, net 38 19 14 Dividends received from equity method investments (61 ) (61 ) (98 ) Dividends paid on benefit plans (229 ) (192 ) (89 ) State taxes, net 123 (140 ) (20 ) (Decrease) increase in valuation allowance (175 ) 144 31 Total Provision $ 4,065 $ 3,418 $ 2,263 Effective tax rate 29.87 % 29.44 % 29.03 % |
Schedule of components of net deferred tax asset | The net deferred tax asset consisted of the following components as of December 31, 2015 and 2014 : December 31, 2015 2014 (In thousands) Deferred tax assets: Allowance for loan losses, net $ 3,743 $ 3,779 Provision for loss on assets acquired through foreclosure 133 100 Nonaccrual interest 42 89 Equity incentive plans 1,089 1,398 Accrued expenses 572 508 Loan origination fees and costs, net 102 — Merger related expenses 64 — Deferred lease liability 2 27 State net operating loss carryforward 82 65 Unrealized losses on securities available-for-sale 248 — 6,077 5,966 Valuation allowance (36 ) (211 ) 6,041 5,755 Deferred tax liabilities: Prepaid expense deduction 86 260 Mortgage servicing rights 37 39 Loan origination costs — 25 Deferrable earnings on investments 515 478 Depreciation of premises and equipment 261 319 Unrealized gains on securities available-for-sale — 73 899 1,194 Net Deferred Tax Asset $ 5,142 $ 4,561 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 is as follows: December 31, 2015 2014 (In thousands) Commitments to grant loans $ 3,327 $ 43,853 Unfunded commitments under lines of credit 151,307 123,459 Standby letters of credit 14,366 17,324 Commercial letters of credit 495 413 $ 169,495 $ 185,049 |
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, 2015 is as follows (in thousands): Year Amount 2016 $ 1,734 2017 1,496 2018 1,333 2019 1,222 2020 1,187 Thereafter 2,015 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of capital amounts and ratios | Actual For Capital To be Well Capitalized under Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2015 (Basel III) Common Equity Tier 1 Capital Ratio (to risk-weighted assets) Bancorp $ 177,349 19.50 % $ 40,925 4.5 % $ 59,114 6.5 % Bank 151,676 16.69 40,887 4.5 59,060 6.5 Tier 1 Capital Ratio (to risk-weighted assets) Bancorp 177,349 19.50 54,567 6.0 72,755 8.0 Bank 151,676 16.69 54,517 6.0 72,689 8.0 Total Capital Ratio (to risk-weighted assets) Bancorp 186,291 20.48 72,755 8.0 90,944 10.0 Bank 160,618 17.68 72,689 8.0 90,861 10.0 Tier 1 Leverage Ratio (to adjusted average assets) Bancorp 177,349 15.85 44,755 4.0 55,944 5.0 Bank 151,676 13.52 44,875 4.0 56,094 5.0 December 31, 2014 Tier 1 Capital (to risk-weighted assets) Bancorp $ 175,795 22.41 % $ 31,379 4.0 % $ 47,069 6.0 % Bank 148,781 18.97 31,371 4.0 47,057 6.0 Total Risk-Based Capital (to risk-weighted assets) Bancorp 183,993 23.45 62,758 8.0 78,448 10.0 Bank 156,976 20.02 62,743 8.0 78,428 10.0 Tier 1 Capital (to adjusted assets) Bancorp 175,795 16.58 42,420 4.0 53,026 5.0 Bank 148,781 13.99 42,551 4.0 53,188 5.0 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | The estimated fair values of the Company’s financial instruments at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 Fair Value Carrying Estimated Carrying Estimated (In thousands) Financial assets: Cash and cash equivalents Level 1 $ 7,798 $ 7,798 $ 17,213 $ 17,213 Investment securities available-for-sale Level 2 139,751 139,751 134,037 134,037 Investment securities held-to-maturity Level 2 150,190 149,850 170,172 170,854 Loans receivable, net Level 3 767,683 768,516 724,326 732,142 FHLB stock NA 6,734 NA 6,015 NA Accrued interest receivable Level 2, 3 3,145 3,145 3,147 3,147 Mortgage servicing rights Level 3 104 104 111 111 Financial liabilities: Savings and club accounts Level 2 142,966 142,966 129,893 129,893 Demand, NOW and money market deposits Level 2 361,490 361,490 325,010 325,010 Brokered deposits Level 2 78,481 78,219 70,817 70,600 Certificates of deposit Level 2 182,037 181,422 186,189 186,154 Short-term borrowings Level 2 38,496 38,496 50,000 50,000 FHLB advances Level 2 110,000 111,985 120,000 123,189 Other borrowed funds Level 2 30,000 31,692 30,000 32,017 Accrued interest payable Level 2 319 319 311 311 Derivative contracts Level 2, 3 154 154 174 174 |
Schedule of fair value measurements on a recurring basis | The following measures were made on a recurring basis as of December 31, 2015 and 2014 . Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Other Significant Other As of Description December 31, 2015 (Level 1) (Level 2) (Level 3) (In thousands) Available-for-Sale Securities: Obligations of U.S. government agencies $ 299 $ — $ 299 $ — Corporate securities 17,541 — 17,541 — Agency residential mortgage related securities 121,911 — 121,911 — Loans (1) 2,315 — — 2,315 Derivative contracts (1) (154 ) — (148 ) (6 ) Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Other Significant Other As of Description December 31, 2014 (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 ) (1) Such financial instruments are recorded at fair value as further described in Note 5 . |
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 Balance (Level 1) (Level 2) (Level 3) December 31, 2015 (In thousands) Loans $ 1,239 $ — $ — $ 1,239 Mortgage servicing rights 104 — — 104 Other real estate owned 2,623 — — 2,623 Total $ 3,966 $ — $ — $ 3,966 December 31, 2014 Loans $ 1,654 $ — $ — $ 1,654 Mortgage servicing rights 111 — — 111 Other real estate owned 2,814 — — 2,814 Total $ 4,579 $ — $ — $ 4,579 |
Rollforward of Level 3 Fair Value Financial Instruments | The following tables include a roll forward of the financial instruments which fair value is determined on a recurring basis using Significant Other Unobservable Inputs (Level 3) for the periods from December 31, 2013 to December 31, 2015 . Private Label Commercial Mortgage Related Securities Derivative Contracts Financial Assets Acquired from Debtors Loans Total (In thousands) Beginning 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 ) (Decrease) increase in value (2 ) 4 — 28 30 Ending balance, December 31, 2014 $ — $ (12 ) $ — $ 2,451 $ 2,439 Purchases/additions — (2 ) — — (2 ) Sales — — — — — Payments received — — — (120 ) (120 ) Increase (decrease) in value — 8 — (16 ) (8 ) Ending balance, December 31, 2015 $ — $ (6 ) $ — $ 2,315 $ 2,309 |
PARENT COMPANY ONLY FINANCIAL40
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed balance sheet | CONDENSED BALANCE SHEET December 31, 2015 2014 (In thousands) ASSETS Cash and due from banks $ 1,101 $ 290 Interest-earning deposits with banks 19,051 19,994 Total cash and cash equivalents 20,152 20,284 Investment in subsidiary 151,242 148,897 Due from subsidiary, net — 1,020 ESOP loans 4,903 5,525 Deferred Tax Asset 62 — Other assets 1,088 261 Total Assets 177,447 175,987 LIABILITIES AND STOCKHOLDERS' EQUITY Due to subsidiary, net 4 — Other liabilities 529 76 Total Liabilities 533 76 Stockholders' Equity 176,914 175,911 Total Liabilities and Stockholders' Equity $ 177,447 $ 175,987 |
Condensed statements of operations | CONDENSED STATEMENTS OF OPERATIONS Years Ended December 31, 2015 2014 2013 (In thousands) INCOME Interest on deposits with banks $ 31 $ 37 $ 37 Interest on ESOP loans 327 365 400 Total Income 358 402 437 EXPENSES Other expenses 1,456 906 996 Total Expenses 1,456 906 996 Loss before income tax benefit and equity in undistributed net earnings of subsidiary (1,098 ) (504 ) (559 ) Income tax benefit (292 ) (171 ) (280 ) Loss before equity in undistributed net earnings of subsidiary (806 ) (333 ) (279 ) Equity in undistributed net earnings of subsidiary 10,352 8,528 5,813 Net Income $ 9,546 $ 8,195 $ 5,534 |
Condensed statements of cash flows | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2015 2014 2013 (In thousands) Cash Flows From Operating Activities Net income $ 9,546 $ 8,195 $ 5,534 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiary (10,352 ) (8,528 ) (5,813 ) Increase in deferred tax asset (62 ) — — Decrease (increase) in due from subsidiary, net 1,024 (132 ) (907 ) Excess tax benefit from exercise of stock options and vesting of restricted stock (829 ) (86 ) (59 ) Decrease (increase) in other assets 2 (155 ) 588 Increase (decrease) in other liabilities 453 (34 ) (2 ) Net Cash Used in Operating Activities (218 ) (740 ) (659 ) Cash Flows from Investing Activities Loan payment received on ESOP loans 622 584 550 Cash dividends received from subsidiary 8,527 5,813 — Net Cash Provided by Investing Activities 9,149 6,397 550 Cash Flows from Financing Activities Purchase of treasury stock (4,770 ) (6,262 ) (3,703 ) Excess tax benefit from exercise of stock options and vesting of restricted stock 829 86 59 Receipts from subsidiary related to equity compensation activity 1,468 1,248 3,316 Common stock issued for exercise of stock options 1,015 439 106 Cash dividends paid (7,605 ) (6,917 ) (3,243 ) Net Cash Used in Financing Activities (9,063 ) (11,406 ) (3,465 ) Net Decrease in Cash and Cash Equivalents (132 ) (5,749 ) (3,574 ) Cash and Cash Equivalents—Beginning 20,284 26,033 29,607 Cash and Cash Equivalents—Ending $ 20,152 $ 20,284 $ 26,033 |
QUARTERLY FINANCIAL DATA (UNA41
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data (unaudited) | Three Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014 (Dollars in thousands, except per share data) Interest income $ 9,953 $ 9,906 $ 10,090 $ 10,124 $ 9,840 $ 10,153 $ 10,078 $ 10,058 Interest expense 1,563 1,505 1,437 1,452 1,606 1,635 1,653 1,741 Net interest income 8,390 8,401 8,653 8,672 8,234 8,518 8,425 8,317 Provision (Credit) for loan losses 100 (300 ) (1,267 ) 472 350 1,493 100 — Net interest income after provision for loan losses 8,290 8,701 9,920 8,200 7,884 7,025 8,325 8,317 Noninterest income 745 721 696 571 678 642 514 459 Noninterest expense 6,387 6,058 6,023 5,765 5,621 5,198 5,419 5,993 Income before taxes 2,648 3,364 4,593 3,006 2,941 2,469 3,420 2,783 Income tax provision 865 1,036 1,437 727 833 653 1,105 827 Net Income $ 1,783 $ 2,328 $ 3,156 $ 2,279 $ 2,108 $ 1,816 $ 2,315 $ 1,956 Per Common Share Data Weighted average common shares—basic 10,984,837 10,918,909 10,938,705 11,027,566 11,127,377 11,287,884 11,291,452 11,294,883 Weighted average common shares—diluted 11,216,635 11,148,260 11,176,780 11,267,666 11,366,427 11,523,917 11,534,163 11,555,104 Net income per share—basic $ 0.16 $ 0.21 $ 0.29 $ 0.21 $ 0.19 $ 0.16 $ 0.21 $ 0.17 Net income per share—diluted $ 0.16 $ 0.21 $ 0.28 $ 0.20 $ 0.19 $ 0.16 $ 0.20 $ 0.17 |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)branch$ / shares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014$ / shares | Jun. 30, 2014$ / shares | Mar. 31, 2014$ / shares | Dec. 31, 2015USD ($)branchloan$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013$ / shares | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Payments for (Proceeds from) Life Insurance Policies | $ 10,000 | ||||||||||
Mortgage Servicing Rights Gross | $ 175 | 175 | |||||||||
Mortgage Servicing Rights Valuation Allowance | $ 71 | $ 71 | |||||||||
Net income per share—diluted | $ / shares | $ 0.16 | $ 0.21 | $ 0.28 | $ 0.20 | $ 0.19 | $ 0.16 | $ 0.20 | $ 0.17 | $ 0.85 | $ 0.71 | $ 0.48 |
Mortgage servicing rights, net | $ 104 | $ 111 | $ 104 | $ 111 | |||||||
Number of Loans to ESOP | loan | 2 | ||||||||||
Number of branches | branch | 10 | 10 | |||||||||
PMA | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Ownership (as a percent) | 45.00% | 45.00% |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 31, 2015 | |
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 ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real Estate Held for Investment | ||
Carrying value of property | $ 1,620 | $ 1,620 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended |
Dec. 31, 2015 | |
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 ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
STOCK BASED COMPENSATION | |||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 0 | |
Excess tax benefits | $ 829,000 | $ 86,000 | $ 59,000 |
Stock options | |||
STOCK BASED COMPENSATION | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Expiration period | 10 years | ||
Non-performance based restricted stock | |||
STOCK BASED COMPENSATION | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Performance based restricted stock | |||
STOCK BASED COMPENSATION | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Performance based restricted stock | Fifty Percent Vest at Year Three [Member] | |||
STOCK BASED COMPENSATION | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Performance based restricted stock | Fifty Percent Vest at Year Four [Member] | |||
STOCK BASED COMPENSATION | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Performance based restricted stock | Twenty-five Percent Vest At Year Five [Member] | |||
STOCK BASED COMPENSATION | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Minimum | Performance based restricted stock | |||
STOCK BASED COMPENSATION | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
Maximum [Member] | Performance based restricted stock | |||
STOCK BASED COMPENSATION | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 150.00% |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Earnings per share: | ||||||||||||
Net income | $ 1,783 | $ 2,328 | $ 3,156 | $ 2,279 | $ 2,108 | $ 1,816 | $ 2,315 | $ 1,956 | $ 9,546 | $ 8,195 | $ 5,534 | |
Weighted-average common shares outstanding (in shares) | [1] | 11,651,909 | 12,054,779 | 12,199,774 | ||||||||
Average common stock acquired by stock benefit plans: | ||||||||||||
ESOP shares unallocated | (455,850) | (521,371) | (586,424) | |||||||||
Shares purchased by trust | (228,806) | (283,366) | (324,207) | |||||||||
Weighted-average common shares used to calculate basic earnings per share (in shares) | 10,984,837 | 10,918,909 | 10,938,705 | 11,027,566 | 11,127,377 | 11,287,884 | 11,291,452 | 11,294,883 | 10,967,253 | 11,250,042 | 11,289,143 | |
Dilutive effect of: | ||||||||||||
Restricted stock awards | 39,917 | 51,810 | 42,582 | |||||||||
Stock option awards | 198,140 | 197,209 | 198,429 | |||||||||
Weighted average common share-diluted (in shares) | 11,216,635 | 11,148,260 | 11,176,780 | 11,267,666 | 11,366,427 | 11,523,917 | 11,534,163 | 11,555,104 | 11,205,310 | 11,499,061 | 11,530,154 | |
Net income per share—basic | $ 0.16 | $ 0.21 | $ 0.29 | $ 0.21 | $ 0.19 | $ 0.16 | $ 0.21 | $ 0.17 | $ 0.87 | $ 0.73 | $ 0.49 | |
Net income per share—diluted | $ 0.16 | $ 0.21 | $ 0.28 | $ 0.20 | $ 0.19 | $ 0.16 | $ 0.20 | $ 0.17 | $ 0.85 | $ 0.71 | $ 0.48 | |
Outstanding common stock equivalents having no dilutive effect (in shares) | 452,330 | 1,040,123 | 1,108,329 | |||||||||
[1] | Excludes treasury stock. |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - Univest Corporation of Pennsylvania [Domain] | Dec. 08, 2015$ / sharesshares |
Business Acquisition [Line Items] | |
Number of Shares Exchanged per Common Share | shares | 0.9731 |
Business Acquisition Equity Interest Issued Or Issuable Per Share Value | $ / shares | $ 21 |
Business combination, percent of total shares that will be converted into acquirer shares. | 60.00% |
INVESTMENT AND MORTGAGE RELAT49
INVESTMENT AND MORTGAGE RELATED SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-Sale Securities: | ||
Total Amortized Cost | $ 139,121 | $ 132,282 |
Gross Unrealized Gains | 1,606 | 2,427 |
Gross Unrealized Losses | (976) | (672) |
Fair Value | 139,751 | 134,037 |
Held-to-maturity Securities: | ||
Amortized Cost | 150,190 | 170,172 |
Gross Unrealized Gains | 663 | 1,245 |
Gross Unrealized Losses | (1,003) | (563) |
Fair Value | 149,850 | 170,854 |
Available-for-sale securities: | ||
Fair Value, Less than 12 Months | 95,309 | 8,229 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (811) | (15) |
Fair Value, 12 Months or More | 7,927 | 64,502 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (165) | (657) |
Fair Value, Total | 103,236 | 72,731 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (976) | (672) |
Held-to-maturity Securities: | ||
Fair Value, Less than 12 Months | 85,004 | 25,660 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (745) | (110) |
Fair Value, 12 Months or More | 9,768 | 27,182 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (258) | (453) |
Fair Value, Total | 94,772 | 52,842 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,003) | (563) |
Temporarily Impaired Securities | ||
Fair Value, Less than 12 Months | 180,313 | 33,889 |
Unrealized Losses, Less than 12 Months | (1,556) | (125) |
Fair Value, 12 Months or More | 17,695 | 91,684 |
Unrealized Losses Plus OTTI in AOCI, 12 Months or More | (423) | (1,110) |
Fair Value, Total | 198,008 | 125,573 |
Unrealized Losses, Total | (1,979) | (1,235) |
Obligations of U.S. government agencies | ||
Available-for-Sale Securities: | ||
Total Amortized Cost | 301 | 300 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (2) | 0 |
Fair Value | 299 | 302 |
Available-for-sale securities: | ||
Fair Value, Less than 12 Months | 299 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2) | |
Fair Value, 12 Months or More | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Fair Value, Total | 299 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (2) | |
Temporarily Impaired Securities | ||
Fair Value, Less than 12 Months | 299 | |
Unrealized Losses, Less than 12 Months | (2) | |
Corporate securities | ||
Available-for-Sale Securities: | ||
Total Amortized Cost | 17,625 | 8,053 |
Gross Unrealized Gains | 9 | 33 |
Gross Unrealized Losses | (93) | 0 |
Fair Value | 17,541 | 8,086 |
Held-to-maturity Securities: | ||
Amortized Cost | 1,776 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (11) | |
Fair Value | 1,765 | |
Available-for-sale securities: | ||
Fair Value, Less than 12 Months | 15,015 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (93) | |
Fair Value, 12 Months or More | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Fair Value, Total | 15,015 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (93) | |
Held-to-maturity Securities: | ||
Fair Value, Less than 12 Months | 1,766 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (11) | |
Fair Value, 12 Months or More | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Fair Value, Total | 1,766 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (11) | |
Temporarily Impaired Securities | ||
Fair Value, Less than 12 Months | 16,800 | |
Unrealized Losses, Less than 12 Months | (104) | |
Agency residential mortgage related securities | ||
Available-for-Sale Securities: | ||
Total Amortized Cost | 121,195 | 123,929 |
Gross Unrealized Gains | 1,597 | 2,392 |
Gross Unrealized Losses | (881) | (672) |
Fair Value | 121,911 | 125,649 |
Held-to-maturity Securities: | ||
Amortized Cost | 145,892 | 167,193 |
Gross Unrealized Gains | 663 | 1,239 |
Gross Unrealized Losses | (967) | (563) |
Fair Value | 145,588 | 167,869 |
Available-for-sale securities: | ||
Fair Value, Less than 12 Months | 79,995 | 8,229 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (716) | (15) |
Fair Value, 12 Months or More | 7,927 | 64,502 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (165) | (657) |
Fair Value, Total | 87,922 | 72,731 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (881) | (672) |
Held-to-maturity Securities: | ||
Fair Value, Less than 12 Months | 80,741 | 25,660 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (709) | (110) |
Fair Value, 12 Months or More | 9,768 | 27,182 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (258) | (453) |
Fair Value, Total | 90,509 | 52,842 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (967) | (563) |
Temporarily Impaired Securities | ||
Fair Value, Less than 12 Months | 160,700 | |
Unrealized Losses, Less than 12 Months | (1,400) | |
Fair Value, 12 Months or More | 17,700 | |
Unrealized Losses Plus OTTI in AOCI, 12 Months or More | (400) | |
Private label residential mortgage related security | ||
Held-to-maturity Securities: | ||
Amortized Cost | 2,522 | 2,979 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | (25) | 0 |
Fair Value | 2,497 | $ 2,985 |
Held-to-maturity Securities: | ||
Fair Value, Less than 12 Months | 2,497 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (25) | |
Fair Value, 12 Months or More | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Fair Value, Total | 2,497 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (25) | |
Temporarily Impaired Securities | ||
Fair Value, Less than 12 Months | 2,500 | |
Unrealized Losses, Less than 12 Months | $ (25) |
INVESTMENT AND MORTGAGE RELAT50
INVESTMENT AND MORTGAGE RELATED SECURITIES (Details 2) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | Dec. 31, 2013USD ($) | |
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Number of securities sold | security | 0 | 0 | |
Temporarily Impaired Investments Continuous Unrealized Loss Position Aggregate Losses 1 | $ 1,979 | $ 1,235 | |
Fair Value, Less than 12 Months | 180,313 | 33,889 | |
Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Loss | 1,556 | 125 | |
Amortized Cost | 139,121 | 132,282 | |
Fair Value of securities impaired greater than twelve months | 17,695 | 91,684 | |
Temporarily Impaired Investments Continuous Unrealized Loss Position 12 Months or Longer Aggregate Losses | 423 | 1,110 | |
Net unrealized loss on date of transfer from available-for-sale | (1,625) | ||
Amortized Cost of Held-to-Maturity Securities excluding Transfer Loss | $ 152,081 | ||
Number of securities transferred | security | 38 | ||
Securities Transferred From Available For Sale To Held To Maturity, FV | $ 96,900 | ||
Gain (Loss) on Sale of Securities Net of Other than Temporary Impairment Loss | 0 | 0 | $ 532 |
Accretion of Transfer Loss Subsequent to Transfer for Securities Transferred from Available-for-Sale to Held-to-Maturity | (266) | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 150,190 | 170,172 | |
Transferred Securities from Available-for-Sale [Member] | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Amortized cost of transferred securities excluding transfer loss | 83,107 | ||
Net unrealized loss on date of transfer from available-for-sale | (1,625) | ||
Accretion of Transfer Loss Subsequent to Transfer for Securities Transferred from Available-for-Sale to Held-to-Maturity | (266) | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $ 81,216 | ||
Corporate securities | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Number of Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months | security | 7 | ||
Fair Value, Less than 12 Months | $ 16,800 | ||
Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Loss | 104 | ||
Amortized Cost | 17,625 | 8,053 | |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $ 1,776 | ||
Obligations of U.S. government agencies | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Number of Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months | security | 1 | ||
Fair Value, Less than 12 Months | $ 299 | ||
Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Loss | 2 | ||
Amortized Cost | $ 301 | 300 | |
Agency residential mortgage related securities | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Number of Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months | security | 78 | ||
Fair Value, Less than 12 Months | $ 160,700 | ||
Number of Mortgage Related Securities, Continuous Unrealized Loss Position, Twelve Months or Longer | security | 10 | ||
Number of Agency Residential Mortgage Related Securities | security | 97 | ||
Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Loss | $ 1,400 | ||
Amortized Cost | 121,195 | 123,929 | |
Fair Value of securities impaired greater than twelve months | 17,700 | ||
Temporarily Impaired Investments Continuous Unrealized Loss Position 12 Months or Longer Aggregate Losses | 400 | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $ 145,892 | 167,193 | |
Residential Mortgage Backed Securities [Member] | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Number of Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months | security | 1 | ||
Fair Value, Less than 12 Months | $ 2,500 | ||
Mortgage Related Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Loss | 25 | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 2,522 | $ 2,979 | |
Held-to-Maturity, Excluding Transferred Securities [Member] | |||
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $ 68,974 |
INVESTMENT AND MORTGAGE RELAT51
INVESTMENT AND MORTGAGE RELATED SECURITIES (Details 3) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | Dec. 31, 2013USD ($) | |
INVESTMENT AND MORTGAGE RELATED SECURITIES | |||
Fair Value of Investment Securities Pledged | $ 48,700 | $ 37,000 | |
Fair Value of Investment Securities Pledged for Borrowings | $ 161,700 | $ 169,700 | |
Number of Debt Securities Sold | security | 0 | 0 | |
Net investment securities gains | $ 0 | $ 0 | $ 532 |
INVESTMENT AND MORTGAGE RELAT52
INVESTMENT AND MORTGAGE RELATED SECURITIES (Details 4) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available for Sale, Amortized Cost | ||
Due in one year or less | $ 2,517 | $ 5,803 |
Due after one year through five years | 15,409 | 2,550 |
Due after five years through ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Total mortgage related securities | 121,195 | 123,929 |
Total Amortized Cost | 139,121 | 132,282 |
Available for Sale, Fair Value | ||
Due in one year or less | 2,526 | 5,818 |
Due after one year through five years | 15,314 | 2,570 |
Due after five years through ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Total mortgage related securities | 121,911 | 125,649 |
Total Fair Value | 139,751 | 134,037 |
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | 1,776 | |
Held-to-maturity Securities, Debt Maturities, Rolling Year Two Through Five, Fair Value | 1,765 | |
Held to Maturity, Amortized Cost | ||
Total mortgage related securities | 148,414 | 170,172 |
Total Amortized Cost | 150,190 | 170,172 |
Held to Maturity, Fair Value | ||
Total mortgage related securities | 148,085 | 170,854 |
Total Fair Value | 149,850 | 170,854 |
Fair Value of Investment Securities Pledged | 48,700 | 37,000 |
Fair Value of Investment Securities Pledged for Borrowings | 161,700 | 169,700 |
Fair value of investment securities used to secure derivative transactions | $ 900 | $ 1,100 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
LOANS | ||||
Total loans | $ 778,534 | $ 735,350 | ||
Deferred loan origination cost, net | (289) | (294) | ||
Allowance for loan losses | (10,562) | (10,730) | $ (11,529) | $ (11,170) |
Net loans | 767,683 | 724,326 | ||
Loans and Leases Receivable, Gross | 767,683 | 724,326 | ||
Real estate loans: | ||||
LOANS | ||||
Total loans | 568,745 | 536,570 | ||
One- to four-family | ||||
LOANS | ||||
Total loans | 90,339 | 108,208 | ||
Allowance for loan losses | (362) | (405) | (403) | (642) |
Multi-family and commercial | ||||
LOANS | ||||
Total loans | 442,612 | 388,821 | ||
Allowance for loan losses | (6,464) | (5,990) | (7,141) | (6,327) |
Construction | ||||
LOANS | ||||
Total loans | 35,794 | 39,541 | ||
Allowance for loan losses | (580) | (1,038) | (324) | (873) |
Consumer | ||||
LOANS | ||||
Total loans | 14,711 | 19,599 | ||
Allowance for loan losses | (134) | (184) | (153) | (232) |
Commercial and industrial | ||||
LOANS | ||||
Total loans | 195,078 | 179,181 | ||
Allowance for loan losses | $ (2,672) | $ (2,753) | $ (3,051) | $ (2,630) |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in allowance for loan losses | |||
Balance, beginning | $ 10,730 | $ 11,529 | $ 11,170 |
Provision for loan losses | (995) | 1,943 | 982 |
Loans charged off | (364) | (2,835) | (713) |
Recoveries | 1,191 | 93 | 90 |
Balance, ending | 10,562 | 10,730 | 11,529 |
One- to four-family | |||
Changes in allowance for loan losses | |||
Balance, beginning | 405 | 403 | 642 |
Provision for loan losses | 303 | (20) | (95) |
Loans charged off | (347) | (6) | (179) |
Recoveries | 1 | 28 | 35 |
Balance, ending | 362 | 405 | 403 |
Multi-family and commercial | |||
Changes in allowance for loan losses | |||
Balance, beginning | 5,990 | 7,141 | 6,327 |
Provision for loan losses | 425 | (357) | 1,252 |
Loans charged off | (16) | (811) | (463) |
Recoveries | 65 | 17 | 25 |
Balance, ending | 6,464 | 5,990 | 7,141 |
Construction | |||
Changes in allowance for loan losses | |||
Balance, beginning | 1,038 | 324 | 873 |
Provision for loan losses | (753) | 714 | (549) |
Loans charged off | 0 | 0 | 0 |
Recoveries | 295 | 0 | 0 |
Balance, ending | 580 | 1,038 | 324 |
Consumer | |||
Changes in allowance for loan losses | |||
Balance, beginning | 184 | 153 | 232 |
Provision for loan losses | (874) | (1) | (38) |
Loans charged off | (1) | (16) | (71) |
Recoveries | 825 | 48 | 30 |
Balance, ending | 134 | 184 | 153 |
Commercial and industrial | |||
Changes in allowance for loan losses | |||
Balance, beginning | 2,753 | 3,051 | 2,630 |
Provision for loan losses | (86) | 1,704 | 421 |
Loans charged off | 0 | (2,002) | 0 |
Recoveries | 5 | 0 | 0 |
Balance, ending | 2,672 | 2,753 | 3,051 |
Unallocated | |||
Changes in allowance for loan losses | |||
Balance, beginning | 360 | 457 | 466 |
Provision for loan losses | (10) | (97) | (9) |
Loans charged off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Balance, ending | $ 350 | $ 360 | $ 457 |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
LOANS | |||
Financing Receivable, Individually Evaluated for Impairment | $ 13,326 | $ 11,532 | |
Financing Receivable, Collectively Evaluated for Impairment | 765,208 | 723,818 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 787 | 552 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 9,775 | 10,178 | |
Principal Amount of Loans Receivable Gross | 778,534 | 735,350 | |
Changes in allowance for loan losses | |||
Balance, beginning | 10,730 | 11,529 | $ 11,170 |
Provision for loan losses | (995) | 1,943 | 982 |
Loans charged off | (364) | (2,835) | (713) |
Recoveries | 1,191 | 93 | 90 |
Balance, ending | 10,562 | 10,730 | 11,529 |
One- to four-family | |||
LOANS | |||
Financing Receivable, Individually Evaluated for Impairment | 1,460 | 2,629 | |
Financing Receivable, Collectively Evaluated for Impairment | 88,879 | 105,579 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 3 | 11 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 359 | 394 | |
Principal Amount of Loans Receivable Gross | 90,339 | 108,208 | |
Changes in allowance for loan losses | |||
Balance, beginning | 405 | 403 | 642 |
Provision for loan losses | 303 | (20) | (95) |
Loans charged off | (347) | (6) | (179) |
Recoveries | 1 | 28 | 35 |
Balance, ending | 362 | 405 | 403 |
Multi-family and commercial | |||
LOANS | |||
Financing Receivable, Individually Evaluated for Impairment | 7,111 | 5,849 | |
Financing Receivable, Collectively Evaluated for Impairment | 435,501 | 382,972 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 539 | 401 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 5,925 | 5,589 | |
Principal Amount of Loans Receivable Gross | 442,612 | 388,821 | |
Changes in allowance for loan losses | |||
Balance, beginning | 5,990 | 7,141 | 6,327 |
Provision for loan losses | 425 | (357) | 1,252 |
Loans charged off | (16) | (811) | (463) |
Recoveries | 65 | 17 | 25 |
Balance, ending | 6,464 | 5,990 | 7,141 |
Construction | |||
LOANS | |||
Financing Receivable, Individually Evaluated for Impairment | 3,866 | 2,723 | |
Financing Receivable, Collectively Evaluated for Impairment | 31,928 | 36,818 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 135 | 114 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 445 | 924 | |
Principal Amount of Loans Receivable Gross | 35,794 | 39,541 | |
Changes in allowance for loan losses | |||
Balance, beginning | 1,038 | 324 | 873 |
Provision for loan losses | (753) | 714 | (549) |
Loans charged off | 0 | 0 | 0 |
Recoveries | 295 | 0 | 0 |
Balance, ending | 580 | 1,038 | 324 |
Consumer | |||
LOANS | |||
Financing Receivable, Individually Evaluated for Impairment | 171 | 256 | |
Financing Receivable, Collectively Evaluated for Impairment | 14,540 | 19,343 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 56 | 26 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 78 | 158 | |
Principal Amount of Loans Receivable Gross | 14,711 | 19,599 | |
Changes in allowance for loan losses | |||
Balance, beginning | 184 | 153 | 232 |
Provision for loan losses | (874) | (1) | (38) |
Loans charged off | (1) | (16) | (71) |
Recoveries | 825 | 48 | 30 |
Balance, ending | 134 | 184 | 153 |
Commercial and industrial | |||
LOANS | |||
Financing Receivable, Individually Evaluated for Impairment | 718 | 75 | |
Financing Receivable, Collectively Evaluated for Impairment | 194,360 | 179,106 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 54 | 0 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2,618 | 2,753 | |
Principal Amount of Loans Receivable Gross | 195,078 | 179,181 | |
Changes in allowance for loan losses | |||
Balance, beginning | 2,753 | 3,051 | 2,630 |
Provision for loan losses | (86) | 1,704 | 421 |
Loans charged off | 0 | (2,002) | 0 |
Recoveries | 5 | 0 | 0 |
Balance, ending | 2,672 | 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 | 350 | 360 | |
Changes in allowance for loan losses | |||
Balance, beginning | 360 | 457 | 466 |
Provision for loan losses | (10) | (97) | (9) |
Loans charged off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Balance, ending | $ 350 | $ 360 | $ 457 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impaired loans by loan segment | |||
Nonaccrual Loans | $ 2,534 | $ 3,454 | |
Accruing TDRs | 6,440 | 3,624 | |
Other Impaired Loans | 4,352 | 4,454 | |
Total Impaired Loans | 13,326 | 11,532 | |
Impaired Loans with Allowance | 11,098 | 7,444 | |
Impaired Loans without Allowance | 2,228 | 4,088 | |
Average recorded investment in impaired loans | 13,900 | 12,500 | $ 15,900 |
Interest income recognized on impaired loans | 794 | 533 | $ 359 |
One- to four-family | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 583 | 1,741 | |
Accruing TDRs | 877 | 888 | |
Other Impaired Loans | 0 | 0 | |
Total Impaired Loans | 1,460 | 2,629 | |
Impaired Loans with Allowance | 117 | 137 | |
Impaired Loans without Allowance | 1,343 | 2,492 | |
Multi-family and commercial | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 1,074 | 1,395 | |
Accruing TDRs | 1,685 | 0 | |
Other Impaired Loans | 4,352 | 4,454 | |
Total Impaired Loans | 7,111 | 5,849 | |
Impaired Loans with Allowance | 6,340 | 4,502 | |
Impaired Loans without Allowance | 771 | 1,347 | |
Construction | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 0 | 0 | |
Accruing TDRs | 3,866 | 2,723 | |
Other Impaired Loans | 0 | 0 | |
Total Impaired Loans | 3,866 | 2,723 | |
Impaired Loans with Allowance | 3,866 | 2,723 | |
Impaired Loans without Allowance | 0 | 0 | |
Consumer | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 159 | 243 | |
Accruing TDRs | 12 | 13 | |
Other Impaired Loans | 0 | 0 | |
Total Impaired Loans | 171 | 256 | |
Impaired Loans with Allowance | 57 | 82 | |
Impaired Loans without Allowance | 114 | 174 | |
Commercial and industrial | |||
Impaired loans by loan segment | |||
Nonaccrual Loans | 718 | 75 | |
Accruing TDRs | 0 | 0 | |
Other Impaired Loans | 0 | 0 | |
Total Impaired Loans | 718 | 75 | |
Impaired Loans with Allowance | 718 | 0 | |
Impaired Loans without Allowance | $ 0 | $ 75 |
LOANS (Details 5)
LOANS (Details 5) | 12 Months Ended | ||
Dec. 31, 2015USD ($)loanproperty | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($) | |
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | $ 2,534,000 | $ 3,454,000 | |
Increase in interest income, if recognized | 100,000 | 200,000 | $ 600,000 |
Loans past due 90 days or more and still accruing interest | $ 0 | $ 0 | 0 |
TDRs additional disclosure | |||
Number of troubled debt restructurings, nonaccrual status | loan | 2 | 4 | |
Troubled debt restructurings excluded from accruing TDR | $ 1,100,000 | $ 1,400,000 | |
Number of Loans | loan | 2 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 1,685,000 | $ 1,885,000 | |
Post-Modification Outstanding Recorded Investment | 1,685,000 | 1,785,000 | |
Financing Receivables Modifications Subsequent Default Recorded Investment | 1,600,000 | ||
Allowance for Loan and Lease Losses, Write-offs | 364,000 | 2,835,000 | 713,000 |
Foreclosure Proceedings in Process | $ 364,000 | ||
Number of Foreclosed Properties | property | 3 | ||
Foreclosed Residential Real Estate Property | $ 122,000 | ||
One- to four-family | |||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | $ 583,000 | $ 1,741,000 | |
TDRs additional disclosure | |||
Number of troubled debt restructurings, nonaccrual status | loan | 1 | 3 | |
Troubled debt restructurings excluded from accruing TDR | $ 100,000 | $ 336,000 | |
Number of Loans | loan | 0 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 245,000 | |
Post-Modification Outstanding Recorded Investment | 0 | 245,000 | |
Allowance for Loan and Lease Losses, Write-offs | 347,000 | 6,000 | 179,000 |
Multi-family and commercial | |||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | $ 1,074,000 | $ 1,395,000 | |
TDRs additional disclosure | |||
Number of troubled debt restructurings, nonaccrual status | loan | 1 | 1 | |
Troubled debt restructurings excluded from accruing TDR | $ 1,000,000 | $ 1,100,000 | |
Number of Loans | loan | 2 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 1,685,000 | $ 1,640,000 | |
Post-Modification Outstanding Recorded Investment | $ 1,685,000 | 1,540,000 | |
Financing Receivable, Modifications, Number of Contracts Reclassified from Accruing TDR to Other Impaired Loans | loan | 1 | ||
Financing Receivable, Modifications, Reclassified from Accruing TDR to other Impaired Loans | $ 4,500,000 | ||
Allowance for Loan and Lease Losses, Write-offs | 16,000 | 811,000 | 463,000 |
Consumer | |||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | $ 159,000 | $ 243,000 | |
TDRs additional disclosure | |||
Number of Loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Allowance for Loan and Lease Losses, Write-offs | 1,000 | 16,000 | 71,000 |
Commercial and industrial | |||
Principle and Interest on loans | |||
Loans on which accrual of interest has been discontinued | $ 718,000 | $ 75,000 | |
TDRs additional disclosure | |||
Number of Loans | loan | 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 | 2,002,000 | $ 0 |
Defaulted Troubled Debt Restructurings [Member] | Multi-family and commercial | |||
TDRs additional disclosure | |||
Allowance for Loan and Lease Losses, Write-offs | 552,000 | ||
Write-offs at time of Modification | $ 100,000 |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan loss for impaired loans and general allowance by loan segment | ||||
Nonaccrual Loans, Allowance for Loan Losses | $ 232 | $ 47 | ||
Accruing TDRs, Allowance for Loan Losses | 181 | 114 | ||
Other Impaired Loans, Allowance for Loan Loss | 374 | 391 | ||
Total Impaired Loans, Allowance for Loan Losses | 787 | 552 | ||
General Allowance for Loan Losses | 9,775 | 10,178 | ||
Total | 10,562 | 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 | 3 | 11 | ||
Accruing TDRs, Allowance for Loan Losses | 0 | 0 | ||
Other Impaired Loans, Allowance for Loan Loss | 0 | 0 | ||
Total Impaired Loans, Allowance for Loan Losses | 3 | 11 | ||
General Allowance for Loan Losses | 359 | 394 | ||
Total | 362 | 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 | 119 | 10 | ||
Accruing TDRs, Allowance for Loan Losses | 46 | 0 | ||
Other Impaired Loans, Allowance for Loan Loss | 374 | 391 | ||
Total Impaired Loans, Allowance for Loan Losses | 539 | 401 | ||
General Allowance for Loan Losses | 5,925 | 5,589 | ||
Total | 6,464 | 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 | 0 | ||
Accruing TDRs, Allowance for Loan Losses | 135 | 114 | ||
Other Impaired Loans, Allowance for Loan Loss | 0 | 0 | ||
Total Impaired Loans, Allowance for Loan Losses | 135 | 114 | ||
General Allowance for Loan Losses | 445 | 924 | ||
Total | 580 | 1,038 | 324 | 873 |
Consumer | ||||
Allowance for loan loss for impaired loans and general allowance by loan segment | ||||
Nonaccrual Loans, Allowance for Loan Losses | 56 | 26 | ||
Accruing TDRs, Allowance for Loan Losses | 0 | 0 | ||
Other Impaired Loans, Allowance for Loan Loss | 0 | 0 | ||
Total Impaired Loans, Allowance for Loan Losses | 56 | 26 | ||
General Allowance for Loan Losses | 78 | 158 | ||
Total | 134 | 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 | 54 | 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 | 54 | 0 | ||
General Allowance for Loan Losses | 2,618 | 2,753 | ||
Total | 2,672 | 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 | 350 | 360 | ||
Total | $ 350 | $ 360 | $ 457 | $ 466 |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
30-59 Days Past Due | ||
Past due loans | ||
Loans past due | $ 1,021 | $ 113 |
30-59 Days Past Due | One- to four-family | ||
Past due loans | ||
Loans past due | 865 | 0 |
30-59 Days Past Due | Multi-family and commercial | ||
Past due loans | ||
Loans past due | 0 | 0 |
30-59 Days Past Due | Construction | ||
Past due loans | ||
Loans past due | 0 | 0 |
30-59 Days Past Due | Consumer | ||
Past due loans | ||
Loans past due | 156 | 113 |
30-59 Days Past Due | Commercial and industrial | ||
Past due loans | ||
Loans past due | 0 | 0 |
60-89 Days Past Due | ||
Past due loans | ||
Loans past due | 685 | 145 |
60-89 Days Past Due | One- to four-family | ||
Past due loans | ||
Loans past due | 685 | 145 |
60-89 Days Past Due | Multi-family and commercial | ||
Past due loans | ||
Loans past due | 0 | 0 |
60-89 Days Past Due | Construction | ||
Past due loans | ||
Loans past due | 0 | 0 |
60-89 Days Past Due | Consumer | ||
Past due loans | ||
Loans past due | 0 | 0 |
60-89 Days Past Due | Commercial and industrial | ||
Past due loans | ||
Loans past due | $ 0 | $ 0 |
LOANS (Details 8)
LOANS (Details 8) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)loanweaknessclassification | Dec. 31, 2014USD ($)loan | |
Criticized and classified loans by segment | ||
Number of Loans | loan | 2 | 2 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,685 | $ 1,885 |
Number of primary classification for loans | classification | 6 | |
Number of classifications for problem loans | classification | 3 | |
Minimum number of defined weaknesses for substandard loans | weakness | 1 | |
Total loans | $ 778,534 | 735,350 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,685 | $ 1,785 |
One- to four-family | ||
Criticized and classified loans by segment | ||
Number of Loans | loan | 0 | 1 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 245 |
Total loans | 90,339 | 108,208 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 245 |
Multi-family and commercial | ||
Criticized and classified loans by segment | ||
Number of Loans | loan | 2 | 1 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,685 | $ 1,640 |
Total loans | 442,612 | 388,821 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,685 | $ 1,540 |
Construction | ||
Criticized and classified loans by segment | ||
Number of Loans | loan | 0 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 0 |
Total loans | 35,794 | 39,541 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 0 |
Consumer | ||
Criticized and classified loans by segment | ||
Number of Loans | loan | 0 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 0 |
Total loans | 14,711 | 19,599 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 0 |
Commercial and industrial | ||
Criticized and classified loans by segment | ||
Number of Loans | loan | 0 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 0 |
Total loans | 195,078 | 179,181 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 0 |
Pass and Pass watch | ||
Criticized and classified loans by segment | ||
Total loans | 755,124 | 712,330 |
Pass and Pass watch | One- to four-family | ||
Criticized and classified loans by segment | ||
Total loans | 89,756 | 106,467 |
Pass and Pass watch | Multi-family and commercial | ||
Criticized and classified loans by segment | ||
Total loans | 427,393 | 376,134 |
Pass and Pass watch | Construction | ||
Criticized and classified loans by segment | ||
Total loans | 31,927 | 36,229 |
Pass and Pass watch | Consumer | ||
Criticized and classified loans by segment | ||
Total loans | 14,552 | 19,357 |
Pass and Pass watch | Commercial and industrial | ||
Criticized and classified loans by segment | ||
Total loans | 191,496 | 174,143 |
Special mention loans | ||
Criticized and classified loans by segment | ||
Total loans | 15,757 | 14,141 |
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 | 13,958 | 8,406 |
Special mention loans | Construction | ||
Criticized and classified loans by segment | ||
Total loans | 0 | 2,723 |
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 | 1,799 | 3,012 |
Substandard loans | ||
Criticized and classified loans by segment | ||
Total loans | 7,653 | 8,879 |
Substandard loans | One- to four-family | ||
Criticized and classified loans by segment | ||
Total loans | 583 | 1,741 |
Substandard loans | Multi-family and commercial | ||
Criticized and classified loans by segment | ||
Total loans | 1,261 | 4,281 |
Substandard loans | Construction | ||
Criticized and classified loans by segment | ||
Total loans | 3,867 | 589 |
Substandard loans | Consumer | ||
Criticized and classified loans by segment | ||
Total loans | 159 | 242 |
Substandard loans | Commercial and industrial | ||
Criticized and classified loans by segment | ||
Total loans | 1,783 | 2,026 |
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) | Oct. 12, 2011 | Nov. 03, 2006 | Dec. 31, 2015USD ($)transaction | Dec. 31, 2014USD ($)transaction |
Interest rate swap maturing in April 2022 | ||||
Derivative | ||||
Notional amount, interest rate swap | $ 713,000 | |||
Fixed rate loan term | 15 years | |||
Interest rate on loans receivable | 7.43% | |||
Variable interest rate basis | one-month LIBOR | |||
Fixed interest rate to be paid under hedge (as a percent) | 7.43% | |||
Margin added to derivative interest rate (as a percent) | 2.24% | |||
Fair value loss position on interest rate swap derivative | 92,000 | $ 116,000 | ||
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% | |||
Variable interest rate basis | one-month LIBOR | |||
Fixed interest rate to be paid under hedge (as a percent) | 5.83% | |||
Margin added to derivative interest rate (as a percent) | 3.50% | |||
Fair value loss position on interest rate swap derivative | 56,000 | 46,000 | ||
Hedge ineffectiveness, income | $ 2,000 | $ 16,000 | ||
Credit Derivatives (Interest Rate Swap Underlyings) | ||||
Derivative | ||||
Number of derivative transactions | transaction | 4 | 4 | ||
Notional amount of credit swap derivative (protection sold) | $ 12,200,000 | $ 12,600,000 | ||
Remaining maturity period, minimum | 4 years | 5 years | ||
Remaining maturity period, maximum | 7 years | 8 years | ||
Fair value of swap asset (liability) | $ 53,000 | $ 91,000 | ||
Recognized income | 5,000 | 8,000 | ||
Derivative liability | $ 6,000 | $ 10,000 | ||
Credit Derivatives (Foreign Currency Swap Underlyings) | ||||
Derivative | ||||
Number of derivative transactions | transaction | 0 | 6 | ||
Notional amount of credit swap derivative (protection sold) | $ 366,000 | |||
Remaining maturity period, minimum | 1 month | |||
Remaining maturity period, maximum | 4 months | |||
Fair value of swap asset (liability) | $ 44,000 | |||
Recognized income | $ 6,000 | 12,000 | ||
Derivative liability | $ 2,000 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | $ 21,178 | $ 22,130 |
Less: accumulated depreciation | (12,148) | (12,712) |
Premises and equipment, net | 9,030 | 9,418 |
Land | ||
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | 3,207 | 3,207 |
Buildings | ||
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | 13,962 | 13,917 |
Leasehold improvements | ||
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | 162 | 161 |
Furniture, fixtures and equipment | ||
PREMISES AND EQUIPMENT | ||
Premises and equipment, gross | $ 3,847 | $ 4,845 |
PREMISES AND EQUIPMENT (Detai63
PREMISES AND EQUIPMENT (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating leases | |||
Rental expenses | $ 389 | $ 401 | $ 409 |
Minimum future rental payments under non-cancelable leases | |||
2,014 | 36 | ||
2,015 | 0 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
Office rent | |||
Operating leases | |||
Rental expenses | 388 | 399 | 407 |
Equipment lease | |||
Operating leases | |||
Rental expenses | $ 1 | $ 2 | $ 2 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Weighted Average Interest Rate | ||
NOW accounts | 0.20% | 0.21% |
Money market accounts | 0.28% | 0.22% |
Savings and club accounts | 0.45% | 0.37% |
Brokered deposits | 0.76% | 0.73% |
Certificates of deposit | 0.88% | 0.87% |
Deposits | 0.43% | 0.42% |
Deposits | ||
Noninterest-bearing demand accounts | $ 170,327 | $ 168,791 |
NOW accounts | 97,838 | 82,417 |
Money market accounts | 93,325 | 73,802 |
Savings and club accounts | 142,966 | 129,893 |
Brokered deposits | 78,481 | 70,817 |
Certificates of deposit | 182,037 | 186,189 |
Total deposits amount | $ 764,974 | $ 711,909 |
DEPOSITS (Details 2)
DEPOSITS (Details 2) $ in Thousands | Dec. 31, 2015USD ($) |
Maturity of deposits | |
2,014 | $ 135,634 |
2,015 | 72,354 |
2,016 | 31,116 |
2,017 | 12,570 |
2,018 | 5,252 |
Thereafter | 3,592 |
Total | 260,518 |
Certificates of deposit | |
Maturity of deposits | |
2,014 | 79,562 |
2,015 | 61,122 |
2,016 | 24,917 |
2,017 | 7,592 |
2,018 | 5,252 |
Thereafter | 3,592 |
Total | 182,037 |
Brokered deposits | |
Maturity of deposits | |
2,014 | 56,072 |
2,015 | 11,232 |
2,016 | 6,199 |
2,017 | 4,978 |
2,018 | 0 |
Thereafter | 0 |
Total | $ 78,481 |
DEPOSITS (Details 3)
DEPOSITS (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest expense on deposits | |||
NOW accounts | $ 190 | $ 183 | $ 172 |
Money market accounts | 206 | 202 | 172 |
Savings and club accounts | 501 | 275 | 141 |
Brokered deposits | 525 | 450 | 391 |
Certificates of deposit | 1,578 | 2,106 | 3,468 |
Interest expense on deposits, total | 3,000 | 3,216 | $ 4,344 |
Certificates of deposit with a minimum denomination of $100,000 | |||
Time Deposits, More than $250,000 | $ 7,500 | $ 4,700 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 05, 2015 | Dec. 31, 2014 | |
Borrowings | |||
Balance at End of Year | $ 110,000 | $ 120,000 | |
Balance at End of Year | 38,496 | 50,000 | |
Other borrowed funds | 30,000 | $ 25,000 | 30,000 |
Security Owned and Pledged as Collateral, Fair Value | 161,700 | 169,700 | |
FHLB stock | 6,734 | $ 6,015 | |
0.60% borrowing, due March 2016 | |||
Borrowings | |||
Balance at End of Year | 10,000 | ||
0.62% borrowing, due March 2016 | |||
Borrowings | |||
Balance at End of Year | 10,000 | ||
0.75% borrowing, due September 2016 | |||
Borrowings | |||
Balance at End of Year | 5,000 | ||
1.04% borrowing, due September 2016 | |||
Borrowings | |||
Balance at End of Year | 10,000 | ||
0.94% borrowing, due June 2017 | |||
Borrowings | |||
Balance at End of Year | 5,000 | ||
Borrowings 0.92 Percent Due July 2017 [Member] | |||
Borrowings | |||
Balance at End of Year | 10,000 | ||
3.62% borrowing, due November 2017 | |||
Borrowings | |||
Balance at End of Year | $ 15,000 | ||
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 | ||
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 | ||
Reference rate, description | LIBOR | ||
Interest rate added to reference rate (as a percent) | 0.11% | ||
Borrowings 1.32 Percent Due July 2018 [Member] | |||
Borrowings | |||
Balance at End of Year | $ 10,000 | ||
FHLB of Pittsburgh | |||
Borrowings | |||
Balance at End of Year | 110,000 | ||
Maximum borrowing capacity | $ 478,800 | ||
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 | $ 2,500 | ||
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 | $ 12,500 | ||
Federal Reserve Bank of Philadelphia | |||
Borrowings | |||
Maximum borrowing capacity | 59,900 | ||
Security Owned and Pledged as Collateral, Fair Value | 59,900 | ||
Other Borrowings 1-month LIBOR plus 2.03 Percent Due December 2018 [Member] [Domain] | |||
Borrowings | |||
Other borrowed funds | $ 5,000 | ||
Reference rate, description | 1-Month Libor | ||
Interest rate added to reference rate (as a percent) | 2.03% | ||
Other Borrowings 1-month LIBOR plus 1.89 Percent DUe September 2019 [Member] [Domain] | |||
Borrowings | |||
Other borrowed funds | $ 10,000 | ||
Reference rate, description | 1-Month Libor | ||
Interest rate added to reference rate (as a percent) | 1.89% | ||
Other Borrowings 1-month LIBOR plus 1.56 Percent Due September 2020 [Domain] | |||
Borrowings | |||
Other borrowed funds | $ 5,000 | ||
Reference rate, description | 1-Month Libor | ||
Interest rate added to reference rate (as a percent) | 1.56% | ||
Other Borrowings 1-month LIBOR plus 1.58 Percent Due November 2020 [Domain] | |||
Borrowings | |||
Other borrowed funds | $ 5,000 | ||
Reference rate, description | 1-Month Libor | ||
Interest rate added to reference rate (as a percent) | 1.58% | ||
Federal Home Loan Bank Advances Maturing in Less than One Year [Member] | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | ||
Federal Home Loan Bank Advances Maturing in One to Two Years [Member] | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.81% | ||
Federal Home Loan Bank Advances Maturing in Two to Three Years [Member] | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.32% | ||
FHLB of Pittsburgh | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.02% | 1.80% | |
Maximum Amount Outstanding during the period | $ 120,000 | $ 150,000 | |
Average Amount Outstanding during the period | $ 110,323 | $ 143,980 | |
Interest rate (as a percent) | 1.99% | 1.59% | |
Loans pledged as collateral | $ 606,600 | ||
Maturity of FHLB advances | |||
2,015 | 35,000 | ||
2,016 | 65,000 | ||
2,017 | 10,000 | ||
Total | $ 110,000 | ||
FHLB of Pittsburgh | Minimum | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.60% | ||
FHLB of Pittsburgh | Maximum | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.87% | ||
FHLB of Pittsburgh | 0.60% borrowing, due March 2016 | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.60% | ||
FHLB of Pittsburgh | 0.62% borrowing, due March 2016 | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.62% | ||
FHLB of Pittsburgh | 0.75% borrowing, due September 2016 | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | ||
FHLB of Pittsburgh | 1.04% borrowing, due September 2016 | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.04% | ||
FHLB of Pittsburgh | 0.94% borrowing, due June 2017 | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.94% | ||
FHLB of Pittsburgh | Borrowings 0.92 Percent Due July 2017 [Member] | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.92% | ||
FHLB of Pittsburgh | 3.62% borrowing, due November 2017 | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.62% | ||
FHLB of Pittsburgh | 3.87% borrowing, due November 2017 | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.87% | ||
FHLB of Pittsburgh | 2.83% borrowing, due on December 2017 | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.83% | ||
FHLB of Pittsburgh | Borrowings 1.32 Percent Due July 2018 [Member] | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.32% | ||
FHLB of Pittsburgh | FHLB of Pittsburgh | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.02% | ||
Other borrowed funds | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.37% | 3.30% | |
Maximum Amount Outstanding during the period | $ 30,000 | $ 30,000 | |
Average Amount Outstanding during the period | $ 30,000 | $ 30,000 | |
Interest rate (as a percent) | 2.22% | 3.35% | |
Short-term borrowings | |||
Borrowings | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.43% | 0.32% | |
Maximum Amount Outstanding during the period | $ 60,000 | $ 84,900 | |
Average Amount Outstanding during the period | $ 27,689 | $ 41,000 | |
Interest rate (as a percent) | 0.34% | 0.31% | |
FHLB of Pittsburgh | |||
Borrowings | |||
Security Owned and Pledged as Collateral, Fair Value | $ 65,300 |
BORROWINGS (Details 2)
BORROWINGS (Details 2) - USD ($) $ in Thousands | Jan. 05, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Borrowed Funds | |||
Fair Value of Investment Securities Pledged for Borrowings | $ 161,700 | $ 169,700 | |
Amount of other borrowings | $ 25,000 | 30,000 | 30,000 |
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 | ||
Short-term borrowings | 38,496 | $ 50,000 | |
Other Long Term Borrowings [Member] | |||
Other Borrowed Funds | |||
Fair Value of Investment Securities Pledged for Borrowings | 34,800 | ||
Other Borrowings 1-month LIBOR plus 2.03 Percent Due December 2018 [Member] [Domain] | |||
Other Borrowed Funds | |||
Amount of other borrowings | 5,000 | ||
Other Borrowings 1-month LIBOR plus 1.89 Percent DUe September 2019 [Member] [Domain] | |||
Other Borrowed Funds | |||
Amount of other borrowings | 10,000 | ||
3.15% other borrowings, due October 2018 | |||
Other Borrowed Funds | |||
Amount of other borrowings | $ 5,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | ||
Other Borrowings 1-month LIBOR plus 1.56 Percent Due September 2020 [Domain] | |||
Other Borrowed Funds | |||
Amount of other borrowings | $ 5,000 | ||
Other Borrowings 1-month LIBOR plus 1.58 Percent Due November 2020 [Domain] | |||
Other Borrowed Funds | |||
Amount of other borrowings | $ 5,000 | ||
Other Long Term Debt | |||
Other Borrowed Funds | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.37% | 3.30% | |
Other Borrowings Stated Rate before Modification [Member] | |||
Other Borrowed Funds | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.33% | ||
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 | ||
Blended weighted average interest rate (as a percent) | 0.43% | 0.00% | |
Overnight Borrowings [Member] | |||
Other Borrowed Funds | |||
Short-term borrowings | $ 38,500 | $ 35,000 | |
Blended weighted average interest rate (as a percent) | 0.31% |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) $ / shares in Units, $ in Thousands | Jun. 29, 2010$ / sharesshares | Dec. 31, 2015USD ($)transactionshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2006$ / sharesshares |
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 | $ | $ 150 | $ 143 | $ 146 | ||
ESOP | |||||
Employee Stock Ownership Plan | |||||
Number of shares purchased | 963,767 | ||||
Loans outstanding | $ | $ 4,900 | ||||
Number of stock purchase transactions | transaction | 2 | ||||
Committed-to-be-Released Shares | 0 | ||||
Shares allocated | 542,369 | ||||
Unallocated shares | 421,398 | ||||
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 | 1,100 | $ 1,100 | ||
ESOP | Initial 2006 stock offering | |||||
Employee Stock Ownership Plan | |||||
Number of shares purchased | 615,267 | ||||
Loans outstanding | $ | $ 2,600 | 3,000 | |||
Purchase price (in dollars per share) | $ / shares | $ 9.35 | ||||
Unallocated shares | 205,088 | ||||
Fair market value of unallocated shares | $ | $ 4,200 | ||||
ESOP | Mutual-to-stock conversion | |||||
Employee Stock Ownership Plan | |||||
Number of shares purchased | 348,500 | ||||
Loans outstanding | $ | $ 2,300 | $ 2,500 | |||
Purchase price (in dollars per share) | $ / shares | $ 10 | ||||
Unallocated shares | 216,310 | ||||
Fair market value of unallocated shares | $ | $ 4,400 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
May. 31, 2015 | Aug. 31, 2014 | Mar. 31, 2013 | Aug. 31, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2007 | |
STOCK BASED COMPENSATION | |||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Number Options under Share Swap | 408,879 | ||||||||
Stock based compensation expense | $ 1,500 | $ 1,200 | $ 1,100 | ||||||
Weighted Average Grant Date Fair Value | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Incremental Shares Issued | 168,721 | ||||||||
Stock options | |||||||||
STOCK BASED COMPENSATION | |||||||||
Stock based compensation expense | $ 465 | $ 437 | $ 431 | ||||||
Number of Stock Options | |||||||||
Outstanding at the beginning of the period (in shares) | 1,100,520 | 1,123,408 | 877,669 | ||||||
Granted (in shares) | 130,500 | 39,600 | 255,650 | ||||||
Exercised (in shares) | (493,586) | (39,388) | (9,811) | ||||||
Forfeited / Cancelled (in shares) | (21,880) | (23,100) | (100) | ||||||
Outstanding at the end of the period (in shares) | 715,554 | 1,100,520 | 1,123,408 | 877,669 | |||||
Exercisable at the end of the period (in shares) | 349,192 | ||||||||
Weighted Average Exercise Price | |||||||||
Outstanding at the beginning of the period (in dollars per share) | $ 12.96 | $ 12.81 | $ 11.57 | ||||||
Granted (in dollars per share) | 16.99 | 16.92 | 17 | ||||||
Exercised (in dollars per share) | 11.76 | 11.12 | 10.82 | ||||||
Forfeited / Cancelled (in dollars per share) | 15.45 | 15.52 | 12.94 | ||||||
Outstanding at the end of the period (in dollars per share) | 14.45 | $ 12.96 | $ 12.81 | $ 11.57 | |||||
Exercisable at the end of the period (in dollars per share) | $ 12.63 | ||||||||
Weighted Average Remaining Contractual Life | |||||||||
Outstanding during period | 6 years 1 month | 5 years 3 months | 6 years 2 months 12 days | 6 years 3 months 18 days | |||||
Exercisable at the end of the period | 4 years 5 months | ||||||||
Aggregate Intrinsic Value | |||||||||
Outstanding at the end of the period | $ 4,182 | $ 4,172 | $ 5,013 | $ 4,461 | |||||
Exercisable at the end of the period | $ 2,677 | ||||||||
Assumptions used to determine fair value of options granted | |||||||||
Expected dividend yield (as a percent) | 4.00% | 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) | 369,503 | 475,524 | 310,661 | ||||||
Granted (in shares) | 130,500 | 39,600 | 255,650 | ||||||
Vested (in shares) | (112,661) | (125,521) | (90,787) | ||||||
Forfeited / Cancelled (in shares) | (20,980) | (20,100) | 0 | ||||||
Unvested at the end of the period (in shares) | 366,362 | 369,503 | 475,524 | 310,661 | |||||
Weighted Average Grant Date Fair Value, Unvested | |||||||||
Unvested at the beginning of the period (in dollars per share) | $ 3.90 | $ 3.85 | $ 3.36 | ||||||
Granted (in dollars per share) | 3.21 | 3.65 | 4.20 | ||||||
Vested (in dollars per share) | 3.82 | 3.65 | 3.16 | ||||||
Forfeited / Cancelled (in dollars per share) | 3.84 | 3.91 | 0 | ||||||
Unvested at the end of the period (in dollars per share) | $ 3.68 | $ 3.90 | $ 3.85 | $ 3.36 | |||||
Compensation cost not yet recognized, nonvested awards | |||||||||
Expected future compensation expense, non-vested options | $ 1,000 | ||||||||
Weighted average period | 2 years 9 months | ||||||||
Weighted Average Grant Date Fair Value | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||
Stock options | Minimum | |||||||||
Assumptions used to determine fair value of options granted | |||||||||
Expected volatility (as a percent) | 22.45% | 30.71% | 31.11% | ||||||
Risk-free interest rate (as a percent) | 1.65% | 1.85% | 1.19% | ||||||
Weighted Average Grant Date Fair Value, Unvested | |||||||||
Granted (in dollars per share) | $ 2.24 | $ 3.49 | $ 4.20 | ||||||
Stock options | Maximum | |||||||||
Assumptions used to determine fair value of options granted | |||||||||
Expected volatility (as a percent) | 29.86% | 31.04% | 31.12% | ||||||
Risk-free interest rate (as a percent) | 1.74% | 1.90% | 1.74% | ||||||
Weighted Average Grant Date Fair Value, Unvested | |||||||||
Granted (in dollars per share) | $ 3.24 | $ 3.66 | $ 4.45 | ||||||
Restricted stock | |||||||||
STOCK BASED COMPENSATION | |||||||||
Stock based compensation expense | $ 1,000 | $ 812 | $ 693 | ||||||
Compensation cost not yet recognized, nonvested awards | |||||||||
Weighted average period | 2 years 8 months | ||||||||
Number of Restricted Shares | |||||||||
Unvested at the beginning of the period (in shares) | 188,622 | 225,932 | 130,557 | ||||||
Granted (in shares) | 51,755 | 18,865 | 122,450 | ||||||
Vested (in shares) | (56,154) | (47,525) | (27,075) | ||||||
Forfeited / Cancelled (in shares) | (7,150) | (8,650) | 0 | ||||||
Unvested at the end of the period (in shares) | 177,073 | 188,622 | 225,932 | 130,557 | |||||
Weighted Average Grant Date Fair Value | |||||||||
Unvested at the beginning of the period (in dollars per share) | $ 15.36 | $ 14.98 | $ 12.41 | ||||||
Granted (in dollars per share) | 16.31 | 15.89 | 17 | ||||||
Vested (in dollars per share) | 14.08 | 13.76 | 11.77 | ||||||
Forfeited / Cancelled (in dollars per share) | 15.51 | 15.32 | 0 | ||||||
Unvested at the end of the period (in dollars per share) | $ 16.04 | $ 15.36 | $ 14.98 | $ 12.41 | |||||
Expected future compensation expense, restricted shares | $ 2,000 | ||||||||
Performance based restricted stock | |||||||||
STOCK BASED COMPENSATION | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Grants in Period | 9,055 | ||||||||
Number of Restricted Shares | |||||||||
Share Based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options Variable Payout Percentage | 142.00% | 140.00% | |||||||
Weighted Average Grant Date Fair Value | |||||||||
Granted (in dollars per share) | $ 13.11 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Metric Weight Percentage | 50.00% | ||||||||
Performance based restricted stock | Minimum | |||||||||
Weighted Average Grant Date Fair Value | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||||||||
Performance based restricted stock | Maximum | |||||||||
Weighted Average Grant Date Fair Value | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 150.00% | ||||||||
Performance based restricted stock | Executive Officer | |||||||||
Number of Restricted Shares | |||||||||
Granted (in shares) | 30,555 | 39,250 | 10,668 | 8,840 | |||||
Unvested at the end of the period (in shares) | 21,500 | ||||||||
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 | ||||||||
Twenty-five Percent Vest At Year Five [Member] | Performance based restricted stock | |||||||||
Weighted Average Grant Date Fair Value | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||
Fifty Percent Vest at Year Three [Member] | Performance based restricted stock | |||||||||
Weighted Average Grant Date Fair Value | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||||||
Twenty-five Percent Vest at Year Four [Member] | Performance based restricted stock | |||||||||
Weighted Average Grant Date Fair Value | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||
Fifty Percent Vest at Measurement Date [Member] | Performance based restricted stock | |||||||||
Weighted Average Grant Date Fair Value | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||||||
Fifty Percent Vest at Year Four [Member] | Performance based restricted stock | |||||||||
Weighted Average Grant Date Fair Value | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of income tax expense (benefits) | |||||||||||
Current | $ 4,213 | $ 1,534 | $ 3,330 | ||||||||
Deferred | (70) | 1,876 | (1,083) | ||||||||
Federal income tax expense (benefit) | 4,143 | 3,410 | 2,247 | ||||||||
Current | 112 | 20 | 0 | ||||||||
Deferred | (190) | (12) | 16 | ||||||||
State income tax expense (benefit) | (78) | 8 | 16 | ||||||||
Income tax expense (benefit) | $ 865 | $ 1,036 | $ 1,437 | $ 727 | $ 833 | $ 653 | $ 1,105 | $ 827 | $ 4,065 | $ 3,418 | $ 2,263 |
Statutory rate (as a percent) | 34.00% | 34.00% | 34.00% | ||||||||
Income tax rate reconciliation | |||||||||||
Federal income tax at statutory rate | $ 4,628 | $ 3,948 | $ 2,651 | ||||||||
Tax exempt interest, net | (280) | (295) | (233) | ||||||||
Bank-owned life insurance | (225) | (163) | (160) | ||||||||
ESOP compensation expense | 167 | 158 | 167 | ||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Amount | 79 | 0 | 0 | ||||||||
Other, net | 38 | 19 | 14 | ||||||||
Dividends received from equity method investments | (61) | (61) | (98) | ||||||||
Dividends paid on benefit plans | (229) | (192) | (89) | ||||||||
State taxes, net | 123 | (140) | (20) | ||||||||
Decrease in valuation allowance | (175) | 144 | 31 | ||||||||
Income tax expense (benefit) | 865 | $ 1,036 | $ 1,437 | $ 727 | 833 | $ 653 | $ 1,105 | $ 827 | $ 4,065 | $ 3,418 | $ 2,263 |
Effective tax rate (as a percent) | 29.87% | 29.44% | 29.03% | ||||||||
Deferred tax assets: | |||||||||||
Allowance for loan losses, net | 3,743 | 3,779 | $ 3,743 | $ 3,779 | |||||||
Provision for loss on assets acquired through foreclosure | 133 | 100 | 133 | 100 | |||||||
Nonaccrual interest | 42 | 89 | 42 | 89 | |||||||
Equity incentive plans | 1,089 | 1,398 | 1,089 | 1,398 | |||||||
Accrued expenses | 572 | 508 | 572 | 508 | |||||||
Deferred Tax Assets, Tax Deferred Expense, Loan Origination Costs | 102 | 0 | 102 | 0 | |||||||
Deferred Tax Assets, Tax Deferred Expense, Merger Related Expenses | 64 | 0 | 64 | 0 | |||||||
Deferred lease liability | 2 | 27 | 2 | 27 | |||||||
State net operating loss carryforward | 82 | 65 | 82 | 65 | |||||||
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross | 248 | 0 | 248 | 0 | |||||||
Total | 6,077 | 5,966 | 6,077 | 5,966 | |||||||
Deferred Tax Assets, Valuation Allowance | (36) | (211) | (36) | (211) | |||||||
Net | 6,041 | 5,755 | 6,041 | 5,755 | |||||||
Deferred tax liability | |||||||||||
Prepaid expense deduction | 86 | 260 | 86 | 260 | |||||||
Mortgage servicing rights | 37 | 39 | 37 | 39 | |||||||
Loan origination costs | 0 | 25 | 0 | 25 | |||||||
Deferrable earnings on investments | 515 | 478 | 515 | 478 | |||||||
Depreciation of premises and equipment | 261 | 319 | 261 | 319 | |||||||
Unrealized gains on securities available-for-sale | 0 | 73 | 0 | 73 | |||||||
Deferred tax liability | 899 | 1,194 | 899 | 1,194 | |||||||
Net Deferred Tax Asset | 5,142 | 4,561 | 5,142 | 4,561 | |||||||
Other income tax disclosures | |||||||||||
State net operating loss carryforward not likely to be realized | 36 | 36 | |||||||||
Amount for which no federal income tax provision has been made | 6,000 | $ 6,000 | 6,000 | $ 6,000 | $ 6,000 | ||||||
State operating loss not likely to be recognized | (182) | (182) | |||||||||
State net operating loss | 509 | 509 | |||||||||
Fox Chase Service Corporation | State | |||||||||||
Deferred tax assets: | |||||||||||
State net operating loss carryforward | 46 | 46 | |||||||||
Other income tax disclosures | |||||||||||
State net operating loss | $ 461 | $ 461 |
COMMITMENTS AND CONTINGENCIES72
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financial instrument commitments | ||
Financial instrument commitment | $ 169,495 | $ 185,049 |
Commitments to grant loans | ||
Financial instrument commitments | ||
Financial instrument commitment | 3,327 | 43,853 |
Fixed rate commitments to grant loans | $ 18,300 | $ 6,600 |
Interest rate on fixed rate loans, minimum (as a percent) | 1.00% | 4.25% |
Interest rate on fixed rate loans, maximum (as a percent) | 5.00% | 6.00% |
Unfunded commitments under lines of credit | ||
Financial instrument commitments | ||
Financial instrument commitment | $ 151,307 | $ 123,459 |
Standby letters of credit | ||
Financial instrument commitments | ||
Financial instrument commitment | 14,366 | 17,324 |
Commercial letters of credit | ||
Financial instrument commitments | ||
Financial instrument commitment | $ 495 | $ 413 |
COMMITMENTS AND CONTINGENCIES73
COMMITMENTS AND CONTINGENCIES (Details 2) - Third-party providers $ in Thousands | Dec. 31, 2015USD ($) |
Future minimum payments contractually due | |
2,016 | $ 1,734 |
2,017 | 1,496 |
2,018 | 1,333 |
2,019 | 1,222 |
2,020 | 1,187 |
Thereafter | $ 2,015 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fox Chase Bancorp, Inc. | ||
Regulatory capital | ||
Common Equity Tier One Capital | $ 177,349 | |
Common Equity Tier One Capital to Risk- Weighted Assets | 19.50% | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 40,925 | |
Common Equity Tier One Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Common Equity Tier One Capital Required to be Well Capitalized | $ 59,114 | |
Common Equity Tier One Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | |
Total risk-based capital (to risk-weighted assets) | ||
Actual, Amount | $ 186,291 | $ 183,993 |
Actual, Ratio (as a percent) | 20.48% | 23.45% |
For Capital Adequacy Purposes, Amount | $ 72,755 | $ 62,758 |
For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 90,944 | $ 78,448 |
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 | $ 177,349 | $ 175,795 |
Actual, Ratio (as a percent) | 19.50% | 22.41% |
For Capital Adequacy Purposes, Amount | $ 54,567 | $ 31,379 |
For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 72,755 | $ 47,069 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8.00% | 6.00% |
Tier 1 capital (to adjusted assets) | ||
Actual, Amount | $ 177,349 | $ 175,795 |
Actual, Ratio (as a percent) | 15.85% | 16.58% |
For Capital Adequacy Purposes, Amount | $ 44,755 | $ 42,420 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 55,944 | $ 53,026 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |
Fox Chase Bank | ||
Regulatory capital | ||
Common Equity Tier One Capital | $ 151,676 | |
Common Equity Tier One Capital to Risk- Weighted Assets | 16.69% | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 40,887 | |
Common Equity Tier One Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Common Equity Tier One Capital Required to be Well Capitalized | $ 59,060 | |
Common Equity Tier One Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | |
Total risk-based capital (to risk-weighted assets) | ||
Actual, Amount | $ 160,618 | $ 156,976 |
Actual, Ratio (as a percent) | 17.68% | 20.02% |
For Capital Adequacy Purposes, Amount | $ 72,689 | $ 62,743 |
For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 90,861 | $ 78,428 |
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 | $ 151,676 | $ 148,781 |
Actual, Ratio (as a percent) | 16.69% | 18.97% |
For Capital Adequacy Purposes, Amount | $ 54,517 | $ 31,371 |
For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 72,689 | $ 47,057 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8.00% | 6.00% |
Tier 1 capital (to adjusted assets) | ||
Actual, Amount | $ 151,676 | $ 148,781 |
Actual, Ratio (as a percent) | 13.52% | 13.99% |
For Capital Adequacy Purposes, Amount | $ 44,875 | $ 42,551 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 56,094 | $ 53,188 |
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 ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
STOCKHOLDERS' EQUITY | |||||
Cash dividend on common share (in dollars per share) | $ 0.68 | $ 0.60 | $ 0.28 | ||
Dividend received from subsidiary | $ 8,500 | $ 5,800 | |||
Common stock repurchased (in shares) | 288,629 | 384,400 | 218,572 | ||
Common stock repurchased | $ 4,770 | $ 6,262 | $ 3,703 | ||
Common Stock | |||||
STOCKHOLDERS' EQUITY | |||||
Cash dividend on common share (in dollars per share) | $ 0.68 | $ 0.60 | |||
Common stock repurchased (in shares) | 288,629 | 384,400 | |||
Common stock repurchased | $ 44,500 |
FAIR VALUE (Details)
FAIR VALUE (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)quoteadjustmentexternal_pricing_service | Dec. 31, 2014USD ($) | |
Fair Value Disclosures [Abstract] | ||
Number of external pricing service providers | external_pricing_service | 1 | |
Number of quotes per investment security obtained | quote | 1 | |
Adjustments to the values obtained from the primary pricing service | adjustment | 0 | |
Financial assets: | ||
Investment securities available-for-sale | $ 139,751 | $ 134,037 |
Mortgage related securities | 121,911 | 125,649 |
Held to maturity securities | 149,850 | 170,854 |
Federal Home Loan Bank stock | 6,734 | 6,015 |
Accrued interest receivable | 3,145 | 3,147 |
Mortgage servicing rights | 104 | 111 |
Financial liabilities: | ||
Savings and club accounts | 142,966 | 129,893 |
Agency residential mortgage related securities | ||
Financial assets: | ||
Investment securities available-for-sale | 121,911 | 125,649 |
Held to maturity securities | 145,588 | 167,869 |
Residential Mortgage Backed Securities [Member] | ||
Financial assets: | ||
Held to maturity securities | 2,497 | 2,985 |
Carrying Amount | ||
Financial assets: | ||
Federal Home Loan Bank stock | 6,734 | 6,015 |
Carrying Amount | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 7,798 | 17,213 |
Carrying Amount | Level 2 | ||
Financial assets: | ||
Investment securities available-for-sale | 139,751 | 134,037 |
Held to maturity securities | 150,190 | 170,172 |
Financial liabilities: | ||
Savings and club accounts | 142,966 | 129,893 |
Demand, NOW and money market deposits | 361,490 | 325,010 |
Brokered deposits | 78,481 | 70,817 |
Certificates of deposit | 182,037 | 186,189 |
Short-term borrowings | 38,496 | 50,000 |
Federal Home Loan Bank advances | 110,000 | 120,000 |
Other borrowed funds | 30,000 | 30,000 |
Accrued interest payable | 319 | 311 |
Carrying Amount | Level 3 | ||
Financial assets: | ||
Loans receivable, net | 767,683 | 724,326 |
Mortgage servicing rights | 104 | 111 |
Carrying Amount | Level 2, 3 | ||
Financial assets: | ||
Accrued interest receivable | 3,145 | 3,147 |
Financial liabilities: | ||
Derivative contracts | 154 | 174 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 7,798 | 17,213 |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Investment securities available-for-sale | 139,751 | 134,037 |
Held to maturity securities | 149,850 | 170,854 |
Financial liabilities: | ||
Savings and club accounts | 142,966 | 129,893 |
Demand, NOW and money market deposits | 361,490 | 325,010 |
Brokered deposits | 78,219 | 70,600 |
Certificates of deposit | 181,422 | 186,154 |
Short-term borrowings | 38,496 | 50,000 |
Federal Home Loan Bank advances | 111,985 | 123,189 |
Other borrowed funds | 31,692 | 32,017 |
Accrued interest payable | 319 | 311 |
Estimated Fair Value | Level 3 | ||
Financial assets: | ||
Loans receivable, net | 768,516 | 732,142 |
Mortgage servicing rights | 104 | 111 |
Estimated Fair Value | Level 2, 3 | ||
Financial assets: | ||
Accrued interest receivable | 3,145 | 3,147 |
Financial liabilities: | ||
Derivative contracts | $ 154 | $ 174 |
FAIR VALUE (Details 2)
FAIR VALUE (Details 2) | 12 Months Ended | ||
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | ||
Fair value measurement | |||
Investment securities available-for-sale | $ 139,751,000 | $ 134,037,000 | |
Mortgage servicing rights | $ 104,000 | 111,000 | |
Loans | |||
Fair value measurement | |||
Number of loans | loan | 2 | ||
Significant Other Unobservable Inputs (Level 3) | Loans | |||
Fair value measurement | |||
Unrealized gain on loans | $ 137,000 | 152,000 | |
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) | 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 | [1] | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives contracts | |||
Fair value measurement | |||
Liabilities | [1] | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. government agencies | |||
Fair value measurement | |||
Investment securities available-for-sale | 299,000 | 302,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities | |||
Fair value measurement | |||
Investment securities available-for-sale | 17,541,000 | 8,086,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Agency residential mortgage related securities | |||
Fair value measurement | |||
Investment securities available-for-sale | 121,911,000 | 125,649,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Loans | |||
Fair value measurement | |||
Assets | [1] | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivatives contracts | |||
Fair value measurement | |||
Liabilities | [1] | (148,000) | (162,000) |
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) | 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 | [1] | 2,315,000 | 2,451,000 |
Recurring basis | Significant Other Unobservable Inputs (Level 3) | Derivatives contracts | |||
Fair value measurement | |||
Liabilities | [1] | (6,000) | (12,000) |
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 | 3,966,000 | 4,579,000 | |
Mortgage servicing rights | 104,000 | 111,000 | |
Non-recurring basis | Significant Other Unobservable Inputs (Level 3) | Loans | |||
Fair value measurement | |||
Assets | 1,239,000 | 1,654,000 | |
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 | 2,623,000 | 2,814,000 | |
Balance | Significant Other Observable Inputs (Level 2) | |||
Fair value measurement | |||
Investment securities available-for-sale | 139,751,000 | 134,037,000 | |
Balance | Significant Other Unobservable Inputs (Level 3) | |||
Fair value measurement | |||
Mortgage servicing rights | 104,000 | 111,000 | |
Balance | Recurring basis | Obligations of U.S. government agencies | |||
Fair value measurement | |||
Investment securities available-for-sale | 299,000 | 302,000 | |
Balance | Recurring basis | Corporate securities | |||
Fair value measurement | |||
Investment securities available-for-sale | 17,541,000 | 8,086,000 | |
Balance | Recurring basis | Agency residential mortgage related securities | |||
Fair value measurement | |||
Investment securities available-for-sale | 121,911,000 | 125,649,000 | |
Balance | Recurring basis | Loans | |||
Fair value measurement | |||
Assets | [1] | 2,315,000 | 2,451,000 |
Balance | Recurring basis | Derivatives contracts | |||
Fair value measurement | |||
Liabilities | [1] | (154,000) | (174,000) |
Balance | Non-recurring basis | |||
Fair value measurement | |||
Assets | 3,966,000 | 4,579,000 | |
Mortgage servicing rights | 104,000 | 111,000 | |
Balance | Non-recurring basis | Loans | |||
Fair value measurement | |||
Assets | 1,239,000 | 1,654,000 | |
Balance | Non-recurring basis | Other real estate owned | |||
Fair value measurement | |||
Assets | $ 2,623,000 | $ 2,814,000 | |
[1] | Such financial instruments are recorded at fair value as further described in Note 5. |
FAIR VALUE (Details 3)
FAIR VALUE (Details 3) - Significant Other Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Roll forward of financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3) | ||
Beginning balance | $ 2,439 | $ 6,589 |
Purchases/ additions | (2) | (12) |
Sales | 0 | (1,938) |
Payments (received) made | (120) | (2,230) |
(Decrease) increase in value | (8) | 30 |
Ending balance | 2,309 | 2,439 |
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 | 0 | 2,120 |
Purchases/ additions | 0 | 0 |
Sales | 0 | 0 |
Payments (received) made | 0 | (2,118) |
(Decrease) increase in value | 0 | (2) |
Ending balance | 0 | 0 |
Derivatives contracts | ||
Roll forward of financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3) | ||
Beginning balance | (12) | (4) |
Purchases/ additions | (2) | (12) |
Sales | 0 | 0 |
Payments (received) made | 0 | 0 |
(Decrease) increase in value | 8 | 4 |
Ending balance | (6) | (12) |
Financial Assets Acquired from Debtors | ||
Roll forward of financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3) | ||
Beginning balance | 0 | 1,938 |
Purchases/ additions | 0 | 0 |
Sales | 0 | (1,938) |
Payments (received) made | 0 | 0 |
(Decrease) increase in value | 0 | 0 |
Ending balance | 0 | 0 |
Loans | ||
Roll forward of financial instruments which fair value is determined using Significant Other Unobservable Inputs (Level 3) | ||
Beginning balance | 2,451 | 2,535 |
Purchases/ additions | 0 | 0 |
Sales | 0 | 0 |
Payments (received) made | (120) | (112) |
(Decrease) increase in value | (16) | 28 |
Ending balance | $ 2,315 | $ 2,451 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Officers and Directors | |||
RELATED PARTY TRANSACTIONS | |||
Receivables from directors and officers | $ 0 | $ 0 | |
PMA | |||
RELATED PARTY TRANSACTIONS | |||
Ownership percentage | 45.00% | 45.00% | 45.00% |
Loans acquired | $ 0 | $ 700,000 | $ 900,000 |
Value of investments | 2,200,000 | 2,100,000 | |
PMA | Warehouse line of credit facility | |||
RELATED PARTY TRANSACTIONS | |||
Interest income | 288,000 | 269,000 | 307,000 |
Loan satisfaction fees | 39,000 | 35,000 | $ 47,000 |
Balance outstanding | $ 7,600,000 | $ 11,700,000 |
PARENT COMPANY ONLY FINANCIAL80
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and due from banks | $ 3,413 | $ 2,763 | ||
Interest-earning deposits with banks | 4,385 | 14,450 | ||
Total cash and cash equivalents | 7,798 | 17,213 | $ 11,947 | $ 25,090 |
Deferred tax asset, net | 5,142 | 4,561 | ||
Other assets | 6,096 | 6,155 | ||
Total Assets | 1,125,603 | 1,094,616 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Total Liabilities | 948,689 | 918,705 | ||
Stockholders' Equity | 176,914 | 175,911 | 173,467 | 181,465 |
Total Liabilities and Stockholders’ Equity | 1,125,603 | 1,094,616 | ||
Parent company | ||||
ASSETS | ||||
Cash and due from banks | 1,101 | 290 | ||
Interest-earning deposits with banks | 19,051 | 19,994 | ||
Total cash and cash equivalents | 20,152 | 20,284 | $ 26,033 | $ 29,607 |
Investment in subsidiary | 151,242 | 148,897 | ||
Due from Related Parties | 0 | 1,020 | ||
ESOP loans | 4,903 | 5,525 | ||
Deferred tax asset, net | 62 | 0 | ||
Other assets | 1,088 | 261 | ||
Total Assets | 177,447 | 175,987 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Due to Related Parties | 4 | 0 | ||
Other liabilities | 529 | 76 | ||
Total Liabilities | 533 | 76 | ||
Stockholders' Equity | 176,914 | 175,911 | ||
Total Liabilities and Stockholders’ Equity | $ 177,447 | $ 175,987 |
PARENT COMPANY ONLY FINANCIAL81
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME | |||||||||||
Total Interest Income | $ 9,953 | $ 9,906 | $ 10,090 | $ 10,124 | $ 9,840 | $ 10,153 | $ 10,078 | $ 10,058 | $ 40,073 | $ 40,129 | $ 40,129 |
EXPENSES | |||||||||||
Income Before Income Taxes | 2,648 | 3,364 | 4,593 | 3,006 | 2,941 | 2,469 | 3,420 | 2,783 | 13,611 | 11,613 | 7,797 |
Income tax benefit | 865 | 1,036 | 1,437 | 727 | 833 | 653 | 1,105 | 827 | 4,065 | 3,418 | 2,263 |
Net Income | $ 1,783 | $ 2,328 | $ 3,156 | $ 2,279 | $ 2,108 | $ 1,816 | $ 2,315 | $ 1,956 | 9,546 | 8,195 | 5,534 |
Parent company | |||||||||||
INCOME | |||||||||||
Interest on deposits with banks | 31 | 37 | 37 | ||||||||
Interest on ESOP loans | 327 | 365 | 400 | ||||||||
Total Interest Income | 358 | 402 | 437 | ||||||||
EXPENSES | |||||||||||
Other expenses | 1,456 | 906 | 996 | ||||||||
Total Expenses | 1,456 | 906 | 996 | ||||||||
Income Before Income Taxes | (1,098) | (504) | (559) | ||||||||
Income tax benefit | (292) | (171) | (280) | ||||||||
Loss before equity in undistributed net earnings of subsidiary | (806) | (333) | (279) | ||||||||
Equity in undistributed net earnings of subsidiary | 10,352 | 8,528 | 5,813 | ||||||||
Net Income | $ 9,546 | $ 8,195 | $ 5,534 |
PARENT COMPANY ONLY FINANCIAL82
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows From Operating Activities | |||||||||||
Net income | $ 1,783 | $ 2,328 | $ 3,156 | $ 2,279 | $ 2,108 | $ 1,816 | $ 2,315 | $ 1,956 | $ 9,546 | $ 8,195 | $ 5,534 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Increase (Decrease) in Deferred Income Taxes | (260) | 1,864 | (1,067) | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | (829) | (86) | (59) | ||||||||
Net Cash Provided by Operating Activities | 10,461 | 13,423 | 17,479 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Net Cash (Used in) Provided by Investing Activities | (40,881) | 26,881 | (59,973) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Purchase of treasury stock | (4,770) | (6,262) | (3,703) | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | 829 | 86 | 59 | ||||||||
Common stock issued for exercise of stock options | 1,015 | 439 | 106 | ||||||||
Cash dividends paid | (7,605) | (6,917) | (3,243) | ||||||||
Net Cash Provided by (Used in) Financing Activities | 21,005 | (35,038) | 29,351 | ||||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (9,415) | 5,266 | (13,143) | ||||||||
Cash and Cash Equivalents – Beginning | 17,213 | 11,947 | 17,213 | 11,947 | 25,090 | ||||||
Cash and Cash Equivalents – Ending | 7,798 | 17,213 | 7,798 | 17,213 | 11,947 | ||||||
Parent company | |||||||||||
Cash Flows From Operating Activities | |||||||||||
Net income | 9,546 | 8,195 | 5,534 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed income of subsidiary | (10,352) | (8,528) | (5,813) | ||||||||
Increase (Decrease) in Deferred Income Taxes | (62) | 0 | 0 | ||||||||
Decrease (increase) in due from subsidiary, net | 1,024 | (132) | (907) | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | (829) | (86) | (59) | ||||||||
Decrease (increase) in other assets | 2 | (155) | 588 | ||||||||
Increase (decrease) in other liabilities | 453 | (34) | (2) | ||||||||
Net Cash Provided by Operating Activities | (218) | (740) | (659) | ||||||||
Cash Flows from Investing Activities | |||||||||||
Loan payment received on ESOP loans | 622 | 584 | 550 | ||||||||
Cash dividends received from subsidiary | 8,527 | 5,813 | 0 | ||||||||
Net Cash (Used in) Provided by Investing Activities | 9,149 | 6,397 | 550 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Purchase of treasury stock | (4,770) | (6,262) | (3,703) | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | 829 | 86 | 59 | ||||||||
Receipts from subsidiary related to equity compensation activity | 1,468 | 1,248 | 3,316 | ||||||||
Common stock issued for exercise of stock options | 1,015 | 439 | 106 | ||||||||
Cash dividends paid | (7,605) | (6,917) | (3,243) | ||||||||
Net Cash Provided by (Used in) Financing Activities | (9,063) | (11,406) | (3,465) | ||||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (132) | (5,749) | (3,574) | ||||||||
Cash and Cash Equivalents – Beginning | $ 20,284 | $ 26,033 | 20,284 | 26,033 | 29,607 | ||||||
Cash and Cash Equivalents – Ending | $ 20,152 | $ 20,284 | $ 20,152 | $ 20,284 | $ 26,033 |
QUARTERLY FINANCIAL DATA (UNA83
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Noncash Merger Related Costs | $ 487 | ||||||||||
One-Time Core Data Processing Systems Conversion Expense | $ 292 | ||||||||||
Valuation adjustment for assets acquired through foreclosure | $ 23 | 137 | $ 305 | $ 5,017 | |||||||
Interest income | 9,953 | $ 9,906 | $ 10,090 | $ 10,124 | 9,840 | $ 10,153 | $ 10,078 | $ 10,058 | 40,073 | 40,129 | 40,129 |
Interest expense | 1,563 | 1,505 | 1,437 | 1,452 | 1,606 | 1,635 | 1,653 | 1,741 | 5,957 | 6,635 | 7,669 |
Net Interest Income | 8,390 | 8,401 | 8,653 | 8,672 | 8,234 | 8,518 | 8,425 | 8,317 | 34,116 | 33,494 | 32,460 |
(Credit) provision for loan losses | 100 | (300) | (1,267) | 472 | 350 | 1,493 | 100 | 0 | (995) | 1,943 | 982 |
Net Interest Income after (Credit) Provision for Loan Losses | 8,290 | 8,701 | 9,920 | 8,200 | 7,884 | 7,025 | 8,325 | 8,317 | 35,111 | 31,551 | 31,478 |
Noninterest income | 745 | 721 | 696 | 571 | 678 | 642 | 514 | 459 | 2,733 | 2,293 | 3,790 |
Noninterest expense | 6,387 | 6,058 | 6,023 | 5,765 | 5,621 | 5,198 | 5,419 | 5,993 | 24,233 | 22,231 | 27,471 |
Income Before Income Taxes | 2,648 | 3,364 | 4,593 | 3,006 | 2,941 | 2,469 | 3,420 | 2,783 | 13,611 | 11,613 | 7,797 |
Income tax expense (benefit) | 865 | 1,036 | 1,437 | 727 | 833 | 653 | 1,105 | 827 | 4,065 | 3,418 | 2,263 |
Net Income | $ 1,783 | $ 2,328 | $ 3,156 | $ 2,279 | $ 2,108 | $ 1,816 | $ 2,315 | $ 1,956 | $ 9,546 | $ 8,195 | $ 5,534 |
Per Common Share Data | |||||||||||
Weighted average common shares—basic | 10,984,837 | 10,918,909 | 10,938,705 | 11,027,566 | 11,127,377 | 11,287,884 | 11,291,452 | 11,294,883 | 10,967,253 | 11,250,042 | 11,289,143 |
Weighted average common shares—diluted | 11,216,635 | 11,148,260 | 11,176,780 | 11,267,666 | 11,366,427 | 11,523,917 | 11,534,163 | 11,555,104 | 11,205,310 | 11,499,061 | 11,530,154 |
Net income per share—basic | $ 0.16 | $ 0.21 | $ 0.29 | $ 0.21 | $ 0.19 | $ 0.16 | $ 0.21 | $ 0.17 | $ 0.87 | $ 0.73 | $ 0.49 |
Net income per share—diluted | $ 0.16 | $ 0.21 | $ 0.28 | $ 0.20 | $ 0.19 | $ 0.16 | $ 0.20 | $ 0.17 | $ 0.85 | $ 0.71 | $ 0.48 |