Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 15, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SUFFOLK BANCORP | |
Entity Central Index Key | 754673 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,728,384 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents | ||
Cash and non-interest-bearing deposits due from banks | $46,886 | $41,140 |
Interest-bearing deposits due from banks | 12,138 | 13,376 |
Federal funds sold | 0 | 1,000 |
Total cash and cash equivalents | 59,024 | 55,516 |
Interest-bearing time deposits in other banks | 10,000 | 10,000 |
Federal Reserve Bank, Federal Home Loan Bank and other stock | 6,800 | 8,600 |
Investment securities: | ||
Available for sale, at fair value | 291,557 | 298,670 |
Held to maturity (fair value of $65,414 and $64,796, respectively) | 62,191 | 62,270 |
Total investment securities | 353,748 | 360,940 |
Loans | 1,382,160 | 1,355,427 |
Allowance for loan losses | 19,325 | 19,200 |
Net loans | 1,362,835 | 1,336,227 |
Loans held for sale | 2,836 | 26,495 |
Premises and equipment, net | 23,219 | 23,641 |
Bank owned life insurance | 45,418 | 45,109 |
Deferred taxes | 14,886 | 15,714 |
Accrued interest and loan fees receivable | 6,482 | 5,676 |
Goodwill and other intangibles | 3,043 | 2,991 |
Other assets | 3,666 | 4,374 |
TOTAL ASSETS | 1,891,957 | 1,895,283 |
LIABILITIES & STOCKHOLDERS' EQUITY | ||
Demand deposits | 682,593 | 683,634 |
Savings, N.O.W. and money market deposits | 685,891 | 653,667 |
Subtotal core deposits | 1,368,484 | 1,337,301 |
Time deposits | 223,188 | 218,759 |
Total deposits | 1,591,672 | 1,556,060 |
Borrowings | 90,000 | 130,000 |
Unfunded pension liability | 6,192 | 6,303 |
Capital leases | 4,483 | 4,511 |
Other liabilities | 12,050 | 15,676 |
TOTAL LIABILITIES | 1,704,397 | 1,712,550 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock (par value $2.50; 15,000,000 shares authorized; 13,891,390 shares and 13,836,508 shares issued at March 31, 2015 and December 31, 2014, respectively; 11,725,652 shares and 11,670,770 shares outstanding at March 31, 2015 and December 31, 2014, respectively) | 34,728 | 34,591 |
Surplus | 44,495 | 44,230 |
Retained earnings | 119,478 | 116,169 |
Treasury stock at par (2,165,738 shares) | -5,414 | -5,414 |
Accumulated other comprehensive loss, net of tax | -5,727 | -6,843 |
TOTAL STOCKHOLDERS' EQUITY | 187,560 | 182,733 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,891,957 | $1,895,283 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Investment securities: | ||
Held to maturity, fair value | $65,414 | $64,796 |
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) | 13,891,390 | 13,836,508 |
Common Stock, shares outstanding (in shares) | 11,725,652 | 11,670,770 |
Treasury Stock, shares (in shares) | 2,165,738 | 2,165,738 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
INTEREST INCOME | ||
Loans and loan fees | $14,569 | $12,877 |
U.S. Government agency obligations | 541 | 628 |
Obligations of states and political subdivisions | 1,335 | 1,505 |
Collateralized mortgage obligations | 182 | 250 |
Mortgage-backed securities | 445 | 501 |
Corporate bonds | 38 | 90 |
Federal funds sold and interest-bearing deposits due from banks | 23 | 46 |
Dividends | 60 | 38 |
Total interest income | 17,193 | 15,935 |
INTEREST EXPENSE | ||
Saving, N.O.W. and money market deposits | 274 | 292 |
Time deposits | 294 | 345 |
Borrowings | 108 | 0 |
Total interest expense | 676 | 637 |
Net interest income | 16,517 | 15,298 |
Provision for loan losses | 250 | 250 |
Net interest income after provision for loan losses | 16,267 | 15,048 |
NON-INTEREST INCOME | ||
Service charges on deposit accounts | 747 | 1,003 |
Other service charges, commissions and fees | 593 | 679 |
Fiduciary fees | 0 | 279 |
Net gain on sale of securities available for sale | 26 | 0 |
Net gain on sale of portfolio loans | 198 | 0 |
Net gain on sale of mortgage loans originated for sale | 144 | 93 |
Net gain on sale of premises and equipment | 0 | 642 |
Income from bank owned life insurance | 309 | 354 |
Other operating income | 74 | 42 |
Total non-interest income | 2,091 | 3,092 |
OPERATING EXPENSES | ||
Employee compensation and benefits | 8,606 | 8,861 |
Occupancy expense | 1,462 | 1,435 |
Equipment expense | 385 | 449 |
Consulting and professional services | 338 | 551 |
FDIC assessment | 290 | 267 |
Data processing | 570 | 573 |
Branch consolidation costs (credits) | 0 | -170 |
Other operating expenses | 1,457 | 1,343 |
Total operating expenses | 13,108 | 13,309 |
Income before income tax expense | 5,250 | 4,831 |
Income tax expense | 1,241 | 1,111 |
NET INCOME | $4,009 | $3,720 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per shares) | $0.34 | $0.32 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per shares) | $0.34 | $0.32 |
WEIGHTED AVERAGE COMMON SHARES - BASIC (in shares) | 11,694,427 | 11,573,014 |
WEIGHTED AVERAGE COMMON SHARES - DILUTED (in shares) | 11,763,099 | 11,631,462 |
CASH DIVIDENDS DECLARED PER COMMON SHARE | $0.06 | $0 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ||
Net income | $4,009 | $3,720 |
Other comprehensive income, net of tax and reclassification adjustments: | ||
Change in unrealized gain on securities available for sale arising during the period, net of tax of $703 and $2,681, respectively | 1,075 | 4,700 |
Change in unrealized gain (loss) on securities transferred from available for sale to held to maturity, net of tax of $27 and ($920), respectively | 41 | -1,612 |
Total other comprehensive income, net of tax | 1,116 | 3,088 |
Total comprehensive income | $5,125 | $6,808 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ||
Change in unrealized gain (loss) on securities available for sale, tax | $703 | $2,681 |
Change in unrealized loss on securities transferred, tax | $27 | ($920) |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (USD $) | Common stock [Member] | Surplus [Member] | Retained earnings [Member] | Treasury stock [Member] | Accumulated other comprehensive loss, net of tax [Member] | Total |
In Thousands | ||||||
Balance at Dec. 31, 2013 | $34,348 | $43,280 | $102,273 | ($5,414) | ($7,289) | |
Net income | 3,720 | 3,720 | ||||
Dividend reinvestment | 0 | 0 | ||||
Stock options exercised | 0 | 0 | ||||
Stock-based compensation | 0 | 165 | ||||
Other comprehensive income | 3,088 | 6,808 | ||||
Cash dividend on common stock ($0.06 per share in 2015) | 0 | |||||
Balance at Mar. 31, 2014 | 34,348 | 43,445 | 105,993 | -5,414 | -4,201 | 174,171 |
Balance at Dec. 31, 2014 | 34,591 | 44,230 | 116,169 | -5,414 | -6,843 | 182,733 |
Net income | 4,009 | 4,009 | ||||
Dividend reinvestment | 18 | 143 | ||||
Stock options exercised | 3 | 16 | ||||
Stock-based compensation | 116 | 106 | ||||
Other comprehensive income | 1,116 | 5,125 | ||||
Cash dividend on common stock ($0.06 per share in 2015) | -700 | |||||
Balance at Mar. 31, 2015 | $34,728 | $44,495 | $119,478 | ($5,414) | ($5,727) | $187,560 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) [Abstract] | |
Cash dividend on common stock (in dollars per share) | $0.06 |
Dividend reinvestment (in shares) | 7,295 |
Stock options exercised (in shares) | -1,000 |
Stock-based compensation (in shares) | 46,587 |
CONDENSED_CONSOLIDATED_STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) [Abstract] | ||
NET INCOME | $4,009 | $3,720 |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||
Provision for loan losses | 250 | 250 |
Depreciation and Amortization | 565 | 604 |
Stock-based compensation | 222 | 165 |
Net amortization of premiums | 297 | 293 |
Originations of mortgage loans for sale | -9,314 | -4,061 |
Proceeds from sale of mortgage loans originated for sale | 9,281 | 4,139 |
Gain on sale of mortgage loans originated for sale | -144 | -93 |
Gain on sale of portfolio loans | -198 | 0 |
Increase in other intangibles | -52 | -16 |
Deferred tax expense (benefit) | 99 | -78 |
Increase in accrued interest and loan fees receivable | -806 | -881 |
Decrease in other assets | 708 | 372 |
Adjustment to unfunded pension liability | -111 | -91 |
Decrease in other liabilities | -3,626 | -4,230 |
Income from bank owned life insurance | -309 | -354 |
Gain on sale of premises and equipment | 0 | -642 |
Net gain on sale of securities available for sale | -26 | 0 |
Net cash provided by (used in) operating activities | 845 | -903 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Principal payments on investment securities | 1,413 | 3,854 |
Proceeds from sale of investment securities - available for sale | 531 | 0 |
Maturities of investment securities - available for sale | 6,705 | 6,040 |
Maturities of investment securities - held to maturity | 117 | 315 |
Purchases of investment securities - held to maturity | 0 | -2,834 |
Decrease in Federal Reserve Bank, Federal Home Loan Bank and other stock | 1,800 | 0 |
Proceeds from sale of portfolio loans | 23,986 | 0 |
Loan originations - net | -26,810 | -60,746 |
Proceeds from sale of premises and equipment | 0 | 900 |
Increase in bank owned life insurance | 0 | -5,000 |
Purchases of premises and equipment - net | -143 | -124 |
Net cash provided by (used in) investing activities | 7,599 | -57,595 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposit accounts | 35,612 | 13,373 |
Net increase in borrowings | -40,000 | 0 |
Proceeds from stock options exercised | 19 | 0 |
Cash dividends paid on common stock | -700 | 0 |
Proceeds from shares issued under the dividend reinvestment plan | 161 | 0 |
Decrease in capital lease payable | -28 | -24 |
Net cash (used in) provided by financing activities | -4,936 | 13,349 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,508 | -45,149 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 55,516 | 132,352 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 59,024 | 87,203 |
SUPPLEMENTAL DATA: | ||
Interest paid | 681 | 637 |
Income taxes paid | 340 | 329 |
Investment securities transferred from available for sale to held to maturity | $0 | $31,286 |
FINANCIAL_STATEMENT_PRESENTATI
FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Suffolk Bancorp (the “Company”) was incorporated in 1985 as a bank holding company. The Company currently owns all of the outstanding capital stock of Suffolk County National Bank (the “Bank”). The Bank was organized under the national banking laws of the United States in 1890. The Bank formed Suffolk Greenway, Inc. (the “REIT”), a real estate investment trust, 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. The unaudited interim condensed consolidated financial statements include the accounts of the Company and the Bank and its subsidiaries. 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 and subsidiaries on a consolidated basis. | |||||||||
In the opinion of the Company’s management, the preceding unaudited interim condensed consolidated financial statements contain all adjustments, consisting of normal accruals, necessary for a fair presentation of its condensed consolidated statement of condition as of March 31, 2015, its condensed consolidated statements of income for the three months ended March 31, 2015 and 2014, its condensed consolidated statements of comprehensive income for the three months ended March 31, 2015 and 2014, its condensed consolidated statements of changes in stockholders’ equity for the three months ended March 31, 2015 and 2014 and its condensed consolidated statements of cash flows for the three months ended March 31, 2015 and 2014. | |||||||||
The preceding unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, as well as in accordance with predominant practices within the banking industry. They do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. 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 results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results of operations to be expected for the remainder of the year. For further information, please refer to the audited consolidated financial statements and footnotes thereto included in the Company’s 2014 Annual Report on Form 10-K. | |||||||||
Earnings Per Share - Basic earnings per share is computed based on the weighted average number of common shares and unvested restricted shares outstanding for each period. The Company’s unvested restricted shares are considered participating securities as they contain rights to non-forfeitable dividends and thus they are included in the basic earnings per share computation. Diluted earnings per share include the dilutive effect of additional potential common shares issuable under stock options. In the event a net loss is reported, restricted shares and stock options are excluded from earnings per share computations. | |||||||||
The reconciliation of basic and diluted weighted average number of common shares outstanding for the three months ended March 31, 2015 and 2014 follows. | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Weighted average common shares outstanding | 11,602,924 | 11,573,014 | |||||||
Weighted average unvested restricted shares | 91,503 | - | |||||||
Weighted average shares for basic earnings per share | 11,694,427 | 11,573,014 | |||||||
Additional diluted shares: | |||||||||
Stock options | 68,672 | 58,448 | |||||||
Weighted average shares for diluted earnings per share | 11,763,099 | 11,631,462 | |||||||
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 may 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 troubled debt restructurings (“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 quarterly 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. 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. These classes are commercial and industrial, commercial real estate, multifamily, mixed use commercial, real estate construction, residential mortgages, home equity and consumer loans. | |||||||||
The allowance for loan losses consists of specific and general components, as well as an unallocated component. 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 or liquidation of collateral. Impaired loans that are collateral dependent are reviewed based on the fair market value of 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. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | |||||||||
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. | |||||||||
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 income. | |||||||||
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 consolidated statements of condition 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.) | |||||||||
Recent Accounting Guidance – In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20), “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). This ASU eliminates from U.S. GAAP the concept of extraordinary items. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary (even if they ultimately would conclude it is not). This also alleviates uncertainty for preparers, auditors, and regulators because auditors and regulators no longer will need to evaluate whether a preparer treated an unusual and/or infrequent item appropriately. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Management intends to adopt ASU 2015-01 on January 1, 2016 and does not believe that the adoption will have a material effect on the Company’s consolidated financial statements. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), “Revenue from Contracts with Customers,” which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the ASU is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The ASU defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting the ASU recognized at the date of adoption (which includes additional footnote disclosures). The Company has not yet determined the method by which it will adopt ASU 2014-09 in 2017 and does not believe that the adoption will have a material effect on the Company’s consolidated financial statements. On April 2, 2015, the FASB decided to propose a one-year delay of the effective date for the new revenue recognition standard. If the proposal is finalized, the revenue recognition standard would take effect in 2018 for calendar year-end public entities. The proposal is expected to be released soon with a 30 day comment period. | |||||||||
In January 2014, the FASB issued 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. The Company’s adoption of ASU 2014-04 on January 1, 2015 did not have a material effect on the Company’s consolidated financial statements. | |||||||||
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") | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 three months ended March 31, 2015 and 2014 follow (in thousands). | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Unrealized Gains and | Unrealized Losses on | Pension and Post- | Total | ||||||||||||||
Losses on Available | Securities Transferred | Retirement Plan | |||||||||||||||
for Sale Securities | from Available for | Items | |||||||||||||||
Sale to Held to | |||||||||||||||||
Maturity | |||||||||||||||||
Beginning balance | $ | 2,637 | $ | (1,805 | ) | $ | (7,675 | ) | $ | (6,843 | ) | ||||||
Other comprehensive income before reclassifications | 1,091 | - | - | 1,091 | |||||||||||||
Amounts reclassified from AOCI | (16 | ) | 41 | - | 25 | ||||||||||||
Net other comprehensive income | 1,075 | 41 | - | 1,116 | |||||||||||||
Ending balance | $ | 3,712 | $ | (1,764 | ) | $ | (7,675 | ) | $ | (5,727 | ) | ||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Unrealized Gains and | Unrealized Losses on | Pension and Post- | Total | ||||||||||||||
Losses on Available | Securities Transferred | Retirement Plan | |||||||||||||||
for Sale Securities | from Available for | Items | |||||||||||||||
Sale to Held to | |||||||||||||||||
Maturity | |||||||||||||||||
Beginning balance | $ | (4,095 | ) | $ | - | $ | (3,194 | ) | $ | (7,289 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 4,700 | (1,633 | ) | - | 3,067 | ||||||||||||
Amounts reclassified from AOCI | - | 21 | - | 21 | |||||||||||||
Net other comprehensive income (loss) | 4,700 | (1,612 | ) | - | 3,088 | ||||||||||||
Ending balance | $ | 605 | $ | (1,612 | ) | $ | (3,194 | ) | $ | (4,201 | ) | ||||||
The table below presents reclassifications out of AOCI for the three months ended March 31, 2015 and 2014 (in thousands). | |||||||||||||||||
Amount Reclassified from AOCI | |||||||||||||||||
Three Months Ended March 31, | Affected Line Item in the Statement | ||||||||||||||||
Details about AOCI Components | 2015 | 2014 | Where Net Income is Presented | ||||||||||||||
Unrealized gains and losses on available for sale securities | $ | 26 | $ | - | Net gain on sale of securities available for sale | ||||||||||||
Unrealized losses on securities transferred from available for sale to held to maturity | (68 | ) | (33 | ) | Interest income - U.S. Government agency obligations | ||||||||||||
17 | 12 | Income tax expense | |||||||||||||||
Total reclassifications, net of tax | $ | (25 | ) | $ | (21 | ) |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | 3. INVESTMENT SECURITIES | ||||||||||||||||||||||||||||||||
At the time of purchase of a security, the Company designates the security as either available for sale or held to maturity, depending upon investment objectives, liquidity needs and intent. Securities held to maturity are stated at cost, adjusted for premium amortized or discount accreted, if any. The Company has the positive intent and ability to hold such securities to maturity. Securities available for sale are stated at estimated fair value. Unrealized gains and losses are excluded from income and reported net of tax in AOCI as a separate component of stockholders’ equity until realized. Changes in unrealized gains and losses are reported, net of tax, in the consolidated statements of comprehensive income. Interest earned on securities is included in interest income. Realized gains and losses on the sale of securities are reported in the consolidated statements of income and determined using the adjusted cost of the specific security sold. | |||||||||||||||||||||||||||||||||
During the full year of 2014, investment securities with a fair value of $48 million and unrealized loss of $3.2 million were transferred from available for sale to held to maturity. In accordance with U.S. GAAP, the securities were transferred at fair value, which became the amortized cost. The discount will be accreted to interest income over the remaining life of the security. The unrealized holding losses at the date of transfer remained in AOCI and will be amortized simultaneously against interest income. Those entries will offset or mitigate each other. | |||||||||||||||||||||||||||||||||
The amortized cost, fair value and gross unrealized gains and losses of the Company’s investment securities available for sale and held to maturity at March 31, 2015 and December 31, 2014 were as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||||||
U.S. Government agency securities | $ | 38,974 | $ | 8 | $ | (273 | ) | $ | 38,709 | $ | 42,474 | $ | - | $ | (897 | ) | $ | 41,577 | |||||||||||||||
Obligations of states and political subdivisions | 127,440 | 6,484 | - | 133,924 | 131,300 | 6,469 | - | 137,769 | |||||||||||||||||||||||||
Collateralized mortgage obligations | 21,470 | 273 | (352 | ) | 21,391 | 22,105 | 423 | (531 | ) | 21,997 | |||||||||||||||||||||||
Mortgage-backed securities | 91,211 | 388 | (515 | ) | 91,084 | 92,095 | 88 | (1,264 | ) | 90,919 | |||||||||||||||||||||||
Corporate bonds | 6,324 | 142 | (17 | ) | 6,449 | 6,336 | 90 | (18 | ) | 6,408 | |||||||||||||||||||||||
Total available for sale securities | 285,419 | 7,295 | (1,157 | ) | 291,557 | 294,310 | 7,070 | (2,710 | ) | 298,670 | |||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||
U.S. Government agency securities | 48,433 | 2,431 | - | 50,864 | 48,365 | 1,717 | - | 50,082 | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 13,758 | 792 | - | 14,550 | 13,905 | 809 | - | 14,714 | |||||||||||||||||||||||||
Total held to maturity securities | 62,191 | 3,223 | - | 65,414 | 62,270 | 2,526 | - | 64,796 | |||||||||||||||||||||||||
Total investment securities | $ | 347,610 | $ | 10,518 | $ | (1,157 | ) | $ | 356,971 | $ | 356,580 | $ | 9,596 | $ | (2,710 | ) | $ | 363,466 | |||||||||||||||
At March 31, 2015 and December 31, 2014, investment securities carried at $246 million and $245 million, respectively, were pledged for public funds on deposit and as collateral for the Company’s derivative swap contracts. | |||||||||||||||||||||||||||||||||
The amortized cost, contractual maturities and fair value of the Company’s investment securities at March 31, 2015 (in thousands) are presented in the table below. Collateralized mortgage obligations (“CMOs”) and mortgage-backed securities (“MBS”) assume maturity dates pursuant to average lives. | |||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 28,100 | $ | 28,595 | |||||||||||||||||||||||||||||
Due from one to five years | 143,494 | 147,769 | |||||||||||||||||||||||||||||||
Due from five to ten years | 113,825 | 115,193 | |||||||||||||||||||||||||||||||
Total securities available for sale | 285,419 | 291,557 | |||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | 1,630 | 1,644 | |||||||||||||||||||||||||||||||
Due from one to five years | 5,392 | 5,792 | |||||||||||||||||||||||||||||||
Due from five to ten years | 32,073 | 33,256 | |||||||||||||||||||||||||||||||
Due after ten years | 23,096 | 24,722 | |||||||||||||||||||||||||||||||
Total securities held to maturity | 62,191 | 65,414 | |||||||||||||||||||||||||||||||
Total investment securities | $ | 347,610 | $ | 356,971 | |||||||||||||||||||||||||||||
The proceeds from sales of securities available for sale and the associated realized gains and losses are shown below for the periods indicated (in thousands). Realized gains are also inclusive of gains on called securities. | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Proceeds | $ | 531 | $ | - | |||||||||||||||||||||||||||||
Gross realized gains | $ | 26 | $ | - | |||||||||||||||||||||||||||||
Gross realized losses | - | - | |||||||||||||||||||||||||||||||
Net realized gains | $ | 26 | $ | - | |||||||||||||||||||||||||||||
Information pertaining to securities with unrealized losses at March 31, 2015 and December 31, 2014, 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 | |||||||||||||||||||||||||||||||
31-Mar-15 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
U.S. Government agency securities | $ | 13,919 | $ | (60 | ) | $ | 19,787 | $ | (213 | ) | $ | 33,706 | $ | (273 | ) | ||||||||||||||||||
Collateralized mortgage obligations | - | - | 8,476 | (352 | ) | 8,476 | (352 | ) | |||||||||||||||||||||||||
Mortgage-backed securities | 20,712 | (115 | ) | 27,159 | (400 | ) | 47,871 | (515 | ) | ||||||||||||||||||||||||
Corporate bonds | - | - | 2,983 | (17 | ) | 2,983 | (17 | ) | |||||||||||||||||||||||||
Total | $ | 34,631 | $ | (175 | ) | $ | 58,405 | $ | (982 | ) | $ | 93,036 | $ | (1,157 | ) | ||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||
31-Dec-14 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
U.S. Government agency securities | $ | - | $ | - | $ | 41,577 | $ | (897 | ) | $ | 41,577 | $ | (897 | ) | |||||||||||||||||||
Collateralized mortgage obligations | - | - | 8,417 | (531 | ) | 8,417 | (531 | ) | |||||||||||||||||||||||||
Mortgage-backed securities | - | - | 81,510 | (1,264 | ) | 81,510 | (1,264 | ) | |||||||||||||||||||||||||
Corporate bonds | - | - | 2,982 | (18 | ) | 2,982 | (18 | ) | |||||||||||||||||||||||||
Total | $ | - | $ | - | $ | 134,486 | $ | (2,710 | ) | $ | 134,486 | $ | (2,710 | ) | |||||||||||||||||||
The corporate bonds with unrealized losses for twelve months or longer at March 31, 2015 in the table above carry investment grade ratings by all major credit rating agencies including both Moody’s and Standard & Poor’s. The unrealized losses on these bonds were a result of the current interest rate environment and the corresponding shape of the yield curve. The losses were not related to a deterioration of the quality of the issuer or any company-specific adverse events. All other securities with unrealized losses for twelve months or longer at March 31, 2015 are issued or guaranteed by U.S. Government agencies or sponsored enterprises and the related unrealized losses resulted solely from the current interest rate environment and the corresponding shape of the yield curve. The Company does not intend to sell and it is not more likely than not that the Company will be required to sell these securities prior to their recovery to a level equal to or greater than amortized cost. Management has determined that no other-than-temporary impairment (“OTTI”) was present at March 31, 2015. | |||||||||||||||||||||||||||||||||
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 conversion ratio 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. | |||||||||||||||||||||||||||||||||
During 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 income. 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 conversion ratio of Visa Class B shares into Visa Class A shares. | |||||||||||||||||||||||||||||||||
In the fourth quarter of 2014, the Bank received notification of a change in the conversion ratio of Visa Class B shares into Visa Class A shares and was required to make a payment of $180 thousand to the purchaser of the Visa Class B shares it sold in 2013. The Company’s recorded liability representing the fair value of the derivative was $752 thousand at March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||||||||
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 three months ended March 31, 2015 and 2014, $70 thousand and $59 thousand, respectively, in such carrying costs was expensed. The Company has pledged U.S. Government agency securities held in its available for sale portfolio, with a market value of approximately $3 million at March 31, 2015, as collateral for the derivative swap contracts. | |||||||||||||||||||||||||||||||||
Subjectivity has been used in estimating the fair value of both the derivative liability and the associated fees, but management believes that these fair value estimates are adequate based on available information. However, future developments in the litigation could require potentially significant changes to these estimates. | |||||||||||||||||||||||||||||||||
At March 31, 2015, the Company still owned 38,638 Visa Class B shares subsequent to the sales described here. 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 | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
LOANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||
LOANS | 4. LOANS | ||||||||||||||||||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, net loans disaggregated by class consisted of the following (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 178,812 | $ | 177,813 | |||||||||||||||||||||||||||||||||||||
Commercial real estate | 579,873 | 560,524 | |||||||||||||||||||||||||||||||||||||||
Multifamily | 322,229 | 309,666 | |||||||||||||||||||||||||||||||||||||||
Mixed use commercial | 35,333 | 34,806 | |||||||||||||||||||||||||||||||||||||||
Real estate construction | 24,608 | 26,206 | |||||||||||||||||||||||||||||||||||||||
Residential mortgages | 184,977 | 187,828 | |||||||||||||||||||||||||||||||||||||||
Home equity | 49,440 | 50,982 | |||||||||||||||||||||||||||||||||||||||
Consumer | 6,888 | 7,602 | |||||||||||||||||||||||||||||||||||||||
Gross loans | 1,382,160 | 1,355,427 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (19,325 | ) | (19,200 | ) | |||||||||||||||||||||||||||||||||||||
Net loans at end of period | $ | 1,362,835 | $ | 1,336,227 | |||||||||||||||||||||||||||||||||||||
The following summarizes the activity in the allowance for loan losses disaggregated by class for the periods indicated (in thousands). | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Balance at | Charge-offs | Recoveries | Provision | Balance at | Balance at | Charge-offs | Recoveries | (Credit) | Balance at | ||||||||||||||||||||||||||||||||
beginning of | (credit) for | end of | beginning of | provision | end of | ||||||||||||||||||||||||||||||||||||
period | loan losses | period | period | for loan | period | ||||||||||||||||||||||||||||||||||||
losses | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,560 | $ | (492 | ) | $ | 343 | $ | 587 | $ | 1,998 | $ | 2,615 | $ | (115 | ) | $ | 293 | $ | (312 | ) | $ | 2,481 | ||||||||||||||||||
Commercial real estate | 6,777 | - | 7 | 568 | 7,352 | 6,572 | - | 12 | 624 | 7,208 | |||||||||||||||||||||||||||||||
Multifamily | 4,018 | - | - | 449 | 4,467 | 2,159 | - | - | 481 | 2,640 | |||||||||||||||||||||||||||||||
Mixed use commercial | 261 | - | - | 12 | 273 | 54 | - | - | 33 | 87 | |||||||||||||||||||||||||||||||
Real estate construction | 383 | - | - | (23 | ) | 360 | 88 | - | - | 129 | 217 | ||||||||||||||||||||||||||||||
Residential mortgages | 3,027 | - | 11 | (420 | ) | 2,618 | 2,463 | - | 4 | 160 | 2,627 | ||||||||||||||||||||||||||||||
Home equity | 709 | - | 2 | 17 | 728 | 745 | - | 27 | (54 | ) | 718 | ||||||||||||||||||||||||||||||
Consumer | 166 | (1 | ) | 5 | (15 | ) | 155 | 241 | (2 | ) | 5 | (58 | ) | 186 | |||||||||||||||||||||||||||
Unallocated | 2,299 | - | - | (925 | ) | 1,374 | 2,326 | - | - | (753 | ) | 1,573 | |||||||||||||||||||||||||||||
Total | $ | 19,200 | $ | (493 | ) | $ | 368 | $ | 250 | $ | 19,325 | $ | 17,263 | $ | (117 | ) | $ | 341 | $ | 250 | $ | 17,737 | |||||||||||||||||||
Factors considered by management in determining loan 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. | |||||||||||||||||||||||||||||||||||||||||
The general component of the allowance covers non-impaired loans and is based on historical loss experience, adjusted for qualitative factors. 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. | |||||||||||||||||||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014 disaggregated by class and impairment methodology (in thousands). | |||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Loan Balances | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | Individually evaluated for impairment | Collectively evaluated for impairment | Ending balance | Individually evaluated for impairment | Collectively evaluated for impairment | Ending balance | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 10 | $ | 1,988 | $ | 1,998 | $ | 3,764 | $ | 175,048 | $ | 178,812 | |||||||||||||||||||||||||||||
Commercial real estate | - | 7,352 | 7,352 | 10,302 | 569,571 | 579,873 | |||||||||||||||||||||||||||||||||||
Multifamily | - | 4,467 | 4,467 | - | 322,229 | 322,229 | |||||||||||||||||||||||||||||||||||
Mixed use commercial | - | 273 | 273 | - | 35,333 | 35,333 | |||||||||||||||||||||||||||||||||||
Real estate construction | - | 360 | 360 | - | 24,608 | 24,608 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 771 | 1,847 | 2,618 | 5,651 | 179,326 | 184,977 | |||||||||||||||||||||||||||||||||||
Home equity | 159 | 569 | 728 | 1,670 | 47,770 | 49,440 | |||||||||||||||||||||||||||||||||||
Consumer | 88 | 67 | 155 | 398 | 6,490 | 6,888 | |||||||||||||||||||||||||||||||||||
Unallocated | - | 1,374 | 1,374 | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 1,028 | $ | 18,297 | $ | 19,325 | $ | 21,785 | $ | 1,360,375 | $ | 1,382,160 | |||||||||||||||||||||||||||||
Allowance for Loan Losses | Loan Balances | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Individually evaluated for impairment | Collectively evaluated for impairment | Ending balance | Individually evaluated for impairment | Collectively evaluated for impairment | Ending balance | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 16 | $ | 1,544 | $ | 1,560 | $ | 4,889 | $ | 172,924 | $ | 177,813 | |||||||||||||||||||||||||||||
Commercial real estate | - | 6,777 | 6,777 | 10,214 | 550,310 | 560,524 | |||||||||||||||||||||||||||||||||||
Multifamily | - | 4,018 | 4,018 | - | 309,666 | 309,666 | |||||||||||||||||||||||||||||||||||
Mixed use commercial | - | 261 | 261 | - | 34,806 | 34,806 | |||||||||||||||||||||||||||||||||||
Real estate construction | - | 383 | 383 | - | 26,206 | 26,206 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 809 | 2,218 | 3,027 | 5,422 | 182,406 | 187,828 | |||||||||||||||||||||||||||||||||||
Home equity | 92 | 617 | 709 | 1,567 | 49,415 | 50,982 | |||||||||||||||||||||||||||||||||||
Consumer | 88 | 78 | 166 | 323 | 7,279 | 7,602 | |||||||||||||||||||||||||||||||||||
Unallocated | - | 2,299 | 2,299 | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 1,005 | $ | 18,195 | $ | 19,200 | $ | 22,415 | $ | 1,333,012 | $ | 1,355,427 | |||||||||||||||||||||||||||||
The following table presents the Company’s impaired loans disaggregated by class at March 31, 2015 and December 31, 2014 (in thousands). | |||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Balance | Allowance Allocated | Unpaid Principal Balance | Recorded Balance | Allowance Allocated | ||||||||||||||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3,723 | $ | 3,723 | $ | - | $ | 4,833 | $ | 4,833 | $ | - | |||||||||||||||||||||||||||||
Commercial real estate | 10,721 | 10,302 | - | 10,632 | 10,214 | - | |||||||||||||||||||||||||||||||||||
Residential mortgages | 1,919 | 1,773 | - | 1,645 | 1,516 | - | |||||||||||||||||||||||||||||||||||
Home equity | 1,407 | 1,407 | - | 1,377 | 1,377 | - | |||||||||||||||||||||||||||||||||||
Consumer | 214 | 214 | - | 137 | 137 | - | |||||||||||||||||||||||||||||||||||
Subtotal | 17,984 | 17,419 | - | 18,624 | 18,077 | - | |||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 42 | 41 | 10 | 57 | 56 | 16 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 3,877 | 3,878 | 771 | 3,906 | 3,906 | 809 | |||||||||||||||||||||||||||||||||||
Home equity | 400 | 263 | 159 | 326 | 190 | 92 | |||||||||||||||||||||||||||||||||||
Consumer | 182 | 184 | 88 | 185 | 186 | 88 | |||||||||||||||||||||||||||||||||||
Subtotal | 4,501 | 4,366 | 1,028 | 4,474 | 4,338 | 1,005 | |||||||||||||||||||||||||||||||||||
Total | $ | 22,485 | $ | 21,785 | $ | 1,028 | $ | 23,098 | $ | 22,415 | $ | 1,005 | |||||||||||||||||||||||||||||
The following table presents the Company’s average recorded investment in impaired loans and the related interest income recognized disaggregated by class for the three months ended March 31, 2015 and 2014 (in thousands). No interest income was recognized on a cash basis on impaired loans for any of the periods presented. The interest income recognized on accruing impaired loans is shown in the following table. | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||
Average recorded | Interest income | Average recorded | Interest income | ||||||||||||||||||||||||||||||||||||||
investment in | recognized on | investment in | recognized on | ||||||||||||||||||||||||||||||||||||||
impaired loans | impaired loans | impaired loans | impaired loans | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 4,551 | $ | 33 | $ | 7,567 | $ | 107 | |||||||||||||||||||||||||||||||||
Commercial real estate | 10,208 | 50 | 11,558 | 99 | |||||||||||||||||||||||||||||||||||||
Residential mortgages | 5,411 | 38 | 5,036 | 36 | |||||||||||||||||||||||||||||||||||||
Home equity | 1,662 | 13 | 771 | 17 | |||||||||||||||||||||||||||||||||||||
Consumer | 383 | 3 | 170 | 2 | |||||||||||||||||||||||||||||||||||||
Total | $ | 22,215 | $ | 137 | $ | 25,102 | $ | 261 | |||||||||||||||||||||||||||||||||
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 $745 thousand and $790 thousand of specific reserves to customers whose loan terms have been modified as TDRs as of March 31, 2015 and December 31, 2014, 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 $45 thousand and $100 thousand were committed to be advanced in connection with TDRs as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014 are as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
TDRs Outstanding | Number of Loans | Outstanding Recorded Balance | Number of Loans | Outstanding Recorded Balance | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 30 | $ | 2,721 | 31 | $ | 3,683 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 8 | 10,057 | 8 | 10,179 | |||||||||||||||||||||||||||||||||||||
Residential mortgages | 21 | 4,478 | 19 | 4,314 | |||||||||||||||||||||||||||||||||||||
Home equity | 5 | 1,208 | 5 | 1,216 | |||||||||||||||||||||||||||||||||||||
Consumer | 7 | 277 | 7 | 281 | |||||||||||||||||||||||||||||||||||||
Total | 71 | $ | 18,741 | 70 | $ | 19,673 | |||||||||||||||||||||||||||||||||||
The following presents, disaggregated by class, information regarding TDRs executed during the three months ended March 31, 2015 and 2014 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||
New TDRs | Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||
of | Outstanding | Outstanding | of | Outstanding | Outstanding | ||||||||||||||||||||||||||||||||||||
Loans | Recorded | Recorded | Loans | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||
Balance | Balance | Balance | Balance | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | $ | 12 | $ | 12 | 3 | $ | 377 | $ | 377 | |||||||||||||||||||||||||||||||
Residential mortgages | 2 | 194 | 199 | - | - | - | |||||||||||||||||||||||||||||||||||
Total | 3 | $ | 206 | $ | 211 | 3 | $ | 377 | $ | 377 | |||||||||||||||||||||||||||||||
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 three months ended March 31, 2015 and 2014 (dollars in thousands). | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||
Defaulted TDRs | Number | Outstanding | Number | Outstanding | |||||||||||||||||||||||||||||||||||||
of Loans | Recorded | of Loans | Recorded | ||||||||||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | - | $ | - | 2 | $ | 1,596 | |||||||||||||||||||||||||||||||||||
Total | - | $ | - | 2 | $ | 1,596 | |||||||||||||||||||||||||||||||||||
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 table presents a summary of non-performing assets for each period (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 12,292 | $ | 12,981 | |||||||||||||||||||||||||||||||||||||
Non-accrual loans held for sale | - | - | |||||||||||||||||||||||||||||||||||||||
Loans 90 days past due and still accruing | - | - | |||||||||||||||||||||||||||||||||||||||
OREO | - | - | |||||||||||||||||||||||||||||||||||||||
Total non-performing assets | $ | 12,292 | $ | 12,981 | |||||||||||||||||||||||||||||||||||||
TDRs accruing interest | $ | 9,418 | $ | 9,380 | |||||||||||||||||||||||||||||||||||||
TDRs non-accruing | $ | 9,323 | $ | 10,293 | |||||||||||||||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, non-accrual loans disaggregated by class were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | % of | Total Loans | % of Total Loans | Non-accrual loans | % of | Total Loans | % of Total Loans | ||||||||||||||||||||||||||||||||||
Total | Total | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3,035 | 24.7 | % | $ | 178,812 | 0.2 | % | $ | 4,060 | 31.3 | % | $ | 177,813 | 0.3 | % | |||||||||||||||||||||||||
Commercial real estate | 6,647 | 54.1 | 579,873 | 0.5 | 6,556 | 50.5 | 560,524 | 0.5 | |||||||||||||||||||||||||||||||||
Multifamily | - | - | 322,229 | - | - | - | 309,666 | - | |||||||||||||||||||||||||||||||||
Mixed use commercial | - | - | 35,333 | - | - | - | 34,806 | - | |||||||||||||||||||||||||||||||||
Real estate construction | - | - | 24,608 | - | - | - | 26,206 | - | |||||||||||||||||||||||||||||||||
Residential mortgages | 2,074 | 16.9 | 184,977 | 0.2 | 2,020 | 15.6 | 187,828 | 0.1 | |||||||||||||||||||||||||||||||||
Home equity | 414 | 3.3 | 49,440 | - | 303 | 2.3 | 50,982 | 0.1 | |||||||||||||||||||||||||||||||||
Consumer | 122 | 1 | 6,888 | - | 42 | 0.3 | 7,602 | - | |||||||||||||||||||||||||||||||||
Total | $ | 12,292 | 100 | % | $ | 1,382,160 | 0.9 | % | $ | 12,981 | 100 | % | $ | 1,355,427 | 1 | % | |||||||||||||||||||||||||
Additional interest income of approximately $180 thousand and $494 thousand would have been recorded during the three months ended March 31, 2015 and 2014, respectively, if non-accrual loans had performed in accordance with their original terms. | |||||||||||||||||||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, past due loans disaggregated by class were as follows (in thousands). | |||||||||||||||||||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 30 - 59 days | 60 - 89 days | 90 days and over | Total | Current | Total | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 8 | $ | 379 | $ | 3,035 | $ | 3,422 | $ | 175,390 | $ | 178,812 | |||||||||||||||||||||||||||||
Commercial real estate | - | - | 6,647 | 6,647 | 573,226 | 579,873 | |||||||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 322,229 | 322,229 | |||||||||||||||||||||||||||||||||||
Mixed use commercial | - | - | - | - | 35,333 | 35,333 | |||||||||||||||||||||||||||||||||||
Real estate construction | - | - | - | - | 24,608 | 24,608 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 505 | - | 2,074 | 2,579 | 182,398 | 184,977 | |||||||||||||||||||||||||||||||||||
Home equity | 199 | - | 414 | 613 | 48,827 | 49,440 | |||||||||||||||||||||||||||||||||||
Consumer | 10 | - | 122 | 132 | 6,756 | 6,888 | |||||||||||||||||||||||||||||||||||
Total | $ | 722 | $ | 379 | $ | 12,292 | $ | 13,393 | $ | 1,368,767 | $ | 1,382,160 | |||||||||||||||||||||||||||||
% of Total Loans | 0.1 | % | 0 | % | 0.9 | % | 1 | % | 99 | % | 100 | % | |||||||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 30 - 59 days | 60 - 89 days | 90 days and over | Total | Current | Total | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 52 | $ | 241 | $ | 4,060 | $ | 4,353 | $ | 173,460 | $ | 177,813 | |||||||||||||||||||||||||||||
Commercial real estate | - | - | 6,556 | 6,556 | 553,968 | 560,524 | |||||||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 309,666 | 309,666 | |||||||||||||||||||||||||||||||||||
Mixed use commercial | - | - | - | - | 34,806 | 34,806 | |||||||||||||||||||||||||||||||||||
Real estate construction | - | - | - | - | 26,206 | 26,206 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 822 | - | 2,020 | 2,842 | 184,986 | 187,828 | |||||||||||||||||||||||||||||||||||
Home equity | - | 112 | 303 | 415 | 50,567 | 50,982 | |||||||||||||||||||||||||||||||||||
Consumer | 59 | 77 | 42 | 178 | 7,424 | 7,602 | |||||||||||||||||||||||||||||||||||
Total | $ | 933 | $ | 430 | $ | 12,981 | $ | 14,344 | $ | 1,341,083 | $ | 1,355,427 | |||||||||||||||||||||||||||||
% of Total Loans | 0.1 | % | 0 | % | 1 | % | 1.1 | % | 98.9 | % | 100 | % | |||||||||||||||||||||||||||||
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 in this category possess potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. 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 loans greater than $500 thousand. Semi-annually, the Bank engages an independent third-party to review a significant portion of loans within the commercial and industrial, commercial real estate and real estate construction 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 March 31, 2015 and December 31, 2014 (in thousands). | |||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Grade | Grade | ||||||||||||||||||||||||||||||||||||||||
Pass | Special mention | Substandard | Total | Pass | Special mention | Substandard | Total | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 165,527 | $ | 3,543 | $ | 9,742 | $ | 178,812 | $ | 167,922 | $ | 1,225 | $ | 8,666 | $ | 177,813 | |||||||||||||||||||||||||
Commercial real estate | 553,861 | 15,395 | 10,617 | 579,873 | 536,536 | 9,182 | 14,806 | 560,524 | |||||||||||||||||||||||||||||||||
Multifamily | 322,229 | - | - | 322,229 | 309,666 | - | - | 309,666 | |||||||||||||||||||||||||||||||||
Mixed use commercial | 35,313 | - | 20 | 35,333 | 34,806 | - | - | 34,806 | |||||||||||||||||||||||||||||||||
Real estate construction | 24,608 | - | - | 24,608 | 26,206 | - | - | 26,206 | |||||||||||||||||||||||||||||||||
Residential mortgages | 181,809 | - | 3,168 | 184,977 | 183,263 | - | 4,565 | 187,828 | |||||||||||||||||||||||||||||||||
Home equity | 48,021 | - | 1,419 | 49,440 | 49,569 | - | 1,413 | 50,982 | |||||||||||||||||||||||||||||||||
Consumer | 6,766 | - | 122 | 6,888 | 7,279 | - | 323 | 7,602 | |||||||||||||||||||||||||||||||||
Total | $ | 1,338,134 | $ | 18,938 | $ | 25,088 | $ | 1,382,160 | $ | 1,315,247 | $ | 10,407 | $ | 29,773 | $ | 1,355,427 | |||||||||||||||||||||||||
% of Total | 96.8 | % | 1.4 | % | 1.8 | % | 100 | % | 97 | % | 0.8 | % | 2.2 | % | 100 | % |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 3 Months Ended |
Mar. 31, 2015 | |
EMPLOYEE BENEFITS [Abstract] | |
EMPLOYEE BENEFITS | 5. 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, the Company’s retirement plan was frozen such that no additional pension benefits would accumulate. For the three months ended March 31, 2015 and 2014, the Company’s net periodic pension credit was $111 thousand and $91 thousand, respectively. | |
In December 2014, the Company made an optional contribution of $1 million for the plan year ended September 30, 2015. No minimum contribution was required. The Company does not presently expect to contribute to its pension plan in 2015. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | |||||||||||||||||||||
STOCK-BASED COMPENSATION | 6. STOCK-BASED COMPENSATION | ||||||||||||||||||||
Stock Options | |||||||||||||||||||||
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. 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. | |||||||||||||||||||||
No options were granted in 2015 or 2014. 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. | |||||||||||||||||||||
The total intrinsic value of options exercised during the first three months of 2015 was $6 thousand. The total cash received from such option exercises was $19 thousand, excluding the tax benefit realized. In exercising those options, 1,000 shares of the Company’s common stock were issued. No stock options were exercised during the first three months of 2014. | |||||||||||||||||||||
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 March 31, 2015, there were 6,000 SARs outstanding related to options granted before 2011. The SARs had no intrinsic value at March 31, 2015. 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. | |||||||||||||||||||||
A summary of stock option activity follows: | |||||||||||||||||||||
Number | Weighted-Average | ||||||||||||||||||||
of Shares | Exercise Price | ||||||||||||||||||||
Per Share | |||||||||||||||||||||
Outstanding, January 1, 2015 | 251,100 | $ | 16.33 | ||||||||||||||||||
Granted | - | - | |||||||||||||||||||
Exercised | (1,000 | ) | $ | 18.18 | |||||||||||||||||
Forfeited or expired | (10,000 | ) | $ | 22.84 | |||||||||||||||||
Outstanding, March 31, 2015 | 240,100 | $ | 16.06 | ||||||||||||||||||
The following summarizes shares subject to purchase from stock options outstanding and exercisable as of March 31, 2015: | |||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||
Range of | Shares | Weighted-Average | Weighted-Average | Shares | Weighted-Average | Weighted-Average | |||||||||||||||
Exercise Prices | Remaining | Exercise Price | Remaining | Exercise Price | |||||||||||||||||
Contractual Life | Contractual Life | ||||||||||||||||||||
$ | 10.00 - $14.00 | 120,000 | 6.9 years | $ | 11.97 | 83,334 | 6.9 years | $ | 12.45 | ||||||||||||
$ | 14.01 - $20.00 | 98,100 | 8.3 years | $ | 17.47 | 42,438 | 8.2 years | $ | 16.73 | ||||||||||||
$ | 20.01 - $30.00 | 5,000 | 3.8 years | $ | 28.3 | 5,000 | 3.8 years | $ | 28.3 | ||||||||||||
$ | 30.01 - $40.00 | 17,000 | 1.8 years | $ | 33.12 | 17,000 | 1.8 years | $ | 33.12 | ||||||||||||
240,100 | 7.0 years | $ | 16.06 | 147,772 | 6.6 years | $ | 16.59 | ||||||||||||||
Restricted Stock Awards | |||||||||||||||||||||
Under the Company’s Amended and Restated 2009 Stock Incentive Plan (the “2009 Plan”), the Company can award options, SARs and restricted stock. During the first three months of 2015, the Company awarded 51,562 shares of restricted stock to certain key employees. Generally, the restricted stock awards currently outstanding vest over a three-year period commencing one year from the date of grant at a rate of one-third per year. A summary of restricted stock activity follows: | |||||||||||||||||||||
Number | Weighted-Average | ||||||||||||||||||||
of Shares | Grant-Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested, January 1, 2015 | 72,350 | $ | 22.51 | ||||||||||||||||||
Granted | 51,562 | $ | 22.76 | ||||||||||||||||||
Vested | - | - | |||||||||||||||||||
Forfeited or expired | (4,975 | ) | $ | 22.52 | |||||||||||||||||
Nonvested, March 31, 2015 | 118,937 | $ | 22.62 | ||||||||||||||||||
The Company recognizes compensation expense for the fair value of stock options and restricted stock on a straight line basis over the requisite service period of the grants. Compensation expense related to stock-based compensation amounted to $222 thousand and $165 thousand for the three months ended March 31, 2015 and 2014, respectively. The remaining unrecognized compensation cost of approximately $211 thousand and $2.1 million at March 31, 2015 related to stock options and restricted stock, respectively, will be expensed over the remaining weighted average vesting period of approximately 1.5 years and 2.4 years, respectively. | |||||||||||||||||||||
Under the 2009 Plan, a total of 500,000 shares of the Company’s common stock were reserved for issuance, of which 166,561 shares remain for possible issuance at March 31, 2015. There are no remaining shares reserved for issuance under the 1999 Stock Option Plan. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 7. INCOME TAXES |
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 (“DTAs”) (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carry back 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. At March 31, 2015 the Company had no remaining Federal net operating loss carryforwards and had net operating loss carryforwards of approximately $23.0 million for New York State (“NYS”) income tax purposes, which may be applied against future taxable income. The Company has a full valuation allowance of $1.0 million, tax effected, on the NYS net operating loss carryforward due to the Company’s significant tax-exempt investment income. The valuation allowance may be reversed to income in future periods to the extent that the related DTAs are realized or when the Company returns to consistent, taxable earnings in NYS. The NYS unused net operating loss carryforwards are expected to expire in varying amounts through the year 2032. | |
The Company recorded income tax expense of $1.2 million in the first quarter of 2015 resulting in an effective tax rate of 23.6% versus an income tax expense of $1.1 million and an effective tax rate of 23.0% in the comparable period a year ago. On March 31, 2014, the Governor of NYS signed legislation which includes major reforms to the state’s corporate income tax system. In addition, the new budget law simplifies the code by setting forth a single apportionment factor. The corporate tax rate will be lowered from 7.1% to 6.5% in 2016. Furthermore, for community banks (all banks and thrifts with $8 billion or less in assets) there is a subtraction modification for a portion of interest earned on all residential and small business loans with a principal amount of up to $5 million made to New York borrowers. All banks in this category that had a REIT on April 1, 2014, and in the applicable tax year would instead get a deduction based on their REIT's dividends paid deduction. The Company had a qualifying REIT on April 1, 2014 and has less than $8 billion in assets. If a change in a tax law or rate occurs, any existing deferred tax liability or asset must be adjusted. The effect is reflected in operations in the period of the enactment of the change in the tax law or rate. As such, the Company made an adjustment to increase its DTAs resulting in a net income tax benefit of $462 thousand in the first quarter of 2014. Offsetting the net income tax benefit was a $454 thousand income tax expense related to an adjustment of the Company’s stock based compensation included in the DTA, primarily for stock options that had expired or been forfeited by former employees. The adjustment relates primarily to prior periods, but management has determined that it is not material, and as such, included it in the 2014 first quarter’s results. | |
The Company had unrecognized tax benefits of approximately $34 thousand for all periods presented. There is no accrued interest relating to uncertain tax positions as of March 31, 2015. | |
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 beginning with the tax year 2013. New York State returns are subject to audits beginning with the 2011 tax year. It is not anticipated that the unrecognized tax benefits will significantly change over the next 12 months. |
REGULATORY_MATTERS
REGULATORY MATTERS | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | |||||||||||||||||||||||||
REGULATORY MATTERS | 8. 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, tier 1 and common equity 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 March 31, 2015, that the Company and the Bank met all such capital adequacy requirements to which it is subject. | |||||||||||||||||||||||||
In July 2013, the Office of the Comptroller of the Currency (“OCC”) approved new rules on regulatory capital applicable to national banks, implementing Basel III. Most banking organizations were 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 Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). The Company’s implementation of the new rules on January 1, 2015 did not have a material impact on our capital needs. | |||||||||||||||||||||||||
The Bank’s capital amounts (in thousands) and ratios are as follows: | |||||||||||||||||||||||||
Actual capital ratios | Minimum | Minimum to be Well | |||||||||||||||||||||||
for capital | Capitalized under prompt corrective action provisions | ||||||||||||||||||||||||
adequacy | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | $ | 209,314 | 13.63 | % | $ | 122,866 | 8 | % | $ | 153,582 | 10 | % | |||||||||||||
Tier 1 capital to risk-weighted assets | 190,111 | 12.38 | % | 92,149 | 6 | % | 122,866 | 8 | % | ||||||||||||||||
Common equity tier 1 capital to risk-weighted assets | 190,111 | 12.38 | % | 69,112 | 4.5 | % | 99,829 | 6.5 | % | ||||||||||||||||
Tier 1 capital to adjusted average assets (leverage) | 190,111 | 10.02 | % | 75,915 | 4 | % | 94,894 | 5 | % | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | $ | 201,476 | 13.25 | % | $ | 121,608 | 8 | % | $ | 152,010 | 10 | % | |||||||||||||
Tier 1 capital to risk-weighted assets | 182,469 | 12 | % | 60,804 | 4 | % | 91,206 | 6 | % | ||||||||||||||||
Tier 1 capital to adjusted average assets (leverage) | 182,469 | 9.96 | % | 73,312 | 4 | % | 91,640 | 5 | % | ||||||||||||||||
The Company’s tier 1 leverage, common equity tier 1 risk-based, tier 1 risk-based and total risk-based capital ratios were 10.13%, 12.52%, 12.52% and 13.77%, respectively, at March 31, 2015. The Company’s tier 1 leverage, tier 1 risk-based and total risk-based capital ratios were 10.04%, 12.10% and 13.35%, respectively, at December 31, 2014. | |||||||||||||||||||||||||
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. |
FAIR_VALUE
FAIR VALUE | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
FAIR VALUE [Abstract] | |||||||||||||||||||||
FAIR VALUE | 9. 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. | |||||||||||||||||||||
The following table presents the carrying amounts and fair values of the Company’s financial instruments (in thousands). | |||||||||||||||||||||
Level in | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | |||||||||||||||||
Hierarchy | Amount | Value | Amount | Value | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and due from banks | Level 1 | $ | 59,024 | $ | 59,024 | $ | 54,516 | $ | 54,516 | ||||||||||||
Federal funds sold | Level 2 | - | - | 1,000 | 1,000 | ||||||||||||||||
Interest-bearing time deposits in other banks | Level 2 | 10,000 | 10,009 | 10,000 | 10,017 | ||||||||||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock | N/A | 6,800 | N/A | 8,600 | N/A | ||||||||||||||||
Investment securities held to maturity | Level 2 | 62,191 | 65,414 | 62,270 | 64,796 | ||||||||||||||||
Investment securities available for sale | Level 2 | 291,557 | 291,557 | 298,670 | 298,670 | ||||||||||||||||
Loans held for sale | Level 2 | 2,836 | 2,836 | 26,495 | 26,495 | ||||||||||||||||
Loans, net of allowance | Level 2, 3 (1) | 1,362,835 | 1,364,305 | 1,336,227 | 1,329,041 | ||||||||||||||||
Accrued interest and loan fees receivable | Level 2 | 6,482 | 6,482 | 5,676 | 5,676 | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Non-maturity deposits | Level 2 | 1,368,484 | 1,368,484 | 1,337,301 | 1,337,301 | ||||||||||||||||
Time deposits | Level 2 | 223,188 | 223,570 | 218,759 | 219,089 | ||||||||||||||||
Borrowings | Level 2 | 90,000 | 90,003 | 130,000 | 130,004 | ||||||||||||||||
Accrued interest payable | Level 2 | 131 | 131 | 136 | 136 | ||||||||||||||||
Derivatives | Level 3 | 752 | 752 | 752 | 752 | ||||||||||||||||
-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. | |||||||||||||||||||||
For securities held to maturity and securities available for sale, the fair value equals quoted market price if available. If a quoted market price is not available, fair value is estimated using a quoted market price for similar securities. For cash and due from banks, federal funds sold, accrued interest and loan fees receivable, non-maturity deposits and accrued interest payable, the carrying amount is a reasonable estimate of fair value. Determining the fair value of Federal Reserve Bank, Federal Home Loan Bank and other stock is not practicable due to restrictions placed on its transferability. Interest-bearing time deposits in other banks, time deposits and borrowings 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. Assumptions regarding credit risk, cash flows, and discount rates are made using available market information and specific borrower information. | |||||||||||||||||||||
Loans identified as impaired are measured using one of three methods: the fair value of collateral less estimated costs to sell, the present value of expected future cash flows or the loan’s observable market price. Those measured using the fair value of collateral or the loan’s observable market price 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. | |||||||||||||||||||||
For the periods presented, loans held for sale were performing and carried at cost. The carrying cost is a reasonable estimate of fair value due to their short-term nature. | |||||||||||||||||||||
During 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. At March 31, 2015, the Company estimates a fair value for these derivatives at approximately 10% of the net 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.) | |||||||||||||||||||||
The fair value of commitments to extend credit is 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. | |||||||||||||||||||||
Assets measured at fair value on a non-recurring basis are as follows (in thousands): | |||||||||||||||||||||
Assets: | 31-Mar-15 | Fair Value | |||||||||||||||||||
Measurements Using | |||||||||||||||||||||
Significant Unobservable | |||||||||||||||||||||
Inputs (Level 3) | |||||||||||||||||||||
Impaired loans | $ | 3,338 | $ | 3,338 | |||||||||||||||||
Total | $ | 3,338 | $ | 3,338 | |||||||||||||||||
Assets: | 31-Dec-14 | Fair Value | |||||||||||||||||||
Measurements Using | |||||||||||||||||||||
Significant Unobservable | |||||||||||||||||||||
Inputs (Level 3) | |||||||||||||||||||||
Impaired loans | $ | 3,333 | $ | 3,333 | |||||||||||||||||
Total | $ | 3,333 | $ | 3,333 | |||||||||||||||||
The Company had no liabilities measured at fair value on a non-recurring basis at March 31, 2015 and December 31, 2014. | |||||||||||||||||||||
The following presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis (dollars in thousands): | |||||||||||||||||||||
Fair Value at | |||||||||||||||||||||
Assets: | March 31, | December 31, | Valuation | Unobservable | Discount | ||||||||||||||||
2015 | 2014 | Technique | Inputs | ||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial and industrial | $ | 31 | $ | 40 | Third party appraisal and/or internal evaluation | Discount to appraised value (1); estimated selling costs | 5.6% to 50% | ||||||||||||||
Residential mortgages | 3,107 | 3,097 | Third party appraisal | Discount to appraised value | 25% | ||||||||||||||||
Home equity | 104 | 98 | Third party appraisal | Discount to appraised value | 25% | ||||||||||||||||
Consumer | 96 | 98 | Third party appraisal | Discount to appraised value | 25% | ||||||||||||||||
Total | $ | 3,338 | $ | 3,333 | |||||||||||||||||
-1 | The Company also makes adjustments to the appraised value based upon evaluation of corporate assets, such as inventory and accounts receivable, and various other information, such as market conditions and other factors. Higher discounts may be applied to certain assets, such as inventory and accounts receivable. | ||||||||||||||||||||
The following presents fair value measurements on a recurring basis at March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Assets: | 31-Mar-15 | Significant Other | Significant | ||||||||||||||||||
Observable Inputs | Unobservable Inputs | ||||||||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||||||
U.S. Government agency securities | $ | 38,709 | $ | 38,709 | $ | - | |||||||||||||||
Obligations of states and political subdivisions | 133,924 | 133,924 | - | ||||||||||||||||||
Collateralized mortgage obligations | 21,391 | 21,391 | - | ||||||||||||||||||
Mortgage-backed securities | 91,084 | 91,084 | - | ||||||||||||||||||
Corporate bonds | 6,449 | 6,449 | - | ||||||||||||||||||
Total | $ | 291,557 | $ | 291,557 | $ | - | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives | 752 | $ | - | $ | 752 | ||||||||||||||||
Total | $ | 752 | $ | - | $ | 752 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Assets: | 31-Dec-14 | Significant Other | Significant | ||||||||||||||||||
Observable Inputs | Unobservable Inputs | ||||||||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||||||
U.S. Government agency securities | $ | 41,577 | $ | 41,577 | $ | - | |||||||||||||||
Obligations of states and political subdivisions | 137,769 | 137,769 | - | ||||||||||||||||||
Collateralized mortgage obligations | 21,997 | 21,997 | - | ||||||||||||||||||
Mortgage-backed securities | 90,919 | 90,919 | - | ||||||||||||||||||
Corporate bonds | 6,408 | 6,408 | - | ||||||||||||||||||
Total | $ | 298,670 | $ | 298,670 | $ | - | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives | 752 | $ | - | $ | 752 | ||||||||||||||||
Total | $ | 752 | $ | - | $ | 752 | |||||||||||||||
Reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) follow (in thousands). | |||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Liabilities | Liabilities | ||||||||||||||||||||
Derivatives | Derivatives | ||||||||||||||||||||
Balance, January 1 | $ | 752 | $ | 932 | |||||||||||||||||
Net change | - | - | |||||||||||||||||||
Balance, March 31 | $ | 752 | $ | 932 |
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 3 Months Ended |
Mar. 31, 2015 | |
LEGAL PROCEEDINGS [Abstract] | |
LEGAL PROCEEDINGS | 10. LEGAL PROCEEDINGS |
Certain lawsuits and claims arising in the ordinary course of business may be filed or pending against us or our affiliates from time to time. In accordance with applicable accounting guidance, we establish accruals for all lawsuits, claims and expected settlements when we believe it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. When a loss contingency is not both probable and estimable, we do not establish an accrual. Any such loss estimates are inherently uncertain, based on currently available information and are subject to management’s judgment and various assumptions. Due to the inherent subjectivity of these estimates and unpredictability of outcomes of legal proceedings, any amounts accrued may not represent the ultimate resolution of such matters. | |
To the extent we believe any potential loss relating to such lawsuits and claims may have a material impact on our liquidity, consolidated financial position, results of operations, and/or our business as a whole and is reasonably possible but not probable, we disclose information relating to any such potential loss, whether in excess of any established accruals or where there is no established accrual. We also disclose information relating to any material potential loss that is probable but not reasonably estimable. Where reasonably practicable, we will provide an estimate of loss or range of potential loss. No disclosures are generally made for any loss contingencies that are deemed to be remote. | |
Based upon information available to us and our review of lawsuits and claims filed or pending against us to date, we have not recognized a material accrual liability for these matters, nor do we currently expect it is reasonably possible that these matters will result in a material liability to the Company. However, the outcome of litigation and other legal and regulatory matters is inherently uncertain, and it is possible that one or more of such matters currently pending or threatened could have an unanticipated material adverse effect on our liquidity, consolidated financial position, results of operations, and/or our business as a whole, in the future. |
BORROWINGS
BORROWINGS | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
BORROWINGS [Abstract] | |||||||||||||
BORROWINGS | 11. BORROWINGS | ||||||||||||
The following summarizes borrowed funds at March 31, 2015 and December 31, 2014 (dollars in thousands): | |||||||||||||
31-Mar-15 | Federal Home Loan | Federal Funds | Total | ||||||||||
Bank Borrowings | Purchased | ||||||||||||
Daily average outstanding | $ | 124,111 | $ | - | $ | 124,111 | |||||||
Total interest cost | 108 | - | 108 | ||||||||||
Average interest rate paid | 0.35 | % | - | % | 0.35 | % | |||||||
Maximum amount outstanding at any month-end | $ | 155,000 | $ | - | $ | 155,000 | |||||||
March 31 balance | 90,000 | - | 90,000 | ||||||||||
Weighted-average interest rate on balances outstanding | 0.34 | % | - | % | 0.34 | % | |||||||
31-Dec-14 | Federal Home Loan | Federal Funds | Total | ||||||||||
Bank Borrowings | Purchased | ||||||||||||
Daily average outstanding | $ | 13,051 | $ | 8 | $ | 13,059 | |||||||
Total interest cost | 48 | - | 48 | ||||||||||
Average interest rate paid | 0.37 | % | 0.46 | % | 0.37 | % | |||||||
Maximum amount outstanding at any month-end | $ | 130,000 | $ | - | $ | 130,000 | |||||||
December 31 balance | 130,000 | - | 130,000 | ||||||||||
Weighted-average interest rate on balances outstanding | 0.32 | % | - | % | 0.32 | % | |||||||
Assets pledged as collateral to the Federal Home Loan Bank (“FHLB”) at March 31, 2015 and December 31, 2014 totaled $567 million and $505 million, respectively, consisting of eligible loans and investment securities as determined under FHLB borrowing guidelines. The Company had $90 million and $130 million in FHLB borrowings at March 31, 2015 and December 31, 2014, respectively. |
FINANCIAL_STATEMENT_PRESENTATI1
FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
Earnings-Per-Share | Earnings Per Share - Basic earnings per share is computed based on the weighted average number of common shares and unvested restricted shares outstanding for each period. The Company’s unvested restricted shares are considered participating securities as they contain rights to non-forfeitable dividends and thus they are included in the basic earnings per share computation. Diluted earnings per share include the dilutive effect of additional potential common shares issuable under stock options. In the event a net loss is reported, restricted shares and stock options are excluded from earnings per share computations. | ||||||||
The reconciliation of basic and diluted weighted average number of common shares outstanding for the three months ended March 31, 2015 and 2014 follows. | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Weighted average common shares outstanding | 11,602,924 | 11,573,014 | |||||||
Weighted average unvested restricted shares | 91,503 | - | |||||||
Weighted average shares for basic earnings per share | 11,694,427 | 11,573,014 | |||||||
Additional diluted shares: | |||||||||
Stock options | 68,672 | 58,448 | |||||||
Weighted average shares for diluted earnings per share | 11,763,099 | 11,631,462 | |||||||
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 may 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 troubled debt restructurings (“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 quarterly 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. 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. These classes are commercial and industrial, commercial real estate, multifamily, mixed use commercial, real estate construction, residential mortgages, home equity and consumer loans. | ||||||||
The allowance for loan losses consists of specific and general components, as well as an unallocated component. 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 or liquidation of collateral. Impaired loans that are collateral dependent are reviewed based on the fair market value of 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. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | |||||||||
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. | ||||||||
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 income. | ||||||||
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 consolidated statements of condition 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.) | ||||||||
Recent Accounting Guidance | Recent Accounting Guidance – In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20), “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). This ASU eliminates from U.S. GAAP the concept of extraordinary items. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary (even if they ultimately would conclude it is not). This also alleviates uncertainty for preparers, auditors, and regulators because auditors and regulators no longer will need to evaluate whether a preparer treated an unusual and/or infrequent item appropriately. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Management intends to adopt ASU 2015-01 on January 1, 2016 and does not believe that the adoption will have a material effect on the Company’s consolidated financial statements. | ||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), “Revenue from Contracts with Customers,” which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the ASU is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The ASU defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting the ASU recognized at the date of adoption (which includes additional footnote disclosures). The Company has not yet determined the method by which it will adopt ASU 2014-09 in 2017 and does not believe that the adoption will have a material effect on the Company’s consolidated financial statements. On April 2, 2015, the FASB decided to propose a one-year delay of the effective date for the new revenue recognition standard. If the proposal is finalized, the revenue recognition standard would take effect in 2018 for calendar year-end public entities. The proposal is expected to be released soon with a 30 day comment period. | |||||||||
In January 2014, the FASB issued 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. The Company’s adoption of ASU 2014-04 on January 1, 2015 did not have a material effect on the Company’s consolidated financial statements. | |||||||||
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. |
FINANCIAL_STATEMENT_PRESENTATI2
FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
Reconciliation of basic and diluted weighted average number of common shares outstanding | The reconciliation of basic and diluted weighted average number of common shares outstanding for the three months ended March 31, 2015 and 2014 follows. | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Weighted average common shares outstanding | 11,602,924 | 11,573,014 | |||||||
Weighted average unvested restricted shares | 91,503 | - | |||||||
Weighted average shares for basic earnings per share | 11,694,427 | 11,573,014 | |||||||
Additional diluted shares: | |||||||||
Stock options | 68,672 | 58,448 | |||||||
Weighted average shares for diluted earnings per share | 11,763,099 | 11,631,462 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 three months ended March 31, 2015 and 2014 follow (in thousands). | ||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Unrealized Gains and | Unrealized Losses on | Pension and Post- | Total | ||||||||||||||
Losses on Available | Securities Transferred | Retirement Plan | |||||||||||||||
for Sale Securities | from Available for | Items | |||||||||||||||
Sale to Held to | |||||||||||||||||
Maturity | |||||||||||||||||
Beginning balance | $ | 2,637 | $ | (1,805 | ) | $ | (7,675 | ) | $ | (6,843 | ) | ||||||
Other comprehensive income before reclassifications | 1,091 | - | - | 1,091 | |||||||||||||
Amounts reclassified from AOCI | (16 | ) | 41 | - | 25 | ||||||||||||
Net other comprehensive income | 1,075 | 41 | - | 1,116 | |||||||||||||
Ending balance | $ | 3,712 | $ | (1,764 | ) | $ | (7,675 | ) | $ | (5,727 | ) | ||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Unrealized Gains and | Unrealized Losses on | Pension and Post- | Total | ||||||||||||||
Losses on Available | Securities Transferred | Retirement Plan | |||||||||||||||
for Sale Securities | from Available for | Items | |||||||||||||||
Sale to Held to | |||||||||||||||||
Maturity | |||||||||||||||||
Beginning balance | $ | (4,095 | ) | $ | - | $ | (3,194 | ) | $ | (7,289 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 4,700 | (1,633 | ) | - | 3,067 | ||||||||||||
Amounts reclassified from AOCI | - | 21 | - | 21 | |||||||||||||
Net other comprehensive income (loss) | 4,700 | (1,612 | ) | - | 3,088 | ||||||||||||
Ending balance | $ | 605 | $ | (1,612 | ) | $ | (3,194 | ) | $ | (4,201 | ) | ||||||
Reclassifications out of AOCI | The table below presents reclassifications out of AOCI for the three months ended March 31, 2015 and 2014 (in thousands). | ||||||||||||||||
Amount Reclassified from AOCI | |||||||||||||||||
Three Months Ended March 31, | Affected Line Item in the Statement | ||||||||||||||||
Details about AOCI Components | 2015 | 2014 | Where Net Income is Presented | ||||||||||||||
Unrealized gains and losses on available for sale securities | $ | 26 | $ | - | Net gain on sale of securities available for sale | ||||||||||||
Unrealized losses on securities transferred from available for sale to held to maturity | (68 | ) | (33 | ) | Interest income - U.S. Government agency obligations | ||||||||||||
17 | 12 | Income tax expense | |||||||||||||||
Total reclassifications, net of tax | $ | (25 | ) | $ | (21 | ) |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
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, fair value and gross unrealized gains and losses of the Company’s investment securities available for sale and held to maturity at March 31, 2015 and December 31, 2014 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||||||
U.S. Government agency securities | $ | 38,974 | $ | 8 | $ | (273 | ) | $ | 38,709 | $ | 42,474 | $ | - | $ | (897 | ) | $ | 41,577 | |||||||||||||||
Obligations of states and political subdivisions | 127,440 | 6,484 | - | 133,924 | 131,300 | 6,469 | - | 137,769 | |||||||||||||||||||||||||
Collateralized mortgage obligations | 21,470 | 273 | (352 | ) | 21,391 | 22,105 | 423 | (531 | ) | 21,997 | |||||||||||||||||||||||
Mortgage-backed securities | 91,211 | 388 | (515 | ) | 91,084 | 92,095 | 88 | (1,264 | ) | 90,919 | |||||||||||||||||||||||
Corporate bonds | 6,324 | 142 | (17 | ) | 6,449 | 6,336 | 90 | (18 | ) | 6,408 | |||||||||||||||||||||||
Total available for sale securities | 285,419 | 7,295 | (1,157 | ) | 291,557 | 294,310 | 7,070 | (2,710 | ) | 298,670 | |||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||
U.S. Government agency securities | 48,433 | 2,431 | - | 50,864 | 48,365 | 1,717 | - | 50,082 | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 13,758 | 792 | - | 14,550 | 13,905 | 809 | - | 14,714 | |||||||||||||||||||||||||
Total held to maturity securities | 62,191 | 3,223 | - | 65,414 | 62,270 | 2,526 | - | 64,796 | |||||||||||||||||||||||||
Total investment securities | $ | 347,610 | $ | 10,518 | $ | (1,157 | ) | $ | 356,971 | $ | 356,580 | $ | 9,596 | $ | (2,710 | ) | $ | 363,466 | |||||||||||||||
Investment securities amortized cost, maturities, and approximate fair value | The amortized cost, contractual maturities and fair value of the Company’s investment securities at March 31, 2015 (in thousands) are presented in the table below. Collateralized mortgage obligations (“CMOs”) and mortgage-backed securities (“MBS”) assume maturity dates pursuant to average lives. | ||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 28,100 | $ | 28,595 | |||||||||||||||||||||||||||||
Due from one to five years | 143,494 | 147,769 | |||||||||||||||||||||||||||||||
Due from five to ten years | 113,825 | 115,193 | |||||||||||||||||||||||||||||||
Total securities available for sale | 285,419 | 291,557 | |||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | 1,630 | 1,644 | |||||||||||||||||||||||||||||||
Due from one to five years | 5,392 | 5,792 | |||||||||||||||||||||||||||||||
Due from five to ten years | 32,073 | 33,256 | |||||||||||||||||||||||||||||||
Due after ten years | 23,096 | 24,722 | |||||||||||||||||||||||||||||||
Total securities held to maturity | 62,191 | 65,414 | |||||||||||||||||||||||||||||||
Total investment securities | $ | 347,610 | $ | 356,971 | |||||||||||||||||||||||||||||
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 realized gains and losses are shown below for the periods indicated (in thousands). Realized gains are also inclusive of gains on called securities. | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Proceeds | $ | 531 | $ | - | |||||||||||||||||||||||||||||
Gross realized gains | $ | 26 | $ | - | |||||||||||||||||||||||||||||
Gross realized losses | - | - | |||||||||||||||||||||||||||||||
Net realized gains | $ | 26 | $ | - | |||||||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014, 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 | |||||||||||||||||||||||||||||||
31-Mar-15 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
U.S. Government agency securities | $ | 13,919 | $ | (60 | ) | $ | 19,787 | $ | (213 | ) | $ | 33,706 | $ | (273 | ) | ||||||||||||||||||
Collateralized mortgage obligations | - | - | 8,476 | (352 | ) | 8,476 | (352 | ) | |||||||||||||||||||||||||
Mortgage-backed securities | 20,712 | (115 | ) | 27,159 | (400 | ) | 47,871 | (515 | ) | ||||||||||||||||||||||||
Corporate bonds | - | - | 2,983 | (17 | ) | 2,983 | (17 | ) | |||||||||||||||||||||||||
Total | $ | 34,631 | $ | (175 | ) | $ | 58,405 | $ | (982 | ) | $ | 93,036 | $ | (1,157 | ) | ||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||
31-Dec-14 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
U.S. Government agency securities | $ | - | $ | - | $ | 41,577 | $ | (897 | ) | $ | 41,577 | $ | (897 | ) | |||||||||||||||||||
Collateralized mortgage obligations | - | - | 8,417 | (531 | ) | 8,417 | (531 | ) | |||||||||||||||||||||||||
Mortgage-backed securities | - | - | 81,510 | (1,264 | ) | 81,510 | (1,264 | ) | |||||||||||||||||||||||||
Corporate bonds | - | - | 2,982 | (18 | ) | 2,982 | (18 | ) | |||||||||||||||||||||||||
Total | $ | - | $ | - | $ | 134,486 | $ | (2,710 | ) | $ | 134,486 | $ | (2,710 | ) |
LOANS_Tables
LOANS (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
LOANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Categorizes total loans | At March 31, 2015 and December 31, 2014, net loans disaggregated by class consisted of the following (in thousands): | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 178,812 | $ | 177,813 | |||||||||||||||||||||||||||||||||||||
Commercial real estate | 579,873 | 560,524 | |||||||||||||||||||||||||||||||||||||||
Multifamily | 322,229 | 309,666 | |||||||||||||||||||||||||||||||||||||||
Mixed use commercial | 35,333 | 34,806 | |||||||||||||||||||||||||||||||||||||||
Real estate construction | 24,608 | 26,206 | |||||||||||||||||||||||||||||||||||||||
Residential mortgages | 184,977 | 187,828 | |||||||||||||||||||||||||||||||||||||||
Home equity | 49,440 | 50,982 | |||||||||||||||||||||||||||||||||||||||
Consumer | 6,888 | 7,602 | |||||||||||||||||||||||||||||||||||||||
Gross loans | 1,382,160 | 1,355,427 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (19,325 | ) | (19,200 | ) | |||||||||||||||||||||||||||||||||||||
Net loans at end of period | $ | 1,362,835 | $ | 1,336,227 | |||||||||||||||||||||||||||||||||||||
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). | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Balance at | Charge-offs | Recoveries | Provision | Balance at | Balance at | Charge-offs | Recoveries | (Credit) | Balance at | ||||||||||||||||||||||||||||||||
beginning of | (credit) for | end of | beginning of | provision | end of | ||||||||||||||||||||||||||||||||||||
period | loan losses | period | period | for loan | period | ||||||||||||||||||||||||||||||||||||
losses | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,560 | $ | (492 | ) | $ | 343 | $ | 587 | $ | 1,998 | $ | 2,615 | $ | (115 | ) | $ | 293 | $ | (312 | ) | $ | 2,481 | ||||||||||||||||||
Commercial real estate | 6,777 | - | 7 | 568 | 7,352 | 6,572 | - | 12 | 624 | 7,208 | |||||||||||||||||||||||||||||||
Multifamily | 4,018 | - | - | 449 | 4,467 | 2,159 | - | - | 481 | 2,640 | |||||||||||||||||||||||||||||||
Mixed use commercial | 261 | - | - | 12 | 273 | 54 | - | - | 33 | 87 | |||||||||||||||||||||||||||||||
Real estate construction | 383 | - | - | (23 | ) | 360 | 88 | - | - | 129 | 217 | ||||||||||||||||||||||||||||||
Residential mortgages | 3,027 | - | 11 | (420 | ) | 2,618 | 2,463 | - | 4 | 160 | 2,627 | ||||||||||||||||||||||||||||||
Home equity | 709 | - | 2 | 17 | 728 | 745 | - | 27 | (54 | ) | 718 | ||||||||||||||||||||||||||||||
Consumer | 166 | (1 | ) | 5 | (15 | ) | 155 | 241 | (2 | ) | 5 | (58 | ) | 186 | |||||||||||||||||||||||||||
Unallocated | 2,299 | - | - | (925 | ) | 1,374 | 2,326 | - | - | (753 | ) | 1,573 | |||||||||||||||||||||||||||||
Total | $ | 19,200 | $ | (493 | ) | $ | 368 | $ | 250 | $ | 19,325 | $ | 17,263 | $ | (117 | ) | $ | 341 | $ | 250 | $ | 17,737 | |||||||||||||||||||
Summary of changes in the allowance for loan losses | At March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014 disaggregated by class and impairment methodology (in thousands). | ||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Loan Balances | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | Individually evaluated for impairment | Collectively evaluated for impairment | Ending balance | Individually evaluated for impairment | Collectively evaluated for impairment | Ending balance | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 10 | $ | 1,988 | $ | 1,998 | $ | 3,764 | $ | 175,048 | $ | 178,812 | |||||||||||||||||||||||||||||
Commercial real estate | - | 7,352 | 7,352 | 10,302 | 569,571 | 579,873 | |||||||||||||||||||||||||||||||||||
Multifamily | - | 4,467 | 4,467 | - | 322,229 | 322,229 | |||||||||||||||||||||||||||||||||||
Mixed use commercial | - | 273 | 273 | - | 35,333 | 35,333 | |||||||||||||||||||||||||||||||||||
Real estate construction | - | 360 | 360 | - | 24,608 | 24,608 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 771 | 1,847 | 2,618 | 5,651 | 179,326 | 184,977 | |||||||||||||||||||||||||||||||||||
Home equity | 159 | 569 | 728 | 1,670 | 47,770 | 49,440 | |||||||||||||||||||||||||||||||||||
Consumer | 88 | 67 | 155 | 398 | 6,490 | 6,888 | |||||||||||||||||||||||||||||||||||
Unallocated | - | 1,374 | 1,374 | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 1,028 | $ | 18,297 | $ | 19,325 | $ | 21,785 | $ | 1,360,375 | $ | 1,382,160 | |||||||||||||||||||||||||||||
Allowance for Loan Losses | Loan Balances | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Individually evaluated for impairment | Collectively evaluated for impairment | Ending balance | Individually evaluated for impairment | Collectively evaluated for impairment | Ending balance | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 16 | $ | 1,544 | $ | 1,560 | $ | 4,889 | $ | 172,924 | $ | 177,813 | |||||||||||||||||||||||||||||
Commercial real estate | - | 6,777 | 6,777 | 10,214 | 550,310 | 560,524 | |||||||||||||||||||||||||||||||||||
Multifamily | - | 4,018 | 4,018 | - | 309,666 | 309,666 | |||||||||||||||||||||||||||||||||||
Mixed use commercial | - | 261 | 261 | - | 34,806 | 34,806 | |||||||||||||||||||||||||||||||||||
Real estate construction | - | 383 | 383 | - | 26,206 | 26,206 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 809 | 2,218 | 3,027 | 5,422 | 182,406 | 187,828 | |||||||||||||||||||||||||||||||||||
Home equity | 92 | 617 | 709 | 1,567 | 49,415 | 50,982 | |||||||||||||||||||||||||||||||||||
Consumer | 88 | 78 | 166 | 323 | 7,279 | 7,602 | |||||||||||||||||||||||||||||||||||
Unallocated | - | 2,299 | 2,299 | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 1,005 | $ | 18,195 | $ | 19,200 | $ | 22,415 | $ | 1,333,012 | $ | 1,355,427 | |||||||||||||||||||||||||||||
Summary of impaired loans | The following table presents the Company’s impaired loans disaggregated by class at March 31, 2015 and December 31, 2014 (in thousands). | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Balance | Allowance Allocated | Unpaid Principal Balance | Recorded Balance | Allowance Allocated | ||||||||||||||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3,723 | $ | 3,723 | $ | - | $ | 4,833 | $ | 4,833 | $ | - | |||||||||||||||||||||||||||||
Commercial real estate | 10,721 | 10,302 | - | 10,632 | 10,214 | - | |||||||||||||||||||||||||||||||||||
Residential mortgages | 1,919 | 1,773 | - | 1,645 | 1,516 | - | |||||||||||||||||||||||||||||||||||
Home equity | 1,407 | 1,407 | - | 1,377 | 1,377 | - | |||||||||||||||||||||||||||||||||||
Consumer | 214 | 214 | - | 137 | 137 | - | |||||||||||||||||||||||||||||||||||
Subtotal | 17,984 | 17,419 | - | 18,624 | 18,077 | - | |||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 42 | 41 | 10 | 57 | 56 | 16 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 3,877 | 3,878 | 771 | 3,906 | 3,906 | 809 | |||||||||||||||||||||||||||||||||||
Home equity | 400 | 263 | 159 | 326 | 190 | 92 | |||||||||||||||||||||||||||||||||||
Consumer | 182 | 184 | 88 | 185 | 186 | 88 | |||||||||||||||||||||||||||||||||||
Subtotal | 4,501 | 4,366 | 1,028 | 4,474 | 4,338 | 1,005 | |||||||||||||||||||||||||||||||||||
Total | $ | 22,485 | $ | 21,785 | $ | 1,028 | $ | 23,098 | $ | 22,415 | $ | 1,005 | |||||||||||||||||||||||||||||
The following table presents the Company’s average recorded investment in impaired loans and the related interest income recognized disaggregated by class for the three months ended March 31, 2015 and 2014 (in thousands). No interest income was recognized on a cash basis on impaired loans for any of the periods presented. The interest income recognized on accruing impaired loans is shown in the following table. | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||
Average recorded | Interest income | Average recorded | Interest income | ||||||||||||||||||||||||||||||||||||||
investment in | recognized on | investment in | recognized on | ||||||||||||||||||||||||||||||||||||||
impaired loans | impaired loans | impaired loans | impaired loans | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 4,551 | $ | 33 | $ | 7,567 | $ | 107 | |||||||||||||||||||||||||||||||||
Commercial real estate | 10,208 | 50 | 11,558 | 99 | |||||||||||||||||||||||||||||||||||||
Residential mortgages | 5,411 | 38 | 5,036 | 36 | |||||||||||||||||||||||||||||||||||||
Home equity | 1,662 | 13 | 771 | 17 | |||||||||||||||||||||||||||||||||||||
Consumer | 383 | 3 | 170 | 2 | |||||||||||||||||||||||||||||||||||||
Total | $ | 22,215 | $ | 137 | $ | 25,102 | $ | 261 | |||||||||||||||||||||||||||||||||
Troubled debt restructurings | Outstanding TDRs, disaggregated by class, at March 31, 2015 and December 31, 2014 are as follows (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
TDRs Outstanding | Number of Loans | Outstanding Recorded Balance | Number of Loans | Outstanding Recorded Balance | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 30 | $ | 2,721 | 31 | $ | 3,683 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 8 | 10,057 | 8 | 10,179 | |||||||||||||||||||||||||||||||||||||
Residential mortgages | 21 | 4,478 | 19 | 4,314 | |||||||||||||||||||||||||||||||||||||
Home equity | 5 | 1,208 | 5 | 1,216 | |||||||||||||||||||||||||||||||||||||
Consumer | 7 | 277 | 7 | 281 | |||||||||||||||||||||||||||||||||||||
Total | 71 | $ | 18,741 | 70 | $ | 19,673 | |||||||||||||||||||||||||||||||||||
The following presents, disaggregated by class, information regarding TDRs executed during the three months ended March 31, 2015 and 2014 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||
New TDRs | Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||
of | Outstanding | Outstanding | of | Outstanding | Outstanding | ||||||||||||||||||||||||||||||||||||
Loans | Recorded | Recorded | Loans | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||
Balance | Balance | Balance | Balance | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | $ | 12 | $ | 12 | 3 | $ | 377 | $ | 377 | |||||||||||||||||||||||||||||||
Residential mortgages | 2 | 194 | 199 | - | - | - | |||||||||||||||||||||||||||||||||||
Total | 3 | $ | 206 | $ | 211 | 3 | $ | 377 | $ | 377 | |||||||||||||||||||||||||||||||
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 three months ended March 31, 2015 and 2014 (dollars in thousands). | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||
Defaulted TDRs | Number | Outstanding | Number | Outstanding | |||||||||||||||||||||||||||||||||||||
of Loans | Recorded | of Loans | Recorded | ||||||||||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | - | $ | - | 2 | $ | 1,596 | |||||||||||||||||||||||||||||||||||
Total | - | $ | - | 2 | $ | 1,596 | |||||||||||||||||||||||||||||||||||
Summary of impaired and non-accrual loans | The following table presents a summary of non-performing assets for each period (in thousands): | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | $ | 12,292 | $ | 12,981 | |||||||||||||||||||||||||||||||||||||
Non-accrual loans held for sale | - | - | |||||||||||||||||||||||||||||||||||||||
Loans 90 days past due and still accruing | - | - | |||||||||||||||||||||||||||||||||||||||
OREO | - | - | |||||||||||||||||||||||||||||||||||||||
Total non-performing assets | $ | 12,292 | $ | 12,981 | |||||||||||||||||||||||||||||||||||||
TDRs accruing interest | $ | 9,418 | $ | 9,380 | |||||||||||||||||||||||||||||||||||||
TDRs non-accruing | $ | 9,323 | $ | 10,293 | |||||||||||||||||||||||||||||||||||||
Summarizes non-accrual loans by loan class | At March 31, 2015 and December 31, 2014, non-accrual loans disaggregated by class were as follows (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Non-accrual loans | % of | Total Loans | % of Total Loans | Non-accrual loans | % of | Total Loans | % of Total Loans | ||||||||||||||||||||||||||||||||||
Total | Total | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3,035 | 24.7 | % | $ | 178,812 | 0.2 | % | $ | 4,060 | 31.3 | % | $ | 177,813 | 0.3 | % | |||||||||||||||||||||||||
Commercial real estate | 6,647 | 54.1 | 579,873 | 0.5 | 6,556 | 50.5 | 560,524 | 0.5 | |||||||||||||||||||||||||||||||||
Multifamily | - | - | 322,229 | - | - | - | 309,666 | - | |||||||||||||||||||||||||||||||||
Mixed use commercial | - | - | 35,333 | - | - | - | 34,806 | - | |||||||||||||||||||||||||||||||||
Real estate construction | - | - | 24,608 | - | - | - | 26,206 | - | |||||||||||||||||||||||||||||||||
Residential mortgages | 2,074 | 16.9 | 184,977 | 0.2 | 2,020 | 15.6 | 187,828 | 0.1 | |||||||||||||||||||||||||||||||||
Home equity | 414 | 3.3 | 49,440 | - | 303 | 2.3 | 50,982 | 0.1 | |||||||||||||||||||||||||||||||||
Consumer | 122 | 1 | 6,888 | - | 42 | 0.3 | 7,602 | - | |||||||||||||||||||||||||||||||||
Total | $ | 12,292 | 100 | % | $ | 1,382,160 | 0.9 | % | $ | 12,981 | 100 | % | $ | 1,355,427 | 1 | % | |||||||||||||||||||||||||
Summary of current and past due loans | At March 31, 2015 and December 31, 2014, past due loans disaggregated by class were as follows (in thousands). | ||||||||||||||||||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 30 - 59 days | 60 - 89 days | 90 days and over | Total | Current | Total | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 8 | $ | 379 | $ | 3,035 | $ | 3,422 | $ | 175,390 | $ | 178,812 | |||||||||||||||||||||||||||||
Commercial real estate | - | - | 6,647 | 6,647 | 573,226 | 579,873 | |||||||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 322,229 | 322,229 | |||||||||||||||||||||||||||||||||||
Mixed use commercial | - | - | - | - | 35,333 | 35,333 | |||||||||||||||||||||||||||||||||||
Real estate construction | - | - | - | - | 24,608 | 24,608 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 505 | - | 2,074 | 2,579 | 182,398 | 184,977 | |||||||||||||||||||||||||||||||||||
Home equity | 199 | - | 414 | 613 | 48,827 | 49,440 | |||||||||||||||||||||||||||||||||||
Consumer | 10 | - | 122 | 132 | 6,756 | 6,888 | |||||||||||||||||||||||||||||||||||
Total | $ | 722 | $ | 379 | $ | 12,292 | $ | 13,393 | $ | 1,368,767 | $ | 1,382,160 | |||||||||||||||||||||||||||||
% of Total Loans | 0.1 | % | 0 | % | 0.9 | % | 1 | % | 99 | % | 100 | % | |||||||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 30 - 59 days | 60 - 89 days | 90 days and over | Total | Current | Total | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 52 | $ | 241 | $ | 4,060 | $ | 4,353 | $ | 173,460 | $ | 177,813 | |||||||||||||||||||||||||||||
Commercial real estate | - | - | 6,556 | 6,556 | 553,968 | 560,524 | |||||||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 309,666 | 309,666 | |||||||||||||||||||||||||||||||||||
Mixed use commercial | - | - | - | - | 34,806 | 34,806 | |||||||||||||||||||||||||||||||||||
Real estate construction | - | - | - | - | 26,206 | 26,206 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 822 | - | 2,020 | 2,842 | 184,986 | 187,828 | |||||||||||||||||||||||||||||||||||
Home equity | - | 112 | 303 | 415 | 50,567 | 50,982 | |||||||||||||||||||||||||||||||||||
Consumer | 59 | 77 | 42 | 178 | 7,424 | 7,602 | |||||||||||||||||||||||||||||||||||
Total | $ | 933 | $ | 430 | $ | 12,981 | $ | 14,344 | $ | 1,341,083 | $ | 1,355,427 | |||||||||||||||||||||||||||||
% of Total Loans | 0.1 | % | 0 | % | 1 | % | 1.1 | % | 98.9 | % | 100 | % | |||||||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014 (in thousands). | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Grade | Grade | ||||||||||||||||||||||||||||||||||||||||
Pass | Special mention | Substandard | Total | Pass | Special mention | Substandard | Total | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 165,527 | $ | 3,543 | $ | 9,742 | $ | 178,812 | $ | 167,922 | $ | 1,225 | $ | 8,666 | $ | 177,813 | |||||||||||||||||||||||||
Commercial real estate | 553,861 | 15,395 | 10,617 | 579,873 | 536,536 | 9,182 | 14,806 | 560,524 | |||||||||||||||||||||||||||||||||
Multifamily | 322,229 | - | - | 322,229 | 309,666 | - | - | 309,666 | |||||||||||||||||||||||||||||||||
Mixed use commercial | 35,313 | - | 20 | 35,333 | 34,806 | - | - | 34,806 | |||||||||||||||||||||||||||||||||
Real estate construction | 24,608 | - | - | 24,608 | 26,206 | - | - | 26,206 | |||||||||||||||||||||||||||||||||
Residential mortgages | 181,809 | - | 3,168 | 184,977 | 183,263 | - | 4,565 | 187,828 | |||||||||||||||||||||||||||||||||
Home equity | 48,021 | - | 1,419 | 49,440 | 49,569 | - | 1,413 | 50,982 | |||||||||||||||||||||||||||||||||
Consumer | 6,766 | - | 122 | 6,888 | 7,279 | - | 323 | 7,602 | |||||||||||||||||||||||||||||||||
Total | $ | 1,338,134 | $ | 18,938 | $ | 25,088 | $ | 1,382,160 | $ | 1,315,247 | $ | 10,407 | $ | 29,773 | $ | 1,355,427 | |||||||||||||||||||||||||
% of Total | 96.8 | % | 1.4 | % | 1.8 | % | 100 | % | 97 | % | 0.8 | % | 2.2 | % | 100 | % |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | |||||||||||||||||||||
Summary of stock option activity | A summary of stock option activity follows: | ||||||||||||||||||||
Number | Weighted-Average | ||||||||||||||||||||
of Shares | Exercise Price | ||||||||||||||||||||
Per Share | |||||||||||||||||||||
Outstanding, January 1, 2015 | 251,100 | $ | 16.33 | ||||||||||||||||||
Granted | - | - | |||||||||||||||||||
Exercised | (1,000 | ) | $ | 18.18 | |||||||||||||||||
Forfeited or expired | (10,000 | ) | $ | 22.84 | |||||||||||||||||
Outstanding, March 31, 2015 | 240,100 | $ | 16.06 | ||||||||||||||||||
Summary of options outstanding and exercisable | The following summarizes shares subject to purchase from stock options outstanding and exercisable as of March 31, 2015: | ||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||
Range of | Shares | Weighted-Average | Weighted-Average | Shares | Weighted-Average | Weighted-Average | |||||||||||||||
Exercise Prices | Remaining | Exercise Price | Remaining | Exercise Price | |||||||||||||||||
Contractual Life | Contractual Life | ||||||||||||||||||||
$ | 10.00 - $14.00 | 120,000 | 6.9 years | $ | 11.97 | 83,334 | 6.9 years | $ | 12.45 | ||||||||||||
$ | 14.01 - $20.00 | 98,100 | 8.3 years | $ | 17.47 | 42,438 | 8.2 years | $ | 16.73 | ||||||||||||
$ | 20.01 - $30.00 | 5,000 | 3.8 years | $ | 28.3 | 5,000 | 3.8 years | $ | 28.3 | ||||||||||||
$ | 30.01 - $40.00 | 17,000 | 1.8 years | $ | 33.12 | 17,000 | 1.8 years | $ | 33.12 | ||||||||||||
240,100 | 7.0 years | $ | 16.06 | 147,772 | 6.6 years | $ | 16.59 | ||||||||||||||
Summary of restricted stock activity | A summary of restricted stock activity follows: | ||||||||||||||||||||
Number | Weighted-Average | ||||||||||||||||||||
of Shares | Grant-Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested, January 1, 2015 | 72,350 | $ | 22.51 | ||||||||||||||||||
Granted | 51,562 | $ | 22.76 | ||||||||||||||||||
Vested | - | - | |||||||||||||||||||
Forfeited or expired | (4,975 | ) | $ | 22.52 | |||||||||||||||||
Nonvested, March 31, 2015 | 118,937 | $ | 22.62 |
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | |||||||||||||||||||||||||
The Bank's actual capital amounts and ratios | The Bank’s capital amounts (in thousands) and ratios are as follows: | ||||||||||||||||||||||||
Actual capital ratios | Minimum | Minimum to be Well | |||||||||||||||||||||||
for capital | Capitalized under prompt corrective action provisions | ||||||||||||||||||||||||
adequacy | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | $ | 209,314 | 13.63 | % | $ | 122,866 | 8 | % | $ | 153,582 | 10 | % | |||||||||||||
Tier 1 capital to risk-weighted assets | 190,111 | 12.38 | % | 92,149 | 6 | % | 122,866 | 8 | % | ||||||||||||||||
Common equity tier 1 capital to risk-weighted assets | 190,111 | 12.38 | % | 69,112 | 4.5 | % | 99,829 | 6.5 | % | ||||||||||||||||
Tier 1 capital to adjusted average assets (leverage) | 190,111 | 10.02 | % | 75,915 | 4 | % | 94,894 | 5 | % | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | $ | 201,476 | 13.25 | % | $ | 121,608 | 8 | % | $ | 152,010 | 10 | % | |||||||||||||
Tier 1 capital to risk-weighted assets | 182,469 | 12 | % | 60,804 | 4 | % | 91,206 | 6 | % | ||||||||||||||||
Tier 1 capital to adjusted average assets (leverage) | 182,469 | 9.96 | % | 73,312 | 4 | % | 91,640 | 5 | % |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
FAIR VALUE [Abstract] | |||||||||||||||||||||
Carrying amounts and fair values of financial instruments | The following table presents the carrying amounts and fair values of the Company’s financial instruments (in thousands). | ||||||||||||||||||||
Level in | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | |||||||||||||||||
Hierarchy | Amount | Value | Amount | Value | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and due from banks | Level 1 | $ | 59,024 | $ | 59,024 | $ | 54,516 | $ | 54,516 | ||||||||||||
Federal funds sold | Level 2 | - | - | 1,000 | 1,000 | ||||||||||||||||
Interest-bearing time deposits in other banks | Level 2 | 10,000 | 10,009 | 10,000 | 10,017 | ||||||||||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock | N/A | 6,800 | N/A | 8,600 | N/A | ||||||||||||||||
Investment securities held to maturity | Level 2 | 62,191 | 65,414 | 62,270 | 64,796 | ||||||||||||||||
Investment securities available for sale | Level 2 | 291,557 | 291,557 | 298,670 | 298,670 | ||||||||||||||||
Loans held for sale | Level 2 | 2,836 | 2,836 | 26,495 | 26,495 | ||||||||||||||||
Loans, net of allowance | Level 2, 3 (1) | 1,362,835 | 1,364,305 | 1,336,227 | 1,329,041 | ||||||||||||||||
Accrued interest and loan fees receivable | Level 2 | 6,482 | 6,482 | 5,676 | 5,676 | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Non-maturity deposits | Level 2 | 1,368,484 | 1,368,484 | 1,337,301 | 1,337,301 | ||||||||||||||||
Time deposits | Level 2 | 223,188 | 223,570 | 218,759 | 219,089 | ||||||||||||||||
Borrowings | Level 2 | 90,000 | 90,003 | 130,000 | 130,004 | ||||||||||||||||
Accrued interest payable | Level 2 | 131 | 131 | 136 | 136 | ||||||||||||||||
Derivatives | Level 3 | 752 | 752 | 752 | 752 | ||||||||||||||||
-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-Mar-15 | Fair Value | |||||||||||||||||||
Measurements Using | |||||||||||||||||||||
Significant Unobservable | |||||||||||||||||||||
Inputs (Level 3) | |||||||||||||||||||||
Impaired loans | $ | 3,338 | $ | 3,338 | |||||||||||||||||
Total | $ | 3,338 | $ | 3,338 | |||||||||||||||||
Assets: | 31-Dec-14 | Fair Value | |||||||||||||||||||
Measurements Using | |||||||||||||||||||||
Significant Unobservable | |||||||||||||||||||||
Inputs (Level 3) | |||||||||||||||||||||
Impaired loans | $ | 3,333 | $ | 3,333 | |||||||||||||||||
Total | $ | 3,333 | $ | 3,333 | |||||||||||||||||
Fair Value Inputs, Quantitative information | The following presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis (dollars in thousands): | ||||||||||||||||||||
Fair Value at | |||||||||||||||||||||
Assets: | March 31, | December 31, | Valuation | Unobservable | Discount | ||||||||||||||||
2015 | 2014 | Technique | Inputs | ||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial and industrial | $ | 31 | $ | 40 | Third party appraisal and/or internal evaluation | Discount to appraised value (1); estimated selling costs | 5.6% to 50% | ||||||||||||||
Residential mortgages | 3,107 | 3,097 | Third party appraisal | Discount to appraised value | 25% | ||||||||||||||||
Home equity | 104 | 98 | Third party appraisal | Discount to appraised value | 25% | ||||||||||||||||
Consumer | 96 | 98 | Third party appraisal | Discount to appraised value | 25% | ||||||||||||||||
Total | $ | 3,338 | $ | 3,333 | |||||||||||||||||
-1 | The Company also makes adjustments to the appraised value based upon evaluation of corporate assets, such as inventory and accounts receivable, and various other information, such as market conditions and other factors. Higher discounts may be applied to certain assets, such as inventory and accounts receivable. | ||||||||||||||||||||
Valuation of financial instruments measured at fair value on recurring basis | The following presents fair value measurements on a recurring basis at March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Assets: | 31-Mar-15 | Significant Other | Significant | ||||||||||||||||||
Observable Inputs | Unobservable Inputs | ||||||||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||||||
U.S. Government agency securities | $ | 38,709 | $ | 38,709 | $ | - | |||||||||||||||
Obligations of states and political subdivisions | 133,924 | 133,924 | - | ||||||||||||||||||
Collateralized mortgage obligations | 21,391 | 21,391 | - | ||||||||||||||||||
Mortgage-backed securities | 91,084 | 91,084 | - | ||||||||||||||||||
Corporate bonds | 6,449 | 6,449 | - | ||||||||||||||||||
Total | $ | 291,557 | $ | 291,557 | $ | - | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives | 752 | $ | - | $ | 752 | ||||||||||||||||
Total | $ | 752 | $ | - | $ | 752 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Assets: | 31-Dec-14 | Significant Other | Significant | ||||||||||||||||||
Observable Inputs | Unobservable Inputs | ||||||||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||||||
U.S. Government agency securities | $ | 41,577 | $ | 41,577 | $ | - | |||||||||||||||
Obligations of states and political subdivisions | 137,769 | 137,769 | - | ||||||||||||||||||
Collateralized mortgage obligations | 21,997 | 21,997 | - | ||||||||||||||||||
Mortgage-backed securities | 90,919 | 90,919 | - | ||||||||||||||||||
Corporate bonds | 6,408 | 6,408 | - | ||||||||||||||||||
Total | $ | 298,670 | $ | 298,670 | $ | - | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives | 752 | $ | - | $ | 752 | ||||||||||||||||
Total | $ | 752 | $ | - | $ | 752 | |||||||||||||||
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) follow (in thousands). | ||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Liabilities | Liabilities | ||||||||||||||||||||
Derivatives | Derivatives | ||||||||||||||||||||
Balance, January 1 | $ | 752 | $ | 932 | |||||||||||||||||
Net change | - | - | |||||||||||||||||||
Balance, March 31 | $ | 752 | $ | 932 |
BORROWINGS_Tables
BORROWINGS (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
BORROWINGS [Abstract] | |||||||||||||
Schedule of components of short- and long-term interest-bearing liabilities | The following summarizes borrowed funds at March 31, 2015 and December 31, 2014 (dollars in thousands): | ||||||||||||
31-Mar-15 | Federal Home Loan | Federal Funds | Total | ||||||||||
Bank Borrowings | Purchased | ||||||||||||
Daily average outstanding | $ | 124,111 | $ | - | $ | 124,111 | |||||||
Total interest cost | 108 | - | 108 | ||||||||||
Average interest rate paid | 0.35 | % | - | % | 0.35 | % | |||||||
Maximum amount outstanding at any month-end | $ | 155,000 | $ | - | $ | 155,000 | |||||||
March 31 balance | 90,000 | - | 90,000 | ||||||||||
Weighted-average interest rate on balances outstanding | 0.34 | % | - | % | 0.34 | % | |||||||
31-Dec-14 | Federal Home Loan | Federal Funds | Total | ||||||||||
Bank Borrowings | Purchased | ||||||||||||
Daily average outstanding | $ | 13,051 | $ | 8 | $ | 13,059 | |||||||
Total interest cost | 48 | - | 48 | ||||||||||
Average interest rate paid | 0.37 | % | 0.46 | % | 0.37 | % | |||||||
Maximum amount outstanding at any month-end | $ | 130,000 | $ | - | $ | 130,000 | |||||||
December 31 balance | 130,000 | - | 130,000 | ||||||||||
Weighted-average interest rate on balances outstanding | 0.32 | % | - | % | 0.32 | % |
FINANCIAL_STATEMENT_PRESENTATI3
FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Corporation | ||
Summary of Significant Accounting Policies [Abstract] | ||
Ownership percentage (in hundredths) | 100.00% | |
Number of corporation used to acquire foreclosed real estate | 2 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Weighted average common shares outstanding (in shares) | 11,602,924 | 11,573,014 |
Weighted average unvested restricted shares (in shares) | 91,503 | 0 |
Weighted average shares for basic earnings per share | 11,694,427 | 11,573,014 |
Additional diluted shares: | ||
Stock options (in shares) | 68,672 | 58,448 |
Weighted average shares for diluted earnings per share (in shares) | 11,763,099 | 11,631,462 |
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 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | ($6,843) | ($7,289) |
Other comprehensive income (loss) before reclassifications | 1,091 | 3,067 |
Amounts reclassified from AOCI | 25 | 21 |
Net other comprehensive income (loss) | 1,116 | 3,088 |
Ending balance | -5,727 | -4,201 |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net gain on sale of securities available for sale | 26 | 0 |
Interest income - U.S. Government agency obligations | -541 | -628 |
Income tax expense | 1,241 | 1,111 |
Net income | -4,009 | -3,720 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net gain on sale of securities available for sale | 26 | 0 |
Interest income - U.S. Government agency obligations | -68 | -33 |
Income tax expense | 17 | 12 |
Net income | -25 | -21 |
Unrealized Gains and Losses on Available for Sale Securities [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | 2,637 | -4,095 |
Other comprehensive income (loss) before reclassifications | 1,091 | 4,700 |
Amounts reclassified from AOCI | -16 | 0 |
Net other comprehensive income (loss) | 1,075 | 4,700 |
Ending balance | 3,712 | 605 |
Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | -1,805 | 0 |
Other comprehensive income (loss) before reclassifications | 0 | -1,633 |
Amounts reclassified from AOCI | 41 | 21 |
Net other comprehensive income (loss) | 41 | -1,612 |
Ending balance | -1,764 | -1,612 |
Pension and Post-Retirement Plan Items [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | -7,675 | -3,194 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Net other comprehensive income (loss) | 0 | 0 |
Ending balance | ($7,675) | ($3,194) |
INVESTMENT_SECURITIES_Amortize
INVESTMENT SECURITIES, Amortized Cost, Estimated Values and Gross Unrealized Gains and Losses (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
INVESTMENT SECURITIES [Abstract] | |||
Investment securities transferred from available for sale to held to maturity, fair value | $48,000,000 | ||
Investment securities transferred from available for sale to held to maturity, unrealized gain (loss) | 0 | 31,286,000 | 3,200,000 |
Available for sale [Abstract] | |||
Amortized Cost | 285,419,000 | 294,310,000 | |
Gross Unrealized Gains | 7,295,000 | 7,070,000 | |
Gross Unrealized Losses | -1,157,000 | -2,710,000 | |
Investment securities available for sale | 291,557,000 | 298,670,000 | |
Held to maturity [Abstract] | |||
Amortized Cost | 62,191,000 | 62,270,000 | |
Gross Unrealized Gains | 3,223,000 | 2,526,000 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 65,414,000 | 64,796,000 | |
Total investment securities [Abstract] | |||
Total investment securities, Amortized Cost | 347,610,000 | 356,580,000 | |
Total Gross Unrealized Gains | 10,518,000 | 9,596,000 | |
Total Gross Unrealized Losses | -1,157,000 | -2,710,000 | |
Total investment securities, Fair Value | 356,971,000 | 363,466,000 | |
Investment securities pledged | 246,000,000 | 245,000,000 | |
U.S. Government Agency Securities [Member] | |||
Held to maturity [Abstract] | |||
Amortized Cost | 48,433,000 | 48,365,000 | |
Gross Unrealized Gains | 2,431,000 | 1,717,000 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 50,864,000 | 50,082,000 | |
Obligations of States and Political Subdivisions [Member] | |||
Held to maturity [Abstract] | |||
Amortized Cost | 13,758,000 | 13,905,000 | |
Gross Unrealized Gains | 792,000 | 809,000 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 14,550,000 | 14,714,000 | |
U.S. Government Agency Securities [Member] | |||
Available for sale [Abstract] | |||
Amortized Cost | 38,974,000 | 42,474,000 | |
Gross Unrealized Gains | 8,000 | 0 | |
Gross Unrealized Losses | -273,000 | -897,000 | |
Investment securities available for sale | 38,709,000 | 41,577,000 | |
Obligations of States and Political Subdivisions [Member] | |||
Available for sale [Abstract] | |||
Amortized Cost | 127,440,000 | 131,300,000 | |
Gross Unrealized Gains | 6,484,000 | 6,469,000 | |
Gross Unrealized Losses | 0 | 0 | |
Investment securities available for sale | 133,924,000 | 137,769,000 | |
Collateralized Mortgage Obligations [Member] | |||
Available for sale [Abstract] | |||
Amortized Cost | 21,470,000 | 22,105,000 | |
Gross Unrealized Gains | 273,000 | 423,000 | |
Gross Unrealized Losses | -352,000 | -531,000 | |
Investment securities available for sale | 21,391,000 | 21,997,000 | |
Mortgage-Backed Securities [Member] | |||
Available for sale [Abstract] | |||
Amortized Cost | 91,211,000 | 92,095,000 | |
Gross Unrealized Gains | 388,000 | 88,000 | |
Gross Unrealized Losses | -515,000 | -1,264,000 | |
Investment securities available for sale | 91,084,000 | 90,919,000 | |
Corporate Bonds [Member] | |||
Available for sale [Abstract] | |||
Amortized Cost | 6,324,000 | 6,336,000 | |
Gross Unrealized Gains | 142,000 | 90,000 | |
Gross Unrealized Losses | -17,000 | -18,000 | |
Investment securities available for sale | $6,449,000 | $6,408,000 |
INVESTMENT_SECURITIES_Amortize1
INVESTMENT SECURITIES, Amortized Cost, Maturities and Approximate Fair Value (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Amortized Cost [Abstract] | ||
Due in one year or less | $28,100 | |
Due from one to five years | 143,494 | |
Due from five to ten years | 113,825 | |
Amortized Cost | 285,419 | 294,310 |
Fair Value [Abstract] | ||
Due in one year or less | 28,595 | |
Due from one to five years | 147,769 | |
Due from five to ten years | 115,193 | |
Total securities available for sale | 291,557 | 298,670 |
Amortized Cost [Abstract] | ||
Due in one year or less | 1,630 | |
Due from one to five years | 5,392 | |
Due from five to ten years | 32,073 | |
Due after ten years | 23,096 | |
Total securities held to maturity | 62,191 | |
Total investment securities, Amortized Cost | 347,610 | 356,580 |
Fair Value [Abstract] | ||
Due in one year or less | 1,644 | |
Due from one to five years | 5,792 | |
Due from five to ten years | 33,256 | |
Due after ten years | 24,722 | |
Total securities held to maturity | 65,414 | |
Total investment securities, Fair Value | $356,971 | $363,466 |
INVESTMENT_SECURITIES_Securiti
INVESTMENT SECURITIES, Securities Sales And Continuous Unrealized Loss Position Of Securities Held (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Proceeds from sales of securities available for sale and the associated realized securities gains and losses [Abstract] | |||
Proceeds | $531 | $0 | |
Gross realized gains | 26 | 0 | |
Gross realized losses | 0 | 0 | |
Net realized gains | 26 | 0 | |
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 | 34,631 | 0 | |
Less than 12 months Unrealized Losses | -175 | 0 | |
12 months or longer Fair Value | 58,405 | 134,486 | |
12 months or longer Unrealized Losses | -982 | -2,710 | |
Total Fair Value | 93,036 | 134,486 | |
Total Unrealized Losses | -1,157 | -2,710 | |
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 | 13,919 | 0 | |
Less than 12 months Unrealized Losses | -60 | 0 | |
12 months or longer Fair Value | 19,787 | 41,577 | |
12 months or longer Unrealized Losses | -213 | -897 | |
Total Fair Value | 33,706 | 41,577 | |
Total Unrealized Losses | -273 | -897 | |
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 | 0 | 0 | |
Less than 12 months Unrealized Losses | 0 | 0 | |
12 months or longer Fair Value | 8,476 | 8,417 | |
12 months or longer Unrealized Losses | -352 | -531 | |
Total Fair Value | 8,476 | 8,417 | |
Total Unrealized Losses | -352 | -531 | |
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 | 20,712 | 0 | |
Less than 12 months Unrealized Losses | -115 | 0 | |
12 months or longer Fair Value | 27,159 | 81,510 | |
12 months or longer Unrealized Losses | -400 | -1,264 | |
Total Fair Value | 47,871 | 81,510 | |
Total Unrealized Losses | -515 | -1,264 | |
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 | 0 | 0 | |
Less than 12 months Unrealized Losses | 0 | 0 | |
12 months or longer Fair Value | 2,983 | 2,982 | |
12 months or longer Unrealized Losses | -17 | -18 | |
Total Fair Value | 2,983 | 2,982 | |
Total Unrealized Losses | ($17) | ($18) |
INVESTMENT_SECURITIES_Other_Di
INVESTMENT SECURITIES, Other Disclosures (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Investment securities other disclosures [Abstract] | ||||
Sale of Visa Class B equity securities (in shares) | 100,000 | |||
Proceeds from sale of Visa Shares | $7,800,000 | |||
Contingent liability from counterparty estimated future exposure from Visa litigation | 752,000 | 752,000 | ||
Payment to the purchaser of Visa Class B shares | 180,000 | |||
Carrying Costs For Visa Litigation Expensed In The Period | 70,000 | 59,000 | ||
US Government agency securities held as available-for-sale pledged as collateral | $3,000,000 | |||
Shares of Visa Class B securities held (in shares) | 38,638 |
LOANS_Details
LOANS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Categorizes total loans [Abstract] | ||||
Gross Loans | $1,382,160 | $1,355,427 | ||
Allowance for loan losses | -19,325 | -19,200 | -17,737 | -17,263 |
Net loans | 1,362,835 | 1,336,227 | ||
Commercial and Industrial [Member] | ||||
Categorizes total loans [Abstract] | ||||
Gross Loans | 178,812 | 177,813 | ||
Commercial Real Estate [Member] | ||||
Categorizes total loans [Abstract] | ||||
Gross Loans | 579,873 | 560,524 | ||
Allowance for loan losses | -7,352 | -6,777 | -7,208 | -6,572 |
Multifamily [Member] | ||||
Categorizes total loans [Abstract] | ||||
Gross Loans | 322,229 | 309,666 | ||
Allowance for loan losses | -4,467 | -4,018 | -2,640 | -2,159 |
Mixed Use Commercial [Member] | ||||
Categorizes total loans [Abstract] | ||||
Gross Loans | 35,333 | 34,806 | ||
Allowance for loan losses | -273 | -261 | -87 | -54 |
Real Estate Construction [Member] | ||||
Categorizes total loans [Abstract] | ||||
Gross Loans | 24,608 | 26,206 | ||
Allowance for loan losses | -360 | -383 | -217 | -88 |
Residential Mortgages [Member] | ||||
Categorizes total loans [Abstract] | ||||
Gross Loans | 184,977 | 187,828 | ||
Allowance for loan losses | -2,618 | -3,027 | -2,627 | -2,463 |
Home Equity [Member] | ||||
Categorizes total loans [Abstract] | ||||
Gross Loans | 49,440 | 50,982 | ||
Consumer [Member] | ||||
Categorizes total loans [Abstract] | ||||
Gross Loans | 6,888 | 7,602 | ||
Allowance for loan losses | ($155) | ($166) |
LOANS_Analysis_of_Changes_in_t
LOANS, Analysis of Changes in the Allowances for Loan Losses (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | $19,200 | $17,263 |
Charge-offs | -493 | -117 |
Recoveries | 368 | 341 |
Provision (credit) for loan losses | 250 | 250 |
Balance, End of Period | 19,325 | 17,737 |
Number of months of performance trouble debt restructuring returns to accrual status | 6 months | |
Commercial and Industrial [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | 1,560 | 2,615 |
Charge-offs | -492 | -115 |
Recoveries | 343 | 293 |
Provision (credit) for loan losses | 587 | -312 |
Balance, End of Period | 1,998 | 2,481 |
Commercial Real Estate [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | 6,777 | 6,572 |
Charge-offs | 0 | 0 |
Recoveries | 7 | 12 |
Provision (credit) for loan losses | 568 | 624 |
Balance, End of Period | 7,352 | 7,208 |
Multifamily [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | 4,018 | 2,159 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (credit) for loan losses | 449 | 481 |
Balance, End of Period | 4,467 | 2,640 |
Mixed Use Commercial [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | 261 | 54 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (credit) for loan losses | 12 | 33 |
Balance, End of Period | 273 | 87 |
Real Estate Construction [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | 383 | 88 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (credit) for loan losses | -23 | 129 |
Balance, End of Period | 360 | 217 |
Residential Mortgages [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | 3,027 | 2,463 |
Charge-offs | 0 | 0 |
Recoveries | 11 | 4 |
Provision (credit) for loan losses | -420 | 160 |
Balance, End of Period | 2,618 | 2,627 |
Home Equity [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | 709 | 745 |
Charge-offs | 0 | 0 |
Recoveries | 2 | 27 |
Provision (credit) for loan losses | 17 | -54 |
Balance, End of Period | 728 | 718 |
Consumer [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | 166 | 241 |
Charge-offs | -1 | -2 |
Recoveries | 5 | 5 |
Provision (credit) for loan losses | -15 | -58 |
Balance, End of Period | 155 | 186 |
Unallocated [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, Beginning of Period | 2,299 | 2,326 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (credit) for loan losses | -925 | -753 |
Balance, End of Period | $1,374 | $1,573 |
LOANS_Loans_and_Allowance_for_
LOANS, Loans and Allowance for Loan Losses Impairment Evaluations (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | $1,028 | $1,005 | ||
Ending balance: collectively evaluated for impairment | 18,297 | 18,195 | ||
Ending balance | 19,325 | 19,200 | 17,737 | 17,263 |
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 21,785 | 22,415 | ||
Ending balance: collectively evaluated for impairment | 1,360,375 | 1,333,012 | ||
Total loans | 1,382,160 | 1,355,427 | ||
Commercial and Industrial [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | 10 | 16 | ||
Ending balance: collectively evaluated for impairment | 1,988 | 1,544 | ||
Ending balance | 1,998 | 1,560 | 2,481 | 2,615 |
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 3,764 | 4,889 | ||
Ending balance: collectively evaluated for impairment | 175,048 | 172,924 | ||
Total loans | 178,812 | 177,813 | ||
Commercial Real Estate [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 7,352 | 6,777 | ||
Ending balance | 7,352 | 6,777 | 7,208 | 6,572 |
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 10,302 | 10,214 | ||
Ending balance: collectively evaluated for impairment | 569,571 | 550,310 | ||
Total loans | 579,873 | 560,524 | ||
Multifamily [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 4,467 | 4,018 | ||
Ending balance | 4,467 | 4,018 | 2,640 | 2,159 |
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 322,229 | 309,666 | ||
Total loans | 322,229 | 309,666 | ||
Mixed Use Commercial [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 273 | 261 | ||
Ending balance | 273 | 261 | 87 | 54 |
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 35,333 | 34,806 | ||
Total loans | 35,333 | 34,806 | ||
Real Estate Construction [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 360 | 383 | ||
Ending balance | 360 | 383 | 217 | 88 |
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 24,608 | 26,206 | ||
Total loans | 24,608 | 26,206 | ||
Residential Mortgages [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | 771 | 809 | ||
Ending balance: collectively evaluated for impairment | 1,847 | 2,218 | ||
Ending balance | 2,618 | 3,027 | 2,627 | 2,463 |
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 5,651 | 5,422 | ||
Ending balance: collectively evaluated for impairment | 179,326 | 182,406 | ||
Total loans | 184,977 | 187,828 | ||
Home Equity [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | 159 | 92 | ||
Ending balance: collectively evaluated for impairment | 569 | 617 | ||
Ending balance | 728 | 709 | 718 | 745 |
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 1,670 | 1,567 | ||
Ending balance: collectively evaluated for impairment | 47,770 | 49,415 | ||
Total loans | 49,440 | 50,982 | ||
Consumer [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | 88 | 88 | ||
Ending balance: collectively evaluated for impairment | 67 | 78 | ||
Ending balance | 155 | 166 | ||
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 398 | 323 | ||
Ending balance: collectively evaluated for impairment | 6,490 | 7,279 | ||
Total loans | 6,888 | 7,602 | ||
Unallocated [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 1,374 | 2,299 | ||
Ending balance | 1,374 | 2,299 | 1,573 | 2,326 |
Loan balances [Abstract] | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 0 | 0 | ||
Total loans | $0 | $0 |
LOANS_Summary_of_Impaired_Loan
LOANS, Summary of Impaired Loans (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Summary of impaired loans [Abstract] | |||
Impaired loans with no allowance recorded, Unpaid Principal Balance | $17,984 | $18,624 | |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 4,501 | 4,474 | |
Impaired loans, Unpaid Principal Balance, Total | 22,485 | 23,098 | |
Impaired loans with no allowance recorded, Recorded Investment | 17,419 | 18,077 | |
Impaired loans with an allowance recorded, Recorded Investment | 4,366 | 4,338 | |
Impaired Loans, Recorded Investment, Total | 21,785 | 22,415 | |
Impaired Loans, No Allowance Allocated | 0 | 0 | |
Impaired Loans, Allowance Allocated | 1,028 | 1,005 | |
Average recorded investment in impaired loans | 22,215 | 25,102 | |
Interest income recognized on impaired loans | 137 | 261 | |
Commercial and Industrial [Member] | |||
Summary of impaired loans [Abstract] | |||
Impaired loans with no allowance recorded, Unpaid Principal Balance | 3,723 | 4,833 | |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 42 | 57 | |
Impaired loans with no allowance recorded, Recorded Investment | 3,723 | 4,833 | |
Impaired loans with an allowance recorded, Recorded Investment | 41 | 56 | |
Impaired Loans, No Allowance Allocated | 0 | 0 | |
Impaired Loans, Allowance Allocated | 10 | 16 | |
Average recorded investment in impaired loans | 4,551 | 7,567 | |
Interest income recognized on impaired loans | 33 | 107 | |
Commercial Real Estate [Member] | |||
Summary of impaired loans [Abstract] | |||
Impaired loans with no allowance recorded, Unpaid Principal Balance | 10,721 | 10,632 | |
Impaired loans with no allowance recorded, Recorded Investment | 10,302 | 10,214 | |
Impaired Loans, No Allowance Allocated | 0 | 0 | |
Average recorded investment in impaired loans | 10,208 | 11,558 | |
Interest income recognized on impaired loans | 50 | 99 | |
Residential Mortgages [Member] | |||
Summary of impaired loans [Abstract] | |||
Impaired loans with no allowance recorded, Unpaid Principal Balance | 1,919 | 1,645 | |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 3,877 | 3,906 | |
Impaired loans with no allowance recorded, Recorded Investment | 1,773 | 1,516 | |
Impaired loans with an allowance recorded, Recorded Investment | 3,878 | 3,906 | |
Impaired Loans, No Allowance Allocated | 0 | 0 | |
Impaired Loans, Allowance Allocated | 771 | 809 | |
Average recorded investment in impaired loans | 5,411 | 5,036 | |
Interest income recognized on impaired loans | 38 | 36 | |
Home Equity [Member] | |||
Summary of impaired loans [Abstract] | |||
Impaired loans with no allowance recorded, Unpaid Principal Balance | 1,407 | 1,377 | |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 400 | 326 | |
Impaired loans with no allowance recorded, Recorded Investment | 1,407 | 1,377 | |
Impaired loans with an allowance recorded, Recorded Investment | 263 | 190 | |
Impaired Loans, No Allowance Allocated | 0 | 0 | |
Impaired Loans, Allowance Allocated | 159 | 92 | |
Average recorded investment in impaired loans | 1,662 | 771 | |
Interest income recognized on impaired loans | 13 | 17 | |
Consumer [Member] | |||
Summary of impaired loans [Abstract] | |||
Impaired loans with no allowance recorded, Unpaid Principal Balance | 214 | 137 | |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 182 | 185 | |
Impaired loans with no allowance recorded, Recorded Investment | 214 | 137 | |
Impaired loans with an allowance recorded, Recorded Investment | 184 | 186 | |
Impaired Loans, No Allowance Allocated | 0 | 0 | |
Impaired Loans, Allowance Allocated | 88 | 88 | |
Average recorded investment in impaired loans | 383 | 170 | |
Interest income recognized on impaired loans | $3 | $2 |
LOANS_Loans_Modified_as_Troubl
LOANS, Loans Modified as Troubled Debt Restructurings (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Loan | Loan | Loan | |
Troubled debt restructuring at end of period [Abstract] | |||
Number of Loans | 71 | 70 | |
Outstanding Recorded Balance | $18,741 | $19,673 | |
Troubled debt restructured during year [Abstract] | |||
Number of Loans | 3 | 3 | |
Pre-Modification, Outstanding Recorded Balance | 206 | 377 | |
Post-modification, Outstanding Recorded Balance | 211 | 377 | |
Defaulted Troubled Debt Restructurings [Member] | |||
Troubled debt restructured during year [Abstract] | |||
Number of Loans | 0 | 2 | |
Pre-Modification, Outstanding Recorded Balance | 0 | 1,596 | |
Commercial and Industrial [Member] | |||
Troubled debt restructuring at end of period [Abstract] | |||
Number of Loans | 30 | 31 | |
Outstanding Recorded Balance | 2,721 | 3,683 | |
Troubled debt restructured during year [Abstract] | |||
Number of Loans | 1 | 3 | |
Pre-Modification, Outstanding Recorded Balance | 12 | 377 | |
Post-modification, Outstanding Recorded Balance | 12 | 377 | |
Commercial Real Estate [Member] | |||
Troubled debt restructuring at end of period [Abstract] | |||
Number of Loans | 8 | 8 | |
Outstanding Recorded Balance | 10,057 | 10,179 | |
Commercial Real Estate [Member] | Defaulted Troubled Debt Restructurings [Member] | |||
Troubled debt restructured during year [Abstract] | |||
Number of Loans | 0 | 2 | |
Pre-Modification, Outstanding Recorded Balance | 0 | 1,596 | |
Residential Mortgages [Member] | |||
Troubled debt restructuring at end of period [Abstract] | |||
Number of Loans | 21 | 19 | |
Outstanding Recorded Balance | 4,478 | 4,314 | |
Troubled debt restructured during year [Abstract] | |||
Number of Loans | 2 | 0 | |
Pre-Modification, Outstanding Recorded Balance | 194 | 0 | |
Post-modification, Outstanding Recorded Balance | 199 | 0 | |
Home Equity [Member] | |||
Troubled debt restructuring at end of period [Abstract] | |||
Number of Loans | 5 | 5 | |
Outstanding Recorded Balance | 1,208 | 1,216 | |
Consumer [Member] | |||
Troubled debt restructuring at end of period [Abstract] | |||
Number of Loans | 7 | 7 | |
Outstanding Recorded Balance | $277 | $281 |
LOANS_Summary_of_NonPerforming
LOANS, Summary of Non-Performing Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary of non-performing assets [Abstract] | ||
Non-accrual loans | $12,292 | $12,981 |
Non-accrual loans held for sale | 0 | 0 |
Loans 90 days past due and still accruing | 0 | 0 |
OREO | 0 | 0 |
Total non-performing assets | 12,292 | 12,981 |
TDRs accruing interest | 9,418 | 9,380 |
TDRs non-accruing | $9,323 | $10,293 |
LOANS_Loans_and_Allowance_for_1
LOANS, Loans and Allowance for Loan Losses by Risk Rating (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Summarizes non-accrual loans by loan class [Abstract] | |||
Non-accrual Loans principal balance | $12,292 | $12,981 | |
Percentage of Total (in hundredths) | 100.00% | 100.00% | |
Total Loans | 1,382,160 | 1,355,427 | |
Percentage of Total Loans (in hundredths) | 0.90% | 1.00% | |
Additional interest income for the non-accrual loans outstanding at the end of the reported periods | 180 | 494 | |
Commercial and Industrial [Member] | |||
Summarizes non-accrual loans by loan class [Abstract] | |||
Non-accrual Loans principal balance | 3,035 | 4,060 | |
Percentage of Total (in hundredths) | 24.70% | 31.30% | |
Total Loans | 178,812 | 177,813 | |
Percentage of Total Loans (in hundredths) | 0.20% | 0.30% | |
Commercial Real Estate [Member] | |||
Summarizes non-accrual loans by loan class [Abstract] | |||
Non-accrual Loans principal balance | 6,647 | 6,556 | |
Percentage of Total (in hundredths) | 54.10% | 50.50% | |
Total Loans | 579,873 | 560,524 | |
Percentage of Total Loans (in hundredths) | 0.50% | 0.50% | |
Multifamily [Member] | |||
Summarizes non-accrual loans by loan class [Abstract] | |||
Non-accrual Loans principal balance | 0 | 0 | |
Percentage of Total (in hundredths) | 0.00% | 0.00% | |
Total Loans | 322,229 | 309,666 | |
Percentage of Total Loans (in hundredths) | 0.00% | 0.00% | |
Mixed Use Commercial [Member] | |||
Summarizes non-accrual loans by loan class [Abstract] | |||
Non-accrual Loans principal balance | 0 | 0 | |
Percentage of Total (in hundredths) | 0.00% | 0.00% | |
Total Loans | 35,333 | 34,806 | |
Percentage of Total Loans (in hundredths) | 0.00% | 0.00% | |
Real Estate Construction [Member] | |||
Summarizes non-accrual loans by loan class [Abstract] | |||
Non-accrual Loans principal balance | 0 | 0 | |
Percentage of Total (in hundredths) | 0.00% | 0.00% | |
Total Loans | 24,608 | 26,206 | |
Percentage of Total Loans (in hundredths) | 0.00% | 0.00% | |
Residential Mortgages [Member] | |||
Summarizes non-accrual loans by loan class [Abstract] | |||
Non-accrual Loans principal balance | 2,074 | 2,020 | |
Percentage of Total (in hundredths) | 16.90% | 15.60% | |
Total Loans | 184,977 | 187,828 | |
Percentage of Total Loans (in hundredths) | 0.20% | 0.10% | |
Home Equity [Member] | |||
Summarizes non-accrual loans by loan class [Abstract] | |||
Non-accrual Loans principal balance | 414 | 303 | |
Percentage of Total (in hundredths) | 3.30% | 2.30% | |
Total Loans | 49,440 | 50,982 | |
Percentage of Total Loans (in hundredths) | 0.00% | 0.10% | |
Consumer [Member] | |||
Summarizes non-accrual loans by loan class [Abstract] | |||
Non-accrual Loans principal balance | 122 | 42 | |
Percentage of Total (in hundredths) | 1.00% | 0.30% | |
Total Loans | $6,888 | $7,602 | |
Percentage of Total Loans (in hundredths) | 0.00% | 0.00% |
LOANS_Loans_Current_and_Past_D
LOANS, Loans Current and Past Due by Aging Categories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary of current and past due loans [Abstract] | ||
30-59 days past due | $722 | $933 |
60-89 days past due | 379 | 430 |
90 days and over past due | 12,292 | 12,981 |
Total past due | 13,393 | 14,344 |
Current | 1,368,767 | 1,341,083 |
Total loans | 1,382,160 | 1,355,427 |
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due (in hundredths) | 0.10% | 0.10% |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due (in hundredths) | 0.00% | 0.00% |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due (in hundredths) | 0.90% | 1.00% |
Financing Receivable, Recorded Investment, Past Due (in hundredths) | 1.00% | 1.10% |
Financing Receivable, Recorded Investment, Current (in hundredths) | 99.00% | 98.90% |
Total (in hundredths) | 100.00% | 100.00% |
Commercial and Industrial [Member] | ||
Summary of current and past due loans [Abstract] | ||
30-59 days past due | 8 | 52 |
60-89 days past due | 379 | 241 |
90 days and over past due | 3,035 | 4,060 |
Total past due | 3,422 | 4,353 |
Current | 175,390 | 173,460 |
Total loans | 178,812 | 177,813 |
Commercial Real Estate [Member] | ||
Summary of current and past due loans [Abstract] | ||
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days and over past due | 6,647 | 6,556 |
Total past due | 6,647 | 6,556 |
Current | 573,226 | 553,968 |
Total loans | 579,873 | 560,524 |
Multifamily [Member] | ||
Summary of current and past due loans [Abstract] | ||
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 | 322,229 | 309,666 |
Total loans | 322,229 | 309,666 |
Mixed Use Commercial [Member] | ||
Summary of current and past due loans [Abstract] | ||
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 | 35,333 | 34,806 |
Total loans | 35,333 | 34,806 |
Real Estate Construction [Member] | ||
Summary of current and past due loans [Abstract] | ||
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 | 24,608 | 26,206 |
Total loans | 24,608 | 26,206 |
Residential Mortgages [Member] | ||
Summary of current and past due loans [Abstract] | ||
30-59 days past due | 505 | 822 |
60-89 days past due | 0 | 0 |
90 days and over past due | 2,074 | 2,020 |
Total past due | 2,579 | 2,842 |
Current | 182,398 | 184,986 |
Total loans | 184,977 | 187,828 |
Home Equity [Member] | ||
Summary of current and past due loans [Abstract] | ||
30-59 days past due | 199 | 0 |
60-89 days past due | 0 | 112 |
90 days and over past due | 414 | 303 |
Total past due | 613 | 415 |
Current | 48,827 | 50,567 |
Total loans | 49,440 | 50,982 |
Consumer [Member] | ||
Summary of current and past due loans [Abstract] | ||
30-59 days past due | 10 | 59 |
60-89 days past due | 0 | 77 |
90 days and over past due | 122 | 42 |
Total past due | 132 | 178 |
Current | 6,756 | 7,424 |
Total loans | $6,888 | $7,602 |
LOANS_Loans_by_Internal_Assign
LOANS, Loans by Internal Assigned Grade for Credit Risk (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | $1,382,160 | $1,355,427 |
Total (in hundredths) | 100.00% | 100.00% |
Pass [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 1,338,134 | 1,315,247 |
Total (in hundredths) | 96.80% | 97.00% |
Special Mention [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 18,938 | 10,407 |
Total (in hundredths) | 1.40% | 0.80% |
Substandard [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 25,088 | 29,773 |
Total (in hundredths) | 1.80% | 2.20% |
Commercial and Industrial [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 178,812 | 177,813 |
Commercial and Industrial [Member] | Pass [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 165,527 | 167,922 |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 3,543 | 1,225 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 9,742 | 8,666 |
Commercial Real Estate [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 579,873 | 560,524 |
Commercial Real Estate [Member] | Pass [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 553,861 | 536,536 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 15,395 | 9,182 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 10,617 | 14,806 |
Multifamily [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 322,229 | 309,666 |
Multifamily [Member] | Pass [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 322,229 | 309,666 |
Multifamily [Member] | Special Mention [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 0 | 0 |
Multifamily [Member] | Substandard [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 0 | 0 |
Mixed Use Commercial [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 35,333 | 34,806 |
Mixed Use Commercial [Member] | Pass [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 35,313 | 34,806 |
Mixed Use Commercial [Member] | Special Mention [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 0 | 0 |
Mixed Use Commercial [Member] | Substandard [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 20 | 0 |
Real Estate Construction [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 24,608 | 26,206 |
Real Estate Construction [Member] | Pass [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 24,608 | 26,206 |
Real Estate Construction [Member] | Special Mention [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 0 | 0 |
Real Estate Construction [Member] | Substandard [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 0 | 0 |
Residential Mortgages [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 184,977 | 187,828 |
Residential Mortgages [Member] | Pass [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 181,809 | 183,263 |
Residential Mortgages [Member] | Special Mention [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 0 | 0 |
Residential Mortgages [Member] | Substandard [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 3,168 | 4,565 |
Home Equity [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 49,440 | 50,982 |
Home Equity [Member] | Pass [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 48,021 | 49,569 |
Home Equity [Member] | Special Mention [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 0 | 0 |
Home Equity [Member] | Substandard [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 1,419 | 1,413 |
Consumer [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 6,888 | 7,602 |
Consumer [Member] | Pass [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 6,766 | 7,279 |
Consumer [Member] | Special Mention [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | 0 | 0 |
Consumer [Member] | Substandard [Member] | ||
Credit risk profile by internally assigned grade [Abstract] | ||
Total | $122 | $323 |
LOANS_Textual_Details
LOANS, Textual (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for Loan Losses (Additional Textual) [Abstract] | ||
Number of consecutive years | 5 years | |
Threshold loan amount for annual rating review | $500 | |
Allocation of specific reserve regarding troubled debt restructuring | 745 | 790 |
Troubled debt restructuring funds committed | $45 | $100 |
Minimum repayment period | 2 years |
EMPLOYEE_BENEFITS_Details
EMPLOYEE BENEFITS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | |
EMPLOYEE BENEFITS [Abstract] | ||||
Net periodic pension credit | ($111) | ($91) | ||
Optional required contribution for pension plan | 1,000,000 | |||
Minimum required contribution for the pension plan | 0 | |||
Additional minimum required contribution for the pension plan | $0 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, new shares (in shares) | 1,000 | 0 | |||
Number of Shares [Roll Forward] | |||||
Outstanding at beginning (in shares) | 251,100 | ||||
Granted (in shares) | 0 | ||||
Exercised (in shares) | -1,000 | ||||
Forfeited or expired (in shares) | -10,000 | ||||
Outstanding at ending (in shares) | 240,100 | ||||
Weighted Average Exercise Price [Roll Forward] | |||||
Outstanding at beginning (in dollars per share) | $16.33 | ||||
Granted (in dollars per share) | $0 | ||||
Exercised (in dollars per share) | $18.18 | ||||
Forfeited or expired (in dollars per share) | $22.84 | ||||
Outstanding at ending (in dollars per share) | $16.06 | ||||
Summary of options outstanding and exercisable [Abstract] | |||||
Weighted-Average Remaining Contractual Life | 7 years | ||||
Total Shares Outstanding (in shares) | 240,100 | ||||
Total Weighted-Average Exercise Price (in dollars per share) | $16.06 | ||||
Total Shares Exercisable (in shares) | 147,772 | ||||
Total Weighted-Average Remaining Contractual Life | 6 years 7 months 6 days | ||||
Total Weighted-Average Exercise Price (in dollars per share) | $16.59 | ||||
Compensation expense | $222 | $165 | |||
$10.00 - $14.00 [Member] | |||||
Summary of options outstanding and exercisable [Abstract] | |||||
Exercise price range, Lower limit (in dollars per share) | $10 | ||||
Exercise price range, Upper limit (in dollars per share) | $14 | ||||
Shares Outstanding (in shares) | 120,000 | ||||
Weighted-Average Remaining Contractual Life | 6 years 10 months 24 days | ||||
Weighted-Average Exercise Price (in dollars per share) | $11.97 | ||||
Shares Exercisable (in shares) | 83,334 | ||||
Weighted-Average Remaining Contractual Life | 6 years 10 months 24 days | ||||
Weighted-Average Exercise Price (in dollars per share) | $12.45 | ||||
$14.01 - $20.00 [Member] | |||||
Summary of options outstanding and exercisable [Abstract] | |||||
Exercise price range, Lower limit (in dollars per share) | $14.01 | ||||
Exercise price range, Upper limit (in dollars per share) | $20 | ||||
Shares Outstanding (in shares) | 98,100 | ||||
Weighted-Average Remaining Contractual Life | 8 years 3 months 18 days | ||||
Weighted-Average Exercise Price (in dollars per share) | $17.47 | ||||
Shares Exercisable (in shares) | 42,438 | ||||
Weighted-Average Remaining Contractual Life | 8 years 2 months 12 days | ||||
Weighted-Average Exercise Price (in dollars per share) | $16.73 | ||||
$20.01 - $30.00 [Member] | |||||
Summary of options outstanding and exercisable [Abstract] | |||||
Exercise price range, Lower limit (in dollars per share) | $20.01 | ||||
Exercise price range, Upper limit (in dollars per share) | $30 | ||||
Shares Outstanding (in shares) | 5,000 | ||||
Weighted-Average Remaining Contractual Life | 3 years 9 months 18 days | ||||
Weighted-Average Exercise Price (in dollars per share) | $28.30 | ||||
Shares Exercisable (in shares) | 5,000 | ||||
Weighted-Average Remaining Contractual Life | 3 years 9 months 18 days | ||||
Weighted-Average Exercise Price (in dollars per share) | $28.30 | ||||
$30.01 - $40.00 [Member] | |||||
Summary of options outstanding and exercisable [Abstract] | |||||
Exercise price range, Lower limit (in dollars per share) | $30.01 | ||||
Exercise price range, Upper limit (in dollars per share) | $40 | ||||
Shares Outstanding (in shares) | 17,000 | ||||
Weighted-Average Remaining Contractual Life | 1 year 9 months 18 days | ||||
Weighted-Average Exercise Price (in dollars per share) | $33.12 | ||||
Shares Exercisable (in shares) | 17,000 | ||||
Weighted-Average Remaining Contractual Life | 1 year 9 months 18 days | ||||
Weighted-Average Exercise Price (in dollars per share) | $33.12 | ||||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of SAR's (in dollars per share) | $0 | ||||
Number of Shares [Roll Forward] | |||||
Outstanding at ending (in shares) | 6,000 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options exercise period | 3 years | ||||
Vesting rate | 0.33333 | ||||
Number of Shares [Roll Forward] | |||||
Outstanding at beginning (in shares) | 72,350 | ||||
Granted (in shares) | 51,562 | ||||
Vested (in shares) | 0 | ||||
Forfeited or expired (in shares) | -4,975 | ||||
Outstanding at ending (in shares) | 118,937 | ||||
Weighted Average Grant-Date Fair Value [Roll Forward] | |||||
Outstanding at beginning (in dollars per shares) | $22.51 | ||||
Granted (in dollars per share) | $22.76 | ||||
Vested (in dollars per share) | $0 | ||||
Forfeited or expired (in dollars per share) | $22.52 | ||||
Outstanding at ending (in dollars per share) | $22.62 | ||||
Remaining unrecognized compensation cost | 2,100 | ||||
Remaining unrecognized compensation cost remaining vesting period | 2 years 4 months 24 days | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options exercise period | 3 years | 3 years | 3 years | ||
Vesting rate | 0.33333 | 0.33333 | 0.33333 | ||
Total intrinsic value of options exercised | 6 | ||||
Total cash received from option exercises | 19 | ||||
Maximum [Member] | Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options exercise 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) | 166,561 | ||||
Weighted Average Grant-Date Fair Value [Roll Forward] | |||||
Remaining unrecognized compensation cost | $211 | ||||
Remaining unrecognized compensation cost remaining vesting period | 1 year 6 months | ||||
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 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
INCOME TAXES [Abstract] | |||
Income tax expense | $1,241,000 | $1,111,000 | |
Effective tax rate (in hundredths) | 23.60% | 23.00% | |
Unrecognized tax benefits | 34,000 | 34,000 | 34,000 |
Unrecognized tax benefits accrued interest | 0 | ||
Operating Loss Carryforwards [Line Items] | |||
Valuation reserve | 1,000,000 | ||
Operating loss carryforwards, expiration dates | 31-Dec-32 | ||
Income Tax Reconciliation, Change in Enacted Tax Rate | 462,000 | ||
Income Tax Reconciliation, Nondeductible Expense, Share-based Compensation Cost | 454,000 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 0 | ||
New York State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 23,000,000 | ||
Corporate tax rate, effective (in hundredths) | 7.10% | ||
Corporate tax rate, future - 2016 (in hundredths) | 6.50% | ||
Asset qualifying threshold for tax modification | 8,000,000,000 | ||
Maximum mortgage threshold for loans | $5,000,000 |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Total Capital (to risk-weighted assets) [Abstract] | ||
Actual capital ratios, Amount | $209,314 | $201,476 |
Minimum for capital adequacy, Amount | 122,866 | 121,608 |
Minimum to be Well Capitalized under prompt corrective action provisions, Amount | 153,582 | 152,010 |
Total Capital (to risk-weighted assets) Ratios [Abstract] | ||
Actual capital ratios, Ratio (in hundredths) | 13.63% | 13.25% |
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 | 190,111 | 182,469 |
Minimum for capital adequacy, Amount | 92,149 | 60,804 |
Minimum to be Well Capitalized under prompt corrective action provisions, Amount | 122,866 | 91,206 |
Tier 1 Capital (to risk-weighted assets) Ratio [Abstract] | ||
Actual capital ratios, ratio (in hundredths) | 12.38% | 12.00% |
Minimum for capital adequacy, Ratio (in hundredths) | 6.00% | 4.00% |
Minimum to be Well Capitalized under prompt corrective action provisions, Ratio (in hundredths) | 8.00% | 6.00% |
Common Equity Tier 1 Capital (to risk-weighted assets) [Abstract] | ||
Actual capital ratios, Amount | 190,111 | |
Minimum for capital adequacy, Amount | 69,112 | |
Minimum to be Well Capitalized under prompt corrective action provisions, Amount | 99,829 | |
Common Equity Tier 1 Capital (to risk-weighted assets) Ratios [Abstract] | ||
Actual capital ratios, Ratio (in hundredths) | 12.38% | |
Minimum for capital adequacy, Ratio (in hundredths) | 4.50% | |
Minimum to be Well Capitalized under prompt corrective action provisions, Ratio (in hundredths) | 6.50% | |
Tier 1 Capital (to average assets) [Abstract] | ||
Actual capital ratios, Amount | 190,111 | 182,469 |
Minimum for capital adequacy, Amount | 75,915 | 73,312 |
Minimum to be Well Capitalized under prompt corrective action provisions, Amount | $94,894 | $91,640 |
Tier 1 Capital (to average assets) Ratios [Abstract] | ||
Actual capital ratios, ratio (in hundredths) | 10.02% | 9.96% |
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) | 10.02% | 9.96% |
Tier 1 Risk-based Capital Ratio (in hundredths) | 12.38% | 12.00% |
Common Equity Tier 1 Risk-based Capital Ratio (in hundredths) | 12.38% | |
Total Risk-based Capital Ratio (in hundredths) | 13.63% | 13.25% |
Parent Company [Member] | ||
Total Capital (to risk-weighted assets) Ratios [Abstract] | ||
Actual capital ratios, Ratio (in hundredths) | 13.77% | 13.35% |
Tier 1 Capital (to risk-weighted assets) Ratio [Abstract] | ||
Actual capital ratios, ratio (in hundredths) | 12.52% | 12.10% |
Common Equity Tier 1 Capital (to risk-weighted assets) Ratios [Abstract] | ||
Actual capital ratios, Ratio (in hundredths) | 12.52% | |
Tier 1 Capital (to average assets) Ratios [Abstract] | ||
Actual capital ratios, ratio (in hundredths) | 10.13% | 10.04% |
Tier 1 Leverage Capital ratio (in hundredths) | 10.13% | 10.04% |
Tier 1 Risk-based Capital Ratio (in hundredths) | 12.52% | 12.10% |
Common Equity Tier 1 Risk-based Capital Ratio (in hundredths) | 12.52% | |
Total Risk-based Capital Ratio (in hundredths) | 13.77% | 13.35% |
FAIR_VALUE_Balance_Sheets_Grou
FAIR VALUE, Balance Sheets Grouping (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Financial Assets [Abstract] | ||||
Interest-bearing time deposits in other banks | $10,000 | $10,000 | ||
Investment securities held to maturity | 65,414 | 64,796 | ||
Investment securities available for sale | 291,557 | 298,670 | ||
Financial Liabilities [Abstract] | ||||
Borrowings | 90,000 | 130,000 | ||
Percentage of derivative in net sale proceeds (in hundredths) | 10.00% | |||
Carrying Amount [Member] | ||||
Financial Assets [Abstract] | ||||
Federal Reserve Bank, Federal Home Loan Bank and other stock | 6,800 | 8,600 | ||
Carrying Amount [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and due from banks | 59,024 | 54,516 | ||
Carrying Amount [Member] | Level 2 [Member] | ||||
Financial Assets [Abstract] | ||||
Federal funds sold | 0 | 1,000 | ||
Interest-bearing time deposits in other banks | 10,000 | 10,000 | ||
Investment securities held to maturity | 62,191 | 62,270 | ||
Investment securities available for sale | 291,557 | 298,670 | ||
Loans held for sale | 2,836 | 26,495 | ||
Accrued interest and loan fees receivable | 6,482 | 5,676 | ||
Financial Liabilities [Abstract] | ||||
Non maturity deposits | 1,368,484 | 1,337,301 | ||
Time deposits | 223,188 | 218,759 | ||
Borrowings | 90,000 | 130,000 | ||
Accrued interest payable | 131 | 136 | ||
Carrying Amount [Member] | Level 3 [Member] | ||||
Financial Liabilities [Abstract] | ||||
Derivatives | 752 | 752 | ||
Carrying Amount [Member] | Level 2/3 [Member] | ||||
Financial Assets [Abstract] | ||||
Loans, net of allowance | 1,362,835 | [1] | 1,336,227 | [1] |
Fair Value [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and due from banks | 59,024 | 54,516 | ||
Fair Value [Member] | Level 2 [Member] | ||||
Financial Assets [Abstract] | ||||
Federal funds sold | 0 | 1,000 | ||
Interest-bearing time deposits in other banks | 10,009 | 10,017 | ||
Investment securities held to maturity | 65,414 | 64,796 | ||
Investment securities available for sale | 291,557 | 298,670 | ||
Loans held for sale | 2,836 | 26,495 | ||
Accrued interest and loan fees receivable | 6,482 | 5,676 | ||
Financial Liabilities [Abstract] | ||||
Non maturity deposits | 1,368,484 | 1,337,301 | ||
Time deposits | 223,570 | 219,089 | ||
Borrowings | 90,003 | 130,004 | ||
Accrued interest payable | 131 | 136 | ||
Fair Value [Member] | Level 3 [Member] | ||||
Financial Liabilities [Abstract] | ||||
Derivatives | 752 | 752 | ||
Fair Value [Member] | Level 2/3 [Member] | ||||
Financial Assets [Abstract] | ||||
Loans, net of allowance | $1,364,305 | [1] | $1,329,041 | [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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets measured at fair value on a non-recurring basis [Abstract] | ||
Impaired loans | $3,338 | $3,333 |
Total | 3,338 | 3,333 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets measured at fair value on a non-recurring basis [Abstract] | ||
Impaired loans | 3,338 | 3,333 |
Total | $3,338 | $3,333 |
FAIR_VALUE_Nonrecurring_Basis_1
FAIR VALUE, Non-recurring Basis, Quantitative Information (Details) (Level 3 [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Total | $3,338 | $3,333 | |
Third Party Appraisal and or Internal Evaluation [Member] | Commercial and Industrial [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Total | 31 | 40 | |
Third Party Appraisal and or Internal Evaluation [Member] | Commercial and Industrial [Member] | Minimum [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Discounts to appraisals for market conditions and selling costs (in hundredths) | 5.60% | [1] | |
Third Party Appraisal and or Internal Evaluation [Member] | Commercial and Industrial [Member] | Maximum [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Discounts to appraisals for market conditions and selling costs (in hundredths) | 50.00% | [1] | |
Third Party Appraisal [Member] | Residential Mortgages [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Total | 3,107 | 3,097 | |
Discounts to appraisals for market conditions and selling costs (in hundredths) | 25.00% | ||
Third Party Appraisal [Member] | Home Equity [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Total | 104 | 98 | |
Discounts to appraisals for market conditions and selling costs (in hundredths) | 25.00% | ||
Third Party Appraisal [Member] | Consumer [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Total | $96 | $98 | |
Discounts to appraisals for market conditions and selling costs (in hundredths) | 25.00% | ||
[1] | The Company also makes adjustments to the appraised value based upon evaluation of corporate assets, such as inventory and accounts receivable, and various other information, such as market conditions and other factors. Higher discounts may be applied to certain assets, such as inventory and accounts receivable. |
FAIR_VALUE_Recurring_Basis_Det
FAIR VALUE, Recurring Basis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets [Abstract] | ||
Total | $291,557 | $298,670 |
Fair Value, Measurements, Recurring [Member] | ||
Assets [Abstract] | ||
Total | 291,557 | 298,670 |
Liabilities [Abstract] | ||
Total | 752 | 752 |
Fair Value, Measurements, Recurring [Member] | Derivative [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 752 | 752 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Agency Securities [Member] | ||
Assets [Abstract] | ||
Total | 38,709 | 41,577 |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Total | 133,924 | 137,769 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Assets [Abstract] | ||
Total | 21,391 | 21,997 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities [Member] | ||
Assets [Abstract] | ||
Total | 91,084 | 90,919 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Assets [Abstract] | ||
Total | 6,449 | 6,408 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Total | 291,557 | 298,670 |
Liabilities [Abstract] | ||
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Derivative [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Agency Securities [Member] | ||
Assets [Abstract] | ||
Total | 38,709 | 41,577 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Total | 133,924 | 137,769 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Collateralized Mortgage Obligations [Member] | ||
Assets [Abstract] | ||
Total | 21,391 | 21,997 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed Securities [Member] | ||
Assets [Abstract] | ||
Total | 91,084 | 90,919 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Assets [Abstract] | ||
Total | 6,449 | 6,408 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Total | 0 | 0 |
Liabilities [Abstract] | ||
Total | 752 | 752 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Derivative [Member] | ||
Liabilities [Abstract] | ||
Derivatives | 752 | 752 |
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] | Obligations of States and Political Subdivisions [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] | Corporate Bonds [Member] | ||
Assets [Abstract] | ||
Total | $0 | $0 |
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) (Liabilities Derivatives [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Liabilities Derivatives [Member] | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Rollforward] | ||
Beginning balance | $752 | $932 |
Net change | 0 | 0 |
Ending balance | $752 | $932 |
BORROWINGS_Details
BORROWINGS (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Daily average outstanding | $124,111,000 | $13,059,000 |
Total interest cost | 108,000 | 48,000 |
Average interest rate paid (in hundredths) | 0.35% | 0.37% |
Maximum amount outstanding at any month-end | 155,000,000 | 130,000,000 |
Ending, balance | 90,000,000 | 130,000,000 |
Weighted-average interest rate on balances outstanding (in hundredths) | 0.34% | 0.32% |
Assets pledged as collateral to the Federal Home Loan Bank | 567,000,000 | 505,000,000 |
Federal Home Loan Bank borrowings | 90,000,000 | 130,000,000 |
Federal Home Loan Bank Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Daily average outstanding | 124,111,000 | 13,051,000 |
Total interest cost | 108,000 | 48,000 |
Average interest rate paid (in hundredths) | 0.35% | 0.37% |
Maximum amount outstanding at any month-end | 155,000,000 | 130,000,000 |
Ending, balance | 90,000,000 | 130,000,000 |
Weighted-average interest rate on balances outstanding (in hundredths) | 0.34% | 0.32% |
Federal Funds Purchased [Member] | ||
Debt Instrument [Line Items] | ||
Daily average outstanding | 0 | 8,000 |
Total interest cost | 0 | 0 |
Average interest rate paid (in hundredths) | 0.00% | 0.46% |
Maximum amount outstanding at any month-end | 0 | 0 |
Ending, balance | $0 | $0 |
Weighted-average interest rate on balances outstanding (in hundredths) | 0.00% | 0.00% |