Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 20, 2014 | Jun. 28, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'SUFFOLK BANCORP | ' | ' |
Entity Central Index Key | '0000754673 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $184 |
Entity Common Stock, Shares Outstanding | ' | 11,573,014 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CON
CONSOLIDATED STATEMENTS OF CONDITION (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents | ' | ' |
Cash and non-interest-bearing deposits due from banks | $69,065 | $80,436 |
Interest-bearing deposits due from banks | 62,287 | 304,220 |
Federal funds sold | 1,000 | 1,150 |
Total cash and cash equivalents | 132,352 | 385,806 |
Interest-bearing time deposits in other banks | 10,000 | 0 |
Federal Reserve Bank, Federal Home Loan Bank and other stock | 2,863 | 3,043 |
Investment securities: | ' | ' |
Available for sale, at fair value | 400,780 | 402,353 |
Held to maturity (fair value of $12,234 and $8,861, respectively) | 11,666 | 8,035 |
Total investment securities | 412,446 | 410,388 |
Loans | 1,068,848 | 780,780 |
Allowance for loan losses | 17,263 | 17,781 |
Net loans | 1,051,585 | 762,999 |
Loans held-for-sale | 175 | 907 |
Premises and equipment, net | 25,261 | 27,656 |
Bank owned life insurance | 38,755 | 0 |
Deferred taxes | 13,953 | 11,385 |
Income tax receivable | 0 | 5,406 |
Other real estate owned ("OREO") | 0 | 1,572 |
Accrued interest and loan fees receivable | 5,441 | 4,883 |
Goodwill and other intangibles | 2,978 | 2,670 |
Other assets | 4,007 | 5,749 |
TOTAL ASSETS | 1,699,816 | 1,622,464 |
LIABILITIES & STOCKHOLDERS' EQUITY | ' | ' |
Demand deposits | 628,616 | 615,120 |
Saving, N.O.W. and money market deposits | 656,366 | 572,263 |
Time certificates of $100,000 or more | 158,337 | 165,731 |
Other time deposits | 66,742 | 78,000 |
Total deposits | 1,510,061 | 1,431,114 |
Unfunded pension liability | 258 | 7,781 |
Capital leases | 4,612 | 4,688 |
Other liabilities | 17,687 | 14,896 |
TOTAL LIABILITIES | 1,532,618 | 1,458,479 |
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock (par value $2.50; 15,000,000 shares authorized; 13,738,752 shares issued at December 31, 2013, 13,732,085 shares issued at December 31, 2012; 11,573,014 shares outstanding at December 31, 2013, 11,566,347 shares outstanding at December 31, 2012) | 34,348 | 34,330 |
Surplus | 43,280 | 42,628 |
Retained earnings | 102,273 | 89,555 |
Treasury stock at par (2,165,738 shares) | -5,414 | -5,414 |
Accumulated other comprehensive (loss) income, net of tax | -7,289 | 2,886 |
TOTAL STOCKHOLDERS' EQUITY | 167,198 | 163,985 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $1,699,816 | $1,622,464 |
CONSOLIDATED_STATEMENTS_OF_CON1
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Investment securities: | ' | ' |
Held to maturity, fair value | $12,234 | $8,861 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, par value (in dollars per share) | $2.50 | $2.50 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares, issued (in shares) | 13,738,752 | 13,732,085 |
Common stock, shares outstanding (in shares) | 11,573,014 | 11,566,347 |
Treasury stock, shares (in shares) | 2,165,738 | 2,165,738 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INTEREST INCOME | ' | ' | ' |
Loans and loan fees | $46,625 | $48,083 | $61,844 |
U.S. Treasury securities | 0 | 0 | 96 |
U.S. Government agency obligations | 2,012 | 241 | 337 |
Obligations of states and political subdivisions | 5,975 | 6,085 | 6,864 |
Collateralized mortgage obligations | 2,062 | 4,696 | 5,839 |
Mortgage-backed securities | 1,871 | 418 | 30 |
Corporate bonds | 396 | 204 | 0 |
Federal funds sold and interest-bearing deposits due from banks | 591 | 599 | 232 |
Dividends | 146 | 121 | 191 |
Total interest income | 59,678 | 60,447 | 75,433 |
INTEREST EXPENSE | ' | ' | ' |
Saving, N.O.W. and money market deposits | 1,190 | 1,192 | 1,960 |
Time certificates of $100,000 or more | 1,128 | 1,567 | 2,029 |
Other time deposits | 612 | 960 | 1,281 |
Borrowings | 0 | 0 | 655 |
Total interest expense | 2,930 | 3,719 | 5,925 |
Net interest income | 56,748 | 56,728 | 69,508 |
Provision for loan losses | 1,250 | 8,500 | 24,888 |
Net interest income after provision (credit) for loan losses | 55,498 | 48,228 | 44,620 |
NON-INTEREST INCOME | ' | ' | ' |
Service charges on deposit accounts | 3,800 | 3,932 | 3,898 |
Other service charges, commissions and fees | 3,290 | 3,515 | 3,467 |
Fiduciary Fees | 1,084 | 945 | 853 |
Net gain (loss) on sale of securities available for sale | 403 | -217 | 1,648 |
Other-than-temporary impairment ("OTTI") of securities | 0 | 0 | -1,052 |
Net gain on sale of portfolio loans | 445 | 755 | 0 |
Net gain on sale of mortgage loans originated for sale | 1,062 | 1,182 | 405 |
Gain on Visa shares sold | 7,766 | 0 | 0 |
Income from bank owned life insurance | 755 | 0 | 0 |
Other operating income | 902 | 769 | 902 |
Total non-interest income | 19,507 | 10,881 | 10,121 |
OPERATING EXPENSES | ' | ' | ' |
Employee compensation and benefits | 33,090 | 35,879 | 30,914 |
Occupancy expense | 6,496 | 5,809 | 5,794 |
Equipment expense | 2,410 | 2,024 | 1,940 |
Consulting and professional services | 2,663 | 3,126 | 4,320 |
FDIC assessment | 1,645 | 1,573 | 3,069 |
Data processing | 2,390 | 2,404 | 1,531 |
Accounting and audit fees | 504 | 1,057 | 2,312 |
Branch consolidation costs | 2,074 | 0 | 0 |
Reserve and carrying costs related to Visa shares sold | 989 | 0 | 0 |
Other operating expenses | 6,304 | 9,699 | 9,162 |
Total operating expenses | 58,565 | 61,571 | 59,042 |
Income (loss) before income tax expense (benefit) | 16,440 | -2,462 | -4,301 |
Income tax expense (benefit) | 3,722 | -714 | -4,223 |
NET INCOME (LOSS) | $12,718 | ($1,748) | ($78) |
EARNINGS (LOSS) PER COMMON SHARE - BASIC (in dollars per share) | $1.10 | ($0.17) | ($0.01) |
EARNINGS (LOSS) PER COMMON SHARE - DILUTED (in dollars per share) | $1.10 | ($0.17) | ($0.01) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES - BASIC (in shares) | 11,570,731 | 10,248,751 | 9,720,827 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES - DILUTED (in shares) | 11,591,121 | 10,248,751 | 9,720,827 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ' | ' |
Net income (loss) | $12,718 | ($1,748) | ($78) |
Other comprehensive (loss) income, net of taxes and reclassification adjustments: | ' | ' | ' |
Net change in unrealized (loss) gain on securities available for sale arising during the period | -14,648 | -1,320 | 5,636 |
Non-credit loss portion of OTTI of securities | 0 | 0 | -1,039 |
Pension and post-retirement plan benefit obligation | 4,473 | 7,276 | -5,438 |
Total other comprehensive (loss) income, net of taxes | -10,175 | 5,956 | -841 |
Total comprehensive income (loss) | $2,543 | $4,208 | ($919) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income, Net of Tax [Member] | Total |
In Thousands | ||||||
Balance at Dec. 31, 2010 | $34,236 | $23,368 | $91,450 | ($10,005) | ($2,229) | ' |
Private equity offering, net of $2,241 of stock issuance costs | ' | 0 | ' | ' | ' | ' |
Stock-based compensation | ' | 0 | ' | ' | ' | 0 |
Stock options exercised | 12 | 65 | -69 | -8 | ' | ' |
Stock dividend reinvestment | 82 | 577 | ' | ' | ' | ' |
Net income (loss) | ' | ' | -78 | ' | ' | -78 |
Reissuance of 1,839,533 common shares from treasury in connection with private equity offering | ' | ' | ' | 0 | ' | ' |
Other comprehensive (loss) income | ' | ' | ' | ' | -841 | -919 |
Balance at Dec. 31, 2011 | 34,330 | 24,010 | 91,303 | -10,013 | -3,070 | 136,560 |
Private equity offering, net of $2,241 of stock issuance costs | ' | 18,160 | ' | ' | ' | ' |
Stock-based compensation | ' | 458 | ' | ' | ' | 458 |
Stock options exercised | 0 | 0 | 0 | 0 | ' | ' |
Stock dividend reinvestment | 0 | 0 | ' | ' | ' | ' |
Net income (loss) | ' | ' | -1,748 | ' | ' | -1,748 |
Reissuance of 1,839,533 common shares from treasury in connection with private equity offering | ' | ' | ' | 4,599 | ' | ' |
Other comprehensive (loss) income | ' | ' | ' | ' | 5,956 | 4,208 |
Balance at Dec. 31, 2012 | 34,330 | 42,628 | 89,555 | -5,414 | 2,886 | 163,985 |
Private equity offering, net of $2,241 of stock issuance costs | ' | 0 | ' | ' | ' | ' |
Stock-based compensation | ' | 579 | ' | ' | ' | 579 |
Stock options exercised | 18 | 73 | 0 | 0 | ' | ' |
Stock dividend reinvestment | 0 | 0 | ' | ' | ' | ' |
Net income (loss) | ' | ' | 12,718 | ' | ' | 12,718 |
Reissuance of 1,839,533 common shares from treasury in connection with private equity offering | ' | ' | ' | 0 | ' | ' |
Other comprehensive (loss) income | ' | ' | ' | ' | -10,175 | 2,543 |
Balance at Dec. 31, 2013 | $34,348 | $43,280 | $102,273 | ($5,414) | ($7,289) | $167,198 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 |
Surplus [Member] | ' |
Stock issuance costs | $2,241 |
Treasury Stock [Member] | ' |
Reissuance of common shares (in shares) | 1,839,533 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | ' | ' | ' |
NET INCOME (LOSS) | $12,718 | ($1,748) | ($78) |
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES | ' | ' | ' |
Provision for loan losses | 1,250 | 8,500 | 24,888 |
Depreciation and amortization | 3,258 | 2,572 | 2,510 |
Stock-based compensation | 579 | 458 | 0 |
OTTI of securities | 0 | 0 | 1,052 |
Net amortization of premiums | 1,312 | 1,411 | 2,307 |
Originations of mortgage loans for sale | -42,052 | -47,832 | -19,226 |
Proceeds from sale of mortgage loans originated for sale | 47,519 | 49,014 | 19,631 |
Gain on sale of mortgage loans originated for sale | -1,062 | -1,182 | -405 |
Gain on sale of portfolio loans | -445 | -755 | 0 |
Increase in other intangibles | -308 | -233 | -27 |
Deferred tax expense | 3,077 | 3,133 | 0 |
Decrease in income tax receivable | 5,406 | 15 | 0 |
(Increase) decrease in accrued interest and loan fees receivable | -558 | 2,002 | 140 |
Decrease (increase) in other assets | 1,742 | 2,177 | -1,524 |
Adjustment to unfunded pension liability | -63 | 3,147 | 8,473 |
Increase (decrease) in other liabilities | 2,514 | 1,797 | -7,981 |
Income from bank owned life insurance | -755 | 0 | 0 |
Gain on Visa shares sold | -7,766 | 0 | 0 |
Gain on sale of branch building | -404 | 0 | 0 |
Loss on sale and writedowns of OREO | 47 | 600 | 0 |
(Gain) loss on sale of securities available for sale | -403 | 217 | -1,648 |
Net cash (used in) provided by operating activities | 25,606 | 23,293 | 28,112 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Principal payments on investment securities | 55,904 | 32,662 | 32,650 |
Proceeds from sale of investment securities - available for sale | 13,427 | 7,457 | 44,142 |
Maturities of investment securities - available for sale | 24,752 | 33,493 | 30,000 |
Purchases of investment securities - available for sale | -116,403 | -181,789 | -3,287 |
Maturities of investment securities - held to maturity | 1,593 | 2,247 | 2,270 |
Purchases of investment securities - held to maturity | -5,243 | -990 | -1,655 |
Increase in interest-bearing time deposits in other banks | -10,000 | 0 | 0 |
Decrease (increase) in Federal Reserve Bank, Federal Home Loan Bank and other stock | 180 | -507 | 1,727 |
Proceeds from sale of portfolio loans | 7,732 | 56,993 | 0 |
Loan (originations) repayments - net | -300,796 | 100,680 | 128,177 |
Proceeds from sale of Visa shares | 7,766 | 0 | 0 |
Proceeds from sale of branch building | 851 | 0 | 0 |
Proceeds from sale of OREO | 1,525 | 0 | 3,919 |
Increase in bank owned life insurance | -38,000 | 0 | 0 |
Purchases of premises and equipment - net | -1,310 | -2,244 | -2,969 |
Net cash used in investing activities | -358,022 | 48,002 | 234,974 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Net increase (decrease) in deposit accounts | 78,947 | 119,242 | -90,881 |
Net decrease in short-term borrowings | 0 | 0 | -40,000 |
Proceeds from private equity offering, net | 0 | 22,759 | 0 |
Dividends Paid to Stockholders | 0 | 0 | -1,454 |
Proceeds from stock dividend reinvestment | 0 | 0 | 659 |
Proceeds from stock options exercised | 91 | 0 | 0 |
Decrease in capital lease payable | -76 | -49 | 0 |
Net cash provided by (used in) financing activities | 78,962 | 141,952 | -131,676 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -253,454 | 213,247 | 131,410 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 385,806 | 172,559 | 41,149 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 132,352 | 385,806 | 172,559 |
SUPPLEMENTAL DATA: | ' | ' | ' |
Interest paid | 3,007 | 3,830 | 6,168 |
Income taxes paid | 480 | 0 | 0 |
Loans transferred to held-for-sale | 6,383 | 56,843 | 0 |
Loans transferred to OREO | $0 | $372 | $0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization and Nature of Operations — Suffolk Bancorp (the “Company”) was incorporated in 1985 as a bank holding company. The Company currently owns all of the outstanding capital stock of the Suffolk County National Bank of Riverhead (the “Bank”). The Bank was organized under the national banking laws of the United States in 1890. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. The Bank formed the REIT, Suffolk Greenway, Inc., and owns 100% of an insurance agency and two corporations used to acquire foreclosed real estate. The insurance agency and the two corporations used to acquire foreclosed real estate are immaterial to the Company’s operations. All material intercompany accounts and transactions have been eliminated in consolidation. Unless the context otherwise requires, references herein to the Company include the Company and the Bank on a consolidated basis. | |
The accounting and reporting policies of the Company conform to U.S. GAAP and general practices within the banking industry. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. The following describe the most significant of these policies. | |
Cash and Cash Equivalents — For purposes of the consolidated statements of cash flows, cash and due from banks and federal funds sold are considered to be cash equivalents. Generally, federal funds are sold for one-day periods. | |
Investment Securities — The Company reports investment securities in one of the following categories: (i) held to maturity (management has the intent and ability to hold to maturity), which are reported at amortized cost; (ii) trading (held for current resale), which are reported at fair value, with unrealized gains and losses included in earnings; and (iii) available for sale, which are reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity. The Company has classified all of its holdings of investment securities as either held to maturity or available for sale. At the time a security is purchased, a determination is made as to the appropriate classification. | |
Premiums and discounts on investment securities are amortized as expense and accreted as income over the estimated life of the respective security using a method that generally approximates the level-yield method. Gains and losses on the sales of investment securities are recognized upon realization, using the specific identification method and shown separately in the consolidated statements of operations. | |
Management evaluates securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the statement of operations and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
Loans and Loan Interest Income Recognition — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned discounts, deferred loan fees and costs. Unearned discounts on installment loans are credited to income using methods that result in a level yield. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the respective term of the loan without anticipating prepayments. | |
Interest income is accrued on the unpaid loan principal balance. Recognition of interest income is discontinued when reasonable doubt exists as to whether principal or interest due can be collected. Loans of all classes will generally no longer accrue interest when over 90 days past due unless the loan is well-secured and in process of collection. When a loan is placed on non-accrual status, all interest previously accrued, but not collected, is reversed against current-year interest income. Interest received on such loans is applied against principal or interest, according to management’s judgment as to the collectability of the principal, until qualifying for return to accrual status. Loans start accruing interest again when they become current as to principal and interest for at least six months, and when, after a well-documented analysis by management, it has been determined that the loans can be collected in full. For all classes of loans, an impaired loan is defined as a loan for which it is probable that the lender will not collect all amounts due under the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties are considered TDRs and are classified as impaired. Generally, TDRs are initially classified as non-accrual until sufficient time has passed to assess whether the restructured loan will continue to perform. For impaired, accruing loans, interest income is recognized on an accrual basis with cash offsetting the recorded accruals upon receipt. | |
Allowance for Loan Losses - The allowance for loan losses is a valuation allowance for probable incurred losses, increased by the provision for loan losses and recoveries, and decreased by loan charge-offs. For all classes of loans, when a loan, in full or in part, is deemed uncollectible, it is charged against the allowance for loan losses. This happens when the loan is past due and the borrower has not shown the ability or intent to make the loan current, or the borrower does not have sufficient assets to pay the debt, or the value of the collateral is less than the balance of the loan and is not considered likely to improve soon. The allowance for loan losses is determined by a continuous analysis of the loan portfolio. Such analysis includes changes in the size and composition of the portfolio, the Company’s own historical loan losses, industry-wide losses, current and anticipated economic trends, and details about individual loans. It also includes estimates of the actual value of collateral, other possible sources of repayment and estimates that are susceptible to significant changes due to changes in appraisal values of collateral, national and regional economic conditions and other relevant factors. All non-accrual loans over $250 thousand in the commercial and industrial, commercial real estate and real estate construction loan classes and all TDRs are evaluated individually for impairment. Management will use judgment to determine if there are other loans outside of these two categories that fit the definition of impaired. All other loans are generally evaluated as homogeneous pools with similar risk characteristics. In assessing the adequacy of the allowance for loan losses, management reviews the loan portfolio by separate classes that have similar risk and collateral characteristics; e.g., commercial and industrial, commercial real estate, multifamily, real estate construction, residential mortgages, home equity and consumer loans. | |
The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. Specific reserves are established based on an analysis of the most probable sources of repayment and liquidation of collateral. Impaired loans that are collateral dependent are reviewed based on their collateral and the estimated time required to recover the Company’s investment in the loans, as well as the cost of doing so, and the estimate of the recovery. Non-collateral dependent impaired loans are reviewed based on the present value of estimated future cash flows, including balloon payments, if any, using the loan’s effective interest rate. While every impaired loan is evaluated individually, not every loan requires a specific reserve. Specific reserves fluctuate based on changes in the underlying loans, anticipated sources of repayment, and charge-offs. The general component covers non-impaired loans and is based on historical loss experience for each loan class from a rolling twelve quarter period and modifying those percentages, if necessary, after adjusting for current qualitative and environmental factors that reflect changes in the estimated collectability of the loan class not captured by historical loss data. These factors augment actual loss experience and help estimate the probability of loss within the loan portfolio based on emerging or inherent risk trends. These qualitative factors are applied as an adjustment to historical loss rates and require judgments that cannot be subjected to exact mathematical calculation. These adjustments reflect management’s overall estimate of the extent to which current losses on a pool of loans will differ from historical loss experience. These adjustments are subjective estimates and management reviews them on a quarterly basis. TDRs are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. | |
Transfers of Financial Instruments - Transfers of financial assets for which the Bank has surrendered control of the financial assets are accounted for as sales to the extent that consideration other than beneficial interests in the transferred assets is received in exchange. Retained interests in a sale or securitization of financial assets are measured at the date of transfer by allocating the previous carrying amount between the assets transferred and based on their relative estimated fair values. The fair values of retained servicing rights and any other retained interests are determined based on the present value of expected future cash flows associated with those interests and by reference to market prices for similar assets. There were no transfers of financial assets to related or affiliated parties. At December 31, 2013 and 2012, the Bank’s servicing loan portfolio approximated $161 million and $138 million, respectively, which are not included in the accompanying consolidated statements of condition. The carrying value which approximates the estimated fair value of mortgage servicing rights was $2 million as of December 31, 2013 and 2012, and is recorded in goodwill and other intangibles in the Company’s consolidated statements of condition. | |
Loans Held-For-Sale – Loans held-for-sale are carried at the lower of aggregate cost or fair value, based on observable inputs in the secondary market. Changes in fair value of loans held-for-sale are recognized in earnings. | |
Other Real Estate Owned (“OREO”) — Property acquired through foreclosure, or OREO, is initially stated at fair value less estimated selling costs. Losses arising at the time of the acquisition of property are charged against the allowance for loan losses. Any additional write-downs to the carrying value of these assets that may be required, as well as the cost of maintaining and operating these foreclosed properties, are charged to expense. The Company held no OREO at December 31, 2013. The carrying value of OREO at December 31, 2012 was $1.6 million. | |
Premises and Equipment — Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is calculated by the declining-balance or straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the term of the lease or the estimated life of the asset, whichever is shorter. The Bank periodically evaluates impairment of long-lived assets to be held and used or to be disposed of by sale. There was no impairment of long-lived assets as of December 31, 2013 and 2012, respectively. | |
Bank Owned Life Insurance - Bank owned life insurance is recorded at the lower of the cash surrender value or the amount that can be realized under the insurance policy and is included as an asset in the consolidated statements of condition. Changes in the cash surrender value and insurance benefit payments are recorded in non-interest income in the consolidated statements of operations. | |
Goodwill — Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of the acquired business. Goodwill is not amortized but tested for impairment at least annually or when there is a circumstance that would indicate the need to evaluate between annual tests. Based on these tests, there was no impairment of goodwill as of December 31, 2013 and 2012. | |
Allowance for Off-Balance Sheet Credit Risk — The balance of the allowance for off-balance sheet credit risk is determined by management’s estimate of the amount of financial risk in outstanding loan commitments and contingent liabilities such as performance and financial letters of credit. The allowance for off-balance sheet credit risk was $255 thousand at December 31, 2013 and 2012, and is recorded in other liabilities in the Company’s consolidated statements of condition. | |
The Company has financial and performance letters of credit. Financial letters of credit require the Bank to make payment if the customer’s financial condition deteriorates, as defined in the agreements. Performance letters of credit require the Bank to make payments if the customer fails to perform certain non-financial contractual obligations. | |
Income Taxes — Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities, computed using enacted tax rates. Deferred tax assets are recognized if it is more likely than not that a future benefit will be realized. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, the Company considers all relevant positive and negative evidence, including taxable income in carryback years, scheduled reversals of deferred tax liabilities, expected future taxable income and available tax planning strategies. | |
Summary of Retirement Benefits Accounting — The Company’s retirement plan is noncontributory and covers substantially all eligible employees. The plan conforms to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and the Pension Protection Act of 2006, which requires certain funding rules for defined benefit plans. The Company’s policy is to accrue for all pension costs and to fund the maximum amount allowable for tax purposes. Actuarial gains and losses that arise from changes in assumptions concerning future events are amortized over a period that reflects the long-term nature of pension expense used in estimating pension costs. | |
The Company accounts for its retirement plan in accordance with Accounting Standards Codification (“ASC”) 715, “Compensation – Retirement Benefits,” and ASC 960, “Plan Accounting – Defined Benefit Pension Plans,” which require an employer that is a business entity and sponsors one or more single-employer defined benefit plans to recognize the funded status of a benefit plan in its statement of financial position; recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost; measure defined benefit plan assets and obligation as of the date of fiscal year-end statement of financial position (with limited exceptions); and disclose in the notes to financial statements additional information about certain effects of net periodic benefit cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset and obligation. Plan assets and benefit obligations shall be measured as of the date of its statement of financial position and in determining the amount of net periodic benefit cost. An employer is required to use the same date for the measurement of plan assets as for the statement of condition. The Company accrues for post-retirement benefits other than pensions by accruing the cost of providing those benefits to an employee during the years that the employee serves. | |
Stock-Based Compensation — The Company accounts for stock-based compensation on a modified prospective basis with the fair value of grants of employee stock options recognized in the financial statements. | |
Treasury Stock — The balance of treasury stock is computed at par value. Under the par value method, the acquisition cost of treasury shares is compared with the amount received at the time of their original issue. The treasury stock account is debited for the par value (or stated value) of the shares and a pro rata amount of any excess over par (or stated value) on original issuance is charged to the surplus account. Any excess of the acquisition cost over the original issue price is charged to retained earnings. If, however, the original issue price exceeds the acquisition price of the treasury stock, this difference is credited to surplus. | |
Earnings Per Share — Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding, increased by the number of potential common shares that are assumed to have been purchased with the proceeds from the exercise of stock options. These purchases were assumed to have been made at the average market price of the common stock. The average market price is based on the average closing price for the common stock. | |
Comprehensive Income — Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by owners and distributions to owners. Other comprehensive income includes revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income but excluded from net income. Comprehensive income and accumulated other comprehensive income are reported net of related income taxes. Accumulated other comprehensive income for the Bank consists of unrealized holding gains or losses on securities available for sale and gains or losses on the unfunded projected benefit obligation of the pension plan. | |
Derivatives - Derivatives are contracts between counterparties that specify conditions under which settlements are to be made. The only derivatives held by the Company are swap contracts with the purchaser of its Visa Class B shares. The Company records its derivatives on the balance sheet at fair value. The Company’s derivatives do not qualify for hedge accounting. As a result, changes in fair value are recognized in earnings in the period in which they occur. (See also Note 3. Investment Securities contained herein.) | |
Fair Value Measurements — Fair value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability in an exchange. The definition of fair value includes the exchange price, which is the price in an orderly transaction between market participants to sell an asset or transfer a liability in the principal market for the asset or liability. Market participant assumptions include assumptions about risk, the risk inherent in a particular valuation technique used to measure fair value and/or the risk inherent in the inputs to the valuation technique, as well as the effect of credit risk on the fair value of liabilities. | |
Segment Reporting — ASC 28, “Segment Reporting,” requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate and their major customers. The Company is a community bank which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers as opposed to building specific lines of business. As a result, at December 31, 2013 and 2012, the Company, the only reportable segment, is not organized around discernible lines of business and prefers to work as an integrated unit to customize solutions for its customers, with business line emphasis and product offerings changing over time as needs and demands change. | |
Recent Accounting Guidance – In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Topic 310), “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Management intends to adopt ASU 2014-04 on January 1, 2015 and does not believe that the adoption will have a material effect on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740), “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” to clarify the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company’s adoption of ASU 2013-11 on January 1, 2014 did not have a material effect on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220), “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This standard is effective prospectively for public entities for annual and interim reporting periods beginning after December 15, 2012. Being disclosure-related only, the Company’s adoption of ASU 2013-02 on January 1, 2013 did not have a material effect on the Company’s results of operations or financial condition. | |
Reclassifications — Certain reclassifications have been made to prior period information in order to conform to the current period’s presentation. Such reclassifications had no impact on the Company’s consolidated results of operations or financial condition. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") [Abstract] | ' | ||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") | ' | ||||||||||||||||||||||||
2. ACCUMULATED OTHER COMPREHENSIVE INCOME (“AOCI”) | |||||||||||||||||||||||||
The changes in the Company’s AOCI by component, net of tax, for the years ended December 31, 2013 and 2012 follow (in thousands). The decrease in net unrealized gains on available for sale securities for the year ended December 31, 2013 resulted solely from the negative impact of higher interest rates in 2013. | |||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||||||||||
Unrealized Gains | Pension and Post- | Total | Unrealized Gains | Pension and Post- | Total | ||||||||||||||||||||
and Losses on | Retirement Plan | and Losses on | Retirement Plan | ||||||||||||||||||||||
Available for Sale | Items | Available for Sale | Items | ||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||
Beginning balance | $ | 10,553 | $ | (7,667 | ) | $ | 2,886 | $ | 11,873 | $ | (14,943 | ) | $ | (3,070 | ) | ||||||||||
Other comprehensive (loss) income before reclassifications | (14,391 | ) | 4,473 | (9,918 | ) | (1,458 | ) | 7,276 | 5,818 | ||||||||||||||||
Amounts reclassified from AOCI | (257 | ) | - | (257 | ) | 138 | - | 138 | |||||||||||||||||
Net other comprehensive (loss) income | (14,648 | ) | 4,473 | (10,175 | ) | (1,320 | ) | 7,276 | 5,956 | ||||||||||||||||
Ending balance | $ | (4,095 | ) | $ | (3,194 | ) | $ | (7,289 | ) | $ | 10,553 | $ | (7,667 | ) | $ | 2,886 | |||||||||
The table below presents reclassifications out of AOCI for the year ended December 31, 2013 (in thousands). | |||||||||||||||||||||||||
Amount Reclassified | |||||||||||||||||||||||||
from AOCI | |||||||||||||||||||||||||
Details about AOCI Components | Year Ended | Affected Line Item in the Statement Where Net Income is Presented | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Unrealized gains and losses on available for sale securities | $ | 403 | Net gain (loss) on sale of securities available for sale | ||||||||||||||||||||||
(146 | ) | Income tax expense (benefit) | |||||||||||||||||||||||
Total reclassifications, net of tax | $ | 257 |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | ' | ||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | ' | ||||||||||||||||||||||||||||||||
3. INVESTMENT SECURITIES | |||||||||||||||||||||||||||||||||
The amortized cost, estimated fair value and gross unrealized gains and losses of the Company’s investment securities available for sale and held to maturity at December 31, 2013 and 2012 were as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | Gross | Gross | Estimated | ||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | - | $ | - | $ | - | $ | - | $ | 500 | $ | - | $ | - | $ | 500 | |||||||||||||||||
U.S. Government agency securities | 109,315 | - | (9,220 | ) | 100,095 | 65,085 | 70 | (77 | ) | 65,078 | |||||||||||||||||||||||
Obligations of states and political subdivisions | 148,664 | 8,499 | - | 157,163 | 155,121 | 13,314 | - | 168,435 | |||||||||||||||||||||||||
Collateralized mortgage obligations | 30,335 | 557 | (788 | ) | 30,104 | 87,624 | 2,148 | (80 | ) | 89,692 | |||||||||||||||||||||||
Mortgage-backed securities | 103,332 | 19 | (5,584 | ) | 97,767 | 61,750 | 766 | (66 | ) | 62,450 | |||||||||||||||||||||||
Corporate bonds | 15,565 | 264 | (178 | ) | 15,651 | 15,701 | 497 | - | 16,198 | ||||||||||||||||||||||||
Total available for sale securities | 407,211 | 9,339 | (15,770 | ) | 400,780 | 385,781 | 16,795 | (223 | ) | 402,353 | |||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 11,666 | 655 | (87 | ) | 12,234 | 8,035 | 826 | - | 8,861 | ||||||||||||||||||||||||
Total investment securities | $ | 418,877 | $ | 9,994 | $ | (15,857 | ) | $ | 413,014 | $ | 393,816 | $ | 17,621 | $ | (223 | ) | $ | 411,214 | |||||||||||||||
The amortized cost, contractual maturities and estimated fair value of the Company’s investment securities at December 31, 2013 (in thousands) are presented in the table below. CMOs and MBS assume maturity dates pursuant to average lives. | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 12,171 | $ | 12,328 | |||||||||||||||||||||||||||||
Due from one to five years | 131,422 | 137,011 | |||||||||||||||||||||||||||||||
Due from five to ten years | 240,768 | 231,083 | |||||||||||||||||||||||||||||||
Due after ten years | 22,850 | 20,358 | |||||||||||||||||||||||||||||||
Total securities available for sale | 407,211 | 400,780 | |||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | 824 | 833 | |||||||||||||||||||||||||||||||
Due from one to five years | 6,618 | 7,251 | |||||||||||||||||||||||||||||||
Due from five to ten years | 205 | 218 | |||||||||||||||||||||||||||||||
Due after ten years | 4,019 | 3,932 | |||||||||||||||||||||||||||||||
Total securities held to maturity | 11,666 | 12,234 | |||||||||||||||||||||||||||||||
Total investment securities | $ | 418,877 | $ | 413,014 | |||||||||||||||||||||||||||||
As a member of the Federal Reserve System and the FHLB, the Bank owns FRB and FHLB stock with a book value of $1.4 million and $1.5 million, respectively, at December 31, 2013. At December 31, 2012, the Bank owned FRB and FHLB stock with a book value of $1.4 million and $1.6 million, respectively. There is no public market for these shares. The last dividends paid were 6.00% on FRB stock in December 2013 and 4.00% on FHLB stock in November 2013. | |||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, investment securities carried at $292 million and $286 million, respectively, were pledged for trust deposits, public funds on deposit and as collateral for the derivative swap contracts. | |||||||||||||||||||||||||||||||||
The proceeds from sales of securities available for sale and the associated net realized gains (losses) are shown below for the years indicated (in thousands): | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Proceeds | $ | 13,427 | $ | 7,457 | $ | 44,142 | |||||||||||||||||||||||||||
Gross realized gains | $ | 403 | $ | - | $ | 1,701 | |||||||||||||||||||||||||||
Gross realized losses | - | 217 | 53 | ||||||||||||||||||||||||||||||
Net realized gains (losses) | $ | 403 | $ | (217 | ) | $ | 1,648 | ||||||||||||||||||||||||||
Information pertaining to securities with unrealized losses at December 31, 2013 and 2012, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (in thousands): | |||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||||||||||
31-Dec-13 | Fair value | Losses | Fair value | Losses | Fair value | Losses | |||||||||||||||||||||||||||
U.S. Government agency securities | $ | 86,590 | $ | 7,726 | $ | 13,505 | $ | 1,494 | $ | 100,095 | $ | 9,220 | |||||||||||||||||||||
Obligations of states and political subdivisions | 3,932 | 87 | - | - | 3,932 | 87 | |||||||||||||||||||||||||||
Collateralized mortgage obligations | 2,935 | 160 | 5,713 | 628 | 8,648 | 788 | |||||||||||||||||||||||||||
Mortgage-backed securities | 84,869 | 4,850 | 12,637 | 734 | 97,506 | 5,584 | |||||||||||||||||||||||||||
Corporate bonds | 8,681 | 178 | - | - | 8,681 | 178 | |||||||||||||||||||||||||||
Total | $ | 187,007 | $ | 13,001 | $ | 31,855 | $ | 2,856 | $ | 218,862 | $ | 15,857 | |||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||||||||||
31-Dec-12 | Fair value | Losses | Fair value | Losses | Fair value | Losses | |||||||||||||||||||||||||||
U.S. Government agency securities | $ | 28,958 | $ | 77 | $ | - | $ | - | $ | 28,958 | $ | 77 | |||||||||||||||||||||
Collateralized mortgage obligations | 7,878 | 80 | - | - | 7,878 | 80 | |||||||||||||||||||||||||||
Mortgage-backed securities | 14,098 | 66 | - | - | 14,098 | 66 | |||||||||||||||||||||||||||
Total | $ | 50,934 | $ | 223 | $ | - | $ | - | $ | 50,934 | $ | 223 | |||||||||||||||||||||
The Company’s management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. All of the Company’s investment securities classified as available-for-sale or held-to-maturity are evaluated for OTTI under FASB ASC 320, “Accounting for Certain Investments in Debt and Equity Securities.” In determining OTTI under ASC 320, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an OTTI decline exists involves a high degree of subjectivity and judgment and is based on information available to management at a point in time. An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. | |||||||||||||||||||||||||||||||||
When an OTTI occurs, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If an entity intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the OTTI is recognized in earnings equal to the entire difference between the investment’s amortized cost and its estimated fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost less any current-period loss, the OTTI is separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable tax benefit. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. | |||||||||||||||||||||||||||||||||
The securities at unrealized losses for twelve months or longer in the table above are all issued or guaranteed by U.S. Government agencies or sponsored enterprises. The unrealized losses resulted solely from the negative impact of higher interest rates in 2013. | |||||||||||||||||||||||||||||||||
Upon review of the considerations mentioned here, no OTTI was deemed to be warranted at December 31, 2013. | |||||||||||||||||||||||||||||||||
The Bank was a member of the Visa USA payment network and was issued Class B shares upon Visa’s initial public offering in March 2008. The Visa Class B shares are transferable only under limited circumstances until they can be converted into shares of the publicly traded class of stock. This conversion cannot happen until the settlement of certain litigation, which is indemnified by Visa members. Since its initial public offering, Visa has funded a litigation reserve based upon a change in the ratio for conversion of Visa Class B shares into Visa Class A shares. At its discretion, Visa may continue to increase the conversion rate in connection with any settlements in excess of amounts then in escrow for that purpose and reduce the conversion rate to the extent that it adds any funds to the escrow in the future. Based on the existing transfer restriction and the uncertainty of the litigation, the Company has recorded its Visa Class B shares on its balance sheet at zero value. | |||||||||||||||||||||||||||||||||
In 2013, the Bank sold 100,000 Visa Class B shares to another Visa USA member financial institution at a gross pre-tax gain of approximately $7.8 million which was recorded in non-interest income in the Company’s statement of operations. In conjunction with the sale, the Company entered into derivative swap contracts with the purchaser of these Visa Class B shares which provide for settlements between the purchaser and the Company based upon a change in the ratio for conversion of Visa Class B shares into Visa Class A shares. | |||||||||||||||||||||||||||||||||
The Company has recorded $932 thousand in operating expenses and in other liabilities on the balance sheet, representing the estimate of the Company’s exposure to the settlement of the Visa litigation or the derivative liability. A relatively high degree of subjectivity is used in estimating the fair value of this derivative liability, but management believes that the estimate of its fair value is reasonable based on current information. The present value of estimated future fees to be paid to the derivative counterparty, or carrying costs, calculated by reference to the market price of the Visa Class A shares at a fixed rate of interest are expensed as incurred. For the year ended December 31, 2013, $57 thousand in such carrying costs was expensed. | |||||||||||||||||||||||||||||||||
Management believes that the estimate of the Company’s exposure to the Visa indemnification and fees associated with the derivatives are adequate based on current information. However, future developments in the litigation could require potentially significant changes to the estimate. | |||||||||||||||||||||||||||||||||
The Company has pledged U.S. Government agency securities held in its available for sale portfolio, with a market value of approximately $2.6 million at December 31, 2013, as collateral for the derivative swap contracts. | |||||||||||||||||||||||||||||||||
At December 31, 2013, the Company still owned 38,638 Visa Class B shares subsequent to the sales described here. Based on the existing transfer restriction and the uncertainty of the litigation, these Visa Class B shares continue to be carried on the Company’s balance sheet at zero value. Upon termination of the existing transfer restriction and settlement of the litigation, and to the extent that the Company continues to own such Visa Class B shares in the future, the Company expects to record its Visa Class B shares at fair value. |
LOANS
LOANS | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
LOANS [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||||||||||
4. LOANS | |||||||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, net loans disaggregated by class consisted of the following (in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 171,199 | $ | 168,709 | |||||||||||||||||||||||||||||||||
Commercial real estate | 469,357 | 360,010 | |||||||||||||||||||||||||||||||||||
Multifamily | 184,624 | 9,261 | |||||||||||||||||||||||||||||||||||
Real estate construction | 6,565 | 15,469 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 169,552 | 146,575 | |||||||||||||||||||||||||||||||||||
Home equity | 57,112 | 66,468 | |||||||||||||||||||||||||||||||||||
Consumer | 10,439 | 14,288 | |||||||||||||||||||||||||||||||||||
Gross loans | 1,068,848 | 780,780 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | (17,263 | ) | (17,781 | ) | |||||||||||||||||||||||||||||||||
Net loans at end of period | $ | 1,051,585 | $ | 762,999 | |||||||||||||||||||||||||||||||||
The Bank’s real estate loans and loan commitments are primarily for properties located throughout Long Island, New York. Repayment of these loans is dependent in part upon the overall economic health of the Company’s market area and current real estate values. The Bank considers the credit circumstances, the nature of the project and loan to value ratios for all real estate loans. | |||||||||||||||||||||||||||||||||||||
The Bank makes loans to its directors and executive officers, and other related parties, in the ordinary course of its business. Loans made to directors and executive officers, either directly or indirectly, totaled $20 million and $21 million at December 31, 2013 and 2012, respectively. New loans totaling $52 million and $44 million were extended and payments of $53 million and $44 million were received during 2013 and 2012, respectively, on these loans. | |||||||||||||||||||||||||||||||||||||
The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. | |||||||||||||||||||||||||||||||||||||
A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and classified as impaired. Generally, TDRs are initially classified as non-accrual until sufficient time has passed to assess whether the restructured loan will continue to perform. Generally, the Company returns a TDR to accrual status upon six months of performance under the new terms. | |||||||||||||||||||||||||||||||||||||
Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |||||||||||||||||||||||||||||||||||||
Management has determined that all TDRs and all non-accrual loans are impaired; however, non-accrual loans with an impaired balance of $250 thousand or less are evaluated under ASC 450 with other groups of smaller or homogeneous loans with similar risk characteristics. Management will use judgment to determine if there are other loans outside of these two categories that fit the definition of impaired. If a loan is impaired, a specific reserve may be recorded so that the loan is reported, net, at the present value of estimated future cash flows including balloon payments, if any, using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of homogeneous loans with smaller individual balances, such as consumer and residential real estate loans, are generally evaluated collectively for impairment, and accordingly, are not separately identified for impairment disclosures. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be collateral-dependent, the loan is reported at the fair value of the collateral net of estimated costs to sell. For TDRs that subsequently default, the Company determines the allowance amount in accordance with its accounting policy for the allowance for loan losses. | |||||||||||||||||||||||||||||||||||||
The general component of the allowance covers non-impaired loans and is based on historical loss experience, adjusted for qualitative factors. The historical loss experience is determined by loan class, and is based on the actual loss history experienced by the Company over a rolling twelve quarter period. This actual loss experience is supplemented with other qualitative factors based on the risks present for each loan class. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability, and depth of lending management and other relevant staff; local, regional and national economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following loan classes have been identified: commercial and industrial, commercial real estate, multifamily, real estate construction, residential mortgages, home equity and consumer loans. | |||||||||||||||||||||||||||||||||||||
The qualitative factors utilized by the Company in computing its allowance for loan losses are determined based on the various risk characteristics of each loan class. Relevant risk characteristics are as follows: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial loans – Loans in this class are made to businesses. Generally these loans are secured by assets of the business and repayment is expected from the cash flows of the business. A weakened economy and resultant decreased consumer and/or business spending will have an effect on the credit quality in this loan class. | |||||||||||||||||||||||||||||||||||||
Commercial real estate loans – Loans in this class include income‑producing investment properties and owner-occupied real estate used for business purposes. The underlying properties are generally located largely in the Company’s primary market area. The cash flows of the income producing investment properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on credit quality. Generally, management seeks to obtain annual financial information for borrowers with loans in excess of $250 thousand in this category. In the case of owner-occupied real estate used for business purposes, a weakened economy and resultant decreased consumer and/or business spending will have an adverse effect on credit quality. | |||||||||||||||||||||||||||||||||||||
Multifamily loans – Loans in this class are primarily concentrated in the five boroughs of New York City and target buildings with stabilized rent flows. It has been well-established that the incidence of loss in multifamily loan transactions is lower than almost all other loan categories as their performance over time has shown limited defaults. The property value for these buildings is directly attributable to the cash flow from rents and the rate of return investors need on their invested capital. Rental rates are a function of demand for apartments and the vacancy rates in New York City have been at historical lows. | |||||||||||||||||||||||||||||||||||||
Real estate construction loans – Loans in this class primarily include land loans to local individuals, contractors and developers for developing the land for sale or for the purpose of making improvements thereon. Repayment is derived from sale of the lots/ units including any pre-sold units. Credit risk is affected by market conditions, time to sell at an adequate price and cost overruns. To a lesser extent this class includes commercial development projects the Company finances, which in most cases require interest only during construction, and then convert to permanent financing. Credit risk is affected by construction delays, cost overruns, market conditions and the availability of permanent financing, to the extent such permanent financing is not being provided by us. | |||||||||||||||||||||||||||||||||||||
Residential mortgages and home equity loans – Loans in these classes are made to and secured by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this loan class. The Bank generally does not originate loans with a loan-to-value ratio greater than 80% and does not grant sub-prime loans. | |||||||||||||||||||||||||||||||||||||
Consumer loans – Loans in this class may be either secured or unsecured and repayment is dependent on the credit quality of the individual borrower and, if applicable, sale of the collateral securing the loan (such as automobiles and manufactured homes). Therefore, the overall health of the economy, including unemployment rates and housing prices, will have a significant effect on the credit quality in this loan class. | |||||||||||||||||||||||||||||||||||||
For performing loans, an estimate of adequacy of the general component of the allowance is made by applying qualitative factors specific to the portfolio to the period-end balances. Consideration is also given to the type and collateral of the loans with particular attention paid to commercial real estate construction loans, due to the inherent risk of this type of loan. Specific and general reserves are available for any identified loss. | |||||||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, the ending balance in the allowance for loan losses disaggregated by class and impairment methodology is as follows (in thousands). Also in the tables below are total loans at December 31, 2013 and 2012 disaggregated by class and impairment methodology (in thousands). | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Commercial real estate | Multifamily | Real estate construction | Residential | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
and industrial | mortgages | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 41 | $ | - | $ | - | $ | - | $ | 709 | $ | 93 | $ | 102 | $ | - | $ | 945 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 2,574 | 6,626 | 2,159 | 88 | 1,754 | 652 | 139 | 2,326 | 16,318 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,615 | $ | 6,626 | $ | 2,159 | $ | 88 | $ | 2,463 | $ | 745 | $ | 241 | $ | 2,326 | $ | 17,263 | |||||||||||||||||||
Loan balances: | |||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 7,754 | $ | 11,821 | $ | - | $ | - | $ | 5,049 | $ | 1,082 | $ | 284 | $ | - | $ | 25,990 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 163,445 | 457,536 | 184,624 | 6,565 | 164,503 | 56,030 | 10,155 | - | 1,042,858 | ||||||||||||||||||||||||||||
Ending balance | $ | 171,199 | $ | 469,357 | $ | 184,624 | $ | 6,565 | $ | 169,552 | $ | 57,112 | $ | 10,439 | $ | - | $ | 1,068,848 | |||||||||||||||||||
31-Dec-12 | Commercial real estate | Multifamily | Real estate construction | Residential mortgages | Home equity | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||||
and industrial | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 340 | $ | 22 | $ | - | $ | 1 | $ | 575 | $ | 86 | $ | - | $ | - | $ | 1,024 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 5,841 | 5,977 | 150 | 140 | 1,001 | 821 | 189 | 2,638 | 16,757 | ||||||||||||||||||||||||||||
Ending balance | $ | 6,181 | $ | 5,999 | $ | 150 | $ | 141 | $ | 1,576 | $ | 907 | $ | 189 | $ | 2,638 | $ | 17,781 | |||||||||||||||||||
Loan balances: | |||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,369 | $ | 9,443 | $ | - | $ | 1,961 | $ | 4,660 | $ | 502 | $ | 21 | $ | - | $ | 26,956 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 158,340 | 350,567 | 9,261 | 13,508 | 141,915 | 65,966 | 14,267 | - | 753,824 | ||||||||||||||||||||||||||||
Ending balance | $ | 168,709 | $ | 360,010 | $ | 9,261 | $ | 15,469 | $ | 146,575 | $ | 66,468 | $ | 14,288 | $ | - | $ | 780,780 | |||||||||||||||||||
At December 31, 2013 and 2012, past due loans disaggregated by class were as follows (in thousands). | |||||||||||||||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 30 - 59 days | 60 - 89 days | 90 days and over | Total | Current | Total | |||||||||||||||||||||||||||||||
Commercial and industrial | $ | 13 | $ | - | $ | 5,014 | $ | 5,027 | $ | 166,172 | $ | 171,199 | |||||||||||||||||||||||||
Commercial real estate | 631 | - | 7,492 | 8,123 | 461,234 | 469,357 | |||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 184,624 | 184,624 | |||||||||||||||||||||||||||||||
Real estate construction | - | - | - | - | 6,565 | 6,565 | |||||||||||||||||||||||||||||||
Residential mortgages | 1,535 | 339 | 1,897 | 3,771 | 165,781 | 169,552 | |||||||||||||||||||||||||||||||
Home equity | 795 | 100 | 647 | 1,542 | 55,570 | 57,112 | |||||||||||||||||||||||||||||||
Consumer | 75 | - | 133 | 208 | 10,231 | 10,439 | |||||||||||||||||||||||||||||||
Total | $ | 3,049 | $ | 439 | $ | 15,183 | $ | 18,671 | $ | 1,050,177 | $ | 1,068,848 | |||||||||||||||||||||||||
% of Total Loans | 0.3 | % | 0 | % | 1.4 | % | 1.7 | % | 98.3 | % | 100 | % | |||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||||||
31-Dec-12 | 30 - 59 days | 60 - 89 days | 90 days and over | Total | Current | Total | |||||||||||||||||||||||||||||||
Commercial and industrial | $ | 6,591 | $ | 1,274 | $ | 6,529 | $ | 14,394 | $ | 154,315 | $ | 168,709 | |||||||||||||||||||||||||
Commercial real estate | 1,145 | 329 | 5,192 | 6,666 | 353,344 | 360,010 | |||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 9,261 | 9,261 | |||||||||||||||||||||||||||||||
Real estate construction | 1,382 | - | 1,961 | 3,343 | 12,126 | 15,469 | |||||||||||||||||||||||||||||||
Residential mortgages | 2,867 | 6 | 2,466 | 5,339 | 141,236 | 146,575 | |||||||||||||||||||||||||||||||
Home equity | 261 | 100 | 266 | 627 | 65,841 | 66,468 | |||||||||||||||||||||||||||||||
Consumer | 189 | 18 | 21 | 228 | 14,060 | 14,288 | |||||||||||||||||||||||||||||||
Total | $ | 12,435 | $ | 1,727 | $ | 16,435 | $ | 30,597 | $ | 750,183 | $ | 780,780 | |||||||||||||||||||||||||
% of Total Loans | 1.6 | % | 0.2 | % | 2.1 | % | 3.9 | % | 96.1 | % | 100 | % | |||||||||||||||||||||||||
The following table presents the Company’s impaired loans disaggregated by class for the years ended December 31, 2013 and 2012 (in thousands). | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Unpaid | Recorded | Allowance | Unpaid | Recorded | Allowance | ||||||||||||||||||||||||||||||||
Principal | Balance | Allocated | Principal | Balance | Allocated | ||||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 6,711 | $ | 6,711 | $ | - | $ | 7,913 | $ | 7,492 | $ | - | |||||||||||||||||||||||||
Commercial real estate | 12,239 | 11,821 | - | 8,859 | 7,282 | - | |||||||||||||||||||||||||||||||
Real estate construction | - | - | - | 1,334 | 1,305 | - | |||||||||||||||||||||||||||||||
Residential mortgages | 2,305 | 2,176 | - | 1,918 | 1,788 | - | |||||||||||||||||||||||||||||||
Home equity | 891 | 891 | - | 418 | 416 | - | |||||||||||||||||||||||||||||||
Consumer | 25 | 9 | - | 21 | 21 | - | |||||||||||||||||||||||||||||||
Subtotal | 22,171 | 21,608 | - | 20,463 | 18,304 | - | |||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,043 | 1,043 | 41 | 2,884 | 2,877 | 340 | |||||||||||||||||||||||||||||||
Commercial real estate | - | - | - | 2,161 | 2,161 | 22 | |||||||||||||||||||||||||||||||
Real estate construction | - | - | - | 656 | 656 | 1 | |||||||||||||||||||||||||||||||
Residential mortgages | 2,873 | 2,873 | 709 | 3,015 | 2,872 | 575 | |||||||||||||||||||||||||||||||
Home equity | 328 | 191 | 93 | 86 | 86 | 86 | |||||||||||||||||||||||||||||||
Consumer | 274 | 275 | 102 | - | - | - | |||||||||||||||||||||||||||||||
Subtotal | 4,518 | 4,382 | 945 | 8,802 | 8,652 | 1,024 | |||||||||||||||||||||||||||||||
Total | $ | 26,689 | $ | 25,990 | $ | 945 | $ | 29,265 | $ | 26,956 | $ | 1,024 | |||||||||||||||||||||||||
The following table presents the Company’s average recorded investment in impaired loans and the related interest income recognized disaggregated by class for the years ended December 31, 2013, 2012 and 2011 (in thousands). No interest income was recognized on a cash basis on impaired loans for any of the periods presented. | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||
Average | Interest income | Average | Interest income | Average | Interest income | ||||||||||||||||||||||||||||||||
recorded | recognized on | recorded | recognized on | recorded | recognized on | ||||||||||||||||||||||||||||||||
investment in | impaired loans | investment in | impaired loans | investment in | impaired loans | ||||||||||||||||||||||||||||||||
impaired loans | impaired loans | impaired loans | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 12,065 | $ | 800 | $ | 23,215 | $ | 447 | $ | 25,179 | $ | 1,422 | |||||||||||||||||||||||||
Commercial real estate | 11,556 | 1,041 | 38,477 | 501 | 55,449 | 2,970 | |||||||||||||||||||||||||||||||
Real estate construction | 488 | 114 | 13,681 | 410 | 30,641 | - | |||||||||||||||||||||||||||||||
Residential mortgages | 4,970 | 102 | 9,538 | 127 | 6,956 | - | |||||||||||||||||||||||||||||||
Home equity | 814 | 15 | 2,607 | 13 | 3,369 | - | |||||||||||||||||||||||||||||||
Consumer | 235 | 22 | 429 | - | 337 | - | |||||||||||||||||||||||||||||||
Total | $ | 30,128 | $ | 2,094 | $ | 87,947 | $ | 1,498 | $ | 121,931 | $ | 4,392 | |||||||||||||||||||||||||
The following table presents a summary of non-performing assets for each period (in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 15,183 | $ | 16,435 | |||||||||||||||||||||||||||||||||
Non-accrual loans held-for-sale | - | 907 | |||||||||||||||||||||||||||||||||||
Loans 90 days past due and still accruing | - | - | |||||||||||||||||||||||||||||||||||
OREO | - | 1,572 | |||||||||||||||||||||||||||||||||||
Total non-performing assets | $ | 15,183 | $ | 18,914 | |||||||||||||||||||||||||||||||||
TDRs accruing interest | $ | 10,647 | $ | 9,954 | |||||||||||||||||||||||||||||||||
TDRs non-accruing | $ | 5,438 | $ | 6,650 | |||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, non-accrual loans disaggregated by class were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Non- | % of | Total Loans | % of | Non- | % of | Total | % of | ||||||||||||||||||||||||||||||
accrual | Total | Total | accrual | Total | Loans | Total | |||||||||||||||||||||||||||||||
loans | Loans | loans | Loans | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 5,014 | 33 | % | $ | 171,199 | 0.4 | % | $ | 6,529 | 39.8 | % | $ | 168,709 | 0.8 | % | |||||||||||||||||||||
Commercial real estate | 7,492 | 49.3 | 469,357 | 0.7 | 5,192 | 31.6 | 360,010 | 0.7 | |||||||||||||||||||||||||||||
Multifamily | - | - | 184,624 | - | - | - | 9,261 | - | |||||||||||||||||||||||||||||
Real estate construction | - | - | 6,565 | - | 1,961 | 11.9 | 15,469 | 0.3 | |||||||||||||||||||||||||||||
Residential mortgages | 1,897 | 12.5 | 169,552 | 0.2 | 2,466 | 15 | 146,575 | 0.3 | |||||||||||||||||||||||||||||
Home equity | 647 | 4.3 | 57,112 | 0.1 | 266 | 1.6 | 66,468 | - | |||||||||||||||||||||||||||||
Consumer | 133 | 0.9 | 10,439 | - | 21 | 0.1 | 14,288 | - | |||||||||||||||||||||||||||||
Total | $ | 15,183 | 100 | % | $ | 1,068,848 | 1.4 | % | $ | 16,435 | 100 | % | $ | 780,780 | 2.1 | % | |||||||||||||||||||||
The following table presents the collateral value securing non-accrual loans for each period (in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Principal | Collateral | Principal | Collateral | ||||||||||||||||||||||||||||||||||
Balance | Value | Balance | Value | ||||||||||||||||||||||||||||||||||
Commercial and industrial (1) | $ | 5,014 | $ | 3,750 | $ | 6,529 | $ | 4,400 | |||||||||||||||||||||||||||||
Commercial real estate | 7,492 | 13,050 | 5,192 | 12,675 | |||||||||||||||||||||||||||||||||
Real estate construction | - | - | 1,961 | 3,661 | |||||||||||||||||||||||||||||||||
Residential mortgages | 1,897 | 3,764 | 2,466 | 5,141 | |||||||||||||||||||||||||||||||||
Home equity | 647 | 3,072 | 266 | 849 | |||||||||||||||||||||||||||||||||
Consumer | 133 | - | 21 | - | |||||||||||||||||||||||||||||||||
Total | $ | 15,183 | $ | 23,636 | $ | 16,435 | $ | 26,726 | |||||||||||||||||||||||||||||
(1) Repayment of commercial and industrial loans is expected primarily from the cash flow of the business. The collateral typically securing these loans is a lien on all corporate assets via a blanket UCC filing and does not usually include real estate. For purposes of this disclosure, the Company has ascribed no value to the non-real estate collateral for this class of loans. | |||||||||||||||||||||||||||||||||||||
Additional interest income of approximately $521 thousand, $854 thousand and $4.3 million would have been recorded during the years ended December 31, 2013, 2012 and 2011, respectively, if non-accrual loans had performed in accordance with their original terms. | |||||||||||||||||||||||||||||||||||||
The following summarizes the activity in the allowance for loan losses disaggregated by class for the periods indicated (in thousands): | |||||||||||||||||||||||||||||||||||||
Commercial | Commercial real estate | Multifamily | Real estate construction | Residential mortgages | Home equity | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
and industrial | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 6,181 | $ | 5,999 | $ | 150 | $ | 141 | $ | 1,576 | $ | 907 | $ | 189 | $ | 2,638 | $ | 17,781 | |||||||||||||||||||
Charge-offs | (2,867 | ) | (383 | ) | - | - | (126 | ) | (558 | ) | (166 | ) | - | (4,100 | ) | ||||||||||||||||||||||
Recoveries | 2,077 | 97 | - | - | 5 | 32 | 121 | - | 2,332 | ||||||||||||||||||||||||||||
(Credit) provision for loan losses | (2,776 | ) | 913 | 2,009 | (53 | ) | 1,008 | 364 | 97 | (312 | ) | 1,250 | |||||||||||||||||||||||||
Balance at end of period | $ | 2,615 | $ | 6,626 | $ | 2,159 | $ | 88 | $ | 2,463 | $ | 745 | $ | 241 | $ | 2,326 | $ | 17,263 | |||||||||||||||||||
Commercial real estate | Multifamily | Real estate construction | Residential mortgages | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||||
and industrial | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 25,047 | $ | 10,470 | $ | 559 | $ | 623 | $ | 2,401 | $ | 512 | $ | 313 | $ | 33 | $ | 39,958 | |||||||||||||||||||
Charge-offs | (8,534 | ) | (15,794 | ) | - | (3,671 | ) | (3,727 | ) | (1,953 | ) | (267 | ) | - | (33,946 | ) | |||||||||||||||||||||
Recoveries | 2,456 | - | - | 340 | 115 | 246 | 112 | - | 3,269 | ||||||||||||||||||||||||||||
(Credit) provision for loan losses | (12,788 | ) | 11,323 | (409 | ) | 2,849 | 2,787 | 2,102 | 31 | 2,605 | 8,500 | ||||||||||||||||||||||||||
Balance at end of period | $ | 6,181 | $ | 5,999 | $ | 150 | $ | 141 | $ | 1,576 | $ | 907 | $ | 189 | $ | 2,638 | $ | 17,781 | |||||||||||||||||||
Commercial | Commercial real estate | Multifamily | Real estate construction | Residential mortgages | Home equity | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
and industrial | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 13,826 | $ | 9,149 | $ | 77 | $ | 3,177 | $ | 519 | $ | 1,392 | $ | 279 | $ | - | $ | 28,419 | |||||||||||||||||||
Charge-offs | (9,490 | ) | (4,059 | ) | - | (232 | ) | (411 | ) | (191 | ) | (214 | ) | - | (14,597 | ) | |||||||||||||||||||||
Recoveries | 781 | - | - | 415 | 3 | 2 | 97 | - | 1,298 | ||||||||||||||||||||||||||||
Reclass to allowance for off-balance sheet credit risk | - | (50 | ) | - | - | - | - | - | - | (50 | ) | ||||||||||||||||||||||||||
Provision (credit) for loan losses | 19,930 | 5,430 | 482 | (2,737 | ) | 2,290 | (691 | ) | 151 | 33 | 24,888 | ||||||||||||||||||||||||||
Balance at end of period | $ | 25,047 | $ | 10,470 | $ | 559 | $ | 623 | $ | 2,401 | $ | 512 | $ | 313 | $ | 33 | $ | 39,958 | |||||||||||||||||||
The Company recorded a $1.3 million consolidated provision for loan losses for the year ended December 31, 2013 as compared to a provision of $8.5 million for the year ended December 31, 2012. The decrease in the 2013 provision for loan losses resulted from a significant reduction in the level of criticized and classified loans. | |||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013, the ending balance of the Company’s allowance for loan losses decreased by $518 thousand when compared to December 31, 2012. During 2013, the Company increased its allowance for loan losses allocated to multifamily loans and commercial real estate loans (“CRE”) by $2.0 million and $627 thousand, respectively, while reducing the amount allocated to commercial and industrial loans (“C&I”) by $3.6 million. | |||||||||||||||||||||||||||||||||||||
The increases in the allowance for loan losses allocated to multifamily and CRE loans were primarily due to increases in the balances of unimpaired pass rated multifamily and CRE loans of $175 million and $143 million, respectively, versus December 31, 2012, partially offset by reductions of 0.39% and 0.24%, respectively, in the ASC 450-20 historical loss factors rates for such unimpaired pass rated loans. | |||||||||||||||||||||||||||||||||||||
The decrease in the allowance for loan losses allocated to C&I loans during 2013 reflected a 2.18% reduction in the ASC 450-20 historical loss factors rate on unimpaired pass rated C&I loans and a decrease of $299 thousand in specific reserves for C&I loans as computed under ASC 310-10, partially offset by a $15 million increase in the balance of unimpaired pass rated C&I loans in 2013. | |||||||||||||||||||||||||||||||||||||
Effective with the March 31, 2013 calculation, the ASC 450-20 loss factors rates incorporate an expansion of the look back period used in calculating historical losses to a rolling twelve quarter period (from an eight quarter period) for each loan segment. This change resulted from the Company’s effort to improve the granularity of its individual loan segment charge-off history. Additionally, the expansion of the look back period reduces the volatility associated with improperly weighting short-term trends in this calculation. These changes more accurately represent the Company’s incurred and expected losses by individual loan segment. | |||||||||||||||||||||||||||||||||||||
The Bank utilizes an eight-grade risk-rating system for commercial and industrial loans, commercial real estate and construction loans. Loans in risk grades 1- 4 are considered pass loans. The Bank’s risk grades are as follows: | |||||||||||||||||||||||||||||||||||||
Risk Grade 1, Excellent - Loans secured by liquid collateral such as certificates of deposit, reputable bank letters of credit, or other cash equivalents; loans that are guaranteed or otherwise backed by the full faith and credit of the United States government or an agency thereof, such as the Small Business Administration; or loans to any publicly held company with a current long-term debt rating of A or better. | |||||||||||||||||||||||||||||||||||||
Risk Grade 2, Good - Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three consecutive years of profits; loans supported by un-audited financial statements containing strong balance sheets, five consecutive years of profits, a five-year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities where there is no impediment to liquidation; loans to individuals backed by liquid personal assets, established credit history, and unquestionable character; or loans to publicly held companies with current long-term debt ratings of Baa or better. | |||||||||||||||||||||||||||||||||||||
Risk Grade 3, Satisfactory - Loans supported by financial statements (audited or un-audited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply: | |||||||||||||||||||||||||||||||||||||
· | At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory. | ||||||||||||||||||||||||||||||||||||
· | At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss. | ||||||||||||||||||||||||||||||||||||
· | The loan has exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance. | ||||||||||||||||||||||||||||||||||||
· | During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted. | ||||||||||||||||||||||||||||||||||||
Risk Grade 4, Satisfactory/Monitored - Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than satisfactory loans due to weak balance sheets, marginal earnings or cash flow, or other uncertainties. These loans warrant a higher than average level of monitoring to ensure that weaknesses do not advance. The level of risk in a Satisfactory/Monitored loan is within acceptable underwriting guidelines so long as the loan is given the proper level of management supervision. | |||||||||||||||||||||||||||||||||||||
Risk Grade 5, Special Mention - Loans which possess some credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered potential, not defined, impairments to the primary source of repayment. | |||||||||||||||||||||||||||||||||||||
Risk Grade 6, Substandard - One or more of the following characteristics may be exhibited in loans classified Substandard: | |||||||||||||||||||||||||||||||||||||
· | Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. | ||||||||||||||||||||||||||||||||||||
· | Loans are inadequately protected by the current net worth and paying capacity of the obligor. | ||||||||||||||||||||||||||||||||||||
· | The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. | ||||||||||||||||||||||||||||||||||||
· | Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. | ||||||||||||||||||||||||||||||||||||
· | Unusual courses of action are needed to maintain a high probability of repayment. | ||||||||||||||||||||||||||||||||||||
· | The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments. | ||||||||||||||||||||||||||||||||||||
· | The lender is forced into a subordinated or unsecured position due to flaws in documentation. | ||||||||||||||||||||||||||||||||||||
· | Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms. | ||||||||||||||||||||||||||||||||||||
· | The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. | ||||||||||||||||||||||||||||||||||||
· | There is a significant deterioration in market conditions to which the borrower is highly vulnerable. | ||||||||||||||||||||||||||||||||||||
Risk Grade 7, Doubtful - One or more of the following characteristics may be present in loans classified Doubtful: | |||||||||||||||||||||||||||||||||||||
· | Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable. | ||||||||||||||||||||||||||||||||||||
· | The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. | ||||||||||||||||||||||||||||||||||||
· | The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. | ||||||||||||||||||||||||||||||||||||
Risk Grade 8, Loss - Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. | |||||||||||||||||||||||||||||||||||||
The Bank annually reviews the ratings on all commercial and industrial, commercial real estate and real estate construction loans greater than $1 million. Semi-annually, the Bank engages an independent third-party to review a significant portion of loans within these loan classes. Management uses the results of these reviews as part of its ongoing review process. | |||||||||||||||||||||||||||||||||||||
The following presents the Company’s loan portfolio credit risk profile by internally assigned grade disaggregated by class of loan at December 31, 2013 and 2012 (in thousands). | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Commercial real estate | Multifamily | Real estate construction | Residential | Home | Consumer | Total | % of | ||||||||||||||||||||||||||||
and industrial | mortgages | equity | Total | ||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||
Pass | $ | 158,536 | $ | 445,302 | $ | 184,624 | $ | 6,565 | $ | 164,559 | $ | 56,379 | $ | 10,156 | $ | 1,026,121 | 96 | % | |||||||||||||||||||
Special mention | 2,934 | 2,817 | - | - | - | - | - | 5,751 | 0.5 | ||||||||||||||||||||||||||||
Substandard | 9,729 | 21,238 | - | - | 4,993 | 733 | 283 | 36,976 | 3.5 | ||||||||||||||||||||||||||||
Total | $ | 171,199 | $ | 469,357 | $ | 184,624 | $ | 6,565 | $ | 169,552 | $ | 57,112 | $ | 10,439 | $ | 1,068,848 | 100 | % | |||||||||||||||||||
31-Dec-12 | Commercial | Commercial real estate | Multifamily | Real estate construction | Residential | Home | Consumer | Total | % of | ||||||||||||||||||||||||||||
and industrial | mortgages | equity | Total | ||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||
Pass | $ | 143,804 | $ | 301,862 | $ | 9,261 | $ | 4,790 | $ | 141,915 | $ | 65,966 | $ | 14,267 | $ | 681,865 | 87.3 | % | |||||||||||||||||||
Special mention | 5,995 | 38,670 | - | - | - | - | - | 44,665 | 5.7 | ||||||||||||||||||||||||||||
Substandard | 18,910 | 19,478 | - | 10,679 | 4,660 | 502 | 21 | 54,250 | 7 | ||||||||||||||||||||||||||||
Total | $ | 168,709 | $ | 360,010 | $ | 9,261 | $ | 15,469 | $ | 146,575 | $ | 66,468 | $ | 14,288 | $ | 780,780 | 100 | % | |||||||||||||||||||
TDRs are modifications or renewals where the Company has granted a concession to a borrower in financial distress. The Company reviews all modifications and renewals for determination of TDR status. The Company allocated $586 thousand and $800 thousand of specific reserves to customers whose loan terms have been modified as TDRs as of December 31, 2013 and 2012, respectively. These loans involved the restructuring of terms to allow customers to mitigate the risk of default by meeting a lower payment requirement based upon their current cash flow. These may also include loans that renewed at existing contractual rates, but below market rates for comparable credit. | |||||||||||||||||||||||||||||||||||||
A total of $250 thousand and $35 thousand were committed to be advanced in connection with TDRs as of December 31, 2013 and 2012, respectively, representing the amount the Company is legally required to advance under existing loan agreements. These loans are not in default under the terms of the loan agreements and are accruing interest. It is the Company’s policy to evaluate advances on such loans on a case by case basis. Absent a legal obligation to advance pursuant to the terms of the loan agreement, the Company generally will not advance funds for which it has outstanding commitments, but may do so in certain circumstances. | |||||||||||||||||||||||||||||||||||||
Outstanding TDRs, disaggregated by class, at December 31, 2013 and 2012 are as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
TDRs Outstanding | Number of | Outstanding | Number of | Outstanding | |||||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 43 | $ | 6,022 | 41 | $ | 6,468 | |||||||||||||||||||||||||||||||
Commercial real estate | 7 | 6,022 | 9 | 6,238 | |||||||||||||||||||||||||||||||||
Residential mortgages | 17 | 3,891 | 15 | 3,587 | |||||||||||||||||||||||||||||||||
Consumer | 3 | 150 | 5 | 311 | |||||||||||||||||||||||||||||||||
Total | 70 | $ | 16,085 | 70 | $ | 16,604 | |||||||||||||||||||||||||||||||
The following presents, disaggregated by class, information regarding TDRs executed during the years ended December 31, 2013, 2012 and 2011 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013 | For the year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | Number | Outstanding | Outstanding | ||||||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||||||
New TDRs | Loans | Balance | Balance | Loans | Balance | Balance | |||||||||||||||||||||||||||||||
Commercial and industrial | 8 | $ | 2,484 | $ | 2,484 | 17 | $ | 6,674 | $ | 6,674 | |||||||||||||||||||||||||||
Commercial real estate | 3 | 3,025 | 3,025 | - | - | - | |||||||||||||||||||||||||||||||
Residential mortgages | 4 | 924 | 924 | 6 | 1,617 | 1,617 | |||||||||||||||||||||||||||||||
Consumer | 1 | 17 | 17 | 1 | 49 | 49 | |||||||||||||||||||||||||||||||
Total | 16 | $ | 6,450 | $ | 6,450 | 24 | $ | 8,340 | $ | 8,340 | |||||||||||||||||||||||||||
For the year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
of | Recorded | Recorded | |||||||||||||||||||||||||||||||||||
New TDRs | Loans | Balance | Balance | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 29 | $ | 4,099 | $ | 4,123 | ||||||||||||||||||||||||||||||||
Commercial real estate | 8 | 8,697 | 8,697 | ||||||||||||||||||||||||||||||||||
Residential mortgages | 5 | 1,437 | 1,622 | ||||||||||||||||||||||||||||||||||
Home equity | 1 | 291 | 291 | ||||||||||||||||||||||||||||||||||
Consumer | 1 | 34 | 34 | ||||||||||||||||||||||||||||||||||
Total | 44 | $ | 14,558 | $ | 14,767 | ||||||||||||||||||||||||||||||||
Presented below and disaggregated by class is information regarding loans modified as TDRs that had payment defaults of 90 days or more within twelve months of restructuring during the years ended December 31, 2013, 2012 and 2011 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
Number | Recorded | Number | Recorded | Number | Recorded | ||||||||||||||||||||||||||||||||
Defaulted TDRs | of Loans | Balance | of Loans | Balance | of Loans | Balance | |||||||||||||||||||||||||||||||
Commercial and industrial | - | $ | - | 2 | $ | 1,125 | 9 | $ | 41 | ||||||||||||||||||||||||||||
Commercial real estate | 1 | 390 | - | - | 2 | 4,879 | |||||||||||||||||||||||||||||||
Residential mortgages | 1 | 310 | 2 | 807 | - | - | |||||||||||||||||||||||||||||||
Total | 2 | $ | 700 | 4 | $ | 1,932 | 11 | $ | 4,920 | ||||||||||||||||||||||||||||
Not all loan modifications are TDRs. In some cases, the Company might provide a concession, such as a reduction in interest rate, but the borrower is not experiencing financial distress. This could be the case if the Company is matching a competitor’s interest rate. | |||||||||||||||||||||||||||||||||||||
The following presents information regarding modifications and renewals executed during the years ended December 31, 2013, 2012 and 2011 that are not considered TDRs (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
Number | Recorded | Number | Recorded | Number | Recorded | ||||||||||||||||||||||||||||||||
Non-TDR Modifications | of Loans | Balance | of Loans | Balance | of Loans | Balance | |||||||||||||||||||||||||||||||
Commercial and industrial | 19 | $ | 6,741 | 13 | $ | 8,111 | - | $ | - | ||||||||||||||||||||||||||||
Commercial real estate | 41 | 40,004 | 34 | 40,004 | 5 | 1,599 | |||||||||||||||||||||||||||||||
Multifamily | 1 | 410 | - | - | - | - | |||||||||||||||||||||||||||||||
Total | 61 | $ | 47,155 | 47 | $ | 48,115 | 5 | $ | 1,599 |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
PREMISES AND EQUIPMENT [Abstract] | ' | |||||||||
PREMISES AND EQUIPMENT | ' | |||||||||
5. PREMISES AND EQUIPMENT | ||||||||||
At December 31, 2013 and 2012, premises and equipment consisted of the following (in thousands): | ||||||||||
Estimated Useful Lives | 2013 | 2012 | ||||||||
Land | Indefinite | $ | 3,201 | $ | 3,326 | |||||
Premises | 30 - 40 years | 27,570 | 28,167 | |||||||
Furniture, fixtures & equipment | 3 - 7 years | 28,669 | 28,250 | |||||||
Leasehold improvements | 2 - 25 years | 3,825 | 3,869 | |||||||
63,265 | 63,612 | |||||||||
Accumulated depreciation and amortization | (38,004 | ) | (35,956 | ) | ||||||
Balance at end of year | $ | 25,261 | $ | 27,656 | ||||||
Premises and accumulated depreciation and amortization include amounts related to property under capital leases of approximately $5 million as of December 31, 2013 and 2012. | ||||||||||
Depreciation and amortization charged to operations amounted to $3.3 million, $2.6 million and $2.5 million during 2013, 2012 and 2011, respectively. The 2013 total includes $507 thousand in accelerated depreciation related to two branches closed in 2013 and four branches scheduled to be closed in the first quarter of 2014. Depreciation and amortization charged to operations includes amounts related to property under capital leases of $704 thousand, $461 thousand and $167 thousand in 2013, 2012 and 2011, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
DEPOSITS [Abstract] | ' | ||||||||
DEPOSITS | ' | ||||||||
6. DEPOSITS | |||||||||
Scheduled maturities of certificates of deposit are as follows (in thousands): | |||||||||
Year During Which | Time Deposits | Other Time | |||||||
Time Deposit Matures | > $100,000 | Deposits | |||||||
2014 | $ | 137,067 | $ | 45,856 | |||||
2015 | 9,804 | 10,671 | |||||||
2016 | 7,613 | 3,530 | |||||||
2017 | 2,802 | 4,350 | |||||||
2018 | 1,051 | 2,335 | |||||||
Total | $ | 158,337 | $ | 66,742 | |||||
BORROWINGS
BORROWINGS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
BORROWINGS [Abstract] | ' | ||||||||||||
BORROWINGS | ' | ||||||||||||
7. BORROWINGS | |||||||||||||
Borrowings, comprised primarily of FHLB advances, securities sold under agreements to repurchase and federal funds purchased, are presented below for each period (dollars in thousands): | |||||||||||||
Short-Term | Long-Term | ||||||||||||
31-Dec-13 | Borrowings | Borrowings | Total | ||||||||||
Daily average outstanding | $ | 22 | $ | - | $ | 22 | |||||||
Total interest cost | - | - | - | ||||||||||
Average interest rate paid | 0.37 | % | - | % | 0.37 | % | |||||||
Maximum amount outstanding at any month-end | $ | - | $ | - | $ | - | |||||||
December 31 balance | - | - | - | ||||||||||
Weighted-average interest rate on balances outstanding | - | % | - | % | - | % | |||||||
Short-Term | Long-Term | ||||||||||||
31-Dec-12 | Borrowings | Borrowings | Total | ||||||||||
Daily average outstanding | $ | 57 | $ | - | $ | 57 | |||||||
Total interest cost | - | - | - | ||||||||||
Average interest rate paid | 0.48 | % | - | % | 0.48 | % | |||||||
Maximum amount outstanding at any month-end | $ | - | $ | - | $ | - | |||||||
December 31 balance | - | - | - | ||||||||||
Weighted-average interest rate on balances outstanding | - | % | - | % | - | % | |||||||
Assets pledged as collateral to the FHLB at December 31, 2013 and 2012 totaled $337 million and $85 million, respectively, consisting of eligible loans and investment securities as determined under FHLB borrowing guidelines. The Company had no FHLB borrowings outstanding at December 31, 2013 or 2012. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
STOCKHOLDERS EQUITY [Abstract] | ' | ||||||||||||||||||||
STOCKHOLDERS EQUITY | ' | ||||||||||||||||||||
8. STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
The Company has a Dividend Reinvestment Plan to provide stockholders of record with a convenient method of investing cash dividends and optional cash payments in additional shares of the Company’s common stock without payment of any brokerage commission or service charges. At the Company’s discretion, such additional shares may be purchased directly from the Company using either originally issued shares or treasury shares at a 3% discount from market value, or the shares may be purchased in negotiated transactions or on any securities exchange where such shares may be traded at 100% of cost. No shares were issued in 2013 or 2012 under this plan. There were 32,614 shares issued in 2011. | |||||||||||||||||||||
Under the terms of the Company’s stock option plans adopted in 1999 and 2009, options have been granted to key employees and directors to purchase shares of the Company’s stock. Under the 2009 Stock Incentive Plan (“the Plan”), a total of 500,000 shares of the Company’s common stock were reserved for issuance, of which 261,833 shares remain for possible issuance at December 31, 2013. There are no remaining shares reserved for issuance under the 1999 Stock Option Plan. Options are awarded by the Compensation Committee of the Board of Directors. Both plans provide that the option price shall not be less than the fair value of the common stock on the date the option is granted. All options are exercisable for a period of ten years or less. Options granted in 2013 and 2012 are exercisable over a three-year period commencing one year from the date of grant at a rate of one third per year. Options granted in 2011 are exercisable over a three-year period commencing three years from the date of grant at a rate of one third per year. | |||||||||||||||||||||
Both plans provide for but do not require the grant of stock appreciation rights (“SARs”) that the holder may exercise instead of the underlying option. At December 31, 2013, there were 6,000 SARs outstanding related to options granted before 2011. The SARs had no intrinsic value at December 31, 2013. When the SAR is exercised, the underlying option is canceled. The optionee receives shares of common stock or cash with a fair market value equal to the excess of the fair value of the shares subject to the option at the time of exercise (or the portion thereof so exercised) over the aggregate option price of the shares set forth in the option agreement. The exercise of SARs is treated as the exercise of the underlying option. | |||||||||||||||||||||
The total intrinsic value of options exercised for the year ended December 31, 2013 was $15 thousand. The total cash received from such option exercises was $91 thousand, excluding the tax benefit realized. In exercising those options, 6,667 new shares of the Company’s common stock were issued. No options were exercised in 2012. The total intrinsic value of options exercised for the year ended December 31, 2011 was $47 thousand. No cash was received from the option exercises in 2011 as the optionee, in exercising those options, paid the option exercise price in full by surrendering 3,112 shares at a fair market value of $77 thousand. | |||||||||||||||||||||
In 2011 the Company granted an award of 30,000 non-qualified stock options at an exercise price of $10.79 per share to its President and Chief Executive Officer as a material inducement to employment with the Company. The non-qualified options were not issued as part of any of the Company’s registered stock-based compensation plans. The options are exercisable over a three-year period commencing three years from the date of grant at a rate of one third per year. | |||||||||||||||||||||
The Company accounts for stock-based compensation on a modified prospective basis with the fair value of grants of employee stock options recognized in the financial statements. Compensation expense related to stock-based compensation amounted to $579 thousand and $458 thousand for the years ended December 31, 2013 and 2012, respectively. There was no such expense for 2011. The remaining unrecognized compensation cost of approximately $942 thousand at December 31, 2013 will be expensed over the remaining weighted average vesting period of approximately 2.4 years. | |||||||||||||||||||||
A summary of stock option activity follows: | |||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||
Shares | Exercise Price Per | ||||||||||||||||||||
Share | |||||||||||||||||||||
Outstanding - January 1, 2011 | 89,500 | $ | 30.32 | ||||||||||||||||||
Granted | 50,000 | 10.79 | |||||||||||||||||||
Exercised | (5,000 | ) | 15.5 | ||||||||||||||||||
Forfeited or expired | (23,000 | ) | 28.67 | ||||||||||||||||||
Outstanding - December 31, 2011 | 111,500 | 22.57 | |||||||||||||||||||
Granted | 130,000 | 13.15 | |||||||||||||||||||
Exercised | - | - | |||||||||||||||||||
Forfeited or expired | (30,000 | ) | 32.23 | ||||||||||||||||||
Outstanding - December 31, 2012 | 211,500 | 15.41 | |||||||||||||||||||
Granted | 111,500 | 17.31 | |||||||||||||||||||
Exercised | (6,667 | ) | 13.44 | ||||||||||||||||||
Forfeited or expired | (25,333 | ) | 15.5 | ||||||||||||||||||
Outstanding - December 31, 2013 | 291,000 | $ | 16.18 | ||||||||||||||||||
The following table presents the Black-Scholes parameters for stock options granted during the past three years: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Risk-free interest rate | 1.22 | % | 0.78 | % | 2.1 | % | |||||||||||||||
Expected dividend yield | - | - | - | ||||||||||||||||||
Expected life in years | 10 | 10 | 10 | ||||||||||||||||||
Expected volatility | 42.95 | % | 43.03 | % | 42.6 | % | |||||||||||||||
Weighted average fair value | $ | 9.24 | $ | 7.13 | $ | 5.95 | |||||||||||||||
The following summarizes shares subject to purchase from stock options outstanding and exercisable as of December 31, 2013: | |||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||
Range of | Weighted-Average | Weighted-Average | |||||||||||||||||||
Exercise | Remaining | Weighted-Average | Remaining | Weighted-Average | |||||||||||||||||
Prices | Shares | Contractual Life | Exercise Price | Shares | Contractual Life | Exercise Price | |||||||||||||||
$ | 10.00 - $14.00 | 140,000 | 8.2 years | $ | 12.01 | 30,002 | 8.3 years | $ | 12.68 | ||||||||||||
$ | 14.01 - $20.00 | 121,500 | 9.5 years | $ | 17.12 | 3,334 | 8.7 years | $ | 14.97 | ||||||||||||
$ | 20.01 - $30.00 | 5,000 | 5.1 years | $ | 28.3 | 5,000 | 5.1 years | $ | 28.3 | ||||||||||||
$ | 30.01 - $40.00 | 24,500 | 2.3 years | $ | 32.87 | 24,500 | 2.3 years | $ | 32.87 | ||||||||||||
291,000 | 8.2 years | $ | 16.18 | 62,836 | 5.7 years | $ | 21.92 | ||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
INCOME TAXES [Abstract] | ' | |||||||||||||
INCOME TAXES | ' | |||||||||||||
9. INCOME TAXES | ||||||||||||||
The following table presents the expense (benefit) for income taxes in the consolidated statements of operations which is comprised of the following (in thousands): | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Current: | Federal | $ | 135 | $ | (4,126 | ) | $ | 751 | ||||||
State | 510 | 280 | 345 | |||||||||||
645 | (3,846 | ) | 1,096 | |||||||||||
Deferred: | Federal | 3,046 | 1,412 | (4,339 | ) | |||||||||
State | 31 | 1,162 | (980 | ) | ||||||||||
3,077 | 2,574 | (5,319 | ) | |||||||||||
Valuation allowance | - | 558 | - | |||||||||||
Total | $ | 3,722 | $ | (714 | ) | $ | (4,223 | ) | ||||||
The total tax expense (benefit) was different from the amounts computed by applying the federal income tax rate because of the following: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Federal income tax expense (benefit)at statutory rates | 34 | % | (34 | )% | (35 | )% | ||||||||
Tax-exempt income | (14 | ) | (82 | ) | (56 | ) | ||||||||
State income taxes, net of federal benefit | 2 | 26 | (10 | ) | ||||||||||
Deferred tax asset adjustment | - | 62 | - | |||||||||||
Other | 1 | (1 | ) | 3 | ||||||||||
Total | 23 | % | (29 | )% | (98 | )% | ||||||||
The effects of temporary differences between tax and financial accounting that create significant deferred tax assets and liabilities and the recognition of income and expense for purposes of tax and financial reporting are presented below (in thousands): | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Allowance for loan losses | $ | 6,269 | $ | 6,458 | $ | 15,835 | ||||||||
Post-retirement benefits | - | 571 | 551 | |||||||||||
Deferred compensation | 1,588 | 1,642 | 1,941 | |||||||||||
Stock-based compensation | 668 | 458 | 326 | |||||||||||
Unrealized losses on securities available for sale | 2,336 | - | - | |||||||||||
Unfunded pension obligation | 94 | 2,826 | 7,396 | |||||||||||
Alternative Minimum Tax credit | 668 | 537 | - | |||||||||||
Net operating loss carryforward | 2,864 | 5,277 | - | |||||||||||
Other | 961 | 1,300 | 1,677 | |||||||||||
Total deferred tax assets | 15,448 | 19,069 | 27,726 | |||||||||||
Deferred tax liabilities: | ||||||||||||||
Unrealized gains on securities available for sale | - | (6,019 | ) | (7,692 | ) | |||||||||
Other | (961 | ) | (1,107 | ) | (1,569 | ) | ||||||||
Total deferred tax liabilities | (961 | ) | (7,126 | ) | (9,261 | ) | ||||||||
Valuation allowance | (534 | ) | (558 | ) | - | |||||||||
Net deferred tax asset | $ | 13,953 | $ | 11,385 | $ | 18,465 | ||||||||
The deferred tax assets and liabilities are netted and presented in a single amount which is included in deferred taxes in the accompanying consolidated statements of condition. The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, the Company considers positive and negative evidence, including taxable income in carryback years, scheduled reversals of deferred tax liabilities, expected future taxable income and tax planning strategies. The Company applied a carryback of the net operating losses for 2012, which resulted in $5 million included in income tax receivable in the 2012 consolidated statements of condition, and which was received in 2013. The Company has net operating loss carryforwards of approximately $6.9 million and $23.1 million for Federal and New York State (“NYS”) income tax purposes, respectively, which may be applied against future taxable income. The Company has a full valuation reserve of $534 thousand, tax effected, on the NYS net operating loss due to the Company’s significant tax-exempt investment income in NYS. The valuation allowance may be reversed to income in future periods to the extent that the related deferred tax assets are realized or when the Company returns to consistent, taxable earnings in NYS. Management believes it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the remaining deferred tax assets. Both the Federal and NYS unused net operating loss carryforwards are expected to expire in varying amounts through the year 2032. It is anticipated that the Federal carryforward will be utilized prior to its expiration based on the Company’s future years’ projected earnings. | ||||||||||||||
The Company had unrecognized tax benefits including interest of approximately $34 thousand, $34 thousand and $38 thousand at December 31, 2013, 2012 and 2011, respectively. Changes in unrecognized tax benefits consist of the following (in thousands): | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Balance January 1 | $ | 34 | $ | 38 | $ | 41 | ||||||||
Additions from current year tax positions | - | 1 | - | |||||||||||
Reductions for prior year tax positions | - | (5 | ) | (3 | ) | |||||||||
Balance December 31 | $ | 34 | $ | 34 | $ | 38 | ||||||||
The Company recognizes interest and penalties accrued relating to unrecognized tax benefits in income tax expense. There is no accrued interest relating to uncertain tax positions as of December 31, 2013. The Company files income tax returns in the U.S. federal jurisdiction and in New York State. Federal returns are subject to audits by tax authorities and the Company is currently under an audit for the tax years 2010 through 2012. The Company does not expect a significant change in income taxes as a result of this audit. In 2012, New York State audited the Company and Suffolk Greenway, Inc., a subsidiary of the Bank, for the years 2008, 2009 and 2010 and there was no change as a result of these audits. It is not anticipated that the unrecognized tax benefits will significantly change over the next 12 months. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
EMPLOYEE BENEFITS [Abstract] | ' | ||||||||||||
EMPLOYEE BENEFITS | ' | ||||||||||||
10. EMPLOYEE BENEFITS | |||||||||||||
Retirement Plan | |||||||||||||
The Company’s retirement plan is noncontributory and covers substantially all eligible employees. The plan conforms to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and the Pension Protection Act of 2006, which requires certain funding rules for defined benefit plans. The Company’s policy is to accrue for all pension costs and to fund the maximum amount allowable for tax purposes. Actuarial gains and losses that arise from changes in assumptions concerning future events are amortized over a period that reflects the long-term nature of pension expense used in estimating pension costs. | |||||||||||||
On December 31, 2012, certain provisions of the Company’s retirement plan were changed which affected all participants in this plan and froze the participation of new entrants into the pension plan for all remaining employees in 2012. These changes froze the plan such that no additional pension benefits would accumulate. | |||||||||||||
The tables below set forth the status of the Company’s pension plan at December 31 for the years presented, the time at which the annual valuation of the plan is made. | |||||||||||||
The following table sets forth the plan’s change in benefit obligation (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Benefit obligation at start of year | $ | 45,376 | $ | 53,028 | $ | 42,570 | |||||||
Service cost | - | 2,665 | 2,179 | ||||||||||
Interest cost | 1,993 | 2,218 | 2,250 | ||||||||||
Actuarial (gain) loss | (3,970 | ) | (3,789 | ) | 7,671 | ||||||||
Benefits paid and expected expenses | (1,686 | ) | (1,777 | ) | (1,642 | ) | |||||||
Curtailment | - | (6,969 | ) | - | |||||||||
Benefit obligation at end of year | $ | 41,713 | $ | 45,376 | $ | 53,028 | |||||||
The following table sets forth the plan’s change in plan assets (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fair value of plan assets at start of year | $ | 37,595 | $ | 34,817 | $ | 32,830 | |||||||
Actual return on plan assets | 5,758 | 3,615 | 13 | ||||||||||
Employer contribution | - | 1,000 | 3,700 | ||||||||||
Benefits paid and actual expenses | (1,897 | ) | (1,837 | ) | (1,726 | ) | |||||||
Fair value of plan assets at end of year | $ | 41,456 | $ | 37,595 | $ | 34,817 | |||||||
The following table presents the plan’s funded status and amounts recognized in the consolidated statements of condition (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Prepaid pension cost | $ | 4,696 | $ | 4,632 | |||||||||
Unrecognized net loss | (4,953 | ) | (12,413 | ) | |||||||||
Underfunded status | $ | (257 | ) | $ | (7,781 | ) | |||||||
Amount included in other liabilities | $ | (257 | ) | $ | (7,781 | ) | |||||||
Accumulated benefit obligation | $ | 41,713 | $ | 45,376 | |||||||||
In December 2012, the Company made an annual minimum contribution of $1 million for the plan year ended September 30, 2013. There was no additional minimum required contribution for the plan year ended September 30, 2013. The Company does not expect to contribute to its pension plan in 2014. | |||||||||||||
The following table presents estimated benefits to be paid during the years indicated (in thousands): | |||||||||||||
2014 | $ | 1,969 | |||||||||||
2015 | 2,105 | ||||||||||||
2016 | 2,178 | ||||||||||||
2017 | 2,268 | ||||||||||||
2018 | 2,319 | ||||||||||||
2019-2023 | 12,439 | ||||||||||||
The following table summarizes the net periodic pension (credit) cost (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Service cost | $ | - | $ | 2,665 | $ | 2,179 | |||||||
Interest cost on projected benefit obligations | 1,993 | 2,218 | 2,250 | ||||||||||
Expected return on plan assets | (2,301 | ) | (2,362 | ) | (2,238 | ) | |||||||
Net amortization and deferral | 244 | 1,628 | 974 | ||||||||||
Curtailment gain | - | (1 | ) | - | |||||||||
Net periodic pension (credit) cost | (64 | ) | 4,148 | 3,165 | |||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||
Net actuarial (gain) loss | (7,460 | ) | (13,578 | ) | 5,348 | ||||||||
Total recognized in other comprehensive income | (7,460 | ) | (13,578 | ) | 5,348 | ||||||||
Total recognized in net periodic pension (credit) cost and other comprehensive income | $ | (7,524 | ) | $ | (9,430 | ) | $ | 8,513 | |||||
Weighted-average discount rate | 4.5 | % | 4.27 | % | 5.38 | % | |||||||
Rate of increase in future compensation | 0 | % | 3.5 | % | 3.5 | % | |||||||
Expected long-term rate of return on assets | 7 | % | 7 | % | 7 | % | |||||||
The assumptions used in the measurement of the Company’s pension obligation at December 31, 2013 were: | |||||||||||||
· | Weighted-average discount rate of 5.33%; | ||||||||||||
· | Rate of increase in future compensation of 0.00%; | ||||||||||||
· | Expected long-term rate of return on assets was not applicable. | ||||||||||||
The following table summarizes the net periodic pension credit expected for the year ended December 31, 2014. This amount is subject to change if a significant plan-related event should occur before the end of fiscal 2014 (in thousands): | |||||||||||||
Projected | |||||||||||||
2014 | |||||||||||||
Service cost | $ | - | |||||||||||
Interest cost on projected benefit obligations | 2,158 | ||||||||||||
Expected return on plan assets | (2,547 | ) | |||||||||||
Net amortization and deferral | 25 | ||||||||||||
Net periodic pension credit | $ | (364 | ) | ||||||||||
Weighted-average discount rate | 4.5 | % | |||||||||||
Rate of increase in future compensation | 0 | % | |||||||||||
Expected long-term rate of return on assets | 7 | % | |||||||||||
The Company’s pension plan weighted-average asset allocations at December 31, 2013 and 2012, by asset category are as follows: | |||||||||||||
At December 31, | |||||||||||||
Asset category | 2013 | 2012 | |||||||||||
Cash | 1 | % | 13 | % | |||||||||
Equity securities | 60 | 45 | |||||||||||
Debt securities | 39 | 42 | |||||||||||
Total | 100 | % | 100 | % | |||||||||
The following table summarizes the fair value measurements of the Company’s pension plan assets on a recurring basis as of December 31, 2013 (in thousands): | |||||||||||||
Fair Value Measurements Using | |||||||||||||
Active Markets for | Significant | ||||||||||||
Identical Assets | Other | ||||||||||||
Quoted Prices | Observable Inputs | ||||||||||||
Description | (Level 1) | (Level 2) | Total | ||||||||||
Short-term investment funds | $ | 290 | $ | - | $ | 290 | |||||||
Common collective trusts: | |||||||||||||
U.S. equity securities | 9,395 | - | 9,395 | ||||||||||
Non - U.S. equity securities | 15,654 | - | 15,654 | ||||||||||
U.S. fixed income securities | - | 13,692 | 13,692 | ||||||||||
Non - U.S. fixed income securities | - | 2,425 | 2,425 | ||||||||||
Total | $ | 25,339 | $ | 16,117 | $ | 41,456 | |||||||
The following table summarizes the fair value measurements of the Company’s pension plan assets on a recurring basis as of December 31, 2012 (in thousands): | |||||||||||||
Fair Value Measurements Using | |||||||||||||
Active Markets for | Significant | ||||||||||||
Identical Assets | Other | ||||||||||||
Quoted Prices | Observable Inputs | ||||||||||||
Description | (Level 1) | (Level 2) | Total | ||||||||||
Investment in securities | |||||||||||||
Short-term investment funds | $ | 39 | $ | 4,813 | $ | 4,852 | |||||||
Equity securities | 17,073 | - | 17,073 | ||||||||||
Fixed income securities | |||||||||||||
Auto loan receivable | - | 204 | 204 | ||||||||||
Collateralized mortgage obligations | - | 4,074 | 4,074 | ||||||||||
Corporate bonds | - | 3,549 | 3,549 | ||||||||||
Government-issued securities | - | 7,834 | 7,834 | ||||||||||
Other asset-backed | - | 9 | 9 | ||||||||||
Total | $ | 17,112 | $ | 20,483 | $ | 37,595 | |||||||
The following is a description of the valuation methodologies used for pension assets measured at fair value: | |||||||||||||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 – Inputs other than Level 1 that are observable, 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 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||
For pension assets, Level 1 securities consist primarily of short-term investment funds and equity securities which include investments in common stock and depository receipts. Level 2 securities consist of fixed income securities including corporate bonds, government issues and mortgage-backed securities. | |||||||||||||
During 2013, all of the assets of the Company’s retirement plan were transferred to State Street Bank & Trust from the New York State Bankers Retirement System. An investment manager, Mercer Investment Management, is responsible for the implementation of the plan’s investment policies and for appointing and terminating sub-advisors to manage the plan’s assets. The plan’s overall investment strategy is to invest in a mix of growth assets (primarily equities) with the objective of achieving long-term growth and hedging assets (primarily fixed income) with the objective of matching the plan’s liabilities. At December 31, 2013, the plan’s assets were invested in 13 common collective trust funds, which use 26 sub-advisors. | |||||||||||||
The following table presents target investment allocations for 2014 by asset category: | |||||||||||||
Target Allocation | |||||||||||||
Asset Category | 2014 | ||||||||||||
Cash equivalents | 0 - 5 | % | |||||||||||
Equity securities | 54 - 64 | % | |||||||||||
Fixed income securities | 36 - 46 | % | |||||||||||
Director’s Retirement Income Agreement of the Bank of the Hamptons | |||||||||||||
On April 11, 1994, the Company acquired Hamptons Bancshares, Inc., which had a director’s deferred compensation plan. The liability for this plan was approximately $138 thousand at December 31, 2013 and 2012. Expenses of approximately $10 thousand in 2013, $24 thousand in 2012 and $10 thousand in 2011 are included in the consolidated statements of operations. In 2013, the Company paid approximately $10 thousand to participants. | |||||||||||||
Deferred Compensation | |||||||||||||
In 1986, the Board approved a deferred compensation plan. Under this plan, certain employees and Directors of the Company elected to defer compensation aggregating approximately $177 thousand in 1986 in exchange for stated future payments to be made at specified dates. The rate of return on the initial deferral was guaranteed. For purposes of financial reporting, expenses of approximately $71 thousand and $58 thousand were recorded in 2013 and 2011, respectively. Income of approximately $13 thousand was recorded in 2012. | |||||||||||||
During 2013, the Company made payments of approximately $46 thousand to participants of this plan. The Company had purchased life insurance policies on the plan’s participants based upon reasonable actuarial benefit and other financial assumptions where the present value of the projected cash flows from the insurance proceeds approximated the present value of the projected cost of the employee benefit. The Company was the named beneficiary on the policies. In 2013, the Company surrendered these policies. Net insurance expense related to the policies aggregated approximately $155 thousand and $156 thousand in 2012 and 2011, respectively. There was no such expense in 2013. | |||||||||||||
In 1999, the Board approved a non-qualified deferred compensation plan. Under this plan, certain employees and Directors of the Company may elect to defer some or all of their compensation in exchange for a future payment of the compensation deferred, with accrued interest, at retirement. Participants deferred compensation totaling $95 thousand, $64 thousand and $100 thousand during 2013, 2012 and 2011, respectively. Payments of $356 thousand, $383 thousand and $335 thousand were made to participants during 2013, 2012 and 2011, respectively. | |||||||||||||
Post-Retirement Benefits Other Than Pension | |||||||||||||
The Company formerly provided life insurance benefits to employees meeting eligibility requirements. Employees hired after December 31, 1997 were not eligible for retiree life insurance. No other welfare benefits were provided. In the second quarter of 2013, the Company terminated all post-retirement life insurance benefits and recorded a non-recurring gain of $1.7 million as a credit to employee compensation and benefits expense in the Company’s consolidated statements of operations. | |||||||||||||
401(k) Retirement Plan | |||||||||||||
The Bank has a 401(k) Retirement Plan and Trust (“401(k) Plan”). Employees who have attained the age of 21 and have completed one-half month of service and 40 hours worked have the option to participate. Employees may currently elect to contribute up to $17,500. The Bank may match up to one-half of the employee’s contribution up to a maximum of 6% of the employee’s annual gross compensation. Employees are fully vested immediately in their own contributions and the Bank’s matching contributions. Bank contributions under the 401(k) Plan amounted to $486 thousand, $110 thousand and $394 thousand during 2013, 2012 and 2011, respectively. The Bank funds all amounts when due. Contributions to the 401(k) Plan may be invested in various bond, equity, money market or diversified funds as directed by each employee. The 401(k) Plan does not allow for investment in the Company’s common stock. |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' | ||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ||||||||
11. COMMITMENTS AND CONTINGENT LIABILITIES | |||||||||
The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby and documentary letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated financial statements. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | |||||||||
The Company was contingently liable under standby letters of credit in the amount of $18 million and $19 million at December 31, 2013 and 2012, respectively. The outstanding letters of credit as of December 31, 2013 expire as follows (in thousands): | |||||||||
2014 | $ | 17,418 | |||||||
2015 | 377 | ||||||||
2016 | 342 | ||||||||
Total | $ | 18,137 | |||||||
Amounts due under these letters of credit would be reduced by any proceeds that the Company would be able to obtain in liquidating the collateral for the loans, which varies depending on the customer. At December 31, 2013 and 2012, commitments to originate loans and commitments under unused lines of credit for which the Bank is obligated amounted to $113 million and $140 million, respectively. | |||||||||
The Bank is required to maintain balances with the FRB to satisfy reserve requirements. In addition, during 2013 the FRB continued to offer higher interest rates on overnight deposits compared to correspondent banks. The average balance maintained at the FRB during 2013 was $200 million compared to $244 million in 2012. | |||||||||
At December 31, 2013, the Company was obligated under a number of non-cancelable leases for land and buildings used for bank purposes. Minimum annual rentals, exclusive of taxes and other charges under non-cancelable operating leases, are as follows (in thousands): | |||||||||
Capital | Operating | ||||||||
Leases | Leases | ||||||||
2014 | $ | 311 | $ | 1,420 | |||||
2015 | 317 | 1,365 | |||||||
2016 | 329 | 1,011 | |||||||
2017 | 341 | 856 | |||||||
2018 | 348 | 503 | |||||||
Thereafter | 5,060 | 1,594 | |||||||
Total minimum lease payments | 6,706 | $ | 6,749 | ||||||
Less: amounts representing interest | 2,094 | ||||||||
Present value of minimum lease payments | $ | 4,612 | |||||||
Total rental expense for the years ended December 31, 2013, 2012 and 2011 amounted to $1.6 million, $1.3 million and $1.6 million, respectively. | |||||||||
The Company and the Bank are subject to legal proceedings and claims that arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability, if any, with respect to such matters will not materially affect future operations and will not have a material impact on the Company’s consolidated financial statements. |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | ' | ||||||||||||||||||||||||
REGULATORY MATTERS | ' | ||||||||||||||||||||||||
12. REGULATORY MATTERS | |||||||||||||||||||||||||
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital requirements that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and the Bank’s classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and tier 1 capital, as defined in the federal banking regulations, to risk-weighted assets and of tier 1 capital to adjusted average assets (leverage). Management believes, as of December 31, 2013, that the Company and the Bank met all such capital adequacy requirements to which it is subject. | |||||||||||||||||||||||||
The Bank’s capital amounts (in thousands) and ratios are as follows: | |||||||||||||||||||||||||
Minimum | Minimum to be Well | ||||||||||||||||||||||||
for capital | Capitalized under prompt | ||||||||||||||||||||||||
Actual capital ratios | adequacy | corrective action provisions | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | $ | 181,952 | 14.92 | % | $ | 97,542 | 8 | % | $ | 121,927 | 10 | % | |||||||||||||
Tier 1 capital to risk-weighted assets | 166,683 | 13.67 | % | 48,771 | 4 | % | 73,156 | 6 | % | ||||||||||||||||
Tier 1 capital to adjusted average assets (leverage) | 166,683 | 9.74 | % | 68,454 | 4 | % | 85,567 | 5 | % | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | $ | 162,458 | 18.05 | % | $ | 72,020 | 8 | % | $ | 90,025 | 10 | % | |||||||||||||
Tier 1 capital to risk-weighted assets | 151,121 | 16.79 | % | 36,010 | 4 | % | 54,015 | 6 | % | ||||||||||||||||
Tier 1 capital to adjusted average assets (leverage) | 151,121 | 9.74 | % | 62,092 | 4 | % | 77,615 | 5 | % | ||||||||||||||||
The reduction in the Bank’s capital ratios at December 31, 2013 versus December 31, 2012 resulted from an increase in total assets coupled with a change in the Bank’s mix of assets from 0% risk-weighted interest-bearing deposits due from banks to loans, principally at a 100% risk-weighting. | |||||||||||||||||||||||||
The Company’s tier 1 leverage, tier 1 risk-based and total risk-based capital ratios were 9.81%, 13.77% and 15.02%, respectively, at December 31, 2013, versus 9.79%, 16.89% and 18.15%, respectively, at December 31, 2012. | |||||||||||||||||||||||||
The ability of the Bank to pay dividends to the Company is subject to certain regulatory restrictions. Generally, dividends declared in a given year by a national bank are limited to its net profit, as defined by regulatory agencies, for that year, combined with its retained net income for the preceding two years, less any required transfer to surplus or to fund for the retirement of any preferred stock. In addition, a national bank may not pay dividends in an amount greater than its undivided profits or declare any dividends if such declaration would leave the bank inadequately capitalized. Also, the ability of the Bank to declare dividends will depend on the prior approval of the FRB. At December 31, 2013, $10.9 million was available for dividends from the Bank to the Company. | |||||||||||||||||||||||||
In July 2013, the OCC approved new rules on regulatory capital applicable to national banks, implementing Basel III. Most banking organizations are required to apply the new capital rules on January 1, 2015. The final rules set a new common equity tier 1 requirement and higher minimum tier 1 requirements for all banking organizations. They also place limits on capital distributions and certain discretionary bonus payments if a banking organization does not maintain a buffer of common equity tier 1 capital above minimum capital requirements. The rules revise the prompt corrective action framework to incorporate the new regulatory capital minimums. They also enhance risk sensitivity and address weaknesses identified over recent years with the measure of risk-weighted assets, including through new measures of creditworthiness to replace references to credit ratings, consistent with section 939A of the Dodd-Frank Act. Based on our capital levels and balance sheet composition at December 31, 2013, we believe implementation of the new rules will not have a material impact on our capital needs. |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
CONCENTRATIONS [Abstract] | ' | ||||||||||||
CONCENTRATIONS | ' | ||||||||||||
13. CONCENTRATIONS | |||||||||||||
Loans | |||||||||||||
The following table presents the Company’s loan portfolio disaggregated by class of loan at December 31, 2013 and each class’s percentage of total loans and total assets (dollars in thousands): | |||||||||||||
At December 31, | 2013 | % of total | % of total | ||||||||||
loans | assets | ||||||||||||
Commercial and industrial | $ | 171,199 | 16 | % | 10.1 | % | |||||||
Commercial real estate | 469,357 | 43.9 | 27.6 | ||||||||||
Multifamily | 184,624 | 17.3 | 10.9 | ||||||||||
Real estate construction | 6,565 | 0.6 | 0.4 | ||||||||||
Residential mortgages | 169,552 | 15.9 | 10 | ||||||||||
Home equity | 57,112 | 5.3 | 3.4 | ||||||||||
Consumer | 10,439 | 1 | 0.6 | ||||||||||
Total loans | $ | 1,068,848 | 100 | % | 63 | % | |||||||
Commercial and industrial loans, unsecured or secured by collateral other than real estate, present significantly greater risk than other types of loans. The Company obtains, whenever possible, both the personal guarantees of the principal and cross-guarantees among the principal’s business enterprises. Commercial real estate loans (exclusive of multifamily loans) present greater risk than residential mortgages. The Company has attempted to minimize the risks of these loans by considering several factors, including the creditworthiness of the borrower, location, condition, value and the business prospects for the security property. A majority of the Company’s consumer loans are indirect dealer-generated loans secured by automobiles. Most of these loans are made to residents of the Company’s primary lending area. Each loan is small in amount. | |||||||||||||
Investment Securities | |||||||||||||
The following presents the Company’s investment portfolio disaggregated by category of security at December 31, 2013 and each category’s percentage of total investment securities and total assets (dollars in thousands): | |||||||||||||
At December 31, | 2013 | % of total | % of total | ||||||||||
investment | assets | ||||||||||||
securities | |||||||||||||
U.S. Government agency securities | $ | 100,095 | 24.3 | % | 5.9 | % | |||||||
Corporate bonds | 15,651 | 3.8 | 0.9 | ||||||||||
Collateralized mortgage obligations | 30,104 | 7.3 | 1.8 | ||||||||||
Mortgage-backed securities | 97,767 | 23.7 | 5.8 | ||||||||||
Obligations of states and political subdivisions | 168,829 | 40.9 | 9.9 | ||||||||||
Total investment securities | $ | 412,446 | 100 | % | 24.3 | % | |||||||
Obligations of states and political subdivisions present slightly greater risk than securities backed by the U.S. Government, but significantly less risk than loans as they are backed by the full faith and taxing power of the issuer, most of which are located in the state of New York. MBS and CMOs are both backed by pools of mortgages. However, CMOs provide more predictable cash flows since payments are assigned to specific tranches of securities in the order in which they are received. The Company invests in senior tranches, some of which provide for prioritized receipt of cash flows. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
FAIR VALUE [Abstract] | ' | |||||||||||||||||||
FAIR VALUE | ' | |||||||||||||||||||
14. FAIR VALUE | ||||||||||||||||||||
Fair value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability in an exchange. The definition of fair value includes the exchange price which is the price in an orderly transaction between market participants to sell an asset or transfer a liability in the principal market for the asset or liability. Market participant assumptions include assumptions about risk, the risk inherent in a particular valuation technique used to measure fair value and/or the risk inherent in the inputs to the valuation technique, as well as the effect of credit risk on the fair value of liabilities. The Company uses three levels of the fair value inputs to measure assets, as described below. | ||||||||||||||||||||
Basis of Fair Value Measurement: | ||||||||||||||||||||
Level 1 – Valuations based on quoted prices in active markets for identical investments. | ||||||||||||||||||||
Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 2 inputs include: (i) quoted prices for similar investments in active markets, (ii) quoted prices for identical investments traded in non-active markets (i.e., dealer or broker markets) and (iii) inputs other than quoted prices that are observable or inputs derived from or corroborated by market data for substantially the full term of the investment. | ||||||||||||||||||||
Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity, and significant to the overall fair value measurement. | ||||||||||||||||||||
The types of instruments valued based on quoted market prices in active markets include most U.S. Treasury securities. Such instruments are generally classified within Level 1 and Level 2 of the fair value hierarchy. The Company does not adjust the quoted price for such instruments. | ||||||||||||||||||||
The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency include U.S. Government agency securities, state and municipal obligations, MBS, CMOs and corporate bonds. Such instruments are generally classified within Level 2 of the fair value hierarchy. | ||||||||||||||||||||
The types of instruments valued based on significant unobservable inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability are generally classified within Level 3 of the fair value hierarchy. | ||||||||||||||||||||
ASC 820, “Fair Value Measurements and Disclosures,” presents requirements for measuring fair value and for disclosing information about fair value measurements, including a consistent meaning of the term fair value. ASC 820 provides additional guidance in determining fair values when the volume and level of activity for the asset or liability have significantly decreased, particularly when there is no active market or where the price inputs being used represent distressed sales. It also provides guidelines for making fair value measurements more consistent with principles, reaffirming the need to use judgment to ascertain if a formerly active market has become inactive and in determining fair values when markets become inactive. | ||||||||||||||||||||
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments (in thousands). | ||||||||||||||||||||
Level in | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||
Fair Value | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||
Heirarchy | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||
Cash and due from banks | Level 1 | $ | 131,352 | $ | 131,352 | $ | 384,656 | $ | 384,656 | |||||||||||
Cash equivalents | Level 2 | 1,000 | 1,000 | 1,150 | 1,150 | |||||||||||||||
Interest-bearing time deposits in other banks | Level 2 | 10,000 | 10,000 | - | - | |||||||||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock | N/A | 2,863 | N/A | 3,043 | N/A | |||||||||||||||
Investment securities held to maturity | Level 2 | 11,666 | 12,234 | 8,035 | 8,861 | |||||||||||||||
Investment securities available for sale | Level 2 | 400,780 | 400,780 | 402,353 | 402,353 | |||||||||||||||
Loans held-for-sale | Level 2 | 175 | 175 | 907 | 907 | |||||||||||||||
Loans, net of allowance | Level 2, 3 (1) | 1,051,585 | 1,056,279 | 762,999 | 787,597 | |||||||||||||||
Bank owned life insurance | Level 3 | 38,755 | 38,755 | - | - | |||||||||||||||
Accrued interest and loan fees receivable | Level 2 | 5,441 | 5,441 | 4,883 | 4,883 | |||||||||||||||
Non-maturity deposits | Level 2 | 1,284,982 | 1,284,982 | 1,187,383 | 1,187,383 | |||||||||||||||
Time deposits | Level 2 | 225,079 | 225,946 | 243,731 | 245,595 | |||||||||||||||
Accrued interest payable | Level 2 | 160 | 160 | 237 | 237 | |||||||||||||||
-1 | Impaired loans are generally classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||
Fair value estimates are made at a specific point in time and may be based on judgments regarding losses expected in the future, risk, and other factors that are subjective in nature. The methods and assumptions used to produce the fair value estimates follow. | ||||||||||||||||||||
The Company records investments available for sale and mortgage servicing rights at fair value. For cash and due from banks, cash equivalents, interest-bearing time deposits in other banks, bank owned life insurance, accrued interest and loan fees receivable, non-maturity deposits and accrued interest payable, the carrying amount is a reasonable estimate of fair value. Time deposits are valued using a replacement cost of funds approach. | ||||||||||||||||||||
Fair values are estimated for portfolios of loans with similar characteristics. The fair value of performing loans was calculated by discounting projected cash flows through their estimated maturity using market discount rates that reflect the general credit and interest rate characteristics of the loan category. The maturity horizon is based on the Bank’s history of repayments for each type of loan and an estimate of the effect of current economic conditions. Fair value for significant non-performing loans is based on recent external appraisals of collateral, if any. If appraisals are not available, estimated cash flows are discounted using a rate commensurate with the associated risk. Assumptions regarding credit risk, cash flows, and discount rates are made using available market information and specific borrower information. | ||||||||||||||||||||
OREO properties are initially recorded at fair value, less estimated costs to sell when acquired, establishing a new cost basis. Adjustments to OREO are measured at fair value, less estimated costs to sell. Fair values are generally based on third party appraisals or realtor evaluations of the property. These appraisals and evaluations may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, an impairment loss is recognized through a valuation allowance, and the property is reported as non-recurring Level 3. | ||||||||||||||||||||
Loans identified as impaired are measured using one of three methods: the loan’s observable market price, the fair value of collateral or the present value of expected future cash flows. Those measured using the loan’s observable market price or the fair value of collateral are recorded at fair value. For each period presented, no impaired loans were measured using the loan’s observable market price. If an impaired loan has had a charge-off or if the fair value of the collateral is less than the recorded investment in the loan, the Company establishes a specific reserve and reports the loan as non-recurring Level 3. The fair value of collateral of impaired loans is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. | ||||||||||||||||||||
The fair value of loans held-for-sale is based on observable inputs in the secondary market. | ||||||||||||||||||||
The fair value of commitments to extend credit was estimated by either discounting cash flows or using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the current creditworthiness of the counter-parties. The estimated fair value of written financial guarantees and letters of credit is based on fees currently charged for similar agreements. The fees charged for the commitments were not material in amount. | ||||||||||||||||||||
In 2013, the Company entered into derivative swap contracts with the purchaser of its Visa Class B shares. The fair value of these derivatives is measured using an internal model that includes the use of probability weighted scenarios for estimates of Visa’s aggregate exposure to the litigation matters, with consideration of amounts funded by Visa into its escrow account for this litigation. As a result, the Company estimates a fair value for these derivatives at 12% of the net sale proceeds from the Company’s sale of the related Visa Class B shares. Since this estimation process requires application of judgment in developing significant unobservable inputs used to determine the possible outcomes and the probability weighting assigned to each scenario, these derivatives have been classified as Level 3 within the valuation hierarchy. (See also Note 3. Investment Securities contained herein.) | ||||||||||||||||||||
Assets measured at fair value on a non-recurring basis are as follows (in thousands): | ||||||||||||||||||||
Assets: | 31-Dec-13 | Fair Value | ||||||||||||||||||
Measurements Using | ||||||||||||||||||||
Significant Unobservable | ||||||||||||||||||||
Inputs (Level 3) | ||||||||||||||||||||
Impaired loans | $ | 16,942 | $ | 16,942 | ||||||||||||||||
Total | $ | 16,942 | $ | 16,942 | ||||||||||||||||
Assets: | 31-Dec-12 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||
Impaired loans | $ | 9,390 | $ | 9,390 | ||||||||||||||||
OREO | 1,572 | 1,572 | ||||||||||||||||||
Total | $ | 10,962 | $ | 10,962 | ||||||||||||||||
The following presents fair value measurements on a recurring basis as of December 31, 2013 and 2012 (in thousands): | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Significant Other | Significant | |||||||||||||||||||
Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Assets: | 31-Dec-13 | (Level 2) | (Level 3) | |||||||||||||||||
U.S. Government agency securities | $ | 100,095 | $ | 100,095 | $ | - | ||||||||||||||
Corporate bonds | 15,651 | 15,651 | - | |||||||||||||||||
Collateralized mortgage obligations | 30,104 | 30,104 | - | |||||||||||||||||
Mortgage-backed securities | 97,767 | 97,767 | - | |||||||||||||||||
Obligations of states and political subdivisions | 157,163 | 157,163 | - | |||||||||||||||||
Loans held-for-sale | 175 | 175 | - | |||||||||||||||||
Mortgage servicing rights | 2,163 | - | 2,163 | |||||||||||||||||
Total | $ | 403,118 | $ | 400,955 | $ | 2,163 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives | 932 | $ | - | $ | 932 | |||||||||||||||
Total | $ | 932 | $ | - | $ | 932 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Significant Other | Significant | |||||||||||||||||||
Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Assets: | 31-Dec-12 | (Level 2) | (Level 3) | |||||||||||||||||
U.S. Treasury securities | $ | 500 | $ | 500 | $ | - | ||||||||||||||
U.S. Government agency securities | 65,078 | 65,078 | - | |||||||||||||||||
Corporate bonds | 16,198 | 16,198 | - | |||||||||||||||||
Collateralized mortgage obligations | 89,692 | 89,692 | - | |||||||||||||||||
Mortgage-backed securities | 62,450 | 62,450 | - | |||||||||||||||||
Obligations of states and political subdivisions | 168,435 | 168,435 | - | |||||||||||||||||
Loans held-for-sale | 907 | 907 | - | |||||||||||||||||
Mortgage servicing rights | 1,856 | - | 1,856 | |||||||||||||||||
Total | $ | 405,116 | $ | 403,260 | $ | 1,856 | ||||||||||||||
Reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013, 2012 and 2011 follow (in thousands). | ||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
Collateralized | Mortgage | Derivatives | ||||||||||||||||||
Mortgage | Servicing Rights | |||||||||||||||||||
Obligations | ||||||||||||||||||||
Balance at January 1, 2011 | $ | - | $ | 1,596 | $ | - | ||||||||||||||
Transfers from level 2 | 7,994 | - | - | |||||||||||||||||
Net increases | - | 27 | - | |||||||||||||||||
Balance at December 31, 2011 | 7,994 | 1,623 | - | |||||||||||||||||
Sales | (7,994 | ) | - | - | ||||||||||||||||
Net increases | - | 233 | - | |||||||||||||||||
Balance at December 31, 2012 | - | 1,856 | - | |||||||||||||||||
Net increases | - | 307 | 932 | |||||||||||||||||
Balance at December 31, 2013 | $ | - | $ | 2,163 | $ | 932 |
SUFFOLK_BANCORP_PARENT_COMPANY
SUFFOLK BANCORP (PARENT COMPANY ONLY) CONDENSED FINANCIAL STATEMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SUFFOLK BANCORP (PARENT COMPANY ONLY) CONDENSED FINANCIAL STATEMENTS [Abstract] | ' | ||||||||||||
SUFFOLK BANCORP (PARENT COMPANY ONLY) CONDENSED FINANCIAL STATEMENTS | ' | ||||||||||||
15. SUFFOLK BANCORP (PARENT COMPANY ONLY) CONDENSED FINANCIAL STATEMENTS (in thousands) | |||||||||||||
Condensed Statements of Condition at December 31, | 2013 | 2012 | 2011 | ||||||||||
Assets: | |||||||||||||
Due from banks | $ | 605 | $ | 515 | $ | 405 | |||||||
Investment in the Bank | 165,924 | 163,007 | 135,941 | ||||||||||
Other assets | 669 | 463 | 333 | ||||||||||
Total Assets | $ | 167,198 | $ | 163,985 | $ | 136,679 | |||||||
Liabilities and Stockholders' Equity: | |||||||||||||
Other liabilities | $ | - | $ | - | $ | 119 | |||||||
Stockholders' Equity | 167,198 | 163,985 | 136,560 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 167,198 | $ | 163,985 | $ | 136,679 | |||||||
Condensed Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Expense: | |||||||||||||
Other expense | $ | 372 | $ | 358 | $ | 362 | |||||||
Loss before equity in undistributed net income (loss) of the Bank | (372 | ) | (358 | ) | (362 | ) | |||||||
Equity in undistributed earnings (loss) of the Bank | 13,090 | (1,390 | ) | 284 | |||||||||
Net income (loss) | $ | 12,718 | $ | (1,748 | ) | $ | (78 | ) | |||||
Total Comprehensive Income (Loss) | $ | 2,543 | $ | 4,208 | $ | (919 | ) | ||||||
Condensed Statements of Cash Flows for the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Cash Flows From Operating Activities: | |||||||||||||
Net income (loss) | $ | 12,718 | $ | (1,748 | ) | $ | (78 | ) | |||||
Less: equity in undistributed (earnings) loss of the Bank | (13,090 | ) | 1,390 | (284 | ) | ||||||||
Other - net | 371 | 209 | 1,504 | ||||||||||
Net cash (used in) provided by operating activities | (1 | ) | (149 | ) | 1,142 | ||||||||
Cash Flows From Investing Activities: | |||||||||||||
Advances to the Bank | - | (22,500 | ) | (2,000 | ) | ||||||||
Net cash used in investing activities | - | (22,500 | ) | (2,000 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||
Dividend reinvestment and stock option exercises | 91 | - | 659 | ||||||||||
Proceeds from issuance of capital stock | - | 22,759 | - | ||||||||||
Dividends paid | - | - | (1,454 | ) | |||||||||
Net cash provided by (used in) financing activities | 91 | 22,759 | (795 | ) | |||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 90 | 110 | (1,653 | ) | |||||||||
Cash and Cash Equivalents, Beginning of Year | 515 | 405 | 2,058 | ||||||||||
Cash and Cash Equivalents, End of Year | $ | 605 | $ | 515 | $ | 405 | |||||||
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | ' | ||||||||||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||||||||||||||||||
16. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
4th | 3rd | 2nd | 1st | 4th | 3rd | 2nd | 1st | ||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
Interest income | $ | 15,969 | $ | 14,705 | $ | 14,560 | $ | 14,444 | $ | 14,317 | $ | 15,041 | $ | 15,845 | $ | 15,244 | |||||||||||||||||
Interest expense | 682 | 733 | 747 | 768 | 829 | 887 | 967 | 1,036 | |||||||||||||||||||||||||
Net interest income | 15,287 | 13,972 | 13,813 | 13,676 | 13,488 | 14,154 | 14,878 | 14,208 | |||||||||||||||||||||||||
Provision (credit) for loan losses (1) | 1,250 | - | - | - | (1,100 | ) | 12,000 | (2,400 | ) | - | |||||||||||||||||||||||
Net interest income after provision (credit) for loan losses | 14,037 | 13,972 | 13,813 | 13,676 | 14,588 | 2,154 | 17,278 | 14,208 | |||||||||||||||||||||||||
Non-interest income (2) | 7,139 | 6,587 | 2,464 | 3,317 | 4,344 | 1,881 | 2,401 | 2,255 | |||||||||||||||||||||||||
Operating expenses (3) | 16,982 | 15,090 | 12,692 | 13,801 | 15,656 | 17,171 | 14,139 | 14,605 | |||||||||||||||||||||||||
Income tax expense (benefit) | 866 | 1,557 | 816 | 483 | 1,231 | (3,975 | ) | 1,340 | 690 | ||||||||||||||||||||||||
Net income (loss) | $ | 3,328 | $ | 3,912 | $ | 2,769 | $ | 2,709 | $ | 2,045 | $ | (9,161 | ) | $ | 4,200 | $ | 1,168 | ||||||||||||||||
Net income (loss) per common share - basic | $ | 0.29 | $ | 0.34 | $ | 0.24 | $ | 0.23 | $ | 0.18 | $ | (0.94 | ) | $ | 0.43 | $ | 0.12 | ||||||||||||||||
Net income (loss) per common share - diluted | $ | 0.29 | $ | 0.34 | $ | 0.24 | $ | 0.23 | $ | 0.18 | $ | (0.94 | ) | $ | 0.43 | $ | 0.12 | ||||||||||||||||
Cash dividends per common share | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
-1 | 4th quarter 2013 amount reflects the impact of a charge-off of $1.5 million related to the sale of $8 million in non-performing and classified loans. | ||||||||||||||||||||||||||||||||
-2 | 4th quarter 2013 and 3rd quarter 2013 amounts include gains on Visa shares sold of $3.9 million and $3.8 million, respectively. | ||||||||||||||||||||||||||||||||
-3 | 4th quarter 2013 and 3rd quarter 2013 amounts include branch consolidation costs of $1.6 million and $460 thousand, respectively. Also included are reserve and carrying costs related to Visa shares sold totaling $515 thousand and $474 thousand for the 4th and 3rd quarter 2013, respectively. |
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2013 | |
LEGAL PROCEEDINGS [Abstract] | ' |
LEGAL PROCEEDINGS | ' |
17. LEGAL PROCEEDINGS | |
On November 19, 2013, the U.S. District Court for the Eastern District of New York dismissed with prejudice the class action, James E. Fisher v. Suffolk Bancorp, et al., No. 11 Civ. 5114 (SJ), filed in the District Court on October 20, 2011. The complaint alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by knowingly or recklessly making false statements about, or failing to disclose accurate information about, the Company’s financial results and condition, loan loss reserves, impaired assets, internal and disclosure controls, and banking practices. The complaint sought damages in an unspecified amount on behalf of purchasers of the Company’s Common Stock between March 12, 2010 and August 10, 2011 (“Class Members”). The Company denied and continues to deny each and all of the allegations alleged by the plaintiffs in the action. In accordance with the parties’ settlement agreement and the court’s approval order, the Company’s insurer paid the sum of $2.8 million into an escrow account for the benefit of Class Members and for the payment of attorneys’ fees and expenses to the lead counsel in the action. | |
On September 25, 2013, the Supreme Court of the State of New York for the County of Suffolk dismissed with prejudice the shareholder derivative action, Susan Forbush v. Edgar F. Goodale, et al., No. 33538/2011, filed in the Supreme Court on October 28, 2011, and approved the settlement among the parties to that action along with another shareholder of the Company who had made a litigation demand on the Company. On October 3, 2013, as requested by the parties in accordance with their settlement agreement, the U.S. District Court for the Eastern District of New York dismissed with prejudice the shareholder derivative action, Robert J. Levy v. J. Gordon Huszagh, et al., Civ. 3321 (JS), filed in the District Court on July 11, 2011. These derivative actions alleged that the defendants breached their fiduciary duties by making improper statements regarding the sufficiency of the Company’s allowance for loan losses and loan portfolio and credit quality, and by failing to establish sufficient allowances for loan losses and to establish effective credit risk management policies. The Company denied and continues to deny each and all of the allegations alleged by the plaintiffs in the actions. The terms of the settlement require the Company to implement various corporate governance enhancements, and, as part of the settlement, plaintiff’s counsel was awarded fees and expenses in the amount of $600 thousand which was paid by the Company’s insurer. | |
The Company assesses its liabilities and contingencies in connection with legal proceedings on an ongoing basis. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. We have concluded that an amount for such a loss contingency is not to be accrued at this time. |
BRANCH_CONSOLIDATION
BRANCH CONSOLIDATION | 12 Months Ended |
Dec. 31, 2013 | |
BRANCH CONSOLIDATION [Abstract] | ' |
BRANCH CONSOLIDATION | ' |
18. BRANCH CONSOLIDATION | |
In 2013, the Company announced the phased-in closing of six branches in Suffolk County that, once fully implemented, will reduce annual operating expenses by an estimated $2.4 million. | |
Two branches, Middle Island and Water Mill, closed in October 2013. One-time costs of $596 thousand, including accelerated depreciation of $136 thousand, were recorded in 2013 related to the closing of these two branches. Of these one-time expenses, the amounts recorded in branch consolidation costs (primarily lease termination costs and severance), occupancy expense and equipment expense were $460 thousand, $84 thousand and $52 thousand, respectively. Partially offsetting these one-time costs was a $404 thousand gain on the sale of the Water Mill branch building in the fourth quarter of 2013. This gain was recorded in other operating income. | |
Mattituck, Port Jefferson Station, Manorville and Montauk Harbor are scheduled to be closed in the first quarter of 2014. One-time costs of $2.0 million, including accelerated depreciation of $371 thousand, were recorded in 2013 related to the 2014 closing of these four branches. Of these one-time expenses, the amounts recorded in branch consolidation costs (primarily lease termination costs and severance), occupancy expense and equipment expense were $1.6 million, $192 thousand and $179 thousand, respectively. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
Organization and Nature of Operations | ' |
Organization and Nature of Operations — Suffolk Bancorp (the “Company”) was incorporated in 1985 as a bank holding company. The Company currently owns all of the outstanding capital stock of the Suffolk County National Bank of Riverhead (the “Bank”). The Bank was organized under the national banking laws of the United States in 1890. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. The Bank formed the REIT, Suffolk Greenway, Inc., and owns 100% of an insurance agency and two corporations used to acquire foreclosed real estate. The insurance agency and the two corporations used to acquire foreclosed real estate are immaterial to the Company’s operations. All material intercompany accounts and transactions have been eliminated in consolidation. Unless the context otherwise requires, references herein to the Company include the Company and the Bank on a consolidated basis. | |
The accounting and reporting policies of the Company conform to U.S. GAAP and general practices within the banking industry. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. The following describe the most significant of these policies. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents — For purposes of the consolidated statements of cash flows, cash and due from banks and federal funds sold are considered to be cash equivalents. Generally, federal funds are sold for one-day periods. | |
Investment Securities | ' |
Investment Securities — The Company reports investment securities in one of the following categories: (i) held to maturity (management has the intent and ability to hold to maturity), which are reported at amortized cost; (ii) trading (held for current resale), which are reported at fair value, with unrealized gains and losses included in earnings; and (iii) available for sale, which are reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity. The Company has classified all of its holdings of investment securities as either held to maturity or available for sale. At the time a security is purchased, a determination is made as to the appropriate classification. | |
Premiums and discounts on investment securities are amortized as expense and accreted as income over the estimated life of the respective security using a method that generally approximates the level-yield method. Gains and losses on the sales of investment securities are recognized upon realization, using the specific identification method and shown separately in the consolidated statements of operations. | |
Management evaluates securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the statement of operations and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
Loans and Loan Interest Income Recognition | ' |
Loans and Loan Interest Income Recognition — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned discounts, deferred loan fees and costs. Unearned discounts on installment loans are credited to income using methods that result in a level yield. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the respective term of the loan without anticipating prepayments. | |
Interest income is accrued on the unpaid loan principal balance. Recognition of interest income is discontinued when reasonable doubt exists as to whether principal or interest due can be collected. Loans of all classes will generally no longer accrue interest when over 90 days past due unless the loan is well-secured and in process of collection. When a loan is placed on non-accrual status, all interest previously accrued, but not collected, is reversed against current-year interest income. Interest received on such loans is applied against principal or interest, according to management’s judgment as to the collectability of the principal, until qualifying for return to accrual status. Loans start accruing interest again when they become current as to principal and interest for at least six months, and when, after a well-documented analysis by management, it has been determined that the loans can be collected in full. For all classes of loans, an impaired loan is defined as a loan for which it is probable that the lender will not collect all amounts due under the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties are considered TDRs and are classified as impaired. Generally, TDRs are initially classified as non-accrual until sufficient time has passed to assess whether the restructured loan will continue to perform. For impaired, accruing loans, interest income is recognized on an accrual basis with cash offsetting the recorded accruals upon receipt. | |
Allowance for Loan Losses | ' |
Allowance for Loan Losses - The allowance for loan losses is a valuation allowance for probable incurred losses, increased by the provision for loan losses and recoveries, and decreased by loan charge-offs. For all classes of loans, when a loan, in full or in part, is deemed uncollectible, it is charged against the allowance for loan losses. This happens when the loan is past due and the borrower has not shown the ability or intent to make the loan current, or the borrower does not have sufficient assets to pay the debt, or the value of the collateral is less than the balance of the loan and is not considered likely to improve soon. The allowance for loan losses is determined by a continuous analysis of the loan portfolio. Such analysis includes changes in the size and composition of the portfolio, the Company’s own historical loan losses, industry-wide losses, current and anticipated economic trends, and details about individual loans. It also includes estimates of the actual value of collateral, other possible sources of repayment and estimates that are susceptible to significant changes due to changes in appraisal values of collateral, national and regional economic conditions and other relevant factors. All non-accrual loans over $250 thousand in the commercial and industrial, commercial real estate and real estate construction loan classes and all TDRs are evaluated individually for impairment. Management will use judgment to determine if there are other loans outside of these two categories that fit the definition of impaired. All other loans are generally evaluated as homogeneous pools with similar risk characteristics. In assessing the adequacy of the allowance for loan losses, management reviews the loan portfolio by separate classes that have similar risk and collateral characteristics; e.g., commercial and industrial, commercial real estate, multifamily, real estate construction, residential mortgages, home equity and consumer loans. | |
The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. Specific reserves are established based on an analysis of the most probable sources of repayment and liquidation of collateral. Impaired loans that are collateral dependent are reviewed based on their collateral and the estimated time required to recover the Company’s investment in the loans, as well as the cost of doing so, and the estimate of the recovery. Non-collateral dependent impaired loans are reviewed based on the present value of estimated future cash flows, including balloon payments, if any, using the loan’s effective interest rate. While every impaired loan is evaluated individually, not every loan requires a specific reserve. Specific reserves fluctuate based on changes in the underlying loans, anticipated sources of repayment, and charge-offs. The general component covers non-impaired loans and is based on historical loss experience for each loan class from a rolling twelve quarter period and modifying those percentages, if necessary, after adjusting for current qualitative and environmental factors that reflect changes in the estimated collectability of the loan class not captured by historical loss data. These factors augment actual loss experience and help estimate the probability of loss within the loan portfolio based on emerging or inherent risk trends. These qualitative factors are applied as an adjustment to historical loss rates and require judgments that cannot be subjected to exact mathematical calculation. These adjustments reflect management’s overall estimate of the extent to which current losses on a pool of loans will differ from historical loss experience. These adjustments are subjective estimates and management reviews them on a quarterly basis. TDRs are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. | |
Transfers of Financial Instruments | ' |
Transfers of Financial Instruments - Transfers of financial assets for which the Bank has surrendered control of the financial assets are accounted for as sales to the extent that consideration other than beneficial interests in the transferred assets is received in exchange. Retained interests in a sale or securitization of financial assets are measured at the date of transfer by allocating the previous carrying amount between the assets transferred and based on their relative estimated fair values. The fair values of retained servicing rights and any other retained interests are determined based on the present value of expected future cash flows associated with those interests and by reference to market prices for similar assets. There were no transfers of financial assets to related or affiliated parties. At December 31, 2013 and 2012, the Bank’s servicing loan portfolio approximated $161 million and $138 million, respectively, which are not included in the accompanying consolidated statements of condition. The carrying value which approximates the estimated fair value of mortgage servicing rights was $2 million as of December 31, 2013 and 2012, and is recorded in goodwill and other intangibles in the Company’s consolidated statements of condition. | |
Loans Held-For-Sale | ' |
Loans Held-For-Sale – Loans held-for-sale are carried at the lower of aggregate cost or fair value, based on observable inputs in the secondary market. Changes in fair value of loans held-for-sale are recognized in earnings. | |
Other Real Estate Owned | ' |
Other Real Estate Owned (“OREO”) — Property acquired through foreclosure, or OREO, is initially stated at fair value less estimated selling costs. Losses arising at the time of the acquisition of property are charged against the allowance for loan losses. Any additional write-downs to the carrying value of these assets that may be required, as well as the cost of maintaining and operating these foreclosed properties, are charged to expense. The Company held no OREO at December 31, 2013. The carrying value of OREO at December 31, 2012 was $1.6 million. | |
Premises and Equipment | ' |
Premises and Equipment — Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is calculated by the declining-balance or straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the term of the lease or the estimated life of the asset, whichever is shorter. The Bank periodically evaluates impairment of long-lived assets to be held and used or to be disposed of by sale. There was no impairment of long-lived assets as of December 31, 2013 and 2012, respectively. | |
Bank Owned Life Insurance | ' |
Bank Owned Life Insurance - Bank owned life insurance is recorded at the lower of the cash surrender value or the amount that can be realized under the insurance policy and is included as an asset in the consolidated statements of condition. Changes in the cash surrender value and insurance benefit payments are recorded in non-interest income in the consolidated statements of operations. | |
Goodwill | ' |
Goodwill — Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of the acquired business. Goodwill is not amortized but tested for impairment at least annually or when there is a circumstance that would indicate the need to evaluate between annual tests. Based on these tests, there was no impairment of goodwill as of December 31, 2013 and 2012. | |
Allowance for Off-Balance Sheet Credit Risk | ' |
Allowance for Off-Balance Sheet Credit Risk — The balance of the allowance for off-balance sheet credit risk is determined by management’s estimate of the amount of financial risk in outstanding loan commitments and contingent liabilities such as performance and financial letters of credit. The allowance for off-balance sheet credit risk was $255 thousand at December 31, 2013 and 2012, and is recorded in other liabilities in the Company’s consolidated statements of condition. | |
The Company has financial and performance letters of credit. Financial letters of credit require the Bank to make payment if the customer’s financial condition deteriorates, as defined in the agreements. Performance letters of credit require the Bank to make payments if the customer fails to perform certain non-financial contractual obligations. | |
Income Taxes | ' |
Income Taxes — Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities, computed using enacted tax rates. Deferred tax assets are recognized if it is more likely than not that a future benefit will be realized. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, the Company considers all relevant positive and negative evidence, including taxable income in carryback years, scheduled reversals of deferred tax liabilities, expected future taxable income and available tax planning strategies. | |
Summary of Retirement Benefits Accounting | ' |
Summary of Retirement Benefits Accounting — The Company’s retirement plan is noncontributory and covers substantially all eligible employees. The plan conforms to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and the Pension Protection Act of 2006, which requires certain funding rules for defined benefit plans. The Company’s policy is to accrue for all pension costs and to fund the maximum amount allowable for tax purposes. Actuarial gains and losses that arise from changes in assumptions concerning future events are amortized over a period that reflects the long-term nature of pension expense used in estimating pension costs. | |
The Company accounts for its retirement plan in accordance with Accounting Standards Codification (“ASC”) 715, “Compensation – Retirement Benefits,” and ASC 960, “Plan Accounting – Defined Benefit Pension Plans,” which require an employer that is a business entity and sponsors one or more single-employer defined benefit plans to recognize the funded status of a benefit plan in its statement of financial position; recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost; measure defined benefit plan assets and obligation as of the date of fiscal year-end statement of financial position (with limited exceptions); and disclose in the notes to financial statements additional information about certain effects of net periodic benefit cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset and obligation. Plan assets and benefit obligations shall be measured as of the date of its statement of financial position and in determining the amount of net periodic benefit cost. An employer is required to use the same date for the measurement of plan assets as for the statement of condition. The Company accrues for post-retirement benefits other than pensions by accruing the cost of providing those benefits to an employee during the years that the employee serves. | |
Stock-Based Compensation | ' |
Stock-Based Compensation — The Company accounts for stock-based compensation on a modified prospective basis with the fair value of grants of employee stock options recognized in the financial statements. | |
Treasury Stock | ' |
Treasury Stock — The balance of treasury stock is computed at par value. Under the par value method, the acquisition cost of treasury shares is compared with the amount received at the time of their original issue. The treasury stock account is debited for the par value (or stated value) of the shares and a pro rata amount of any excess over par (or stated value) on original issuance is charged to the surplus account. Any excess of the acquisition cost over the original issue price is charged to retained earnings. If, however, the original issue price exceeds the acquisition price of the treasury stock, this difference is credited to surplus. | |
Earnings-Per-Share | ' |
Earnings Per Share — Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding, increased by the number of potential common shares that are assumed to have been purchased with the proceeds from the exercise of stock options. These purchases were assumed to have been made at the average market price of the common stock. The average market price is based on the average closing price for the common stock. | |
Comprehensive Income | ' |
Comprehensive Income — Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by owners and distributions to owners. Other comprehensive income includes revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income but excluded from net income. Comprehensive income and accumulated other comprehensive income are reported net of related income taxes. Accumulated other comprehensive income for the Bank consists of unrealized holding gains or losses on securities available for sale and gains or losses on the unfunded projected benefit obligation of the pension plan. | |
Derivatives | ' |
Derivatives - Derivatives are contracts between counterparties that specify conditions under which settlements are to be made. The only derivatives held by the Company are swap contracts with the purchaser of its Visa Class B shares. The Company records its derivatives on the balance sheet at fair value. The Company’s derivatives do not qualify for hedge accounting. As a result, changes in fair value are recognized in earnings in the period in which they occur. (See also Note 3. Investment Securities contained herein.) | |
Fair Value Measurements | ' |
Fair Value Measurements — Fair value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability in an exchange. The definition of fair value includes the exchange price, which is the price in an orderly transaction between market participants to sell an asset or transfer a liability in the principal market for the asset or liability. Market participant assumptions include assumptions about risk, the risk inherent in a particular valuation technique used to measure fair value and/or the risk inherent in the inputs to the valuation technique, as well as the effect of credit risk on the fair value of liabilities. | |
Segment Reporting | ' |
Segment Reporting — ASC 28, “Segment Reporting,” requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate and their major customers. The Company is a community bank which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers as opposed to building specific lines of business. As a result, at December 31, 2013 and 2012, the Company, the only reportable segment, is not organized around discernible lines of business and prefers to work as an integrated unit to customize solutions for its customers, with business line emphasis and product offerings changing over time as needs and demands change. | |
Recent Accounting Guidance | ' |
Recent Accounting Guidance – In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Topic 310), “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Management intends to adopt ASU 2014-04 on January 1, 2015 and does not believe that the adoption will have a material effect on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740), “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” to clarify the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company’s adoption of ASU 2013-11 on January 1, 2014 did not have a material effect on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220), “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This standard is effective prospectively for public entities for annual and interim reporting periods beginning after December 15, 2012. Being disclosure-related only, the Company’s adoption of ASU 2013-02 on January 1, 2013 did not have a material effect on the Company’s results of operations or financial condition. | |
Reclassifications | ' |
Reclassifications — Certain reclassifications have been made to prior period information in order to conform to the current period’s presentation. Such reclassifications had no impact on the Company’s consolidated results of operations or financial condition. |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") [Abstract] | ' | ||||||||||||||||||||||||
Changes in AOCI by component, net of tax | ' | ||||||||||||||||||||||||
The changes in the Company’s AOCI by component, net of tax, for the years ended December 31, 2013 and 2012 follow (in thousands). The decrease in net unrealized gains on available for sale securities for the year ended December 31, 2013 resulted solely from the negative impact of higher interest rates in 2013. | |||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||||||||||
Unrealized Gains | Pension and Post- | Total | Unrealized Gains | Pension and Post- | Total | ||||||||||||||||||||
and Losses on | Retirement Plan | and Losses on | Retirement Plan | ||||||||||||||||||||||
Available for Sale | Items | Available for Sale | Items | ||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||
Beginning balance | $ | 10,553 | $ | (7,667 | ) | $ | 2,886 | $ | 11,873 | $ | (14,943 | ) | $ | (3,070 | ) | ||||||||||
Other comprehensive (loss) income before reclassifications | (14,391 | ) | 4,473 | (9,918 | ) | (1,458 | ) | 7,276 | 5,818 | ||||||||||||||||
Amounts reclassified from AOCI | (257 | ) | - | (257 | ) | 138 | - | 138 | |||||||||||||||||
Net other comprehensive (loss) income | (14,648 | ) | 4,473 | (10,175 | ) | (1,320 | ) | 7,276 | 5,956 | ||||||||||||||||
Ending balance | $ | (4,095 | ) | $ | (3,194 | ) | $ | (7,289 | ) | $ | 10,553 | $ | (7,667 | ) | $ | 2,886 | |||||||||
Reclassifications out of AOCI | ' | ||||||||||||||||||||||||
The table below presents reclassifications out of AOCI for the year ended December 31, 2013 (in thousands). | |||||||||||||||||||||||||
Amount Reclassified | |||||||||||||||||||||||||
from AOCI | |||||||||||||||||||||||||
Details about AOCI Components | Year Ended | Affected Line Item in the Statement Where Net Income is Presented | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Unrealized gains and losses on available for sale securities | $ | 403 | Net gain (loss) on sale of securities available for sale | ||||||||||||||||||||||
(146 | ) | Income tax expense (benefit) | |||||||||||||||||||||||
Total reclassifications, net of tax | $ | 257 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | ' | ||||||||||||||||||||||||||||||||
Amortized cost, estimated fair values, and gross unrealized gains and losses of securities available for sale and held to maturity | ' | ||||||||||||||||||||||||||||||||
The amortized cost, estimated fair value and gross unrealized gains and losses of the Company’s investment securities available for sale and held to maturity at December 31, 2013 and 2012 were as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | Gross | Gross | Estimated | ||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | - | $ | - | $ | - | $ | - | $ | 500 | $ | - | $ | - | $ | 500 | |||||||||||||||||
U.S. Government agency securities | 109,315 | - | (9,220 | ) | 100,095 | 65,085 | 70 | (77 | ) | 65,078 | |||||||||||||||||||||||
Obligations of states and political subdivisions | 148,664 | 8,499 | - | 157,163 | 155,121 | 13,314 | - | 168,435 | |||||||||||||||||||||||||
Collateralized mortgage obligations | 30,335 | 557 | (788 | ) | 30,104 | 87,624 | 2,148 | (80 | ) | 89,692 | |||||||||||||||||||||||
Mortgage-backed securities | 103,332 | 19 | (5,584 | ) | 97,767 | 61,750 | 766 | (66 | ) | 62,450 | |||||||||||||||||||||||
Corporate bonds | 15,565 | 264 | (178 | ) | 15,651 | 15,701 | 497 | - | 16,198 | ||||||||||||||||||||||||
Total available for sale securities | 407,211 | 9,339 | (15,770 | ) | 400,780 | 385,781 | 16,795 | (223 | ) | 402,353 | |||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 11,666 | 655 | (87 | ) | 12,234 | 8,035 | 826 | - | 8,861 | ||||||||||||||||||||||||
Total investment securities | $ | 418,877 | $ | 9,994 | $ | (15,857 | ) | $ | 413,014 | $ | 393,816 | $ | 17,621 | $ | (223 | ) | $ | 411,214 | |||||||||||||||
Investment securities amortized cost, maturities, and approximate fair value | ' | ||||||||||||||||||||||||||||||||
The amortized cost, contractual maturities and estimated fair value of the Company’s investment securities at December 31, 2013 (in thousands) are presented in the table below. CMOs and MBS assume maturity dates pursuant to average lives. | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 12,171 | $ | 12,328 | |||||||||||||||||||||||||||||
Due from one to five years | 131,422 | 137,011 | |||||||||||||||||||||||||||||||
Due from five to ten years | 240,768 | 231,083 | |||||||||||||||||||||||||||||||
Due after ten years | 22,850 | 20,358 | |||||||||||||||||||||||||||||||
Total securities available for sale | 407,211 | 400,780 | |||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | 824 | 833 | |||||||||||||||||||||||||||||||
Due from one to five years | 6,618 | 7,251 | |||||||||||||||||||||||||||||||
Due from five to ten years | 205 | 218 | |||||||||||||||||||||||||||||||
Due after ten years | 4,019 | 3,932 | |||||||||||||||||||||||||||||||
Total securities held to maturity | 11,666 | 12,234 | |||||||||||||||||||||||||||||||
Total investment securities | $ | 418,877 | $ | 413,014 | |||||||||||||||||||||||||||||
Proceeds from sales of securities available for sale and the associated realized securities gains and losses | ' | ||||||||||||||||||||||||||||||||
The proceeds from sales of securities available for sale and the associated net realized gains (losses) are shown below for the years indicated (in thousands): | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Proceeds | $ | 13,427 | $ | 7,457 | $ | 44,142 | |||||||||||||||||||||||||||
Gross realized gains | $ | 403 | $ | - | $ | 1,701 | |||||||||||||||||||||||||||
Gross realized losses | - | 217 | 53 | ||||||||||||||||||||||||||||||
Net realized gains (losses) | $ | 403 | $ | (217 | ) | $ | 1,648 | ||||||||||||||||||||||||||
Length of time individual securities for held-to-maturity and available-for-sale held in a continuous unrealized loss position | ' | ||||||||||||||||||||||||||||||||
Information pertaining to securities with unrealized losses at December 31, 2013 and 2012, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (in thousands): | |||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||||||||||
31-Dec-13 | Fair value | Losses | Fair value | Losses | Fair value | Losses | |||||||||||||||||||||||||||
U.S. Government agency securities | $ | 86,590 | $ | 7,726 | $ | 13,505 | $ | 1,494 | $ | 100,095 | $ | 9,220 | |||||||||||||||||||||
Obligations of states and political subdivisions | 3,932 | 87 | - | - | 3,932 | 87 | |||||||||||||||||||||||||||
Collateralized mortgage obligations | 2,935 | 160 | 5,713 | 628 | 8,648 | 788 | |||||||||||||||||||||||||||
Mortgage-backed securities | 84,869 | 4,850 | 12,637 | 734 | 97,506 | 5,584 | |||||||||||||||||||||||||||
Corporate bonds | 8,681 | 178 | - | - | 8,681 | 178 | |||||||||||||||||||||||||||
Total | $ | 187,007 | $ | 13,001 | $ | 31,855 | $ | 2,856 | $ | 218,862 | $ | 15,857 | |||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||||||||||
31-Dec-12 | Fair value | Losses | Fair value | Losses | Fair value | Losses | |||||||||||||||||||||||||||
U.S. Government agency securities | $ | 28,958 | $ | 77 | $ | - | $ | - | $ | 28,958 | $ | 77 | |||||||||||||||||||||
Collateralized mortgage obligations | 7,878 | 80 | - | - | 7,878 | 80 | |||||||||||||||||||||||||||
Mortgage-backed securities | 14,098 | 66 | - | - | 14,098 | 66 | |||||||||||||||||||||||||||
Total | $ | 50,934 | $ | 223 | $ | - | $ | - | $ | 50,934 | $ | 223 |
LOANS_Tables
LOANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
LOANS [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Categorizes total loans | ' | ||||||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, net loans disaggregated by class consisted of the following (in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 171,199 | $ | 168,709 | |||||||||||||||||||||||||||||||||
Commercial real estate | 469,357 | 360,010 | |||||||||||||||||||||||||||||||||||
Multifamily | 184,624 | 9,261 | |||||||||||||||||||||||||||||||||||
Real estate construction | 6,565 | 15,469 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 169,552 | 146,575 | |||||||||||||||||||||||||||||||||||
Home equity | 57,112 | 66,468 | |||||||||||||||||||||||||||||||||||
Consumer | 10,439 | 14,288 | |||||||||||||||||||||||||||||||||||
Gross loans | 1,068,848 | 780,780 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | (17,263 | ) | (17,781 | ) | |||||||||||||||||||||||||||||||||
Net loans at end of period | $ | 1,051,585 | $ | 762,999 | |||||||||||||||||||||||||||||||||
Summary of changes in the allowance for loan losses | ' | ||||||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, the ending balance in the allowance for loan losses disaggregated by class and impairment methodology is as follows (in thousands). Also in the tables below are total loans at December 31, 2013 and 2012 disaggregated by class and impairment methodology (in thousands). | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Commercial real estate | Multifamily | Real estate construction | Residential | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
and industrial | mortgages | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 41 | $ | - | $ | - | $ | - | $ | 709 | $ | 93 | $ | 102 | $ | - | $ | 945 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 2,574 | 6,626 | 2,159 | 88 | 1,754 | 652 | 139 | 2,326 | 16,318 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,615 | $ | 6,626 | $ | 2,159 | $ | 88 | $ | 2,463 | $ | 745 | $ | 241 | $ | 2,326 | $ | 17,263 | |||||||||||||||||||
Loan balances: | |||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 7,754 | $ | 11,821 | $ | - | $ | - | $ | 5,049 | $ | 1,082 | $ | 284 | $ | - | $ | 25,990 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 163,445 | 457,536 | 184,624 | 6,565 | 164,503 | 56,030 | 10,155 | - | 1,042,858 | ||||||||||||||||||||||||||||
Ending balance | $ | 171,199 | $ | 469,357 | $ | 184,624 | $ | 6,565 | $ | 169,552 | $ | 57,112 | $ | 10,439 | $ | - | $ | 1,068,848 | |||||||||||||||||||
31-Dec-12 | Commercial real estate | Multifamily | Real estate construction | Residential mortgages | Home equity | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||||
and industrial | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 340 | $ | 22 | $ | - | $ | 1 | $ | 575 | $ | 86 | $ | - | $ | - | $ | 1,024 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 5,841 | 5,977 | 150 | 140 | 1,001 | 821 | 189 | 2,638 | 16,757 | ||||||||||||||||||||||||||||
Ending balance | $ | 6,181 | $ | 5,999 | $ | 150 | $ | 141 | $ | 1,576 | $ | 907 | $ | 189 | $ | 2,638 | $ | 17,781 | |||||||||||||||||||
Loan balances: | |||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,369 | $ | 9,443 | $ | - | $ | 1,961 | $ | 4,660 | $ | 502 | $ | 21 | $ | - | $ | 26,956 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | 158,340 | 350,567 | 9,261 | 13,508 | 141,915 | 65,966 | 14,267 | - | 753,824 | ||||||||||||||||||||||||||||
Ending balance | $ | 168,709 | $ | 360,010 | $ | 9,261 | $ | 15,469 | $ | 146,575 | $ | 66,468 | $ | 14,288 | $ | - | $ | 780,780 | |||||||||||||||||||
Summary of current and past due loans | ' | ||||||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, past due loans disaggregated by class were as follows (in thousands). | |||||||||||||||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 30 - 59 days | 60 - 89 days | 90 days and over | Total | Current | Total | |||||||||||||||||||||||||||||||
Commercial and industrial | $ | 13 | $ | - | $ | 5,014 | $ | 5,027 | $ | 166,172 | $ | 171,199 | |||||||||||||||||||||||||
Commercial real estate | 631 | - | 7,492 | 8,123 | 461,234 | 469,357 | |||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 184,624 | 184,624 | |||||||||||||||||||||||||||||||
Real estate construction | - | - | - | - | 6,565 | 6,565 | |||||||||||||||||||||||||||||||
Residential mortgages | 1,535 | 339 | 1,897 | 3,771 | 165,781 | 169,552 | |||||||||||||||||||||||||||||||
Home equity | 795 | 100 | 647 | 1,542 | 55,570 | 57,112 | |||||||||||||||||||||||||||||||
Consumer | 75 | - | 133 | 208 | 10,231 | 10,439 | |||||||||||||||||||||||||||||||
Total | $ | 3,049 | $ | 439 | $ | 15,183 | $ | 18,671 | $ | 1,050,177 | $ | 1,068,848 | |||||||||||||||||||||||||
% of Total Loans | 0.3 | % | 0 | % | 1.4 | % | 1.7 | % | 98.3 | % | 100 | % | |||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||||||
31-Dec-12 | 30 - 59 days | 60 - 89 days | 90 days and over | Total | Current | Total | |||||||||||||||||||||||||||||||
Commercial and industrial | $ | 6,591 | $ | 1,274 | $ | 6,529 | $ | 14,394 | $ | 154,315 | $ | 168,709 | |||||||||||||||||||||||||
Commercial real estate | 1,145 | 329 | 5,192 | 6,666 | 353,344 | 360,010 | |||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 9,261 | 9,261 | |||||||||||||||||||||||||||||||
Real estate construction | 1,382 | - | 1,961 | 3,343 | 12,126 | 15,469 | |||||||||||||||||||||||||||||||
Residential mortgages | 2,867 | 6 | 2,466 | 5,339 | 141,236 | 146,575 | |||||||||||||||||||||||||||||||
Home equity | 261 | 100 | 266 | 627 | 65,841 | 66,468 | |||||||||||||||||||||||||||||||
Consumer | 189 | 18 | 21 | 228 | 14,060 | 14,288 | |||||||||||||||||||||||||||||||
Total | $ | 12,435 | $ | 1,727 | $ | 16,435 | $ | 30,597 | $ | 750,183 | $ | 780,780 | |||||||||||||||||||||||||
% of Total Loans | 1.6 | % | 0.2 | % | 2.1 | % | 3.9 | % | 96.1 | % | 100 | % | |||||||||||||||||||||||||
Summary of impaired loans | ' | ||||||||||||||||||||||||||||||||||||
The following table presents the Company’s impaired loans disaggregated by class for the years ended December 31, 2013 and 2012 (in thousands). | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Unpaid | Recorded | Allowance | Unpaid | Recorded | Allowance | ||||||||||||||||||||||||||||||||
Principal | Balance | Allocated | Principal | Balance | Allocated | ||||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 6,711 | $ | 6,711 | $ | - | $ | 7,913 | $ | 7,492 | $ | - | |||||||||||||||||||||||||
Commercial real estate | 12,239 | 11,821 | - | 8,859 | 7,282 | - | |||||||||||||||||||||||||||||||
Real estate construction | - | - | - | 1,334 | 1,305 | - | |||||||||||||||||||||||||||||||
Residential mortgages | 2,305 | 2,176 | - | 1,918 | 1,788 | - | |||||||||||||||||||||||||||||||
Home equity | 891 | 891 | - | 418 | 416 | - | |||||||||||||||||||||||||||||||
Consumer | 25 | 9 | - | 21 | 21 | - | |||||||||||||||||||||||||||||||
Subtotal | 22,171 | 21,608 | - | 20,463 | 18,304 | - | |||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,043 | 1,043 | 41 | 2,884 | 2,877 | 340 | |||||||||||||||||||||||||||||||
Commercial real estate | - | - | - | 2,161 | 2,161 | 22 | |||||||||||||||||||||||||||||||
Real estate construction | - | - | - | 656 | 656 | 1 | |||||||||||||||||||||||||||||||
Residential mortgages | 2,873 | 2,873 | 709 | 3,015 | 2,872 | 575 | |||||||||||||||||||||||||||||||
Home equity | 328 | 191 | 93 | 86 | 86 | 86 | |||||||||||||||||||||||||||||||
Consumer | 274 | 275 | 102 | - | - | - | |||||||||||||||||||||||||||||||
Subtotal | 4,518 | 4,382 | 945 | 8,802 | 8,652 | 1,024 | |||||||||||||||||||||||||||||||
Total | $ | 26,689 | $ | 25,990 | $ | 945 | $ | 29,265 | $ | 26,956 | $ | 1,024 | |||||||||||||||||||||||||
The following table presents the Company’s average recorded investment in impaired loans and the related interest income recognized disaggregated by class for the years ended December 31, 2013, 2012 and 2011 (in thousands). No interest income was recognized on a cash basis on impaired loans for any of the periods presented. | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||
Average | Interest income | Average | Interest income | Average | Interest income | ||||||||||||||||||||||||||||||||
recorded | recognized on | recorded | recognized on | recorded | recognized on | ||||||||||||||||||||||||||||||||
investment in | impaired loans | investment in | impaired loans | investment in | impaired loans | ||||||||||||||||||||||||||||||||
impaired loans | impaired loans | impaired loans | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 12,065 | $ | 800 | $ | 23,215 | $ | 447 | $ | 25,179 | $ | 1,422 | |||||||||||||||||||||||||
Commercial real estate | 11,556 | 1,041 | 38,477 | 501 | 55,449 | 2,970 | |||||||||||||||||||||||||||||||
Real estate construction | 488 | 114 | 13,681 | 410 | 30,641 | - | |||||||||||||||||||||||||||||||
Residential mortgages | 4,970 | 102 | 9,538 | 127 | 6,956 | - | |||||||||||||||||||||||||||||||
Home equity | 814 | 15 | 2,607 | 13 | 3,369 | - | |||||||||||||||||||||||||||||||
Consumer | 235 | 22 | 429 | - | 337 | - | |||||||||||||||||||||||||||||||
Total | $ | 30,128 | $ | 2,094 | $ | 87,947 | $ | 1,498 | $ | 121,931 | $ | 4,392 | |||||||||||||||||||||||||
Summary of impaired and non-accrual loans | ' | ||||||||||||||||||||||||||||||||||||
The following table presents a summary of non-performing assets for each period (in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 15,183 | $ | 16,435 | |||||||||||||||||||||||||||||||||
Non-accrual loans held-for-sale | - | 907 | |||||||||||||||||||||||||||||||||||
Loans 90 days past due and still accruing | - | - | |||||||||||||||||||||||||||||||||||
OREO | - | 1,572 | |||||||||||||||||||||||||||||||||||
Total non-performing assets | $ | 15,183 | $ | 18,914 | |||||||||||||||||||||||||||||||||
TDRs accruing interest | $ | 10,647 | $ | 9,954 | |||||||||||||||||||||||||||||||||
TDRs non-accruing | $ | 5,438 | $ | 6,650 | |||||||||||||||||||||||||||||||||
Summarizes non-accrual loans by loan class | ' | ||||||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, non-accrual loans disaggregated by class were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Non- | % of | Total Loans | % of | Non- | % of | Total | % of | ||||||||||||||||||||||||||||||
accrual | Total | Total | accrual | Total | Loans | Total | |||||||||||||||||||||||||||||||
loans | Loans | loans | Loans | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 5,014 | 33 | % | $ | 171,199 | 0.4 | % | $ | 6,529 | 39.8 | % | $ | 168,709 | 0.8 | % | |||||||||||||||||||||
Commercial real estate | 7,492 | 49.3 | 469,357 | 0.7 | 5,192 | 31.6 | 360,010 | 0.7 | |||||||||||||||||||||||||||||
Multifamily | - | - | 184,624 | - | - | - | 9,261 | - | |||||||||||||||||||||||||||||
Real estate construction | - | - | 6,565 | - | 1,961 | 11.9 | 15,469 | 0.3 | |||||||||||||||||||||||||||||
Residential mortgages | 1,897 | 12.5 | 169,552 | 0.2 | 2,466 | 15 | 146,575 | 0.3 | |||||||||||||||||||||||||||||
Home equity | 647 | 4.3 | 57,112 | 0.1 | 266 | 1.6 | 66,468 | - | |||||||||||||||||||||||||||||
Consumer | 133 | 0.9 | 10,439 | - | 21 | 0.1 | 14,288 | - | |||||||||||||||||||||||||||||
Total | $ | 15,183 | 100 | % | $ | 1,068,848 | 1.4 | % | $ | 16,435 | 100 | % | $ | 780,780 | 2.1 | % | |||||||||||||||||||||
Collateral Value Securing Non Accrual Loans | ' | ||||||||||||||||||||||||||||||||||||
The following table presents the collateral value securing non-accrual loans for each period (in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
Principal | Collateral | Principal | Collateral | ||||||||||||||||||||||||||||||||||
Balance | Value | Balance | Value | ||||||||||||||||||||||||||||||||||
Commercial and industrial (1) | $ | 5,014 | $ | 3,750 | $ | 6,529 | $ | 4,400 | |||||||||||||||||||||||||||||
Commercial real estate | 7,492 | 13,050 | 5,192 | 12,675 | |||||||||||||||||||||||||||||||||
Real estate construction | - | - | 1,961 | 3,661 | |||||||||||||||||||||||||||||||||
Residential mortgages | 1,897 | 3,764 | 2,466 | 5,141 | |||||||||||||||||||||||||||||||||
Home equity | 647 | 3,072 | 266 | 849 | |||||||||||||||||||||||||||||||||
Consumer | 133 | - | 21 | - | |||||||||||||||||||||||||||||||||
Total | $ | 15,183 | $ | 23,636 | $ | 16,435 | $ | 26,726 | |||||||||||||||||||||||||||||
(1) Repayment of commercial and industrial loans is expected primarily from the cash flow of the business. The collateral typically securing these loans is a lien on all corporate assets via a blanket UCC filing and does not usually include real estate. For purposes of this disclosure, the Company has ascribed no value to the non-real estate collateral for this class of loans. | |||||||||||||||||||||||||||||||||||||
Summary of the activity in the allowance for loan losses by loan class | ' | ||||||||||||||||||||||||||||||||||||
The following summarizes the activity in the allowance for loan losses disaggregated by class for the periods indicated (in thousands): | |||||||||||||||||||||||||||||||||||||
Commercial | Commercial real estate | Multifamily | Real estate construction | Residential mortgages | Home equity | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
and industrial | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 6,181 | $ | 5,999 | $ | 150 | $ | 141 | $ | 1,576 | $ | 907 | $ | 189 | $ | 2,638 | $ | 17,781 | |||||||||||||||||||
Charge-offs | (2,867 | ) | (383 | ) | - | - | (126 | ) | (558 | ) | (166 | ) | - | (4,100 | ) | ||||||||||||||||||||||
Recoveries | 2,077 | 97 | - | - | 5 | 32 | 121 | - | 2,332 | ||||||||||||||||||||||||||||
(Credit) provision for loan losses | (2,776 | ) | 913 | 2,009 | (53 | ) | 1,008 | 364 | 97 | (312 | ) | 1,250 | |||||||||||||||||||||||||
Balance at end of period | $ | 2,615 | $ | 6,626 | $ | 2,159 | $ | 88 | $ | 2,463 | $ | 745 | $ | 241 | $ | 2,326 | $ | 17,263 | |||||||||||||||||||
Commercial real estate | Multifamily | Real estate construction | Residential mortgages | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||||
and industrial | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 25,047 | $ | 10,470 | $ | 559 | $ | 623 | $ | 2,401 | $ | 512 | $ | 313 | $ | 33 | $ | 39,958 | |||||||||||||||||||
Charge-offs | (8,534 | ) | (15,794 | ) | - | (3,671 | ) | (3,727 | ) | (1,953 | ) | (267 | ) | - | (33,946 | ) | |||||||||||||||||||||
Recoveries | 2,456 | - | - | 340 | 115 | 246 | 112 | - | 3,269 | ||||||||||||||||||||||||||||
(Credit) provision for loan losses | (12,788 | ) | 11,323 | (409 | ) | 2,849 | 2,787 | 2,102 | 31 | 2,605 | 8,500 | ||||||||||||||||||||||||||
Balance at end of period | $ | 6,181 | $ | 5,999 | $ | 150 | $ | 141 | $ | 1,576 | $ | 907 | $ | 189 | $ | 2,638 | $ | 17,781 | |||||||||||||||||||
Commercial | Commercial real estate | Multifamily | Real estate construction | Residential mortgages | Home equity | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||
and industrial | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 13,826 | $ | 9,149 | $ | 77 | $ | 3,177 | $ | 519 | $ | 1,392 | $ | 279 | $ | - | $ | 28,419 | |||||||||||||||||||
Charge-offs | (9,490 | ) | (4,059 | ) | - | (232 | ) | (411 | ) | (191 | ) | (214 | ) | - | (14,597 | ) | |||||||||||||||||||||
Recoveries | 781 | - | - | 415 | 3 | 2 | 97 | - | 1,298 | ||||||||||||||||||||||||||||
Reclass to allowance for off-balance sheet credit risk | - | (50 | ) | - | - | - | - | - | - | (50 | ) | ||||||||||||||||||||||||||
Provision (credit) for loan losses | 19,930 | 5,430 | 482 | (2,737 | ) | 2,290 | (691 | ) | 151 | 33 | 24,888 | ||||||||||||||||||||||||||
Balance at end of period | $ | 25,047 | $ | 10,470 | $ | 559 | $ | 623 | $ | 2,401 | $ | 512 | $ | 313 | $ | 33 | $ | 39,958 | |||||||||||||||||||
Credit risk profile by internally assigned grade | ' | ||||||||||||||||||||||||||||||||||||
The following presents the Company’s loan portfolio credit risk profile by internally assigned grade disaggregated by class of loan at December 31, 2013 and 2012 (in thousands). | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Commercial real estate | Multifamily | Real estate construction | Residential | Home | Consumer | Total | % of | ||||||||||||||||||||||||||||
and industrial | mortgages | equity | Total | ||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||
Pass | $ | 158,536 | $ | 445,302 | $ | 184,624 | $ | 6,565 | $ | 164,559 | $ | 56,379 | $ | 10,156 | $ | 1,026,121 | 96 | % | |||||||||||||||||||
Special mention | 2,934 | 2,817 | - | - | - | - | - | 5,751 | 0.5 | ||||||||||||||||||||||||||||
Substandard | 9,729 | 21,238 | - | - | 4,993 | 733 | 283 | 36,976 | 3.5 | ||||||||||||||||||||||||||||
Total | $ | 171,199 | $ | 469,357 | $ | 184,624 | $ | 6,565 | $ | 169,552 | $ | 57,112 | $ | 10,439 | $ | 1,068,848 | 100 | % | |||||||||||||||||||
31-Dec-12 | Commercial | Commercial real estate | Multifamily | Real estate construction | Residential | Home | Consumer | Total | % of | ||||||||||||||||||||||||||||
and industrial | mortgages | equity | Total | ||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||
Pass | $ | 143,804 | $ | 301,862 | $ | 9,261 | $ | 4,790 | $ | 141,915 | $ | 65,966 | $ | 14,267 | $ | 681,865 | 87.3 | % | |||||||||||||||||||
Special mention | 5,995 | 38,670 | - | - | - | - | - | 44,665 | 5.7 | ||||||||||||||||||||||||||||
Substandard | 18,910 | 19,478 | - | 10,679 | 4,660 | 502 | 21 | 54,250 | 7 | ||||||||||||||||||||||||||||
Total | $ | 168,709 | $ | 360,010 | $ | 9,261 | $ | 15,469 | $ | 146,575 | $ | 66,468 | $ | 14,288 | $ | 780,780 | 100 | % | |||||||||||||||||||
Troubled debt restructurings | ' | ||||||||||||||||||||||||||||||||||||
Outstanding TDRs, disaggregated by class, at December 31, 2013 and 2012 are as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
TDRs Outstanding | Number of | Outstanding | Number of | Outstanding | |||||||||||||||||||||||||||||||||
Loans | Recorded | Loans | Recorded | ||||||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 43 | $ | 6,022 | 41 | $ | 6,468 | |||||||||||||||||||||||||||||||
Commercial real estate | 7 | 6,022 | 9 | 6,238 | |||||||||||||||||||||||||||||||||
Residential mortgages | 17 | 3,891 | 15 | 3,587 | |||||||||||||||||||||||||||||||||
Consumer | 3 | 150 | 5 | 311 | |||||||||||||||||||||||||||||||||
Total | 70 | $ | 16,085 | 70 | $ | 16,604 | |||||||||||||||||||||||||||||||
The following presents, disaggregated by class, information regarding TDRs executed during the years ended December 31, 2013, 2012 and 2011 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013 | For the year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | Number | Outstanding | Outstanding | ||||||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||||||
New TDRs | Loans | Balance | Balance | Loans | Balance | Balance | |||||||||||||||||||||||||||||||
Commercial and industrial | 8 | $ | 2,484 | $ | 2,484 | 17 | $ | 6,674 | $ | 6,674 | |||||||||||||||||||||||||||
Commercial real estate | 3 | 3,025 | 3,025 | - | - | - | |||||||||||||||||||||||||||||||
Residential mortgages | 4 | 924 | 924 | 6 | 1,617 | 1,617 | |||||||||||||||||||||||||||||||
Consumer | 1 | 17 | 17 | 1 | 49 | 49 | |||||||||||||||||||||||||||||||
Total | 16 | $ | 6,450 | $ | 6,450 | 24 | $ | 8,340 | $ | 8,340 | |||||||||||||||||||||||||||
For the year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
of | Recorded | Recorded | |||||||||||||||||||||||||||||||||||
New TDRs | Loans | Balance | Balance | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 29 | $ | 4,099 | $ | 4,123 | ||||||||||||||||||||||||||||||||
Commercial real estate | 8 | 8,697 | 8,697 | ||||||||||||||||||||||||||||||||||
Residential mortgages | 5 | 1,437 | 1,622 | ||||||||||||||||||||||||||||||||||
Home equity | 1 | 291 | 291 | ||||||||||||||||||||||||||||||||||
Consumer | 1 | 34 | 34 | ||||||||||||||||||||||||||||||||||
Total | 44 | $ | 14,558 | $ | 14,767 | ||||||||||||||||||||||||||||||||
Presented below and disaggregated by class is information regarding loans modified as TDRs that had payment defaults of 90 days or more within twelve months of restructuring during the years ended December 31, 2013, 2012 and 2011 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
Number | Recorded | Number | Recorded | Number | Recorded | ||||||||||||||||||||||||||||||||
Defaulted TDRs | of Loans | Balance | of Loans | Balance | of Loans | Balance | |||||||||||||||||||||||||||||||
Commercial and industrial | - | $ | - | 2 | $ | 1,125 | 9 | $ | 41 | ||||||||||||||||||||||||||||
Commercial real estate | 1 | 390 | - | - | 2 | 4,879 | |||||||||||||||||||||||||||||||
Residential mortgages | 1 | 310 | 2 | 807 | - | - | |||||||||||||||||||||||||||||||
Total | 2 | $ | 700 | 4 | $ | 1,932 | 11 | $ | 4,920 | ||||||||||||||||||||||||||||
Summary of loans modified and renewed and not considered TDRs | ' | ||||||||||||||||||||||||||||||||||||
The following presents information regarding modifications and renewals executed during the years ended December 31, 2013, 2012 and 2011 that are not considered TDRs (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||
Number | Recorded | Number | Recorded | Number | Recorded | ||||||||||||||||||||||||||||||||
Non-TDR Modifications | of Loans | Balance | of Loans | Balance | of Loans | Balance | |||||||||||||||||||||||||||||||
Commercial and industrial | 19 | $ | 6,741 | 13 | $ | 8,111 | - | $ | - | ||||||||||||||||||||||||||||
Commercial real estate | 41 | 40,004 | 34 | 40,004 | 5 | 1,599 | |||||||||||||||||||||||||||||||
Multifamily | 1 | 410 | - | - | - | - | |||||||||||||||||||||||||||||||
Total | 61 | $ | 47,155 | 47 | $ | 48,115 | 5 | $ | 1,599 |
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
PREMISES AND EQUIPMENT [Abstract] | ' | |||||||||
PREMISES AND EQUIPMENT | ' | |||||||||
At December 31, 2013 and 2012, premises and equipment consisted of the following (in thousands): | ||||||||||
Estimated Useful Lives | 2013 | 2012 | ||||||||
Land | Indefinite | $ | 3,201 | $ | 3,326 | |||||
Premises | 30 - 40 years | 27,570 | 28,167 | |||||||
Furniture, fixtures & equipment | 3 - 7 years | 28,669 | 28,250 | |||||||
Leasehold improvements | 2 - 25 years | 3,825 | 3,869 | |||||||
63,265 | 63,612 | |||||||||
Accumulated depreciation and amortization | (38,004 | ) | (35,956 | ) | ||||||
Balance at end of year | $ | 25,261 | $ | 27,656 | ||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
DEPOSITS [Abstract] | ' | ||||||||
Schedule of contractual maturities of time deposits | ' | ||||||||
Scheduled maturities of certificates of deposit are as follows (in thousands): | |||||||||
Year During Which | Time Deposits | Other Time | |||||||
Time Deposit Matures | > $100,000 | Deposits | |||||||
2014 | $ | 137,067 | $ | 45,856 | |||||
2015 | 9,804 | 10,671 | |||||||
2016 | 7,613 | 3,530 | |||||||
2017 | 2,802 | 4,350 | |||||||
2018 | 1,051 | 2,335 | |||||||
Total | $ | 158,337 | $ | 66,742 | |||||
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
BORROWINGS [Abstract] | ' | ||||||||||||
Schedule of components of short- and long-term interest-bearing liabilities | ' | ||||||||||||
Borrowings, comprised primarily of FHLB advances, securities sold under agreements to repurchase and federal funds purchased, are presented below for each period (dollars in thousands): | |||||||||||||
Short-Term | Long-Term | ||||||||||||
31-Dec-13 | Borrowings | Borrowings | Total | ||||||||||
Daily average outstanding | $ | 22 | $ | - | $ | 22 | |||||||
Total interest cost | - | - | - | ||||||||||
Average interest rate paid | 0.37 | % | - | % | 0.37 | % | |||||||
Maximum amount outstanding at any month-end | $ | - | $ | - | $ | - | |||||||
December 31 balance | - | - | - | ||||||||||
Weighted-average interest rate on balances outstanding | - | % | - | % | - | % | |||||||
Short-Term | Long-Term | ||||||||||||
31-Dec-12 | Borrowings | Borrowings | Total | ||||||||||
Daily average outstanding | $ | 57 | $ | - | $ | 57 | |||||||
Total interest cost | - | - | - | ||||||||||
Average interest rate paid | 0.48 | % | - | % | 0.48 | % | |||||||
Maximum amount outstanding at any month-end | $ | - | $ | - | $ | - | |||||||
December 31 balance | - | - | - | ||||||||||
Weighted-average interest rate on balances outstanding | - | % | - | % | - | % |
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
STOCKHOLDERS EQUITY [Abstract] | ' | ||||||||||||||||||||
Options granted, exercised, or expired | ' | ||||||||||||||||||||
A summary of stock option activity follows: | |||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||
Shares | Exercise Price Per | ||||||||||||||||||||
Share | |||||||||||||||||||||
Outstanding - January 1, 2011 | 89,500 | $ | 30.32 | ||||||||||||||||||
Granted | 50,000 | 10.79 | |||||||||||||||||||
Exercised | (5,000 | ) | 15.5 | ||||||||||||||||||
Forfeited or expired | (23,000 | ) | 28.67 | ||||||||||||||||||
Outstanding - December 31, 2011 | 111,500 | 22.57 | |||||||||||||||||||
Granted | 130,000 | 13.15 | |||||||||||||||||||
Exercised | - | - | |||||||||||||||||||
Forfeited or expired | (30,000 | ) | 32.23 | ||||||||||||||||||
Outstanding - December 31, 2012 | 211,500 | 15.41 | |||||||||||||||||||
Granted | 111,500 | 17.31 | |||||||||||||||||||
Exercised | (6,667 | ) | 13.44 | ||||||||||||||||||
Forfeited or expired | (25,333 | ) | 15.5 | ||||||||||||||||||
Outstanding - December 31, 2013 | 291,000 | $ | 16.18 | ||||||||||||||||||
Additional information | ' | ||||||||||||||||||||
The following table presents the Black-Scholes parameters for stock options granted during the past three years: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Risk-free interest rate | 1.22 | % | 0.78 | % | 2.1 | % | |||||||||||||||
Expected dividend yield | - | - | - | ||||||||||||||||||
Expected life in years | 10 | 10 | 10 | ||||||||||||||||||
Expected volatility | 42.95 | % | 43.03 | % | 42.6 | % | |||||||||||||||
Weighted average fair value | $ | 9.24 | $ | 7.13 | $ | 5.95 | |||||||||||||||
Summary of options outstanding and exercisable | ' | ||||||||||||||||||||
The following summarizes shares subject to purchase from stock options outstanding and exercisable as of December 31, 2013: | |||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||
Range of | Weighted-Average | Weighted-Average | |||||||||||||||||||
Exercise | Remaining | Weighted-Average | Remaining | Weighted-Average | |||||||||||||||||
Prices | Shares | Contractual Life | Exercise Price | Shares | Contractual Life | Exercise Price | |||||||||||||||
$ | 10.00 - $14.00 | 140,000 | 8.2 years | $ | 12.01 | 30,002 | 8.3 years | $ | 12.68 | ||||||||||||
$ | 14.01 - $20.00 | 121,500 | 9.5 years | $ | 17.12 | 3,334 | 8.7 years | $ | 14.97 | ||||||||||||
$ | 20.01 - $30.00 | 5,000 | 5.1 years | $ | 28.3 | 5,000 | 5.1 years | $ | 28.3 | ||||||||||||
$ | 30.01 - $40.00 | 24,500 | 2.3 years | $ | 32.87 | 24,500 | 2.3 years | $ | 32.87 | ||||||||||||
291,000 | 8.2 years | $ | 16.18 | 62,836 | 5.7 years | $ | 21.92 | ||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
INCOME TAXES [Abstract] | ' | |||||||||||||
Schedule of components of income tax (benefit) provision | ' | |||||||||||||
The following table presents the expense (benefit) for income taxes in the consolidated statements of operations which is comprised of the following (in thousands): | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Current: | Federal | $ | 135 | $ | (4,126 | ) | $ | 751 | ||||||
State | 510 | 280 | 345 | |||||||||||
645 | (3,846 | ) | 1,096 | |||||||||||
Deferred: | Federal | 3,046 | 1,412 | (4,339 | ) | |||||||||
State | 31 | 1,162 | (980 | ) | ||||||||||
3,077 | 2,574 | (5,319 | ) | |||||||||||
Valuation allowance | - | 558 | - | |||||||||||
Total | $ | 3,722 | $ | (714 | ) | $ | (4,223 | ) | ||||||
Schedule of effective income tax rate reconciliation | ' | |||||||||||||
The total tax expense (benefit) was different from the amounts computed by applying the federal income tax rate because of the following: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Federal income tax expense (benefit)at statutory rates | 34 | % | (34 | )% | (35 | )% | ||||||||
Tax-exempt income | (14 | ) | (82 | ) | (56 | ) | ||||||||
State income taxes, net of federal benefit | 2 | 26 | (10 | ) | ||||||||||
Deferred tax asset adjustment | - | 62 | - | |||||||||||
Other | 1 | (1 | ) | 3 | ||||||||||
Total | 23 | % | (29 | )% | (98 | )% | ||||||||
Schedule of deferred tax assets and liabilities | ' | |||||||||||||
The effects of temporary differences between tax and financial accounting that create significant deferred tax assets and liabilities and the recognition of income and expense for purposes of tax and financial reporting are presented below (in thousands): | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Allowance for loan losses | $ | 6,269 | $ | 6,458 | $ | 15,835 | ||||||||
Post-retirement benefits | - | 571 | 551 | |||||||||||
Deferred compensation | 1,588 | 1,642 | 1,941 | |||||||||||
Stock-based compensation | 668 | 458 | 326 | |||||||||||
Unrealized losses on securities available for sale | 2,336 | - | - | |||||||||||
Unfunded pension obligation | 94 | 2,826 | 7,396 | |||||||||||
Alternative Minimum Tax credit | 668 | 537 | - | |||||||||||
Net operating loss carryforward | 2,864 | 5,277 | - | |||||||||||
Other | 961 | 1,300 | 1,677 | |||||||||||
Total deferred tax assets | 15,448 | 19,069 | 27,726 | |||||||||||
Deferred tax liabilities: | ||||||||||||||
Unrealized gains on securities available for sale | - | (6,019 | ) | (7,692 | ) | |||||||||
Other | (961 | ) | (1,107 | ) | (1,569 | ) | ||||||||
Total deferred tax liabilities | (961 | ) | (7,126 | ) | (9,261 | ) | ||||||||
Valuation allowance | (534 | ) | (558 | ) | - | |||||||||
Net deferred tax asset | $ | 13,953 | $ | 11,385 | $ | 18,465 | ||||||||
Schedule of Changes in unrecognized tax benefits | ' | |||||||||||||
Changes in unrecognized tax benefits consist of the following (in thousands): | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Balance January 1 | $ | 34 | $ | 38 | $ | 41 | ||||||||
Additions from current year tax positions | - | 1 | - | |||||||||||
Reductions for prior year tax positions | - | (5 | ) | (3 | ) | |||||||||
Balance December 31 | $ | 34 | $ | 34 | $ | 38 |
EMPLOYEE_BENEFITS_Tables
EMPLOYEE BENEFITS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
EMPLOYEE BENEFITS [Abstract] | ' | ||||||||||||
Schedule of changes in benefit obligation | ' | ||||||||||||
The following table sets forth the plan’s change in benefit obligation (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Benefit obligation at start of year | $ | 45,376 | $ | 53,028 | $ | 42,570 | |||||||
Service cost | - | 2,665 | 2,179 | ||||||||||
Interest cost | 1,993 | 2,218 | 2,250 | ||||||||||
Actuarial (gain) loss | (3,970 | ) | (3,789 | ) | 7,671 | ||||||||
Benefits paid and expected expenses | (1,686 | ) | (1,777 | ) | (1,642 | ) | |||||||
Curtailment | - | (6,969 | ) | - | |||||||||
Benefit obligation at end of year | $ | 41,713 | $ | 45,376 | $ | 53,028 | |||||||
Schedule of changes in fair value of plan assets | ' | ||||||||||||
The following table sets forth the plan’s change in plan assets (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fair value of plan assets at start of year | $ | 37,595 | $ | 34,817 | $ | 32,830 | |||||||
Actual return on plan assets | 5,758 | 3,615 | 13 | ||||||||||
Employer contribution | - | 1,000 | 3,700 | ||||||||||
Benefits paid and actual expenses | (1,897 | ) | (1,837 | ) | (1,726 | ) | |||||||
Fair value of plan assets at end of year | $ | 41,456 | $ | 37,595 | $ | 34,817 | |||||||
Schedule of funded status and amounts recognized in Consolidated Statements Of Condition | ' | ||||||||||||
The following table presents the plan’s funded status and amounts recognized in the consolidated statements of condition (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Prepaid pension cost | $ | 4,696 | $ | 4,632 | |||||||||
Unrecognized net loss | (4,953 | ) | (12,413 | ) | |||||||||
Underfunded status | $ | (257 | ) | $ | (7,781 | ) | |||||||
Amount included in other liabilities | $ | (257 | ) | $ | (7,781 | ) | |||||||
Accumulated benefit obligation | $ | 41,713 | $ | 45,376 | |||||||||
Schedule of estimated benefits payments | ' | ||||||||||||
The following table presents estimated benefits to be paid during the years indicated (in thousands): | |||||||||||||
2014 | $ | 1,969 | |||||||||||
2015 | 2,105 | ||||||||||||
2016 | 2,178 | ||||||||||||
2017 | 2,268 | ||||||||||||
2018 | 2,319 | ||||||||||||
2019-2023 | 12,439 | ||||||||||||
Schedule of net periodic pension cost | ' | ||||||||||||
The following table summarizes the net periodic pension (credit) cost (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Service cost | $ | - | $ | 2,665 | $ | 2,179 | |||||||
Interest cost on projected benefit obligations | 1,993 | 2,218 | 2,250 | ||||||||||
Expected return on plan assets | (2,301 | ) | (2,362 | ) | (2,238 | ) | |||||||
Net amortization and deferral | 244 | 1,628 | 974 | ||||||||||
Curtailment gain | - | (1 | ) | - | |||||||||
Net periodic pension (credit) cost | (64 | ) | 4,148 | 3,165 | |||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||
Net actuarial (gain) loss | (7,460 | ) | (13,578 | ) | 5,348 | ||||||||
Total recognized in other comprehensive income | (7,460 | ) | (13,578 | ) | 5,348 | ||||||||
Total recognized in net periodic pension (credit) cost and other comprehensive income | $ | (7,524 | ) | $ | (9,430 | ) | $ | 8,513 | |||||
Weighted-average discount rate | 4.5 | % | 4.27 | % | 5.38 | % | |||||||
Rate of increase in future compensation | 0 | % | 3.5 | % | 3.5 | % | |||||||
Expected long-term rate of return on assets | 7 | % | 7 | % | 7 | % | |||||||
Schedule of expected net periodic pension cost in next fiscal year | ' | ||||||||||||
The following table summarizes the net periodic pension credit expected for the year ended December 31, 2014. This amount is subject to change if a significant plan-related event should occur before the end of fiscal 2014 (in thousands): | |||||||||||||
Projected | |||||||||||||
2014 | |||||||||||||
Service cost | $ | - | |||||||||||
Interest cost on projected benefit obligations | 2,158 | ||||||||||||
Expected return on plan assets | (2,547 | ) | |||||||||||
Net amortization and deferral | 25 | ||||||||||||
Net periodic pension credit | $ | (364 | ) | ||||||||||
Weighted-average discount rate | 4.5 | % | |||||||||||
Rate of increase in future compensation | 0 | % | |||||||||||
Expected long-term rate of return on assets | 7 | % | |||||||||||
Schedule of pension plan weighted-average asset allocations | ' | ||||||||||||
The Company’s pension plan weighted-average asset allocations at December 31, 2013 and 2012, by asset category are as follows: | |||||||||||||
At December 31, | |||||||||||||
Asset category | 2013 | 2012 | |||||||||||
Cash | 1 | % | 13 | % | |||||||||
Equity securities | 60 | 45 | |||||||||||
Debt securities | 39 | 42 | |||||||||||
Total | 100 | % | 100 | % | |||||||||
Schedule of fair value measurements of pension plan assets on a recurring basis | ' | ||||||||||||
The following table summarizes the fair value measurements of the Company’s pension plan assets on a recurring basis as of December 31, 2013 (in thousands): | |||||||||||||
Fair Value Measurements Using | |||||||||||||
Active Markets for | Significant | ||||||||||||
Identical Assets | Other | ||||||||||||
Quoted Prices | Observable Inputs | ||||||||||||
Description | (Level 1) | (Level 2) | Total | ||||||||||
Short-term investment funds | $ | 290 | $ | - | $ | 290 | |||||||
Common collective trusts: | |||||||||||||
U.S. equity securities | 9,395 | - | 9,395 | ||||||||||
Non - U.S. equity securities | 15,654 | - | 15,654 | ||||||||||
U.S. fixed income securities | - | 13,692 | 13,692 | ||||||||||
Non - U.S. fixed income securities | - | 2,425 | 2,425 | ||||||||||
Total | $ | 25,339 | $ | 16,117 | $ | 41,456 | |||||||
The following table summarizes the fair value measurements of the Company’s pension plan assets on a recurring basis as of December 31, 2012 (in thousands): | |||||||||||||
Fair Value Measurements Using | |||||||||||||
Active Markets for | Significant | ||||||||||||
Identical Assets | Other | ||||||||||||
Quoted Prices | Observable Inputs | ||||||||||||
Description | (Level 1) | (Level 2) | Total | ||||||||||
Investment in securities | |||||||||||||
Short-term investment funds | $ | 39 | $ | 4,813 | $ | 4,852 | |||||||
Equity securities | 17,073 | - | 17,073 | ||||||||||
Fixed income securities | |||||||||||||
Auto loan receivable | - | 204 | 204 | ||||||||||
Collateralized mortgage obligations | - | 4,074 | 4,074 | ||||||||||
Corporate bonds | - | 3,549 | 3,549 | ||||||||||
Government-issued securities | - | 7,834 | 7,834 | ||||||||||
Other asset-backed | - | 9 | 9 | ||||||||||
Total | $ | 17,112 | $ | 20,483 | $ | 37,595 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' | ||||||||
Maturity of outstanding letter of credit | ' | ||||||||
The Company was contingently liable under standby letters of credit in the amount of $18 million and $19 million at December 31, 2013 and 2012, respectively. The outstanding letters of credit as of December 31, 2013 expire as follows (in thousands): | |||||||||
2014 | $ | 17,418 | |||||||
2015 | 377 | ||||||||
2016 | 342 | ||||||||
Total | $ | 18,137 | |||||||
Minimum annual rentals, exclusive of taxes and other charges under non-cancelable operating leases | ' | ||||||||
At December 31, 2013, the Company was obligated under a number of non-cancelable leases for land and buildings used for bank purposes. Minimum annual rentals, exclusive of taxes and other charges under non-cancelable operating leases, are as follows (in thousands): | |||||||||
Capital | Operating | ||||||||
Leases | Leases | ||||||||
2014 | $ | 311 | $ | 1,420 | |||||
2015 | 317 | 1,365 | |||||||
2016 | 329 | 1,011 | |||||||
2017 | 341 | 856 | |||||||
2018 | 348 | 503 | |||||||
Thereafter | 5,060 | 1,594 | |||||||
Total minimum lease payments | 6,706 | $ | 6,749 | ||||||
Less: amounts representing interest | 2,094 | ||||||||
Present value of minimum lease payments | $ | 4,612 | |||||||
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | ' | ||||||||||||||||||||||||
The Bank's actual capital amounts and ratios | ' | ||||||||||||||||||||||||
The Bank’s capital amounts (in thousands) and ratios are as follows: | |||||||||||||||||||||||||
Minimum | Minimum to be Well | ||||||||||||||||||||||||
for capital | Capitalized under prompt | ||||||||||||||||||||||||
Actual capital ratios | adequacy | corrective action provisions | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | $ | 181,952 | 14.92 | % | $ | 97,542 | 8 | % | $ | 121,927 | 10 | % | |||||||||||||
Tier 1 capital to risk-weighted assets | 166,683 | 13.67 | % | 48,771 | 4 | % | 73,156 | 6 | % | ||||||||||||||||
Tier 1 capital to adjusted average assets (leverage) | 166,683 | 9.74 | % | 68,454 | 4 | % | 85,567 | 5 | % | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | $ | 162,458 | 18.05 | % | $ | 72,020 | 8 | % | $ | 90,025 | 10 | % | |||||||||||||
Tier 1 capital to risk-weighted assets | 151,121 | 16.79 | % | 36,010 | 4 | % | 54,015 | 6 | % | ||||||||||||||||
Tier 1 capital to adjusted average assets (leverage) | 151,121 | 9.74 | % | 62,092 | 4 | % | 77,615 | 5 | % | ||||||||||||||||
CONCENTRATIONS_Tables
CONCENTRATIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
CONCENTRATIONS [Abstract] | ' | ||||||||||||
Schedules of loan portfolio disaggregated by class of loan and investment portfolio disaggregated by category of security | ' | ||||||||||||
The following table presents the Company’s loan portfolio disaggregated by class of loan at December 31, 2013 and each class’s percentage of total loans and total assets (dollars in thousands): | |||||||||||||
At December 31, | 2013 | % of total | % of total | ||||||||||
loans | assets | ||||||||||||
Commercial and industrial | $ | 171,199 | 16 | % | 10.1 | % | |||||||
Commercial real estate | 469,357 | 43.9 | 27.6 | ||||||||||
Multifamily | 184,624 | 17.3 | 10.9 | ||||||||||
Real estate construction | 6,565 | 0.6 | 0.4 | ||||||||||
Residential mortgages | 169,552 | 15.9 | 10 | ||||||||||
Home equity | 57,112 | 5.3 | 3.4 | ||||||||||
Consumer | 10,439 | 1 | 0.6 | ||||||||||
Total loans | $ | 1,068,848 | 100 | % | 63 | % | |||||||
The following presents the Company’s investment portfolio disaggregated by category of security at December 31, 2013 and each category’s percentage of total investment securities and total assets (dollars in thousands): | |||||||||||||
At December 31, | 2013 | % of total | % of total | ||||||||||
investment | assets | ||||||||||||
securities | |||||||||||||
U.S. Government agency securities | $ | 100,095 | 24.3 | % | 5.9 | % | |||||||
Corporate bonds | 15,651 | 3.8 | 0.9 | ||||||||||
Collateralized mortgage obligations | 30,104 | 7.3 | 1.8 | ||||||||||
Mortgage-backed securities | 97,767 | 23.7 | 5.8 | ||||||||||
Obligations of states and political subdivisions | 168,829 | 40.9 | 9.9 | ||||||||||
Total investment securities | $ | 412,446 | 100 | % | 24.3 | % | |||||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
FAIR VALUE [Abstract] | ' | |||||||||||||||||||
Carrying amounts and fair values of financial instruments | ' | |||||||||||||||||||
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments (in thousands). | ||||||||||||||||||||
Level in | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||
Fair Value | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||
Heirarchy | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||
Cash and due from banks | Level 1 | $ | 131,352 | $ | 131,352 | $ | 384,656 | $ | 384,656 | |||||||||||
Cash equivalents | Level 2 | 1,000 | 1,000 | 1,150 | 1,150 | |||||||||||||||
Interest-bearing time deposits in other banks | Level 2 | 10,000 | 10,000 | - | - | |||||||||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock | N/A | 2,863 | N/A | 3,043 | N/A | |||||||||||||||
Investment securities held to maturity | Level 2 | 11,666 | 12,234 | 8,035 | 8,861 | |||||||||||||||
Investment securities available for sale | Level 2 | 400,780 | 400,780 | 402,353 | 402,353 | |||||||||||||||
Loans held-for-sale | Level 2 | 175 | 175 | 907 | 907 | |||||||||||||||
Loans, net of allowance | Level 2, 3 (1) | 1,051,585 | 1,056,279 | 762,999 | 787,597 | |||||||||||||||
Bank owned life insurance | Level 3 | 38,755 | 38,755 | - | - | |||||||||||||||
Accrued interest and loan fees receivable | Level 2 | 5,441 | 5,441 | 4,883 | 4,883 | |||||||||||||||
Non-maturity deposits | Level 2 | 1,284,982 | 1,284,982 | 1,187,383 | 1,187,383 | |||||||||||||||
Time deposits | Level 2 | 225,079 | 225,946 | 243,731 | 245,595 | |||||||||||||||
Accrued interest payable | Level 2 | 160 | 160 | 237 | 237 | |||||||||||||||
-1 | Impaired loans are generally classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||
Assets measured at fair value on a non-recurring basis | ' | |||||||||||||||||||
Assets measured at fair value on a non-recurring basis are as follows (in thousands): | ||||||||||||||||||||
Assets: | 31-Dec-13 | Fair Value | ||||||||||||||||||
Measurements Using | ||||||||||||||||||||
Significant Unobservable | ||||||||||||||||||||
Inputs (Level 3) | ||||||||||||||||||||
Impaired loans | $ | 16,942 | $ | 16,942 | ||||||||||||||||
Total | $ | 16,942 | $ | 16,942 | ||||||||||||||||
Assets: | 31-Dec-12 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||
Impaired loans | $ | 9,390 | $ | 9,390 | ||||||||||||||||
OREO | 1,572 | 1,572 | ||||||||||||||||||
Total | $ | 10,962 | $ | 10,962 | ||||||||||||||||
Valuation of financial instruments measured at fair value on recurring basis | ' | |||||||||||||||||||
The following presents fair value measurements on a recurring basis as of December 31, 2013 and 2012 (in thousands): | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Significant Other | Significant | |||||||||||||||||||
Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Assets: | 31-Dec-13 | (Level 2) | (Level 3) | |||||||||||||||||
U.S. Government agency securities | $ | 100,095 | $ | 100,095 | $ | - | ||||||||||||||
Corporate bonds | 15,651 | 15,651 | - | |||||||||||||||||
Collateralized mortgage obligations | 30,104 | 30,104 | - | |||||||||||||||||
Mortgage-backed securities | 97,767 | 97,767 | - | |||||||||||||||||
Obligations of states and political subdivisions | 157,163 | 157,163 | - | |||||||||||||||||
Loans held-for-sale | 175 | 175 | - | |||||||||||||||||
Mortgage servicing rights | 2,163 | - | 2,163 | |||||||||||||||||
Total | $ | 403,118 | $ | 400,955 | $ | 2,163 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives | 932 | $ | - | $ | 932 | |||||||||||||||
Total | $ | 932 | $ | - | $ | 932 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Significant Other | Significant | |||||||||||||||||||
Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Assets: | 31-Dec-12 | (Level 2) | (Level 3) | |||||||||||||||||
U.S. Treasury securities | $ | 500 | $ | 500 | $ | - | ||||||||||||||
U.S. Government agency securities | 65,078 | 65,078 | - | |||||||||||||||||
Corporate bonds | 16,198 | 16,198 | - | |||||||||||||||||
Collateralized mortgage obligations | 89,692 | 89,692 | - | |||||||||||||||||
Mortgage-backed securities | 62,450 | 62,450 | - | |||||||||||||||||
Obligations of states and political subdivisions | 168,435 | 168,435 | - | |||||||||||||||||
Loans held-for-sale | 907 | 907 | - | |||||||||||||||||
Mortgage servicing rights | 1,856 | - | 1,856 | |||||||||||||||||
Total | $ | 405,116 | $ | 403,260 | $ | 1,856 | ||||||||||||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||
Reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013, 2012 and 2011 follow (in thousands). | ||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
Collateralized | Mortgage | Derivatives | ||||||||||||||||||
Mortgage | Servicing Rights | |||||||||||||||||||
Obligations | ||||||||||||||||||||
Balance at January 1, 2011 | $ | - | $ | 1,596 | $ | - | ||||||||||||||
Transfers from level 2 | 7,994 | - | - | |||||||||||||||||
Net increases | - | 27 | - | |||||||||||||||||
Balance at December 31, 2011 | 7,994 | 1,623 | - | |||||||||||||||||
Sales | (7,994 | ) | - | - | ||||||||||||||||
Net increases | - | 233 | - | |||||||||||||||||
Balance at December 31, 2012 | - | 1,856 | - | |||||||||||||||||
Net increases | - | 307 | 932 | |||||||||||||||||
Balance at December 31, 2013 | $ | - | $ | 2,163 | $ | 932 |
SUFFOLK_BANCORP_PARENT_COMPANY1
SUFFOLK BANCORP (PARENT COMPANY ONLY) CONDENSED FINANCIAL STATEMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SUFFOLK BANCORP (PARENT COMPANY ONLY) CONDENSED FINANCIAL STATEMENTS [Abstract] | ' | ||||||||||||
Condensed Financial Statements | ' | ||||||||||||
Condensed Statements of Condition at December 31, | 2013 | 2012 | 2011 | ||||||||||
Assets: | |||||||||||||
Due from banks | $ | 605 | $ | 515 | $ | 405 | |||||||
Investment in the Bank | 165,924 | 163,007 | 135,941 | ||||||||||
Other assets | 669 | 463 | 333 | ||||||||||
Total Assets | $ | 167,198 | $ | 163,985 | $ | 136,679 | |||||||
Liabilities and Stockholders' Equity: | |||||||||||||
Other liabilities | $ | - | $ | - | $ | 119 | |||||||
Stockholders' Equity | 167,198 | 163,985 | 136,560 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 167,198 | $ | 163,985 | $ | 136,679 | |||||||
Condensed Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Expense: | |||||||||||||
Other expense | $ | 372 | $ | 358 | $ | 362 | |||||||
Loss before equity in undistributed net income (loss) of the Bank | (372 | ) | (358 | ) | (362 | ) | |||||||
Equity in undistributed earnings (loss) of the Bank | 13,090 | (1,390 | ) | 284 | |||||||||
Net income (loss) | $ | 12,718 | $ | (1,748 | ) | $ | (78 | ) | |||||
Total Comprehensive Income (Loss) | $ | 2,543 | $ | 4,208 | $ | (919 | ) | ||||||
Condensed Statements of Cash Flows for the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Cash Flows From Operating Activities: | |||||||||||||
Net income (loss) | $ | 12,718 | $ | (1,748 | ) | $ | (78 | ) | |||||
Less: equity in undistributed (earnings) loss of the Bank | (13,090 | ) | 1,390 | (284 | ) | ||||||||
Other - net | 371 | 209 | 1,504 | ||||||||||
Net cash (used in) provided by operating activities | (1 | ) | (149 | ) | 1,142 | ||||||||
Cash Flows From Investing Activities: | |||||||||||||
Advances to the Bank | - | (22,500 | ) | (2,000 | ) | ||||||||
Net cash used in investing activities | - | (22,500 | ) | (2,000 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||
Dividend reinvestment and stock option exercises | 91 | - | 659 | ||||||||||
Proceeds from issuance of capital stock | - | 22,759 | - | ||||||||||
Dividends paid | - | - | (1,454 | ) | |||||||||
Net cash provided by (used in) financing activities | 91 | 22,759 | (795 | ) | |||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 90 | 110 | (1,653 | ) | |||||||||
Cash and Cash Equivalents, Beginning of Year | 515 | 405 | 2,058 | ||||||||||
Cash and Cash Equivalents, End of Year | $ | 605 | $ | 515 | $ | 405 | |||||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | ' | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data | ' | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
4th | 3rd | 2nd | 1st | 4th | 3rd | 2nd | 1st | ||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
Interest income | $ | 15,969 | $ | 14,705 | $ | 14,560 | $ | 14,444 | $ | 14,317 | $ | 15,041 | $ | 15,845 | $ | 15,244 | |||||||||||||||||
Interest expense | 682 | 733 | 747 | 768 | 829 | 887 | 967 | 1,036 | |||||||||||||||||||||||||
Net interest income | 15,287 | 13,972 | 13,813 | 13,676 | 13,488 | 14,154 | 14,878 | 14,208 | |||||||||||||||||||||||||
Provision (credit) for loan losses (1) | 1,250 | - | - | - | (1,100 | ) | 12,000 | (2,400 | ) | - | |||||||||||||||||||||||
Net interest income after provision (credit) for loan losses | 14,037 | 13,972 | 13,813 | 13,676 | 14,588 | 2,154 | 17,278 | 14,208 | |||||||||||||||||||||||||
Non-interest income (2) | 7,139 | 6,587 | 2,464 | 3,317 | 4,344 | 1,881 | 2,401 | 2,255 | |||||||||||||||||||||||||
Operating expenses (3) | 16,982 | 15,090 | 12,692 | 13,801 | 15,656 | 17,171 | 14,139 | 14,605 | |||||||||||||||||||||||||
Income tax expense (benefit) | 866 | 1,557 | 816 | 483 | 1,231 | (3,975 | ) | 1,340 | 690 | ||||||||||||||||||||||||
Net income (loss) | $ | 3,328 | $ | 3,912 | $ | 2,769 | $ | 2,709 | $ | 2,045 | $ | (9,161 | ) | $ | 4,200 | $ | 1,168 | ||||||||||||||||
Net income (loss) per common share - basic | $ | 0.29 | $ | 0.34 | $ | 0.24 | $ | 0.23 | $ | 0.18 | $ | (0.94 | ) | $ | 0.43 | $ | 0.12 | ||||||||||||||||
Net income (loss) per common share - diluted | $ | 0.29 | $ | 0.34 | $ | 0.24 | $ | 0.23 | $ | 0.18 | $ | (0.94 | ) | $ | 0.43 | $ | 0.12 | ||||||||||||||||
Cash dividends per common share | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
-1 | 4th quarter 2013 amount reflects the impact of a charge-off of $1.5 million related to the sale of $8 million in non-performing and classified loans. | ||||||||||||||||||||||||||||||||
-2 | 4th quarter 2013 and 3rd quarter 2013 amounts include gains on Visa shares sold of $3.9 million and $3.8 million, respectively. | ||||||||||||||||||||||||||||||||
-3 | 4th quarter 2013 and 3rd quarter 2013 amounts include branch consolidation costs of $1.6 million and $460 thousand, respectively. Also included are reserve and carrying costs related to Visa shares sold totaling $515 thousand and $474 thousand for the 4th and 3rd quarter 2013, respectively. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Corporation | ||
Organization and Nature of Operations [Abstract] | ' | ' |
Ownership percentage (in hundredths) | 100.00% | ' |
Number of corporation used to acquire foreclosed real estate | 2 | ' |
Loans and Loan Interest Income Recognition [Abstract] | ' | ' |
Maximum period for accrued interest for all class of loans | '90 days | ' |
Allowance for Loan Losses [Abstract] | ' | ' |
Threshold for non-accrual loans to be evaluated individually for impairment | $250,000 | ' |
Transfers of Financial Instruments [Abstract] | ' | ' |
Servicing loan portfolio | 161,000,000 | 138,000,000 |
Mortgage servicing rights | 2,000,000 | 2,000,000 |
Other Real Estate [Abstract] | ' | ' |
Other Real Estate Owned ("OREO") | 0 | 1,572,000 |
PREMISES AND EQUIPMENT [Abstract] | ' | ' |
Impairment of long lived assets | 0 | 0 |
Goodwill [Abstract] | ' | ' |
Impairment of goodwill | 0 | 0 |
Allowance for Contingent Liabilities [Abstract] | ' | ' |
Allowance for contingent liabilities | $255,000 | $255,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | $2,886 | ' | ' | ' | ($3,070) | $2,886 | ($3,070) | ' |
Other comprehensive loss (income) before reclassifications | ' | ' | ' | ' | ' | ' | ' | ' | -9,918 | 5,818 | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | -257 | 138 | ' |
Net other comprehensive loss (income) | ' | ' | ' | ' | ' | ' | ' | ' | -10,175 | 5,956 | ' |
Ending balance | -7,289 | ' | ' | ' | 2,886 | ' | ' | ' | -7,289 | 2,886 | -3,070 |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain (loss) on sale of securities available for sale | ' | ' | ' | ' | ' | ' | ' | ' | 403 | -217 | 1,648 |
Income tax expense (benefit) | -866 | -1,557 | -816 | -483 | -1,231 | 3,975 | -1,340 | -690 | -3,722 | 714 | 4,223 |
Net income (loss) | 3,328 | 3,912 | 2,769 | 2,709 | 2,045 | -9,161 | 4,200 | 1,168 | 12,718 | -1,748 | -78 |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain (loss) on sale of securities available for sale | ' | ' | ' | ' | ' | ' | ' | ' | 403 | ' | ' |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -146 | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 257 | ' | ' |
Unrealized gains and Losses on available-for-sale securities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 10,553 | ' | ' | ' | 11,873 | 10,553 | 11,873 | ' |
Other comprehensive loss (income) before reclassifications | ' | ' | ' | ' | ' | ' | ' | ' | -14,391 | -1,458 | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | -257 | 138 | ' |
Net other comprehensive loss (income) | ' | ' | ' | ' | ' | ' | ' | ' | -14,648 | -1,320 | ' |
Ending balance | -4,095 | ' | ' | ' | 10,553 | ' | ' | ' | -4,095 | 10,553 | ' |
Pension and postretirement plan items [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | -7,667 | ' | ' | ' | -14,943 | -7,667 | -14,943 | ' |
Other comprehensive loss (income) before reclassifications | ' | ' | ' | ' | ' | ' | ' | ' | 4,473 | 7,276 | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Net other comprehensive loss (income) | ' | ' | ' | ' | ' | ' | ' | ' | 4,473 | 7,276 | ' |
Ending balance | ($3,194) | ' | ' | ' | ($7,667) | ' | ' | ' | ($3,194) | ($7,667) | ' |
INVESTMENT_SECURITIES_Amortize
INVESTMENT SECURITIES, Amortized Cost, Estimated Values and Gross Unrealized Gains and Losses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale [Abstract] | ' | ' |
Amortized Cost | $407,211 | $385,781 |
Gross Unrealized Gains | 9,339 | 16,795 |
Gross Unrealized Losses | -15,770 | -223 |
Estimated Fair Value | 400,780 | 402,353 |
Held-to-maturity [Abstract] | ' | ' |
Estimated Fair Value | 12,234 | 8,861 |
Total investment securities [Abstract] | ' | ' |
Total Amortized Cost | 418,877 | 393,816 |
Total Gross Unrealized Gains | 9,994 | 17,621 |
Total Gross Unrealized Losses | -15,857 | -223 |
Total Fair Value | 413,014 | 411,214 |
Obligations of states and political subdivisions [Member] | ' | ' |
Held-to-maturity [Abstract] | ' | ' |
Amortized Cost | 11,666 | 8,035 |
Gross Unrealized Gains | 655 | 826 |
Gross Unrealized Losses | -87 | 0 |
Estimated Fair Value | 12,234 | 8,861 |
U.S. Treasury Securities [Member] | ' | ' |
Available-for-sale [Abstract] | ' | ' |
Amortized Cost | 0 | 500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 500 |
U.S. government agency securities [Member] | ' | ' |
Available-for-sale [Abstract] | ' | ' |
Amortized Cost | 109,315 | 65,085 |
Gross Unrealized Gains | 0 | 70 |
Gross Unrealized Losses | -9,220 | -77 |
Estimated Fair Value | 100,095 | 65,078 |
Obligations of states and political subdivisions [Member] | ' | ' |
Available-for-sale [Abstract] | ' | ' |
Amortized Cost | 148,664 | 155,121 |
Gross Unrealized Gains | 8,499 | 13,314 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 157,163 | 168,435 |
Collateralized mortgage obligations [Member] | ' | ' |
Available-for-sale [Abstract] | ' | ' |
Amortized Cost | 30,335 | 87,624 |
Gross Unrealized Gains | 557 | 2,148 |
Gross Unrealized Losses | -788 | -80 |
Estimated Fair Value | 30,104 | 89,692 |
Mortgage-backed securities [Member] | ' | ' |
Available-for-sale [Abstract] | ' | ' |
Amortized Cost | 103,332 | 61,750 |
Gross Unrealized Gains | 19 | 766 |
Gross Unrealized Losses | -5,584 | -66 |
Estimated Fair Value | 97,767 | 62,450 |
Corporate Bonds [Member] | ' | ' |
Available-for-sale [Abstract] | ' | ' |
Amortized Cost | 15,565 | 15,701 |
Gross Unrealized Gains | 264 | 497 |
Gross Unrealized Losses | -178 | 0 |
Estimated Fair Value | $15,651 | $16,198 |
INVESTMENT_SECURITIES_Amortize1
INVESTMENT SECURITIES, Amortized Cost, Maturities and Approximate Fair Value (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Amortized Cost [Abstract] | ' | ' | ' |
Due in one year or less | $12,171,000 | ' | ' |
Due from one to five years | 131,422,000 | ' | ' |
Due from five to ten years | 240,768,000 | ' | ' |
Due after ten years | 22,850,000 | ' | ' |
Total securities available for sale | 407,211,000 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Due in one year or less | 12,328,000 | ' | ' |
Due from one to five years | 137,011,000 | ' | ' |
Due from five to ten years | 231,083,000 | ' | ' |
Due after ten years | 20,358,000 | ' | ' |
Total securities available for sale | 400,780,000 | 402,353,000 | ' |
Federal Reserve Bank Stock | 1,400,000 | 1,400,000 | ' |
Federal Home Loan Bank Stock | 1,500,000 | 1,600,000 | ' |
Dividend paid on FRB stock (in hundredths) | 6.00% | ' | ' |
Dividend paid on FHLB stock (in hundredths) | 4.00% | ' | ' |
Investment securities pledged | 292,000,000 | 286,000,000 | ' |
Sale of Visa Class B equity securities (in shares) | 100,000 | ' | ' |
Proceeds from sale of Visa Shares | 7,766,000 | 0 | 0 |
Contingent liability from counterparty estimated future exposure from Visa litigation | 932,000 | ' | ' |
Approximate cash payment per quarter for Visa litigation | 57,000 | ' | ' |
US Government agency securities held as available-for-sale pledged as collateral | 2,600,000 | ' | ' |
Shares of Visa Class B securities held | 38,638 | ' | ' |
Amortized Cost [Abstract] | ' | ' | ' |
Due in one year or less | 824,000 | ' | ' |
Due from one to five years | 6,618,000 | ' | ' |
Due from five to ten years | 205,000 | ' | ' |
Due after ten years | 4,019,000 | ' | ' |
Total securities held to maturity | 11,666,000 | ' | ' |
Total investment securities | 418,877,000 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Due in one year or less | 833,000 | ' | ' |
Due from one to five years | 7,251,000 | ' | ' |
Due from five to ten years | 218,000 | ' | ' |
Due after ten years | 3,932,000 | ' | ' |
Total securities held to maturity | 12,234,000 | ' | ' |
Total investment securities | $413,014,000 | ' | ' |
INVESTMENT_SECURITIES_Securiti
INVESTMENT SECURITIES, Securities Sales And Continuous Unrealized Loss Position Of Securities Held (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Proceeds from sales of securities available for sale and the associated realized securities gains and losses [Abstract] | ' | ' | ' |
Proceeds | $13,427 | $7,457 | $44,142 |
Gross realized gains | 403 | 0 | 1,701 |
Gross realized losses | 0 | 217 | 53 |
Net gains | 403 | -217 | 1,648 |
Length of time individual securities for held-to-maturity and available-for-sale held in a continuous unrealized loss position [Abstract] | ' | ' | ' |
Less than 12 months Fair Value | 187,007 | 50,934 | ' |
Less than 12 months Unrealized Losses | 13,001 | 223 | ' |
12 months or longer Fair Value | 31,855 | 0 | ' |
12 months or longer Unrealized Losses | 2,856 | 0 | ' |
Total Fair Value | 218,862 | 50,934 | ' |
Total Unrealized Losses | 15,857 | 223 | ' |
U.S. government agency securities [Member] | ' | ' | ' |
Length of time individual securities for held-to-maturity and available-for-sale held in a continuous unrealized loss position [Abstract] | ' | ' | ' |
Less than 12 months Fair Value | 86,590 | 28,958 | ' |
Less than 12 months Unrealized Losses | 7,726 | 77 | ' |
12 months or longer Fair Value | 13,505 | 0 | ' |
12 months or longer Unrealized Losses | 1,494 | 0 | ' |
Total Fair Value | 100,095 | 28,958 | ' |
Total Unrealized Losses | 9,220 | 77 | ' |
Obligations of states and political subdivisions [Member] | ' | ' | ' |
Length of time individual securities for held-to-maturity and available-for-sale held in a continuous unrealized loss position [Abstract] | ' | ' | ' |
Less than 12 months Fair Value | 3,932 | ' | ' |
Less than 12 months Unrealized Losses | 87 | ' | ' |
12 months or longer Fair Value | 0 | ' | ' |
12 months or longer Unrealized Losses | 0 | ' | ' |
Total Fair Value | 3,932 | ' | ' |
Total Unrealized Losses | 87 | ' | ' |
Collateralized mortgage obligations [Member] | ' | ' | ' |
Length of time individual securities for held-to-maturity and available-for-sale held in a continuous unrealized loss position [Abstract] | ' | ' | ' |
Less than 12 months Fair Value | 2,935 | 7,878 | ' |
Less than 12 months Unrealized Losses | 160 | 80 | ' |
12 months or longer Fair Value | 5,713 | 0 | ' |
12 months or longer Unrealized Losses | 628 | 0 | ' |
Total Fair Value | 8,648 | 7,878 | ' |
Total Unrealized Losses | 788 | 80 | ' |
Mortgage-backed securities [Member] | ' | ' | ' |
Length of time individual securities for held-to-maturity and available-for-sale held in a continuous unrealized loss position [Abstract] | ' | ' | ' |
Less than 12 months Fair Value | 84,869 | 14,098 | ' |
Less than 12 months Unrealized Losses | 4,850 | 66 | ' |
12 months or longer Fair Value | 12,637 | 0 | ' |
12 months or longer Unrealized Losses | 734 | 0 | ' |
Total Fair Value | 97,506 | 14,098 | ' |
Total Unrealized Losses | 5,584 | 66 | ' |
Corporate bonds [Member] | ' | ' | ' |
Length of time individual securities for held-to-maturity and available-for-sale held in a continuous unrealized loss position [Abstract] | ' | ' | ' |
Less than 12 months Fair Value | 8,681 | ' | ' |
Less than 12 months Unrealized Losses | 178 | ' | ' |
12 months or longer Fair Value | 0 | ' | ' |
12 months or longer Unrealized Losses | 0 | ' | ' |
Total Fair Value | 8,681 | ' | ' |
Total Unrealized Losses | $178 | ' | ' |
LOANS_Details
LOANS (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Categorizes total loans | ' | ' | ' | ' |
Gross Loans | $1,068,848,000 | $780,780,000 | ' | ' |
Allowance for loan losses | -17,263,000 | -17,781,000 | -39,958,000 | -28,419,000 |
Net loans | 1,051,585,000 | 762,999,000 | ' | ' |
Loans made to directors and executives | 20,000,000 | 21,000,000 | ' | ' |
New loans granted to directors or executive | 52,000,000 | 44,000,000 | ' | ' |
Payment received from directors and executives | 53,000,000 | 44,000,000 | ' | ' |
Commercial and Industrial [Member] | ' | ' | ' | ' |
Categorizes total loans | ' | ' | ' | ' |
Gross Loans | 171,199,000 | 168,709,000 | ' | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Categorizes total loans | ' | ' | ' | ' |
Gross Loans | 469,357,000 | 360,010,000 | ' | ' |
Allowance for loan losses | -6,626,000 | -5,999,000 | -10,470,000 | -9,149,000 |
Multifamily [Member] | ' | ' | ' | ' |
Categorizes total loans | ' | ' | ' | ' |
Gross Loans | 184,624,000 | 9,261,000 | ' | ' |
Allowance for loan losses | -2,159,000 | -150,000 | -559,000 | -77,000 |
Real Estate Construction [Member] | ' | ' | ' | ' |
Categorizes total loans | ' | ' | ' | ' |
Gross Loans | 6,565,000 | 15,469,000 | ' | ' |
Allowance for loan losses | -88,000 | -141,000 | -623,000 | -3,177,000 |
Residential Mortgages [Member] | ' | ' | ' | ' |
Categorizes total loans | ' | ' | ' | ' |
Gross Loans | 169,552,000 | 146,575,000 | ' | ' |
Allowance for loan losses | -2,463,000 | -1,576,000 | -2,401,000 | -519,000 |
Home Equity [Member] | ' | ' | ' | ' |
Categorizes total loans | ' | ' | ' | ' |
Gross Loans | 57,112,000 | 66,468,000 | ' | ' |
Consumer [Member] | ' | ' | ' | ' |
Categorizes total loans | ' | ' | ' | ' |
Gross Loans | 10,439,000 | 14,288,000 | ' | ' |
Allowance for loan losses | ($241,000) | ($189,000) | ($313,000) | ($279,000) |
LOANS_Analysis_of_Changes_in_t
LOANS, Analysis of Changes in the Allowances for Loan Losses (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | ' |
Number of months of performance trouble debt restructuring returns to accrual status | '6 months |
Threshold for non-accrual loans to be evaluated individually for impairment | $250 |
Allowance for loan and lease losses, period increase (decrease) | -518 |
Commercial and Industrial [Member] | ' |
Financing Receivable, Impaired [Line Items] | ' |
Allowance for loan and lease losses, period increase (decrease) | -3,600 |
Commercial Real Estate [Member] | ' |
Financing Receivable, Impaired [Line Items] | ' |
Allowance for loan and lease losses, period increase (decrease) | 627 |
Multifamily [Member] | ' |
Financing Receivable, Impaired [Line Items] | ' |
Allowance for loan and lease losses, period increase (decrease) | $2,000 |
LOANS_Loans_and_Allowance_for_
LOANS, Loans and Allowance for Loan Losses Impairment Evaluations (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
LOANS [Abstract] | ' | ' | ' | ' |
Commercial real estate mortgage loans to warrant information from management, minimum | $250 | ' | ' | ' |
Loans to value ratio for originating residential mortgage and home equity loans, maximum (in hundredths) | 80.00% | ' | ' | ' |
Allowance for loan losses: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 945 | 1,024 | ' | ' |
Ending balance: collectively evaluated for impairment | 16,318 | 16,757 | ' | ' |
Balance, End of Period | 17,263 | 17,781 | 39,958 | 28,419 |
Loan balances: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 25,990 | 26,956 | ' | ' |
Ending balance: collectively evaluated for impairment | 1,042,858 | 753,824 | ' | ' |
Total loans | 1,068,848 | 780,780 | ' | ' |
Commercial and Industrial [Member] | ' | ' | ' | ' |
Allowance for loan losses: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 41 | 340 | ' | ' |
Ending balance: collectively evaluated for impairment | 2,574 | 5,841 | ' | ' |
Balance, End of Period | 2,615 | 6,181 | 25,047 | 13,826 |
Loan balances: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 7,754 | 10,369 | ' | ' |
Ending balance: collectively evaluated for impairment | 163,445 | 158,340 | ' | ' |
Total loans | 171,199 | 168,709 | ' | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Allowance for loan losses: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 0 | 22 | ' | ' |
Ending balance: collectively evaluated for impairment | 6,626 | 5,977 | ' | ' |
Balance, End of Period | 6,626 | 5,999 | 10,470 | 9,149 |
Loan balances: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 11,821 | 9,443 | ' | ' |
Ending balance: collectively evaluated for impairment | 457,536 | 350,567 | ' | ' |
Total loans | 469,357 | 360,010 | ' | ' |
Multifamily [Member] | ' | ' | ' | ' |
Allowance for loan losses: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | ' | ' |
Ending balance: collectively evaluated for impairment | 2,159 | 150 | ' | ' |
Balance, End of Period | 2,159 | 150 | 559 | 77 |
Loan balances: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | ' | ' |
Ending balance: collectively evaluated for impairment | 184,624 | 9,261 | ' | ' |
Total loans | 184,624 | 9,261 | ' | ' |
Real Estate Construction [Member] | ' | ' | ' | ' |
Allowance for loan losses: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 0 | 1 | ' | ' |
Ending balance: collectively evaluated for impairment | 88 | 140 | ' | ' |
Balance, End of Period | 88 | 141 | 623 | 3,177 |
Loan balances: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 0 | 1,961 | ' | ' |
Ending balance: collectively evaluated for impairment | 6,565 | 13,508 | ' | ' |
Total loans | 6,565 | 15,469 | ' | ' |
Residential Mortgages [Member] | ' | ' | ' | ' |
Allowance for loan losses: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 709 | 575 | ' | ' |
Ending balance: collectively evaluated for impairment | 1,754 | 1,001 | ' | ' |
Balance, End of Period | 2,463 | 1,576 | 2,401 | 519 |
Loan balances: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 5,049 | 4,660 | ' | ' |
Ending balance: collectively evaluated for impairment | 164,503 | 141,915 | ' | ' |
Total loans | 169,552 | 146,575 | ' | ' |
Home Equity [Member] | ' | ' | ' | ' |
Allowance for loan losses: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 93 | 86 | ' | ' |
Ending balance: collectively evaluated for impairment | 652 | 821 | ' | ' |
Balance, End of Period | 745 | 907 | 512 | 1,392 |
Loan balances: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 1,082 | 502 | ' | ' |
Ending balance: collectively evaluated for impairment | 56,030 | 65,966 | ' | ' |
Total loans | 57,112 | 66,468 | ' | ' |
Consumer [Member] | ' | ' | ' | ' |
Allowance for loan losses: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 102 | 0 | ' | ' |
Ending balance: collectively evaluated for impairment | 139 | 189 | ' | ' |
Balance, End of Period | 241 | 189 | 313 | 279 |
Loan balances: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 284 | 21 | ' | ' |
Ending balance: collectively evaluated for impairment | 10,155 | 14,267 | ' | ' |
Total loans | 10,439 | 14,288 | ' | ' |
Unallocated [Member] | ' | ' | ' | ' |
Allowance for loan losses: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | ' | ' |
Ending balance: collectively evaluated for impairment | 2,326 | 2,638 | ' | ' |
Balance, End of Period | 2,326 | 2,638 | 33 | 0 |
Loan balances: [Abstract] | ' | ' | ' | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | ' | ' |
Ending balance: collectively evaluated for impairment | 0 | 0 | ' | ' |
Total loans | $0 | $0 | ' | ' |
LOANS_Loans_Current_and_Past_D
LOANS, Loans Current and Past Due by Aging Categories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of current and past due loans | ' | ' |
30-59 days past due | $3,049 | $12,435 |
60-89 days past due | 439 | 1,727 |
90 days and over past due | 15,183 | 16,435 |
Total past due | 18,671 | 30,597 |
Current | 1,050,177 | 750,183 |
Total loans | 1,068,848 | 780,780 |
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due (in hundredths) | 0.30% | 1.60% |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due (in hundredths) | 0.00% | 0.20% |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due (in hundredths) | 1.40% | 2.10% |
Financing Receivable, Recorded Investment, Past Due (in hundredths) | 1.70% | 3.90% |
Financing Receivable, Recorded Investment, Current (in hundredths) | 98.30% | 96.10% |
Total (in hundredth) | 100.00% | 100.00% |
Commercial and Industrial [Member] | ' | ' |
Summary of current and past due loans | ' | ' |
30-59 days past due | 13 | 6,591 |
60-89 days past due | 0 | 1,274 |
90 days and over past due | 5,014 | 6,529 |
Total past due | 5,027 | 14,394 |
Current | 166,172 | 154,315 |
Total loans | 171,199 | 168,709 |
Commercial Real Estate [Member] | ' | ' |
Summary of current and past due loans | ' | ' |
30-59 days past due | 631 | 1,145 |
60-89 days past due | 0 | 329 |
90 days and over past due | 7,492 | 5,192 |
Total past due | 8,123 | 6,666 |
Current | 461,234 | 353,344 |
Total loans | 469,357 | 360,010 |
Multifamily [Member] | ' | ' |
Summary of current and past due loans | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days and over past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 184,624 | 9,261 |
Total loans | 184,624 | 9,261 |
Real Estate Construction [Member] | ' | ' |
Summary of current and past due loans | ' | ' |
30-59 days past due | 0 | 1,382 |
60-89 days past due | 0 | 0 |
90 days and over past due | 0 | 1,961 |
Total past due | 0 | 3,343 |
Current | 6,565 | 12,126 |
Total loans | 6,565 | 15,469 |
Residential Mortgages [Member] | ' | ' |
Summary of current and past due loans | ' | ' |
30-59 days past due | 1,535 | 2,867 |
60-89 days past due | 339 | 6 |
90 days and over past due | 1,897 | 2,466 |
Total past due | 3,771 | 5,339 |
Current | 165,781 | 141,236 |
Total loans | 169,552 | 146,575 |
Home Equity [Member] | ' | ' |
Summary of current and past due loans | ' | ' |
30-59 days past due | 795 | 261 |
60-89 days past due | 100 | 100 |
90 days and over past due | 647 | 266 |
Total past due | 1,542 | 627 |
Current | 55,570 | 65,841 |
Total loans | 57,112 | 66,468 |
Consumer [Member] | ' | ' |
Summary of current and past due loans | ' | ' |
30-59 days past due | 75 | 189 |
60-89 days past due | 0 | 18 |
90 days and over past due | 133 | 21 |
Total past due | 208 | 228 |
Current | 10,231 | 14,060 |
Total loans | $10,439 | $14,288 |
LOANS_Summary_of_Impaired_Loan
LOANS, Summary of Impaired Loans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of impaired loans [Abstract] | ' | ' | ' |
Impaired loans with no allowance recorded, Unpaid Principal Balance | $22,171 | $20,463 | ' |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 4,518 | 8,802 | ' |
Impaired loans, Unpaid Principal Balance, Total | 26,689 | 29,265 | ' |
Impaired loans with no allowance recorded, Recorded Investment | 21,608 | 18,304 | ' |
Impaired loans with an allowance recorded, Recorded Investment | 4,382 | 8,652 | ' |
Impaired Loans, Recorded Investment, Total | 25,990 | 26,956 | ' |
Impaired Loans, No Allowance Allocated | 0 | 0 | ' |
Impaired Loans, Allowance Allocated | 945 | 1,024 | ' |
Average recorded investment in impaired loans | 30,128 | 87,947 | 121,931 |
Interest income recognized on impaired loans | 2,094 | 1,498 | 4,392 |
Commercial and Industrial [Member] | ' | ' | ' |
Summary of impaired loans [Abstract] | ' | ' | ' |
Impaired loans with no allowance recorded, Unpaid Principal Balance | 6,711 | 7,913 | ' |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 1,043 | 2,884 | ' |
Impaired loans with no allowance recorded, Recorded Investment | 6,711 | 7,492 | ' |
Impaired loans with an allowance recorded, Recorded Investment | 1,043 | 2,877 | ' |
Impaired Loans, No Allowance Allocated | 0 | 0 | ' |
Impaired Loans, Allowance Allocated | 41 | 340 | ' |
Average recorded investment in impaired loans | 12,065 | 23,215 | 25,179 |
Interest income recognized on impaired loans | 800 | 447 | 1,422 |
Commercial Real Estate [Member] | ' | ' | ' |
Summary of impaired loans [Abstract] | ' | ' | ' |
Impaired loans with no allowance recorded, Unpaid Principal Balance | 12,239 | 8,859 | ' |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 0 | 2,161 | ' |
Impaired loans with no allowance recorded, Recorded Investment | 11,821 | 7,282 | ' |
Impaired loans with an allowance recorded, Recorded Investment | 0 | 2,161 | ' |
Impaired Loans, No Allowance Allocated | 0 | 0 | ' |
Impaired Loans, Allowance Allocated | 0 | 22 | ' |
Average recorded investment in impaired loans | 11,556 | 38,477 | 55,449 |
Interest income recognized on impaired loans | 1,041 | 501 | 2,970 |
Real Estate Construction [Member] | ' | ' | ' |
Summary of impaired loans [Abstract] | ' | ' | ' |
Impaired loans with no allowance recorded, Unpaid Principal Balance | 0 | 1,334 | ' |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 0 | 656 | ' |
Impaired loans with no allowance recorded, Recorded Investment | 0 | 1,305 | ' |
Impaired loans with an allowance recorded, Recorded Investment | 0 | 656 | ' |
Impaired Loans, No Allowance Allocated | 0 | 0 | ' |
Impaired Loans, Allowance Allocated | 0 | 1 | ' |
Average recorded investment in impaired loans | 488 | 13,681 | 30,641 |
Interest income recognized on impaired loans | 114 | 410 | 0 |
Residential Mortgages [Member] | ' | ' | ' |
Summary of impaired loans [Abstract] | ' | ' | ' |
Impaired loans with no allowance recorded, Unpaid Principal Balance | 2,305 | 1,918 | ' |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 2,873 | 3,015 | ' |
Impaired loans with no allowance recorded, Recorded Investment | 2,176 | 1,788 | ' |
Impaired loans with an allowance recorded, Recorded Investment | 2,873 | 2,872 | ' |
Impaired Loans, No Allowance Allocated | 0 | 0 | ' |
Impaired Loans, Allowance Allocated | 709 | 575 | ' |
Average recorded investment in impaired loans | 4,970 | 9,538 | 6,956 |
Interest income recognized on impaired loans | 102 | 127 | 0 |
Home Equity [Member] | ' | ' | ' |
Summary of impaired loans [Abstract] | ' | ' | ' |
Impaired loans with no allowance recorded, Unpaid Principal Balance | 891 | 418 | ' |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 328 | 86 | ' |
Impaired loans with no allowance recorded, Recorded Investment | 891 | 416 | ' |
Impaired loans with an allowance recorded, Recorded Investment | 191 | 86 | ' |
Impaired Loans, No Allowance Allocated | 0 | 0 | ' |
Impaired Loans, Allowance Allocated | 93 | 86 | ' |
Average recorded investment in impaired loans | 814 | 2,607 | 3,369 |
Interest income recognized on impaired loans | 15 | 13 | 0 |
Consumer [Member] | ' | ' | ' |
Summary of impaired loans [Abstract] | ' | ' | ' |
Impaired loans with no allowance recorded, Unpaid Principal Balance | 25 | 21 | ' |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 274 | 0 | ' |
Impaired loans with no allowance recorded, Recorded Investment | 9 | 21 | ' |
Impaired loans with an allowance recorded, Recorded Investment | 275 | 0 | ' |
Impaired Loans, No Allowance Allocated | 0 | 0 | ' |
Impaired Loans, Allowance Allocated | 102 | 0 | ' |
Average recorded investment in impaired loans | 235 | 429 | 337 |
Interest income recognized on impaired loans | $22 | $0 | $0 |
LOANS_Summary_of_NonPerforming
LOANS, Summary of Non-Performing Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of non-performing assets | ' | ' |
Non-accrual loans | $15,183 | $16,435 |
Non-accrual loans sold-for-sale | 0 | 907 |
Loans 90 days past due and still accruing | 0 | 0 |
OREO | 0 | 1,572 |
Total non-performing assets | 15,183 | 18,914 |
TDRs accruing interest | 10,647 | 9,954 |
TDRs - nonaccruing | $5,438 | $6,650 |
LOANS_Loans_and_Allowance_for_1
LOANS, Loans and Allowance for Loan Losses by Risk Rating (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Summarizes non-accrual loans by loan class | ' | ' | ' | ||
Non-accrual Loans principal balance | $15,183 | $16,435 | ' | ||
Percentage of Total (in hundredths) | 100.00% | 100.00% | ' | ||
Total Loans | 1,068,848 | 780,780 | ' | ||
Percentage of Total Loans (in hundredths) | 1.40% | 2.10% | ' | ||
Collateral value securing non-accrual loans [Abstract] | ' | ' | ' | ||
Non-accrual Loans principal balance | 15,183 | 16,435 | ' | ||
Non-accrual loans collateral value | 23,636 | 26,726 | ' | ||
Additional interest income for the non-accrual loans outstanding at the end of the reported periods | 521 | 854 | 4,300 | ||
Commercial and Industrial [Member] | ' | ' | ' | ||
Summarizes non-accrual loans by loan class | ' | ' | ' | ||
Non-accrual Loans principal balance | 5,014 | [1] | 6,529 | [1] | ' |
Percentage of Total (in hundredths) | 33.00% | 39.80% | ' | ||
Total Loans | 171,199 | 168,709 | ' | ||
Percentage of Total Loans (in hundredths) | 0.40% | 0.80% | ' | ||
Collateral value securing non-accrual loans [Abstract] | ' | ' | ' | ||
Non-accrual Loans principal balance | 5,014 | [1] | 6,529 | [1] | ' |
Non-accrual loans collateral value | 3,750 | [1] | 4,400 | [1] | ' |
Commercial Real Estate [Member] | ' | ' | ' | ||
Summarizes non-accrual loans by loan class | ' | ' | ' | ||
Non-accrual Loans principal balance | 7,492 | 5,192 | ' | ||
Percentage of Total (in hundredths) | 49.30% | 31.60% | ' | ||
Total Loans | 469,357 | 360,010 | ' | ||
Percentage of Total Loans (in hundredths) | 0.70% | 0.70% | ' | ||
Collateral value securing non-accrual loans [Abstract] | ' | ' | ' | ||
Non-accrual Loans principal balance | 7,492 | 5,192 | ' | ||
Non-accrual loans collateral value | 13,050 | 12,675 | ' | ||
Multifamily [Member] | ' | ' | ' | ||
Summarizes non-accrual loans by loan class | ' | ' | ' | ||
Non-accrual Loans principal balance | 0 | 0 | ' | ||
Percentage of Total (in hundredths) | 0.00% | 0.00% | ' | ||
Total Loans | 184,624 | 9,261 | ' | ||
Percentage of Total Loans (in hundredths) | 0.00% | 0.00% | ' | ||
Collateral value securing non-accrual loans [Abstract] | ' | ' | ' | ||
Non-accrual Loans principal balance | 0 | 0 | ' | ||
Real Estate Construction [Member] | ' | ' | ' | ||
Summarizes non-accrual loans by loan class | ' | ' | ' | ||
Non-accrual Loans principal balance | 0 | 1,961 | ' | ||
Percentage of Total (in hundredths) | 0.00% | 11.90% | ' | ||
Total Loans | 6,565 | 15,469 | ' | ||
Percentage of Total Loans (in hundredths) | 0.00% | 0.30% | ' | ||
Collateral value securing non-accrual loans [Abstract] | ' | ' | ' | ||
Non-accrual Loans principal balance | 0 | 1,961 | ' | ||
Non-accrual loans collateral value | 0 | 3,661 | ' | ||
Residential Mortgages [Member] | ' | ' | ' | ||
Summarizes non-accrual loans by loan class | ' | ' | ' | ||
Non-accrual Loans principal balance | 1,897 | 2,466 | ' | ||
Percentage of Total (in hundredths) | 12.50% | 15.00% | ' | ||
Total Loans | 169,552 | 146,575 | ' | ||
Percentage of Total Loans (in hundredths) | 0.20% | 0.30% | ' | ||
Collateral value securing non-accrual loans [Abstract] | ' | ' | ' | ||
Non-accrual Loans principal balance | 1,897 | 2,466 | ' | ||
Non-accrual loans collateral value | 3,764 | 5,141 | ' | ||
Home Equity [Member] | ' | ' | ' | ||
Summarizes non-accrual loans by loan class | ' | ' | ' | ||
Non-accrual Loans principal balance | 647 | 266 | ' | ||
Percentage of Total (in hundredths) | 4.30% | 1.60% | ' | ||
Total Loans | 57,112 | 66,468 | ' | ||
Percentage of Total Loans (in hundredths) | 0.10% | 0.00% | ' | ||
Collateral value securing non-accrual loans [Abstract] | ' | ' | ' | ||
Non-accrual Loans principal balance | 647 | 266 | ' | ||
Non-accrual loans collateral value | 3,072 | 849 | ' | ||
Consumer [Member] | ' | ' | ' | ||
Summarizes non-accrual loans by loan class | ' | ' | ' | ||
Non-accrual Loans principal balance | 133 | 21 | ' | ||
Percentage of Total (in hundredths) | 0.90% | 0.10% | ' | ||
Total Loans | 10,439 | 14,288 | ' | ||
Percentage of Total Loans (in hundredths) | 0.00% | 0.00% | ' | ||
Collateral value securing non-accrual loans [Abstract] | ' | ' | ' | ||
Non-accrual Loans principal balance | 133 | 21 | ' | ||
Non-accrual loans collateral value | $0 | $0 | ' | ||
[1] | Repayment of commercial and industrial loans is expected primarily from the cash flow of the business. The collateral typically securing these loans is a lien on all corporate assets via a blanket UCC filing and does not usually include real estate. For purposes of this disclosure, the Company has ascribed no value to the non-real estate collateral for this class of loans. |
LOANS_Loans_by_Internal_Assign
LOANS, Loans by Internal Assigned Grade for Credit Risk (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Allowance for loan losses | ' | ' | ' | ' |
Balance, Beginning of Period | ' | $17,781,000 | $39,958,000 | $28,419,000 |
Charge-offs | -1,500,000 | -4,100,000 | -33,946,000 | -14,597,000 |
Recoveries | ' | 2,332,000 | 3,269,000 | 1,298,000 |
Reclass to allowance for off-balance sheet credit risk | ' | ' | ' | -50,000 |
Provision (credit) for loan losses | ' | 1,250,000 | 8,500,000 | 24,888,000 |
Balance, End of Period | 17,263,000 | 17,263,000 | 17,781,000 | 39,958,000 |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 1,068,848,000 | 1,068,848,000 | 780,780,000 | ' |
Total (in hundredth) | 100.00% | 100.00% | 100.00% | ' |
Pass [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 1,026,121,000 | 1,026,121,000 | 681,865,000 | ' |
Total (in hundredth) | 96.00% | 96.00% | 87.30% | ' |
Special Mention [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 5,751,000 | 5,751,000 | 44,665,000 | ' |
Total (in hundredth) | 0.50% | 0.50% | 5.70% | ' |
Substandard [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 36,976,000 | 36,976,000 | 54,250,000 | ' |
Total (in hundredth) | 3.50% | 3.50% | 7.00% | ' |
Commercial and Industrial [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Balance, Beginning of Period | ' | 6,181,000 | 25,047,000 | 13,826,000 |
Charge-offs | ' | -2,867,000 | -8,534,000 | -9,490,000 |
Recoveries | ' | 2,077,000 | 2,456,000 | 781,000 |
Reclass to allowance for off-balance sheet credit risk | ' | ' | ' | 0 |
Provision (credit) for loan losses | ' | -2,776,000 | -12,788,000 | 19,930,000 |
Balance, End of Period | 2,615,000 | 2,615,000 | 6,181,000 | 25,047,000 |
Increase (decrease) in historical loss factors (in basis points) | ' | -218 | ' | ' |
Period increase (decrease) in specific reserves | ' | -299,000 | ' | ' |
Increase (decrease) in balance of unimpaired pass rated loans | ' | 15,000,000 | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 171,199,000 | 171,199,000 | 168,709,000 | ' |
Commercial and Industrial [Member] | Pass [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 158,536,000 | 158,536,000 | 143,804,000 | ' |
Commercial and Industrial [Member] | Special Mention [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 2,934,000 | 2,934,000 | 5,995,000 | ' |
Commercial and Industrial [Member] | Substandard [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 9,729,000 | 9,729,000 | 18,910,000 | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Balance, Beginning of Period | ' | 5,999,000 | 10,470,000 | 9,149,000 |
Charge-offs | ' | -383,000 | -15,794,000 | -4,059,000 |
Recoveries | ' | 97,000 | 0 | 0 |
Reclass to allowance for off-balance sheet credit risk | ' | ' | ' | -50,000 |
Provision (credit) for loan losses | ' | 913,000 | 11,323,000 | 5,430,000 |
Balance, End of Period | 6,626,000 | 6,626,000 | 5,999,000 | 10,470,000 |
Increase (decrease) in loss factor on unimpaired pass rate loans (in hundredths) | ' | -0.24% | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 469,357,000 | 469,357,000 | 360,010,000 | ' |
Commercial Real Estate [Member] | Pass [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 445,302,000 | 445,302,000 | 301,862,000 | ' |
Commercial Real Estate [Member] | Special Mention [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 2,817,000 | 2,817,000 | 38,670,000 | ' |
Commercial Real Estate [Member] | Substandard [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 21,238,000 | 21,238,000 | 19,478,000 | ' |
Commercial Real Estate [Member] | Unimpaired Pass Rated Loans [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Period increase (decrease) in balance of unimpaired pass rated loans | ' | 143,000,000 | ' | ' |
Multifamily [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Balance, Beginning of Period | ' | 150,000 | 559,000 | 77,000 |
Charge-offs | ' | 0 | 0 | 0 |
Recoveries | ' | 0 | 0 | 0 |
Reclass to allowance for off-balance sheet credit risk | ' | ' | ' | 0 |
Provision (credit) for loan losses | ' | 2,009,000 | -409,000 | 482,000 |
Balance, End of Period | 2,159,000 | 2,159,000 | 150,000 | 559,000 |
Increase (decrease) in loss factor on unimpaired pass rate loans (in hundredths) | ' | -0.39% | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 184,624,000 | 184,624,000 | 9,261,000 | ' |
Multifamily [Member] | Pass [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 184,624,000 | 184,624,000 | 9,261,000 | ' |
Multifamily [Member] | Special Mention [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 0 | 0 | 0 | ' |
Multifamily [Member] | Substandard [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 0 | 0 | 0 | ' |
Multifamily [Member] | Unimpaired Pass Rated Loans [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Period increase (decrease) in balance of unimpaired pass rated loans | ' | 175,000,000 | ' | ' |
Real Estate Construction [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Balance, Beginning of Period | ' | 141,000 | 623,000 | 3,177,000 |
Charge-offs | ' | 0 | -3,671,000 | -232,000 |
Recoveries | ' | 0 | 340,000 | 415,000 |
Reclass to allowance for off-balance sheet credit risk | ' | ' | ' | 0 |
Provision (credit) for loan losses | ' | -53,000 | 2,849,000 | -2,737,000 |
Balance, End of Period | 88,000 | 88,000 | 141,000 | 623,000 |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 6,565,000 | 6,565,000 | 15,469,000 | ' |
Real Estate Construction [Member] | Pass [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 6,565,000 | 6,565,000 | 4,790,000 | ' |
Real Estate Construction [Member] | Special Mention [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 0 | 0 | 0 | ' |
Real Estate Construction [Member] | Substandard [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 0 | 0 | 10,679,000 | ' |
Residential Mortgages [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Balance, Beginning of Period | ' | 1,576,000 | 2,401,000 | 519,000 |
Charge-offs | ' | -126,000 | -3,727,000 | -411,000 |
Recoveries | ' | 5,000 | 115,000 | 3,000 |
Reclass to allowance for off-balance sheet credit risk | ' | ' | ' | 0 |
Provision (credit) for loan losses | ' | 1,008,000 | 2,787,000 | 2,290,000 |
Balance, End of Period | 2,463,000 | 2,463,000 | 1,576,000 | 2,401,000 |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 169,552,000 | 169,552,000 | 146,575,000 | ' |
Residential Mortgages [Member] | Pass [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 164,559,000 | 164,559,000 | 141,915,000 | ' |
Residential Mortgages [Member] | Special Mention [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 0 | 0 | 0 | ' |
Residential Mortgages [Member] | Substandard [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 4,993,000 | 4,993,000 | 4,660,000 | ' |
Home Equity [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Balance, Beginning of Period | ' | 907,000 | 512,000 | 1,392,000 |
Charge-offs | ' | -558,000 | -1,953,000 | -191,000 |
Recoveries | ' | 32,000 | 246,000 | 2,000 |
Reclass to allowance for off-balance sheet credit risk | ' | ' | ' | 0 |
Provision (credit) for loan losses | ' | 364,000 | 2,102,000 | -691,000 |
Balance, End of Period | 745,000 | 745,000 | 907,000 | 512,000 |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 57,112,000 | 57,112,000 | 66,468,000 | ' |
Home Equity [Member] | Pass [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 56,379,000 | 56,379,000 | 65,966,000 | ' |
Home Equity [Member] | Special Mention [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 0 | 0 | 0 | ' |
Home Equity [Member] | Substandard [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 733,000 | 733,000 | 502,000 | ' |
Consumer [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Balance, Beginning of Period | ' | 189,000 | 313,000 | 279,000 |
Charge-offs | ' | -166,000 | -267,000 | -214,000 |
Recoveries | ' | 121,000 | 112,000 | 97,000 |
Reclass to allowance for off-balance sheet credit risk | ' | ' | ' | 0 |
Provision (credit) for loan losses | ' | 97,000 | 31,000 | 151,000 |
Balance, End of Period | 241,000 | 241,000 | 189,000 | 313,000 |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 10,439,000 | 10,439,000 | 14,288,000 | ' |
Consumer [Member] | Pass [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 10,156,000 | 10,156,000 | 14,267,000 | ' |
Consumer [Member] | Special Mention [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 0 | 0 | 0 | ' |
Consumer [Member] | Substandard [Member] | ' | ' | ' | ' |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | 283,000 | 283,000 | 21,000 | ' |
Unallocated [Member] | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Balance, Beginning of Period | ' | 2,638,000 | 33,000 | 0 |
Charge-offs | ' | 0 | 0 | 0 |
Recoveries | ' | 0 | 0 | 0 |
Reclass to allowance for off-balance sheet credit risk | ' | ' | ' | 0 |
Provision (credit) for loan losses | ' | -312,000 | 2,605,000 | 33,000 |
Balance, End of Period | 2,326,000 | 2,326,000 | 2,638,000 | 33,000 |
Credit risk profile by internally assigned grade | ' | ' | ' | ' |
Total | $0 | $0 | $0 | ' |
LOANS_Loans_Modified_as_Troubl
LOANS, Loans Modified as Troubled Debt Restructurings (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loan | Loan | Loan | |
Troubled debt restructuring at end of period | ' | ' | ' |
Number of loans | 70 | 70 | ' |
Outstanding recorded investment | $16,085 | $16,604 | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | 16 | 24 | 44 |
Outstanding Recorded Balance, pre-modification | 6,450 | 8,340 | 14,558 |
Outstanding Recorded Balance, Post modification | 6,450 | 8,340 | 14,767 |
Defaulted Troubled Debt Restructurings [Member] | ' | ' | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | 2 | 4 | 11 |
Outstanding Recorded Balance, pre-modification | 700 | 1,932 | 4,920 |
Commercial and Industrial [Member] | ' | ' | ' |
Troubled debt restructuring at end of period | ' | ' | ' |
Number of loans | 43 | 41 | ' |
Outstanding recorded investment | 6,022 | 6,468 | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | 8 | 17 | 29 |
Outstanding Recorded Balance, pre-modification | 2,484 | 6,674 | 4,099 |
Outstanding Recorded Balance, Post modification | 2,484 | 6,674 | 4,123 |
Commercial and Industrial [Member] | Defaulted Troubled Debt Restructurings [Member] | ' | ' | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | 0 | 2 | 9 |
Outstanding Recorded Balance, pre-modification | 0 | 1,125 | 41 |
Commercial Real Estate [Member] | ' | ' | ' |
Troubled debt restructuring at end of period | ' | ' | ' |
Number of loans | 7 | 9 | ' |
Outstanding recorded investment | 6,022 | 6,238 | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | 3 | 0 | 8 |
Outstanding Recorded Balance, pre-modification | 3,025 | 0 | 8,697 |
Outstanding Recorded Balance, Post modification | 3,025 | 0 | 8,697 |
Commercial Real Estate [Member] | Defaulted Troubled Debt Restructurings [Member] | ' | ' | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | 1 | 0 | 2 |
Outstanding Recorded Balance, pre-modification | 390 | 0 | 4,879 |
Residential Mortgages [Member] | ' | ' | ' |
Troubled debt restructuring at end of period | ' | ' | ' |
Number of loans | 17 | 15 | ' |
Outstanding recorded investment | 3,891 | 3,587 | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | 4 | 6 | 5 |
Outstanding Recorded Balance, pre-modification | 924 | 1,617 | 1,437 |
Outstanding Recorded Balance, Post modification | 924 | 1,617 | 1,622 |
Residential Mortgages [Member] | Defaulted Troubled Debt Restructurings [Member] | ' | ' | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | 1 | 2 | 0 |
Outstanding Recorded Balance, pre-modification | 310 | 807 | 0 |
Home Equity [Member] | ' | ' | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | ' | ' | 1 |
Outstanding Recorded Balance, pre-modification | ' | ' | 291 |
Outstanding Recorded Balance, Post modification | ' | ' | 291 |
Consumer [Member] | ' | ' | ' |
Troubled debt restructuring at end of period | ' | ' | ' |
Number of loans | 3 | 5 | ' |
Outstanding recorded investment | 150 | 311 | ' |
Troubled debt restructured during year | ' | ' | ' |
Number of Loans | 1 | 1 | 1 |
Outstanding Recorded Balance, pre-modification | 17 | 49 | 34 |
Outstanding Recorded Balance, Post modification | $17 | $49 | $34 |
LOANS_Loans_Modified_or_Renewe
LOANS, Loans Modified or Renewed (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loan | Loan | Loan | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of loans | 61 | 47 | 5 |
Outstanding recorded balance | $47,155 | $48,115 | $1,599 |
Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of loans | 19 | 13 | 0 |
Outstanding recorded balance | 6,741 | 8,111 | 0 |
Commercial Real Estate [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of loans | 41 | 34 | 5 |
Outstanding recorded balance | 40,004 | 40,004 | 1,599 |
Multifamily [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of loans | 1 | 0 | 0 |
Outstanding recorded balance | $410 | $0 | $0 |
LOANS_Details_Textual
LOANS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for Loan Losses (Additional Textual) [Abstract] | ' | ' |
Number of consecutive years | '5 years | ' |
Threshold Loan Amount For Annual Rating Review | $1,000,000 | ' |
Allocation of Specific Reserve Regarding Troubled Debt Restructuring | 586,000 | 800,000 |
Troubled debt restructuring funds committed | $250,000 | $35,000 |
Minimum repayment period | '2 years | ' |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Branch | |||
Premises and equipment [Abstract] | ' | ' | ' |
Premises and equipment, gross | $63,265,000 | $63,612,000 | ' |
Accumulated depreciation and amortization | -38,004,000 | -35,956,000 | ' |
Balance at end of year | 25,261,000 | 27,656,000 | ' |
Depreciation and amortization | 3,258,000 | 2,572,000 | 2,510,000 |
Accelerated depreciation | 507,000 | ' | ' |
Number of branches closed during the period | 2 | ' | ' |
Number of branches scheduled to closed | 4 | ' | ' |
Depreciation and amortization on property under capital lease | 704,000 | 461,000 | 167,000 |
Land [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Estimated Useful Lives | 'Indefinite | ' | ' |
Premises and equipment, gross | 3,201,000 | 3,326,000 | ' |
Premises [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Premises and equipment, gross | 27,570,000 | 28,167,000 | ' |
Property under capital lease | 5,000,000 | 5,000,000 | ' |
Premises [Member] | Minimum [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Estimated Useful Lives | '30 years | ' | ' |
Premises [Member] | Maximum [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Estimated Useful Lives | '40 years | ' | ' |
Furniture, Fixtures & Equipment [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Premises and equipment, gross | 28,669,000 | 28,250,000 | ' |
Furniture, Fixtures & Equipment [Member] | Minimum [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Estimated Useful Lives | '3 years | ' | ' |
Furniture, Fixtures & Equipment [Member] | Maximum [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Estimated Useful Lives | '7 years | ' | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Premises and equipment, gross | $3,825,000 | $3,869,000 | ' |
Leasehold Improvements [Member] | Minimum [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Estimated Useful Lives | '2 years | ' | ' |
Leasehold Improvements [Member] | Maximum [Member] | ' | ' | ' |
Premises and equipment [Abstract] | ' | ' | ' |
Estimated Useful Lives | '25 years | ' | ' |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Contractual maturities of time deposits [Abstract] | ' | ' |
Total | $66,742 | $78,000 |
Time deposits > $100,000 [Member] | ' | ' |
Contractual maturities of time deposits [Abstract] | ' | ' |
2014 | 137,067 | ' |
2015 | 9,804 | ' |
2016 | 7,613 | ' |
2017 | 2,802 | ' |
2018 | 1,051 | ' |
Total | 158,337 | ' |
Other Time Deposits [Member] | ' | ' |
Contractual maturities of time deposits [Abstract] | ' | ' |
2014 | 45,856 | ' |
2015 | 10,671 | ' |
2016 | 3,530 | ' |
2017 | 4,350 | ' |
2018 | 2,335 | ' |
Total | $66,742 | ' |
BORROWINGS_Details
BORROWINGS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Borrowings [Line Items] | ' | ' |
Daily average outstanding | $22,000 | $57,000 |
Total interest cost | 0 | 0 |
Average interest rate paid (in hundredths) | 0.37% | 0.48% |
Maximum amount outstanding at any month-end | 0 | 0 |
December 31, balance | 0 | 0 |
Weighted-average interest rate on balances outstanding (in hundredths) | 0.00% | 0.00% |
Assets pledged as collateral to the Federal Home Loan Bank | 337,000,000 | 85,000,000 |
Assets pledged as collateral to the Federal Reserve Bank | 0 | 0 |
Short-Term Borrowings [Member] | ' | ' |
Borrowings [Line Items] | ' | ' |
Daily average outstanding | 22,000 | 57,000 |
Total interest cost | 0 | 0 |
Average interest rate paid (in hundredths) | 0.37% | 0.48% |
Maximum amount outstanding at any month-end | 0 | 0 |
December 31, balance | 0 | 0 |
Weighted-average interest rate on balances outstanding (in hundredths) | 0.00% | 0.00% |
Long-Term Borrowings [Member] | ' | ' |
Borrowings [Line Items] | ' | ' |
Daily average outstanding | 0 | 0 |
Total interest cost | 0 | 0 |
Average interest rate paid (in hundredths) | 0.00% | 0.00% |
Maximum amount outstanding at any month-end | 0 | 0 |
December 31, balance | $0 | $0 |
Weighted-average interest rate on balances outstanding (in hundredths) | 0.00% | 0.00% |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shareholder discount percentage for dividend reinvestment (in hundredths) | 3.00% | ' | ' |
Percentage of cost in which shares may be traded (in hundredths) | 100.00% | ' | ' |
Shares issued under Dividend Reinvestment Plan (in shares) | 0 | 0 | 32,614 |
Options exercisable period | '3 years | '3 years | '3 years |
Vesting rate | '0.33 | '0.33 | '0.33 |
Common stock, new shares (in shares) | 6,667 | ' | ' |
Shares surrendered (in shares) | ' | ' | 3,122 |
Fair market value of shares surrendered | ' | ' | $77 |
Compensation expense | 579 | 458 | 0 |
Remaining unrecognized compensation cost | 942 | ' | ' |
Remaining Unrecognized Compensation Cost Remaining Vesting Period | '2 years 4 months 24 days | ' | ' |
Shares [Roll Forward] | ' | ' | ' |
Balance at Beginning (in shares) | 211,500 | 111,500 | 89,500 |
Options granted (in shares) | 111,500 | 130,000 | 50,000 |
Options exercised (in shares) | -6,667 | 0 | -5,000 |
Options expired or forfeited (in shares) | -25,333 | -30,000 | -23,000 |
Balance at Ending (in shares) | 291,000 | 211,500 | 111,500 |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Balance at Beginning (in dollars per share) | $15.41 | $22.57 | $30.32 |
Options granted (in dollars per share) | $17.31 | $13.15 | $10.79 |
Options exercised (in dollars per share) | $13.44 | $0 | $15.50 |
Options expired or forfeited (in dollars per share) | $15.50 | $32.23 | $28.67 |
Balance at Ending (in dollars per share) | $16.18 | $15.41 | $22.57 |
Options granted during the year [Abstract] | ' | ' | ' |
Options granted (in shares) | 111,500 | 130,000 | 50,000 |
Black-Scholes Assumptions [Abstract] | ' | ' | ' |
Risk-free interest rate (in hundredths) | 1.22% | 0.78% | 2.10% |
Expected dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% |
Expected life (in years) | '10 years | '10 years | '10 years |
Expected volatility (in hundredths) | 42.95% | 43.03% | 42.60% |
Weighted average fair value (in dollars per share) | $9.24 | $7.13 | $5.95 |
Stock Appreciation Rights (SARs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options outstanding related to SAR's (in shares) | 6,000 | ' | ' |
Intrinsic value of SAR's (in dollars per share) | $0 | ' | ' |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total intrinsic value of options exercised | 15 | ' | 47 |
Total cash received from option exercises | $91 | ' | $0 |
Non Qualified Stock Option [Member] | Chief Executive Officer [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options exercisable period | ' | ' | '3 years |
Vesting rate | ' | ' | '0.33 |
Shares [Roll Forward] | ' | ' | ' |
Options granted (in shares) | ' | ' | 30,000 |
Options granted during the year [Abstract] | ' | ' | ' |
Options granted (in shares) | ' | ' | 30,000 |
Weighted average fair value of options (Black-Scholes model) at date of grant (in dollars per share) | ' | ' | $10.79 |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options exercisable period | '10 years | ' | ' |
2009 Stock Incentive Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Company's common stock reserved for issuance (in shares) | 500,000 | ' | ' |
Common stock available for possible issuance (in shares) | 261,833 | ' | ' |
1999 Stock Incentive Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Company's common stock reserved for issuance (in shares) | 0 | ' | ' |
STOCKHOLDERS_EQUITY_Stock_Opti
STOCKHOLDERS' EQUITY, Stock Option Plans (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Contractual weighted-average lives of outstanding options at various prices [Abstract] | ' | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '8 years 2 months 12 days | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '5 years 8 months 12 days | ' | ' | ' |
Total outstanding, Options (in shares) | 291,000 | 211,500 | 111,500 | 89,500 |
Total exercisable, Options (in shares) | 62,836 | ' | ' | ' |
Total outstanding, Weighted-average price (in dollars per share) | $16.18 | $15.41 | $22.57 | $30.32 |
Total exercisable, Weighted-average price (in dollars per share) | $21.92 | ' | ' | ' |
10.00 - $14.00 [Member] | ' | ' | ' | ' |
Contractual weighted-average lives of outstanding options at various prices [Abstract] | ' | ' | ' | ' |
From (in dollars per share) | $10 | ' | ' | ' |
To (in dollars per share) | $14 | ' | ' | ' |
Outstanding shares (in shares) | 140,000 | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '8 years 2 months 12 days | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | $12.01 | ' | ' | ' |
Exercisable shares (in shares) | 30,002 | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '8 years 3 months 18 days | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | $12.68 | ' | ' | ' |
14.01 - $20.00 [Member] | ' | ' | ' | ' |
Contractual weighted-average lives of outstanding options at various prices [Abstract] | ' | ' | ' | ' |
From (in dollars per share) | $14.01 | ' | ' | ' |
To (in dollars per share) | $20 | ' | ' | ' |
Outstanding shares (in shares) | 121,500 | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '9 years 6 months | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | $17.12 | ' | ' | ' |
Exercisable shares (in shares) | 3,334 | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '8 years 8 months 12 days | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | $14.97 | ' | ' | ' |
20.01 - $30.00 [Member] | ' | ' | ' | ' |
Contractual weighted-average lives of outstanding options at various prices [Abstract] | ' | ' | ' | ' |
From (in dollars per share) | $20.01 | ' | ' | ' |
To (in dollars per share) | $30 | ' | ' | ' |
Outstanding shares (in shares) | 5,000 | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '5 years 1 month 6 days | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | $28.30 | ' | ' | ' |
Exercisable shares (in shares) | 5,000 | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '5 years 1 month 6 days | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | $28.30 | ' | ' | ' |
30.01 - $40.00 [Member] | ' | ' | ' | ' |
Contractual weighted-average lives of outstanding options at various prices [Abstract] | ' | ' | ' | ' |
From (in dollars per share) | $30.01 | ' | ' | ' |
To (in dollars per share) | $40 | ' | ' | ' |
Outstanding shares (in shares) | 24,500 | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '2 years 3 months 18 days | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | $32.87 | ' | ' | ' |
Exercisable shares (in shares) | 24,500 | ' | ' | ' |
Weighted-Average Remaining Contractual Life | '2 years 3 months 18 days | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | $32.87 | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current [Abstract] | ' | ' | ' |
Federal | $135,000 | ($4,126,000) | $751,000 |
State | 510,000 | 280,000 | 345,000 |
Total Current Tax | 645,000 | -3,846,000 | 1,096,000 |
Deferred [Abstract] | ' | ' | ' |
Federal | 3,046,000 | 1,412,000 | -4,339,000 |
State | 31,000 | 1,162,000 | -980,000 |
Total Deferred Tax | 3,077,000 | 2,574,000 | -5,319,000 |
Valuation Allowance | 0 | 558,000 | 0 |
Total | 3,722,000 | -714,000 | -4,223,000 |
Effective income tax rate reconciliation [Abstract] | ' | ' | ' |
Federal income tax (benefit) expense at statutory rates (in hundredths) | 34.00% | -34.00% | -35.00% |
Tax-exempt income (in hundredths) | -14.00% | -82.00% | -56.00% |
State income taxes net of federal benefit (in hundredths) | 2.00% | 26.00% | -10.00% |
Deferred tax assets adjustment (in hundredths) | 0.00% | 62.00% | 0.00% |
Other (in hundredths) | 1.00% | -1.00% | 3.00% |
Total (in hundredths) | 23.00% | -29.00% | -98.00% |
Deferred tax assets [Abstract] | ' | ' | ' |
Allowance for possible loan losses | 6,269,000 | 6,458,000 | 15,835,000 |
Post-retirement benefits | 0 | 571,000 | 551,000 |
Deferred compensation | 1,588,000 | 1,642,000 | 1,941,000 |
Stock-based compensation | 668,000 | 458,000 | 326,000 |
Unrealized losses on securities available for sale | 2,336,000 | 0 | 0 |
Unfunded pension obligation | 94,000 | 2,826,000 | 7,396,000 |
Alternative Minimum Tax credit | 668,000 | 537,000 | 0 |
Net operating loss carryforward | 2,864,000 | 5,277,000 | 0 |
Other | 961,000 | 1,300,000 | 1,677,000 |
Total deferred tax assets | 15,448,000 | 19,069,000 | 27,726,000 |
Deferred tax liabilities [Abstract] | ' | ' | ' |
Unrealized gains on securities available for sale | 0 | -6,019,000 | -7,692,000 |
Other | -961,000 | -1,107,000 | -1,569,000 |
Total deferred tax liabilities | -961,000 | -7,126,000 | -9,261,000 |
Valuation Allowance | -534,000 | -558,000 | 0 |
Net deferred tax asset | 13,953,000 | 11,385,000 | 18,465,000 |
Income tax receivable | 0 | 5,406,000 | ' |
Changes in unrecognized tax benefits [Roll Forward] | ' | ' | ' |
Balance January 1 | 34,000 | 38,000 | 41,000 |
Additions from current year tax positions | 0 | 1,000 | 0 |
Reductions for prior year tax positions | 0 | -5,000 | -3,000 |
Balance December 31 | 34,000 | 34,000 | 38,000 |
Federal [Member] | ' | ' | ' |
Changes in unrecognized tax benefits [Roll Forward] | ' | ' | ' |
Net operating loss carryforwards | 6,900,000 | ' | ' |
Loss carryforward, year of expiration | '2032 | ' | ' |
State [Member] | ' | ' | ' |
Changes in unrecognized tax benefits [Roll Forward] | ' | ' | ' |
Net operating loss carryforwards | $23,100,000 | ' | ' |
Loss carryforward, year of expiration | '2032 | ' | ' |
EMPLOYEE_BENEFITS_Details
EMPLOYEE BENEFITS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fund | |||
Advisor | |||
Plan's funded status and amounts recognized in the Consolidated Statements Of Condition [Abstract] | ' | ' | ' |
Minimum Required Contribution for Pension Plan | $1,000,000 | ' | ' |
Additional minimum required contribution for the pension plan | 0 | ' | ' |
Target Allocation [Abstract] | ' | ' | ' |
Defined benefit plan, assumptions used calculating benefit obligation, weighted average discount rate (in hundredths) | 5.33% | ' | ' |
Defined benefit plan, assumptions used calculating benefit obligation, rate of compensation increase (in hundredths) | 0.00% | ' | ' |
Expected net periodic pension cost [Abstract] | ' | ' | ' |
Plan assets invested in number of common collective trust funds | 13 | ' | ' |
Number of sub advisors used in plan assets investment | 26 | ' | ' |
Non recurring gain | 1,700,000 | ' | ' |
Minimum age of employee to participate in 401(k) retirement plan | '21 years | ' | ' |
Minimum hours worked to participate in 401K retirement plan | '40 hours | ' | ' |
Minimum tenure of service to participate in 401K plan | '15 days | ' | ' |
Employee contribution limit for 401K Plan | 17,500 | ' | ' |
Percentage of employee annual gross compensation for employer matching contribution for 401(k) Plan, maximum (in hundredths) | 6.00% | ' | ' |
Contributions under the 401(k) Plan | 486,000 | 110,000 | 394,000 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' |
Net insurance (expense) income | -755,000 | 0 | 0 |
Director [Member] | Hamptons Bancshares, Inc. [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' |
Director's deferred compensation plan liability | 138,000 | 138,000 | ' |
Interest accrued on deferred compensation | 10,000 | 24,000 | 10,000 |
Payment to participants | 10,000 | ' | ' |
Participants deferred compensation | 138,000 | 138,000 | ' |
Auto loan Receivable [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 204,000 | ' |
Qualified Pension Plan [Member] | ' | ' | ' |
Plan's change in benefit obligation [Roll Forward] | ' | ' | ' |
Benefit obligation at start of year | 45,376,000 | 53,028,000 | 42,570,000 |
Service cost | 0 | 2,665,000 | 2,179,000 |
Interest cost | 1,993,000 | 2,218,000 | 2,250,000 |
Actuarial loss | -3,970,000 | -3,789,000 | 7,671,000 |
Benefits paid and expected expenses | -1,686,000 | -1,777,000 | -1,642,000 |
Curtailment | 0 | -6,969,000 | 0 |
Benefit obligation at end of year | 41,713,000 | 45,376,000 | 53,028,000 |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at start of year | 37,595,000 | 34,817,000 | 32,830,000 |
Actual return on plan assets | 5,758,000 | 3,615,000 | 13,000 |
Employer contribution | 0 | 1,000,000 | 3,700,000 |
Benefits paid | -1,897,000 | -1,837,000 | -1,726,000 |
Fair value of plan assets at end of year | 41,456,000 | 37,595,000 | 34,817,000 |
Plan's funded status and amounts recognized in the Consolidated Statements Of Condition [Abstract] | ' | ' | ' |
Prepaid Pension Cost | 4,696,000 | 4,632,000 | ' |
Unrecognized Net Loss | -4,953,000 | -12,413,000 | ' |
Under Funded Status | -257,000 | -7,781,000 | ' |
Amounts Included in Other Liabilities | -257,000 | -7,781,000 | ' |
Accumulated Benefit Obligation | 41,713,000 | 45,376,000 | ' |
Estimated benefits to be paid during the years [Abstract] | ' | ' | ' |
2014 | 1,969,000 | ' | ' |
2015 | 2,105,000 | ' | ' |
2016 | 2,178,000 | ' | ' |
2017 | 2,268,000 | ' | ' |
2018 | 2,319,000 | ' | ' |
2019-2023 | 12,439,000 | ' | ' |
Net periodic pension cost [Abstract] | ' | ' | ' |
Service cost | 0 | 2,665,000 | 2,179,000 |
Interest cost on projected benefit obligations | 1,993,000 | 2,218,000 | 2,250,000 |
Expected return on plan assets | -2,301,000 | -2,362,000 | -2,238,000 |
Net amortization & deferral | 244,000 | 1,628,000 | 974,000 |
Curtailment gain | 0 | -1,000 | 0 |
Net periodic pension cost | -64,000 | 4,148,000 | 3,165,000 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | ' | ' | ' |
Net actuarial (gain) loss | -7,460,000 | -13,578,000 | 5,348,000 |
Total recognized in other comprehensive (income) loss | -7,460,000 | -13,578,000 | 5,348,000 |
Total recognized in net periodic pension cost and other comprehensive loss (income) | -7,524,000 | -9,430,000 | 8,513,000 |
Weighted-average discount rate (in hundredths) | 4.50% | 4.27% | 5.38% |
Rate of increase in future compensation (in hundredths) | 0.00% | 3.50% | 3.50% |
Expected long-term rate of return on assets (in hundredths) | 7.00% | 7.00% | 7.00% |
Expected net periodic pension cost [Abstract] | ' | ' | ' |
Service cost | 0 | ' | ' |
Interest cost on projected benefit obligations | 2,158,000 | ' | ' |
Expected return on plan assets | -2,547,000 | ' | ' |
Net amortization & deferral | 25,000 | ' | ' |
Net periodic pension cost | -364,000 | ' | ' |
Weighted-average discount rate (in hundredths) | 4.50% | ' | ' |
Rate of increase in future compensation (in hundredths) | 0.00% | ' | ' |
Expected long-term rate of return on assets (in hundredths) | 7.00% | ' | ' |
Pension plan weighted-average asset allocations (in hundredths) | 100.00% | 100.00% | ' |
Qualified Pension Plan [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 41,456,000 | 37,595,000 | ' |
Qualified Pension Plan [Member] | Short-term Investment Funds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 290,000 | 4,852,000 | ' |
Qualified Pension Plan [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 17,073,000 | ' |
Qualified Pension Plan [Member] | Collateralized Mortgage Obligations [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 4,074,000 | ' |
Qualified Pension Plan [Member] | Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 9,000 | ' |
Qualified Pension Plan [Member] | Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 3,549,000 | ' |
Qualified Pension Plan [Member] | Government-issued Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 7,834,000 | ' |
Qualified Pension Plan [Member] | U.S. Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 9,395,000 | ' | ' |
Qualified Pension Plan [Member] | Non U.S. Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 15,654,000 | ' | ' |
Qualified Pension Plan [Member] | U.S. Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 13,692,000 | ' | ' |
Qualified Pension Plan [Member] | Non U.S. Fixed Income Securities [Securities] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 2,425,000 | ' | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 25,339,000 | 17,112,000 | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Short-term Investment Funds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 290,000 | 39,000 | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 17,073,000 | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Collateralized Mortgage Obligations [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 0 | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Auto loan Receivable [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 0 | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 0 | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 0 | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Government-issued Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 0 | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | U.S. Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 9,395,000 | ' | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Non U.S. Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 15,654,000 | ' | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | U.S. Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 0 | ' | ' |
Qualified Pension Plan [Member] | Active Markets for Identical Assets Quoted Prices (Level 1) [Member] | Non U.S. Fixed Income Securities [Securities] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 0 | ' | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 16,117,000 | 20,483,000 | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Short-term Investment Funds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 0 | 4,813,000 | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 0 | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Collateralized Mortgage Obligations [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 4,074,000 | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Auto loan Receivable [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 204,000 | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 9,000 | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 3,549,000 | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Government-issued Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | ' | 7,834,000 | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | U.S. Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 0 | ' | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Non U.S. Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 0 | ' | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | U.S. Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 13,692,000 | ' | ' |
Qualified Pension Plan [Member] | Significant other Observable Inputs (Level 2) [Member] | Non U.S. Fixed Income Securities [Securities] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Plan's change in plan assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at end of year | 2,425,000 | ' | ' |
Qualified Pension Plan [Member] | Cash [Member] | ' | ' | ' |
Expected net periodic pension cost [Abstract] | ' | ' | ' |
Pension plan weighted-average asset allocations (in hundredths) | 1.00% | 13.00% | ' |
Qualified Pension Plan [Member] | Equity Securities [Member] | ' | ' | ' |
Target Allocation [Abstract] | ' | ' | ' |
Target Allocations, Minimum (in hundredths) | 54.00% | ' | ' |
Target Allocations, Maximum (in hundredths) | 64.00% | ' | ' |
Expected net periodic pension cost [Abstract] | ' | ' | ' |
Pension plan weighted-average asset allocations (in hundredths) | 60.00% | 45.00% | ' |
Qualified Pension Plan [Member] | Debt Securities [Member] | ' | ' | ' |
Expected net periodic pension cost [Abstract] | ' | ' | ' |
Pension plan weighted-average asset allocations (in hundredths) | 39.00% | 42.00% | ' |
Qualified Pension Plan [Member] | Cash Equivalents [Member] | ' | ' | ' |
Target Allocation [Abstract] | ' | ' | ' |
Target Allocations, Minimum (in hundredths) | 0.00% | ' | ' |
Target Allocations, Maximum (in hundredths) | 5.00% | ' | ' |
Qualified Pension Plan [Member] | Fixed Income Securities [Member] | ' | ' | ' |
Target Allocation [Abstract] | ' | ' | ' |
Target Allocations, Minimum (in hundredths) | 36.00% | ' | ' |
Target Allocations, Maximum (in hundredths) | 46.00% | ' | ' |
1986 Plan [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' |
Director's deferred compensation plan liability | 177,000 | ' | ' |
Interest accrued on deferred compensation | 71,000 | -13,000 | 58,000 |
Payment to participants | 46,000 | ' | ' |
Net insurance (expense) income | ' | -155,000 | -156,000 |
Participants deferred compensation | 177,000 | ' | ' |
1999 Plan [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' |
Director's deferred compensation plan liability | 95,000 | 64,000 | 100,000 |
Payment to participants | 356,000 | 383,000 | 335,000 |
Participants deferred compensation | $95,000 | $64,000 | $100,000 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Outstanding letter of credit, maturity [Abstract] | ' | ' | ' |
Average balance maintained at the FRBNY | $200,000,000 | $244,000,000 | ' |
Total rental expense | 1,600,000 | 1,300,000 | 1,600,000 |
Capital Leases [Abstract] | ' | ' | ' |
2014 | 311,000 | ' | ' |
2015 | 317,000 | ' | ' |
2016 | 329,000 | ' | ' |
2017 | 341,000 | ' | ' |
2018 | 348,000 | ' | ' |
Thereafter | 5,060,000 | ' | ' |
Total minimum lease payments | 6,706,000 | ' | ' |
Less: amounts representing interest | 2,094,000 | ' | ' |
Present value of minimum lease payments | 4,612,000 | ' | ' |
Operating Leases [Abstract] | ' | ' | ' |
2014 | 1,420,000 | ' | ' |
2015 | 1,365,000 | ' | ' |
2016 | 1,011,000 | ' | ' |
2017 | 856,000 | ' | ' |
2018 | 503,000 | ' | ' |
Thereafter | 1,594,000 | ' | ' |
Total minimum lease payments | 6,749,000 | ' | ' |
Standby Letters of Credit [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Letters of credit | 18,000,000 | 19,000,000 | ' |
Outstanding letter of credit, maturity [Abstract] | ' | ' | ' |
2014 | 17,418,000 | ' | ' |
2015 | 377,000 | ' | ' |
2016 | 342,000 | ' | ' |
Outstanding letter of credit | 18,137,000 | ' | ' |
Commitments to Extend Credit [Member] | ' | ' | ' |
Outstanding letter of credit, maturity [Abstract] | ' | ' | ' |
Commitment to originate loans and commitments under unused lines of credit | $113,000,000 | $140,000,000 | ' |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Total Capital to risk-weighted assets [Abstract] | ' | ' |
Actual capital ratios, Amount | $181,952,000 | $162,458,000 |
Minimum for capital adequacy, Amount | 97,542,000 | 72,020,000 |
Minimum to be "Well Capitalized" under prompt corrective action provisions, Amount | 121,927,000 | 90,025,000 |
Total Capital to risk-weighted assets Ratios [Abstract] | ' | ' |
Actual capital ratios, Ratio (in hundredths) | 14.92% | 18.05% |
Minimum for capital adequacy, Ratio (in hundredths) | 8.00% | 8.00% |
Minimum to be "Well Capitalized" under prompt corrective action provisions, Ratio (in hundredths) | 10.00% | 10.00% |
Tier 1 Capital to risk-weighted assets [Abstract] | ' | ' |
Actual capital ratios, Amount | 166,683,000 | 151,121,000 |
Minimum for capital adequacy, Amount | 48,771,000 | 36,010,000 |
Minimum to be "Well Capitalized" under prompt corrective action provisions, Amount | 73,156,000 | 54,015,000 |
Tier 1 Capital to risk-weighted assets Ratio [Abstract] | ' | ' |
Actual capital ratios, ratio (in hundredths) | 13.67% | 16.79% |
Minimum for capital adequacy, Ratio (in hundredths) | 4.00% | 4.00% |
Minimum to be "Well Capitalized" under prompt corrective action provisions, Ratio (in hundredths) | 6.00% | 6.00% |
Tier 1 Capital to adjusted average assets (leverage) [Abstract] | ' | ' |
Actual capital ratios, Amount | 166,683,000 | 151,121,000 |
Minimum for capital adequacy, Amount | 68,454,000 | 62,092,000 |
Minimum to be "Well Capitalized" under prompt corrective action provisions, Amount | 85,567,000 | 77,615,000 |
Tier 1 Capital to adjusted average assets Ratios [Abstract] | ' | ' |
Actual capital ratios, ratio (in hundredths) | 9.74% | 9.74% |
Minimum for capital adequacy, Ratio (in hundredths) | 4.00% | 4.00% |
Minimum to be "Well Capitalized" under prompt corrective action provisions, Ratio (in hundredths) | 5.00% | 5.00% |
Tier 1 Leverage Capital ratio (in hundredths) | 9.74% | 9.74% |
Tier 1 Risk-based Capital Ratio (in hundredths) | 13.67% | 16.79% |
Total Risk-based Capital Ratio (in hundredths) | 14.92% | 18.05% |
Amount available for dividends | $10,900,000 | ' |
Parent Company [Member] | ' | ' |
Total Capital to risk-weighted assets Ratios [Abstract] | ' | ' |
Actual capital ratios, Ratio (in hundredths) | 15.02% | 18.15% |
Tier 1 Capital to risk-weighted assets Ratio [Abstract] | ' | ' |
Actual capital ratios, ratio (in hundredths) | 13.77% | 16.89% |
Tier 1 Capital to adjusted average assets Ratios [Abstract] | ' | ' |
Actual capital ratios, ratio (in hundredths) | 9.81% | 9.79% |
Tier 1 Leverage Capital ratio (in hundredths) | 9.81% | 9.79% |
Tier 1 Risk-based Capital Ratio (in hundredths) | 13.77% | 16.89% |
Total Risk-based Capital Ratio (in hundredths) | 15.02% | 18.15% |
CONCENTRATIONS_Details
CONCENTRATIONS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Investment Securities [Member] | Investment Securities [Member] | Loans [Member] | Loans [Member] | Commercial and Industrial [Member] | Commercial and Industrial [Member] | Commercial Real Estate [Member] | Commercial Real Estate [Member] | Multifamily [Member] | Multifamily [Member] | Real Estate Construction [Member] | Real Estate Construction [Member] | Residential Mortgages [Member] | Residential Mortgages [Member] | Home Equity [Member] | Home Equity [Member] | Consumer [Member] | Consumer [Member] | US Government Agency Securities [Member] | US Government Agency Securities [Member] | Corporate Bonds [Member] | Corporate Bonds [Member] | Collateralized Mortgage Obligations [Member] | Collateralized Mortgage Obligations [Member] | Mortgage-backed Securities [Member] | Mortgage-backed Securities [Member] | Obligations of States and Political Subdivisions [Member] | Obligations of States and Political Subdivisions [Member] | ||
Assets [Member] | Assets [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Loans [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | Investment Securities [Member] | |||||
Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | |||||||||||||||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Loans | $1,068,848 | $780,780 | ' | ' | $1,068,848 | ' | $171,199 | ' | $469,357 | ' | $184,624 | ' | $6,565 | ' | $169,552 | ' | $57,112 | ' | $10,439 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage (in hundredths) | ' | ' | 100.00% | 24.30% | 100.00% | 63.00% | 16.00% | 10.10% | 43.90% | 27.60% | 17.30% | 10.90% | 0.60% | 0.40% | 15.90% | 10.00% | 5.30% | 3.40% | 1.00% | 0.60% | 24.30% | 5.90% | 3.80% | 0.90% | 7.30% | 1.80% | 23.70% | 5.80% | 40.90% | 9.90% |
Investment Securities | $412,446 | $410,388 | $412,446 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,095 | ' | $15,651 | ' | $30,104 | ' | $97,767 | ' | $168,829 | ' |
FAIR_VALUE_Balance_Sheets_Grou
FAIR VALUE, Balance Sheets Grouping (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Carrying amounts and fair values of financial instruments [Abstract] | ' | ' | ||
Interest-bearing time deposits in other banks | $10,000 | $0 | ||
Investment securities available for sale | 400,780 | 402,353 | ||
Bank owned life insurance | 38,755 | 0 | ||
Percentage of derivative in net sale proceeds (in hundredths) | 12.00% | ' | ||
Carrying Amount [Member] | ' | ' | ||
Carrying amounts and fair values of financial instruments [Abstract] | ' | ' | ||
Federal Reserve Bank, Federal Home Loan Bank and other stock | 2,863 | 3,043 | ||
Carrying Amount [Member] | Level 1 [Member] | ' | ' | ||
Carrying amounts and fair values of financial instruments [Abstract] | ' | ' | ||
Cash and due from banks | 131,352 | 384,656 | ||
Carrying Amount [Member] | Level 2 [Member] | ' | ' | ||
Carrying amounts and fair values of financial instruments [Abstract] | ' | ' | ||
Cash equivalents | 1,000 | 1,150 | ||
Interest-bearing time deposits in other banks | 10,000 | 0 | ||
Investment securities held to maturity | 11,666 | 8,035 | ||
Investment securities available for sale | 400,780 | 402,353 | ||
Loans held-for-sale | 175 | 907 | ||
Accrued interest and loan fees receivable | 5,441 | 4,883 | ||
Non-maturity deposits | 1,284,982 | 1,187,383 | ||
Time deposits | 225,079 | 243,731 | ||
Accrued interest payable | 160 | 237 | ||
Carrying Amount [Member] | Level 2/3 [Member] | ' | ' | ||
Carrying amounts and fair values of financial instruments [Abstract] | ' | ' | ||
Loans, net of allowance | 1,051,585 | [1] | 762,999 | [1] |
Estimated Fair Value [Member] | Level 1 [Member] | ' | ' | ||
Carrying amounts and fair values of financial instruments [Abstract] | ' | ' | ||
Cash and due from banks | 131,352 | 384,656 | ||
Estimated Fair Value [Member] | Level 2 [Member] | ' | ' | ||
Carrying amounts and fair values of financial instruments [Abstract] | ' | ' | ||
Cash equivalents | 1,000 | 1,150 | ||
Interest-bearing time deposits in other banks | 10,000 | 0 | ||
Investment securities held to maturity | 12,234 | 8,861 | ||
Investment securities available for sale | 400,780 | 402,353 | ||
Loans held-for-sale | 175 | 907 | ||
Accrued interest and loan fees receivable | 5,441 | 4,883 | ||
Non-maturity deposits | 1,284,982 | 1,187,383 | ||
Time deposits | 225,946 | 245,595 | ||
Accrued interest payable | 160 | 237 | ||
Estimated Fair Value [Member] | Level 3 [Member] | ' | ' | ||
Carrying amounts and fair values of financial instruments [Abstract] | ' | ' | ||
Bank owned life insurance | 38,755 | 0 | ||
Estimated Fair Value [Member] | Level 2/3 [Member] | ' | ' | ||
Carrying amounts and fair values of financial instruments [Abstract] | ' | ' | ||
Loans, net of allowance | $1,056,279 | [1] | $787,597 | [1] |
[1] | Impaired loans are generally classified within Level 3 of the fair value hierarchy. |
FAIR_VALUE_Nonrecurring_Basis_
FAIR VALUE, Non-recurring Basis (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets measured at fair value on a non-recurring basis [Abstract] | ' | ' |
Impaired loans | $16,942 | $9,390 |
OREO | ' | 1,572 |
Total | 16,942 | 10,962 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets measured at fair value on a non-recurring basis [Abstract] | ' | ' |
Impaired loans | 16,942 | 9,390 |
OREO | ' | 1,572 |
Total | $16,942 | $10,962 |
FAIR_VALUE_Recurring_Basis_Det
FAIR VALUE, Recurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets [Abstract] | ' | ' |
Total | $400,780 | $402,353 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 403,118 | 405,116 |
Liabilities [Abstract] | ' | ' |
Derivatives | 932 | ' |
Total | 932 | ' |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | ' | 500 |
Fair Value, Measurements, Recurring [Member] | U.S. government agency securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 100,095 | 65,078 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 15,651 | 16,198 |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 30,104 | 89,692 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 97,767 | 62,450 |
Fair Value, Measurements, Recurring [Member] | Obligations of states and political subdivisions [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 157,163 | 168,435 |
Fair Value, Measurements, Recurring [Member] | Loans Held For Sale [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 175 | 907 |
Fair Value, Measurements, Recurring [Member] | Mortgage Servicing Rights [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 2,163 | 1,856 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 400,955 | 403,260 |
Liabilities [Abstract] | ' | ' |
Derivatives | 0 | ' |
Total | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Treasury Securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | ' | 500 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. government agency securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 100,095 | 65,078 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 15,651 | 16,198 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Collateralized mortgage obligations [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 30,104 | 89,692 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed Securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 97,767 | 62,450 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of states and political subdivisions [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 157,163 | 168,435 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Loans Held For Sale [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 175 | 907 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage Servicing Rights [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 2,163 | 1,856 |
Liabilities [Abstract] | ' | ' |
Derivatives | 932 | ' |
Total | 932 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Treasury Securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. government agency securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Collateralized mortgage obligations [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed Securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Obligations of states and political subdivisions [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Loans Held For Sale [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Total | $2,163 | $1,856 |
FAIR_VALUE_Reconciliations_for
FAIR VALUE, Reconciliations for Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Rollforward] | ' | ' | ' |
Beginning balance | $0 | $0 | $0 |
Transfers from level 2 | ' | ' | 0 |
Sales | ' | 0 | ' |
Net increases | 932 | 0 | 0 |
Ending balance | 932 | 0 | 0 |
Assets Collateralized Mortgage Obligations [Member] | ' | ' | ' |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Rollforward] | ' | ' | ' |
Beginning balance | 0 | 7,994 | 0 |
Transfers from level 2 | ' | ' | 7,994 |
Sales | ' | -7,994 | ' |
Net increases | 0 | 0 | 0 |
Ending balance | 0 | 0 | 7,994 |
Assets Mortgage Servicing Rights [Member] | ' | ' | ' |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Rollforward] | ' | ' | ' |
Beginning balance | 1,856 | 1,623 | 1,596 |
Transfers from level 2 | ' | ' | 0 |
Sales | ' | 0 | ' |
Net increases | 307 | 233 | 27 |
Ending balance | $2,163 | $1,856 | $1,623 |
SUFFOLK_BANCORP_PARENT_COMPANY2
SUFFOLK BANCORP (PARENT COMPANY ONLY) CONDENSED FINANCIAL STATEMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Assets | $4,007 | ' | ' | ' | $5,749 | ' | ' | ' | $4,007 | $5,749 | ' |
TOTAL ASSETS | 1,699,816 | ' | ' | ' | 1,622,464 | ' | ' | ' | 1,699,816 | 1,622,464 | ' |
Liabilities and Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Liabilities | 17,687 | ' | ' | ' | 14,896 | ' | ' | ' | 17,687 | 14,896 | ' |
Stockholders' Equity | 167,198 | ' | ' | ' | 163,985 | ' | ' | ' | 167,198 | 163,985 | 136,560 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | 1,699,816 | ' | ' | ' | 1,622,464 | ' | ' | ' | 1,699,816 | 1,622,464 | ' |
Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Expense | ' | ' | ' | ' | ' | ' | ' | ' | 6,304 | 9,699 | 9,162 |
Loss before equity in undistributed net income (loss) of the Bank | ' | ' | ' | ' | ' | ' | ' | ' | -16,440 | 2,462 | 4,301 |
Net income (loss) | 3,328 | 3,912 | 2,769 | 2,709 | 2,045 | -9,161 | 4,200 | 1,168 | 12,718 | -1,748 | -78 |
Total Comprehensive Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 2,543 | 4,208 | -919 |
Cash Flows From Operating Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 3,328 | 3,912 | 2,769 | 2,709 | 2,045 | -9,161 | 4,200 | 1,168 | 12,718 | -1,748 | -78 |
Net cash (used in) provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 25,606 | 23,293 | 28,112 |
Cash Flows From Investing Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash used in investing activities | ' | ' | ' | ' | ' | ' | ' | ' | -358,022 | 48,002 | 234,974 |
Cash Flows From Financing Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend reinvestment and stock option exercises | ' | ' | ' | ' | ' | ' | ' | ' | 91 | 0 | 0 |
Net cash provided by (used in) financing activities | ' | ' | ' | ' | ' | ' | ' | ' | 78,962 | 141,952 | -131,676 |
Net Increase (Decrease) in Cash and Cash Equivalents | ' | ' | ' | ' | ' | ' | ' | ' | -253,454 | 213,247 | 131,410 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | ' | ' | ' | 385,806 | ' | ' | ' | 172,559 | 385,806 | 172,559 | 41,149 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 132,352 | ' | ' | ' | 385,806 | ' | ' | ' | 132,352 | 385,806 | 172,559 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due from Banks | 605 | ' | ' | ' | 515 | ' | ' | ' | 605 | 515 | 405 |
Investment in the Bank | 165,924 | ' | ' | ' | 163,007 | ' | ' | ' | 165,924 | 163,007 | 135,941 |
Other Assets | 669 | ' | ' | ' | 463 | ' | ' | ' | 669 | 463 | 333 |
TOTAL ASSETS | 167,198 | ' | ' | ' | 163,985 | ' | ' | ' | 167,198 | 163,985 | 136,679 |
Liabilities and Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Liabilities | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 119 |
Stockholders' Equity | 167,198 | ' | ' | ' | 163,985 | ' | ' | ' | 167,198 | 163,985 | 136,560 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | 167,198 | ' | ' | ' | 163,985 | ' | ' | ' | 167,198 | 163,985 | 136,679 |
Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Expense | ' | ' | ' | ' | ' | ' | ' | ' | 372 | 358 | 362 |
Loss before equity in undistributed net income (loss) of the Bank | ' | ' | ' | ' | ' | ' | ' | ' | -372 | -358 | -362 |
Equity in undistributed earnings (loss) of the Bank | ' | ' | ' | ' | ' | ' | ' | ' | 13,090 | -1,390 | 284 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 12,718 | -1,748 | -78 |
Total Comprehensive Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 2,543 | 4,208 | -919 |
Cash Flows From Operating Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 12,718 | -1,748 | -78 |
Less: equity in undistributed (earnings) loss of the Bank | ' | ' | ' | ' | ' | ' | ' | ' | -13,090 | 1,390 | -284 |
Other - net | ' | ' | ' | ' | ' | ' | ' | ' | 371 | 209 | 1,504 |
Net cash (used in) provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -149 | 1,142 |
Cash Flows From Investing Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advances to the Bank | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -22,500 | -2,000 |
Net cash used in investing activities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -22,500 | -2,000 |
Cash Flows From Financing Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend reinvestment and stock option exercises | ' | ' | ' | ' | ' | ' | ' | ' | 91 | 0 | 659 |
Proceeds from issuance of capital stock | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 22,759 | 0 |
Dividends Paid | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -1,454 |
Net cash provided by (used in) financing activities | ' | ' | ' | ' | ' | ' | ' | ' | 91 | 22,759 | -795 |
Net Increase (Decrease) in Cash and Cash Equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 90 | 110 | -1,653 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | ' | ' | ' | 515 | ' | ' | ' | 405 | 515 | 405 | 2,058 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $605 | ' | ' | ' | $515 | ' | ' | ' | $605 | $515 | $405 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Interest income | $15,969,000 | $14,705,000 | $14,560,000 | $14,444,000 | $14,317,000 | $15,041,000 | $15,845,000 | $15,244,000 | $59,678,000 | $60,447,000 | $75,433,000 | ||||||||
Interest expense | 682,000 | 733,000 | 747,000 | 768,000 | 829,000 | 887,000 | 967,000 | 1,036,000 | 2,930,000 | 3,719,000 | 5,925,000 | ||||||||
Net interest income | 15,287,000 | 13,972,000 | 13,813,000 | 13,676,000 | 13,488,000 | 14,154,000 | 14,878,000 | 14,208,000 | 56,748,000 | 56,728,000 | 69,508,000 | ||||||||
Provision (credit) for loan losses (1) | 1,250,000 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | -1,100,000 | [1] | 12,000,000 | [1] | -2,400,000 | [1] | 0 | [1] | 1,250,000 | 8,500,000 | 24,888,000 |
Net interest income after provision (credit) for loan losses | 14,037,000 | 13,972,000 | 13,813,000 | 13,676,000 | 14,588,000 | 2,154,000 | 17,278,000 | 14,208,000 | 55,498,000 | 48,228,000 | 44,620,000 | ||||||||
Non-interest income | 7,139,000 | [2] | 6,587,000 | [2] | 2,464,000 | [2] | 3,317,000 | [2] | 4,344,000 | [2] | 1,881,000 | [2] | 2,401,000 | [2] | 2,255,000 | [2] | 19,507,000 | 10,881,000 | 10,121,000 |
Operating expenses | 16,982,000 | [3] | 15,090,000 | [3] | 12,692,000 | [3] | 13,801,000 | [3] | 15,656,000 | [3] | 17,171,000 | [3] | 14,139,000 | [3] | 14,605,000 | [3] | 58,565,000 | 61,571,000 | 59,042,000 |
Income tax expense (benefit) | 866,000 | 1,557,000 | 816,000 | 483,000 | 1,231,000 | -3,975,000 | 1,340,000 | 690,000 | 3,722,000 | -714,000 | -4,223,000 | ||||||||
NET INCOME (LOSS) | 3,328,000 | 3,912,000 | 2,769,000 | 2,709,000 | 2,045,000 | -9,161,000 | 4,200,000 | 1,168,000 | 12,718,000 | -1,748,000 | -78,000 | ||||||||
Basic per-share data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income (loss) (in dollars per share) | $0.29 | $0.34 | $0.24 | $0.23 | $0.18 | ($0.94) | $0.43 | $0.12 | $1.10 | ($0.17) | ($0.01) | ||||||||
Net income (loss) per common share - diluted | $0.29 | $0.34 | $0.24 | $0.23 | $0.18 | ($0.94) | $0.43 | $0.12 | $1.10 | ($0.17) | ($0.01) | ||||||||
Cash dividends (in dollars per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | ||||||||
Average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 11,570,731 | 10,248,751 | 9,720,827 | ||||||||
Impact of charge-offs | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | 33,946,000 | 14,597,000 | ||||||||
Sale of non-performing and classified loans | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Gain on Visa shares sold | 3,900,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | 7,766,000 | 0 | 0 | ||||||||
Branch consolidation costs | 1,600,000 | 460,000 | ' | ' | ' | ' | ' | ' | 2,074,000 | 0 | 0 | ||||||||
Reserve and carrying costs related to Visa shares sold | $515,000 | $474,000 | ' | ' | ' | ' | ' | ' | $989,000 | $0 | $0 | ||||||||
[1] | 4th quarter 2013 amount reflects the impact of a charge-off of $1.5 million related to the sale of $8 million in non-performing and classified loans. | ||||||||||||||||||
[2] | 4th quarter 2013 and 3rd quarter 2013 amounts include gains on Visa shares sold of $3.9 million and $3.8 million, respectively. | ||||||||||||||||||
[3] | 4th quarter 2013 and 3rd quarter 2013 amounts include branch consolidation costs of $1.6 million and $460 thousand, respectively. Also included are reserve and carrying costs related to Visa shares sold totaling $515 thousand and $474 thousand for the 4th and 3rd quarter 2013, respectively. |
LEGAL_PROCEEDINGS_Details
LEGAL PROCEEDINGS (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
LEGAL PROCEEDINGS [Abstract] | ' |
Fees and expenses incurred by the company insurer | $600,000 |
Payment made to escrow account for benefit of Class Members | $2,800,000 |
BRANCH_CONSOLIDATION_Details
BRANCH CONSOLIDATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Branch Consolidation [Line Items] | ' | ' | ' | ' | ' |
Branch consolidation costs | $1,600,000 | $460,000 | $2,074,000 | $0 | $0 |
Equipment expense | ' | ' | 2,410,000 | 2,024,000 | 1,940,000 |
Suffolk County [Member] | ' | ' | ' | ' | ' |
Branch Consolidation [Line Items] | ' | ' | ' | ' | ' |
Number of branches closed | ' | ' | 6 | ' | ' |
Estimated annual operating expenses reduced | ' | ' | 2,400,000 | ' | ' |
Middle Island and Water Mill [Member] | ' | ' | ' | ' | ' |
Branch Consolidation [Line Items] | ' | ' | ' | ' | ' |
Number of branches closed | ' | ' | 2 | ' | ' |
One time cost to close branches | ' | ' | 596,000 | ' | ' |
Accelerated depreciation | ' | ' | 136,000 | ' | ' |
Branch consolidation costs | ' | ' | 460,000 | ' | ' |
Occupancy expense | ' | ' | 84,000 | ' | ' |
Equipment expense | ' | ' | 52,000 | ' | ' |
Gain from offsetting one-time cost | ' | ' | 404,000 | ' | ' |
Mattituck, Port Jefferson Station, Manorville and Montauk Harbor [Member] | ' | ' | ' | ' | ' |
Branch Consolidation [Line Items] | ' | ' | ' | ' | ' |
Number of branches closed | ' | ' | 4 | ' | ' |
One time cost to close branches | ' | ' | 2,000,000 | ' | ' |
Accelerated depreciation | ' | ' | 371,000 | ' | ' |
Branch consolidation costs | ' | ' | 1,600,000 | ' | ' |
Occupancy expense | ' | ' | 192,000 | ' | ' |
Equipment expense | ' | ' | $179,000 | ' | ' |