Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2015 |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | (5) Loans and Allowance for Loan Losses |
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The following tables present the recorded investment in loans by loan class: |
|
| | 31-Mar-15 | | | | | | | | | | | | | |
(dollars in thousands) | | New York and | | | Florida | | | Total | | | | | | | | | | | | | |
other states* | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 171,178 | | | | 15,968 | | | | 187,146 | | | | | | | | | | | | | |
Other | | | 24,950 | | | | 49 | | | | 24,999 | | | | | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 2,061,142 | | | | 500,633 | | | | 2,561,775 | | | | | | | | | | | | | |
Home equity loans | | | 51,853 | | | | 7,297 | | | | 59,150 | | | | | | | | | | | | | |
Home equity lines of credit | | | 306,196 | | | | 46,356 | | | | 352,552 | | | | | | | | | | | | | |
Installment | | | 7,231 | | | | 772 | | | | 8,003 | | | | | | | | | | | | | |
Total loans, net | | $ | 2,622,550 | | | | 571,075 | | | | 3,193,625 | | | | | | | | | | | | | |
Less: Allowance for loan losses | | | | | | | | | | | 45,944 | | | | | | | | | | | | | |
Net loans | | | | | | | | | | $ | 3,147,681 | | | | | | | | | | | | | |
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| | 31-Dec-14 | | | | | | | | | | | | | |
(dollars in thousands) | | New York and | | | Florida | | | Total | | | | | | | | | | | | | |
other states* | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 174,788 | | | | 19,336 | | | | 194,124 | | | | | | | | | | | | | |
Other | | | 29,200 | | | | 58 | | | | 29,258 | | | | | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 2,041,140 | | | | 476,427 | | | | 2,517,567 | | | | | | | | | | | | | |
Home equity loans | | | 51,713 | | | | 5,942 | | | | 57,655 | | | | | | | | | | | | | |
Home equity lines of credit | | | 308,764 | | | | 43,370 | | | | 352,134 | | | | | | | | | | | | | |
Installment | | | 6,774 | | | | 820 | | | | 7,594 | | | | | | | | | | | | | |
Total loans, net | | $ | 2,612,379 | | | | 545,953 | | | | 3,158,332 | | | | | | | | | | | | | |
Less: Allowance for loan losses | | | | | | | | | | | 46,327 | | | | | | | | | | | | | |
Net loans | | | | | | | | | | $ | 3,112,005 | | | | | | | | | | | | | |
* | Includes New York, New Jersey, Vermont and Massachusetts | | | | | | | | | | | | | | | | | | | | | | | |
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At March 31, 2015 and December 31, 2014, the Company had approximately $32.8 million and $38.5 million of real estate construction loans, respectively. Of the $32.8 million in real estate construction loans at March 31, 2015, approximately $17.1 million are secured by first mortgages to residential borrowers while approximately $15.7 million were to commercial borrowers for residential construction projects. Of the $38.5 million in real estate construction loans at December 31, 2014, approximately $17.6 million are secured by first mortgages to residential borrowers while approximately $20.9 million were to commercial borrowers for residential construction projects. The vast majority of construction loans are in the Company’s New York market. |
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TrustCo lends in the geographic territory of its branch locations in New York, Florida, Massachusetts, New Jersey and Vermont. Although the loan portfolio is diversified, a portion of its debtors’ ability to repay depends significantly on the economic conditions prevailing in the respective geographic territory. |
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The following tables present the recorded investment in non-accrual loans by loan class: |
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| | 31-Mar-15 | | | | | | | | | | | | | |
(dollars in thousands) | | New York and | | | Florida | | | Total | | | | | | | | | | | | | |
other states | | | | | | | | | | | | |
Loans in non-accrual status: | | | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 2,489 | | | | - | | | | 2,489 | | | | | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 24,704 | | | | 2,287 | | | | 26,991 | | | | | | | | | | | | | |
Home equity loans | | | 296 | | | | - | | | | 296 | | | | | | | | | | | | | |
Home equity lines of credit | | | 3,215 | | | | 321 | | | | 3,536 | | | | | | | | | | | | | |
Installment | | | 77 | | | | 20 | | | | 97 | | | | | | | | | | | | | |
Total non-accrual loans | | | 30,781 | | | | 2,628 | | | | 33,409 | | | | | | | | | | | | | |
Restructured real estate mortgages - 1 to 4 family | | | 75 | | | | - | | | | 75 | | | | | | | | | | | | | |
Total nonperforming loans | | $ | 30,856 | | | | 2,628 | | | | 33,484 | | | | | | | | | | | | | |
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| | 31-Dec-14 | | | | | | | | | | | | | |
(dollars in thousands) | | New York and | | | Florida | | | Total | | | | | | | | | | | | | |
other states | | | | | | | | | | | | |
Loans in non-accrual status: | | | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 3,835 | | | | - | | | | 3,835 | | | | | | | | | | | | | |
Other | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 23,643 | | | | 2,488 | | | | 26,131 | | | | | | | | | | | | | |
Home equity loans | | | 349 | | | | - | | | | 349 | | | | | | | | | | | | | |
Home equity lines of credit | | | 3,229 | | | | 252 | | | | 3,481 | | | | | | | | | | | | | |
Installment | | | 77 | | | | 13 | | | | 90 | | | | | | | | | | | | | |
Total non-accrual loans | | | 31,133 | | | | 2,753 | | | | 33,886 | | | | | | | | | | | | | |
Restructured real estate mortgages - 1 to 4 family | | | 125 | | | | - | | | | 125 | | | | | | | | | | | | | |
Total nonperforming loans | | $ | 31,258 | | | | 2,753 | | | | 34,011 | | | | | | | | | | | | | |
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The Compnay transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). As of March 31, 2015 and December 31, 2014, Residential other real estate owned totaled $3.6 million and $4.2 million respectivlely. In addition , non-accrual residential mortgage loans that are in process of foreclosure had a recorded investment of $18.4 million and $17.5 million as of March 31, 2015 and December 31, 2014 respectively. |
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The following tables present the aging of the recorded investment in past due loans by loan class and by region as of March 31, 2015 and December 31, 2014: |
New York and other states: |
| | 31-Mar-15 | |
(dollars in thousands) | | 30-59 | | | 60-89 | | | 90 + | | | Total | | | Current | | | Total | |
Days | Days | Days | 30+ days | Loans |
Past Due | Past Due | Past Due | Past Due | |
| | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 886 | | | | 527 | | | | 1,231 | | | | 2,644 | | | | 168,534 | | | | 171,178 | |
Other | | | - | | | | - | | | | - | | | | - | | | | 24,950 | | | | 24,950 | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 4,094 | | | | 2,260 | | | | 17,216 | | | | 23,570 | | | | 2,037,572 | | | | 2,061,142 | |
Home equity loans | | | 152 | | | | - | | | | 272 | | | | 424 | | | | 51,429 | | | | 51,853 | |
Home equity lines of credit | | | 550 | | | | 641 | | | | 1,118 | | | | 2,309 | | | | 303,887 | | | | 306,196 | |
Installment | | | 31 | | | | 91 | | | | 49 | | | | 171 | | | | 7,060 | | | | 7,231 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 5,713 | | | | 3,519 | | | | 19,886 | | | | 29,118 | | | | 2,593,432 | | | | 2,622,550 | |
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Florida: |
|
(dollars in thousands) | | 30-59 | | | 60-89 | | | 90 + | | | Total | | | Current | | | Total | |
Days | Days | Days | 30+ days | Loans |
Past Due | Past Due | Past Due | Past Due | |
| | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | - | | | | - | | | | - | | | | - | | | | 15,968 | | | | 15,968 | |
Other | | | - | | | | - | | | | - | | | | - | | | | 49 | | | | 49 | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 744 | | | | 82 | | | | 849 | | | | 1,675 | | | | 498,958 | | | | 500,633 | |
Home equity loans | | | - | | | | - | | | | - | | | | - | | | | 7,297 | | | | 7,297 | |
Home equity lines of credit | | | 35 | | | | - | | | | 100 | | | | 135 | | | | 46,221 | | | | 46,356 | |
Installment | | | 2 | | | | - | | | | - | | | | 2 | | | | 770 | | | | 772 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 781 | | | | 82 | | | | 949 | | | | 1,812 | | | | 569,263 | | | | 571,075 | |
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Total: |
|
(dollars in thousands) | | 30-59 | | | 60-89 | | | 90+ | | | Total | | | Current | | | Total | |
Days | Days | Days | 30+ days | Loans |
Past Due | Past Due | Past Due | Past Due | |
| | | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 886 | | | | 527 | | | | 1,231 | | | | 2,644 | | | | 184,502 | | | | 187,146 | |
Other | | | - | | | | - | | | | - | | | | - | | | | 24,999 | | | | 24,999 | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 4,838 | | | | 2,342 | | | | 18,065 | | | | 25,245 | | | | 2,536,530 | | | | 2,561,775 | |
Home equity loans | | | 152 | | | | - | | | | 272 | | | | 424 | | | | 58,726 | | | | 59,150 | |
Home equity lines of credit | | | 585 | | | | 641 | | | | 1,218 | | | | 2,444 | | | | 350,108 | | | | 352,552 | |
Installment | | | 33 | | | | 91 | | | | 49 | | | | 173 | | | | 7,830 | | | | 8,003 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 6,494 | | | | 3,601 | | | | 20,835 | | | | 30,930 | | | | 3,162,695 | | | | 3,193,625 | |
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New York and other states: |
|
| | 31-Dec-14 | |
(dollars in thousands) | | 30-59 | | | 60-89 | | | 90 + | | | Total | | | Current | | | Total | |
Days | Days | Days | 30+ days | Loans |
Past Due | Past Due | Past Due | Past Due | |
| | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 618 | | | | 52 | | | | 2,627 | | | | 3,297 | | | | 171,491 | | | | 174,788 | |
Other | | | - | | | | - | | | | - | | | | - | | | | 29,200 | | | | 29,200 | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 3,340 | | | | 3,874 | | | | 16,782 | | | | 23,996 | | | | 2,017,144 | | | | 2,041,140 | |
Home equity loans | | | 141 | | | | 59 | | | | 337 | | | | 537 | | | | 51,176 | | | | 51,713 | |
Home equity lines of credit | | | 568 | | | | 342 | | | | 1,198 | | | | 2,108 | | | | 306,656 | | | | 308,764 | |
Installment | | | 79 | | | | 10 | | | | 58 | | | | 147 | | | | 6,627 | | | | 6,774 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 4,746 | | | | 4,337 | | | | 21,002 | | | | 30,085 | | | | 2,582,294 | | | | 2,612,379 | |
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Florida: |
|
(dollars in thousands) | | 30-59 | | | 60-89 | | | 90 + | | | Total | | | Current | | | Total | |
Days | Days | Days | 30+ days | Loans |
Past Due | Past Due | Past Due | Past Due | |
| | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | - | | | | - | | | | - | | | | - | | | | 19,336 | | | | 19,336 | |
Other | | | - | | | | - | | | | - | | | | - | | | | 58 | | | | 58 | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 801 | | | | 283 | | | | 1,225 | | | | 2,309 | | | | 474,118 | | | | 476,427 | |
Home equity loans | | | - | | | | - | | | | - | | | | - | | | | 5,942 | | | | 5,942 | |
Home equity lines of credit | | | 173 | | | | - | | | | 116 | | | | 289 | | | | 43,081 | | | | 43,370 | |
Installment | | | 17 | | | | - | | | | - | | | | 17 | | | | 803 | | | | 820 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 991 | | | | 283 | | | | 1,341 | | | | 2,615 | | | | 543,338 | | | | 545,953 | |
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Total: |
|
(dollars in thousands) | | 30-59 | | | 60-89 | | | 90 + | | | Total | | | Current | | | Total | |
Days | Days | Days | 30+ days | Loans |
Past Due | Past Due | Past Due | Past Due | |
| | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 618 | | | | 52 | | | | 2,627 | | | | 3,297 | | | | 190,827 | | | | 194,124 | |
Other | | | - | | | | - | | | | - | | | | - | | | | 29,258 | | | | 29,258 | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 4,141 | | | | 4,157 | | | | 18,007 | | | | 26,305 | | | | 2,491,262 | | | | 2,517,567 | |
Home equity loans | | | 141 | | | | 59 | | | | 337 | | | | 537 | | | | 57,118 | | | | 57,655 | |
Home equity lines of credit | | | 741 | | | | 342 | | | | 1,314 | | | | 2,397 | | | | 349,737 | | | | 352,134 | |
Installment | | | 96 | | | | 10 | | | | 58 | | | | 164 | | | | 7,430 | | | | 7,594 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 5,737 | | | | 4,620 | | | | 22,343 | | | | 32,700 | | | | 3,125,632 | | | | 3,158,332 | |
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At March 31, 2015 and December 31, 2014, there were no loans that are 90 days past due and still accruing interest. As a result, non-accrual loans includes all loans 90 days past due and greater as well as certain loans less than 90 days past due that were placed on non-accrual status for reasons other than delinquent status. There are no commitments to extend further credit on non-accrual or restructured loans. |
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Activity in the allowance for loan losses by portfolio segment is summarized as follows: |
|
(dollars in thousands) | | For the three months ended March 31, 2015 | | | | | | | | | |
| | Commercial | | | Real Estate | | | Installment | | | Total | | | | | | | | | |
Mortgage- | | | | | | | | |
1 to 4 Family | | | | | | | | |
Balance at beginning of period | | $ | 4,071 | | | | 42,088 | | | | 168 | | | | 46,327 | | | | | | | | | |
Loans charged off: | | | | | | | | | | | | | | | | | | | | | | | | |
New York and other states* | | | 50 | | | | 1,114 | | | | 43 | | | | 1,207 | | | | | | | | | |
Florida | | | - | | | | 109 | | | | - | | | | 109 | | | | | | | | | |
Total loan chargeoffs | | | 50 | | | | 1,223 | | | | 43 | | | | 1,316 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries of loans previously charged off: | | | | | | | | | | | | | | | | | | | | | | | | |
New York and other states* | | | 16 | | | | 110 | | | | 6 | | | | 132 | | | | | | | | | |
Florida | | | 1 | | | | - | | | | - | | | | 1 | | | | | | | | | |
Total recoveries | | | 17 | | | | 110 | | | | 6 | | | | 133 | | | | | | | | | |
Net loans charged off | | | 33 | | | | 1,113 | | | | 37 | | | | 1,183 | | | | | | | | | |
Provision (credit) for loan losses | | | (14 | ) | | | 554 | | | | 260 | | | | 800 | | | | | | | | | |
Balance at end of period | | $ | 4,024 | | | | 41,529 | | | | 391 | | | | 45,944 | | | | | | | | | |
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(dollars in thousands) | | For the three months ended March 31, 2014 | | | | | | | | | |
| | Commercial | | | Real Estate | | | Installment | | | Total | | | | | | | | | |
Mortgage- | | | | | | | | |
1 to 4 Family | | | | | | | | |
Balance at beginning of period | | $ | 4,019 | | | | 43,597 | | | | 98 | | | | 47,714 | | | | | | | | | |
Loans charged off: | | | | | | | | | | | | | | | | | | | | | | | | |
New York and other states* | | | 260 | | | | 925 | | | | 49 | | | | 1,234 | | | | | | | | | |
Florida | | | 613 | | | | 467 | | | | 2 | | | | 1,082 | | | | | | | | | |
Total loan chargeoffs | | | 873 | | | | 1,392 | | | | 51 | | | | 2,316 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries of loans previously charged off: | | | | | | | | | | | | | | | | | | | | | | | | |
New York and other states* | | | 18 | | | | 74 | | | | 5 | | | | 97 | | | | | | | | | |
Florida | | | 1 | | | | 39 | | | | - | | | | 40 | | | | | | | | | |
Total recoveries | | | 19 | | | | 113 | | | | 5 | | | | 137 | | | | | | | | | |
Net loans charged off | | | 854 | | | | 1,279 | | | | 46 | | | | 2,179 | | | | | | | | | |
Provision for loan losses | | | 675 | | | | 773 | | | | 52 | | | | 1,500 | | | | | | | | | |
Balance at end of period | | $ | 3,840 | | | | 43,091 | | | | 104 | | | | 47,035 | | | | | | | | | |
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The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2015 and December 31, 2014: |
|
| | 31-Mar-15 | | | | | | | | | |
(dollars in thousands) | | Commercial Loans | | | 1-to-4 Family | | | Installment Loans | | | Total | | | | | | | | | |
Residential Real Estate | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | - | | | | - | | | | - | | | | - | | | | | | | | | |
Collectively evaluated for impairment | | | 4,024 | | | | 41,529 | | | | 391 | | | | 45,944 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending allowance balance | | $ | 4,024 | | | | 41,529 | | | | 391 | | | | 45,944 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 2,780 | | | | 22,944 | | | | - | | | | 25,724 | | | | | | | | | |
Collectively evaluated for impairment | | | 209,365 | | | | 2,950,533 | | | | 8,003 | | | | 3,167,901 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending loans balance | | $ | 212,145 | | | | 2,973,477 | | | | 8,003 | | | | 3,193,625 | | | | | | | | | |
|
| | 31-Dec-14 | | | | | | | | | |
(dollars in thousands) | | Commercial Loans | | | 1-to-4 Family | | | Installment Loans | | | Total | | | | | | | | | |
Residential Real Estate | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | - | | | | - | | | | - | | | | - | | | | | | | | | |
Collectively evaluated for impairment | | | 4,071 | | | | 42,088 | | | | 168 | | | | 46,327 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending allowance balance | | $ | 4,071 | | | | 42,088 | | | | 168 | | | | 46,327 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 4,129 | | | | 22,406 | | | | - | | | | 26,535 | | | | | | | | | |
Collectively evaluated for impairment | | | 219,253 | | | | 2,904,950 | | | | 7,594 | | | | 3,131,797 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending loans balance | | $ | 223,382 | | | | 2,927,356 | | | | 7,594 | | | | 3,158,332 | | | | | | | | | |
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The Company has identified non-accrual commercial and commercial real estate loans, as well as all loans restructured under a troubled debt restructuring (TDR), as impaired loans. A loan is considered impaired when it is probable that the borrower will be unable to repay the loan according to the original contractual terms of the loan agreement or the loan is restructured in a TDR. |
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A loan for which the terms have been modified, and for which the borrower is experiencing financial difficulties, is considered a TDR and is classified as impaired. TDR’s at March 31, 2015 and December 31, 2014 are measured at the present value of estimated future cash flows using the loan’s effective rate at inception or the fair value of the underlying collateral if the loan is considered collateral dependent. |
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The following tables present impaired loans by loan class as of March 31, 2015 and December 31, 2014: |
New York and other states: |
| | 31-Mar-15 | | | | | | | | | |
(dollars in thousands) | | Recorded | | | Unpaid | | | Related | | | Average | | | | | | | | | |
Investment | Principal | Allowance | Recorded | | | | | | | | |
| Balance | | Investment | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 2,780 | | | | 2,928 | | | | - | | | | 3,611 | | | | | | | | | |
Other | | | - | | | | - | | | | - | | | | - | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 18,238 | | | | 19,435 | | | | - | | | | 18,276 | | | | | | | | | |
Home equity loans | | | 338 | | | | 381 | | | | - | | | | 347 | | | | | | | | | |
Home equity lines of credit | | | 2,280 | | | | 2,520 | | | | - | | | | 2,415 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 23,636 | | | | 25,264 | | | | - | | | | 24,649 | | | | | | | | | |
|
Florida: |
|
(dollars in thousands) | | Recorded | | | Unpaid | | | Related | | | Average | | | | | | | | | |
Investment | Principal | Allowance | Recorded | | | | | | | | |
| Balance | | Investment | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | - | | | | - | | | | - | | | | - | | | | | | | | | |
Other | | | - | | | | - | | | | - | | | | - | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 1,377 | | | | 1,476 | | | | - | | | | 1,420 | | | | | | | | | |
Home equity loans | | | 55 | | | | 55 | | | | - | | | | 55 | | | | | | | | | |
Home equity lines of credit | | | 656 | | | | 740 | | | | - | | | | 667 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 2,088 | | | | 2,271 | | | | - | | | | 2,142 | | | | | | | | | |
|
Total: |
|
(dollars in thousands) | | Recorded | | | Unpaid | | | Related | | | Average | | | | | | | | | |
Investment | Principal | Allowance | Recorded | | | | | | | | |
| Balance | | Investment | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 2,780 | | | | 2,928 | | | | - | | | | 3,611 | | | | | | | | | |
Other | | | - | | | | - | | | | - | | | | - | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 19,615 | | | | 20,911 | | | | - | | | | 19,696 | | | | | | | | | |
Home equity loans | | | 393 | | | | 436 | | | | - | | | | 402 | | | | | | | | | |
Home equity lines of credit | | | 2,936 | | | | 3,260 | | | | - | | | | 3,082 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 25,724 | | | | 27,535 | | | | - | | | | 26,791 | | | | | | | | | |
|
New York and other states: |
| | 31-Dec-14 | | | | | | | | | |
(dollars in thousands) | | Recorded | | | Unpaid | | | Related | | | Average | | | | | | | | | |
Investment | Principal | Allowance | Recorded | | | | | | | | |
| Balance | | Investment | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 4,129 | | | | 5,499 | | | | - | | | | 4,798 | | | | | | | | | |
Other | | | - | | | | - | | | | - | | | | 61 | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 17,579 | | | | 18,689 | | | | - | | | | 17,261 | | | | | | | | | |
Home equity loans | | | 366 | | | | 410 | | | | - | | | | 454 | | | | | | | | | |
Home equity lines of credit | | | 2,492 | | | | 2,778 | | | | - | | | | 2,578 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 24,566 | | | | 27,376 | | | | - | | | | 25,152 | | | | | | | | | |
|
Florida: |
|
(dollars in thousands) | | Recorded | | | Unpaid | | | Related | | | Average | | | | | | | | | |
Investment | Principal | Allowance | Recorded | | | | | | | | |
| Balance | | Investment | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | - | | | | - | | | | - | | | | 577 | | | | | | | | | |
Other | | | - | | | | - | | | | - | | | | - | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 1,289 | | | | 1,380 | | | | - | | | | 1,422 | | | | | | | | | |
Home equity loans | | | 56 | | | | 56 | | | | - | | | | 5 | | | | | | | | | |
Home equity lines of credit | | | 624 | | | | 773 | | | | - | | | | 581 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,969 | | | | 2,209 | | | | - | | | | 2,585 | | | | | | | | | |
Total: |
|
(dollars in thousands) | | Recorded | | | Unpaid | | | Related | | | Average | | | | | | | | | |
Investment | Principal | Allowance | Recorded | | | | | | | | |
| Balance | | Investment | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 4,129 | | | | 5,499 | | | | - | | | | 5,375 | | | | | | | | | |
Other | | | - | | | | - | | | | - | | | | 61 | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 18,868 | | | | 20,069 | | | | - | | | | 18,683 | | | | | | | | | |
Home equity loans | | | 422 | | | | 466 | | | | - | | | | 459 | | | | | | | | | |
Home equity lines of credit | | | 3,116 | | | | 3,551 | | | | - | | | | 3,159 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 26,535 | | | | 29,585 | | | | - | | | | 27,737 | | | | | | | | | |
|
The Company has not committed to lend additional amounts to customers with outstanding loans that are classified as impaired. Interest income recognized on impaired loans was not material during the three months ended March 31, 2015 and 2014. |
|
As of March 31, 2015 and December 31, 2014 impaired loans included approximately $10.4 million and $9.9 million of 1 to 4 family residential real estate loans in accruing status that were identified as TDR’s in accordance with regulatory guidance related to Chapter 7 bankruptcy loans. |
|
Management evaluates impairment on impaired loans on a quarterly basis. If, during this evaluation, impairment of the loan is identified, a charge off is taken at that time. As a result, as of March 31, 2015 and December 31, 2014, based upon management’s evaluation and due to the sufficiency of chargeoffs taken, none of the allowance for loan losses has been allocated to a specific impaired loan(s). |
|
The following table presents, by class, loans that were modified as TDR’s: |
|
| | Three months ended 3/31/2015 | | | Three months ended 3/31/2014 | |
New York and other states*: | | Number of | | | Pre-Modification | | | Post-Modification | | | Number of | | | Pre-Modification | | | Post-Modification | |
| Contracts | Outstanding | Outstanding | Contracts | Outstanding | Outstanding |
| | Recorded | Recorded | | Recorded | Recorded |
(dollars in thousands) | | Investment | Investment | | Investment | Investment |
| | | | | | | | | | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | |
First mortgages | | | 11 | | | $ | 2,240 | | | $ | 2,240 | | | | 8 | | | $ | 1,378 | | | $ | 1,378 | |
Home equity loans | | | 1 | | | | 10 | | | | 10 | | | | 1 | | | | 4 | | | | 4 | |
Home equity lines of credit | | | 1 | | | | 50 | | | | 50 | | | | 1 | | | | 122 | | | | 122 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 13 | | | $ | 2,300 | | | $ | 2,300 | | | | 10 | | | $ | 1,504 | | | $ | 1,504 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Florida: | | Number of | | | Pre-Modification | | | Post-Modification | | | Number of | | | Pre-Modification | | | Post-Modification | |
| Contracts | Outstanding | Outstanding | Contracts | Outstanding | Outstanding |
| | Recorded | Recorded | | Recorded | Recorded |
(dollars in thousands) | | Investment | Investment | | Investment | Investment |
| | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | 1 | | | $ | 157 | | | $ | 157 | | | | 2 | | | $ | 173 | | | $ | 173 | |
Home equity lines of credit | | | 2 | | | | 50 | | | | 50 | | | | 2 | | | | 354 | | | | 354 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 3 | | | $ | 207 | | | $ | 207 | | | | 4 | | | $ | 527 | | | $ | 527 | |
|
The addition of these TDR’s did not have a significant impact on the allowance for loan losses. |
|
In situations where the Bank considers a loan modification, management determines whether the borrower is experiencing financial difficulty by performing an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s underwriting policy. |
|
Generally, the modification of the terms of loans was the result of the borrower filing for bankruptcy protection. Chapter 13 bankruptcies generally include the deferral of all past due amounts for a period of generally 60 months in accordance with the bankruptcy court order. In the case of Chapter 7 bankruptcies, as previously noted, even though there is no modification of terms, the borrowers’ debt to the Company was discharged and they did not reaffirm the debt. |
|
A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In situations involving a borrower filing for Chapter 13 bankruptcy protection, however, a loan is considered to be in payment default once it is 30 days contractually past due, consistent with the treatment by the bankruptcy court. |
|
The following table presents, by class, TDR’s that defaulted during the three months ended March 31, 2015 and 2014 which had been modified within the last twelve months: |
|
| | Three months ended 3/31/2015 | | | Three months ended 3/31/2014 | | | | | | | | | |
New York and other states*: | | Number of | | | Recorded | | | Number of | | | Recorded | | | | | | | | | |
(dollars in thousands) | Contracts | Investment | Contracts | Investment | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | |
First mortgages | | | - | | | $ | - | | | | 4 | | | $ | 245 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | - | | | $ | - | | | | 4 | | | $ | 245 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Florida: | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Number of | | | Recorded | | | Number of | | | Recorded | | | | | | | | | |
Contracts | Investment | Contracts | Investment | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage - 1 to 4 family: | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | | 1 | | | $ | 50 | | | | 1 | | | $ | 280 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 1 | | | $ | 50 | | | | 1 | | | $ | 280 | | | | | | | | | |
|
The TDR’s that subsequently defaulted described above did not have a material impact on the allowance for loan losses as the underlying collateral was evaluated at the time these loans were identified as TDR’s, and a charge off was taken at that time, if necessary. Collateral values on these loans, as well as all non-accrual loans, are reviewed for collateral sufficiency on a quarterly basis. |
|
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. On at least an annual basis, the Company’s loan grading process analyzes non-homogeneous loans over $150 thousand, such as commercial and commercial real estate loans, individually by grading the loans based on credit risk. In addition, the Company’s internal loan review department reviews non-homogeneous loans over $250 thousand by testing the loan grades assigned through the Company’s grading process. |
|
The Company uses the following definitions for classified loans: |
|
Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. |
|
Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as such have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. |
|
Doubtful: Loans classified as doubtful have all the weaknesses inherent in those loans classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. All doubtful loans are considered impaired. |
|
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. |
|
As of March 31, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: |
|
| | 31-Mar-15 | | | | | | | | | | | | | |
New York and other states: | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Classified | | | Total | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 160,448 | | | | 10,730 | | | | 171,178 | | | | | | | | | | | | | |
Other | | | 24,283 | | | | 667 | | | | 24,950 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 184,731 | | | | 11,397 | | | | 196,128 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Florida: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Classified | | | Total | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 15,968 | | | | - | | | | 15,968 | | | | | | | | | | | | | |
Other | | | 49 | | | | - | | | | 49 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 16,017 | | | | - | | | | 16,017 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Classified | | | Total | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 176,416 | | | | 10,730 | | | | 187,146 | | | | | | | | | | | | | |
Other | | | 24,332 | | | | 667 | | | | 24,999 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 200,748 | | | | 11,397 | | | | 212,145 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | 31-Dec-14 | | | | | | | | | | | | | |
New York and other states: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Classified | | | Total | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 162,589 | | | | 12,199 | | | | 174,788 | | | | | | | | | | | | | |
Other | | | 28,677 | | | | 523 | | | | 29,200 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 191,266 | | | | 12,722 | | | | 203,988 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Florida: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Classified | | | Total | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 19,336 | | | | - | | | | 19,336 | | | | | | | | | | | | | |
Other | | | 58 | | | | - | | | | 58 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 19,394 | | | | - | | | | 19,394 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Classified | | | Total | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 181,925 | | | | 12,199 | | | | 194,124 | | | | | | | | | | | | | |
Other | | | 28,735 | | | | 523 | | | | 29,258 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 210,660 | | | | 12,722 | | | | 223,382 | | | | | | | | | | | | | |
|
Included in classified loans in the above tables are impaired loans of $2.8 million and $4.1 million at March 31, 2015 and December 31, 2014, respectively. |
|
For homogeneous loan pools, such as residential mortgages, home equity lines of credit, and installment loans, the Company uses payment status to identify the credit risk in these loan portfolios. Payment status is reviewed on a daily basis by the Bank’s collection area and on a monthly basis with respect to determining the adequacy of the allowance for loan losses. The payment status of these homogeneous pools at March 31, 2015 and December 31, 2014 is included in the aging of the recorded investment of past due loans table. In addition, the total nonperforming portion of these homogeneous loan pools at March 31, 2015 and December 31, 2014 is presented in the recorded investment in non-accrual loans table. |