Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5 - Loans and the Allowance for Loan and Lease Losses The following table sets forth the composition of the Companys loan portfolio segments, including net deferred fees and costs, at December 31, 2015 and 2014, respectively: 2015 2014 (in thousands) Commercial $ 570,116 $ 499,816 Commercial real estate 1,966,696 1,634,510 Commercial construction 328,838 167,359 Residential real estate 233,690 234,967 Consumer 2,454 2,879 Gross loans 3,101,794 2,539,531 Net deferred loan (fees) costs (2,787) (890) Total loans receivable $ 3,099,007 $ 2,538,641 The loan segments in the above table have unique risk characteristics with respect to credit quality: ● The repayment of commercial loans is generally dependent on the creditworthiness and cash flow of borrowers, and if applicable, guarantors, which may be negatively impacted by adverse economic conditions. While the majority of these loans are secured, collateral type, marketing, coverage, valuation and monitoring is not as uniform as in other portfolio classes and recovery from liquidation of such collateral may be subject to greater variability. ● Payment on commercial mortgages is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment, and value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general. ● Properties underlying construction, land and land development loans often do not generate sufficient cash flows to service debt and thus repayment is subject to ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain. ● The ability of borrowers to service debt in the residential and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and/or second liens on single family properties. If a borrower cannot maintain the loan, the Companys ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions. Purchased Credit-Impaired Loans The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows at December 31, 2015 and December 31, 2014. 2015 2014 (in thousands) Commercial $ 7,078 $ 7,199 Commercial real estate 1,775 1,816 Commercial construction - - Residential real estate 328 806 Consumer - - Total carrying amount $ 9,181 $ 9,821 For those purchased loans disclosed above, the Company did not increase the allowance for loan and lease losses for the year ended December 31, 2015. No allowances for loan and lease losses were reversed during 2015. The accretable yield, or income expected to be collected, on the purchased credit impaired loans above is as follows at December 31, 2015 and December 31, 2014. 2015 2014 (in thousands) Balance at beginning of period $ 4,805 $ 5,013 New loans purchased - - Accretion of income (1,206) (142) Reclassifications from nonaccretable difference - - Disposals - (66) Balance at end of period $ 3,599 $ 4,805 The following table presents nonaccrual loans by class of loans: Loans Receivable on Nonaccrual Status 2015 2014 (in thousands) Commercial $ 6,586 $ 616 Commercial real estate 9,112 8,197 Commercial construction 1,479 - Residential real estate 3,559 2,796 Total loans receivable on nonaccrual status $ 20,736 $ 11,609 Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified impaired loans. At December 31, 2015 and 2014, loan balances of approximately $1.6 billion and $1.0 billion were pledged to secure borrowings from the Federal Reserve Bank of New York and Federal Home Loan Bank Advances. At December 31, 2015 and 2014, the net investment in direct lease financing consists of a minimum lease receivable of $4,105,000 and $4,267,000, respectively, and unearned interest income of $394,000 and $538,000, respectively, for a net investment in direct lease financing of $3,712,000 and $3,729,000, respectively. The net investment in direct lease financing is carried as a component of loans in the Companys consolidated statements of condition and included in the commercial loan segment. The tenant is in default under the lease and the Bank intends to sell the property. The Company has allocated a $1.3 million specific allowance for the net investment in direct lease financing as of December 31, 2015. The Company did not allocate a specific allowance for the net investment in direct lease financing as of December 31, 2014. The Company continuously monitors the credit quality of its loans receivable. In addition to the internal staff, the Company utilizes the services of a third party loan review firm to rate the credit quality of its loans receivable. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified Pass are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as Special Mention have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Companys credit position at some future date. Assets are classified Substandard if the asset has a well-defined weakness that requires managements attention to a greater degree than for loans classified special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as Doubtful if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a distinct possibility that a degree of loss will occur if the inadequacies are not corrected. All loans past due 90 days or more and all impaired loans are included in the appropriate category below. The following table presents information about the loan credit quality by loan segment at December 31, 2015 and 2014: Credit Quality Indicators December 31, 2015 Special Pass Mention Substandard Doubtful Total (in thousands) Commercial $ 462,358 $ 11,760 $ 95,998 $ - $ 570,116 Commercial real estate 1,919,041 18,990 28,426 239 1,966,696 Commercial construction 326,697 662 1,479 - 328,838 Residential real estate 229,426 - 4,264 - 233,690 Consumer 2,368 - 86 - 2,454 Total loans $ 2,939,890 $ 31,412 $ 130,253 $ 239 $ 3,101,794 December 31, 2014 Special Pass Mention Substandard Doubtful Total (in thousands) Commercial $ 481,927 $ 3,686 $ 14,203 $ - $ 499,816 Commercial real estate 1,596,317 14,140 23,764 289 1,634,510 Commercial construction 165,880 1,479 - - 167,359 Residential real estate 230,772 - 4,195 - 234,967 Consumer 2,778 - 101 - 2,879 Total loans $ 2,477,674 $ 19,305 $ 42,263 $ 289 $ 2,539,531 The following table provides an analysis of the impaired loans by segment at December 31, 2015 and 2014: December 31, 2015 (dollars in thousands) Unpaid Average Interest Recorded Principal Related Recorded Income No Related Allowance Recorded Investment Balance Allowance Investment Recognized Commercial $ 610 $ 645 $ $ 686 $ - Commercial real estate 15,517 16,512 6,363 60 Commercial construction 2,149 2,141 1,535 - Residential real estate 3,954 4,329 3,322 10 Consumer 87 86 96 5 Total $ 22,318 $ 23,173 $ $ 12,002 $ 75 Unpaid Average Interest Recorded Principal Related Recorded Income With An Allowance Recorded Investment Balance Allowance Investment Recognized Commercial $ 84,787 $ 84,449 $ 6,725 $ 55,445 $ 1,895 Total Commercial $ 85,397 $ 85,094 $ 6,725 $ 56,131 $ 1,895 Commercial real estate 15,517 16,512 - 6,363 60 Commercial construction 2,149 2,141 - 1,535 Residential real estate 3,954 4,329 - 3,322 10 Consumer 87 86 - 96 5 Total $ 107,104 $ 108,162 $ 6,725 $ 67,447 $ 1,970 December 31, 2014 (dollars in thousands) Unpaid Average Interest Recorded Principal Related Recorded Income No Related Allowance Recorded Investment Balance Allowance Investment Recognized Commercial $ 481 $ 527 $ - $ 494 $ - Commercial real estate 5,890 6,857 - 6,276 129 Residential real estate 3,072 3,406 - 3,170 41 Consumer 109 101 - 107 - Total $ 9,552 $ 10,891 $ - $ 10,047 $ 170 Unpaid Average Interest Recorded Principal Related Recorded Income With An Allowance Recorded Investment Balance Allowance Investment Recognized Commercial $ 387 $ 389 $ 111 $ 389 $ - Commercial real estate 3,520 3,520 150 3,584 171 Total $ 3,907 $ 3,909 $ 261 $ 3,973 $ 171 Total Commercial $ 868 $ 917 $ 111 $ 883 $ - Commercial real estate 9,410 10,107 150 9,860 300 Residential real estate 3,072 3,406 - 3,170 41 Consumer 109 101 - 106 - Total $ 13,459 $ 14,531 $ 261 $ 14,019 $ 342 December 31, 2013 (dollars in thousands) Unpaid Average Interest Recorded Principal Related Recorded Income No Related Allowance Recorded Investment Balance Allowance Investment Recognized Commercial $ 449 $ 449 $ - $ 494 $ 25 Commercial real estate 10,482 10,783 - 10,658 496 Residential real estate 1,858 2,000 - 1,892 94 Consumer 120 120 - 128 6 Total $ 12,909 $ 13,352 $ - $ 13,172 $ 621 Unpaid Average Interest Recorded Principal Related Recorded Income With An Allowance Recorded Investment Balance Allowance Investment Recognized Commercial $ 672 $ 672 $ 300 $ 687 $ 43 Commercial real estate 4,344 4,344 115 4,359 200 Total $ 5,016 $ 5,016 $ 415 $ 5,046 $ 243 Total Commercial $ 1,121 $ 1,121 $ 300 $ 1,181 $ 68 Commercial real estate 14,826 15,127 115 15,017 696 Residential real estate 1,858 2,000 - 1,892 94 Consumer 120 120 - 128 6 Total (including related allowance) $ 17,925 $ 18,368 $ 415 $ 18,218 $ 864 Included in the impaired loans table are $85.9 million, $1.8 million and $5.7 million of performing TDRs as of December 31, 2015, 2014 and 2013 respectively. The recorded investment in loans include accrued interest receivable and other capitalized costs such as real estate taxes paid on behalf of the borrower and loan origination fees, net, when applicable. Cash basis interest and interest income recognized on accrual basis approximate each other. The following table provides an analysis of the aging of the loans by segment, excluding net deferred costs that are past due at December 31, 2015 and December 31, 2014 by class: Aging Analysis December 31, 2015 Loans Receivable > 90 90 Days or Days Past Due 30-59 Days 60-89 Days Greater Past Total Past Total Loans and Past Due Past Due Due Due Current Receivable Accruing (in thousands) Commercial $ 6,887 $ 3,505 $ 6,865 $ 17,257 $ 552,859 $ 570,116 $ - Commercial real estate 1,998 988 9,561 12,547 1,954,149 1,966,696 - Commercial construction - - 1,479 1,479 327,359 328,838 - Residential real estate - - 2,122 2,122 231,568 233,690 - Consumer 4 9 - 13 2,441 2,454 - Total $ 8,889 $ 4,502 $ 20,027 $ 33,418 $ 3,068,376 $ 3,101,794 $ - Aging Analysis December 31, 2014 Loans Receivable > 90 90 Days or Days Past Due 30-59 Days 60-89 Days Greater Past Total Past Total Loans and Past Due Past Due Due Due Current Receivable Accruing (in thousands) Commercial $ 6,060 $ - $ 662 $ 6,722 $ 493,094 $ 499,816 $ 45 Commercial real estate 4,937 638 5,961 11,536 1,622,974 1,634,510 609 Commercial construction - - - - 167,359 167,359 - Residential real estate 1,821 210 3,200 5,231 229,736 234,967 557 Consumer 30 1 - 31 2,848 2,879 - Total $ 12,848 $ 849 $ 9,823 $ 23,520 $ 2,516,011 $ 2,539,531 $ 1,211 The following table details the amount of loans that are evaluated individually, and collectively, for impairment (excluding net deferred costs), acquired with deteriorated quality, and the related portion of the allowance for loan and lease loss that is allocated to each loan portfolio class: December 31, 2015 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (in thousands) Allowance for loan and lease losses: Individually evaluated for impairment $ 6,725 $ - $ - $ - $ - $ - $ 6,725 Collectively evaluated for impairment 4,224 10,926 3,253 976 4 464 19,847 Acquired with deteriorated credit quality - - - - - - - Total $ 10,949 $ 10,926 $ 3,253 $ 976 $ 4 $ 464 $ 26,572 Gross loans Individually evaluated for impairment 85,397 15,517 2,149 3,954 87 - 107,104 Collectively evaluated for impairment 477,641 1,949,404 326,689 229,408 2,367 - 2,985,509 Acquired with deteriorated credit quality 7,078 1,775 - 328 - - 9,181 Total 570,116 1,966,696 328,838 233,690 2,454 - 3,101,794 The tables above include approximately $867 million of acquired loans as of December 31, 2015 reported as collectively evaluated for impairment, of which $672 million were included in the commercial real estate loan segment. December 31, 2014 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (in thousands) Allowance for loan and lease losses: Individually evaluated for impairment $ 111 $ 151 $ - $ - $ - $ - $ 262 Collectively evaluated for impairment 2,972 7,648 1,239 1,113 7 919 13,898 Acquired with deteriorated credit quality - - - - - - - Total $ 3,083 $ 7,799 $ 1,239 $ 1,113 $ 7 $ 919 $ 14,160 Gross loans Individually evaluated for impairment $ 868 $ 9,410 $ - $ 3,072 $ 109 $ - $ 13,459 Collectively evaluated for impairment 491,749 1,623,284 167,359 231,089 2,770 - 2,516,251 Acquired with deteriorated credit quality 7,199 1,816 - 806 - - 9,821 Total $ 499,816 $ 1,634,510 $ 167,359 $ 234,967 $ 2,879 $ - $ 2,539,531 The tables above include approximately $1.2 billion of acquired loans as of December 31, 2014 reported as collectively evaluated for impairment, of which $809 million were included in the commercial real estate loan segment. The Companys allowance for loan and lease losses is analyzed quarterly. Many factors are considered, including growth in the portfolio, delinquencies, nonaccrual loan levels, and other factors inherent in the extension of credit. A summary of the activity in the allowance for loan and lease losses is as follows: Year Ended December 31, 2015 (dollars in thousands) Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total Balance at January 1, 2015 $ 3,083 $ 7,799 $ 1,239 $ 1,113 $ 7 $ 919 $ 14,160 Loans charged-off (101) (406) - - (31) - (538) Recoveries 13 327 - 2 3 - 345 Provision for loan and lease losses 7,954 3,206 2,014 (139) 25 (455) 12,605 Balance at December 31, 2015 $ 10,949 $ 10,926 $ 3,253 $ 976 $ 4 $ 464 $ 26,572 Year Ended December 31, 2014 (dollars in thousands) Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total Balance at January 1, 2014 $ 1,698 $ 5,746 $ 362 $ 990 $ 146 $ 1,391 $ 10,333 Loans charged-off (379) (398) - (159) - - (936) Recoveries 50 - - 19 11 - 80 Provision for loan and lease losses 1,714 2,451 877 263 (150) (472) 4,683 Balance at December 31, 2014 $ 3,083 $ 7,799 $ 1,239 $ 1,113 $ 7 $ 919 $ 14,160 Year Ended December 31, 2013 (dollars in thousands) Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total Balance at January 1, 2013 $ 2,424 $ 5,323 $ 313 $ 1,532 $ 113 $ 532 $ 10,237 Loans charged-off (6) (126) - (175) (22) - (329) Recoveries 41 28 - - 6 - 75 Provision for loan and lease losses (761) 521 49 (367) 49 859 350 Balance at December 31, 2013 $ 1,698 $ 5,746 $ 362 $ 990 $ 146 $ 1,391 $ 10,333 Troubled Debt Restructurings Loans are considered to have been modified in a troubled debt restructuring ("TDRs") when due to a borrowers financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a troubled debt restructuring remains on nonaccrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrowers ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual status. At December 31, 2015, there were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status or were contractually past due in excess of 90 days and still accruing interest, or whose terms have been modified in troubled debt restructurings. As of December 31, 2015, total TDRs were $86.6 million, of which $85.9 million were current and have complied with the terms of their restructured agreement. As of December 31, 2014, total TDRs were $2.8 million, of which $1.8 million were current and have complied with the terms of their restructured agreement. The Company has allocated $4.5 million and $0 in specific allowance for those loans at December 31, 2015 and 2014, respectively. The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended December 31, 2015 (dollars in thousands): Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment Troubled debt restructurings: Commercial 48 $ 78,466 $ 78,466 Commercial real estate 3 5,049 5,049 Commercial construction 1 661 661 Residential real estate 1 110 110 Consumer 1 4 4 Total 54 $ 84,290 $ 84,290 The increase in performing TDRs was due to loans secured by New York City taxi medallions that were modified during the second quarter of 2015. The modifications consisted of a deferral of principal amortization from approximately 25-30 year amortization to interest-only. There was no extension of the loans contractual maturity dates, there was no forgiveness of principal, and the interest rates on these loans were increased from approximately 3%-3.25% to 3.75%. These loans were accruing prior to modification and remained in accrual status post-modification. The $4.5 million in specific allocations associated with taxi medallion lending referred to above was calculated based on the fair value of the collateral, and excludes any consideration for the personal guarantees of borrowers, which provides an additional source of repayment but cannot be relied upon. The valuation per corporate medallion used for the calculation at December 31, 2015 was approximately $800,000. A specific allocation was required at December 31, 2015 primarily due to a decline in the value of taxi medallions. The TDRs described above increased the allowance for loan and lease losses by $4.5 million. There were no charge-offs in connection with a loan modification at the time of modification during the year ended December 31, 2015. There were no troubled debt restructurings for which there was a payment default within twelve months following the modification during the year ended December 31, 2015. The following table presents loans by segment modified as troubled debt restructurings that occurred during the year ended December 31, 2014 (dollars in thousands): Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment Troubled debt restructurings: Commercial 1 $ 672 $ 289 Commercial real estate - - - Commercial construction - - - Residential real estate 2 275 272 Total 3 $ 947 $ 561 The TDRs presented as of December 31, 2014 did not increase the allowance for loan and lease losses and resulted in charge-offs of $333,000 during the year ended December 31, 2014. There were no troubled debt restructurings for which there was a payment default within twelve months following the modification during the year ended December 31, 2014. There were no troubled debt restructurings that occurred during the year ended December 31, 2013. |