Suffolk Bancorp (SCNB) 10-Q 2 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 21, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	SUFFOLK BANCORP
Entity Central Index Key	754,673
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,911,620
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Cash and cash equivalents
Cash and non-interest-bearing deposits due from banks	$ 40,086	$ 75,272
Interest-bearing deposits due from banks	141,843	22,814
Total cash and cash equivalents	181,929	98,086
Federal Reserve and Federal Home Loan Bank stock and other investments	4,528	10,756
Investment securities:
Available for sale, at fair value	194,273	247,099
Held to maturity (fair value of $19,633 and $63,272, respectively)	18,896	61,309
Total investment securities	213,169	308,408
Loans	1,710,786	1,666,447
Allowance for loan losses	20,465	20,685
Net loans	1,690,321	1,645,762
Loans held for sale	1,504	1,666
Premises and equipment, net	25,289	23,240
Bank-owned life insurance	53,418	52,383
Deferred tax assets, net	12,445	15,845
Accrued interest and loan fees receivable	5,840	5,859
Goodwill and other intangibles	2,761	2,864
Other real estate owned ("OREO")	650	0
Other assets	4,621	3,723
TOTAL ASSETS	2,196,475	2,168,592
LIABILITIES & STOCKHOLDERS' EQUITY
Demand deposits	867,178	787,944
Savings, N.O.W. and money market deposits	857,790	768,036
Subtotal core deposits	1,724,968	1,555,980
Time deposits	219,232	224,643
Total deposits	1,944,200	1,780,623
Borrowings	15,000	165,000
Unfunded pension liability	6,416	6,428
Capital leases	4,298	4,395
Other liabilities	11,863	14,888
TOTAL LIABILITIES	1,981,777	1,971,334
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY
Common stock (par value $2.50; 15,000,000 shares authorized; issued 14,073,159 and 13,966,292, respectively; outstanding 11,907,421 and 11,800,554, respectively)	35,183	34,916
Surplus	48,520	46,239
Retained earnings	142,632	130,093
Treasury stock at par (2,165,738 shares)	(5,414)	(5,414)
Accumulated other comprehensive loss, net of tax	(6,223)	(8,576)
TOTAL STOCKHOLDERS' EQUITY	214,698	197,258
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,196,475	$ 2,168,592

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investment securities:
Held to maturity, fair value	$ 19,633	$ 63,272
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)	14,073,159	13,966,292
Common stock, shares outstanding (in shares)	11,907,421	11,800,554
Treasury stock, shares (in shares)	2,165,738	2,165,738

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
INTEREST INCOME
Loans and loan fees	$ 17,545	$ 15,798	$ 52,808	$ 46,362
U.S. Government agency obligations	47	530	662	1,602
Obligations of states and political subdivisions	791	1,114	2,709	3,725
Collateralized mortgage obligations	91	149	270	507
Mortgage-backed securities	464	441	1,401	1,329
Corporate bonds	161	96	469	179
Federal funds sold, securities purchased under agreements to resell and interest-bearing deposits due from banks	133	7	191	50
Dividends	92	71	275	221
Total interest income	19,324	18,206	58,785	53,975
INTEREST EXPENSE
Savings, N.O.W. and money market deposits	539	338	1,562	906
Time deposits	331	396	1,015	1,043
Borrowings	66	94	474	310
Total interest expense	936	828	3,051	2,259
Net interest income	18,388	17,378	55,734	51,716
(Credit) provision for loan losses	(350)	350	(100)	600
Net interest income after (credit) provision for loan losses	18,738	17,028	55,834	51,116
NON-INTEREST INCOME
Service charges on deposit accounts	523	749	1,913	2,319
Other service charges, commissions and fees	793	759	2,088	2,032
Net gain on sale of securities available for sale	523	133	547	319
Net gain on sale of portfolio loans	0	370	457	568
Net gain on sale of mortgage loans originated for sale	100	85	247	290
Income from bank-owned life insurance	344	306	1,035	918
Other operating income	39	25	168	122
Total non-interest income	2,322	2,427	6,455	6,568
OPERATING EXPENSES
Employee compensation and benefits	8,518	7,980	25,666	25,102
Occupancy expense	1,337	1,401	4,125	4,236
Equipment expense	494	410	1,341	1,199
Consulting and professional services	476	609	1,578	1,491
FDIC assessment	303	226	887	802
Data processing	156	506	569	1,590
Merger costs	644	0	644	0
Other operating expenses	1,539	1,536	5,128	4,530
Total operating expenses	13,467	12,668	39,938	38,950
Income before income tax expense	7,593	6,787	22,351	18,734
Income tax expense	2,118	1,864	6,253	4,684
NET INCOME	$ 5,475	$ 4,923	$ 16,098	$ 14,050
EARNINGS PER COMMON SHARE - BASIC (in dollars per share)	$ 0.46	$ 0.42	$ 1.36	$ 1.20
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share)	$ 0.46	$ 0.42	$ 1.35	$ 1.19
WEIGHTED AVERAGE COMMON SHARES - BASIC (in shares)	11,901,866	11,785,731	11,868,990	11,743,076
WEIGHTED AVERAGE COMMON SHARES - DILUTED (in shares)	12,000,351	11,863,299	11,950,595	11,817,899

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Net income	$ 5,475	$ 4,923	$ 16,098	$ 14,050
Other comprehensive (loss) income, net of tax and reclassification adjustments:
Change in unrealized (loss) gain on securities available for sale arising during the period, net of tax of ($755), $700, $756 and $354, respectively	(1,135)	1,008	1,031	479
Change in unrealized gain on securities transferred from available for sale to held to maturity, net of tax of $280, $14, $879 and $67, respectively	411	55	1,322	136
Total other comprehensive (loss) income, net of tax	(724)	1,063	2,353	615
Total comprehensive income	$ 4,751	$ 5,986	$ 18,451	$ 14,665

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Change in unrealized gain (loss) on securities available for sale, tax	$ (755)	$ 700	$ 756	$ 354
Change in unrealized gain on securities transferred, tax	$ 280	$ 14	$ 879	$ 67

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock [Member]	Surplus [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss, Net of Tax [Member]	Total
Beginning balance at Dec. 31, 2014	$ 34,591	$ 44,230	$ 116,169	$ (5,414)	$ (6,843)
Net income			14,050			$ 14,050
Dividend reinvestment	59	501
Stock options exercised	98	441
Stock-based compensation	142	484
Other comprehensive income					615	615
Cash dividends on common stock ($0.30 and $0.22 per share, respectively)			(2,583)
Ending balance at Sep. 30, 2015	34,890	45,656	127,636	(5,414)	(6,228)	196,540
Beginning balance at Jun. 30, 2015					(7,291)
Net income						4,923
Other comprehensive income						1,063
Ending balance at Sep. 30, 2015	34,890	45,656	127,636	(5,414)	(6,228)	196,540
Beginning balance at Dec. 31, 2015	34,916	46,239	130,093	(5,414)	(8,576)	197,258
Net income			16,098			16,098
Dividend reinvestment	166	1,619
Stock options exercised	0	0
Stock-based compensation	101	662
Other comprehensive income					2,353	2,353
Cash dividends on common stock ($0.30 and $0.22 per share, respectively)			(3,559)
Ending balance at Sep. 30, 2016	35,183	48,520	142,632	(5,414)	(6,223)	214,698
Beginning balance at Jun. 30, 2016					(5,499)
Net income						5,475
Other comprehensive income						(724)
Ending balance at Sep. 30, 2016	$ 35,183	$ 48,520	$ 142,632	$ (5,414)	$ (6,223)	$ 214,698

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Common Stock [Member]
Dividend reinvestment (in shares)	66,365	23,524
Stock options exercised (in shares)	0	39,334
Retained Earnings [Member]
Cash dividend on common stock (in dollars per share)	$ 0.30	$ 0.22

CONDENSED CONSOLIDATED STATEME9

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) [Abstract]
NET INCOME	$ 16,098	$ 14,050
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
(Credit) provision for loan losses	(100)	600
Depreciation and amortization	1,788	1,740
Stock-based compensation - net	763	626
Net amortization of premiums	874	863
Originations of mortgage loans held for sale	(34,482)	(31,613)
Proceeds from sale of mortgage loans originated for sale	34,892	32,517
Gain on sale of mortgage loans originated for sale	(247)	(290)
Gain on sale of portfolio loans	(457)	(568)
Decrease in other intangibles	103	76
Deferred tax expense	1,768	872
Decrease (increase) in accrued interest and loan fees receivable	19	(673)
(Increase) decrease in other assets	(899)	1,377
Adjustment to unfunded pension liability	(12)	(334)
Decrease in other liabilities	(3,026)	(1,598)
Income from bank-owned life insurance	(1,035)	(918)
Net gain on sale and calls of securities available for sale	(547)	(319)
Net cash provided by operating activities	15,500	16,408
CASH FLOWS FROM INVESTING ACTIVITIES
Principal payments on investment securities - available for sale	6,661	8,030
Proceeds from sale of investment securities - available for sale	6,615	10,080
Maturities and calls of investment securities - available for sale	54,290	26,505
Purchases of investment securities - available for sale	(13,188)	(6,800)
Maturities and calls of investment securities - held to maturity	44,521	1,957
Purchases of investment securities - held to maturity	0	(6,000)
Decrease in interest-bearing time deposits in other banks	0	10,000
Decrease in Federal Reserve and Federal Home Loan Bank stock and other investments	6,228	3,019
Proceeds from sale of portfolio loans	49,184	49,871
Loan originations - net	(93,837)	(227,745)
Purchases of premises and equipment - net	(3,837)	(1,243)
Net cash provided by (used in) investing activities	56,637	(132,326)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposit accounts	163,577	239,771
Net decrease in short-term borrowings	(150,000)	(95,000)
Net increase in long-term borrowings	0	15,000
Proceeds from stock options exercised	0	539
Cash dividends paid on common stock	(3,559)	(2,583)
Proceeds from shares issued under the dividend reinvestment plan	1,785	560
Decrease in capital lease payable	(97)	(85)
Net cash provided by financing activities	11,706	158,202
NET INCREASE IN CASH AND CASH EQUIVALENTS	83,843	42,284
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	98,086	55,516
CASH AND CASH EQUIVALENTS, END OF PERIOD	181,929	97,800
SUPPLEMENTAL DATA:
Interest paid	3,093	2,208
Income taxes paid	4,146	3,148
Loans transferred to held-for-sale	48,670	24,164
Loans transferred to OREO	$ 650	$ 0

FINANCIAL STATEMENT PRESENTATIO

FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
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. On June 26, 2016, the Company entered into an Agreement and Plan of Merger (the “merger agreement”) with People’s United Financial, Inc. (“People’s United”) pursuant to which the Company will merge into People’s United (the “merger”). People’s United will be the surviving corporation in the merger. Subject to the terms and conditions of the merger agreement, the Company’s shareholders will have the right to receive 2.225 shares of People’s United common stock in exchange for each share of Company common stock. The merger agreement was adopted by the Company’s shareholders on October 13, 2016. The closing of the merger remains subject to regulatory approvals and other customary conditions. 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 the Company’s condensed consolidated statement of condition as of September 30, 2016, its condensed consolidated statements of income for the three and nine months ended September 30, 2016 and 2015, its condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2016 and 2015, its condensed consolidated statements of changes in stockholders’ equity for the nine months ended September 30, 2016 and 2015 and its condensed consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015. 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 and nine months ended September 30, 2016 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 2015 Annual Report on Form 10-K. Earnings Per Share The reconciliation of basic and diluted weighted average number of common shares outstanding for the three and nine months ended September 30, 2016 and 2015 follows. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Weighted average common shares outstanding 11,788,825 11,674,697 11,752,237 11,636,155 Weighted average unvested restricted shares 113,041 111,034 116,753 106,921 Weighted average shares for basic earnings per share 11,901,866 11,785,731 11,868,990 11,743,076 Additional diluted shares: Stock options 98,485 77,568 81,605 74,823 Weighted average shares for diluted earnings per share 12,000,351 11,863,299 11,950,595 11,817,899 Loans and Loan Interest Income Recognition 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. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. 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 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 include consideration of the following: levels and trends in various risk rating categories; 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. 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 Other Real Estate Owned (“OREO”) Bank-Owned Life Insurance Derivatives Recent Accounting Guidance In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model and provides for recording credit losses on available-for-sale debt securities through an allowance account. The ASU also requires certain incremental disclosures. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the pending adoption of the ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718), “Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. In addition, the ASU elevates the statutory tax withholding threshold to qualify for equity classification up to the maximum statutory tax rates in the applicable jurisdiction(s). The ASU also clarifies that cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The ASU provides an optional accounting policy election (with limited exceptions), to be applied on an entity-wide basis, to either estimate the number of awards that are expected to vest (consistent with existing U.S. GAAP) or account for forfeitures when they occur. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the pending adoption of the ASU on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of the pending adoption of the ASU on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), “Recognition and Measurement of Financial Assets and Financial Liabilities” which requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in other comprehensive income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of available for sale debt securities in combination with other deferred tax assets. This ASU provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes and also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. For public entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Generally, early adoption of the amendments in this ASU is not permitted. The Company believes that adoption in 2018 will not 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 FASB subsequently issued ASU 2016-08 which updates the new standard by clarifying the principal versus agent implementation guidance, ASU 2016-10 which clarifies identifying performance obligations and the licensing implementation guidance and ASU 2016-12 which clarifies the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration and certain transition matters, but these do not change the core principle of the new standard. The FASB also subsequently issued ASU 2015-14 to defer the effective date of the new standard by one year. As such, it now takes effect for public entities in fiscal years beginning after December 15, 2017, 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). Early adoption is permitted for any entity that chooses to adopt the new standard as of the original effective date. The Company has not yet determined the method by which it will adopt ASU 2014-09 in 2018 and does not believe that the adoption will have a material effect on the Company’s consolidated financial statements.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS ("AOCI")	9 Months Ended
	Sep. 30, 2016
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS ("AOCI") [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS ("AOCI")	2. ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS (“AOCI”) The changes in the Company’s AOCI by component, net of tax, for the three and nine months ended September 30, 2016 and 2015 follow (in thousands). Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Unrealized Gains and Losses on Available for Sale Securities Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity Pension and Post- Retirement Plan Items Total Unrealized Gains and Losses on Available for Sale Securities Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity Pension and Post- Retirement Plan Items Total Beginning balance $ 3,602 $ (484 ) $ (8,617 ) $ (5,499 ) $ 2,108 $ (1,724 ) $ (7,675 ) $ (7,291 ) Other comprehensive (loss) income before reclassifications (826 ) - - (826 ) 1,087 - - 1,087 Amounts reclassified from AOCI (309 ) 411 - 102 (79 ) 55 - (24 ) Net other comprehensive (loss) income (1,135 ) 411 - (724 ) 1,008 55 - 1,063 Ending balance $ 2,467 $ (73 ) $ (8,617 ) $ (6,223 ) $ 3,116 $ (1,669 ) $ (7,675 ) $ (6,228 ) Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Unrealized Gains and Losses on Available for Sale Securities Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity Pension and Post- Retirement Plan Items Total Unrealized Gains and Losses on Available for Sale Securities Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity Pension and Post- Retirement Plan Items Total Beginning balance $ 1,436 $ (1,395 ) $ (8,617 ) $ (8,576 ) $ 2,637 $ (1,805 ) $ (7,675 ) $ (6,843 ) Other comprehensive income before reclassifications 1,354 - - 1,354 670 - - 670 Amounts reclassified from AOCI (323 ) 1,322 - 999 (191 ) 136 - (55 ) Net other comprehensive income 1,031 1,322 - 2,353 479 136 - 615 Ending balance $ 2,467 $ (73 ) $ (8,617 ) $ (6,223 ) $ 3,116 $ (1,669 ) $ (7,675 ) $ (6,228 ) Reclassifications out of AOCI for the three and nine months ended September 30, 2016 and 2015 follow (in thousands). Amount Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Statement Details about AOCI Components 2016 2015 2016 2015 Where Net Income is Presented Unrealized gains and losses on available for sale securities $ 523 $ 133 $ 547 $ 319 Net gain on sale of securities available for sale Unrealized losses on securities transferred from available for sale to held to maturity (690 ) (69 ) (2,200 ) (203 ) Interest income - U.S. Government agency obligations Subtotal, pre-tax (167 ) 64 (1,653 ) 116 Income tax effect 65 (40 ) 654 (61 ) Income tax expense Total, net of tax $ (102 ) $ 24 $ (999 ) $ 55

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2016
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, trading or held to maturity, depending upon investment objectives, liquidity needs and intent. In 2014, investment securities with a fair value of $48 million and an 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, equal to the unrealized holding losses at the date of transfer, is being accreted to interest income over the remaining life of the securities. The unrealized holding losses at the date of transfer remained in AOCI and are being amortized simultaneously against interest income. Those amounts 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 September 30, 2016 and December 31, 2015 were as follows (in thousands): September 30, 2016 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale: U.S. Government agency securities $ - $ - $ - $ - $ 28,977 $ 2 $ (463 ) $ 28,516 Obligations of states and political subdivisions 69,239 2,719 - 71,958 100,215 4,467 - 104,682 Collateralized mortgage obligations 18,412 57 (73 ) 18,396 15,795 2 (248 ) 15,549 Mortgage-backed securities 93,442 1,864 (12 ) 95,294 93,719 39 (1,316 ) 92,442 Corporate bonds 9,000 - (375 ) 8,625 6,000 - (90 ) 5,910 Total available for sale securities 190,093 4,640 (460 ) 194,273 244,706 4,510 (2,117 ) 247,099 Held to maturity: U.S. Government agency securities 2,375 125 - 2,500 43,570 1,450 - 45,020 Obligations of states and political subdivisions 10,521 449 - 10,970 11,739 536 - 12,275 Corporate bonds 6,000 163 - 6,163 6,000 7 (30 ) 5,977 Total held to maturity securities 18,896 737 - 19,633 61,309 1,993 (30 ) 63,272 Total investment securities $ 208,989 $ 5,377 $ (460 ) $ 213,906 $ 306,015 $ 6,503 $ (2,147 ) $ 310,371 At September 30, 2016 and December 31, 2015, investment securities carried at $180 million and $261 million, respectively, were pledged primarily 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 September 30, 2016 (in thousands) are presented in the table below. Collateralized mortgage obligations (“CMOs”) and mortgage-backed securities (“MBS”) assume maturity dates pursuant to average lives. September 30, 2016 Amortized Cost Fair Value Securities available for sale: Due in one year or less $ 22,134 $ 22,402 Due from one to five years 129,676 133,050 Due from five to ten years 38,283 38,821 Total securities available for sale 190,093 194,273 Securities held to maturity: Due in one year or less 2,636 2,714 Due from one to five years 1,344 1,393 Due from five to ten years 8,375 8,663 Due after ten years 6,541 6,863 Total securities held to maturity 18,896 19,633 Total investment securities $ 208,989 $ 213,906 The proceeds from sales of securities available for sale and the associated realized gains and losses are shown below (in thousands) for the periods indicated. Realized gains are also inclusive of gains on called securities. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Proceeds $ 6,615 $ 3,077 $ 6,615 $ 10,080 Gross realized gains $ 523 $ 133 $ 547 $ 334 Gross realized losses - - - (15 ) Net realized gains $ 523 $ 133 $ 547 $ 319 Information pertaining to securities with unrealized losses at September 30, 2016 and December 31, 2015, 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 September 30, 2016 Fair Unrealized Fair Unrealized Fair Unrealized Collateralized mortgage obligations $ 6,159 $ (50 ) $ 1,868 $ (23 ) $ 8,027 $ (73 ) Mortgage-backed securities 6,512 (12 ) - - 6,512 (12 ) Corporate bonds 2,925 (75 ) 5,700 (300 ) 8,625 (375 ) Total $ 15,596 $ (137 ) $ 7,568 $ (323 ) $ 23,164 $ (460 ) Less than 12 months 12 months or longer Total December 31, 2015 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Government agency securities $ 16,744 $ (233 ) $ 9,770 $ (230 ) $ 26,514 $ (463 ) Collateralized mortgage obligations 1,831 (4 ) 8,200 (244 ) 10,031 (248 ) Mortgage-backed securities 66,804 (884 ) 17,936 (432 ) 84,740 (1,316 ) Corporate bonds 8,880 (120 ) - - 8,880 (120 ) Total $ 94,259 $ (1,241 ) $ 35,906 $ (906 ) $ 130,165 $ (2,147 ) The CMOs with unrealized losses for twelve months or longer at September 30, 2016 are issued or guaranteed by U.S. Government agencies or sponsored enterprises. The corporate bonds with unrealized losses for twelve months or longer at September 30, 2016 carry investment grade ratings by all major credit rating agencies including Moody’s and Standard & Poor’s. In all cases, the unrealized losses on these bonds were a result of overall market conditions including the current interest rate environment and general market liquidity. The losses were not related to a deterioration of the quality of the issuer or any company-specific adverse events. 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 OTTI was present at September 30, 2016. 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. In conjunction with the sale of Visa Class B shares in 2013, 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. The Company’s recorded liability representing the fair value of the derivative was $752 thousand at September 30, 2016 and December 31, 2015. 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 September 30, 2016 and 2015, $87 thousand and $73 thousand, respectively, in such carrying costs was expensed. For the nine months ended September 30, 2016 and 2015, $243 thousand and $214 thousand, respectively, in such carrying costs was expensed. The Company has pledged mortgage-backed securities of U.S. Government-sponsored enterprises held in its available for sale portfolio, with a market value of approximately $3 million at September 30, 2016, as collateral for the derivative swap contracts. The Company had pledged U.S. Government agency securities held in its available for sale portfolio, with a market value of approximately $3 million at December 31, 2015, as collateral for such 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 September 30, 2016 and December 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	9 Months Ended
	Sep. 30, 2016
LOANS [Abstract]
LOANS	4. LOANS At September 30, 2016 and December 31, 2015, net loans disaggregated by class consisted of the following (in thousands): September 30, 2016 December 31, 2015 Commercial and industrial $ 210,510 $ 189,769 Commercial real estate 728,562 696,787 Multifamily 418,108 426,549 Mixed use commercial 82,527 78,787 Real estate construction 43,190 37,233 Residential mortgages 180,831 186,313 Home equity 42,407 44,951 Consumer 4,651 6,058 Gross loans 1,710,786 1,666,447 Allowance for loan losses (20,465 ) (20,685 ) Net loans at end of period $ 1,690,321 $ 1,645,762 There were no loans in the process of foreclosure collateralized by residential real estate property at September 30, 2016. The following summarizes the activity in the allowance for loan losses disaggregated by class for the periods indicated (in thousands). Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Balance at beginning of period Charge- offs Recoveries Provision (credit) for loan losses Balance at end of period Balance at beginning of period Charge- offs Recoveries (Credit) provision for loan losses Balance at end of period Commercial and industrial $ 1,814 $ (216 ) $ 48 $ 226 $ 1,872 $ 2,073 $ (252 ) $ 138 $ (62 ) $ 1,897 Commercial real estate 7,746 - 14 48 7,808 6,000 - 10 420 6,430 Multifamily 4,898 - - (721 ) 4,177 4,065 - - 252 4,317 Mixed use commercial 842 - - (78 ) 764 465 - - 129 594 Real estate construction 456 - - 48 504 478 - - 8 486 Residential mortgages 2,193 - - (104 ) 2,089 2,571 - 4 120 2,695 Home equity 580 - 4 (40 ) 544 672 - 10 (6 ) 676 Consumer 60 (1 ) 1 1 61 150 (1 ) 5 (29 ) 125 Unallocated 2,376 - - 270 2,646 3,577 - - (482 ) 3,095 Total $ 20,965 $ (217 ) $ 67 $ (350 ) $ 20,465 $ 20,051 $ (253 ) $ 167 $ 350 $ 20,315 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Balance at beginning of period Charge- offs Recoveries Provision (credit) for loan losses Balance at end of period Balance at beginning of period Charge- offs Recoveries (Credit) provision for loan losses Balance at end of period Commercial and industrial $ 1,875 $ (216 ) $ 121 $ 92 $ 1,872 $ 1,560 $ (744 ) $ 1,174 $ (93 ) $ 1,897 Commercial real estate 7,019 - 32 757 7,808 6,777 - 28 (375 ) 6,430 Multifamily 4,688 - - (511 ) 4,177 4,018 - - 299 4,317 Mixed use commercial 766 - - (2 ) 764 261 - - 333 594 Real estate construction 386 - - 118 504 383 - - 103 486 Residential mortgages 2,476 - 5 (392 ) 2,089 3,027 - 31 (363 ) 2,695 Home equity 639 (8 ) 9 (96 ) 544 709 - 17 (50 ) 676 Consumer 106 (68 ) 5 18 61 166 (11 ) 20 (50 ) 125 Unallocated 2,730 - - (84 ) 2,646 2,299 - - 796 3,095 Total $ 20,685 $ (292 ) $ 172 $ (100 ) $ 20,465 $ 19,200 $ (755 ) $ 1,270 $ 600 $ 20,315 At September 30, 2016 and December 31, 2015, 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 September 30, 2016 and December 31, 2015 disaggregated by class and impairment methodology (in thousands). Allowance for Loan Losses Loan Balances September 30, 2016 Individually evaluated for impairment Collectively evaluated for impairment Ending balance Individually evaluated for impairment Collectively evaluated for impairment Ending balance Commercial and industrial $ - $ 1,872 $ 1,872 $ 4,157 $ 206,353 $ 210,510 Commercial real estate - 7,808 7,808 3,590 724,972 728,562 Multifamily - 4,177 4,177 - 418,108 418,108 Mixed use commercial - 764 764 - 82,527 82,527 Real estate construction - 504 504 - 43,190 43,190 Residential mortgages 426 1,663 2,089 4,909 175,922 180,831 Home equity 136 408 544 1,655 40,752 42,407 Consumer 25 36 61 214 4,437 4,651 Unallocated - 2,646 2,646 - - - Total $ 587 $ 19,878 $ 20,465 $ 14,525 $ 1,696,261 $ 1,710,786 Allowance for Loan Losses Loan Balances December 31, 2015 Individually evaluated for impairment Collectively evaluated for impairment Ending balance Individually evaluated for impairment Collectively evaluated for impairment Ending balance Commercial and industrial $ - $ 1,875 $ 1,875 $ 2,872 $ 186,897 $ 189,769 Commercial real estate - 7,019 7,019 4,334 692,453 696,787 Multifamily - 4,688 4,688 - 426,549 426,549 Mixed use commercial - 766 766 - 78,787 78,787 Real estate construction - 386 386 - 37,233 37,233 Residential mortgages 559 1,917 2,476 5,817 180,496 186,313 Home equity 170 469 639 1,683 43,268 44,951 Consumer 48 58 106 379 5,679 6,058 Unallocated - 2,730 2,730 - - - Total $ 777 $ 19,908 $ 20,685 $ 15,085 $ 1,651,362 $ 1,666,447 The following table presents the Company’s impaired loans disaggregated by class at September 30, 2016 and December 31, 2015 (in thousands). September 30, 2016 December 31, 2015 Unpaid Principal Balance Recorded Balance Allowance Allocated Unpaid Principal Balance Recorded Balance Allowance Allocated With no allowance recorded: Commercial and industrial $ 4,157 $ 4,157 $ - $ 2,869 $ 2,869 $ - Commercial real estate 4,009 3,590 - 4,753 4,334 - Residential mortgages 3,021 2,892 - 3,076 2,947 - Home equity 1,301 1,301 - 1,233 1,233 - Consumer 121 121 - 207 207 - Subtotal 12,609 12,061 - 12,138 11,590 - With an allowance recorded: Commercial and industrial - - - 3 3 - Residential mortgages 2,017 2,017 426 2,870 2,870 559 Home equity 371 354 136 586 450 170 Consumer 93 93 25 172 172 48 Subtotal 2,481 2,464 587 3,631 3,495 777 Total $ 15,090 $ 14,525 $ 587 $ 15,769 $ 15,085 $ 777 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 and nine months ended September 30, 2016 and 2015 (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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Average recorded investment in impaired loans Interest income recognized on impaired loans Average recorded investment in impaired loans Interest income recognized on impaired loans Average recorded investment in impaired loans Interest income recognized on impaired loans Average recorded investment in impaired loans Interest income recognized on impaired loans Commercial and industrial $ 4,322 $ 68 $ 2,322 $ 226 $ 4,034 $ 103 $ 3,331 $ 485 Commercial real estate 3,567 59 6,213 48 4,090 135 8,590 647 Residential mortgages 4,936 52 5,817 166 5,248 148 5,604 245 Home equity 1,658 17 1,752 15 1,658 48 1,687 43 Consumer 215 3 349 5 270 10 374 11 Total $ 14,698 $ 199 $ 16,453 $ 460 $ 15,300 $ 444 $ 19,586 $ 1,431 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 $473 thousand and $534 thousand of specific reserves to customers whose loan terms have been modified as TDRs as of September 30, 2016 and December 31, 2015, 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. At September 30, 2016 and December 31, 2015, $45 thousand was committed to be advanced in connection with TDRs, 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 September 30, 2016 and December 31, 2015 are as follows (dollars in thousands): September 30, 2016 December 31, 2015 TDRs Outstanding Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 11 $ 2,924 17 $ 1,116 Commercial real estate 4 2,953 5 4,131 Residential mortgages 22 4,724 22 4,653 Home equity 5 1,361 5 1,362 Consumer 6 214 8 301 Total 48 $ 12,176 57 $ 11,563 The following presents, disaggregated by class, information regarding TDRs executed during the three and nine months ended September 30, 2016 and 2015 (dollars in thousands): Three Months Ended September 30, 2016 2015 New TDRs Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Commercial and industrial 2 $ 2,196 $ 2,207 1 $ 8 $ 8 Home equity - - - 1 192 192 Consumer - - - 1 43 43 Total 2 $ 2,196 $ 2,207 3 $ 243 $ 243 Nine Months Ended September 30, 2016 2015 New TDRs Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Commercial and Industrial 2 $ 2,196 $ 2,207 3 $ 343 $ 343 Residential mortgages - - - 2 194 199 Home equity - - - 1 192 192 Consumer - - - 1 43 43 Total 2 $ 2,196 $ 2,207 7 $ 772 $ 777 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 and nine months ended September 30, 2016 and 2015. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Defaulted TDRs Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Consumer - $ - - $ - - $ - 1 $ 46 Total - $ - - $ - - $ - 1 $ 46 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. At September 30, 2016 and December 31, 2015, non-accrual loans disaggregated by class were as follows (dollars in thousands): September 30, 2016 December 31, 2015 Non- accrual loans % of Total Total Loans % of Total Loans Non- accrual loans % of Total Total Loans % of Total Loans Commercial and industrial $ 3,602 57.1 % $ 210,510 0.2 % $ 1,954 35.3 % $ 189,769 0.1 % Commercial real estate 2,167 34.3 728,562 0.1 1,733 31.4 696,787 0.1 Multifamily - - 418,108 - - - 426,549 - Mixed use commercial - - 82,527 - - - 78,787 - Real estate construction - - 43,190 - - - 37,233 - Residential mortgages 361 5.7 180,831 0.1 1,358 24.6 186,313 0.1 Home equity 185 2.9 42,407 - 406 7.3 44,951 - Consumer - - 4,651 - 77 1.4 6,058 - Total $ 6,315 100.0 % $ 1,710,786 0.4 % $ 5,528 100.0 % $ 1,666,447 0.3 % Additional interest income of approximately $93 thousand and $138 thousand would have been recorded during the three months ended September 30, 2016 and 2015, respectively, and $315 thousand and $270 thousand during the nine months ended September 30, 2016 and 2015, respectively, if non-accrual loans had performed in accordance with their original terms. At September 30, 2016 and December 31, 2015, past due loans disaggregated by class were as follows (in thousands). Past Due September 30, 2016 30 - 59 days 60 - 89 days 90 days and over Total Current Total Commercial and industrial $ 334 $ 31 $ 3,602 $ 3,967 $ 206,543 $ 210,510 Commercial real estate 278 - 2,167 2,445 726,117 728,562 Multifamily - - - - 418,108 418,108 Mixed use commercial - - - - 82,527 82,527 Real estate construction - - - - 43,190 43,190 Residential mortgages 1,052 - 361 1,413 179,418 180,831 Home equity 297 - 185 482 41,925 42,407 Consumer 1 - - 1 4,650 4,651 Total $ 1,962 $ 31 $ 6,315 $ 8,308 $ 1,702,478 $ 1,710,786 % of Total Loans 0.1 % 0.0 % 0.4 % 0.5 % 99.5 % 100.0 % Past Due December 31, 2015 30 - 59 days 60 - 89 days 90 days and over Total Current Total Commercial and industrial $ 21 $ - $ 1,954 $ 1,975 $ 187,794 $ 189,769 Commercial real estate - - 1,733 1,733 695,054 696,787 Multifamily - - - - 426,549 426,549 Mixed use commercial - - - - 78,787 78,787 Real estate construction - - - - 37,233 37,233 Residential mortgages 512 175 1,358 2,045 184,268 186,313 Home equity 336 - 406 742 44,209 44,951 Consumer 2 - 77 79 5,979 6,058 Total $ 871 $ 175 $ 5,528 $ 6,574 $ 1,659,873 $ 1,666,447 % of Total Loans 0.1 % 0.0 % 0.3 % 0.4 % 99.6 % 100.0 % The Company utilizes an eight-grade risk-rating system for loans. Loans in risk grades 1- 4 are considered pass loans. The Company’s risk grades are as follows: Risk Grade 1, Excellent Risk Grade 2, Good Risk Grade 3, Satisfactory · 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 Company 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 Risk Grade 5, Special Mention Risk Grade 6, 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 Company 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 · 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 The Company annually reviews the ratings on all loans greater than $750 thousand. Annually, the Company engages an independent third-party to review a significant portion of loans within the commercial and industrial, commercial real estate, multifamily, mixed use commercial 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 September 30, 2016 and December 31, 2015 (in thousands). September 30, 2016 December 31, 2015 Grade Grade Pass Special mention Substandard Total Pass Special mention Substandard Total Commercial and industrial $ 195,931 $ 9,227 $ 5,352 $ 210,510 $ 180,024 $ 3,088 $ 6,657 $ 189,769 Commercial real estate 714,401 5,103 9,058 728,562 687,210 6,109 3,468 696,787 Multifamily 418,108 - - 418,108 426,549 - - 426,549 Mixed use commercial 80,265 2,262 - 82,527 78,779 - 8 78,787 Real estate construction 42,028 1,162 - 43,190 37,233 - - 37,233 Residential mortgages 180,299 - 532 180,831 184,781 - 1,532 186,313 Home equity 42,223 - 184 42,407 44,545 - 406 44,951 Consumer 4,651 - - 4,651 5,939 - 119 6,058 Total $ 1,677,906 $ 17,754 $ 15,126 $ 1,710,786 $ 1,645,060 $ 9,197 $ 12,190 $ 1,666,447 % of Total 98.1 % 1.0 % 0.9 % 100.0 % 98.7 % 0.6 % 0.7 % 100.0 % 5. 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. Certain provisions of the Company’s retirement plan were amended in 2012. These amendments froze the plan such that no additional pension benefits would accumulate. The Company did not record any net pension credit or expense for the three months ended September 30, 2016. For the three months ended September 30, 2015, the Company’s net periodic pension credit was $111 thousand, and $13 thousand and $333 thousand, respectively, for the nine months ended September 30, 2016 and 2015. In December 2015, the Company made an optional contribution of $1 million for the plan year ended September 30, 2016. No minimum contribution was required. The Company does not presently expect to contribute to its retirement plan in 2016.

RETIREMENT PLAN

RETIREMENT PLAN	9 Months Ended
	Sep. 30, 2016
RETIREMENT PLAN [Abstract]
RETIREMENT PLAN	5. 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. Certain provisions of the Company’s retirement plan were amended in 2012. These amendments froze the plan such that no additional pension benefits would accumulate. The Company did not record any net pension credit or expense for the three months ended September 30, 2016. For the three months ended September 30, 2015, the Company’s net periodic pension credit was $111 thousand, and $13 thousand and $333 thousand, respectively, for the nine months ended September 30, 2016 and 2015. In December 2015, the Company made an optional contribution of $1 million for the plan year ended September 30, 2016. No minimum contribution was required. The Company does not presently expect to contribute to its retirement plan in 2016.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2016
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. No options have been granted since 2013. Options granted in 2013 and 2012 were exercisable commencing one year from the date of grant at a rate of one-third per year. Options granted prior to 2012 were generally 100% exercisable commencing one year from the date of grant. All options are exercisable for a period of ten years or less. No options were exercised during the first nine months of 2016. The total intrinsic value of options exercised during the first nine months of 2015 was $438 thousand. The total cash received from the 2015 option exercises was $539 thousand, excluding the tax benefit realized. In exercising those options, 39,334 shares of the Company’s common stock were issued. 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 September 30, 2016, there were 6,000 SARs outstanding related to options granted before 2011, with a total intrinsic value of $30 thousand. 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 of Shares Weighted-Average Exercise Price Per Share Outstanding, January 1, 2016 185,100 $ 15.73 Granted - - Exercised - - Forfeited or expired (3,000 ) $ 34.95 Outstanding, September 30, 2016 182,100 $ 15.41 The following summarizes shares subject to purchase from stock options outstanding and exercisable as of September 30, 2016: Outstanding Exercisable Range of Exercise Prices Shares Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Shares Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price $10.00 - $14.00 90,000 5.3 years $ 11.68 73,334 5.3 years $ 11.88 $14.01 - $20.00 83,100 6.8 years $ 17.80 78,600 6.8 years $ 17.69 $20.01 - $30.00 3,000 2.3 years $ 28.30 3,000 2.3 years $ 28.30 $30.01 - $40.00 6,000 0.8 years $ 32.04 6,000 0.8 years $ 32.04 182,100 5.8 years $ 15.41 160,934 5.8 years $ 15.78 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 nine months of 2016 and 2015, the Company awarded 54,871 and 71,612 shares, respectively, of restricted stock to certain key employees and directors. Generally, the restricted stock awards vest over a three-year period commencing one year from the date of grant at a rate of one-third per year. The fair value at grant date of the 48,899 and 25,948 restricted shares that vested during the first nine months of 2016 and 2015, respectively, was $1.1 million and $585 thousand, respectively. Of the vested shares, 10,380 and 4,787, respectively, were withheld to pay taxes due upon vesting. A summary of restricted stock activity for the first nine months of 2016 follows: Number of Shares Weighted-Average Grant-Date Fair Value Unvested, January 1, 2016 108,073 $ 22.94 Granted 54,871 $ 25.85 Vested (48,899 ) $ 22.98 Forfeited or expired (3,989 ) $ 23.38 Unvested, September 30, 2016 110,056 $ 24.35 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 $763 thousand and $626 thousand for the nine months ended September 30, 2016 and 2015, respectively. The remaining unrecognized compensation cost of approximately $4 thousand and $1.9 million at September 30, 2016 related to stock options and restricted stock, respectively, will be expensed over the remaining weighted average vesting period of approximately 0.2 years and 1.8 years, respectively. Under the 2009 Plan, a total of 500,000 shares of the Company’s common stock were reserved for issuance, of which 122,428 shares remained for possible issuance at September 30, 2016. There are no remaining shares reserved for issuance under the 1999 Stock Option Plan.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016, the Company had net operating loss carryforwards of approximately $2.8 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 $138 thousand, 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 had no unrecognized tax benefits at September 30, 2016 and 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. The Company’s Federal tax returns were audited for the tax years 2010 through 2013; there was no significant change in income taxes as a result of these audits.

REGULATORY MATTERS

REGULATORY MATTERS	9 Months Ended
	Sep. 30, 2016
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 business, results of operations and financial condition. 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). The Office of the Comptroller of the Currency (“OCC”), the Company’s primary bank regulator, established higher capital requirements for the Bank than those set forth in its capital regulations that require the Bank to maintain a tier 1 leverage ratio of at least 9%, a tier 1 risk-based capital ratio of at least 11% and a total risk-based capital ratio of at least 12%. At September 30, 2016, the Bank satisfied the OCC’s regulatory capital requirements as well as these individual minimum capital ratios, although there is no guarantee that the Bank will be able to maintain compliance with these heightened capital ratios. In July 2013, the 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. 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 its capital needs. The final capital rules 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 capital buffer requirement is being phased in beginning January 1, 2016 at 0.625% per year until it becomes 2.50% in 2019 and thereafter. At September 30, 2016, the Company’s and the Bank’s capital buffers were in excess of both the current and fully phased-in requirements. The Bank’s capital amounts (in thousands) and ratios are presented in the table that follows. The minimum amounts presented therein reference the minimums required by capital regulations and not the individual minimum capital ratios the OCC established for the Bank. Actual capital ratios Minimum for capital adequacy Minimum to be Well Capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio September 30, 2016 Total capital to risk-weighted assets $ 238,309 13.81 % $ 138,032 8.00 % $ 172,541 10.00 % Tier 1 capital to risk-weighted assets 217,604 12.61 % 103,524 6.00 % 138,032 8.00 % Common equity tier 1 capital to risk-weighted assets 217,604 12.61 % 77,643 4.50 % 112,151 6.50 % Tier 1 capital to adjusted average assets (leverage) 217,604 9.94 % 87,544 4.00 % 109,430 5.00 % December 31, 2015 Total capital to risk-weighted assets $ 219,562 12.66 % $ 138,716 8.00 % $ 173,395 10.00 % Tier 1 capital to risk-weighted assets 198,587 11.45 % 104,037 6.00 % 138,716 8.00 % Common equity tier 1 capital to risk-weighted assets 198,587 11.45 % 78,028 4.50 % 112,706 6.50 % Tier 1 capital to adjusted average assets (leverage) 198,587 9.58 % 82,905 4.00 % 103,632 5.00 % The Company’s tier 1 leverage, common equity tier 1 risk-based, tier 1 risk-based and total risk-based capital ratios were 10.04%, 12.73%, 12.73% and 13.93%, respectively, at September 30, 2016. The Company’s tier 1 leverage, common equity tier 1 risk-based, tier 1 risk-based and total risk-based capital ratios were 9.77%, 11.68%, 11.68% and 12.89%, respectively, at December 31, 2015. 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	9 Months Ended
	Sep. 30, 2016
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. T he Company 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. T he Company 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 Level in September 30, 2016 December 31, 2015 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial Assets: Cash and due from banks Level 1 $ 181,929 $ 181,929 $ 98,086 $ 98,086 Federal Reserve and Federal Home Loan Bank stock and other investments Level 2 4,528 4,528 10,756 10,756 Investment securities held to maturity Level 2 18,896 19,633 61,309 63,272 Investment securities available for sale Level 2 194,273 194,273 247,099 247,099 Loans held for sale Level 2 1,504 1,504 1,666 1,666 Loans, net of allowance Level 2, 3 (1) 1,690,321 1,687,501 1,645,762 1,628,169 Accrued interest and loan fees receivable Level 2 5,840 5,840 5,859 5,859 Financial Liabilities: Non-maturity deposits Level 2 1,724,968 1,724,968 1,555,980 1,555,980 Time deposits Level 2 219,232 219,146 224,643 224,408 Borrowings Level 2 15,000 15,224 165,000 164,827 Accrued interest payable Level 2 156 156 198 198 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. 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 Company’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 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. OREO properties are initially recorded at fair value, less estimated costs to sell when acquired, establishing a new cost basis. Adjustments to OREO are measured at fair value, less estimated costs to sell. Fair values are generally based on third party appraisals or realtor evaluations of the property. These appraisals and evaluations may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, an impairment loss is recognized through a valuation allowance, and the property is reported as non-recurring Level 3. No valuation allowance was recorded for OREO at September 30, 2016. In conjunction with the sale of Visa Class B shares in 2013, the Company entered into derivative swap contracts with the purchaser of its Visa Class B shares. The fair value of these derivatives is measured using an internal model that includes the use of probability weighted scenarios for estimates of Visa’s aggregate exposure to the litigation matters, with consideration of amounts funded by Visa into its escrow account for this litigation. At September 30, 2016, 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: September 30, 2016 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Impaired loans $ 1,877 $ 1,877 OREO 650 650 Total $ 2,527 $ 2,527 Assets: December 31, 2015 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Impaired loans $ 2,715 $ 2,715 Total $ 2,715 $ 2,715 The Company had no liabilities measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015. 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: September 30, 2016 December 31, 2015 Valuation Technique Unobservable Inputs Discount Impaired loans: Residential mortgages $ 1,591 $ 2,311 Third party appraisal Discount to appraised value 25 %(1) Home equity 218 280 Third party appraisal Discount to appraised value 25 %(1) Consumer 68 124 Third party appraisal Discount to appraised value 25 %(2) Total $ 1,877 $ 2,715 OREO $ 650 $ - Third party appraisal Estimated holding/selling costs 11 % (1) Of which estimated selling costs are approximately 9% - 15% of the total discount. (2) Of which estimated selling costs are approximately 10% - 12% of the total discount. The following presents fair value measurements on a recurring basis at September 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements Using Assets: September 30, 2016 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Obligations of states and political subdivisions $ 71,958 $ 71,958 $ - Collateralized mortgage obligations 18,396 18,396 - Mortgage-backed securities 95,294 95,294 - Corporate bonds 8,625 8,625 - Total $ 194,273 $ 194,273 $ - Liabilities: Derivatives $ 752 $ - $ 752 Total $ 752 $ - $ 752 Fair Value Measurements Using Assets: December 31, 2015 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Government agency securities $ 28,516 $ 28,516 $ - Obligations of states and political subdivisions 104,682 104,682 - Collateralized mortgage obligations 15,549 15,549 - Mortgage-backed securities 92,442 92,442 - Corporate bonds 5,910 5,910 - Total $ 247,099 $ 247,099 $ - 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Liabilities Derivatives Liabilities Derivatives Liabilities Derivatives Liabilities Derivatives Beginning balance $ 752 $ 752 $ 752 $ 752 Net change - - - - Ending balance $ 752 $ 752 $ 752 $ 752

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	9 Months Ended
	Sep. 30, 2016
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. On July 1, 2016, July 13, 2016 and August 4, 2016, respectively, actions captioned Thaler/Howell Foundation v. Suffolk Bancorp et al Levy v. Suffolk Bancorp et al Parshall v. Suffolk Bancorp, et al Thaler/Howell Foundation Thaler/Howell Foundation Levy Thaler/Howell Foundation Parshall On September 27, 2016, the Company, People’s United and the individual defendants in the Merger-Related Actions entered into a memorandum of understanding (the “MOU”) with the plaintiffs in the Merger-Related Actions regarding the settlement of the Merger-Related Actions, which the Company previously reported on a Current Report on Form 8-K filed on September 28, 2016. The Company, People’s United and the other defendants in the Merger-Related Actions deny all of the allegations in the Merger-Related Actions. Nevertheless, the Company, People’s United and the other defendants have agreed to settle the Merger-Related Actions in order to avoid the costs, disruption and distraction of further litigation. The MOU contemplates that the parties thereto would enter into a stipulation of settlement with respect to the Merger-Related Actions, which would be subject to customary conditions, including court approval following notice to the Company’s shareholders. The MOU also contemplates that in the event that the parties enter into such a stipulation of settlement, a hearing would be scheduled at which a court overseeing the Merger-Related Actions would consider the fairness, reasonableness and adequacy of the settlement. If the settlement is finally approved by the court, it would resolve and release all claims that were brought or could have been brought in the Merger-Related Actions, including claims challenging any disclosure made in connection with the merger. In addition, in connection with the settlement, the MOU contemplates that counsel for the plaintiffs in the Merger-Related Actions will file a petition for an award of attorneys’ fees and expenses in an amount not to exceed $300,000 to be paid by the Company or its successor. If the court approves the settlement contemplated by the MOU, the Merger-Related Actions will be dismissed with prejudice. 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. 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	9 Months Ended
	Sep. 30, 2016
BORROWINGS [Abstract]
BORROWINGS	11. BORROWINGS The following summarizes borrowed funds at September 30, 2016 and December 31, 2015 (dollars in thousands): As of or for the Nine Months Ended September 30, 2016 Federal Home Loan Bank Borrowings Short-Term Federal Home Loan Bank Borrowings Long-Term Federal Funds Purchased Daily average outstanding $ 63,201 $ 15,000 $ 2 Total interest cost 276 198 - Average interest rate paid 0.58 % 1.76 % 0.74 % Maximum amount outstanding at any month-end $ 160,000 $ 15,000 $ - Ending balance - 15,000 - Weighted-average interest rate on balances outstanding - % 1.76 % - % As of or for the Year Ended December 31, 2015 Federal Home Loan Bank Borrowings Short-Term Federal Home Loan Bank Borrowings Long-Term Federal Funds Purchased Daily average outstanding $ 63,935 $ 10,808 $ 3 Total interest cost 252 190 - Average interest rate paid 0.39 % 1.76 % 0.45 % Maximum amount outstanding at any month-end $ 155,000 $ 15,000 $ - Ending balance 150,000 15,000 - Weighted-average interest rate on balances outstanding 0.52 % 1.76 % - % Assets pledged as collateral to the Federal Home Loan Bank (“FHLB”), consisting of eligible loans and investment securities, at September 30, 2016 and December 31, 2015 resulted in a maximum borrowing potential of $663 million and $746 million, respectively. The Company had $15 million and $165 million in FHLB borrowings at September 30, 2016 and December 31, 2015, respectively.

FINANCIAL STATEMENT PRESENTAT21

FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Earnings Per Share	Earnings Per Share The reconciliation of basic and diluted weighted average number of common shares outstanding for the three and nine months ended September 30, 2016 and 2015 follows. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Weighted average common shares outstanding 11,788,825 11,674,697 11,752,237 11,636,155 Weighted average unvested restricted shares 113,041 111,034 116,753 106,921 Weighted average shares for basic earnings per share 11,901,866 11,785,731 11,868,990 11,743,076 Additional diluted shares: Stock options 98,485 77,568 81,605 74,823 Weighted average shares for diluted earnings per share 12,000,351 11,863,299 11,950,595 11,817,899
Loans and Loan Interest Income Recognition	Loans and Loan Interest Income Recognition 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. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. 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 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 include consideration of the following: levels and trends in various risk rating categories; 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. 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
Other Real Estate Owned ("OREO")	Other Real Estate Owned (“OREO”)
Bank-Owned Life Insurance	Bank-Owned Life Insurance
Derivatives	Derivatives
Recent Accounting Guidance	Recent Accounting Guidance In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model and provides for recording credit losses on available-for-sale debt securities through an allowance account. The ASU also requires certain incremental disclosures. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the pending adoption of the ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718), “Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. In addition, the ASU elevates the statutory tax withholding threshold to qualify for equity classification up to the maximum statutory tax rates in the applicable jurisdiction(s). The ASU also clarifies that cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The ASU provides an optional accounting policy election (with limited exceptions), to be applied on an entity-wide basis, to either estimate the number of awards that are expected to vest (consistent with existing U.S. GAAP) or account for forfeitures when they occur. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the pending adoption of the ASU on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of the pending adoption of the ASU on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), “Recognition and Measurement of Financial Assets and Financial Liabilities” which requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in other comprehensive income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of available for sale debt securities in combination with other deferred tax assets. This ASU provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes and also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. For public entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Generally, early adoption of the amendments in this ASU is not permitted. The Company believes that adoption in 2018 will not 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 FASB subsequently issued ASU 2016-08 which updates the new standard by clarifying the principal versus agent implementation guidance, ASU 2016-10 which clarifies identifying performance obligations and the licensing implementation guidance and ASU 2016-12 which clarifies the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration and certain transition matters, but these do not change the core principle of the new standard. The FASB also subsequently issued ASU 2015-14 to defer the effective date of the new standard by one year. As such, it now takes effect for public entities in fiscal years beginning after December 15, 2017, 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). Early adoption is permitted for any entity that chooses to adopt the new standard as of the original effective date. The Company has not yet determined the method by which it will adopt ASU 2014-09 in 2018 and does not believe that the adoption will have a material effect on the Company’s consolidated financial statements.

FINANCIAL STATEMENT PRESENTAT22

FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2016
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 and nine months ended September 30, 2016 and 2015 follows. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Weighted average common shares outstanding 11,788,825 11,674,697 11,752,237 11,636,155 Weighted average unvested restricted shares 113,041 111,034 116,753 106,921 Weighted average shares for basic earnings per share 11,901,866 11,785,731 11,868,990 11,743,076 Additional diluted shares: Stock options 98,485 77,568 81,605 74,823 Weighted average shares for diluted earnings per share 12,000,351 11,863,299 11,950,595 11,817,899

ACCUMULATED OTHER COMPREHENSI23

ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS ("AOCI") (Tables)	9 Months Ended
	Sep. 30, 2016
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS ("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 and nine months ended September 30, 2016 and 2015 follow (in thousands). Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Unrealized Gains and Losses on Available for Sale Securities Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity Pension and Post- Retirement Plan Items Total Unrealized Gains and Losses on Available for Sale Securities Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity Pension and Post- Retirement Plan Items Total Beginning balance $ 3,602 $ (484 ) $ (8,617 ) $ (5,499 ) $ 2,108 $ (1,724 ) $ (7,675 ) $ (7,291 ) Other comprehensive (loss) income before reclassifications (826 ) - - (826 ) 1,087 - - 1,087 Amounts reclassified from AOCI (309 ) 411 - 102 (79 ) 55 - (24 ) Net other comprehensive (loss) income (1,135 ) 411 - (724 ) 1,008 55 - 1,063 Ending balance $ 2,467 $ (73 ) $ (8,617 ) $ (6,223 ) $ 3,116 $ (1,669 ) $ (7,675 ) $ (6,228 ) Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Unrealized Gains and Losses on Available for Sale Securities Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity Pension and Post- Retirement Plan Items Total Unrealized Gains and Losses on Available for Sale Securities Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity Pension and Post- Retirement Plan Items Total Beginning balance $ 1,436 $ (1,395 ) $ (8,617 ) $ (8,576 ) $ 2,637 $ (1,805 ) $ (7,675 ) $ (6,843 ) Other comprehensive income before reclassifications 1,354 - - 1,354 670 - - 670 Amounts reclassified from AOCI (323 ) 1,322 - 999 (191 ) 136 - (55 ) Net other comprehensive income 1,031 1,322 - 2,353 479 136 - 615 Ending balance $ 2,467 $ (73 ) $ (8,617 ) $ (6,223 ) $ 3,116 $ (1,669 ) $ (7,675 ) $ (6,228 )
Reclassifications out of AOCI	Reclassifications out of AOCI for the three and nine months ended September 30, 2016 and 2015 follow (in thousands). Amount Reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Statement Details about AOCI Components 2016 2015 2016 2015 Where Net Income is Presented Unrealized gains and losses on available for sale securities $ 523 $ 133 $ 547 $ 319 Net gain on sale of securities available for sale Unrealized losses on securities transferred from available for sale to held to maturity (690 ) (69 ) (2,200 ) (203 ) Interest income - U.S. Government agency obligations Subtotal, pre-tax (167 ) 64 (1,653 ) 116 Income tax effect 65 (40 ) 654 (61 ) Income tax expense Total, net of tax $ (102 ) $ 24 $ (999 ) $ 55

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 and December 31, 2015 were as follows (in thousands): September 30, 2016 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale: U.S. Government agency securities $ - $ - $ - $ - $ 28,977 $ 2 $ (463 ) $ 28,516 Obligations of states and political subdivisions 69,239 2,719 - 71,958 100,215 4,467 - 104,682 Collateralized mortgage obligations 18,412 57 (73 ) 18,396 15,795 2 (248 ) 15,549 Mortgage-backed securities 93,442 1,864 (12 ) 95,294 93,719 39 (1,316 ) 92,442 Corporate bonds 9,000 - (375 ) 8,625 6,000 - (90 ) 5,910 Total available for sale securities 190,093 4,640 (460 ) 194,273 244,706 4,510 (2,117 ) 247,099 Held to maturity: U.S. Government agency securities 2,375 125 - 2,500 43,570 1,450 - 45,020 Obligations of states and political subdivisions 10,521 449 - 10,970 11,739 536 - 12,275 Corporate bonds 6,000 163 - 6,163 6,000 7 (30 ) 5,977 Total held to maturity securities 18,896 737 - 19,633 61,309 1,993 (30 ) 63,272 Total investment securities $ 208,989 $ 5,377 $ (460 ) $ 213,906 $ 306,015 $ 6,503 $ (2,147 ) $ 310,371
Investment securities amortized cost, maturities, and approximate fair value	The amortized cost, contractual maturities and fair value of the Company’s investment securities at September 30, 2016 (in thousands) are presented in the table below. Collateralized mortgage obligations (“CMOs”) and mortgage-backed securities (“MBS”) assume maturity dates pursuant to average lives. September 30, 2016 Amortized Cost Fair Value Securities available for sale: Due in one year or less $ 22,134 $ 22,402 Due from one to five years 129,676 133,050 Due from five to ten years 38,283 38,821 Total securities available for sale 190,093 194,273 Securities held to maturity: Due in one year or less 2,636 2,714 Due from one to five years 1,344 1,393 Due from five to ten years 8,375 8,663 Due after ten years 6,541 6,863 Total securities held to maturity 18,896 19,633 Total investment securities $ 208,989 $ 213,906
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 (in thousands) for the periods indicated. Realized gains are also inclusive of gains on called securities. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Proceeds $ 6,615 $ 3,077 $ 6,615 $ 10,080 Gross realized gains $ 523 $ 133 $ 547 $ 334 Gross realized losses - - - (15 ) Net realized gains $ 523 $ 133 $ 547 $ 319
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 September 30, 2016 and December 31, 2015, 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 September 30, 2016 Fair Unrealized Fair Unrealized Fair Unrealized Collateralized mortgage obligations $ 6,159 $ (50 ) $ 1,868 $ (23 ) $ 8,027 $ (73 ) Mortgage-backed securities 6,512 (12 ) - - 6,512 (12 ) Corporate bonds 2,925 (75 ) 5,700 (300 ) 8,625 (375 ) Total $ 15,596 $ (137 ) $ 7,568 $ (323 ) $ 23,164 $ (460 ) Less than 12 months 12 months or longer Total December 31, 2015 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Government agency securities $ 16,744 $ (233 ) $ 9,770 $ (230 ) $ 26,514 $ (463 ) Collateralized mortgage obligations 1,831 (4 ) 8,200 (244 ) 10,031 (248 ) Mortgage-backed securities 66,804 (884 ) 17,936 (432 ) 84,740 (1,316 ) Corporate bonds 8,880 (120 ) - - 8,880 (120 ) Total $ 94,259 $ (1,241 ) $ 35,906 $ (906 ) $ 130,165 $ (2,147 )

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2016
LOANS [Abstract]
Categorizes total loans	At September 30, 2016 and December 31, 2015, net loans disaggregated by class consisted of the following (in thousands): September 30, 2016 December 31, 2015 Commercial and industrial $ 210,510 $ 189,769 Commercial real estate 728,562 696,787 Multifamily 418,108 426,549 Mixed use commercial 82,527 78,787 Real estate construction 43,190 37,233 Residential mortgages 180,831 186,313 Home equity 42,407 44,951 Consumer 4,651 6,058 Gross loans 1,710,786 1,666,447 Allowance for loan losses (20,465 ) (20,685 ) Net loans at end of period $ 1,690,321 $ 1,645,762
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 September 30, 2016 Three Months Ended September 30, 2015 Balance at beginning of period Charge- offs Recoveries Provision (credit) for loan losses Balance at end of period Balance at beginning of period Charge- offs Recoveries (Credit) provision for loan losses Balance at end of period Commercial and industrial $ 1,814 $ (216 ) $ 48 $ 226 $ 1,872 $ 2,073 $ (252 ) $ 138 $ (62 ) $ 1,897 Commercial real estate 7,746 - 14 48 7,808 6,000 - 10 420 6,430 Multifamily 4,898 - - (721 ) 4,177 4,065 - - 252 4,317 Mixed use commercial 842 - - (78 ) 764 465 - - 129 594 Real estate construction 456 - - 48 504 478 - - 8 486 Residential mortgages 2,193 - - (104 ) 2,089 2,571 - 4 120 2,695 Home equity 580 - 4 (40 ) 544 672 - 10 (6 ) 676 Consumer 60 (1 ) 1 1 61 150 (1 ) 5 (29 ) 125 Unallocated 2,376 - - 270 2,646 3,577 - - (482 ) 3,095 Total $ 20,965 $ (217 ) $ 67 $ (350 ) $ 20,465 $ 20,051 $ (253 ) $ 167 $ 350 $ 20,315 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Balance at beginning of period Charge- offs Recoveries Provision (credit) for loan losses Balance at end of period Balance at beginning of period Charge- offs Recoveries (Credit) provision for loan losses Balance at end of period Commercial and industrial $ 1,875 $ (216 ) $ 121 $ 92 $ 1,872 $ 1,560 $ (744 ) $ 1,174 $ (93 ) $ 1,897 Commercial real estate 7,019 - 32 757 7,808 6,777 - 28 (375 ) 6,430 Multifamily 4,688 - - (511 ) 4,177 4,018 - - 299 4,317 Mixed use commercial 766 - - (2 ) 764 261 - - 333 594 Real estate construction 386 - - 118 504 383 - - 103 486 Residential mortgages 2,476 - 5 (392 ) 2,089 3,027 - 31 (363 ) 2,695 Home equity 639 (8 ) 9 (96 ) 544 709 - 17 (50 ) 676 Consumer 106 (68 ) 5 18 61 166 (11 ) 20 (50 ) 125 Unallocated 2,730 - - (84 ) 2,646 2,299 - - 796 3,095 Total $ 20,685 $ (292 ) $ 172 $ (100 ) $ 20,465 $ 19,200 $ (755 ) $ 1,270 $ 600 $ 20,315
Summary of changes in the allowance for loan losses	At September 30, 2016 and December 31, 2015, 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 September 30, 2016 and December 31, 2015 disaggregated by class and impairment methodology (in thousands). Allowance for Loan Losses Loan Balances September 30, 2016 Individually evaluated for impairment Collectively evaluated for impairment Ending balance Individually evaluated for impairment Collectively evaluated for impairment Ending balance Commercial and industrial $ - $ 1,872 $ 1,872 $ 4,157 $ 206,353 $ 210,510 Commercial real estate - 7,808 7,808 3,590 724,972 728,562 Multifamily - 4,177 4,177 - 418,108 418,108 Mixed use commercial - 764 764 - 82,527 82,527 Real estate construction - 504 504 - 43,190 43,190 Residential mortgages 426 1,663 2,089 4,909 175,922 180,831 Home equity 136 408 544 1,655 40,752 42,407 Consumer 25 36 61 214 4,437 4,651 Unallocated - 2,646 2,646 - - - Total $ 587 $ 19,878 $ 20,465 $ 14,525 $ 1,696,261 $ 1,710,786 Allowance for Loan Losses Loan Balances December 31, 2015 Individually evaluated for impairment Collectively evaluated for impairment Ending balance Individually evaluated for impairment Collectively evaluated for impairment Ending balance Commercial and industrial $ - $ 1,875 $ 1,875 $ 2,872 $ 186,897 $ 189,769 Commercial real estate - 7,019 7,019 4,334 692,453 696,787 Multifamily - 4,688 4,688 - 426,549 426,549 Mixed use commercial - 766 766 - 78,787 78,787 Real estate construction - 386 386 - 37,233 37,233 Residential mortgages 559 1,917 2,476 5,817 180,496 186,313 Home equity 170 469 639 1,683 43,268 44,951 Consumer 48 58 106 379 5,679 6,058 Unallocated - 2,730 2,730 - - - Total $ 777 $ 19,908 $ 20,685 $ 15,085 $ 1,651,362 $ 1,666,447
Summary of impaired loans	The following table presents the Company’s impaired loans disaggregated by class at September 30, 2016 and December 31, 2015 (in thousands). September 30, 2016 December 31, 2015 Unpaid Principal Balance Recorded Balance Allowance Allocated Unpaid Principal Balance Recorded Balance Allowance Allocated With no allowance recorded: Commercial and industrial $ 4,157 $ 4,157 $ - $ 2,869 $ 2,869 $ - Commercial real estate 4,009 3,590 - 4,753 4,334 - Residential mortgages 3,021 2,892 - 3,076 2,947 - Home equity 1,301 1,301 - 1,233 1,233 - Consumer 121 121 - 207 207 - Subtotal 12,609 12,061 - 12,138 11,590 - With an allowance recorded: Commercial and industrial - - - 3 3 - Residential mortgages 2,017 2,017 426 2,870 2,870 559 Home equity 371 354 136 586 450 170 Consumer 93 93 25 172 172 48 Subtotal 2,481 2,464 587 3,631 3,495 777 Total $ 15,090 $ 14,525 $ 587 $ 15,769 $ 15,085 $ 777 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 and nine months ended September 30, 2016 and 2015 (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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Average recorded investment in impaired loans Interest income recognized on impaired loans Average recorded investment in impaired loans Interest income recognized on impaired loans Average recorded investment in impaired loans Interest income recognized on impaired loans Average recorded investment in impaired loans Interest income recognized on impaired loans Commercial and industrial $ 4,322 $ 68 $ 2,322 $ 226 $ 4,034 $ 103 $ 3,331 $ 485 Commercial real estate 3,567 59 6,213 48 4,090 135 8,590 647 Residential mortgages 4,936 52 5,817 166 5,248 148 5,604 245 Home equity 1,658 17 1,752 15 1,658 48 1,687 43 Consumer 215 3 349 5 270 10 374 11 Total $ 14,698 $ 199 $ 16,453 $ 460 $ 15,300 $ 444 $ 19,586 $ 1,431
Troubled debt restructurings	Outstanding TDRs, disaggregated by class, at September 30, 2016 and December 31, 2015 are as follows (dollars in thousands): September 30, 2016 December 31, 2015 TDRs Outstanding Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 11 $ 2,924 17 $ 1,116 Commercial real estate 4 2,953 5 4,131 Residential mortgages 22 4,724 22 4,653 Home equity 5 1,361 5 1,362 Consumer 6 214 8 301 Total 48 $ 12,176 57 $ 11,563 The following presents, disaggregated by class, information regarding TDRs executed during the three and nine months ended September 30, 2016 and 2015 (dollars in thousands): Three Months Ended September 30, 2016 2015 New TDRs Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Commercial and industrial 2 $ 2,196 $ 2,207 1 $ 8 $ 8 Home equity - - - 1 192 192 Consumer - - - 1 43 43 Total 2 $ 2,196 $ 2,207 3 $ 243 $ 243 Nine Months Ended September 30, 2016 2015 New TDRs Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Number of Loans Pre-Modification Outstanding Recorded Balance Post-Modification Outstanding Recorded Balance Commercial and Industrial 2 $ 2,196 $ 2,207 3 $ 343 $ 343 Residential mortgages - - - 2 194 199 Home equity - - - 1 192 192 Consumer - - - 1 43 43 Total 2 $ 2,196 $ 2,207 7 $ 772 $ 777 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 and nine months ended September 30, 2016 and 2015. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Defaulted TDRs Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Consumer - $ - - $ - - $ - 1 $ 46 Total - $ - - $ - - $ - 1 $ 46
Summarizes non-accrual loans by loan class	At September 30, 2016 and December 31, 2015, non-accrual loans disaggregated by class were as follows (dollars in thousands): September 30, 2016 December 31, 2015 Non- accrual loans % of Total Total Loans % of Total Loans Non- accrual loans % of Total Total Loans % of Total Loans Commercial and industrial $ 3,602 57.1 % $ 210,510 0.2 % $ 1,954 35.3 % $ 189,769 0.1 % Commercial real estate 2,167 34.3 728,562 0.1 1,733 31.4 696,787 0.1 Multifamily - - 418,108 - - - 426,549 - Mixed use commercial - - 82,527 - - - 78,787 - Real estate construction - - 43,190 - - - 37,233 - Residential mortgages 361 5.7 180,831 0.1 1,358 24.6 186,313 0.1 Home equity 185 2.9 42,407 - 406 7.3 44,951 - Consumer - - 4,651 - 77 1.4 6,058 - Total $ 6,315 100.0 % $ 1,710,786 0.4 % $ 5,528 100.0 % $ 1,666,447 0.3 %
Summary of current and past due loans	At September 30, 2016 and December 31, 2015, past due loans disaggregated by class were as follows (in thousands). Past Due September 30, 2016 30 - 59 days 60 - 89 days 90 days and over Total Current Total Commercial and industrial $ 334 $ 31 $ 3,602 $ 3,967 $ 206,543 $ 210,510 Commercial real estate 278 - 2,167 2,445 726,117 728,562 Multifamily - - - - 418,108 418,108 Mixed use commercial - - - - 82,527 82,527 Real estate construction - - - - 43,190 43,190 Residential mortgages 1,052 - 361 1,413 179,418 180,831 Home equity 297 - 185 482 41,925 42,407 Consumer 1 - - 1 4,650 4,651 Total $ 1,962 $ 31 $ 6,315 $ 8,308 $ 1,702,478 $ 1,710,786 % of Total Loans 0.1 % 0.0 % 0.4 % 0.5 % 99.5 % 100.0 % Past Due December 31, 2015 30 - 59 days 60 - 89 days 90 days and over Total Current Total Commercial and industrial $ 21 $ - $ 1,954 $ 1,975 $ 187,794 $ 189,769 Commercial real estate - - 1,733 1,733 695,054 696,787 Multifamily - - - - 426,549 426,549 Mixed use commercial - - - - 78,787 78,787 Real estate construction - - - - 37,233 37,233 Residential mortgages 512 175 1,358 2,045 184,268 186,313 Home equity 336 - 406 742 44,209 44,951 Consumer 2 - 77 79 5,979 6,058 Total $ 871 $ 175 $ 5,528 $ 6,574 $ 1,659,873 $ 1,666,447 % of Total Loans 0.1 % 0.0 % 0.3 % 0.4 % 99.6 % 100.0 %
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 September 30, 2016 and December 31, 2015 (in thousands). September 30, 2016 December 31, 2015 Grade Grade Pass Special mention Substandard Total Pass Special mention Substandard Total Commercial and industrial $ 195,931 $ 9,227 $ 5,352 $ 210,510 $ 180,024 $ 3,088 $ 6,657 $ 189,769 Commercial real estate 714,401 5,103 9,058 728,562 687,210 6,109 3,468 696,787 Multifamily 418,108 - - 418,108 426,549 - - 426,549 Mixed use commercial 80,265 2,262 - 82,527 78,779 - 8 78,787 Real estate construction 42,028 1,162 - 43,190 37,233 - - 37,233 Residential mortgages 180,299 - 532 180,831 184,781 - 1,532 186,313 Home equity 42,223 - 184 42,407 44,545 - 406 44,951 Consumer 4,651 - - 4,651 5,939 - 119 6,058 Total $ 1,677,906 $ 17,754 $ 15,126 $ 1,710,786 $ 1,645,060 $ 9,197 $ 12,190 $ 1,666,447 % of Total 98.1 % 1.0 % 0.9 % 100.0 % 98.7 % 0.6 % 0.7 % 100.0 %

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2016
STOCK-BASED COMPENSATION [Abstract]
Summary of stock option activity	A summary of stock option activity follows: Number of Shares Weighted-Average Exercise Price Per Share Outstanding, January 1, 2016 185,100 $ 15.73 Granted - - Exercised - - Forfeited or expired (3,000 ) $ 34.95 Outstanding, September 30, 2016 182,100 $ 15.41
Summary of options outstanding and exercisable	The following summarizes shares subject to purchase from stock options outstanding and exercisable as of September 30, 2016: Outstanding Exercisable Range of Exercise Prices Shares Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Shares Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price $10.00 - $14.00 90,000 5.3 years $ 11.68 73,334 5.3 years $ 11.88 $14.01 - $20.00 83,100 6.8 years $ 17.80 78,600 6.8 years $ 17.69 $20.01 - $30.00 3,000 2.3 years $ 28.30 3,000 2.3 years $ 28.30 $30.01 - $40.00 6,000 0.8 years $ 32.04 6,000 0.8 years $ 32.04 182,100 5.8 years $ 15.41 160,934 5.8 years $ 15.78
Summary of restricted stock activity	A summary of restricted stock activity for the first nine months of 2016 follows: Number of Shares Weighted-Average Grant-Date Fair Value Unvested, January 1, 2016 108,073 $ 22.94 Granted 54,871 $ 25.85 Vested (48,899 ) $ 22.98 Forfeited or expired (3,989 ) $ 23.38 Unvested, September 30, 2016 110,056 $ 24.35

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	9 Months Ended
	Sep. 30, 2016
REGULATORY MATTERS [Abstract]
The Bank's actual capital amounts and ratios	The Bank’s capital amounts (in thousands) and ratios are presented in the table that follows. The minimum amounts presented therein reference the minimums required by capital regulations and not the individual minimum capital ratios the OCC established for the Bank. Actual capital ratios Minimum for capital adequacy Minimum to be Well Capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio September 30, 2016 Total capital to risk-weighted assets $ 238,309 13.81 % $ 138,032 8.00 % $ 172,541 10.00 % Tier 1 capital to risk-weighted assets 217,604 12.61 % 103,524 6.00 % 138,032 8.00 % Common equity tier 1 capital to risk-weighted assets 217,604 12.61 % 77,643 4.50 % 112,151 6.50 % Tier 1 capital to adjusted average assets (leverage) 217,604 9.94 % 87,544 4.00 % 109,430 5.00 % December 31, 2015 Total capital to risk-weighted assets $ 219,562 12.66 % $ 138,716 8.00 % $ 173,395 10.00 % Tier 1 capital to risk-weighted assets 198,587 11.45 % 104,037 6.00 % 138,716 8.00 % Common equity tier 1 capital to risk-weighted assets 198,587 11.45 % 78,028 4.50 % 112,706 6.50 % Tier 1 capital to adjusted average assets (leverage) 198,587 9.58 % 82,905 4.00 % 103,632 5.00 %

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2016
FAIR VALUE [Abstract]
Carrying amounts and fair values of financial instruments	The following table presents the carrying amounts and fair values of the Company Level in September 30, 2016 December 31, 2015 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial Assets: Cash and due from banks Level 1 $ 181,929 $ 181,929 $ 98,086 $ 98,086 Federal Reserve and Federal Home Loan Bank stock and other investments Level 2 4,528 4,528 10,756 10,756 Investment securities held to maturity Level 2 18,896 19,633 61,309 63,272 Investment securities available for sale Level 2 194,273 194,273 247,099 247,099 Loans held for sale Level 2 1,504 1,504 1,666 1,666 Loans, net of allowance Level 2, 3 (1) 1,690,321 1,687,501 1,645,762 1,628,169 Accrued interest and loan fees receivable Level 2 5,840 5,840 5,859 5,859 Financial Liabilities: Non-maturity deposits Level 2 1,724,968 1,724,968 1,555,980 1,555,980 Time deposits Level 2 219,232 219,146 224,643 224,408 Borrowings Level 2 15,000 15,224 165,000 164,827 Accrued interest payable Level 2 156 156 198 198 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: September 30, 2016 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Impaired loans $ 1,877 $ 1,877 OREO 650 650 Total $ 2,527 $ 2,527 Assets: December 31, 2015 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Impaired loans $ 2,715 $ 2,715 Total $ 2,715 $ 2,715
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: September 30, 2016 December 31, 2015 Valuation Technique Unobservable Inputs Discount Impaired loans: Residential mortgages $ 1,591 $ 2,311 Third party appraisal Discount to appraised value 25 %(1) Home equity 218 280 Third party appraisal Discount to appraised value 25 %(1) Consumer 68 124 Third party appraisal Discount to appraised value 25 %(2) Total $ 1,877 $ 2,715 OREO $ 650 $ - Third party appraisal Estimated holding/selling costs 11 % (1) Of which estimated selling costs are approximately 9% - 15% of the total discount. (2) Of which estimated selling costs are approximately 10% - 12% of the total discount.
Valuation of financial instruments measured at fair value on recurring basis	The following presents fair value measurements on a recurring basis at September 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements Using Assets: September 30, 2016 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Obligations of states and political subdivisions $ 71,958 $ 71,958 $ - Collateralized mortgage obligations 18,396 18,396 - Mortgage-backed securities 95,294 95,294 - Corporate bonds 8,625 8,625 - Total $ 194,273 $ 194,273 $ - Liabilities: Derivatives $ 752 $ - $ 752 Total $ 752 $ - $ 752 Fair Value Measurements Using Assets: December 31, 2015 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Government agency securities $ 28,516 $ 28,516 $ - Obligations of states and political subdivisions 104,682 104,682 - Collateralized mortgage obligations 15,549 15,549 - Mortgage-backed securities 92,442 92,442 - Corporate bonds 5,910 5,910 - Total $ 247,099 $ 247,099 $ - 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Liabilities Derivatives Liabilities Derivatives Liabilities Derivatives Liabilities Derivatives Beginning balance $ 752 $ 752 $ 752 $ 752 Net change - - - - Ending balance $ 752 $ 752 $ 752 $ 752

BORROWINGS (Tables)

BORROWINGS (Tables)	9 Months Ended
	Sep. 30, 2016
BORROWINGS [Abstract]
Schedule of components of short- and long-term interest-bearing liabilities	The following summarizes borrowed funds at September 30, 2016 and December 31, 2015 (dollars in thousands): As of or for the Nine Months Ended September 30, 2016 Federal Home Loan Bank Borrowings Short-Term Federal Home Loan Bank Borrowings Long-Term Federal Funds Purchased Daily average outstanding $ 63,201 $ 15,000 $ 2 Total interest cost 276 198 - Average interest rate paid 0.58 % 1.76 % 0.74 % Maximum amount outstanding at any month-end $ 160,000 $ 15,000 $ - Ending balance - 15,000 - Weighted-average interest rate on balances outstanding - % 1.76 % - % As of or for the Year Ended December 31, 2015 Federal Home Loan Bank Borrowings Short-Term Federal Home Loan Bank Borrowings Long-Term Federal Funds Purchased Daily average outstanding $ 63,935 $ 10,808 $ 3 Total interest cost 252 190 - Average interest rate paid 0.39 % 1.76 % 0.45 % Maximum amount outstanding at any month-end $ 155,000 $ 15,000 $ - Ending balance 150,000 15,000 - Weighted-average interest rate on balances outstanding 0.52 % 1.76 % - %

FINANCIAL STATEMENT PRESENTAT30

FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)shares	Sep. 30, 2015shares	Sep. 30, 2016USD ($)Corporationshares	Sep. 30, 2015shares
Summary of Significant Accounting Policies [Abstract]
Ownership percentage	100.00%		100.00%
Business Acquisition [Line Items]
Number of corporation used to acquire foreclosed real estate | Corporation			2
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Weighted average common shares outstanding (in shares)	11,788,825	11,674,697	11,752,237	11,636,155
Weighted average unvested restricted shares (in shares)	113,041	111,034	116,753	106,921
Weighted average shares for basic earnings per share (in shares)	11,901,866	11,785,731	11,868,990	11,743,076
Additional diluted shares [Abstract]
Stock options (in shares)	98,485	77,568	81,605	74,823
Weighted average shares for diluted earnings per share (in shares)	12,000,351	11,863,299	11,950,595	11,817,899
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		$ 250
Other Real Estate Owned (OREO) [Abstract]
Other real estate owned (OREO) acquired through foreclosure | $	$ 650		$ 650
People's United [Member]
Business Acquisition [Line Items]
Number of common stock to receive after completion of merger (in shares)			2.225

ACCUMULATED OTHER COMPREHENSI31

ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS ("AOCI") (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			$ 197,258
Other comprehensive (loss) income before reclassifications	$ (826)	$ 1,087	1,354	$ 670
Amounts reclassified from AOCI	102	(24)	999	(55)
Net other comprehensive (loss) income	(724)	1,063	2,353	615
Ending balance	214,698	196,540	214,698	196,540
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain on sale of securities available for sale	523	133	547	319
Interest income - U.S. Government agency obligations	(47)	(530)	(662)	(1,602)
Subtotal, pre-tax	7,593	6,787	22,351	18,734
Income tax expense	(2,118)	(1,864)	(6,253)	(4,684)
NET INCOME	5,475	4,923	16,098	14,050
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	523	133	547	319
Interest income - U.S. Government agency obligations	(690)	(69)	(2,200)	(203)
Subtotal, pre-tax	(167)	64	(1,653)	116
Income tax expense	65	(40)	654	(61)
NET INCOME	(102)	24	(999)	55
Accumulated Other Comprehensive Income (Loss) [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(5,499)	(7,291)	(8,576)	(6,843)
Ending balance	(6,223)	(6,228)	(6,223)	(6,228)
Unrealized Gains and Losses on Available for Sale Securities [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	3,602	2,108	1,436	2,637
Other comprehensive (loss) income before reclassifications	(826)	1,087	1,354	670
Amounts reclassified from AOCI	(309)	(79)	(323)	(191)
Net other comprehensive (loss) income	(1,135)	1,008	1,031	479
Ending balance	2,467	3,116	2,467	3,116
Unrealized Losses on Securities Transferred from Available for Sale to Held to Maturity [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(484)	(1,724)	(1,395)	(1,805)
Other comprehensive (loss) income before reclassifications	0	0	0	0
Amounts reclassified from AOCI	411	55	1,322	136
Net other comprehensive (loss) income	411	55	1,322	136
Ending balance	(73)	(1,669)	(73)	(1,669)
Pension and Post-Retirement Plan Items [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(8,617)	(7,675)	(8,617)	(7,675)
Other comprehensive (loss) income before reclassifications	0	0	0	0
Amounts reclassified from AOCI	0	0	0	0
Net other comprehensive (loss) income	0	0	0	0
Ending balance	$ (8,617)	$ (7,675)	$ (8,617)	$ (7,675)

INVESTMENT SECURITIES, Amortize

INVESTMENT SECURITIES, Amortized Cost, Estimated Values and Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2016	Dec. 31, 2015
INVESTMENT SECURITIES [Abstract]
Investment securities transferred from available for sale to held to maturity, fair value	$ 48,000
Investment securities transferred from available for sale to held to maturity, unrealized gain (loss)	$ (3,200)
Available for sale [Abstract]
Total securities available for sale		$ 190,093	$ 244,706
Gross Unrealized Gains		4,640	4,510
Gross Unrealized Losses		(460)	(2,117)
Fair value		194,273	247,099
Held to maturity [Abstract]
Amortized Cost		18,896	61,309
Gross Unrealized Gains		737	1,993
Gross Unrealized Losses		0	(30)
Fair Value		19,633	63,272
Total investment securities [Abstract]
Total Amortized Cost		208,989	306,015
Total Gross Unrealized Gains		5,377	6,503
Total Gross Unrealized Losses		(460)	(2,147)
Total Fair Value		213,906	310,371
Investment securities pledged		180,000	261,000
U.S. Government Agency Securities [Member]
Available for sale [Abstract]
Total securities available for sale		0	28,977
Gross Unrealized Gains		0	2
Gross Unrealized Losses		0	(463)
Fair value		0	28,516
Obligations of States and Political Subdivisions [Member]
Available for sale [Abstract]
Total securities available for sale		69,239	100,215
Gross Unrealized Gains		2,719	4,467
Gross Unrealized Losses		0	0
Fair value		71,958	104,682
Collateralized Mortgage Obligations [Member]
Available for sale [Abstract]
Total securities available for sale		18,412	15,795
Gross Unrealized Gains		57	2
Gross Unrealized Losses		(73)	(248)
Fair value		18,396	15,549
Mortgage-Backed Securities [Member]
Available for sale [Abstract]
Total securities available for sale		93,442	93,719
Gross Unrealized Gains		1,864	39
Gross Unrealized Losses		(12)	(1,316)
Fair value		95,294	92,442
Corporate Bonds [Member]
Available for sale [Abstract]
Total securities available for sale		9,000	6,000
Gross Unrealized Gains		0	0
Gross Unrealized Losses		(375)	(90)
Fair value		8,625	5,910
U.S. Government Agency Securities [Member]
Held to maturity [Abstract]
Amortized Cost		2,375	43,570
Gross Unrealized Gains		125	1,450
Gross Unrealized Losses		0	0
Fair Value		2,500	45,020
Obligations of States and Political Subdivisions [Member]
Held to maturity [Abstract]
Amortized Cost		10,521	11,739
Gross Unrealized Gains		449	536
Gross Unrealized Losses		0	0
Fair Value		10,970	12,275
Corporate Bonds [Member]
Held to maturity [Abstract]
Amortized Cost		6,000	6,000
Gross Unrealized Gains		163	7
Gross Unrealized Losses		0	(30)
Fair Value		$ 6,163	$ 5,977

INVESTMENT SECURITIES, Amorti33

INVESTMENT SECURITIES, Amortized Cost, Maturities and Approximate Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Amortized Cost [Abstract]
Due in one year or less	$ 22,134		$ 22,134
Due from one to five years	129,676		129,676
Due from five to ten years	38,283		38,283
Total securities available for sale	190,093		190,093		$ 244,706
Fair Value [Abstract]
Due in one year or less	22,402		22,402
Due from one to five years	133,050		133,050
Due from five to ten years	38,821		38,821
Total securities available for sale	194,273		194,273		247,099
Amortized Cost [Abstract]
Due in one year or less	2,636		2,636
Due from one to five years	1,344		1,344
Due from five to ten years	8,375		8,375
Due after ten years	6,541		6,541
Amortized Cost	18,896		18,896		61,309
Fair Value [Abstract]
Due in one year or less	2,714		2,714
Due from one to five years	1,393		1,393
Due from five to ten years	8,663		8,663
Due after ten years	6,863		6,863
Total securities held to maturity	19,633		19,633		63,272
Total Amortized Cost	208,989		208,989		306,015
Total Fair Value	213,906		213,906		310,371
Contingent liability from counterparty estimated future exposure from Visa litigation	752		752		752
Approximate cash payment per quarter for Visa litigation	87	$ 73	243	$ 214
US Government agency securities held as available-for-sale pledged as collateral	$ 3,000		$ 3,000		$ 3,000
Shares of Visa Class B securities held (in shares)	38,638		38,638		38,638

INVESTMENT SECURITIES, Securiti

INVESTMENT SECURITIES, Securities Sales And Continuous Unrealized Loss Position Of Securities Held (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Proceeds from sales of securities available for sale and the associated realized securities gains and losses [Abstract]
Proceeds	$ 6,615	$ 3,077	$ 6,615	$ 10,080
Gross realized gains	523	133	547	334
Gross realized losses	0	0	0	(15)
Net realized gains	523	$ 133	547	$ 319
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	15,596		15,596		$ 94,259
Less than 12 months Unrealized Losses	(137)		(137)		(1,241)
12 months or longer Fair Value	7,568		7,568		35,906
12 months or longer Unrealized Losses	(323)		(323)		(906)
Total Fair Value	23,164		23,164		130,165
Total Unrealized Losses	(460)		(460)		(2,147)
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					16,744
Less than 12 months Unrealized Losses					(233)
12 months or longer Fair Value					9,770
12 months or longer Unrealized Losses					(230)
Total Fair Value					26,514
Total Unrealized Losses					(463)
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	6,159		6,159		1,831
Less than 12 months Unrealized Losses	(50)		(50)		(4)
12 months or longer Fair Value	1,868		1,868		8,200
12 months or longer Unrealized Losses	(23)		(23)		(244)
Total Fair Value	8,027		8,027		10,031
Total Unrealized Losses	(73)		(73)		(248)
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	6,512		6,512		66,804
Less than 12 months Unrealized Losses	(12)		(12)		(884)
12 months or longer Fair Value	0		0		17,936
12 months or longer Unrealized Losses	0		0		(432)
Total Fair Value	6,512		6,512		84,740
Total Unrealized Losses	(12)		(12)		(1,316)
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	2,925		2,925		8,880
Less than 12 months Unrealized Losses	(75)		(75)		(120)
12 months or longer Fair Value	5,700		5,700		0
12 months or longer Unrealized Losses	(300)		(300)		0
Total Fair Value	8,625		8,625		8,880
Total Unrealized Losses	$ (375)		$ (375)		$ (120)

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Categorized total loans [Abstract]
Gross loans	$ 1,710,786		$ 1,666,447
Allowance for loan losses	(20,465)	$ (20,965)	(20,685)	$ (20,315)	$ (20,051)	$ (19,200)
Net loans	1,690,321		1,645,762
Commercial and Industrial [Member]
Categorized total loans [Abstract]
Gross loans	210,510		189,769
Allowance for loan losses	(1,872)	(1,814)	(1,875)	(1,897)	(2,073)	(1,560)
Commercial Real Estate [Member]
Categorized total loans [Abstract]
Gross loans	728,562		696,787
Allowance for loan losses	(7,808)	(7,746)	(7,019)	(6,430)	(6,000)	(6,777)
Multifamily [Member]
Categorized total loans [Abstract]
Gross loans	418,108		426,549
Allowance for loan losses	(4,177)	(4,898)	(4,688)	(4,317)	(4,065)	(4,018)
Mixed Use Commercial [Member]
Categorized total loans [Abstract]
Gross loans	82,527		78,787
Allowance for loan losses	(764)	(842)	(766)	(594)	(465)	(261)
Real Estate Construction [Member]
Categorized total loans [Abstract]
Gross loans	43,190		37,233
Allowance for loan losses	(504)	(456)	(386)	(486)	(478)	(383)
Residential Mortgages [Member]
Categorized total loans [Abstract]
Gross loans	180,831		186,313
Allowance for loan losses	(2,089)	(2,193)	(2,476)	(2,695)	(2,571)	(3,027)
Loans in the process of foreclosure collateralized by residential real estate property	0
Home Equity [Member]
Categorized total loans [Abstract]
Gross loans	42,407		44,951
Allowance for loan losses	(544)	$ (580)	(639)	$ (676)	$ (672)	$ (709)
Consumer [Member]
Categorized total loans [Abstract]
Gross loans	4,651		6,058
Allowance for loan losses	$ (61)		$ (106)

LOANS, Analysis of Changes in t

LOANS, Analysis of Changes in the Allowances for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Allowance for loan losses [Roll Forward]
Balance at beginning of period	$ 20,965	$ 20,051	$ 20,685	$ 19,200
Charge-offs	(217)	(253)	(292)	(755)
Recoveries	67	167	172	1,270
(Credit) provision for loan losses	(350)	350	(100)	600
Balance at end of period	20,465	20,315	20,465	20,315
Commercial and Industrial [Member]
Allowance for loan losses [Roll Forward]
Balance at beginning of period	1,814	2,073	1,875	1,560
Charge-offs	(216)	(252)	(216)	(744)
Recoveries	48	138	121	1,174
(Credit) provision for loan losses	226	(62)	92	(93)
Balance at end of period	1,872	1,897	1,872	1,897
Commercial Real Estate [Member]
Allowance for loan losses [Roll Forward]
Balance at beginning of period	7,746	6,000	7,019	6,777
Charge-offs	0	0	0	0
Recoveries	14	10	32	28
(Credit) provision for loan losses	48	420	757	(375)
Balance at end of period	7,808	6,430	7,808	6,430
Multifamily [Member]
Allowance for loan losses [Roll Forward]
Balance at beginning of period	4,898	4,065	4,688	4,018
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
(Credit) provision for loan losses	(721)	252	(511)	299
Balance at end of period	4,177	4,317	4,177	4,317
Mixed Use Commercial [Member]
Allowance for loan losses [Roll Forward]
Balance at beginning of period	842	465	766	261
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
(Credit) provision for loan losses	(78)	129	(2)	333
Balance at end of period	764	594	764	594
Real Estate Construction [Member]
Allowance for loan losses [Roll Forward]
Balance at beginning of period	456	478	386	383
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
(Credit) provision for loan losses	48	8	118	103
Balance at end of period	504	486	504	486
Residential Mortgages [Member]
Allowance for loan losses [Roll Forward]
Balance at beginning of period	2,193	2,571	2,476	3,027
Charge-offs	0	0	0	0
Recoveries	0	4	5	31
(Credit) provision for loan losses	(104)	120	(392)	(363)
Balance at end of period	2,089	2,695	2,089	2,695
Home Equity [Member]
Allowance for loan losses [Roll Forward]
Balance at beginning of period	580	672	639	709
Charge-offs	0	0	(8)	0
Recoveries	4	10	9	17
(Credit) provision for loan losses	(40)	(6)	(96)	(50)
Balance at end of period	544	676	544	676
Consumer [Member]
Allowance for loan losses [Roll Forward]
Balance at beginning of period	60	150	106	166
Charge-offs	(1)	(1)	(68)	(11)
Recoveries	1	5	5	20
(Credit) provision for loan losses	1	(29)	18	(50)
Balance at end of period	61	125	61	125
Unallocated [Member]
Allowance for loan losses [Roll Forward]
Balance at beginning of period	2,376	3,577	2,730	2,299
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
(Credit) provision for loan losses	270	(482)	(84)	796
Balance at end of period	$ 2,646	$ 3,095	$ 2,646	$ 3,095

LOANS, Loans and Allowance for

LOANS, Loans and Allowance for Loan Losses Impairment Evaluations (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	$ 587		$ 777
Ending balance: collectively evaluated for impairment	19,878		19,908
Ending balance	20,465	$ 20,965	20,685	$ 20,315	$ 20,051	$ 19,200
Loan balances [Abstract]
Ending balance: individually evaluated for impairment	14,525		15,085
Ending balance: collectively evaluated for impairment	1,696,261		1,651,362
Total loans	1,710,786		1,666,447
Commercial and Industrial [Member]
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	1,872		1,875
Ending balance	1,872	1,814	1,875	1,897	2,073	1,560
Loan balances [Abstract]
Ending balance: individually evaluated for impairment	4,157		2,872
Ending balance: collectively evaluated for impairment	206,353		186,897
Total loans	210,510		189,769
Commercial Real Estate [Member]
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	7,808		7,019
Ending balance	7,808	7,746	7,019	6,430	6,000	6,777
Loan balances [Abstract]
Ending balance: individually evaluated for impairment	3,590		4,334
Ending balance: collectively evaluated for impairment	724,972		692,453
Total loans	728,562		696,787
Multifamily [Member]
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	4,177		4,688
Ending balance	4,177	4,898	4,688	4,317	4,065	4,018
Loan balances [Abstract]
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	418,108		426,549
Total loans	418,108		426,549
Mixed Use Commercial [Member]
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	764		766
Ending balance	764	842	766	594	465	261
Loan balances [Abstract]
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	82,527		78,787
Total loans	82,527		78,787
Real Estate Construction [Member]
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	504		386
Ending balance	504	456	386	486	478	383
Loan balances [Abstract]
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	43,190		37,233
Total loans	43,190		37,233
Residential Mortgages [Member]
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	426		559
Ending balance: collectively evaluated for impairment	1,663		1,917
Ending balance	2,089	2,193	2,476	2,695	2,571	3,027
Loan balances [Abstract]
Ending balance: individually evaluated for impairment	4,909		5,817
Ending balance: collectively evaluated for impairment	175,922		180,496
Total loans	180,831		186,313
Home Equity [Member]
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	136		170
Ending balance: collectively evaluated for impairment	408		469
Ending balance	544	580	639	676	672	709
Loan balances [Abstract]
Ending balance: individually evaluated for impairment	1,655		1,683
Ending balance: collectively evaluated for impairment	40,752		43,268
Total loans	42,407		44,951
Consumer [Member]
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	25		48
Ending balance: collectively evaluated for impairment	36		58
Ending balance	61		106
Loan balances [Abstract]
Ending balance: individually evaluated for impairment	214		379
Ending balance: collectively evaluated for impairment	4,437		5,679
Total loans	4,651		6,058
Unallocated [Member]
Allowance for loan losses [Abstract]
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	2,646		2,730
Ending balance	2,646	$ 2,376	2,730	$ 3,095	$ 3,577	$ 2,299
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 ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Summary of impaired loans [Abstract]
Impaired loans with no allowance recorded, Unpaid Principal Balance	$ 12,609		$ 12,609		$ 12,138
Impaired loans with an allowance recorded, Unpaid Principal Balance	2,481		2,481		3,631
Impaired loans, Unpaid Principal Balance, Total	15,090		15,090		15,769
Impaired loans with no allowance recorded, Recorded Balance	12,061		12,061		11,590
Impaired loans with an allowance recorded, Recorded Balance	2,464		2,464		3,495
Impaired loans, Recorded Balance, Total	14,525		14,525		15,085
Impaired loans, No Allowance Allocated	0		0		0
Impaired loans, Allowance Allocated	587		587		777
Average recorded investment in impaired loans	14,698	$ 16,453	15,300	$ 19,586
Interest income recognized on impaired loans	199	460	444	1,431
Commercial and Industrial [Member]
Summary of impaired loans [Abstract]
Impaired loans with no allowance recorded, Unpaid Principal Balance	4,157		4,157		2,869
Impaired loans with an allowance recorded, Unpaid Principal Balance	0		0		3
Impaired loans with no allowance recorded, Recorded Balance	4,157		4,157		2,869
Impaired loans with an allowance recorded, Recorded Balance	0		0		3
Impaired loans, No Allowance Allocated	0		0		0
Impaired loans, Allowance Allocated	0		0		0
Average recorded investment in impaired loans	4,322	2,322	4,034	3,331
Interest income recognized on impaired loans	68	226	103	485
Commercial Real Estate [Member]
Summary of impaired loans [Abstract]
Impaired loans with no allowance recorded, Unpaid Principal Balance	4,009		4,009		4,753
Impaired loans with no allowance recorded, Recorded Balance	3,590		3,590		4,334
Impaired loans, No Allowance Allocated	0		0		0
Average recorded investment in impaired loans	3,567	6,213	4,090	8,590
Interest income recognized on impaired loans	59	48	135	647
Residential Mortgages [Member]
Summary of impaired loans [Abstract]
Impaired loans with no allowance recorded, Unpaid Principal Balance	3,021		3,021		3,076
Impaired loans with an allowance recorded, Unpaid Principal Balance	2,017		2,017		2,870
Impaired loans with no allowance recorded, Recorded Balance	2,892		2,892		2,947
Impaired loans with an allowance recorded, Recorded Balance	2,017		2,017		2,870
Impaired loans, No Allowance Allocated	0		0		0
Impaired loans, Allowance Allocated	426		426		559
Average recorded investment in impaired loans	4,936	5,817	5,248	5,604
Interest income recognized on impaired loans	52	166	148	245
Home Equity [Member]
Summary of impaired loans [Abstract]
Impaired loans with no allowance recorded, Unpaid Principal Balance	1,301		1,301		1,233
Impaired loans with an allowance recorded, Unpaid Principal Balance	371		371		586
Impaired loans with no allowance recorded, Recorded Balance	1,301		1,301		1,233
Impaired loans with an allowance recorded, Recorded Balance	354		354		450
Impaired loans, No Allowance Allocated	0		0		0
Impaired loans, Allowance Allocated	136		136		170
Average recorded investment in impaired loans	1,658	1,752	1,658	1,687
Interest income recognized on impaired loans	17	15	48	43
Consumer [Member]
Summary of impaired loans [Abstract]
Impaired loans with no allowance recorded, Unpaid Principal Balance	121		121		207
Impaired loans with an allowance recorded, Unpaid Principal Balance	93		93		172
Impaired loans with no allowance recorded, Recorded Balance	121		121		207
Impaired loans with an allowance recorded, Recorded Balance	93		93		172
Impaired loans, No Allowance Allocated	0		0		0
Impaired loans, Allowance Allocated	25		25		$ 48
Average recorded investment in impaired loans	215	349	270	374
Interest income recognized on impaired loans	$ 3	$ 5	$ 10	$ 11

LOANS, Loans Modified as Troubl

LOANS, Loans Modified as Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)Loan	Sep. 30, 2015USD ($)Loan	Sep. 30, 2016USD ($)Loan	Sep. 30, 2015USD ($)Loan	Dec. 31, 2015USD ($)Loan
Financing Receivable, Modifications [Line Items]
Allocation of specific reserve regarding troubled debt restructuring	$ 473		$ 473		$ 534
Troubled debt restructuring funds committed	$ 45		$ 45		$ 45
Troubled debt restructuring at end of period [Abstract]
Number of Loans | Loan	48		48		57
Outstanding Recorded Balance	$ 12,176		$ 12,176		$ 11,563
Troubled debt restructured during year [Abstract]
Number of Loans | Loan	2	3	2	7
Pre-Modification, Outstanding Recorded Balance	$ 2,196	$ 243	$ 2,196	$ 772
Post-modification, Outstanding Recorded Balance	$ 2,207	$ 243	$ 2,207	$ 777
Defaulted Troubled Debt Restructurings [Member]
Troubled debt restructured during year [Abstract]
Number of Loans | Loan	0	0	0	1
Pre-Modification, Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 46
Commercial and Industrial [Member]
Troubled debt restructuring at end of period [Abstract]
Number of Loans | Loan	11		11		17
Outstanding Recorded Balance	$ 2,924		$ 2,924		$ 1,116
Troubled debt restructured during year [Abstract]
Number of Loans | Loan	2	1	2	3
Pre-Modification, Outstanding Recorded Balance	$ 2,196	$ 8	$ 2,196	$ 343
Post-modification, Outstanding Recorded Balance	$ 2,207	$ 8	$ 2,207	$ 343
Commercial Real Estate [Member]
Troubled debt restructuring at end of period [Abstract]
Number of Loans | Loan	4		4		5
Outstanding Recorded Balance	$ 2,953		$ 2,953		$ 4,131
Residential Mortgages [Member]
Troubled debt restructuring at end of period [Abstract]
Number of Loans | Loan	22		22		22
Outstanding Recorded Balance	$ 4,724		$ 4,724		$ 4,653
Troubled debt restructured during year [Abstract]
Number of Loans | Loan			0	2
Pre-Modification, Outstanding Recorded Balance			$ 0	$ 194
Post-modification, Outstanding Recorded Balance			$ 0	$ 199
Home Equity [Member]
Troubled debt restructuring at end of period [Abstract]
Number of Loans | Loan	5		5		5
Outstanding Recorded Balance	$ 1,361		$ 1,361		$ 1,362
Troubled debt restructured during year [Abstract]
Number of Loans | Loan	0	1	0	1
Pre-Modification, Outstanding Recorded Balance	$ 0	$ 192	$ 0	$ 192
Post-modification, Outstanding Recorded Balance	$ 0	$ 192	$ 0	$ 192
Consumer [Member]
Troubled debt restructuring at end of period [Abstract]
Number of Loans | Loan	6		6		8
Outstanding Recorded Balance	$ 214		$ 214		$ 301
Troubled debt restructured during year [Abstract]
Number of Loans | Loan	0	1	0	1
Pre-Modification, Outstanding Recorded Balance	$ 0	$ 43	$ 0	$ 43
Post-modification, Outstanding Recorded Balance	$ 0	$ 43	$ 0	$ 43
Consumer [Member] | Defaulted Troubled Debt Restructurings [Member]
Troubled debt restructured during year [Abstract]
Number of Loans | Loan	0	0	0	1
Pre-Modification, Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 46

LOANS, Loans and Allowance fo40

LOANS, Loans and Allowance for Loan Losses by Risk Rating (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Summarizes non-accrual loans by loan class [Abstract]
Non-accrual loans	$ 6,315		$ 6,315		$ 5,528
Percentage of Total			100.00%		100.00%
Total Loans	$ 1,710,786		$ 1,710,786		$ 1,666,447
Percentage of Total Loans	0.40%		0.40%		0.30%
Additional interest income for the non-accrual loans outstanding at the end of the reported periods	$ 93	$ 138	$ 315	$ 270
Commercial and Industrial [Member]
Summarizes non-accrual loans by loan class [Abstract]
Non-accrual loans	3,602		$ 3,602		$ 1,954
Percentage of Total			57.10%		35.30%
Total Loans	$ 210,510		$ 210,510		$ 189,769
Percentage of Total Loans	0.20%		0.20%		0.10%
Commercial Real Estate [Member]
Summarizes non-accrual loans by loan class [Abstract]
Non-accrual loans	$ 2,167		$ 2,167		$ 1,733
Percentage of Total			34.30%		31.40%
Total Loans	$ 728,562		$ 728,562		$ 696,787
Percentage of Total Loans	0.10%		0.10%		0.10%
Multifamily [Member]
Summarizes non-accrual loans by loan class [Abstract]
Non-accrual loans	$ 0		$ 0		$ 0
Percentage of Total			0.00%		0.00%
Total Loans	$ 418,108		$ 418,108		$ 426,549
Percentage of Total Loans	0.00%		0.00%		0.00%
Mixed Use Commercial [Member]
Summarizes non-accrual loans by loan class [Abstract]
Non-accrual loans	$ 0		$ 0		$ 0
Percentage of Total			0.00%		0.00%
Total Loans	$ 82,527		$ 82,527		$ 78,787
Percentage of Total Loans	0.00%		0.00%		0.00%
Real Estate Construction [Member]
Summarizes non-accrual loans by loan class [Abstract]
Non-accrual loans	$ 0		$ 0		$ 0
Percentage of Total			0.00%		0.00%
Total Loans	$ 43,190		$ 43,190		$ 37,233
Percentage of Total Loans	0.00%		0.00%		0.00%
Residential Mortgages [Member]
Summarizes non-accrual loans by loan class [Abstract]
Non-accrual loans	$ 361		$ 361		$ 1,358
Percentage of Total			5.70%		24.60%
Total Loans	$ 180,831		$ 180,831		$ 186,313
Percentage of Total Loans	0.10%		0.10%		0.10%
Home Equity [Member]
Summarizes non-accrual loans by loan class [Abstract]
Non-accrual loans	$ 185		$ 185		$ 406
Percentage of Total			2.90%		7.30%
Total Loans	$ 42,407		$ 42,407		$ 44,951
Percentage of Total Loans	0.00%		0.00%		0.00%
Consumer [Member]
Summarizes non-accrual loans by loan class [Abstract]
Non-accrual loans	$ 0		$ 0		$ 77
Percentage of Total			0.00%		1.40%
Total Loans	$ 4,651		$ 4,651		$ 6,058
Percentage of Total Loans	0.00%		0.00%		0.00%

LOANS, Loans Current and Past D

LOANS, Loans Current and Past Due by Aging Categories (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Summary of current and past due loans [Abstract]
Total past due	$ 8,308	$ 6,574
Current	1,702,478	1,659,873
Total loans	$ 1,710,786	$ 1,666,447
Percentage of Total Loans, Past Due	0.50%	0.40%
Percentage of Total Loans, Current	99.50%	99.60%
Percentage of Total Loans	100.00%	100.00%
30-59 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	$ 1,962	$ 871
Percentage of Total Loans, Past Due	0.10%	0.10%
60-89 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	$ 31	$ 175
Percentage of Total Loans, Past Due	0.00%	0.00%
90 Days and Over Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	$ 6,315	$ 5,528
Percentage of Total Loans, Past Due	0.40%	0.30%
Commercial and Industrial [Member]
Summary of current and past due loans [Abstract]
Total past due	$ 3,967	$ 1,975
Current	206,543	187,794
Total loans	210,510	189,769
Commercial and Industrial [Member] | 30-59 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	334	21
Commercial and Industrial [Member] | 60-89 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	31	0
Commercial and Industrial [Member] | 90 Days and Over Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	3,602	1,954
Commercial Real Estate [Member]
Summary of current and past due loans [Abstract]
Total past due	2,445	1,733
Current	726,117	695,054
Total loans	728,562	696,787
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	278	0
Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | 90 Days and Over Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	2,167	1,733
Multifamily [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Current	418,108	426,549
Total loans	418,108	426,549
Multifamily [Member] | 30-59 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Multifamily [Member] | 60-89 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Multifamily [Member] | 90 Days and Over Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Mixed Use Commercial [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Current	82,527	78,787
Total loans	82,527	78,787
Mixed Use Commercial [Member] | 30-59 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Mixed Use Commercial [Member] | 60-89 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Mixed Use Commercial [Member] | 90 Days and Over Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Real Estate Construction [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Current	43,190	37,233
Total loans	43,190	37,233
Real Estate Construction [Member] | 30-59 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Real Estate Construction [Member] | 60-89 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Real Estate Construction [Member] | 90 Days and Over Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Residential Mortgages [Member]
Summary of current and past due loans [Abstract]
Total past due	1,413	2,045
Current	179,418	184,268
Total loans	180,831	186,313
Residential Mortgages [Member] | 30-59 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	1,052	512
Residential Mortgages [Member] | 60-89 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	175
Residential Mortgages [Member] | 90 Days and Over Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	361	1,358
Home Equity [Member]
Summary of current and past due loans [Abstract]
Total past due	482	742
Current	41,925	44,209
Total loans	42,407	44,951
Home Equity [Member] | 30-59 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	297	336
Home Equity [Member] | 60-89 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Home Equity [Member] | 90 Days and Over Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	185	406
Consumer [Member]
Summary of current and past due loans [Abstract]
Total past due	1	79
Current	4,650	5,979
Total loans	4,651	6,058
Consumer [Member] | 30-59 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	1	2
Consumer [Member] | 60-89 Days Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	0	0
Consumer [Member] | 90 Days and Over Past Due [Member]
Summary of current and past due loans [Abstract]
Total past due	$ 0	$ 77

LOANS, Loans by Internal Assign

LOANS, Loans by Internal Assigned Grade for Credit Risk (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Threshold loan amount for annual rating review	$ 750
Credit risk profile by internally assigned grade [Abstract]
Total Loans	$ 1,710,786	$ 1,666,447
Percentage of Total Loans	100.00%	100.00%
Minimum [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of consecutive years	5 years
Minimum repayment period	2 years
Pass [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	$ 1,677,906	$ 1,645,060
Percentage of Total Loans	98.10%	98.70%
Special Mention [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	$ 17,754	$ 9,197
Percentage of Total Loans	1.00%	0.60%
Substandard [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	$ 15,126	$ 12,190
Percentage of Total Loans	0.90%	0.70%
Commercial and Industrial [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	$ 210,510	$ 189,769
Commercial and Industrial [Member] | Pass [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	195,931	180,024
Commercial and Industrial [Member] | Special Mention [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	9,227	3,088
Commercial and Industrial [Member] | Substandard [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	5,352	6,657
Commercial Real Estate [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	728,562	696,787
Commercial Real Estate [Member] | Pass [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	714,401	687,210
Commercial Real Estate [Member] | Special Mention [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	5,103	6,109
Commercial Real Estate [Member] | Substandard [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	9,058	3,468
Multifamily [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	418,108	426,549
Multifamily [Member] | Pass [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	418,108	426,549
Multifamily [Member] | Special Mention [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	0	0
Multifamily [Member] | Substandard [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	0	0
Mixed Use Commercial [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	82,527	78,787
Mixed Use Commercial [Member] | Pass [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	80,265	78,779
Mixed Use Commercial [Member] | Special Mention [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	2,262	0
Mixed Use Commercial [Member] | Substandard [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	0	8
Real Estate Construction [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	43,190	37,233
Real Estate Construction [Member] | Pass [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	42,028	37,233
Real Estate Construction [Member] | Special Mention [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	1,162	0
Real Estate Construction [Member] | Substandard [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	0	0
Residential Mortgages [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	180,831	186,313
Residential Mortgages [Member] | Pass [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	180,299	184,781
Residential Mortgages [Member] | Special Mention [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	0	0
Residential Mortgages [Member] | Substandard [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	532	1,532
Home Equity [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	42,407	44,951
Home Equity [Member] | Pass [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	42,223	44,545
Home Equity [Member] | Special Mention [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	0	0
Home Equity [Member] | Substandard [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	184	406
Consumer [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	4,651	6,058
Consumer [Member] | Pass [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	4,651	5,939
Consumer [Member] | Special Mention [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	0	0
Consumer [Member] | Substandard [Member]
Credit risk profile by internally assigned grade [Abstract]
Total Loans	$ 0	$ 119

RETIREMENT PLAN (Details)

RETIREMENT PLAN (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2012
RETIREMENT PLAN [Abstract]
Additional minimum required contribution for the pension plan						$ 0
Net periodic pension credit		$ 0	$ (111)	$ (13)	$ (333)
Optional required contribution for pension plan	$ 1,000
Minimum required contribution for the pension plan				$ 0

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total cash received from option exercises	$ 0	$ 539
Additional Disclosures [Abstract]
Compensation expense	$ 763	626
Summary of options outstanding and exercisable [Abstract]
Shares Outstanding (in shares)	182,100
Weighted-Average Remaining Contractual Life, Outstanding	5 years 9 months 18 days
Weighted-Average Exercise Price, Outstanding (in dollars per share)	$ 15.41
Shares Exercisable (in shares)	160,934
Weighted-Average Remaining Contractual Life, Exercisable	5 years 9 months 18 days
Weighted-Average Exercise Price, Exercisable (in dollars per share)	$ 15.78
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)	$ 30
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
Weighted-Average Exercise Price [Roll Forward]
Fair value of restricted stock awards vested	$ 1,100	$ 585
Shares withheld to pay taxes (in shares)	10,380	4,787
Number of Shares [Roll Forward]
Outstanding at Beginning (in shares)	108,073
Granted (in shares)	54,871	71,612
Vested (in shares)	(48,899)	(25,948)
Forfeited or expired (in shares)	(3,989)
Outstanding at Ending (in shares)	110,056
Weighted Average Grant-Date Fair Value [Roll Forward]
Outstanding at beginning (in dollars per shares)	$ 22.94
Granted (in dollars per share)	25.85
Vested (in dollars per share)	22.98
Forfeited or expired (in dollars per share)	23.38
Outstanding at ending (in dollars per share)	$ 24.35
Additional Disclosures [Abstract]
Remaining unrecognized compensation cost	$ 1,900
Remaining unrecognized compensation cost remaining vesting period	1 year 9 months 18 days
Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rate	0.33333
Percentage of options granted exercisable	100.00%
Total intrinsic value of options exercised	$ 0	$ 438
Total cash received from option exercises		$ 539
Common stock, new shares (in shares)		39,334
Number of Shares [Roll Forward]
Outstanding at beginning (in shares)	185,100
Granted (in shares)	0
Exercised (in shares)	0
Forfeited or expired (in shares)	(3,000)
Outstanding at ending (in shares)	182,100
Weighted-Average Exercise Price [Roll Forward]
Outstanding at beginning (in dollars per share)	$ 15.73
Granted (in dollars per share)	0
Exercised (in dollars per share)	0
Forfeited or expired (in dollars per share)	34.95
Outstanding at ending (in dollars per share)	$ 15.41
Maximum [Member] | Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercise period	10 years
2009 Stock Incentive Plan [Member]
Additional Disclosures [Abstract]
Company's common stock reserved for issuance (in shares)	500,000
Common stock available for possible issuance (in shares)	122,428
2009 Stock Incentive Plan [Member] | Employee Stock Options [Member]
Additional Disclosures [Abstract]
Remaining unrecognized compensation cost	$ 4
Remaining unrecognized compensation cost remaining vesting period	2 months 12 days
1999 Stock Incentive Plan [Member]
Additional Disclosures [Abstract]
Company's common stock reserved for issuance (in shares)	0
$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)	90,000
Weighted-Average Remaining Contractual Life, Outstanding	5 years 3 months 18 days
Weighted-Average Exercise Price, Outstanding (in dollars per share)	$ 11.68
Shares Exercisable (in shares)	73,334
Weighted-Average Remaining Contractual Life, Exercisable	5 years 3 months 18 days
Weighted-Average Exercise Price, Exercisable (in dollars per share)	$ 11.88
$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)	83,100
Weighted-Average Remaining Contractual Life, Outstanding	6 years 9 months 18 days
Weighted-Average Exercise Price, Outstanding (in dollars per share)	$ 17.80
Shares Exercisable (in shares)	78,600
Weighted-Average Remaining Contractual Life, Exercisable	6 years 9 months 18 days
Weighted-Average Exercise Price, Exercisable (in dollars per share)	$ 17.69
$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)	3,000
Weighted-Average Remaining Contractual Life, Outstanding	2 years 3 months 18 days
Weighted-Average Exercise Price, Outstanding (in dollars per share)	$ 28.30
Shares Exercisable (in shares)	3,000
Weighted-Average Remaining Contractual Life, Exercisable	2 years 3 months 18 days
Weighted-Average Exercise Price, Exercisable (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)	6,000
Weighted-Average Remaining Contractual Life, Outstanding	9 months 18 days
Weighted-Average Exercise Price, Outstanding (in dollars per share)	$ 32.04
Shares Exercisable (in shares)	6,000
Weighted-Average Remaining Contractual Life, Exercisable	9 months 18 days
Weighted-Average Exercise Price, Exercisable (in dollars per share)	$ 32.04

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits	$ 0	$ 0
New York State [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	2,800
Valuation allowance	$ 138
Operating loss carryforwards, expiration dates	Dec. 31, 2032

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Capital buffer of common equity tier 1 capital minimum capital requirements [Abstract]
Capital buffer of common equity tier 1 capital minimum capital requirement - 2016	0.625%
Capital buffer of common equity tier 1 capital minimum capital requirements - 2017	1.25%
Capital buffer of common equity tier 1 capital minimum capital requirements - 2018	1.875%
Capital buffer of common equity tier 1 capital minimum capital requirements - 2019 and thereafter	2.50%
Total capital to risk-weighted assets [Abstract]
Actual capital ratios, amount	$ 238,309	$ 219,562
Minimum for capital adequacy, amount	138,032	138,716
Minimum to be well capitalized under prompt corrective action provisions, amount	$ 172,541	$ 173,395
Total capital to risk-weighted assets Ratios [Abstract]
Actual capital ratios, ratio	13.81%	12.66%
Minimum for capital adequacy, ratio	8.00%	8.00%
Minimum to be well capitalized under prompt corrective action provisions, ratio	10.00%	10.00%
Tier 1 capital to risk-weighted assets [Abstract]
Actual capital ratios, amount	$ 217,604	$ 198,587
Minimum for capital adequacy, amount	103,524	104,037
Minimum to be well capitalized under prompt corrective action provisions, amount	$ 138,032	$ 138,716
Tier 1 Capital to risk-weighted assets, Ratio [Abstract]
Actual capital ratios, ratio	12.61%	11.45%
Minimum for capital adequacy, ratio	6.00%	6.00%
Minimum to be well capitalized under prompt corrective action provisions, ratio	8.00%	8.00%
Common equity tier 1 capital to risk-weighted assets [Abstract]
Actual capital ratios, amount	$ 217,604	$ 198,587
Minimum for capital adequacy, amount	77,643	78,028
Minimum to be well capitalized under prompt corrective action provisions, amount	$ 112,151	$ 112,706
Common equity tier 1 capital to risk-weighted assets, Ratio [Abstract]
Actual capital ratios, ratio	12.61%	11.45%
Minimum for capital adequacy, ratio	4.50%	4.50%
Minimum to be well capitalized under prompt corrective action provisions, ratio	6.50%	6.50%
Tier 1 capital to adjusted average assets (leverage) [Abstract]
Actual capital ratios, amount	$ 217,604	$ 198,587
Minimum for capital adequacy, amount	87,544	82,905
Minimum to be well capitalized under prompt corrective action provisions, amount	$ 109,430	$ 103,632
Tier 1 capital to adjusted average assets (leverage) Ratios [Abstract]
Actual capital ratios, ratio	9.94%	9.58%
Minimum for capital adequacy, ratio	4.00%	4.00%
Minimum to be well capitalized under prompt corrective action provisions, ratio	5.00%	5.00%
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 leverage capital ratio	9.94%	9.58%
Common equity tier 1 risk-based capital ratio	12.61%	11.45%
Tier 1 risk-based capital ratio	12.61%	11.45%
Total risk-based capital ratio	13.81%	12.66%
Parent Company [Member]
Total capital to risk-weighted assets Ratios [Abstract]
Actual capital ratios, ratio	13.93%	12.89%
Tier 1 Capital to risk-weighted assets, Ratio [Abstract]
Actual capital ratios, ratio	12.73%	11.68%
Common equity tier 1 capital to risk-weighted assets, Ratio [Abstract]
Actual capital ratios, ratio	12.73%	11.68%
Tier 1 capital to adjusted average assets (leverage) Ratios [Abstract]
Actual capital ratios, ratio	10.04%	9.77%
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 leverage capital ratio	10.04%	9.77%
Common equity tier 1 risk-based capital ratio	12.73%	11.68%
Tier 1 risk-based capital ratio	12.73%	11.68%
Total risk-based capital ratio	13.93%	12.89%

FAIR VALUE, Balance Sheets Grou

FAIR VALUE, Balance Sheets Grouping (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2016	Dec. 31, 2015
Financial Assets [Abstract]
Investment securities held to maturity		$ 19,633	$ 63,272
Investment securities available for sale		194,273	247,099
Financial Liabilities [Abstract]
Borrowings		$ 15,000	165,000
Percentage of derivative in net sale proceeds		10.00%
Carrying Amount [Member]
Financial Assets [Abstract]
Cash and due from banks	[1]	$ 181,929	98,086
Federal Reserve and Federal Home Loan Bank stock and other investments	[2]	4,528	10,756
Investment securities held to maturity	[2]	18,896	61,309
Investment securities available for sale	[2]	194,273	247,099
Loans held for sale	[2]	1,504	1,666
Loans, net of allowance	[2],[3],[4]	1,690,321	1,645,762
Accrued interest and loan fees receivable	[2]	5,840	5,859
Financial Liabilities [Abstract]
Non-maturity deposits	[2]	1,724,968	1,555,980
Time deposits	[2]	219,232	224,643
Borrowings	[2]	15,000	165,000
Accrued interest payable	[2]	156	198
Derivatives	[4]	752	752
Fair Value [Member]
Financial Assets [Abstract]
Cash and due from banks	[1]	181,929	98,086
Federal Reserve and Federal Home Loan Bank stock and other investments	[2]	4,528	10,756
Investment securities held to maturity	[2]	19,633	63,272
Investment securities available for sale	[2]	194,273	247,099
Loans held for sale	[2]	1,504	1,666
Loans, net of allowance	[2],[3],[4]	1,687,501	1,628,169
Accrued interest and loan fees receivable	[2]	5,840	5,859
Financial Liabilities [Abstract]
Non-maturity deposits	[2]	1,724,968	1,555,980
Time deposits	[2]	219,146	224,408
Borrowings	[2]	15,224	164,827
Accrued interest payable	[2]	156	198
Derivatives	[4]	$ 752	$ 752
[1]	Level 1
[2]	Level 2
[3]	Impaired loans are generally classified within Level 3 of the fair value hierarchy.
[4]	Level 3

FAIR VALUE, Non-recurring Basis

FAIR VALUE, Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets measured at fair value on a non-recurring basis [Abstract]
Impaired loans	$ 1,877	$ 2,715
OREO	650
Total	2,527	2,715
Significant Unobservable Inputs (Level 3) [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Impaired loans	1,877	2,715
OREO	650
Total	$ 2,527	$ 2,715

FAIR VALUE, Non-recurring Bas49

FAIR VALUE, Non-recurring Basis, Quantitative Information (Details) - Level 3 [Member] - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2016	Dec. 31, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total		$ 1,877	$ 2,715
Third Party Appraisal [Member] | Residential Mortgages [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total		$ 1,591	$ 2,311
Discount	[1]	25.00%	25.00%
Third Party Appraisal [Member] | Residential Mortgages [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated selling costs		9.00%	9.00%
Third Party Appraisal [Member] | Residential Mortgages [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated selling costs		15.00%	15.00%
Third Party Appraisal [Member] | Home Equity [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total		$ 218	$ 280
Discount	[1]	25.00%	25.00%
Third Party Appraisal [Member] | Home Equity [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated selling costs		9.00%	9.00%
Third Party Appraisal [Member] | Home Equity [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated selling costs		15.00%	15.00%
Third Party Appraisal [Member] | Consumer [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total		$ 68	$ 124
Discount	[2]	25.00%	25.00%
Third Party Appraisal [Member] | Consumer [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated selling costs		10.00%	10.00%
Third Party Appraisal [Member] | Consumer [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated selling costs		12.00%	12.00%
Third Party Appraisal [Member] | OREO [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total		$ 650	$ 0
Estimated holding/selling costs		11.00%	11.00%
[1]	Of which estimated selling costs are approximately 9% - 15% of the total discount.
[2]	Of which estimated selling costs are approximately 10% - 12% of the total discount.

FAIR VALUE, Recurring Basis (De

FAIR VALUE, Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets [Abstract]
Total securities available for sale	$ 194,273	$ 247,099
Fair Value, Measurements, Recurring [Member]
Assets [Abstract]
U.S. Government agency securities		28,516
Obligations of states and political subdivisions	71,958	104,682
Collateralized mortgage obligations	18,396	15,549
Mortgage-backed securities	95,294	92,442
Corporate bonds	8,625	5,910
Total securities available for sale	194,273	247,099
Liabilities [Abstract]
Derivatives	752	752
Total	752	752
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
U.S. Government agency securities		28,516
Obligations of states and political subdivisions	71,958	104,682
Collateralized mortgage obligations	18,396	15,549
Mortgage-backed securities	95,294	92,442
Corporate bonds	8,625	5,910
Total securities available for sale	194,273	247,099
Liabilities [Abstract]
Derivatives	0	0
Total	0	0
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
U.S. Government agency securities		0
Obligations of states and political subdivisions	0	0
Collateralized mortgage obligations	0	0
Mortgage-backed securities	0	0
Corporate bonds	0	0
Total securities available for sale	0	0
Liabilities [Abstract]
Derivatives	752	752
Total	$ 752	$ 752

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 ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Roll Forward]
Beginning balance	$ 752	$ 752	$ 752	$ 752
Net change	0	0	0	0
Ending balance	$ 752	$ 752	$ 752	$ 752

LEGAL PROCEEDINGS (Details)

LEGAL PROCEEDINGS (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Maximum [Member]
Loss Contingencies [Line Items]
Attorneys fees and expenses	$ 300,000

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Assets pledged as collateral to the Federal Home Loan Bank	$ 663,000	$ 746,000
Federal Home Loan Bank borrowings	15,000	165,000
Federal Home Loan Bank Borrowings Short-Term [Member]
Debt Instrument [Line Items]
Daily average outstanding	63,201	63,935
Total interest cost	$ 276	$ 252
Average interest rate paid	0.58%	0.39%
Maximum amount outstanding at any month-end	$ 160,000	$ 155,000
Ending balance	$ 0	$ 150,000
Federal Home Loan Bank Borrowings Short-Term [Member] | Weighted Average [Member]
Debt Instrument [Line Items]
Weighted-average interest rate on balances outstanding	0.00%	0.52%
Federal Home Loan Bank Borrowings Long-Term [Member]
Debt Instrument [Line Items]
Daily average outstanding	$ 15,000	$ 10,808
Total interest cost	$ 198	$ 190
Average interest rate paid	1.76%	1.76%
Maximum amount outstanding at any month-end	$ 15,000	$ 15,000
Ending balance	$ 15,000	$ 15,000
Federal Home Loan Bank Borrowings Long-Term [Member] | Weighted Average [Member]
Debt Instrument [Line Items]
Weighted-average interest rate on balances outstanding	1.76%	1.76%
Federal Funds Purchased [Member]
Debt Instrument [Line Items]
Daily average outstanding	$ 2	$ 3
Total interest cost	$ 0	$ 0
Average interest rate paid	0.74%	0.45%
Maximum amount outstanding at any month-end	$ 0	$ 0
Ending balance	$ 0	$ 0
Federal Funds Purchased [Member] | Weighted Average [Member]
Debt Instrument [Line Items]
Weighted-average interest rate on balances outstanding	0.00%	0.00%