Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 13, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CHEMUNG FINANCIAL CORP | ||
Entity Central Index Key | 763563 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $100,470,741 | ||
Entity Common Stock, Shares Outstanding | 4,647,320 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from financial institutions | $28,130 | $31,600 |
Interest-bearing deposits in other financial institutions | 1,033 | 20,009 |
Total cash and cash equivalents | 29,163 | 51,609 |
Trading assets, at fair value | 549 | 366 |
Securities available for sale, at estimated fair value | 280,507 | 346,016 |
Securities held to maturity, estimated fair value of $6,197 at December 31, 2014 and $6,930 at December 31, 2013 | 5,831 | 6,495 |
Federal Home Loan Bank and Federal Reserve Bank Stock, at cost | 5,535 | 4,482 |
Loans, net of deferred loan fees | 1,121,574 | 995,866 |
Allowance for loan losses | -13,686 | -12,776 |
Loans, net | 1,107,888 | 983,090 |
Loans held for sale | 665 | 695 |
Premises and equipment, net | 32,287 | 30,039 |
Goodwill | 21,824 | 21,824 |
Other intangible assets, net | 5,067 | 6,377 |
Bank owned life insurance | 2,764 | 2,796 |
Accrued interest and other assets | 32,459 | 22,354 |
Total assets | 1,524,539 | 1,476,143 |
Deposits: | ||
Non-interest-bearing | 366,298 | 351,222 |
Interest-bearing | 913,716 | 915,034 |
Total deposits | 1,280,014 | 1,266,256 |
Federal Home Loan Bank overnight advances | 30,830 | 0 |
Securities sold under agreements to repurchase | 29,652 | 32,701 |
Federal Home Loan Bank term advances | 19,310 | 25,243 |
Long term capital lease obligation | 2,976 | 0 |
Dividends payable | 1,204 | 1,195 |
Accrued interest payable and other liabilities | 26,925 | 12,170 |
Total liabilities | 1,390,911 | 1,337,565 |
Shareholders' equity: | ||
Common stock, $.01 par value per share, 10,000,000 shares authorized; 5,310,076 issued at December 31, 2014 and December 31, 2013 | 53 | 53 |
Additional-paid-in capital | 45,355 | 45,399 |
Retained earnings | 114,383 | 111,031 |
Treasury stock, at cost (680,948 shares at December 31, 2014; 707,674 shares at December 31, 2013) | -17,378 | -18,060 |
Accumulated other comprehensive income (loss) | -8,785 | 155 |
Total shareholders' equity | 133,628 | 138,578 |
Total liabilities and shareholders' equity | $1,524,539 | $1,476,143 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ||
Securities held to maturity, estimated fair value | $6,197 | $6,930 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 5,310,076 | 5,310,076 |
Treasury stock, at cost (in shares) | 680,948 | 707,674 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and Dividend Income: | |||
Loans, including fees | $47,139 | $45,136 | $45,298 |
Taxable securities | 5,043 | 4,391 | 5,357 |
Tax exempt securities | 967 | 1,100 | 1,268 |
Interest-bearing deposits | 64 | 36 | 153 |
Total interest and dividend income | 53,213 | 50,663 | 52,076 |
Interest Expense: | |||
Deposits | 2,043 | 2,350 | 3,181 |
Borrowed funds | 754 | 824 | 1,059 |
Securities sold under agreements to repurchase | 848 | 858 | 994 |
Total interest expense | 3,645 | 4,032 | 5,234 |
Net interest income | 49,568 | 46,631 | 46,842 |
Provision for loan losses | 3,981 | 2,755 | 828 |
Net interest income after provision for loan losses | 45,587 | 43,876 | 46,014 |
Other operating income: | |||
Wealth management group fee income | 7,747 | 7,344 | 6,827 |
Service charges on deposit accounts | 5,281 | 4,706 | 4,241 |
Net gains on securities transactions | 6,869 | 16 | 301 |
Net impairment loss on investment securities | 0 | -29 | 0 |
Net gain on sales of loans held for sale | 301 | 503 | 484 |
Casualty gains | 0 | 0 | 790 |
Net gains (losses) on sales of other real estate owned | -64 | 28 | -45 |
Gain from bargain purchase | 0 | 470 | 0 |
Income from bank owned life insurance | 78 | 84 | 87 |
Other | 6,544 | 4,955 | 4,503 |
Total other operating income | 26,756 | 18,077 | 17,188 |
Other operating expenses: | |||
Salaries and wages | 21,315 | 19,365 | 18,918 |
Pension and other employee benefits | 5,733 | 5,939 | 5,624 |
Net occupancy expenses | 7,098 | 5,501 | 5,164 |
Furniture and equipment expenses | 2,972 | 2,326 | 2,205 |
Data processing expense | 6,393 | 4,750 | 4,421 |
Professional services | 1,597 | 928 | 1,443 |
Legal settlements | 4,250 | 0 | 0 |
Amortization of intangible assets | 1,310 | 921 | 1,047 |
Marketing and advertising expense | 1,079 | 1,033 | 1,068 |
Other real estate owned expenses | 247 | 194 | 328 |
FDIC insurance | 1,116 | 866 | 807 |
Loan expense | 811 | 779 | 788 |
Merger and acquisition related expenses | 115 | 1,387 | 30 |
Other | 6,441 | 5,411 | 4,952 |
Total other operating expenses | 60,477 | 49,400 | 46,795 |
Income (loss) before income tax expense | 11,866 | 12,553 | 16,407 |
Income tax expense | 3,709 | 3,822 | 5,385 |
Net income | $8,157 | $8,731 | $11,022 |
Weighted average shares outstanding (in shares) | 4,683 | 4,660 | 4,641 |
Basic and diluted earnings per share (in dollars per share) | $1.74 | $1.87 | $2.38 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net income | $8,157 | $8,731 | $11,022 |
Other comprehensive income (loss): | |||
Unrealized holding (losses) gains on securities available for sale | 236 | -3,229 | 411 |
Reclassification adjustment for other-than-temporary losses realized in net income | 0 | 29 | 0 |
Reclassification adjustment gains realized in net income | -6,869 | -16 | -301 |
Net unrealized (losses) gains | -6,633 | -3,216 | 110 |
Tax effect | 2,550 | 1,236 | -75 |
Net of tax amount | -4,083 | -1,980 | 35 |
Change in funded status of defined benefit pension plan and other benefit plans: | |||
Net gain (loss) arising during the period | -8,481 | 6,487 | -3,624 |
Reclassification adjustment for amortization of prior service costs | -90 | -83 | -83 |
Reclassification adjustment for amortization of net actuarial loss | 681 | 1,624 | 1,431 |
Total before tax effect | -7,890 | 8,028 | -2,276 |
Tax effect | 3,033 | -3,086 | 875 |
Net of tax amount | -4,857 | 4,942 | -1,401 |
Total other comprehensive income (loss) | -8,940 | 2,962 | -1,366 |
Comprehensive income (loss) | ($783) | $11,693 | $9,656 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Thousands, unless otherwise specified | ||||||
Balances at Dec. 31, 2011 | $53 | $45,582 | $100,629 | ($18,894) | ($1,441) | $125,929 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 11,022 | 0 | 0 | 11,022 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | -1,366 | -1,366 |
Restricted stock awards | 0 | 80 | 0 | 0 | 0 | 80 |
Distribution of shares of treasury stock granted for directors' deferred compensation plan | 0 | -82 | 0 | 83 | 0 | 1 |
Distribution of shares of treasury stock granted for employee restricted stock awards, net | 0 | -274 | 0 | 274 | 0 | 0 |
Restricted stock units for directors' deferred compensation plan | 0 | 87 | 0 | 0 | 0 | 87 |
Cash dividends declared | 0 | 0 | -4,573 | 0 | 0 | -4,573 |
Distribution of shares of treasury stock for directors' compensation | 0 | -28 | 0 | 261 | 0 | 233 |
Distribution of shares of treasury stock for employee compensation | 0 | -8 | 0 | 88 | 0 | 80 |
Sale of shares of treasury stock | 0 | 0 | 0 | 258 | 0 | 258 |
Purchase of shares of treasury stock | 0 | 0 | 0 | -636 | 0 | -636 |
Balances at Dec. 31, 2012 | 53 | 45,357 | 107,078 | -18,566 | -2,807 | 131,115 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 8,731 | 0 | 0 | 8,731 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 2,962 | 2,962 |
Restricted stock awards | 0 | 131 | 0 | 0 | 0 | 131 |
Distribution of shares of treasury stock granted for directors' deferred compensation plan | 0 | -75 | 0 | 86 | 0 | 11 |
Distribution of shares of treasury stock granted for employee restricted stock awards, net | 0 | -206 | 0 | 206 | 0 | 0 |
Restricted stock units for directors' deferred compensation plan | 0 | 99 | 0 | 0 | 0 | 99 |
Cash dividends declared | 0 | 0 | -4,778 | 0 | 0 | -4,778 |
Distribution of shares of treasury stock for directors' compensation | 0 | 14 | 0 | 203 | 0 | 217 |
Distribution of shares of treasury stock for employee compensation | 0 | 7 | 0 | 105 | 0 | 112 |
Forfeit of restricted stock awards | 0 | 61 | 0 | -61 | 0 | 0 |
Sale of shares of treasury stock | 0 | 11 | 0 | 60 | 0 | 71 |
Purchase of shares of treasury stock | 0 | 0 | 0 | -93 | 0 | -93 |
Balances at Dec. 31, 2013 | 53 | 45,399 | 111,031 | -18,060 | 155 | 138,578 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 8,157 | 0 | 0 | 8,157 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | -8,940 | -8,940 |
Restricted stock awards | 0 | 151 | 0 | 0 | 0 | 151 |
Distribution of shares of treasury stock granted for directors' deferred compensation plan | 0 | -85 | 0 | 88 | 0 | 3 |
Distribution of shares of treasury stock granted for employee restricted stock awards, net | 0 | -288 | 0 | 288 | 0 | 0 |
Restricted stock units for directors' deferred compensation plan | 0 | 94 | 0 | 0 | 0 | 94 |
Cash dividends declared | 0 | 0 | -4,805 | 0 | 0 | -4,805 |
Distribution of shares of treasury stock for directors' compensation | 0 | 59 | 0 | 214 | 0 | 273 |
Distribution of shares of treasury stock for employee compensation | 0 | 25 | 0 | 92 | 0 | 117 |
Balances at Dec. 31, 2014 | $53 | $45,355 | $114,383 | ($17,378) | ($8,785) | $133,628 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||
Distribution of shares of treasury stock for directors' deferred compensation (in shares) | 3,467 | 3,356 | 3,240 |
Distribution of shares of treasury stock granted for employee restricted stock awards (in shares) | 11,279 | 8,087 | 10,760 |
Forfeit of shares of restricted stock awards (in shares) | 1,797 | ||
Cash dividends declared (in dollars per share) | $1.04 | $1.04 | $1 |
Distribution of shares of treasury stock for directors' compensation (in shares) | 8,385 | 7,969 | 10,238 |
Distribution of shares of treasury stock for employee compensation (in shares) | 3,595 | 4,116 | 3,453 |
Sale of shares of treasury stock (in shares) | 2,369 | 10,100 | |
Purchase of shares of treasury stock (in shares) | 3,094 | 25,468 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $8,157 | $8,731 | $11,022 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of intangible assets | 1,310 | 921 | 1,047 |
Deferred income tax (benefit) expense | -2,263 | -121 | 647 |
Provision for loan losses | 3,981 | 2,755 | 828 |
Loss on disposal of fixed assets | 14 | 0 | 0 |
Depreciation and amortization of fixed assets | 3,861 | 3,236 | 2,946 |
Amortization of premiums on securities, net | 2,398 | 2,280 | 1,827 |
Gains on sales of loans held for sale, net | -301 | -503 | -484 |
Proceeds from sales of loans held for sale | 14,062 | 20,076 | 15,684 |
Loans originated and held for sale | -13,731 | -19,210 | -15,862 |
Gain on bargain purchase | 0 | -470 | 0 |
Net (gains) losses on sale of other real estate owned | 64 | -28 | 45 |
Net gains on trading assets | -50 | -43 | -27 |
Net gains on securities transactions | -6,869 | -16 | -301 |
Net impairment loss recognized on investment securities | 0 | 29 | 0 |
Proceeds from sales of trading assets | 7 | 112 | 96 |
Purchase of trading assets | -140 | -87 | -123 |
(Increase) decrease in other assets | -7,438 | -6,213 | 6,084 |
Decrease in prepaid FDIC Assessment | 0 | 1,970 | 733 |
Decrease in accrued interest payable | -99 | -108 | -348 |
Expense related to restricted stock units for directors' deferred compensation plan | 94 | 99 | 87 |
Expense related to employee stock compensation | 117 | 112 | 80 |
Expense related to employee restricted stock awards | 151 | 131 | 80 |
Increase in other liabilities | 15,086 | 9,403 | 588 |
Proceeds from bank owned life insurance | 110 | 0 | 0 |
Income from bank owned life insurance | -78 | -84 | -87 |
Net cash provided by operating activities | 18,443 | 22,972 | 24,562 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from sales and calls of securities available for sale | 62,738 | 18,150 | 90,870 |
Proceeds from maturities and principal collected on securities available for sale | 24,222 | 44,046 | 29,342 |
Proceeds from maturities and principal collected on securities held to maturity | 3,201 | 5,703 | 4,296 |
Purchases of securities available for sale | -23,613 | -174,034 | -80,444 |
Purchases of securities held to maturity | -2,537 | -6,449 | -1,733 |
Purchase of Federal Home Loan Bank and Federal Reserve Bank stock | -3,907 | -16,124 | -26 |
Redemption of Federal Home Loan Bank and Federal Reserve Bank stock | 2,854 | 16,353 | 825 |
Purchases of premises and equipment | -2,586 | -3,711 | -3,668 |
Cash received acquisition of Bank of America branches | 0 | 173,673 | 0 |
Cash paid Bank of America branches | 0 | -2,768 | 0 |
Proceeds from sale of other real estate owned | 342 | 155 | 796 |
Net increase in loans | -131,852 | -101,481 | -97,115 |
Net cash used by investing activities | -71,138 | -46,487 | -56,857 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase in demand deposits, interest-bearing demand accounts, savings accounts, and insured money market accounts | 46,407 | 67,566 | 86,541 |
Net decrease in time deposits | -32,649 | -27,085 | -40,300 |
Net decrease in securities sold under agreements to repurchase | -3,049 | -9 | -4,396 |
Proceeds from FHLB overnight advances, net | 30,830 | 0 | 0 |
Repayments of Federal Home Loan Bank long term advances | -5,933 | -1,983 | -16,119 |
Payments made on capital lease | -561 | 0 | 0 |
Purchase of treasury stock | 0 | -93 | -636 |
Sale of treasury stock | 0 | 71 | 258 |
Cash dividends paid | -4,796 | -3,584 | -5,714 |
Net cash provided by financing activities | 30,249 | 34,883 | 19,634 |
Net (decrease) increase in cash and cash equivalents | -22,446 | 11,368 | -12,661 |
Cash and cash equivalents, beginning of period | 51,609 | 40,241 | 52,902 |
Cash and cash equivalents, end of period | 29,163 | 51,609 | 40,241 |
Cash paid during the year for: | |||
Interest | 3,744 | 4,163 | 5,643 |
Income Taxes | 3,346 | 5,304 | 1,732 |
Supplemental disclosure of non-cash activity: | |||
Transfer of loans to other real estate owned | 3,074 | 103 | 618 |
Dividends declared, not yet paid | 1,204 | 1,195 | 0 |
Assets acquired through long term capital lease obligation | $3,537 | $0 | $0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2014 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
To assist the reader, the Corporation has provided the following list of commonly used acronyms and abbreviations included in the Notes to Consolidated Financial Statements. | ||
Bank: Chemung Canal Trust Company | FRBNY: Federal Reserve Bank of New York | |
CDO: Collateralized Debt Obligation | Freddie Mac: Federal Home Loan Mortgage Corporation | |
Corporation: Chemung Financial Corporation | GAAP: U.S. generally accepted accounting principles | |
FASB: Financial Accounting Standards Board | OTTI: Other-than-temporary impairment | |
FDIC: Federal Deposit Insurance Corporation | PCI: Purchased credit impaired | |
FHLBNY: Federal Home Loan Bank of New York | SEC: Securities and Exchange Commission | |
FRB: Board of Governors of the Federal Reserve System | TDRs: Troubled debt restructurings | |
ORGANIZATION | ||
The Corporation, through its wholly owned subsidiaries, the Bank and CFS Group, Inc., provides a wide range of banking, financing, fiduciary and other financial services to its clients. The Corporation is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies. | ||
BASIS OF PRESENTATION | ||
The accompanying consolidated financial statements have been prepared in conformity with GAAP and include the accounts of the Corporation and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. | ||
SECURITIES | ||
Management determines the appropriate classification of securities at the time of purchase. If management has the intent and the Corporation has the ability at the time of purchase to hold securities until maturity, they are classified as held to maturity and carried at amortized cost. Securities to be held for indefinite periods of time or not intended to be held to maturity are classified as available for sale and carried at fair value. Unrealized holding gains and losses on securities classified as available for sale are excluded from earnings and are reported as accumulated other comprehensive income (loss) in shareholders' equity, net of the related tax effects, until realized. Realized gains and losses are determined using the specific identification method. | ||
Management evaluates securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | ||
In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, the Corporation compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. | ||
Premiums and discounts are amortized or accreted over the life of the related security as an adjustment of yield using the interest method. Dividend and interest income is recognized when collected. | ||
FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK STOCK | ||
The Bank is a member of both the FHLBNY and the FRBNY. FHLBNY members are required to own a certain amount of stock based on the level of borrowings and other factors, while FRBNY members are required to own a certain amount of stock based on a percentage of the Bank’s capital stock and surplus. FHLBNY and FRBNY stock are carried at cost and classified as non-marketable equities and periodically evaluated for impairment based on ultimate recovery of par value. Cash dividends are reported as income. | ||
BANK OWNED LIFE INSURANCE | ||
Bank Owned Life Insurance ("BOLI") is recorded at the amount that can be realized under the insurance contracts at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Changes in the cash surrender value are recorded in other income. | ||
LOANS HELD FOR SALE | ||
Certain mortgage loans are originated with the intent to sell. Loans held for sale are recorded at the lower of cost or fair value in the aggregate. Loans held for sale, as well as the commitments to sell the loans that are originated for sale, are regularly evaluated for changes in fair value. If necessary, a valuation allowance is established with a charge to income for unrealized losses attributable to a change in market rates. | ||
LOANS | ||
Loans are stated at the amount of unpaid principal balance net of deferred loan fees. Additionally, recorded investment in loans includes interest receivable on loans. The Corporation has the ability and intent to hold its loans for the foreseeable future. The Corporation’s loan portfolio, including acquired loans, is comprised of the following segments: (i) commercial and agricultural, (ii) commercial mortgages, (iii) residential mortgages, and (iv) consumer loans. | ||
Commercial and agricultural loans primarily consist of loans to small to mid-sized businesses in the Corporation’s market area in a diverse range of industries. These loans are typically made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. Commercial mortgage loans are generally non-owner occupied commercial properties or owner occupied commercial real estate with larger balances. Repayment of these loans is often dependent upon the successful operation and management of the properties and the businesses occupying the properties, as well as on the collateral securing the loan. Residential mortgage loans are generally made on the basis of the borrower’s ability to make repayment from their employment and other income, but are secured by real property. Consumer loans include home equity lines of credit and home equity loans, which exhibit many of the same characteristics as residential mortgages. Indirect and other consumer loans are typically secured by depreciable assets, such as automobiles or boats, and are dependent on the borrower’s continuing financial stability. | ||
Interest on loans is accrued and credited to operations using the interest method. Past due status is based on the contractual terms of the loan. The accrual of interest is generally discontinued and previously accrued interest is reversed when loans become 90 days delinquent. Loans may also be placed on non-accrual status if management believes such classification is otherwise warranted. All payments received on non-accrual loans are applied to principal. Loans are returned to accrual status when they become current as to principal and interest and remain current for a period of six consecutive months or when, in the opinion of management, the Corporation expects to receive all of its original principal and interest. Loan origination fees and certain direct loan origination costs are deferred and amortized over the life of the loan as an adjustment to yield, using the interest method. | ||
ACQUIRED LOANS | ||
Non-Impaired Acquired Loans: | ||
Loans acquired are initially recorded at fair value with no carryover of the related allowance for loan losses. After acquisition, losses beyond those estimated in determining the initial fair value are recognized through the allowance for loan losses. Determining fair value of the loans involves estimating the amount and timing of expected principal and interest cash flows to be collected on the loans and discounting those cash flows at a market interest rate. | ||
Purchased Credit Impaired Loans: | ||
Loans acquired that show evidence of credit deterioration since origination are considered purchased credit impaired loans These loans are recorded at the fair value of the amount paid, such that there is no carryover of the seller’s allowance for loan losses. | ||
Such purchased loans are accounted for individually. The Corporation estimates the amount and timing of expected cash flows for each purchased loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). | ||
After acquisition, losses are recognized by an increase in the allowance for loan losses. Over the life of the loan expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a reserve is established. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. These loans are charged against the allowance for loan losses when management believes that the collectability of all or a portion of the principal is unlikely. | ||
TROUBLED DEBT RESTRUCTURINGS | ||
A TDR is a formally renegotiated loan in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not have been granted to the borrower otherwise. Not all loans that are restructured as a TDR are classified as non-accrual before the restructuring occurs. Restructured loans can convert from non-accrual to accrual status when said loans have demonstrated performance, generally evidenced by six months of payment performance in accordance with the restructured terms, or by the presence of other significant items. | ||
ALLOWANCE FOR LOAN LOSSES | ||
The allowance is an amount that management believes will be adequate to absorb probable incurred losses on existing loans. The allowance is established based on management’s evaluation of the probable inherent losses in our portfolio in accordance with GAAP, and is comprised of both specific valuation allowances and general valuation allowances. | ||
A loan is classified as impaired when, based on current information and events, it is probable that the Corporation will be unable to collect both the principal and interest due under the contractual terms of the loan agreement. Specific valuation allowances are established based on management’s analyses of individually impaired loans. Factors considered by management in determining impairment include payment status, evaluations of the underlying collateral, expected cash flows, 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. If a loan is determined to be impaired and is placed on nonaccrual status, all future payments received are applied to principal and a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. | ||
The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. Loans not impaired but classified as substandard and special mention use a historical loss factor on a rolling five year history of net losses. For all other unclassified loans, the historical loss experience is determined by portfolio class and is based on the actual loss history experienced by the Corporation over the most recent two years. This actual loss experience is supplemented with other qualitative factors based on the risks present for each portfolio class. These qualitative factors include consideration of the following: (1) lending policies and procedures, including underwriting standards and collection, charge-off and recovery policies, (2) national and local economic and business conditions and developments, including the condition of various market segments, (3) loan profiles and volume of the portfolio, (4) the experience, ability, and depth of lending management and staff, (5) the volume and severity of past due, classified and watch-list loans, non-accrual loans, troubled debt restructurings, and other modifications (6) the quality of the Bank’s loan review system and the degree of oversight by the Bank’s Board of Directors, (7) collateral related issues: secured vs. unsecured, type, declining valuation environment and trend of other related factors, (8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations, (9) the effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Bank’s current portfolio and (10) the impact of the global economy. | ||
The allowance for loan losses is increased through a provision for loan losses charged to operations. Loans are charged against the allowance for loan losses when management believes that the collectability of all or a portion of the principal is unlikely. Management's evaluation of the adequacy of the allowance for loan losses is performed on a periodic basis and takes into consideration such factors as the credit risk grade assigned to the loan, historical loan loss experience and review of specific impaired loans. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation's allowance for loan losses. Such agencies may require the Corporation to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. | ||
PREMISES AND EQUIPMENT | ||
Land is carried at cost, while buildings, equipment, leasehold improvements and furniture are stated at cost less accumulated depreciation and amortization. Depreciation is charged to current operations under the straight-line method over the estimated useful lives of the assets, which range from 15 to 50 years for buildings and from 3 to 10 years for equipment and furniture. Amortization of leasehold improvements and leased equipment is recognized on the straight-line method over the shorter of the lease term or the estimated life of the asset. | ||
OTHER REAL ESTATE | ||
Real estate acquired through foreclosure or deed in lieu of foreclosure is recorded at estimated fair value of the property less estimated costs to dispose at the time of acquisition to establish a new carrying value. Write downs from the carrying value of the loan to estimated fair value which are required at the time of foreclosure are charged to the allowance for loan losses. Subsequent adjustments to the carrying values of such properties resulting from declines in fair value are charged to operations in the period in which the declines occur. | ||
INCOME TAXES | ||
The Corporation files a consolidated tax return. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for unused tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates to apply to taxable income in the years in which temporary differences are expected to be recovered or settled, or the tax loss carry forwards are expected to be utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | ||
A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. | ||
WEALTH MANAGEMENT GROUP FEE INCOME | ||
Assets held in a fiduciary or agency capacity for customers are not included in the accompanying consolidated balance sheets, since such assets are not assets of the Corporation. Wealth Management Group income is recognized on the accrual method as earned based on contractual rates applied to the balances of individual trust accounts. The unaudited market value of trust assets under administration total $1.956 billion at December 31, 2014 and $1.888 billion at December 31, 2013. | ||
POSTRETIREMENT BENEFITS | ||
Pension Plan: | ||
The Chemung Canal Trust Company Pension Plan is a non-contributory defined benefit pension plan. The Pension Plan is a “qualified plan” under the IRS Code and therefore must be funded. Contributions are deposited to the Plan and held in trust. The Plan assets may only be used to pay retirement benefits and eligible plan expenses. The plan was amended such that new employees hired on or after July 10, 2010 will not be eligible to participate in the plan, however, existing participants at that time will continue to accrue benefits. The amendment has resulted in a decrease over time in the future benefit obligations of the plan and the corresponding net periodic benefit cost associated with the plan. | ||
Under the Plan, pension benefits are based upon final average annual compensation where the annual compensation is total base earnings paid plus 401(k) salary deferrals. Bonuses, overtime, commissions and dividends are excluded. The normal retirement benefit equals 1.2% of final average compensation (highest consecutive five years of annual compensation in the prior ten years) times years of service (up to a maximum of 25 years), plus 1% of average monthly compensation for each additional year of service (up to a maximum of 10 years), plus .65% of average monthly compensation in excess of covered compensation for each year of credited service up to 35 years. Covered compensation is the average of the social security taxable wage bases in effect for the 35 year period prior to normal social security retirement age. Compensation for purposes of determining benefits under the Plan is reviewed annually. | ||
Defined Contribution Profit Sharing, Savings and Investment Plan: | ||
The Corporation also sponsors a 401(K) defined contribution profit sharing, savings and investment plan which covers all eligible employees with a minimum of 1,000 hours of annual service. The Corporation makes non-discretionary contributions and discretionary matching and profit sharing contributions to the plan based on the financial results of the Corporation. The plan's assets consist of Chemung Financial Corporation common stock, as well as other common and preferred stocks, U.S. Government securities, corporate bonds and notes, and mutual funds. The plan’s expense is the amount of non-discretionary contributions and discretionary matching and profit sharing contributions, and is charged to other expenses in the consolidated statements of income. | ||
Defined Benefit Health Care Plan: | ||
The Corporation sponsors a defined benefit health care plan that provides postretirement medical benefits to employees who meet minimum age and service requirements. This plan was amended effective July 1, 2006. Prior to this amendment, all retirees age 55 or older were eligible for coverage under the Corporation's self-insured health care plan, contributing 40% of the cost of the coverage. Under the amended plan, coverage for Medicare eligible retirees who reside in the Central New York geographic area is provided under a group sponsored plan with Excellus BlueCross BlueShield called Medicare Blue PPO, with the retiree paying 100% of the premium. Excellus BlueCross BlueShield assumes full liability for the payment of health care benefits incurred after July 1, 2006. Current Medicare eligible retirees who reside outside of the Central New York geographic area were eligible for coverage under the Corporation's self insurance plan thru December 31, 2009, contributing 50% of the cost of coverage. Effective January 1, 2010, these out of area retirees were eligible for coverage under a Medicare Supplement Plan C administered by Excellus BlueCross BlueShield, contributing 50% of the premium. Current and future retirees between the ages of 55 and 65, will continue to be eligible for coverage under the Corporation's self insured plan, contributing 50% of the cost of the coverage. Employees who retire after July 1, 2006, and become Medicare eligible will only have access to the Medicare Blue PPO plan. Additionally, effective July 1, 2006, dental benefits were eliminated for all retirees. The cost of the plan is based on actuarial computations of current and future benefits for employees, and is charged to other operating expenses in the consolidated statements of income. | ||
Executive Supplemental Pension Plan: | ||
U.S. laws place limitations on compensation amounts that may be included under the Pension Plan. The Executive Supplemental Pension Plan is provided to executives in order to produce total retirement benefits, as a percentage of compensation that is comparable to employees whose compensation is not restricted by the annual compensation limit. Pension amounts, which exceed the applicable Internal Revenue Service code limitations, will be paid under the Executive Supplemental Pension Plan. | ||
The Executive Supplemental Pension Plan is a “non-qualified plan” under the Internal Revenue Service Code. Contributions to the Plan are not held in trust; therefore, they may be subject to the claims of creditors in the event of bankruptcy or insolvency. When payments come due under the Plan, cash is distributed from general assets. The cost of the plan is based on actuarial computations of current and future benefits for executives, and is charged to other operating expense in the consolidated statements of income. | ||
Defined Contribution Supplemental Executive Retirement Plan: | ||
The Defined Contribution Supplemental Executive Retirement Plan is provided to certain executives to motivate and retain key management employees by providing a nonqualified retirement benefit that is payable at retirement, disability, death and certain other events. The Defined Contribution Supplemental Executive Retirement Plan will deliver a retirement benefit comparable to that received by other executive officers participating in the bank’s Defined Benefit Plan. | ||
The Supplemental Executive Retirement Plan is intended to be an unfunded plan maintained primarily for the purpose of providing deferred compensation benefits for a select group of management or highly compensated employees under Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974. The plan’s expense is the Corporation’s annual contribution plus interest credits. | ||
STOCK-BASED COMPENSATION | ||
Restricted Stock Plan: | ||
The Restricted Stock Plan, in effect as of June 16, 2010, is designed to align the interests of the Corporation’s executives and senior managers with the interests of the Corporation and its shareholders, to ensure the Corporation’s compensation practices are competitive and comparable with those of its peers, and to promote the retention of select management-level employees. Under the terms of the Plan, the Corporation may make discretionary grants of restricted shares of the Corporation’s common stock to or for the benefit of employees selected to participate in the Plan. Each officer of the Corporation, other than the Corporation’s chief executive officer, is eligible to participate in the Plan. Awards are based on the performance, responsibility and contributions of the employee and are targeted at an average of the peer group. The maximum number of shares of the Corporation’s common stock that may be awarded as restricted shares to Plan participants may not exceed 15,000 per calendar year. Twenty percent of the restricted stock awarded to a participant vests each year commencing with the first anniversary date of the award and is 100 percent vested on the fifth anniversary date. Except in the case of the participant’s death, disability, or in the event of a change in control, the participant’s unvested shares of unrestricted stock will be forfeited if the participant leaves the employ of the Corporation or the Bank, with or without cause, or if the participant retires prior to attainment of age 65. The plan’s expense is recognized as compensation expense ratably over the vesting period for the fair value of the award, measured at the grant date. | ||
Deferred Directors Fee Plan: | ||
A Deferred Directors Fee Plan for non-employee directors provides that directors may elect to defer receipt of all or any part of their fees. Deferrals are either credited with interest compounded quarterly at the Applicable Federal Rate for short-term debt instruments or converted to units, which appreciate or depreciate, as would an actual share of the Corporation’s common stock purchased on the deferral date. Cash deferrals will be paid into an interest bearing account and paid in cash. Units will be paid in shares of common stock. All directors’ fees are charged to other operating expense in the consolidated statements of income. | ||
Directors’ Compensation Plan: | ||
The purpose of the Directors’ Compensation Plan is to enable the Corporation to attract and retain persons of exceptional ability to serve as directors and stockholders in enhancing the value of the common stock of the Corporation. The Plan was originally established to provide for the cash payment of an annual retainer and fees to non-employee directors serving on the Board of Directors of the Corporation and the Bank. The Plan was subsequently amended to provide: (i) payment of additional compensation to each non-employee director in shares of the Corporation’s common stock in an amount equal to the total cash compensation earned by each non-employee director during the year for service on the Board of Directors of each of the Corporation and the Bank, and for each year of service thereafter, to be distributed from treasury shares in January of the following calendar year; and (ii) payment to the President and CEO of the Corporation and the Bank for his service on the Boards of Directors of the Corporation and the Bank in an amount equal in value to the average cash compensation awarded to non-employee directors who have served twelve (12) months of the previous year. The maximum number of shares of Corporation’s common stock that may be granted under the Plan may not exceed 20,000 per year. The Plan was amended, effective January 1, 2012, to provide that the value of a share of common stock granted under the Plan shall be determined as the average of the closing prices of a share of common stock as quoted on the applicable established securities market for each of the prior 30 trading days ending on December 31st of the calendar year. The cost of all cash and stock compensation is charged to other operating expenses in the consolidated statements of income. | ||
Incentive Compensation Plan: | ||
The Incentive Compensation Plan replaces the President and CEO Bonus Plan that was in effect prior to January 1, 2012. The purpose of the Incentive Compensation Plan is to attract and retain highly qualified officers and key employees, and to motivate such persons to serve the Corporation and the Bank and to expend maximum effort to improve the business results and earnings of the Corporation by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Corporation. To this end, the Incentive Compensation Plan provides for the discretionary grant of cash and/or unrestricted stock, i.e., common stock of the Corporation that is free of any restrictions, such as restrictions on transferability, to select officers and key employees as designated by the Board in its sole discretion. The maximum number of shares that can be awarded as unrestricted stock under the Incentive Compensation Plan to any individual is 10,000 per calendar year; and the maximum amount that may be earned in cash as an Incentive Award in any calendar year by any individual is $300,000. The right of any eligible employee to receive a grant of an incentive award, whether in the form of cash or unrestricted stock, is subject to performance standards that are specified by either the Compensation Committee or the Board. The cost of all cash and unrestricted stock compensation is charged to other operating expenses in the consolidated statements of income. | ||
Non-qualified Deferred Compensation Plan: | ||
The Deferred Compensation Plan allows a select group of management and employees to defer all or a portion of their annual compensation to a future date. Eligible employees are generally highly compensated employees and are designated by the Board from time to time. Investments in the plan are recorded as trading assets and deferred amounts are an unfunded liability of the Corporation. The plan requires deferral elections be made before the beginning of the calendar year during which the participant will perform the services to which the compensation relates. Participants in the Plan are required to elect a form of distribution, either lump sum payment or annual installments not to exceed ten years, and a time of distribution, either a specified age or a specified date. The terms and conditions for the deferral of compensation are subject to the provisions of 409A of the IRS Code. The income from investments and cost of the plan are recorded as other operating income and other operating expenses, respectively, in the consolidated statements of income. | ||
GOODWILL AND INTANGIBLE ASSETS | ||
Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Corporation has selected December 31 as the date to perform the annual impairment test. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The balances are reviewed for impairment on an ongoing basis or whenever events or changes in business circumstances warrant a review of the carrying value. If impairment is determined to exist, the related write-down of the intangible asset's carrying value is charged to operations. Based on these impairment reviews, the Corporation determined that goodwill and other intangible assets were not impaired at December 31, 2014. | ||
The Corporation's intangible assets with definite useful lives resulted from the purchase of the trust business of Partners Trust Bank in May of 2007, the acquisition of three former M&T Bank branch offices in March 2008, the acquisition of Canton Bancorp, Inc. in May 2009, the acquisition of Fort Orange Financial Corp. in April 2011 and the acquisition of six branches of Bank of America in November of 2013, with balances of $2.4 million, $21 thousand, $8 thousand, $1.1 million and $1.6 million, respectively, at December 31, 2014. The trust business intangible is being amortized to expense over the expected useful life of 15 years. The identifiable core deposit and customer relationship intangibles related to the M&T branch offices, and Canton Bancorp, Inc. acquisitions are being amortized to expense using a 7.25 year accelerated method. The identifiable core deposit related to the branch offices in the Bank of America acquisition is being amortized to expense using a 7 year accelerated method. The identifiable core deposit intangible related to the FOFC acquisition is being amortized using a 10 year sum-of-the-years digits method. | ||
ADVERTISING COSTS | ||
Costs for advertising products and services or for promoting our corporate image are expensed as incurred. | ||
EARNINGS PER COMMON SHARE | ||
Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Issuable shares including those related to directors’ restricted stock units and directors’ stock compensation are considered outstanding and are included in the computation of basic earnings per share as they are earned. All outstanding unvested share based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities. The impact of the participating securities on earnings per share is not material. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. | ||
COMPREHENSIVE INCOME (LOSS) | ||
Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and changes in the funded status of the Corporation’s defined benefit pension plan and other benefit plans, net of the related tax effect, which are also recognized as separate components of equity. | ||
CASH AND CASH EQUIVALENTS | ||
Cash and cash equivalents include cash and amounts due from banks and interest-bearing deposits with other financial institutions. | ||
TRADING ASSETS | ||
Securities that are held to fund a non-qualified deferred compensation plan are recorded at fair value with changes in fair value included in earnings. | ||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ||
The Corporation enters into sales of securities under agreements to repurchase. The agreements are treated as financings, and the obligations to repurchase securities sold are reflected as liabilities in the consolidated balance sheets. The amount of the securities underlying the agreements continues to be carried in the Corporation's securities portfolio. The Corporation has agreed to repurchase securities identical to those sold. The securities underlying the agreements are under the Corporation's control. | ||
OTHER FINANCIAL INSTRUMENTS | ||
The Corporation is a party to certain other financial instruments with off-balance sheet risk such as unused portions of lines of credit and commitments to fund new loans. The Corporation's policy is to record such instruments when funded. | ||
SEGMENT REPORTING | ||
The Corporation has identified separate operating segments and internal financial information is primarily reported and aggregated in two lines of business, banking and wealth management services. | ||
RECLASSIFICATION | ||
Amounts in the prior years' consolidated financial statements are reclassified whenever necessary to conform to the current year's presentation. | ||
SUBSEQUENT EVENTS | ||
The Corporation has evaluated subsequent events for recognition and disclosure through March, 13, 2015, which is the date the financial statements were available to be issued. | ||
RESTRICTIONS_ON_CASH_AND_DUE_F
RESTRICTIONS ON CASH AND DUE FROM BANK ACCOUNTS | 12 Months Ended |
Dec. 31, 2014 | |
RESTRICTIONS ON CASH AND DUE FROM BANK ACCOUNTS [Abstract] | |
RESTRICTIONS ON CASH AND DUE FROM BANK ACCOUNTS | (2) RESTRICTIONS ON CASH AND DUE FROM BANK ACCOUNTS |
The Corporation was in compliance with the reserve requirement with the Federal Reserve Bank of New York as of December 31, 2014. | |
The Corporation also maintains a pre-funded settlement account with a financial institution in the amount of $1.4 million for electronic funds transaction settlement purposes at December 31, 2014. |
SECURITIES
SECURITIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SECURITIES [Abstract] | |||||||||||||||||||||||||
SECURITIES | (3) SECURITIES | ||||||||||||||||||||||||
Amortized cost and estimated fair value of securities available for sale at December 31, 2014 and 2013 are as follows (amounts in thousands): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 180,535 | $ | 181,673 | $ | 187,098 | $ | 188,106 | |||||||||||||||||
Mortgage-backed securities, residential | 60,787 | 61,660 | 104,069 | 104,356 | |||||||||||||||||||||
Collateralized mortgage obligations | 335 | 338 | 1,001 | 1,015 | |||||||||||||||||||||
Obligations of states and political subdivisions | 30,677 | 31,451 | 37,339 | 38,376 | |||||||||||||||||||||
Corporate bonds and notes | 1,502 | 1,533 | 2,879 | 2,946 | |||||||||||||||||||||
SBA loan pools | 1,296 | 1,304 | 1,471 | 1,488 | |||||||||||||||||||||
Trust preferred securities | 1,906 | 2,028 | 1,898 | 2,034 | |||||||||||||||||||||
Corporate stocks | 285 | 520 | 444 | 7,695 | |||||||||||||||||||||
Total | $ | 277,323 | $ | 280,507 | $ | 336,199 | $ | 346,016 | |||||||||||||||||
Gross unrealized gains and losses on securities available for sale at December 31, 2014 and 2013, were as follows (amounts in thousands): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 1,300 | $ | 162 | $ | 1,914 | $ | 906 | |||||||||||||||||
Mortgage-backed securities, residential | 892 | 19 | 1,037 | 750 | |||||||||||||||||||||
Collateralized mortgage obligations | 3 | - | 14 | - | |||||||||||||||||||||
Obligations of states and political subdivisions | 802 | 28 | 1,059 | 22 | |||||||||||||||||||||
Corporate bonds and notes | 35 | 4 | 76 | 9 | |||||||||||||||||||||
SBA loan pools | 11 | 3 | 17 | - | |||||||||||||||||||||
Trust preferred securities | 122 | - | 136 | - | |||||||||||||||||||||
Corporate stocks | 235 | - | 7,253 | 2 | |||||||||||||||||||||
Total | $ | 3,400 | $ | 216 | $ | 11,506 | $ | 1,689 | |||||||||||||||||
The amortized cost and estimated fair value of debt securities available for sale are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (amounts in thousands): | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Within one year | $ | 37,087 | $ | 37,552 | |||||||||||||||||||||
After one, but within five years | 172,100 | 173,534 | |||||||||||||||||||||||
After five, but within ten years | 5,433 | 5,599 | |||||||||||||||||||||||
After ten years | - | - | |||||||||||||||||||||||
Mortgage-backed securities, residential | 60,787 | 61,660 | |||||||||||||||||||||||
Collateralized mortgage obligations | 335 | 338 | |||||||||||||||||||||||
SBA loan pools | 1,296 | 1,304 | |||||||||||||||||||||||
Total | $ | 277,038 | $ | 279,987 | |||||||||||||||||||||
Actual maturities may differ from contractual maturities above because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
The proceeds from sales and calls of securities resulting in gains or losses are listed below (amounts in thousands): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Proceeds | $ | 36,258 | $ | 2,650 | $ | 26,210 | |||||||||||||||||||
Gross gains | $ | 6,869 | $ | 16 | $ | 301 | |||||||||||||||||||
Tax expense | $ | 2,641 | $ | 6 | $ | 116 | |||||||||||||||||||
Amortized cost and estimated fair value of securities held to maturity at December 31, 2014 and 2013 are as follows (amounts in thousands): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Amortized | Estimated Fair Value | Amortized | Estimated Fair Value | ||||||||||||||||||||||
Cost | Cost | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 5,175 | $ | 5,535 | $ | 5,472 | $ | 5,891 | |||||||||||||||||
Time deposits with other financial institutions | 656 | 662 | 1,023 | 1,039 | |||||||||||||||||||||
$ | 5,831 | $ | 6,197 | $ | 6,495 | $ | 6,930 | ||||||||||||||||||
Gross unrealized gains and losses on securities held to maturity at December 31, 2014 and 2013, were as follows (amounts in thousands): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 360 | $ | - | $ | 419 | $ | - | |||||||||||||||||
Time deposits with other financial institutions | 6 | - | 16 | - | |||||||||||||||||||||
Total | $ | 366 | $ | - | $ | 435 | $ | - | |||||||||||||||||
There were no sales of securities held to maturity in 2014 or 2013. | |||||||||||||||||||||||||
The contractual maturity of securities held to maturity is as follows at December 31, 2014 (amounts in thousands): | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Within one year | $ | 2,629 | $ | 2,658 | |||||||||||||||||||||
After one, but within five years | 2,199 | 2,390 | |||||||||||||||||||||||
After five, but within ten years | 1,003 | 1,149 | |||||||||||||||||||||||
After ten years | - | - | |||||||||||||||||||||||
Total | $ | 5,831 | $ | 6,197 | |||||||||||||||||||||
The following table summarizes the investment securities available for sale with unrealized losses at December 31, 2014 and December 31, 2013 by aggregated major security type and length of time in a continuous unrealized position (amounts in thousands): | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
2014 | Losses | Losses | Losses | ||||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 57,512 | $ | 108 | $ | 4,945 | $ | 54 | $ | 62,457 | $ | 162 | |||||||||||||
Mortgage-backed securities, residential | 11,051 | 19 | - | - | 11,051 | 19 | |||||||||||||||||||
Obligations of states and political subdivisions | 4,625 | 22 | 1,056 | 6 | 5,681 | 28 | |||||||||||||||||||
Corporate bonds and notes | - | - | 243 | 4 | 243 | 4 | |||||||||||||||||||
SBA loan pools | 276 | 1 | 316 | 2 | 592 | 3 | |||||||||||||||||||
Total temporarily impaired securities | $ | 73,464 | $ | 150 | $ | 6,560 | $ | 66 | $ | 80,024 | $ | 216 | |||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
2013 | Losses | Losses | Losses | ||||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 83,840 | $ | 867 | $ | 1,978 | $ | 39 | $ | 85,818 | $ | 906 | |||||||||||||
Mortgage-backed securities, residential | 63,115 | 750 | - | - | 63,115 | 750 | |||||||||||||||||||
Obligations of states and political subdivisions | 4,589 | 22 | - | - | 4,589 | 22 | |||||||||||||||||||
Corporate bonds and notes | 238 | 9 | - | - | 238 | 9 | |||||||||||||||||||
Corporate stocks | - | - | 2 | 2 | 2 | 2 | |||||||||||||||||||
Total temporarily impaired securities | $ | 151,782 | $ | 1,648 | $ | 1,980 | $ | 41 | $ | 153,762 | $ | 1,689 | |||||||||||||
Other-Than-Temporary-Impairment | |||||||||||||||||||||||||
As of December 31, 2014, the majority of the Corporation’s unrealized losses in the investment securities portfolio related to obligations of U.S. Government and U.S. Government sponsored enterprises and mortgage-backed securities. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Corporation does not have the intent to sell these securities and it is not likely that it will be required to sell these securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired at December 31, 2014. | |||||||||||||||||||||||||
During the fourth quarter of 2013, the Corporation sold one CDO consisting of a pool of trust preferred securities that had an amortized cost of $600 thousand. Total proceeds from the sale of this CDO, was $600 thousand resulting in a slight loss. The Corporation recognized $29 thousand of additional credit loss in OTTI during 2013. This CDO was sold in light of the uncertainty surrounding the recently released rules contained in the “Volcker Rule” regarding the ability of banks to hold these types of securities and based on current market conditions. | |||||||||||||||||||||||||
The table below presents a roll forward of the cumulative credit losses recognized in earnings for the periods ended December 31, 2014, 2013 and 2012 (amounts in thousands): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Beginning balance, January 1, | $ | 1,939 | $ | 3,506 | $ | 3,506 | |||||||||||||||||||
Amounts related to credit loss for which other-than-temporary impairment was not previously recognized | - | - | - | ||||||||||||||||||||||
Additions/Subtractions: | |||||||||||||||||||||||||
Amounts related to securities for which the company intends to sell or that it will be more likely than not that the company will be required to sell prior to recovery of amortized cost basis | - | - | - | ||||||||||||||||||||||
Reductions for increase in cash flows expected to be collected that are recognized over the remaining life of the security | - | - | - | ||||||||||||||||||||||
Reductions for previous credit losses realized on securities sold during the year | - | (1,596 | ) | - | |||||||||||||||||||||
Reductions for previous credit losses realized on securities liquidated during the year | (1,939 | ) | - | - | |||||||||||||||||||||
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | - | 29 | - | ||||||||||||||||||||||
Ending balance, December 31, | $ | - | $ | 1,939 | $ | 3,506 | |||||||||||||||||||
During the first quarter of 2014, the Corporation received notice that one CDO consisting of a pool of trust preferred securities was liquidated and recorded $500 thousand in other operating income during the first quarter of 2014 to reflect proceeds received from the liquidation. The Corporation does not own any other CDO’s in its investment securities portfolio. | |||||||||||||||||||||||||
The fair value of securities pledged to secure public funds on deposit or for other purposes as required by law was $190.7 million at December 31, 2014 and $188.9 million at December 31, 2013. | |||||||||||||||||||||||||
The table below shows the securities pledged to secure securities sold under agreements to repurchase at December 31, 2014 and 2013. (amounts in thousands) | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
Obligations of U.S. Government and U. S. Government sponsored enterprises | $ | 36,195 | $ | 36,641 | $ | 33,746 | $ | 34,369 | |||||||||||||||||
Mortgage-backed securities, residential | 7,934 | 8,350 | 11,802 | 12,365 | |||||||||||||||||||||
Collateralized mortgage obligations | 48 | 48 | 205 | 207 | |||||||||||||||||||||
Total | $ | 44,177 | $ | 45,039 | $ | 45,753 | $ | 46,941 | |||||||||||||||||
There are no securities of a single issuer (other than securities of U.S. Government sponsored enterprises) that exceed 10% of shareholders' equity at December 31, 2014 or 2013. | |||||||||||||||||||||||||
The Corporation has an equity investment in Cephas Capital Partners, L.P. This small business investment company was established for the purpose of providing financing to small businesses in market areas served by the Corporation, including minority-owned small businesses and those that are anticipated to create jobs for the low to moderate income levels in the targeted areas. As of December 31, 2014 and 2013, these investments totaled $0.7 million and $1.0 million, respectively, are included in other assets, and are accounted for under the equity method of accounting. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | (4) LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||
The composition of the loan portfolio, net of deferred loan fees is summarized as follows (amounts in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 165,385 | $ | 144,787 | |||||||||||||||||||||||||
Agricultural | 1,021 | 576 | |||||||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 54,831 | 27,440 | |||||||||||||||||||||||||||
Commercial mortgages | 397,762 | 345,707 | |||||||||||||||||||||||||||
Residential mortgages | 196,809 | 195,997 | |||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Credit cards | 1,654 | 1,756 | |||||||||||||||||||||||||||
Home equity lines and loans | 99,354 | 95,905 | |||||||||||||||||||||||||||
Indirect consumer loans | 184,763 | 164,846 | |||||||||||||||||||||||||||
Direct consumer loans | 19,995 | 18,852 | |||||||||||||||||||||||||||
Total loans, net of deferred loan fees | $ | 1,121,574 | $ | 995,866 | |||||||||||||||||||||||||
Interest receivable on loans | 2,780 | 2,597 | |||||||||||||||||||||||||||
Total recorded investment in loans | $ | 1,124,354 | $ | 998,463 | |||||||||||||||||||||||||
Residential mortgages held for sale as of December 31, 2014 and 2013 totaling $0.7 million and $0.7 million, respectively, are not included in the above table. | |||||||||||||||||||||||||||||
Residential mortgages totaling $152.7 million at December 31, 2014 and $145.1 million at December 31, 2013 were pledged under a blanket collateral agreement for the Corporation's line of credit with the FHLBNY. | |||||||||||||||||||||||||||||
The Corporation's concentrations of credit risk by loan type are reflected in the preceding table. The concentrations of credit risk with standby letters of credit, committed lines of credit and commitments to originate new loans generally follow the loan classifications in the table above. | |||||||||||||||||||||||||||||
The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2014, 2013 and 2012, respectively (amounts in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial, and Agricultural | Commercial Mortgages | Residential Mortgages | Consumer Loans | Unallocated | Total | |||||||||||||||||||||||
Beginning balance: | $ | 1,979 | $ | 6,243 | $ | 1,517 | $ | 3,037 | $ | - | $ | 12,776 | |||||||||||||||||
Charge Offs: | (444 | ) | (2,229 | ) | (97 | ) | (1,508 | ) | - | (4,278 | ) | ||||||||||||||||||
Recoveries: | 385 | 156 | 32 | 634 | - | 1,207 | |||||||||||||||||||||||
Net (charge offs) recoveries | (59 | ) | (2,073 | ) | (65 | ) | (874 | ) | - | (3,071 | ) | ||||||||||||||||||
Provision | (460 | ) | 2,156 | 120 | 2,165 | - | 3,981 | ||||||||||||||||||||||
Ending balance | $ | 1,460 | $ | 6,326 | $ | 1,572 | $ | 4,328 | $ | - | $ | 13,686 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial, and Agricultural | Commercial Mortgages | Residential Mortgages | Consumer Loans | Unallocated | Total | |||||||||||||||||||||||
Beginning balance: | $ | 1,708 | $ | 4,428 | $ | 1,565 | $ | 2,706 | $ | 26 | $ | 10,433 | |||||||||||||||||
Charge Offs: | (186 | ) | (44 | ) | (124 | ) | (1,139 | ) | - | (1,493 | ) | ||||||||||||||||||
Recoveries: | 537 | 98 | 65 | 381 | - | 1,081 | |||||||||||||||||||||||
Net recoveries (charge offs) | 351 | 54 | (59 | ) | (758 | ) | - | (412 | ) | ||||||||||||||||||||
Provision | (80 | ) | 1,761 | 11 | 1,089 | (26 | ) | 2,755 | |||||||||||||||||||||
Ending balance | $ | 1,979 | $ | 6,243 | $ | 1,517 | $ | 3,037 | $ | - | $ | 12,776 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial, and Agricultural | Commercial Mortgages | Residential Mortgages | Consumer Loans | Unallocated | Total | |||||||||||||||||||||||
Beginning balance: | $ | 3,143 | $ | 2,570 | $ | 1,310 | $ | 2,193 | $ | 443 | $ | 9,659 | |||||||||||||||||
Reclassification of acquired loan discount | 74 | 50 | - | - | - | 124 | |||||||||||||||||||||||
Charge Offs: | (181 | ) | (335 | ) | (83 | ) | (674 | ) | - | (1,273 | ) | ||||||||||||||||||
Recoveries: | 802 | 55 | - | 238 | - | 1,095 | |||||||||||||||||||||||
Net recoveries (charge offs) | 621 | (280 | ) | (83 | ) | (436 | ) | - | (178 | ) | |||||||||||||||||||
Provision | (2,130 | ) | 2,088 | 338 | 949 | (417 | ) | 828 | |||||||||||||||||||||
Ending balance | $ | 1,708 | $ | 4,428 | $ | 1,565 | $ | 2,706 | $ | 26 | $ | 10,433 | |||||||||||||||||
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial | Commercial Mortgages | Residential Mortgages | Consumer Loans | Total | ||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 89 | $ | 1,145 | $ | - | $ | 1 | $ | 1,235 | |||||||||||||||||||
Collectively evaluated for impairment | 1,335 | 5,145 | 1,550 | 4,327 | 12,357 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 36 | 36 | 22 | - | 94 | ||||||||||||||||||||||||
Total ending allowance balance | $ | 1,460 | $ | 6,326 | $ | 1,572 | $ | 4,328 | $ | 13,686 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial | Commercial Mortgages | Residential Mortgages | Consumer Loans | Total | ||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 576 | $ | 466 | $ | - | $ | 4 | $ | 1,046 | |||||||||||||||||||
Collectively evaluated for impairment | 1,403 | 4,407 | 1,497 | 3,033 | 10,340 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | - | 1,370 | 20 | - | 1,390 | ||||||||||||||||||||||||
Total ending allowance balance | $ | 1,979 | $ | 6,243 | $ | 1,517 | $ | 3,037 | $ | 12,776 | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Loans: | Commercial | Commercial Mortgages | Residential Mortgages | Consumer Loans | Total | ||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,452 | $ | 13,712 | $ | 254 | $ | 486 | $ | 15,904 | |||||||||||||||||||
Loans collectively evaluated for impairment | 164,748 | 438,246 | 196,783 | 306,042 | 1,105,819 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 620 | 1,761 | 250 | - | 2,631 | ||||||||||||||||||||||||
Total ending loans balance | $ | 166,820 | $ | 453,719 | $ | 197,287 | $ | 306,528 | $ | 1,124,354 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Loans: | Commercial | Commercial Mortgages | Residential Mortgages | Consumer Loans | Total | ||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,946 | $ | 10,703 | $ | 117 | $ | 131 | $ | 13,897 | |||||||||||||||||||
Loans collectively evaluated for impairment | 142,108 | 354,636 | 196,147 | 281,979 | 974,870 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 678 | 8,757 | 261 | - | 9,696 | ||||||||||||||||||||||||
Total ending loans balance | $ | 145,732 | $ | 374,096 | $ | 196,525 | $ | 282,110 | $ | 998,463 | |||||||||||||||||||
The following tables present loans individually evaluated for impairment recognized by class of loans as of December 31, 2014 and December 31, 2013, the average recorded investment and interest income recognized by class of loans as of the years ended December 31, 2014, 2013 and 2012 (amounts in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,359 | $ | 1,364 | $ | - | $ | 1,906 | $ | 1,909 | $ | - | |||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 1,927 | 1,910 | - | 2,329 | 2,319 | - | |||||||||||||||||||||||
Commercial mortgages | 7,803 | 7,708 | - | 7,406 | 7,439 | - | |||||||||||||||||||||||
Residential mortgages | 253 | 253 | - | 117 | 117 | - | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines and loans | 429 | 432 | - | 71 | 73 | - | |||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 89 | 89 | 89 | 1,037 | 1,037 | ||||||||||||||||||||||||
Commercial mortgages: | 576 | ||||||||||||||||||||||||||||
Commercial mortgages | 4,210 | 4,094 | 1,145 | 951 | 945 | ||||||||||||||||||||||||
Consumer loans: | 466 | ||||||||||||||||||||||||||||
Home equity lines and loans | 54 | 54 | 1 | 58 | 58 | 4 | |||||||||||||||||||||||
Total | $ | 16,124 | $ | 15,904 | $ | 1,235 | $ | 13,875 | $ | 13,897 | $ | 1,046 | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized (1) | Average Recorded Investment | Interest Income Recognized (1) | Average Recorded Investment | Interest Income Recognized (1) | ||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,463 | $ | 40 | $ | 1,605 | $ | 71 | $ | 481 | $ | 1 | |||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 2,104 | 102 | 3,364 | 95 | 73 | 1 | |||||||||||||||||||||||
Commercial mortgages | 7,492 | 259 | 5,991 | 249 | 1,990 | 10 | |||||||||||||||||||||||
Residential mortgages | 141 | 1 | 125 | - | 106 | - | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines & loans | 143 | 6 | 47 | 2 | 30 | - | |||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 502 | - | 719 | - | 1,831 | - | |||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | - | - | - | - | 4 | - | |||||||||||||||||||||||
Commercial mortgages | 1,611 | 41 | 867 | - | 872 | - | |||||||||||||||||||||||
Residential mortgages | - | - | - | - | 64 | - | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines and loans | 56 | 4 | 47 | 3 | - | - | |||||||||||||||||||||||
Direct consumer loans | - | - | 3 | - | - | - | |||||||||||||||||||||||
Total | $ | 13,512 | $ | 453 | $ | 12,768 | $ | 421 | $ | 5,451 | $ | 12 | |||||||||||||||||
(1) Cash basis interest income approximates interest income recognized. | |||||||||||||||||||||||||||||
The following tables present the recorded investment in past due and non-accrual status by class of loans as of December 31, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Current | 30-89 Days Past Due | 90 Days or more Past Due and accruing | Loans acquired with deteriorated credit quality | Non-Accrual (1) | Total | ||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 164,109 | $ | 756 | $ | - | $ | 620 | $ | 312 | $ | 165,797 | |||||||||||||||||
Agricultural | 1,023 | - | - | - | - | 1,023 | |||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 53,371 | - | 1,446 | - | 150 | 54,967 | |||||||||||||||||||||||
Commercial mortgages | 391,096 | 3,064 | - | 1,761 | 2,831 | 398,752 | |||||||||||||||||||||||
Residential mortgages | 191,089 | 2,333 | - | 250 | 3,615 | 197,287 | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Credit cards | 1,641 | 5 | 8 | - | - | 1,654 | |||||||||||||||||||||||
Home equity lines and loans | 98,340 | 736 | - | - | 515 | 99,591 | |||||||||||||||||||||||
Indirect consumer loans | 183,103 | 1,789 | - | - | 325 | 185,217 | |||||||||||||||||||||||
Direct consumer loans | 19,988 | 48 | - | - | 30 | 20,066 | |||||||||||||||||||||||
Total | $ | 1,103,760 | $ | 8,731 | $ | 1,454 | $ | 2,631 | $ | 7,778 | $ | 1,124,354 | |||||||||||||||||
(1) Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2014. | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Current | 30-89 Days Past Due | 90 Days or more Past Due and accruing | Loans acquired with deteriorated credit quality | Non-Accrual (1) | Total | ||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 143,100 | $ | 29 | $ | - | $ | 678 | $ | 1,348 | $ | 145,155 | |||||||||||||||||
Agricultural | 577 | - | - | - | - | 577 | |||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 24,742 | - | 1,454 | 774 | 540 | 27,510 | |||||||||||||||||||||||
Commercial mortgages | 335,123 | 1,138 | - | 7,983 | 2,342 | 346,586 | |||||||||||||||||||||||
Residential mortgages | 187,448 | 5,458 | - | 261 | 3,358 | 196,525 | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Credit cards | 1,729 | 9 | 19 | - | - | 1,757 | |||||||||||||||||||||||
Home equity lines and loans | 95,349 | 150 | - | - | 635 | 96,134 | |||||||||||||||||||||||
Indirect consumer loans | 163,810 | 1,235 | - | - | 249 | 165,294 | |||||||||||||||||||||||
Direct consumer loans | 18,830 | 50 | - | - | 45 | 18,925 | |||||||||||||||||||||||
Total | $ | 970,708 | $ | 8,069 | $ | 1,473 | $ | 9,696 | $ | 8,517 | $ | 998,463 | |||||||||||||||||
(1) Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2013. | |||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||
A modification of a loan may result in classification as a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Corporation offers various types of modifications which may involve a change in the schedule of payments, a reduction in the interest rate, an extension of the maturity date, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, requesting additional collateral, releasing collateral for consideration, substituting or adding a new borrower or guarantor, a permanent reduction of the recorded investment in the loan or a permanent reduction of the interest on the loan. | |||||||||||||||||||||||||||||
As of December 31, 2014, 2013 and 2012, the Corporation has a recorded investment in troubled debt restructurings of $9.7 million, $7.9 million, and $5.7 million, respectively. There were specific reserves of $0.3 million allocated for troubled debt restructurings at December 31, 2014 and December 31, 2013, respectively, and no specific reserves allocated at December 31, 2012. As of December 31, 2014, troubled debt restructurings totaling $8.7 were accruing interest under the modified terms and $1.0 million were on non-accrual status. As of December 31, 2013, troubled debt restructurings totaling $6.8 million were accruing interest under the modified terms and $1.1 million were on non-accrual status. As of December 31, 2012, troubled debt restructurings totaling $5.4 million were accruing interest under the modified terms and $0.4 million were on non-accrual status. The Corporation has committed additional amounts totaling up to less than $0.1 million and $0.2 million as of December 31, 2014 and December 31, 2013, respectively, to customers with outstanding loans that are classified as troubled debt restructurings. The Corporation did not commit to lend any additional amounts to customers with outstanding loans that were classified as troubled debt restructurings as of December 31, 2012. | |||||||||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a change in the schedule of payments, a reduction in the interest rate, an extension of the maturity date, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk or a permanent reduction of the recorded investment in the loan. | |||||||||||||||||||||||||||||
The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2014, 2013 and 2012 (amounts in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 4 | $ | 1,028 | $ | 1,028 | ||||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Commercial mortgages | 4 | 2,666 | 2,623 | ||||||||||||||||||||||||||
Residential mortgages | 1 | 149 | 150 | ||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines and loans | 1 | 366 | 366 | ||||||||||||||||||||||||||
Total | 10 | $ | 4,209 | $ | 4,167 | ||||||||||||||||||||||||
31-Dec-13 | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 5 | $ | 1,343 | $ | 1,343 | ||||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 1 | 326 | 326 | ||||||||||||||||||||||||||
Commercial mortgages | 1 | 133 | 133 | ||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines and loans | 3 | 134 | 134 | ||||||||||||||||||||||||||
Total | 10 | $ | 1,936 | $ | 1,936 | ||||||||||||||||||||||||
31-Dec-12 | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 4 | $ | 1,307 | $ | 1,307 | ||||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 1 | 251 | 251 | ||||||||||||||||||||||||||
Commercial mortgages | 3 | 3,872 | 3,872 | ||||||||||||||||||||||||||
Total | 8 | $ | 5,430 | $ | 5,430 | ||||||||||||||||||||||||
The troubled debt restructurings described above increased the allowance for loan losses by $0.2 million and resulted in less than $0.1 million in charge offs during the twelve months ended December 31, 2014. The troubled debt restructurings described above increased the allowance for loan losses by $0.1 million and resulted in no charge offs during the year ended December 31, 2013. The troubled debt restructurings described above did not increase the allowance for loan losses and resulted in no charge offs during the year ended December 31, 2012. | |||||||||||||||||||||||||||||
There were no payment defaults on any loans previously modified as troubled debt restructurings during the years ended December 31, 2014, December 31, 2013 or December 31, 2012, within twelve months following the modification. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. | |||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||
The Corporation establishes a risk rating at origination for all commercial loans. The main factors considered in assigning risk ratings include, but are not limited to: historic and future debt service coverage, collateral position, operating performance, liquidity, leverage, payment history, management ability, and the customer’s industry. Commercial relationship managers monitor all loans in their respective portfolios for any changes in the borrower’s ability to service their debt and affirm the risk ratings for the loans at least annually. | |||||||||||||||||||||||||||||
For the retail loans, which include residential mortgages, indirect and direct consumer loans, home equity lines and loans, and credit cards, once a loan is properly approved and closed, the Corporation evaluates credit quality based upon loan repayment. | |||||||||||||||||||||||||||||
The Corporation uses the risk rating system to identify criticized and classified loans. Commercial relationships within the criticized and classified risk ratings are analyzed quarterly. The Corporation uses the following definitions for criticized and classified loans (which are consistent with regulatory guidelines): | |||||||||||||||||||||||||||||
Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position as some future date. | |||||||||||||||||||||||||||||
Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capability of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||
Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | |||||||||||||||||||||||||||||
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans. Based on the analyses performed as of December 31, 2014 and December 31, 2013, the risk category of the recorded investment of loans by class of loans is as follows (amounts in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Not Rated | Pass | Loans | Special Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||
acquired with deteriorated credit quality | |||||||||||||||||||||||||||||
Commercial and | |||||||||||||||||||||||||||||
agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | - | $ | 158,140 | $ | 620 | $ | 3,695 | $ | 3,306 | $ | 36 | $ | 165,797 | |||||||||||||||
Agricultural | - | 1,023 | - | - | - | - | 1,023 | ||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | - | 51,525 | - | 3,292 | 150 | - | 54,967 | ||||||||||||||||||||||
Commercial mortgages | - | 365,448 | 1,761 | 20,871 | 10,266 | 406 | 398,752 | ||||||||||||||||||||||
Residential mortgages | 193,422 | - | 250 | - | 3,615 | - | 197,287 | ||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||
Credit cards | 1,654 | - | - | - | - | - | 1,654 | ||||||||||||||||||||||
Home equity lines and loans | 99,076 | - | - | - | 515 | - | 99,591 | ||||||||||||||||||||||
Indirect consumer loans | 184,940 | - | - | - | 277 | - | 185,217 | ||||||||||||||||||||||
Direct consumer loans | 20,045 | - | - | - | 21 | - | 20,066 | ||||||||||||||||||||||
Total | $ | 499,137 | $ | 576,136 | $ | 2,631 | $ | 27,858 | $ | 18,150 | $ | 442 | $ | 1,124,354 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Not Rated | Pass | Loans | Special Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||
acquired with deteriorated credit quality | |||||||||||||||||||||||||||||
Commercial and | |||||||||||||||||||||||||||||
agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | - | $ | 133,615 | $ | 678 | $ | 5,117 | $ | 4,724 | $ | 1,021 | $ | 145,155 | |||||||||||||||
Agricultural | - | 577 | - | - | - | - | 577 | ||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | - | 23,087 | 774 | 2,783 | 866 | - | 27,510 | ||||||||||||||||||||||
Commercial mortgages | - | 313,956 | 7,983 | 13,611 | 11,036 | - | 346,586 | ||||||||||||||||||||||
Residential mortgages | 192,995 | - | 261 | - | 3,269 | - | 196,525 | ||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||
Credit cards | 1,757 | - | - | - | - | - | 1,757 | ||||||||||||||||||||||
Home equity lines and loans | 95,422 | - | - | - | 712 | - | 96,134 | ||||||||||||||||||||||
Indirect consumer loans | 165,045 | - | - | - | 249 | - | 165,294 | ||||||||||||||||||||||
Direct consumer loans | 18,880 | - | - | - | 45 | - | 18,925 | ||||||||||||||||||||||
Total | $ | 474,099 | $ | 471,235 | $ | 9,696 | $ | 21,511 | $ | 20,901 | $ | 1,021 | $ | 998,463 | |||||||||||||||
The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Consumer Loans | |||||||||||||||||||||||||||||
Residential Mortgages | Credit Card | Home Equity Lines and Loans | Indirect Consumer Loans | Other Direct Consumer Loans | |||||||||||||||||||||||||
Performing | $ | 193,672 | $ | 1,654 | $ | 99,076 | $ | 184,892 | $ | 20,036 | |||||||||||||||||||
Non-Performing | 3,615 | - | 515 | 325 | 30 | ||||||||||||||||||||||||
$ | 197,287 | $ | 1,654 | $ | 99,591 | $ | 185,217 | $ | 20,066 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Consumer Loans | |||||||||||||||||||||||||||||
Residential Mortgages | Credit Card | Home Equity Lines and Loans | Indirect Consumer Loans | Other Direct Consumer Loans | |||||||||||||||||||||||||
Performing | $ | 193,167 | $ | 1,757 | $ | 95,499 | $ | 165,045 | $ | 18,880 | |||||||||||||||||||
Non-Performing | 3,358 | - | 635 | 249 | 45 | ||||||||||||||||||||||||
Total | $ | 196,525 | $ | 1,757 | $ | 96,134 | $ | 165,294 | $ | 18,925 | |||||||||||||||||||
At the time of the merger with Fort Orange Financial Corp., the Corporation identified certain loans with evidence of deteriorated credit quality, and the probability that the Corporation would be unable to collect all contractually required payments from the borrower. These loans are classified as PCI loans. The Corporation adjusted its estimates of future expected losses, cash flows, and renewal assumptions on the PCI loans during the current year. These adjustments were made for changes in expected cash flows due to loans refinanced beyond original maturity dates, impairments recognized subsequent to the acquisition, advances made for taxes or insurance to protect collateral held and payments received in excess of amounts originally expected. | |||||||||||||||||||||||||||||
The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from January 1, 2014 to December 31, 2014 (amounts in thousands): | |||||||||||||||||||||||||||||
Balance at | Income Accretion | All Other Adjustments | Balance at | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-14 | ||||||||||||||||||||||||||||
Contractually required principal and interest | $ | 11,230 | $ | - | $ | (7,609 | ) | $ | 3,621 | ||||||||||||||||||||
Contractual cash flows not expected to be collected (non accretable discount) | (543 | ) | - | (27 | ) | (570 | ) | ||||||||||||||||||||||
Cash flows expected to be collected | 10,687 | - | (7,636 | ) | 3,051 | ||||||||||||||||||||||||
Interest component of expected cash flows (accretable yield) | (991 | ) | 515 | 56 | (420 | ) | |||||||||||||||||||||||
Fair value of loans acquired with deteriorating credit quality | $ | 9,696 | $ | 515 | $ | (7,580 | ) | $ | 2,631 |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PREMISES AND EQUIPMENT [Abstract] | |||||||||
PREMISES AND EQUIPMENT | -5 | PREMISES AND EQUIPMENT | |||||||
Premises and equipment at December 31, 2014 and 2013 are as follows (amounts in thousands): | |||||||||
2014 | 2013 | ||||||||
Land | $ | 4,803 | $ | 4,803 | |||||
Buildings | 35,067 | 34,379 | |||||||
Projects in progress | 132 | - | |||||||
Equipment and furniture | 40,088 | 34,920 | |||||||
Leasehold improvements | 6,094 | 6,041 | |||||||
86,184 | 80,143 | ||||||||
Less accumulated depreciation and amortization | 53,897 | 50,104 | |||||||
$ | 32,287 | $ | 30,039 | ||||||
Depreciation expense was $3.9 million, $3.2 million and $2.9 million for 2014, 2013 and 2012, respectively. | |||||||||
Operating Leases: The Corporation leases certain branch properties under operating leases. Rent Expense was $2.0 million, $1.3 million, and $1.1 million for 2014, 2013, and 2012, respectively. Rent commitments, before considering renewal options that generally are present, were as follows (amounts in thousands): | |||||||||
Year | Estimated Expense | ||||||||
2015 | $ | 1,429 | |||||||
2016 | 1,166 | ||||||||
2017 | 1,143 | ||||||||
2018 | 1,147 | ||||||||
2019 | 834 | ||||||||
2020 and thereafter | 4,154 | ||||||||
Total | $ | 9,873 | |||||||
Capital Leases: The Corporation leases certain buildings under capital leases. The lease arrangements require monthly payments through 2030. | |||||||||
The Corporation has included these leases in premises and equipment as follows: | |||||||||
2014 | 2013 | ||||||||
Buildings | $ | 3,537 | $ | - | |||||
Accumulated depreciation | - | - | |||||||
$ | 3,537 | $ | - | ||||||
The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of December 31, 2014 (amounts in thousands): | |||||||||
Year | Amount | ||||||||
2015 | $ | 234 | |||||||
2016 | 234 | ||||||||
2017 | 234 | ||||||||
2018 | 234 | ||||||||
2019 | 234 | ||||||||
2020 and thereafter | 2,644 | ||||||||
Total minimum lease payments | 3,814 | ||||||||
Less amount representing interest | 838 | ||||||||
Present value of net minimum lease payments | $ | 2,976 |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | (6) GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||
The changes in goodwill included in the core banking segment during the years ended December 31, 2014 and 2013 were as follows (amounts in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning of year | $ | 21,824 | $ | 21,824 | |||||||||||||
Acquired goodwill | - | - | |||||||||||||||
End of year | $ | 21,824 | $ | 21,824 | |||||||||||||
Acquired intangible assets were as follows at December 31, 2014 and 2013 (amounts in thousands): | |||||||||||||||||
At December 31, 2014 | At December 31, 2013 | ||||||||||||||||
Balance Acquired | Accumulated Amortization | Balance Acquired | Accumulated Amortization | ||||||||||||||
Core deposit intangibles | $ | 5,975 | $ | 3,279 | $ | 5,975 | $ | 2,338 | |||||||||
Other customer relationship intangibles | 5,633 | 3,262 | 6,063 | 3,323 | |||||||||||||
Total | $ | 11,608 | $ | 6,541 | $ | 12,038 | $ | 5,661 | |||||||||
Aggregate amortization expense was $1.3 million, $0.9 million and $1.0 million for 2014, 2013 and 2012, respectively. | |||||||||||||||||
The remaining estimated aggregate amortization expense at December 31, 2014 is listed below (amounts in thousands): | |||||||||||||||||
Year | Estimated Expense | ||||||||||||||||
2015 | $ | 1,136 | |||||||||||||||
2016 | 986 | ||||||||||||||||
2017 | 859 | ||||||||||||||||
2018 | 734 | ||||||||||||||||
2019 | 609 | ||||||||||||||||
2020 and thereafter | 743 | ||||||||||||||||
Total | $ | 5,067 |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
DEPOSITS [Abstract] | |||||||||
DEPOSITS | (7) DEPOSITS | ||||||||
A summary of deposits at December 31, 2014 and 2013 is as follows (amounts in thousands): | |||||||||
2014 | 2013 | ||||||||
Non-interest-bearing demand deposits | $ | 366,298 | $ | 351,222 | |||||
Interest-bearing demand deposits | 110,819 | 114,679 | |||||||
Insured money market accounts | 392,871 | 361,095 | |||||||
Savings deposits | 198,183 | 194,768 | |||||||
Time deposits | 211,843 | 244,492 | |||||||
$ | 1,280,014 | $ | 1,266,256 | ||||||
Scheduled maturities of time deposits at December 31, 2014, are summarized as follows (amounts in thousands): | |||||||||
Year | |||||||||
2015 | $ | 155,295 | |||||||
2016 | 34,803 | ||||||||
2017 | 9,486 | ||||||||
2018 | 4,775 | ||||||||
2019 | 5,851 | ||||||||
2020 and thereafter | 1,633 | ||||||||
$ | 211,843 | ||||||||
Time deposits that meet or exceed the FDIC Insurance limit of $250,000 at December 31, 2014 and 2013 were $42.8 million and $37.7 million, respectively. | |||||||||
Time deposits include certificates of deposit in denominations of $100 thousand or more aggregating $80.5 million and $88.8 million at December 31, 2014 and 2013, respectively. Interest expense on such certificates was $0.5 million, $0.8 million and $1.2 million for 2014, 2013 and 2012, respectively. | |||||||||
Maturities of time deposits in denominations of $100 thousand or more outstanding at December 31, 2014 are summarized as follows (amounts in thousands): | |||||||||
3 months or less | $ | 31,484 | |||||||
Over 3 through 6 months | 15,286 | ||||||||
Over 6 through 12 months | 17,842 | ||||||||
Over 12 months | 15,845 | ||||||||
$ | 80,457 |
SECURITIES_SOLD_UNDER_AGREEMEN
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Abstract] | |||||||||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | (8) SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ||||||||||||||||
A summary of securities sold under agreements to repurchase as of and for the years ended December 31, 2014, 2013 and 2012 is as follows (amounts in thousands): | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at December 31 | $ | 29,652 | $ | 32,701 | $ | 32,711 | |||||||||||
Maximum month-end balance | $ | 31,914 | $ | 32,701 | $ | 38,284 | |||||||||||
Average balance during year | $ | 30,667 | $ | 31,102 | $ | 34,534 | |||||||||||
Weighted-average interest rate at December 31 | 2.82 | % | 2.93 | % | 3.02 | % | |||||||||||
Average interest rate paid during year | 2.77 | % | 2.76 | % | 2.88 | % | |||||||||||
Information concerning outstanding securities repurchase agreements as of December 31, 2014 is summarized as follows (amounts in thousands): | |||||||||||||||||
Remaining Term to Final Maturity (1) | Repurchase Liability | Accrued Interest Payable | Weighted Average Rate | Estimated Fair Value of Collateral Securities (2) | |||||||||||||
Within 90 days | $ | 9,652 | $ | - | 0.1 | % | $ | 16,682 | |||||||||
After 90 days but within one year | - | - | - | % | - | ||||||||||||
After one year but within five years | 20,000 | 63 | 4.13 | % | 23,530 | ||||||||||||
After five years but within ten years | - | - | - | % | - | ||||||||||||
Total | $ | 29,652 | $ | 63 | 2.82 | % | $ | 40,212 | |||||||||
-1 | At December 31, 2014, the securities repurchase agreements were non-callable with a weighted-average rate of 3.10%, and a weighted-average term to maturity of approximately 1.9 years. | ||||||||||||||||
-2 | Represents the estimated fair value of the securities subject to the repurchase agreements, including accrued interest receivable, of approximately $342 thousand at December 31, 2014. |
FEDERAL_HOME_LOAN_BANK_TERM_AD
FEDERAL HOME LOAN BANK TERM ADVANCES AND OVERNIGHT ADVANCES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
FEDERAL HOME LOAN BANK TERM ADVANCES AND OVERNIGHT ADVANCES [Abstract] | ||||||||||||
FEDERAL HOME LOAN BANK TERM ADVANCES AND OVERNIGHT ADVANCES | (9) FEDERAL HOME LOAN BANK TERM ADVANCES AND OVERNIGHT ADVANCES | |||||||||||
The following is a summary of Federal Home Loan Bank fixed rate advances at December 31, 2014 and 2013. The carrying amount includes the advance balance plus purchase accounting adjustments that are amortized over the term of the advance (amounts in thousands): | ||||||||||||
2014 | ||||||||||||
Amount | Rate | Maturity Date | Call Date | |||||||||
$ | 30,830 | 0.32 | % | 2-Jan-15 | - | |||||||
10,000 | 4.6 | % | 22-Dec-16 | - | ||||||||
4,138 | 3.9 | % | 19-Oct-17 | 19-Jan-15 | ||||||||
3,103 | 2.91 | % | 4-Dec-17 | 3-Mar-15 | ||||||||
2,069 | 3.05 | % | 2-Jan-18 | 1-Apr-15 | ||||||||
$ | 50,140 | 1.73 | % | |||||||||
2013 | ||||||||||||
Amount | Rate | Maturity Date | Call Date | |||||||||
$ | 1,033 | 3.2 | % | June 18,2014 | - | |||||||
775 | 3.05 | % | 2-Oct-14 | - | ||||||||
4,134 | 3.84 | % | 20-Oct-14 | 20-Jan-14 | ||||||||
10,000 | 4.6 | % | 22-Dec-16 | - | ||||||||
4,134 | 3.9 | % | 19-Oct-17 | 19-Jan-14 | ||||||||
3,100 | 2.91 | % | 4-Dec-17 | 4-Mar-14 | ||||||||
2,067 | 3.05 | % | 2-Jan-18 | 1-Apr-14 | ||||||||
$ | 25,243 | 3.93 | % | |||||||||
Each advance is payable at its maturity date, with a prepayment penalty for term advances. The advances were collateralized by $152.7 million and $145.1 million of first mortgage loans under a blanket lien arrangement at December 31, 2014 and 2013, respectively. Based on this collateral and the Corporation’s holdings of FHLBNY stock, the Corporation is eligible to borrow up to a total of $86.0 million at year-end 2014. | ||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
INCOME TAXES | (10) INCOME TAXES | ||||||||||||
For the years ended December 31, 2014, 2013 and 2012, income tax expense attributable to income from operations consisted of the following (amounts in thousands): | |||||||||||||
Current: | 2014 | 2013 | 2012 | ||||||||||
State | $ | 606 | $ | 395 | $ | 530 | |||||||
Federal | 5,366 | 3,548 | 4,208 | ||||||||||
5,972 | 3,943 | 4,738 | |||||||||||
Deferred expense/(benefit) | (2,263 | ) | (121 | ) | 647 | ||||||||
$ | 3,709 | $ | 3,822 | $ | 5,385 | ||||||||
Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate to income before income tax expense as follows (amounts in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax computed at statutory rate | $ | 4,034 | $ | 4,268 | $ | 5,578 | |||||||
Tax-exempt interest | (456 | ) | (483 | ) | (506 | ) | |||||||
Dividend exclusion | (60 | ) | (46 | ) | (40 | ) | |||||||
State taxes, net of Federal impact | 227 | 188 | 439 | ||||||||||
Nondeductible interest expense | 8 | 11 | 16 | ||||||||||
Other items, net | (44 | ) | (116 | ) | (102 | ) | |||||||
Income tax expense | $ | 3,709 | $ | 3,822 | $ | 5,385 | |||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013, are presented below (amounts in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 5,182 | $ | 4,889 | |||||||||
Accrual for employee benefit plans | 709 | 754 | |||||||||||
Depreciation | 1,010 | 431 | |||||||||||
Deferred compensation and directors' fees | 1,076 | 947 | |||||||||||
Purchase accounting adjustment – deposits | 65 | 137 | |||||||||||
Purchase accounting adjustment – loans | 259 | 340 | |||||||||||
Purchase accounting adjustment - fixed assets | 221 | 224 | |||||||||||
Accounting for defined benefit pension and other benefit plans | 6,624 | 3,691 | |||||||||||
Trust preferred impairment write down | 540 | 742 | |||||||||||
Nonaccrued interest | 617 | 626 | |||||||||||
Accrued expense | 1,580 | - | |||||||||||
Other | 456 | 647 | |||||||||||
Total gross deferred tax assets | 18,339 | 13,428 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred loan fees and costs | 910 | 929 | |||||||||||
Prepaid pension | 5,179 | 5,435 | |||||||||||
Net unrealized gains on securities available for sale | 1,359 | 3,929 | |||||||||||
Discount accretion | 410 | 352 | |||||||||||
Core deposit intangible | 1,479 | 1,556 | |||||||||||
Other | 153 | 144 | |||||||||||
Total gross deferred tax liabilities | 9,490 | 12,345 | |||||||||||
Net deferred tax asset | $ | 8,849 | $ | 1,083 | |||||||||
Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income within the loss carryback period. A valuation allowance is recognized when it is more likely than not that some portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax assets, the level of historical taxable income and projected future taxable income over the periods in which the temporary differences comprising the deferred tax assets will be deductible. Based on its assessment, management determined that no valuation allowance is necessary. | |||||||||||||
As of December 31, 2014, December 31, 2013 and December 31, 2012 the Corporation did not have any unrecognized tax benefits. | |||||||||||||
The Corporation accounts for interest and penalties related to uncertain tax positions as part of its provision for Federal and State income taxes. As of December 31, 2014, 2013 and 2012, the Corporation did not accrue any interest or penalties related to its uncertain tax positions. | |||||||||||||
The Corporation is not currently subject to examinations by Federal taxing authorities for the years prior to 2010 and for New York State taxing authorities for the years prior to 2010. |
PENSION_PLAN_AND_OTHER_BENEFIT
PENSION PLAN AND OTHER BENEFIT PLANS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
PENSION PLAN AND OTHER BENEFIT PLANS [Abstract] | |||||||||||||||||
PENSION PLAN AND OTHER BENEFIT PLANS | (11) PENSION PLAN AND OTHER BENEFIT PLANS | ||||||||||||||||
Pension Plan | |||||||||||||||||
The Corporation has a noncontributory defined benefit pension plan covering a majority of employees. The plan's defined benefit formula generally bases payments to retired employees upon their length of service multiplied by a percentage of the average monthly pay over the last five years of employment. | |||||||||||||||||
The Corporation uses a December 31 measurement date for its pension plan. | |||||||||||||||||
The Corporation amended the Defined Benefit Pension Plan during 2010. New employees hired on or after the effective date will not be eligible to participate in the plan, however, existing participants at that time will continue to accrue benefits. The amendment will result in a decrease over time in the future benefit obligations of the plan and the corresponding net periodic benefit cost associated with the plan. | |||||||||||||||||
The following table presents (1) changes in the plan's projected benefit obligation and plan assets, and (2) the plan's funded status at December 31, 2014 and 2013 (amounts in thousands): | |||||||||||||||||
Change in projected benefit obligation: | 2014 | 2013 | |||||||||||||||
Benefit obligation at beginning of year | $ | 36,186 | $ | 38,051 | |||||||||||||
Service cost | 1,045 | 1,195 | |||||||||||||||
Interest cost | 1,738 | 1,587 | |||||||||||||||
Actuarial (gain) loss | 8,064 | (3,269 | ) | ||||||||||||||
Benefits paid | (1,489 | ) | (1,378 | ) | |||||||||||||
Benefit obligation at end of year | $ | 45,544 | $ | 36,186 | |||||||||||||
Change in plan assets: | 2014 | 2013 | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 41,782 | $ | 37,239 | |||||||||||||
Actual return on plan assets | 3,043 | 5,921 | |||||||||||||||
Employer contributions | - | - | |||||||||||||||
Benefits paid | (1,489 | ) | (1,378 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | 43,336 | $ | 41,782 | |||||||||||||
Funded status | $ | (2,207 | ) | $ | 5,596 | ||||||||||||
Amount recognized in accumulated other comprehensive income (loss) at December 31, 2014 and 2013 consist of the following (amounts in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net actuarial loss | $ | 17,388 | $ | 9,843 | |||||||||||||
Prior service cost | 15 | 22 | |||||||||||||||
Total before tax effects | $ | 17,403 | $ | 9,865 | |||||||||||||
The accumulated benefit obligation at December 31, 2014 and 2013 was $38.7 million and $31.2 million, respectively. | |||||||||||||||||
The principal actuarial assumptions used in determining the projected benefit obligation as of December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.09 | % | 4.92 | % | 4.26 | % | |||||||||||
Assumed rate of future compensation increase | 5 | % | 5 | % | 5 | % | |||||||||||
Components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) in 2014, 2013 and 2012 consist of the following (amounts in thousands): | |||||||||||||||||
Net periodic benefit cost | 2014 | 2013 | 2012 | ||||||||||||||
Service cost, benefits earned during the year | $ | 1,045 | $ | 1,195 | $ | 1,074 | |||||||||||
Interest cost on projected benefit obligation | 1,738 | 1,587 | 1,606 | ||||||||||||||
Expected return on plan assets | (3,174 | ) | (2,824 | ) | (2,743 | ) | |||||||||||
Amortization of net loss | 649 | 1,579 | 1,410 | ||||||||||||||
Amortization of prior service cost | 7 | 14 | 14 | ||||||||||||||
Net periodic cost | $ | 265 | $ | 1,551 | $ | 1,361 | |||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | 2014 | 2013 | 2012 | ||||||||||||||
Net actuarial (gain) loss | $ | 8,195 | $ | (6,367 | ) | $ | 3,365 | ||||||||||
Recognized loss | (649 | ) | (1,579 | ) | (1,410 | ) | |||||||||||
Amortization of prior service cost | (7 | ) | (14 | ) | (14 | ) | |||||||||||
Total recognized in other comprehensive (loss) income (before tax effect) | $ | 7,539 | $ | (7,960 | ) | $ | 1,941 | ||||||||||
Total recognized in net benefit cost and other comprehensive (loss) income (before tax effect) | $ | 7,804 | $ | (6,409 | ) | $ | 3,302 | ||||||||||
Amounts expected to be recognized in net periodic cost during 2015 | |||||||||||||||||
Loss recognition | $ | 1,475 | |||||||||||||||
Prior service cost recognition | $ | 7 | |||||||||||||||
The principal actuarial assumptions used in determining the net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.92 | % | 4.26 | % | 4.95 | % | |||||||||||
Expected long-term rate of return on assets | 7.75 | % | 7.75 | % | 8 | % | |||||||||||
Assumed rate of future compensation increase | 5 | % | 5 | % | 5 | % | |||||||||||
The Corporation changes important assumptions whenever changing conditions warrant. At December 31, 2014, the Corporation adopted the Retirement Plan 2014 (RP-2014) and Mortality Projection 2014 (MP-2014) mortality tables, which were finalized by the Society of Actuaries in October 2014 and reflected improved life expectancies and an expectation that this trend will continue. The discount rate is evaluated at least annually and the expected long-term return on plan assets will typically be revised every three to five years, or as conditions warrant. Other material assumptions include the compensation increase rates, rates of employee terminations, and rates of participant mortality. | |||||||||||||||||
The Corporation's overall investment strategy is to achieve a mix of investments for long-term growth and for near-term benefit payments with a wide diversification of asset types. The target allocations for plan assets are shown in the table below. Equity securities primarily include investments in common or preferred shares of both U.S. and international companies. Debt securities include U.S. Treasury and Government bonds as well as U.S. Corporate bonds. Other investments may consist of mutual funds, money market funds and cash & cash equivalents. While no significant changes in the asset allocations are expected during 2014, the Corporation may make changes at any time. | |||||||||||||||||
The expected return on plan assets was determined based on a Capital Asset Pricing Model ("CAPM") using historical and expected future returns of the various asset classes, reflecting the target allocations described below. | |||||||||||||||||
Asset Class | Target Allocation 2014 | Percentage of Plan Assets at December 31, | Expected Long-Term Rate of Return | ||||||||||||||
2014 | 2013 | ||||||||||||||||
Large cap domestic equities | 30% - 60 | % | 50 | % | 54 | % | 10.3 | % | |||||||||
Mid-cap domestic equities | 0% - 20 | % | 14 | % | 8 | % | 10.6 | % | |||||||||
Small-cap domestic equities | 0% - 15 | % | 3 | % | 3 | % | 10.8 | % | |||||||||
International equities | 0% - 25 | % | 4 | % | 4 | % | 10.3 | % | |||||||||
Intermediate fixed income | 20% - 50 | % | 26 | % | 26 | % | 4.7 | % | |||||||||
Alternative assets | 0% - 10 | % | 2 | % | 3 | % | 7.5 | % | |||||||||
Cash | 0% - 20 | % | 1 | % | 2 | % | 2.5 | % | |||||||||
Total | 100 | % | 100 | % | |||||||||||||
The investment policy of the plan is to provide for long-term growth of principal and income without undue exposure to risk. The focus is on long-term capital appreciation and income generation. The Corporation maintains an Investment Policy Statement ("IPS") that guides the investment allocation in the plan. The IPS describes the target asset allocation positions as shown in the table above. | |||||||||||||||||
The Corporation has appointed an Employee Pension and Profit Sharing Committee to manage the general philosophy, objectives and process of the plan. The Employee Pension and Profit Sharing Committee meets with the Investment Manager periodically to review the plan's performance and to ensure that the current investment allocation is within the guidelines set forth in the IPS. Only the Employee Pension and Profit Sharing Committee, in consultation with the Investment Manager, can make adjustments to maintain target ranges and for any permanent changes to the IPS. Quarterly, the Board of Directors' Trust and Employee Benefits Committee reviews the performance of the plan with the Investment Manager. | |||||||||||||||||
As of December 31, 2014 and 2013, the Corporation's pension plan did not hold any direct investment in the Corporation's common stock. | |||||||||||||||||
The Corporation used the following methods and significant assumptions to estimate the fair value of each type of financial instrument held by the pension plan: | |||||||||||||||||
Fair value is the exchange price that would be received for an asset in the principal or most advantageous market for the asset in an orderly transaction between market participants on the measurement date. The fair value hierarchy described below requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||
The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). | |||||||||||||||||
Discounted cash flows are calculated using spread and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations. | |||||||||||||||||
The fair value of the plan assets at December 31, 2014 and 2013, by asset class are as follows (amounts in thousands): | |||||||||||||||||
Fair Value Measurement at December 31, 2014 Using | |||||||||||||||||
Plan Assets | Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash | $ | 626 | $ | 626 | $ | - | $ | - | |||||||||
Equity securities: | |||||||||||||||||
U.S. companies | 28,011 | 28,011 | - | - | |||||||||||||
International companies | 856 | 856 | - | - | |||||||||||||
Mutual funds | 7,111 | 7,111 | - | - | |||||||||||||
Debt securities: | |||||||||||||||||
U.S. Treasuries/Government bonds | 2,701 | 2,701 | - | - | |||||||||||||
U.S. Corporate bonds | 3,775 | - | 3,775 | - | |||||||||||||
Foreign bonds, notes & debentures | 256 | - | 256 | - | |||||||||||||
Total plan assets | $ | 43,336 | $ | 39,305 | $ | 4,031 | $ | - | |||||||||
Fair Value Measurement at December 31, 2013 Using | |||||||||||||||||
Plan Assets | Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash | $ | 982 | $ | 982 | $ | - | $ | - | |||||||||
Equity securities: | |||||||||||||||||
U.S. companies | 27,170 | 27,170 | - | - | |||||||||||||
Mutual funds | 7,288 | 7,288 | - | - | |||||||||||||
Debt securities: | |||||||||||||||||
U.S. Treasuries/Government bonds | 3,309 | 3,309 | - | - | |||||||||||||
U.S. Corporate bonds | 2,771 | - | 2,771 | - | |||||||||||||
Foreign bonds, notes & debentures | 262 | - | 262 | - | |||||||||||||
Total plan assets | $ | 41,782 | $ | 38,749 | $ | 3,033 | $ | - | |||||||||
The following table presents the estimated benefit payments for each of the next five years and the aggregate amount expected to be paid in years six through ten for the pension plan (amounts in thousands): | |||||||||||||||||
Calendar Year | Future Expected Benefit Payments | ||||||||||||||||
2015 | $ | 1,761 | |||||||||||||||
2016 | $ | 1,849 | |||||||||||||||
2017 | $ | 1,949 | |||||||||||||||
2018 | $ | 2,052 | |||||||||||||||
2019 | $ | 2,114 | |||||||||||||||
2020-2024 | $ | 11,949 | |||||||||||||||
The Corporation does not expect to contribute to the plan during 2015. Funding requirements for subsequent years are uncertain and will significantly depend on changes in assumptions used to calculate plan funding levels, the actual return on plan assets, changes in the employee groups covered by the plan, and any legislative or regulatory changes affecting plan funding requirements. | |||||||||||||||||
For tax planning, financial planning, cash flow management or cost reduction purposes the Corporation may increase, accelerate, decrease or delay contributions to the plan to the extent permitted by law. | |||||||||||||||||
Defined Contribution Profit Sharing, Savings and Investment Plan | |||||||||||||||||
The Corporation also sponsors a defined contribution profit sharing, savings and investment plan which covers all eligible employees with a minimum of 1,000 hours of annual service. The Corporation makes discretionary matching and profit sharing contributions to the plan for employees hired prior to July 1, 2010 based on the financial results of the Corporation. The Corporation also contributes to a non-discretionary 401K plan which covers all eligible employees hired after July 1, 2010. Expense related to both plans totaled $620 thousand, $521 thousand, and $393 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. The plan's assets at December 31, 2014, 2013 and 2012 include 170,714, 178,113 and 189,337 shares, respectively, of Chemung Financial Corporation common stock, as well as other common and preferred stocks, U.S. Government securities, corporate bonds and notes, and mutual funds. | |||||||||||||||||
Defined Benefit Health Care Plan | |||||||||||||||||
The Corporation uses a December 31 measurement date for its postretirement medical benefits plan. | |||||||||||||||||
The following table presents (1) changes in the plan's accumulated postretirement benefit obligation and (2) the plan's funded status at December 31, 2014 and 2013 (amounts in thousands): | |||||||||||||||||
Changes in accumulated postretirement benefit obligation: | 2014 | 2013 | |||||||||||||||
Accumulated postretirement benefit obligation - beginning of year | $ | 1,490 | $ | 1,534 | |||||||||||||
Service cost | 39 | 44 | |||||||||||||||
Interest cost | 72 | 66 | |||||||||||||||
Participant contributions | 84 | 74 | |||||||||||||||
Actuarial (gain) loss | 177 | (61 | ) | ||||||||||||||
Benefits paid | (199 | ) | (167 | ) | |||||||||||||
Accumulated postretirement benefit obligation at end of year | $ | 1,663 | $ | 1,490 | |||||||||||||
Change in plan assets: | 2014 | 2013 | |||||||||||||||
Fair value of plan assets at beginning of year | $ | - | $ | - | |||||||||||||
Employer contribution | 115 | 93 | |||||||||||||||
Plan participants’ contributions | 84 | 74 | |||||||||||||||
Benefits paid | (199 | ) | (167 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | - | $ | - | |||||||||||||
Funded status | $ | (1,663 | ) | $ | (1,490 | ) | |||||||||||
Amount recognized in accumulated other comprehensive income (loss) at December 31, 2014 and 2013 consist of the following (amounts in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net actuarial loss | $ | 322 | $ | 148 | |||||||||||||
Prior service benefit | (531 | ) | (628 | ) | |||||||||||||
Total before tax effects | $ | (209 | ) | $ | (480 | ) | |||||||||||
Weighted-average assumption for disclosure as of December 31, | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.09 | % | 4.92 | % | 4.26 | % | |||||||||||
Health care cost trend: Initial | 7 | % | 8 | % | 9 | % | |||||||||||
Health care cost trend: Ultimate | 5 | % | 5 | % | 5 | % | |||||||||||
Year ultimate cost trend reached | 2018 | 2018 | 2018 | ||||||||||||||
The components of net periodic postretirement benefit cost for the years ended December 31, 2014, 2013 and 2012 are as follows (amounts in thousands): | |||||||||||||||||
Net periodic benefit cost | 2014 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 39 | $ | 44 | $ | 39 | |||||||||||
Interest cost | 72 | 66 | 71 | ||||||||||||||
Amortization of prior service benefit | (97 | ) | (97 | ) | (97 | ) | |||||||||||
Recognized actuarial loss | 3 | 10 | 1 | ||||||||||||||
Net periodic postretirement cost | $ | 17 | $ | 23 | $ | 14 | |||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | 2014 | 2013 | 2012 | ||||||||||||||
Net actuarial (gain) loss | $ | 177 | $ | (61 | ) | $ | 178 | ||||||||||
Recognized actuarial loss | (3 | ) | (10 | ) | (1 | ) | |||||||||||
Amortization of prior service benefit | 97 | 97 | 97 | ||||||||||||||
Total recognized in other comprehensive income (loss) (before tax effect) | $ | 271 | $ | 26 | $ | 274 | |||||||||||
Total recognized in net benefit cost and other comprehensive income (loss) (before tax effect) | $ | 288 | $ | 49 | $ | 288 | |||||||||||
During 2014 the plan's total unrecognized net loss increased by $174 thousand. Because the total unrecognized net gain or loss in the plan exceeds 10% of the accumulated postretirement benefit obligation, the excess will be amortized over the average future working lifetime of active plan participants. As of January 1, 2014 the average future working lifetime of active participants was 14.89 years. Actual results for 2015 will depend on the 2015 actuarial valuation of the plan. | |||||||||||||||||
Amounts expected to be recognized in net periodic cost during 2015: | |||||||||||||||||
Loss recognition | $ | 10 | |||||||||||||||
Prior service cost recognition | $ | (97 | ) | ||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point change in assumed health care cost trend rates would have the following effects (amounts in thousands): | |||||||||||||||||
Effect of a 1% increase in health care trend rate on: | 2014 | 2013 | 2012 | ||||||||||||||
Benefit obligation | $ | 5 | $ | 15 | $ | 4 | |||||||||||
Total service and interest cost | $ | - | $ | - | $ | - | |||||||||||
Effect of a 1% decrease in health care trend rate on: | 2014 | 2013 | 2012 | ||||||||||||||
Benefit obligation | $ | (6 | ) | $ | (23 | ) | $ | (5 | ) | ||||||||
Total service and interest cost | $ | - | $ | (2 | ) | $ | (1 | ) | |||||||||
Weighted-average assumptions for net periodic cost as of December 31,: | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.92 | % | 4.26 | % | 4.95 | % | |||||||||||
Health care cost trend: Initial | 8 | % | 9 | % | 10 | % | |||||||||||
Health care cost tread: Ultimate | 5 | % | 5 | % | 5 | % | |||||||||||
Year ultimate reached | 2018 | 2018 | 2018 | ||||||||||||||
The following table presents the estimated benefit payments for each of the next five years and the aggregate amount expected to be paid in years six through ten (amounts in thousands): | |||||||||||||||||
Calendar Year | Future Estimated Benefit Payments | ||||||||||||||||
2015 | $ | 201 | |||||||||||||||
2016 | $ | 176 | |||||||||||||||
2017 | $ | 140 | |||||||||||||||
2018 | $ | 150 | |||||||||||||||
2019 | $ | 159 | |||||||||||||||
2020-2024 | $ | 652 | |||||||||||||||
The Corporation’s policy is to contribute the amount required to fund postretirement benefits as they become due to retirees. The amount expected to be required in contributions to the plan during 2015 is $201 thousand. | |||||||||||||||||
Executive Supplemental Pension Plan | |||||||||||||||||
The Corporation also sponsors an Executive Supplemental Pension Plan for certain current and former executive officers to restore certain pension benefits that may be reduced due to limitations under the Internal Revenue Code. The benefits under this plan are unfunded as of December 31, 2014 and 2013. | |||||||||||||||||
The Corporation uses a December 31 measurement date for its Executive Supplemental Pension Plan. | |||||||||||||||||
The following table presents Executive Supplemental Pension plan status at December 31, 2014 and 2013 (amounts in thousands): | |||||||||||||||||
Change in projected benefit obligation: | 2014 | 2013 | |||||||||||||||
Benefit obligation at beginning of year | $ | 1,116 | $ | 1,162 | |||||||||||||
Service cost | 38 | 40 | |||||||||||||||
Interest cost | 55 | 48 | |||||||||||||||
Actuarial (gain) loss | 110 | (59 | ) | ||||||||||||||
Benefits paid | (75 | ) | (75 | ) | |||||||||||||
Projected benefit obligation at end of year | $ | 1,244 | $ | 1,116 | |||||||||||||
Changes in plan assets: | 2014 | 2013 | |||||||||||||||
Fair value of plan assets at beginning of year | $ | - | $ | - | |||||||||||||
Employer contributions | 75 | 75 | |||||||||||||||
Benefits paid | (75 | ) | (75 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | - | $ | - | |||||||||||||
Unfunded status | $ | (1,244 | ) | $ | (1,116 | ) | |||||||||||
Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2014 and 2013 consist of the following (amounts in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net actuarial loss | $ | 275 | $ | 194 | |||||||||||||
Prior service cost | - | - | |||||||||||||||
Total before tax effects | $ | 275 | $ | 194 | |||||||||||||
Accumulated benefit obligation at December 31, 2014 and 2013 was $1.2 million and $1.0 million, respectively. | |||||||||||||||||
Weighted-average assumption for disclosure as of December 31,: | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.09 | % | 4.92 | % | 4.26 | % | |||||||||||
Assumed rate of future compensation increase | 5 | % | 5 | % | 5 | % | |||||||||||
The components of net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 are as follows (amounts in thousands): | |||||||||||||||||
Net periodic benefit cost | 2014 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 38 | $ | 40 | $ | 35 | |||||||||||
Interest cost | 55 | 48 | 51 | ||||||||||||||
Recognized actuarial loss | 29 | 34 | 20 | ||||||||||||||
Net periodic postretirement benefit cost | $ | 122 | $ | 122 | $ | 106 | |||||||||||
Other changes in plan assets and benefit obligation recognized in other comprehensive income (loss): | 2014 | 2013 | 2012 | ||||||||||||||
Net actuarial (gain) loss | $ | 110 | $ | (59 | ) | $ | 81 | ||||||||||
Recognized actuarial loss | (29 | ) | (34 | ) | (20 | ) | |||||||||||
Total recognized in other comprehensive income (loss) (before tax effect) | $ | 81 | $ | (93 | ) | $ | 61 | ||||||||||
Total recognized in net benefit cost and other comprehensive income (loss) (before tax effect) | $ | 203 | $ | 29 | $ | 167 | |||||||||||
Amounts expected to be recognized in net periodic cost during 2015: | |||||||||||||||||
Loss recognition | $ | 50 | |||||||||||||||
Prior service cost recognition | $ | - | |||||||||||||||
Weighted-average assumptions for net periodic cost as of December 31,: | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.92 | % | 4.26 | % | 4.95 | % | |||||||||||
Salary scale | 5 | % | 5 | % | 5 | % | |||||||||||
The following table presents the estimated benefit payments for each of the next five years and the aggregate amount expected to be paid in years six through ten for the Supplemental Pension Plan (amounts in thousands): | |||||||||||||||||
Calendar Year | Future Estimated Benefit Payments | ||||||||||||||||
2015 | $ | 75 | |||||||||||||||
2016 | $ | 75 | |||||||||||||||
2017 | $ | 75 | |||||||||||||||
2018 | $ | 116 | |||||||||||||||
2019 | $ | 116 | |||||||||||||||
2020-2024 | $ | 580 | |||||||||||||||
The Corporation expects to contribute $75 thousand to the plan during 2015. Corporation contributions are equal to the benefit payments to plan participants. | |||||||||||||||||
Defined Contribution Supplemental Executive Retirement Plan | |||||||||||||||||
The Corporation also sponsors a Defined Contribution Supplemental Executive Retirement Plan for certain current executive officers, which was initiated in 2012. The plan is unfunded as of December 31, 2014 and is intended to provide nonqualified deferred compensation benefits payable at retirement, disability, death or certain other events. The balance in the plan as of December 31, 2014 and December 31, 2013 was $550 thousand and $337 thousand, respectively. A total of $213 thousand and $155 thousand was expensed during the years ended December 31, 2014 and 2013, respectively In addition to each participants account being credited with the annual company contribution, each account will receive a quarterly interest credit that will equal the average yield on five year U.S. Treasury Notes. |
STOCK_COMPENSATION
STOCK COMPENSATION | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
STOCK COMPENSATION [Abstract] | |||||||||
STOCK COMPENSATION | (12) STOCK COMPENSATION | ||||||||
Board of Director’s Stock Compensation | |||||||||
Members of the Board of Directors receive common shares of the Corporation equal in value to the amount of fees individually earned during the previous year for service as a director. The common shares are distributed to the Corporation's individual board members from treasury shares of the Corporation on or about January 15 following the calendar year of service. | |||||||||
Additionally, the President and Chief Executive Officer of the Corporation, who does not receive cash compensation as a member of the Board of Directors, is awarded common shares equal in value to the average of those awarded to board members not employed by the Corporation who have served for 12 months during the prior year. | |||||||||
During January 2015, 2014, and 2013, 9,673, 8,385 and 7,969 shares, respectively, were re-issued from treasury to fund the stock component of the directors' and the President and Chief Executive Officer’s compensation. An expense of $271 thousand, $273 thousand and $217 thousand related to this compensation was recognized during the years 2014, 2013 and 2012, respectively. This expense is accrued as shares are earned. | |||||||||
Restricted Stock Plan | |||||||||
Pursuant to the Corporation’s Restricted Stock Plan (the “Plan”), the Corporation may make discretionary grants of restricted stock to officers other than the Corporation's President and Chief Executive Officer. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date. | |||||||||
A summary of restricted stock activity as of December 31, 2014, and changes during the year ended is presented below: | |||||||||
Shares | Weighted–Average Grant Date Fair Value | ||||||||
Nonvested at December 31, 2013 | 20,639 | $ | 27.17 | ||||||
Granted | 11,279 | 28.4 | |||||||
Vested | (5,490 | ) | 26.09 | ||||||
Forfeited or Cancelled | - | - | |||||||
Nonvested at December 31, 2014 | 26,428 | $ | 27.92 | ||||||
As of December 31, 2014, there was $718 thousand of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3.95 years. The total fair value of shares vested during the years ended December 31, 2014 and 2013 were $152 thousand and $181 thousand, respectively. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||
RELATED PARTY TRANSACTIONS | (13) RELATED PARTY TRANSACTIONS | ||||||||
Members of the Board of Directors, certain Corporation officers, and their immediate families directly, or through entities in which they are principal owners (more than 10% interest), were customers of, and had loans and other transactions with the Corporation. These loans are summarized as follows for the years ended December 31, 2014 and 2013 (amounts in thousands): | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of year | $ | 26,408 | $ | 25,390 | |||||
New loans or additional advances | 33,282 | 30,056 | |||||||
Repayments | (21,888 | ) | (29,038 | ) | |||||
Balance at end of year | $ | 37,802 | $ | 26,408 | |||||
Deposits from principal officers, directors, and their affiliates at year-end 2014 and 2013 were $12.0 million and $9.8 million, respectively. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES | (14) COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. | |||||||||||||||||
The contractual amounts of financial instruments with off-balance sheet risk at year-end were as follows (amounts in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Fixed Rate | Variable Rate | Fixed Rate | Variable Rate | ||||||||||||||
Commitments to make loans | $ | 23,756 | $ | 11,082 | $ | 21,049 | $ | 7,893 | |||||||||
Unused lines of credit | $ | 812 | $ | 185,235 | $ | 2,190 | $ | 187,061 | |||||||||
Standby letters of credit | $ | - | $ | 16,747 | $ | - | $ | 17,290 | |||||||||
Commitments to make Real Estate and Home Equity loans are generally made for periods of sixty days or less. As of December 31, 2014, the fixed rate commitments to make loans have interest rates ranging from 2.750% to 5.875% and maturities ranging from five years to thirty years. Commitments to fund commercial draw notes are generally made for periods of three months to eighteen months. As of December 31, 2014, the fixed rate commitments have interest rates ranging from 1.76% to 5.25%. | |||||||||||||||||
Because many commitments and almost all standby letters of credit expire without being funded in whole or in part, the contract amounts are not estimates of future cash flows. Loan commitments and unused lines of credit have off-balance sheet credit risk because only origination fees are recognized on the consolidated balance sheet until commitments are fulfilled or expire. The credit risk amounts are equal to the contractual amounts, assuming the amounts are fully advanced and collateral or other security is of no value. The Corporation does not anticipate losses as a result of these transactions. These commitments also have off-balance sheet interest rate risk in that the interest rate at which these commitments were made may not be at market rates on the date the commitments are fulfilled. | |||||||||||||||||
The Corporation has issued conditional commitments in the form of standby letters of credit to guarantee payment on behalf of a customer and guarantee the performance of a customer to a third party. Standby letters of credit generally arise in connection with lending relationships. The credit risk involved in issuing these instruments is essentially the same as that involved in extending loans to customers. Contingent obligations under standby letters of credit totaled $16.7 million at December 31, 2014 and represent the maximum potential future payments the Corporation could be required to make. Typically, these instruments have terms of twelve months or less and expire unused; therefore, the total amounts do not necessarily represent future cash requirements. Each customer is evaluated individually for creditworthiness under the same underwriting standards used for commitments to extend credit and on-balance sheet instruments. Corporation policies governing loan collateral apply to standby letters of credit at the time of credit extension. The carrying amount and fair value of the Corporation's standby letters of credit at December 31, 2014 was not significant. | |||||||||||||||||
The Corporation has an executive severance agreement with its President and Chief Executive Officer. | |||||||||||||||||
The Bank is a party in two legal proceedings involving its Wealth Management Group. In both proceedings, the Bank, as trustee pursuant to written trust instruments, has sought judicial settlement of trust accounts in the New York Surrogate's Court for Chemung County. Individuals who are beneficiaries under the trusts have filed formal objections and/or demand letters with the Court in both of these accounting proceedings, objecting to the final settlement of the trust accounts. The objectants primarily assert that the Bank acted imprudently by failing to diversify the trusts' investments and they claim $13.2 million and $24.1 million, consisting of damages and disallowed trustee's commissions, plus unspecified legal fees in the respective proceedings. For both legal proceedings, the Bank agreed to participate in non-binding mediation which began November 10, 2014. As a result of mediation and in anticipation of a settlement with both parties, the Bank's Board of Directors approved the establishment of an accrual for legal settlement in the amount of $12.1 million, offset by a $7.9 million receivable for insurance proceeds. Two stipulations reflecting the settlements have been submitted to the Surrogate’s Court. | |||||||||||||||||
In the normal course of business, there are various outstanding claims and legal proceedings involving the Corporation or its subsidiaries. Except for the above matter, we believe that we are not a party to any pending legal, arbitration, or regulatory proceedings that could have a material adverse impact on our financial results or liquidity. |
PARENT_COMPANY_FINANCIAL_INFOR
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PARENT COMPANY FINANCIAL INFORMATION [Abstract] | |||||||||||||
PARENT COMPANY FINANCIAL INFORMATION | (15) PARENT COMPANY FINANCIAL INFORMATION | ||||||||||||
Condensed parent company only financial statement information of Chemung Financial Corporation is as follows (investment in subsidiaries is recorded using the equity method of accounting) (amounts in thousands): | |||||||||||||
BALANCE SHEETS - DECEMBER 31 | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
Cash on deposit with subsidiary bank | $ | 3,200 | $ | 2,686 | |||||||||
Investment in subsidiary - Chemung Canal Trust Company | 128,081 | 133,557 | |||||||||||
Investment in subsidiary - CFS Group, Inc. | 908 | 779 | |||||||||||
Dividends receivable from subsidiary bank | 1,204 | 1,195 | |||||||||||
Securities available for sale, at estimated fair value | 346 | 343 | |||||||||||
Other assets | 1,129 | 1,254 | |||||||||||
Total assets | $ | 134,868 | $ | 139,814 | |||||||||
Liabilities and shareholders' equity: | |||||||||||||
Dividends payable | 1,204 | 1,195 | |||||||||||
Other liabilities | 36 | 41 | |||||||||||
Total liabilities | 1,240 | 1,236 | |||||||||||
Shareholders' equity: | |||||||||||||
Total shareholders' equity | 133,628 | 138,578 | |||||||||||
Total liabilities and shareholders' equity | $ | 134,868 | $ | 139,814 | |||||||||
STATEMENTS OF INCOME - YEARS ENDED DECEMBER 31 | 2014 | 2013 | 2012 | ||||||||||
Dividends from subsidiary bank | $ | 4,805 | $ | 4,778 | $ | 4,573 | |||||||
Interest and dividend income | 10 | 9 | 7 | ||||||||||
Other income | - | 132 | 150 | ||||||||||
Operating expenses | 261 | 324 | 331 | ||||||||||
Income before impact of subsidiaries' undistributed earnings | 4,554 | 4,595 | 4,399 | ||||||||||
Equity in undistributed earnings of Chemung Canal Trust Company | 3,307 | 3,873 | 6,411 | ||||||||||
Equity in undistributed earnings of CFS Group, Inc. | 129 | 139 | 54 | ||||||||||
Income before income tax | 7,990 | 8,607 | 10,864 | ||||||||||
Income tax benefit | (167 | ) | (124 | ) | (158 | ) | |||||||
Net Income | $ | 8,157 | $ | 8,731 | $ | 11,022 | |||||||
STATEMENTS OF CASH FLOWS - YEARS ENDED DECEMBER 31 | 2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net Income | $ | 8,157 | $ | 8,731 | $ | 11,022 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed earnings of Chemung Canal Trust Company | (3,307 | ) | (3,873 | ) | (6,411 | ) | |||||||
Equity in undistributed earnings of CFS Group, Inc. | (129 | ) | (139 | ) | (54 | ) | |||||||
Change in dividend receivable | (9 | ) | (1,195 | ) | 1,141 | ||||||||
Change in other assets | 126 | 558 | 765 | ||||||||||
Change in other liabilities | 110 | 79 | 48 | ||||||||||
Expense related to employee stock compensation | 117 | 112 | 80 | ||||||||||
Expense related to restricted stock units for directors' deferred compensation plan | 94 | 99 | 87 | ||||||||||
Expense to employee restricted stock awards | 151 | 131 | 80 | ||||||||||
Net cash provided by operating activities | 5,310 | 4,503 | 6,758 | ||||||||||
Cash flow from financing activities: | |||||||||||||
Cash dividends paid | (4,796 | ) | (3,583 | ) | (5,714 | ) | |||||||
Purchase of treasury stock | - | (93 | ) | (636 | ) | ||||||||
Sale of treasury stock | - | 71 | 258 | ||||||||||
Net cash used in financing activities | (4,796 | ) | (3,605 | ) | (6,092 | ) | |||||||
Increase in cash and cash equivalents | 514 | 898 | 666 | ||||||||||
Cash and cash equivalents at beginning of year | 2,686 | 1,788 | 1,122 | ||||||||||
Cash and cash equivalents at end of year | $ | 3,200 | $ | 2,686 | $ | 1,788 |
FAIR_VALUES
FAIR VALUES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
FAIR VALUES [Abstract] | |||||||||||||||||||||
FAIR VALUES | (16) FAIR VALUES | ||||||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | |||||||||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||||||
Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||||||
The Corporation used the following methods and significant assumptions to estimate fair value: | |||||||||||||||||||||
Investment Securities: The fair values of securities available for sale are usually determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or matrix pricing, which is a mathematical technique widely used to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). | |||||||||||||||||||||
Trading Assets: Securities that are held to fund a deferred compensation plan are recorded at fair value with changes in fair value included in earnings. The fair values of trading assets are determined by quoted market prices (Level 1 inputs). | |||||||||||||||||||||
Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for loan loss accounting. For collateral dependent loans, fair value is commonly based on 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 independent 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. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, typically resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. | |||||||||||||||||||||
Other Real Estate Owned (“OREO”): Assets acquired through or instead of loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly 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 independent 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. | |||||||||||||||||||||
Appraisals for both collateral-dependent impaired loans and OREO are performed by certified general appraisers (commercial properties) or certified residential appraisers (residential properties) whose qualifications and licenses have been reviewed and verified by the Corporation. Once received, appraisals are reviewed for reasonableness of assumptions, approaches utilized, Uniform Standards of Professional Appraisal Practice and other regulatory compliance, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals are generally completed within the previous 12 month period prior to a property being placed into OREO. On impaired loans, appraisal values are adjusted based on the age of the appraisal, the position of the lien, the type of the property and its condition. | |||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below (amounts in thousands): | |||||||||||||||||||||
Fair Value Measurement at December 31, 2014 Using | |||||||||||||||||||||
Financial Assets: | Fair Value | Quoted Prices | Significant | Significant Unobservable Inputs | |||||||||||||||||
in Active Markets for Identical Assets | Other Observable Inputs | (Level 3) | |||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 181,673 | $ | 31,115 | $ | 150,558 | $ | - | |||||||||||||
Mortgage-backed securities, residential | 61,660 | - | 61,660 | - | |||||||||||||||||
Collateralized mortgage obligations | 338 | - | 338 | - | |||||||||||||||||
Obligations of states and political subdivisions | 31,451 | - | 31,451 | - | |||||||||||||||||
Corporate bonds and notes | 1,533 | - | 1,533 | - | |||||||||||||||||
SBA loan pools | 1,304 | - | 1,304 | - | |||||||||||||||||
Trust Preferred securities | 2,028 | - | 2,028 | - | |||||||||||||||||
Corporate stocks | 520 | 104 | 416 | - | |||||||||||||||||
Total available for sale securities | $ | 280,507 | $ | 31,219 | $ | 249,288 | $ | - | |||||||||||||
Trading assets | $ | 549 | $ | 549 | $ | - | $ | - | |||||||||||||
Fair Value Measurement at December 31, 2013 Using | |||||||||||||||||||||
Financial Assets: | Fair Value | Quoted Prices | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
in Active Markets for Identical Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 188,106 | $ | 31,262 | $ | 156,844 | $ | - | |||||||||||||
Mortgage-backed securities, residential | 104,356 | - | 104,356 | - | |||||||||||||||||
Collateralized mortgage obligations | 1,015 | - | 1,015 | - | |||||||||||||||||
Obligations of states and political subdivisions | 38,376 | - | 38,376 | - | |||||||||||||||||
Corporate bonds and notes | 2,946 | - | 2,946 | - | |||||||||||||||||
SBA loan pools | 1,488 | - | 1,488 | - | |||||||||||||||||
Trust Preferred securities | 2,034 | - | 2,034 | - | |||||||||||||||||
Corporate stocks | 7,695 | 7,279 | 416 | - | |||||||||||||||||
Total available for sale securities | $ | 346,016 | $ | 38,541 | $ | 307,475 | $ | - | |||||||||||||
Trading assets | $ | 366 | $ | 366 | $ | - | $ | - | |||||||||||||
There were no transfers between Level 1 and Level 2 during the years ended December 31, 2014 and December, 31, 2013. | |||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Corporation’s collateralized mortgage obligations are probabilities of specific-issuer defaults and deferrals and specific-issuer recovery assumptions. Significant increases in specific-issuer default assumptions or decreases in specific-issuer recovery assumptions would result in a significantly lower fair value measurement. Conversely, decreases in specific-issuer default assumptions or increases in specific-issuer recovery assumptions would result in a higher fair value measurement. The Corporation treats all interest payment deferrals as defaults and assumes no recoveries on defaults. | |||||||||||||||||||||
The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||
Trust Preferred Securities Available for Sale | Fair Value Measurement | Fair Value Measurement | |||||||||||||||||||
twelve-months ended | twelve-months ended | ||||||||||||||||||||
December 31, 2014 Using | December 31, 2013 Using | ||||||||||||||||||||
Significant Unobservable | Significant Unobservable | ||||||||||||||||||||
Inputs (Level 3) | Inputs (Level 3) | ||||||||||||||||||||
Beginning balance | $ | - | $ | 445,600 | |||||||||||||||||
Total gains/losses (realized/unrealized): | |||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||
Impairment charge on investment securities | - | (29,025 | ) | ||||||||||||||||||
Included in other comprehensive income | - | 183,425 | |||||||||||||||||||
Transfers in and/or out of Level 3 | - | (600,000 | ) | ||||||||||||||||||
Ending balance, December 31 | $ | - | $ | - | |||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis are summarized below (amounts in thousands): | |||||||||||||||||||||
Fair Value Measurement at December 31, 2014 Using | |||||||||||||||||||||
Financial Assets: | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Impaired Loans: | |||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||
Commercial mortgages | $ | 3,593 | $ | - | $ | - | $ | 2,905 | |||||||||||||
Consumer loans: | |||||||||||||||||||||
Home equity lines and loans | 52 | - | - | 52 | |||||||||||||||||
Total Impaired Loans | $ | 3,645 | $ | - | $ | - | $ | 2,957 | |||||||||||||
Other real estate owned: | |||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||
Commercial mortgages | $ | 3,063 | $ | - | $ | - | $ | 3,063 | |||||||||||||
Consumer loans: | |||||||||||||||||||||
Home equity lines and loans | 2 | - | - | 2 | |||||||||||||||||
Total Other Real Estate Owned, net | $ | 3,065 | $ | - | $ | - | $ | 3,065 | |||||||||||||
Fair Value Measurement at December 31, 2013 Using | |||||||||||||||||||||
Financial Assets: | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Impaired Loans: | |||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||
Commercial and industrial | $ | 460 | $ | - | $ | - | $ | 460 | |||||||||||||
Commercial mortgages: | |||||||||||||||||||||
Commercial mortgages | 485 | - | - | 485 | |||||||||||||||||
Consumer loans: | |||||||||||||||||||||
Home equity lines and loans | 54 | - | - | 54 | |||||||||||||||||
Total Impaired Loans | $ | 999 | $ | - | $ | - | $ | 999 | |||||||||||||
Other real estate owned: | |||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||
Commercial and industrial | $ | 101 | $ | - | $ | - | $ | 101 | |||||||||||||
Commercial mortgages: | |||||||||||||||||||||
Commercial mortgages | 266 | - | - | 266 | |||||||||||||||||
Residential mortgages | 106 | - | - | 106 | |||||||||||||||||
Consumer loans: | |||||||||||||||||||||
Home equity lines and loans | 65 | - | - | 65 | |||||||||||||||||
Total Other Real Estate Owned, net | $ | 538 | $ | - | $ | - | $ | 538 | |||||||||||||
The following table presents information related to Level 3 non-recurring fair value measurement at December 31, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||||||||||
Description | Fair Value at December 31, 2014 | Technique | Unobservable Inputs | ||||||||||||||||||
Impaired loans | $ | 3,645 | Third party real estate and a 100% discount of personal property | 1 | Management discount based on underlying collateral characteristics and market conditions | ||||||||||||||||
OREO | $ | 3,065 | Third party appraisals | 1 | Estimated holding period | ||||||||||||||||
2 | Estimated closing costs | ||||||||||||||||||||
Description | Fair Value at December 31, 2013 | Technique | Unobservable Inputs | ||||||||||||||||||
Impaired loans | $ | 999 | Third party real estate and a 100% discount of personal property | 1 | Management discount based on underlying collateral characteristics and market conditions | ||||||||||||||||
OREO | $ | 538 | Third party appraisals | 1 | Estimated holding period | ||||||||||||||||
2 | Estimated closing costs | ||||||||||||||||||||
Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a principal balance of $4.9 million with a valuation allowance of $1.2 million as of December 31, 2014, resulting in an increase of $232 thousand in the provision for loan losses for the year ending December 31, 2014. Impaired loans had a principal balance of $2.0 million with a valuation allowance of $1.0 million as of December 31, 2013, resulting in an increase of $853 thousand in the provision for loan losses for the year ending December 31, 2013. | |||||||||||||||||||||
OREO, which is measured by the lower of carrying or fair value less costs to sell, had a net carrying amount of $3.1 million at December 31, 2014. The net carrying amount reflects the outstanding balance of $3.1 million net of a valuation allowance of $2 thousand at December 31, 2014. OREO had a net carrying amount of $538 thousand at December 31, 2013. The net carrying amount reflects the outstanding balance of $732 thousand, net of a valuation allowance of $194 thousand at December 31, 2013, which resulted in a write down of $2 thousand for the year ended December 31, 2013. | |||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments: | |||||||||||||||||||||
Cash, Due From and Interest-Bearing Deposits in Other Financial Institutions | |||||||||||||||||||||
For those short-term instruments that generally mature in 90 days or less, the carrying value approximates fair value of which non interest-bearing deposits are classified as Level 1 and interest-bearing deposits with the FHLBNY and FRBNY are classified as Level 1, and time deposits are classified as Level 2. | |||||||||||||||||||||
FHLB and FRB Stock | |||||||||||||||||||||
It is not practicable to determine the fair value of FHLBNY and FRBNY stock due to restrictions on its transferability. | |||||||||||||||||||||
Loans Receivable | |||||||||||||||||||||
For variable-rate loans that reprice frequently, fair values approximate carrying values. The fair values for other loans are estimated through discounted cash flow analysis using interest rates currently being offered for loans with similar terms and credit quality. Loans are classified as Level 3. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. Loans held for sale are classified as Level 2. | |||||||||||||||||||||
Loans Held for Sale | |||||||||||||||||||||
Certain mortgage loans are originated with the intent to sell. Loans held for sale are recorded at the lower of cost or fair value in the aggregate. Loans held for sale are classified as Level 2. | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
The fair values disclosed for demand deposits, savings accounts and money market accounts are, by definition, equal to the amounts payable on demand at the reporting date (i.e., their carrying values) and classified as Level 1. | |||||||||||||||||||||
The fair value of certificates of deposits is estimated using a discounted cash flow approach that applies interest rates currently being offered on certificates to a schedule of the weighted-average expected monthly maturities and classified as Level 2. | |||||||||||||||||||||
Securities Sold Under Agreements to Repurchase | |||||||||||||||||||||
These instruments bear both variable and fixed rates of interest. Therefore, the carrying value approximates fair value for the variable rate instruments and the fair value of fixed rate instruments is based on discounted cash flows to maturity. These are classified as Level 2. | |||||||||||||||||||||
FHLBNY Term Advances | |||||||||||||||||||||
These instruments bear a stated rate of interest to maturity and, therefore, the fair value is based on discounted cash flows to maturity and classified as Level 2. | |||||||||||||||||||||
Commitments to Extend Credit | |||||||||||||||||||||
The fair value of commitments to extend credit is based on fees currently charged to enter into similar agreements, the counter-party's credit standing and discounted cash flow analysis. The fair value of these commitments to extend credit approximates the recorded amounts of the related fees and is not material at December 31, 2014 and 2013. | |||||||||||||||||||||
Accrued Interest Receivable and Payable | |||||||||||||||||||||
For these short-term instruments, the carrying value approximates fair value resulting in a classification of Level 1, Level 2 or Level 3 depending upon the classification of the asset/liability they are associated with. | |||||||||||||||||||||
The carrying amounts and estimated fair values of other financial instruments, at December 31, 2014 and December 31, 2013, are as follows (amounts in thousands): | |||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||
Financial assets: | Carrying Amount | Quoted Prices | Significant Other Observable Inputs | Significant Unobservable Inputs | Estimated | ||||||||||||||||
in Active Markets for Identical Assets | (Level 2) | (Level 3) | Fair Value (1) | ||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Cash and due from financial institutions | $ | 28,130 | $ | 28,130 | $ | - | $ | - | $ | 28,130 | |||||||||||
Interest-bearing deposits in other financial institutions | 1,033 | 1,033 | - | - | 1,033 | ||||||||||||||||
Trading assets | 549 | 549 | - | - | 549 | ||||||||||||||||
Securities available for sale | 280,507 | 31,219 | 249,288 | - | 280,507 | ||||||||||||||||
Securities held to maturity | 5,831 | - | 6,197 | - | 6,197 | ||||||||||||||||
FHLBNY and FRBNY stock | 5,535 | - | - | - | N/A | ||||||||||||||||
Loans, net | 1,107,888 | - | - | 1,135,590 | 1,135,590 | ||||||||||||||||
Loans held for sale | 665 | - | 665 | - | 665 | ||||||||||||||||
Accrued interest receivable | 4,185 | 145 | 1,295 | 2,745 | 4,185 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Demand, savings, and insured money market accounts | $ | 1,068,171 | $ | 1,068,171 | $ | - | $ | - | $ | 1,068,171 | |||||||||||
Time deposits | 211,843 | - | 212,397 | - | 212,397 | ||||||||||||||||
Securities sold under agreements to repurchase | 29,652 | - | 30,853 | - | 30,853 | ||||||||||||||||
FHLBNY overnight advances | 30,830 | - | 30,832 | - | 30,832 | ||||||||||||||||
FHLBNY term advances | 19,310 | - | 20,235 | - | 20,235 | ||||||||||||||||
Accrued interest payable | 237 | 15 | 222 | - | 237 | ||||||||||||||||
(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||||||
Financial Assets: | Carrying Amount | Quoted Prices | Significant Other Observable Inputs | Significant Unobservable Inputs | Estimated Fair Value (1) | ||||||||||||||||
in Active Markets | (Level 2) | (Level 3) | |||||||||||||||||||
for Identical Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Cash and due from financial institutions | $ | 31,600 | $ | 31,600 | $ | - | $ | - | $ | 31,600 | |||||||||||
Interest-bearing deposits in other financial institutions | 20,009 | 20,009 | - | - | 20,009 | ||||||||||||||||
Trading assets | 366 | 366 | - | - | 366 | ||||||||||||||||
Securities available for sale | 346,016 | 38,541 | 307,475 | - | 346,016 | ||||||||||||||||
Securities held to maturity | 6,495 | - | 6,930 | - | 6,930 | ||||||||||||||||
FHLBNY and FRBNY stock | 4,482 | - | - | - | N/A | ||||||||||||||||
Loans, net | 983,090 | - | - | 1,008,826 | 1,008,826 | ||||||||||||||||
Loans held for sale | 695 | - | 695 | - | 695 | ||||||||||||||||
Accrued interest receivable | 4,166 | 145 | 1,468 | 2,553 | 4,166 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Demand, savings, and insured money market accounts | $ | 1,021,764 | $ | 1,021,764 | $ | - | $ | - | $ | 1,021,764 | |||||||||||
Time deposits | 244,492 | - | 245,482 | - | 245,482 | ||||||||||||||||
Securities sold under agreements to repurchase | 32,701 | - | 33,636 | - | 33,636 | ||||||||||||||||
FHLBNY Advances | 25,243 | - | 26,064 | - | 26,064 | ||||||||||||||||
Accrued interest payable | 336 | 15 | 170 | 151 | 336 | ||||||||||||||||
(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
REGULATORY_CAPITAL_REQUIREMENT
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
REGULATORY CAPITAL REQUIREMENTS [Abstract] | |||||||||||||||||||||||||
REGULATORY CAPITAL REQUIREMENTS | (17) REGULATORY CAPITAL REQUIREMENTS | ||||||||||||||||||||||||
The Corporation 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 consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets (all as defined in the applicable regulations). Management believes that, as of December 31, 2014 and 2013, the Corporation and the Bank met all capital adequacy requirements to which they were subject. | |||||||||||||||||||||||||
As of December 31, 2014, the most recent notification from the Federal Reserve Bank of New York categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There have been no conditions or events since that notification that management believes have changed the Bank's or the Corporation's capital category. | |||||||||||||||||||||||||
The Corporation’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net income, combined with the retained net income of the preceding two years, subject to the capital requirements in the table below. During 2015, the Bank could, without prior approval, declare dividends of approximately $13.6 million plus any 2015 net income retained to the date of the dividend declaration. | |||||||||||||||||||||||||
The actual capital amounts and ratios of the Corporation and the Bank are presented in the following tables (amounts in thousands): | |||||||||||||||||||||||||
Actual | Required To Be Adequately Capitalized | Required To Be Well | |||||||||||||||||||||||
Capitalized | |||||||||||||||||||||||||
As of December 31, 2014 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 129,211 | 11.84 | % | $ | 87,271 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 123,685 | 11.35 | % | $ | 87,178 | 8 | % | $ | 108,972 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 115,483 | 10.59 | % | $ | 43,636 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 110,014 | 10.1 | % | $ | 43,589 | 4 | % | $ | 65,383 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets): | |||||||||||||||||||||||||
Consolidated | $ | 115,483 | 7.78 | % | $ | 44,556 | 3 | % | N/A | N/A | |||||||||||||||
Bank | $ | 110,014 | 7.41 | % | $ | 44,512 | 3 | % | $ | 74,187 | 5 | % | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 126,299 | 12.1 | % | $ | 83,484 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 121,222 | 11.63 | % | $ | 83,369 | 8 | % | $ | 104,211 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 110,260 | 10.57 | % | $ | 41,742 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 105,239 | 10.1 | % | $ | 41,684 | 4 | % | $ | 62,527 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets): | |||||||||||||||||||||||||
Consolidated | $ | 110,260 | 8.08 | % | $ | 40,940 | 3 | % | N/A | N/A | |||||||||||||||
Bank | $ | 105,239 | 7.72 | % | $ | 40,900 | 3 | % | $ | 68,167 | 5 | % |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS [Abstract] | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS | (18) ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS | ||||||||||||
Accumulated other comprehensive income or loss represents the net unrealized holding gains or losses on securities available for sale and the funded status of the Corporation's defined benefit pension plan and other benefit plans, as of the consolidated balance sheet dates, net of the related tax effect. | |||||||||||||
The following is a summary of the changes in accumulated other comprehensive income or loss by component, net of tax, for the periods indicated (amounts in thousands): | |||||||||||||
Unrealized Gains and Losses on Securities Available for Sale | Defined Benefit and Other Benefit Plans | Total | |||||||||||
Balance at December 31, 2013 | $ | 6,043 | $ | (5,888 | ) | $ | 155 | ||||||
Other comprehensive income (loss) before reclassification | 146 | (5,221 | ) | (5,075 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (4,229 | ) | 364 | (3,865 | ) | ||||||||
Net current period other comprehensive loss | (4,083 | ) | (4,857 | ) | (8,940 | ) | |||||||
Balance at December 31, 2014 | $ | 1,960 | $ | (10,745 | ) | $ | (8,785 | ) | |||||
Unrealized Gains and Losses on Securities Available for Sale | Defined Benefit and Other Benefit Plans | Total | |||||||||||
Balance at December 31, 2012 | $ | 8,023 | $ | (10,830 | ) | $ | (2,807 | ) | |||||
Other comprehensive income (loss) before reclassification | (1,988 | ) | 3,994 | 2,006 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 8 | 948 | 956 | ||||||||||
Net current period other comprehensive loss | (1,980 | ) | 4,942 | 2,962 | |||||||||
Balance at December 31, 2013 | $ | 6,043 | $ | (5,888 | ) | $ | 155 | ||||||
The following is the reclassification out of accumulated other comprehensive income (loss) for the periods indicated (amounts in thousands): | |||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Year Ended December 31, | Affected Line Item | |||||||||||
in the Statement Where | |||||||||||||
Net Income is Presented | |||||||||||||
2014 | 2013 | ||||||||||||
Unrealized gains and losses on securities available for sale: | |||||||||||||
Reclassification adjustment for other-than-temporary losses realized in income | $ | - | $ | 29 | Total impairment losses | ||||||||
Realized gains on securities available for sale | (6,869 | ) | (16 | ) | Net gains on securities transactions | ||||||||
Tax effect | 2,640 | (5 | ) | Income tax benefit (expense) | |||||||||
Net of tax | (4,229 | ) | 8 | ||||||||||
Amortization of defined pension plan and other benefit plan items: | |||||||||||||
Prior service costs (a) | (90 | ) | (83 | ) | Pension and other employee benefits | ||||||||
Actuarial losses (a) | 681 | 1,624 | Pension and other employee benefits | ||||||||||
Tax effect | (227 | ) | (593 | ) | Income tax benefit | ||||||||
Net of tax | 364 | 948 | |||||||||||
Total reclassification for the period, net of tax | $ | $ | (3,865 | ) | $ | 956 | |||||||
(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other benefit plan costs (see Note 11 for additional information). |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SEGMENT REPORTING [Abstract] | |||||||||||||||||
SEGMENT REPORTING | (19) SEGMENT REPORTING | ||||||||||||||||
The Corporation manages its operations through two primary business segments: core banking and wealth management services. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets and to invest in securities. The wealth management services segment provides revenues by providing trust and investment advisory services to clients. | |||||||||||||||||
Accounting policies for the segments are the same as those described in Note 1. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment. Holding company amounts are the primary differences between segment amounts and consolidated totals, and are reflected in the Holding Company and Other column below, along with amounts to eliminate transactions between segments (amounts in thousands): | |||||||||||||||||
Year ended December 31, 2014 | Core Banking | Wealth Management Group | Holding Company and Other | Consolidated Totals | |||||||||||||
Net interest income | $ | 49,556 | $ | - | $ | 12 | $ | 49,568 | |||||||||
Provision for loan losses | 3,981 | - | - | 3,981 | |||||||||||||
Net interest income after provision for loan losses | 45,575 | - | 12 | 45,587 | |||||||||||||
Other operating income | 18,186 | 7,746 | 824 | 26,756 | |||||||||||||
Legal settlements | - | 4,250 | - | 4,250 | |||||||||||||
Other operating expenses | 49,997 | 5,355 | 875 | 56,227 | |||||||||||||
Income (loss) before income tax expense | 13,764 | (1,859 | ) | (39 | ) | 11,866 | |||||||||||
Income tax expense (benefit) | 4,507 | (715 | ) | (83 | ) | 3,709 | |||||||||||
Segment net income (loss) | $ | 9,257 | $ | (1,144 | ) | $ | 44 | $ | 8,157 | ||||||||
Segment assets | $ | 1,518,584 | $ | 4,357 | $ | 1,598 | $ | 1,524,539 | |||||||||
Year ended December 31, 2013 | Core Banking | Wealth Management Group | Holding Company and Other | Consolidated Totals | |||||||||||||
Net interest income | $ | 46,621 | $ | - | $ | 10 | $ | 46,631 | |||||||||
Provision for loan losses | 2,755 | - | - | 2,755 | |||||||||||||
Net interest income after provision for loan losses | 43,866 | - | 10 | 43,876 | |||||||||||||
Other operating income | 9,913 | 7,344 | 820 | 18,077 | |||||||||||||
Other operating expenses | 43,136 | 5,480 | 784 | 49,400 | |||||||||||||
Income before income tax expense | 10,643 | 1,864 | 46 | 12,553 | |||||||||||||
Income tax expense (benefit) | 3,139 | 717 | (34 | ) | 3,822 | ||||||||||||
Segment net income | $ | 7,504 | $ | 1,147 | $ | 80 | $ | 8,731 | |||||||||
Segment assets | $ | 1,469,482 | $ | 4,943 | $ | 1,718 | $ | 1,476,143 | |||||||||
Year ended December 31, 2012 | Core Banking | Wealth Management Group | Holding Company and Other | Consolidated Totals | |||||||||||||
Net interest income | $ | 46,834 | $ | - | $ | 8 | $ | 46,842 | |||||||||
Provision for loan losses | 828 | - | - | 828 | |||||||||||||
Net interest income after provision for loan losses | 46,006 | - | 8 | 46,014 | |||||||||||||
Other operating income | 9,597 | 6,827 | 764 | 17,188 | |||||||||||||
Other operating expenses | 40,550 | 5,389 | 856 | 46,795 | |||||||||||||
Income (loss) before income tax expense | 15,053 | 1,438 | (84 | ) | 16,407 | ||||||||||||
Income tax expense (benefit) | 4,954 | 553 | (122 | ) | 5,385 | ||||||||||||
Segment net income | $ | 10,099 | $ | 885 | $ | 38 | $ | 11,022 | |||||||||
Segment assets | $ | 1,240,752 | $ | 5,156 | $ | 2,252 | $ | 1,248,160 |
BRANCH_ACQUISITION
BRANCH ACQUISITION | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
BRANCH ACQUISITION [Abstract] | |||||
BRANCH ACQUISITION | (20) BRANCH ACQUISITION | ||||
On July 10, 2013, the Bank entered into an agreement with Bank of America to acquire six branch offices in Auburn, Cortland, Ithaca and Seneca Falls, New York. Under the terms of the agreement, the Bank purchased the related branch premises and certain performing loans, and assumed the related deposits. The transaction was completed on November 23, 2013. The assets acquired and deposits assumed in the transaction were recorded at their estimated fair values as follows: | |||||
Cash, net | $ | 170,904 | |||
Loans | 1,240 | ||||
Bank premises and equipment | 4,081 | ||||
Core deposit intangible asset | 2,155 | ||||
Other assets | 350 | ||||
Total assets acquired | $ | 178,730 | |||
Deposits assumed | $ | 177,749 | |||
Time deposit premium | 263 | ||||
Other liabilities | 718 | ||||
Total liabilities assumed | $ | 178,730 | |||
The transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair values on the acquisition date. Fair values are preliminary and in certain cases are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to fair values becomes available. | |||||
The operating results of the acquired branch offices included in the Corporation’s consolidated statement of income for the year ended December 31, 2013 reflect only the amounts from the acquisition date through December 31, 2013. | |||||
The core deposit intangible asset of $2.2 million will be amortized on an accelerated basis over a period of approximately seven years. The time deposit premium of $263 thousand will be accreted over the estimated remaining life of the related deposits as a reduction to interest expense. | |||||
Negative goodwill of $470 thousand was recorded as a gain from bargain purchase and was calculated as the purchase discount after adjusting for the fair value of net assets acquired. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
ORGANIZATION | ORGANIZATION |
The Corporation, through its wholly owned subsidiaries, the Bank and CFS Group, Inc., provides a wide range of banking, financing, fiduciary and other financial services to its clients. The Corporation is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies. | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION |
The accompanying consolidated financial statements have been prepared in conformity with GAAP and include the accounts of the Corporation and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. | |
SECURITIES | SECURITIES |
Management determines the appropriate classification of securities at the time of purchase. If management has the intent and the Corporation has the ability at the time of purchase to hold securities until maturity, they are classified as held to maturity and carried at amortized cost. Securities to be held for indefinite periods of time or not intended to be held to maturity are classified as available for sale and carried at fair value. Unrealized holding gains and losses on securities classified as available for sale are excluded from earnings and are reported as accumulated other comprehensive income (loss) in shareholders' equity, net of the related tax effects, until realized. Realized gains and losses are determined using the specific identification method. | |
Management evaluates securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, the Corporation compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. | |
Premiums and discounts are amortized or accreted over the life of the related security as an adjustment of yield using the interest method. Dividend and interest income is recognized when collected. | |
FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK STOCK | FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK STOCK |
The Bank is a member of both the FHLBNY and the FRBNY. FHLBNY members are required to own a certain amount of stock based on the level of borrowings and other factors, while FRBNY members are required to own a certain amount of stock based on a percentage of the Bank’s capital stock and surplus. FHLBNY and FRBNY stock are carried at cost and classified as non-marketable equities and periodically evaluated for impairment based on ultimate recovery of par value. Cash dividends are reported as income. | |
BANK OWNED LIFE INSURANCE | BANK OWNED LIFE INSURANCE |
Bank Owned Life Insurance ("BOLI") is recorded at the amount that can be realized under the insurance contracts at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Changes in the cash surrender value are recorded in other income. | |
LOANS HELD FOR SALE | LOANS HELD FOR SALE |
Certain mortgage loans are originated with the intent to sell. Loans held for sale are recorded at the lower of cost or fair value in the aggregate. Loans held for sale, as well as the commitments to sell the loans that are originated for sale, are regularly evaluated for changes in fair value. If necessary, a valuation allowance is established with a charge to income for unrealized losses attributable to a change in market rates. | |
LOANS | LOANS |
Loans are stated at the amount of unpaid principal balance net of deferred loan fees. Additionally, recorded investment in loans includes interest receivable on loans. The Corporation has the ability and intent to hold its loans for the foreseeable future. The Corporation’s loan portfolio, including acquired loans, is comprised of the following segments: (i) commercial and agricultural, (ii) commercial mortgages, (iii) residential mortgages, and (iv) consumer loans. | |
Commercial and agricultural loans primarily consist of loans to small to mid-sized businesses in the Corporation’s market area in a diverse range of industries. These loans are typically made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. Commercial mortgage loans are generally non-owner occupied commercial properties or owner occupied commercial real estate with larger balances. Repayment of these loans is often dependent upon the successful operation and management of the properties and the businesses occupying the properties, as well as on the collateral securing the loan. Residential mortgage loans are generally made on the basis of the borrower’s ability to make repayment from their employment and other income, but are secured by real property. Consumer loans include home equity lines of credit and home equity loans, which exhibit many of the same characteristics as residential mortgages. Indirect and other consumer loans are typically secured by depreciable assets, such as automobiles or boats, and are dependent on the borrower’s continuing financial stability. | |
Interest on loans is accrued and credited to operations using the interest method. Past due status is based on the contractual terms of the loan. The accrual of interest is generally discontinued and previously accrued interest is reversed when loans become 90 days delinquent. Loans may also be placed on non-accrual status if management believes such classification is otherwise warranted. All payments received on non-accrual loans are applied to principal. Loans are returned to accrual status when they become current as to principal and interest and remain current for a period of six consecutive months or when, in the opinion of management, the Corporation expects to receive all of its original principal and interest. Loan origination fees and certain direct loan origination costs are deferred and amortized over the life of the loan as an adjustment to yield, using the interest method. | |
ACQUIRED LOANS | ACQUIRED LOANS |
Non-Impaired Acquired Loans: | |
Loans acquired are initially recorded at fair value with no carryover of the related allowance for loan losses. After acquisition, losses beyond those estimated in determining the initial fair value are recognized through the allowance for loan losses. Determining fair value of the loans involves estimating the amount and timing of expected principal and interest cash flows to be collected on the loans and discounting those cash flows at a market interest rate. | |
Purchased Credit Impaired Loans: | |
Loans acquired that show evidence of credit deterioration since origination are considered purchased credit impaired loans These loans are recorded at the fair value of the amount paid, such that there is no carryover of the seller’s allowance for loan losses. | |
Such purchased loans are accounted for individually. The Corporation estimates the amount and timing of expected cash flows for each purchased loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). | |
After acquisition, losses are recognized by an increase in the allowance for loan losses. Over the life of the loan expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a reserve is established. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. These loans are charged against the allowance for loan losses when management believes that the collectability of all or a portion of the principal is unlikely. | |
TROUBLED DEBT RESTRUCTURINGS | TROUBLED DEBT RESTRUCTURINGS |
A TDR is a formally renegotiated loan in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not have been granted to the borrower otherwise. Not all loans that are restructured as a TDR are classified as non-accrual before the restructuring occurs. Restructured loans can convert from non-accrual to accrual status when said loans have demonstrated performance, generally evidenced by six months of payment performance in accordance with the restructured terms, or by the presence of other significant items. | |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES |
The allowance is an amount that management believes will be adequate to absorb probable incurred losses on existing loans. The allowance is established based on management’s evaluation of the probable inherent losses in our portfolio in accordance with GAAP, and is comprised of both specific valuation allowances and general valuation allowances. | |
A loan is classified as impaired when, based on current information and events, it is probable that the Corporation will be unable to collect both the principal and interest due under the contractual terms of the loan agreement. Specific valuation allowances are established based on management’s analyses of individually impaired loans. Factors considered by management in determining impairment include payment status, evaluations of the underlying collateral, expected cash flows, 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. If a loan is determined to be impaired and is placed on nonaccrual status, all future payments received are applied to principal and a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. | |
The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. Loans not impaired but classified as substandard and special mention use a historical loss factor on a rolling five year history of net losses. For all other unclassified loans, the historical loss experience is determined by portfolio class and is based on the actual loss history experienced by the Corporation over the most recent two years. This actual loss experience is supplemented with other qualitative factors based on the risks present for each portfolio class. These qualitative factors include consideration of the following: (1) lending policies and procedures, including underwriting standards and collection, charge-off and recovery policies, (2) national and local economic and business conditions and developments, including the condition of various market segments, (3) loan profiles and volume of the portfolio, (4) the experience, ability, and depth of lending management and staff, (5) the volume and severity of past due, classified and watch-list loans, non-accrual loans, troubled debt restructurings, and other modifications (6) the quality of the Bank’s loan review system and the degree of oversight by the Bank’s Board of Directors, (7) collateral related issues: secured vs. unsecured, type, declining valuation environment and trend of other related factors, (8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations, (9) the effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Bank’s current portfolio and (10) the impact of the global economy. | |
The allowance for loan losses is increased through a provision for loan losses charged to operations. Loans are charged against the allowance for loan losses when management believes that the collectability of all or a portion of the principal is unlikely. Management's evaluation of the adequacy of the allowance for loan losses is performed on a periodic basis and takes into consideration such factors as the credit risk grade assigned to the loan, historical loan loss experience and review of specific impaired loans. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation's allowance for loan losses. Such agencies may require the Corporation to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT |
Land is carried at cost, while buildings, equipment, leasehold improvements and furniture are stated at cost less accumulated depreciation and amortization. Depreciation is charged to current operations under the straight-line method over the estimated useful lives of the assets, which range from 15 to 50 years for buildings and from 3 to 10 years for equipment and furniture. Amortization of leasehold improvements and leased equipment is recognized on the straight-line method over the shorter of the lease term or the estimated life of the asset. | |
OTHER REAL ESTATE | OTHER REAL ESTATE |
Real estate acquired through foreclosure or deed in lieu of foreclosure is recorded at estimated fair value of the property less estimated costs to dispose at the time of acquisition to establish a new carrying value. Write downs from the carrying value of the loan to estimated fair value which are required at the time of foreclosure are charged to the allowance for loan losses. Subsequent adjustments to the carrying values of such properties resulting from declines in fair value are charged to operations in the period in which the declines occur. | |
INCOME TAXES | INCOME TAXES |
The Corporation files a consolidated tax return. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for unused tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates to apply to taxable income in the years in which temporary differences are expected to be recovered or settled, or the tax loss carry forwards are expected to be utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |
A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. | |
WEALTH MANAGEMENT GROUP FEE INCOME | WEALTH MANAGEMENT GROUP FEE INCOME |
Assets held in a fiduciary or agency capacity for customers are not included in the accompanying consolidated balance sheets, since such assets are not assets of the Corporation. Wealth Management Group income is recognized on the accrual method as earned based on contractual rates applied to the balances of individual trust accounts. The unaudited market value of trust assets under administration total $1.956 billion at December 31, 2014 and $1.888 billion at December 31, 2013. | |
POSTRETIREMENT BENEFITS | POSTRETIREMENT BENEFITS |
Pension Plan: | |
The Chemung Canal Trust Company Pension Plan is a non-contributory defined benefit pension plan. The Pension Plan is a “qualified plan” under the IRS Code and therefore must be funded. Contributions are deposited to the Plan and held in trust. The Plan assets may only be used to pay retirement benefits and eligible plan expenses. The plan was amended such that new employees hired on or after July 10, 2010 will not be eligible to participate in the plan, however, existing participants at that time will continue to accrue benefits. The amendment has resulted in a decrease over time in the future benefit obligations of the plan and the corresponding net periodic benefit cost associated with the plan. | |
Under the Plan, pension benefits are based upon final average annual compensation where the annual compensation is total base earnings paid plus 401(k) salary deferrals. Bonuses, overtime, commissions and dividends are excluded. The normal retirement benefit equals 1.2% of final average compensation (highest consecutive five years of annual compensation in the prior ten years) times years of service (up to a maximum of 25 years), plus 1% of average monthly compensation for each additional year of service (up to a maximum of 10 years), plus .65% of average monthly compensation in excess of covered compensation for each year of credited service up to 35 years. Covered compensation is the average of the social security taxable wage bases in effect for the 35 year period prior to normal social security retirement age. Compensation for purposes of determining benefits under the Plan is reviewed annually. | |
Defined Contribution Profit Sharing, Savings and Investment Plan: | |
The Corporation also sponsors a 401(K) defined contribution profit sharing, savings and investment plan which covers all eligible employees with a minimum of 1,000 hours of annual service. The Corporation makes non-discretionary contributions and discretionary matching and profit sharing contributions to the plan based on the financial results of the Corporation. The plan's assets consist of Chemung Financial Corporation common stock, as well as other common and preferred stocks, U.S. Government securities, corporate bonds and notes, and mutual funds. The plan’s expense is the amount of non-discretionary contributions and discretionary matching and profit sharing contributions, and is charged to other expenses in the consolidated statements of income. | |
Defined Benefit Health Care Plan: | |
The Corporation sponsors a defined benefit health care plan that provides postretirement medical benefits to employees who meet minimum age and service requirements. This plan was amended effective July 1, 2006. Prior to this amendment, all retirees age 55 or older were eligible for coverage under the Corporation's self-insured health care plan, contributing 40% of the cost of the coverage. Under the amended plan, coverage for Medicare eligible retirees who reside in the Central New York geographic area is provided under a group sponsored plan with Excellus BlueCross BlueShield called Medicare Blue PPO, with the retiree paying 100% of the premium. Excellus BlueCross BlueShield assumes full liability for the payment of health care benefits incurred after July 1, 2006. Current Medicare eligible retirees who reside outside of the Central New York geographic area were eligible for coverage under the Corporation's self insurance plan thru December 31, 2009, contributing 50% of the cost of coverage. Effective January 1, 2010, these out of area retirees were eligible for coverage under a Medicare Supplement Plan C administered by Excellus BlueCross BlueShield, contributing 50% of the premium. Current and future retirees between the ages of 55 and 65, will continue to be eligible for coverage under the Corporation's self insured plan, contributing 50% of the cost of the coverage. Employees who retire after July 1, 2006, and become Medicare eligible will only have access to the Medicare Blue PPO plan. Additionally, effective July 1, 2006, dental benefits were eliminated for all retirees. The cost of the plan is based on actuarial computations of current and future benefits for employees, and is charged to other operating expenses in the consolidated statements of income. | |
Executive Supplemental Pension Plan: | |
U.S. laws place limitations on compensation amounts that may be included under the Pension Plan. The Executive Supplemental Pension Plan is provided to executives in order to produce total retirement benefits, as a percentage of compensation that is comparable to employees whose compensation is not restricted by the annual compensation limit. Pension amounts, which exceed the applicable Internal Revenue Service code limitations, will be paid under the Executive Supplemental Pension Plan. | |
The Executive Supplemental Pension Plan is a “non-qualified plan” under the Internal Revenue Service Code. Contributions to the Plan are not held in trust; therefore, they may be subject to the claims of creditors in the event of bankruptcy or insolvency. When payments come due under the Plan, cash is distributed from general assets. The cost of the plan is based on actuarial computations of current and future benefits for executives, and is charged to other operating expense in the consolidated statements of income. | |
Defined Contribution Supplemental Executive Retirement Plan: | |
The Defined Contribution Supplemental Executive Retirement Plan is provided to certain executives to motivate and retain key management employees by providing a nonqualified retirement benefit that is payable at retirement, disability, death and certain other events. The Defined Contribution Supplemental Executive Retirement Plan will deliver a retirement benefit comparable to that received by other executive officers participating in the bank’s Defined Benefit Plan. | |
The Supplemental Executive Retirement Plan is intended to be an unfunded plan maintained primarily for the purpose of providing deferred compensation benefits for a select group of management or highly compensated employees under Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974. The plan’s expense is the Corporation’s annual contribution plus interest credits. | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION |
Restricted Stock Plan: | |
The Restricted Stock Plan, in effect as of June 16, 2010, is designed to align the interests of the Corporation’s executives and senior managers with the interests of the Corporation and its shareholders, to ensure the Corporation’s compensation practices are competitive and comparable with those of its peers, and to promote the retention of select management-level employees. Under the terms of the Plan, the Corporation may make discretionary grants of restricted shares of the Corporation’s common stock to or for the benefit of employees selected to participate in the Plan. Each officer of the Corporation, other than the Corporation’s chief executive officer, is eligible to participate in the Plan. Awards are based on the performance, responsibility and contributions of the employee and are targeted at an average of the peer group. The maximum number of shares of the Corporation’s common stock that may be awarded as restricted shares to Plan participants may not exceed 15,000 per calendar year. Twenty percent of the restricted stock awarded to a participant vests each year commencing with the first anniversary date of the award and is 100 percent vested on the fifth anniversary date. Except in the case of the participant’s death, disability, or in the event of a change in control, the participant’s unvested shares of unrestricted stock will be forfeited if the participant leaves the employ of the Corporation or the Bank, with or without cause, or if the participant retires prior to attainment of age 65. The plan’s expense is recognized as compensation expense ratably over the vesting period for the fair value of the award, measured at the grant date. | |
Deferred Directors Fee Plan: | |
A Deferred Directors Fee Plan for non-employee directors provides that directors may elect to defer receipt of all or any part of their fees. Deferrals are either credited with interest compounded quarterly at the Applicable Federal Rate for short-term debt instruments or converted to units, which appreciate or depreciate, as would an actual share of the Corporation’s common stock purchased on the deferral date. Cash deferrals will be paid into an interest bearing account and paid in cash. Units will be paid in shares of common stock. All directors’ fees are charged to other operating expense in the consolidated statements of income. | |
Directors’ Compensation Plan: | |
The purpose of the Directors’ Compensation Plan is to enable the Corporation to attract and retain persons of exceptional ability to serve as directors and stockholders in enhancing the value of the common stock of the Corporation. The Plan was originally established to provide for the cash payment of an annual retainer and fees to non-employee directors serving on the Board of Directors of the Corporation and the Bank. The Plan was subsequently amended to provide: (i) payment of additional compensation to each non-employee director in shares of the Corporation’s common stock in an amount equal to the total cash compensation earned by each non-employee director during the year for service on the Board of Directors of each of the Corporation and the Bank, and for each year of service thereafter, to be distributed from treasury shares in January of the following calendar year; and (ii) payment to the President and CEO of the Corporation and the Bank for his service on the Boards of Directors of the Corporation and the Bank in an amount equal in value to the average cash compensation awarded to non-employee directors who have served twelve (12) months of the previous year. The maximum number of shares of Corporation’s common stock that may be granted under the Plan may not exceed 20,000 per year. The Plan was amended, effective January 1, 2012, to provide that the value of a share of common stock granted under the Plan shall be determined as the average of the closing prices of a share of common stock as quoted on the applicable established securities market for each of the prior 30 trading days ending on December 31st of the calendar year. The cost of all cash and stock compensation is charged to other operating expenses in the consolidated statements of income. | |
Incentive Compensation Plan: | |
The Incentive Compensation Plan replaces the President and CEO Bonus Plan that was in effect prior to January 1, 2012. The purpose of the Incentive Compensation Plan is to attract and retain highly qualified officers and key employees, and to motivate such persons to serve the Corporation and the Bank and to expend maximum effort to improve the business results and earnings of the Corporation by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Corporation. To this end, the Incentive Compensation Plan provides for the discretionary grant of cash and/or unrestricted stock, i.e., common stock of the Corporation that is free of any restrictions, such as restrictions on transferability, to select officers and key employees as designated by the Board in its sole discretion. The maximum number of shares that can be awarded as unrestricted stock under the Incentive Compensation Plan to any individual is 10,000 per calendar year; and the maximum amount that may be earned in cash as an Incentive Award in any calendar year by any individual is $300,000. The right of any eligible employee to receive a grant of an incentive award, whether in the form of cash or unrestricted stock, is subject to performance standards that are specified by either the Compensation Committee or the Board. The cost of all cash and unrestricted stock compensation is charged to other operating expenses in the consolidated statements of income. | |
Non-qualified Deferred Compensation Plan: | |
The Deferred Compensation Plan allows a select group of management and employees to defer all or a portion of their annual compensation to a future date. Eligible employees are generally highly compensated employees and are designated by the Board from time to time. Investments in the plan are recorded as trading assets and deferred amounts are an unfunded liability of the Corporation. The plan requires deferral elections be made before the beginning of the calendar year during which the participant will perform the services to which the compensation relates. Participants in the Plan are required to elect a form of distribution, either lump sum payment or annual installments not to exceed ten years, and a time of distribution, either a specified age or a specified date. The terms and conditions for the deferral of compensation are subject to the provisions of 409A of the IRS Code. The income from investments and cost of the plan are recorded as other operating income and other operating expenses, respectively, in the consolidated statements of income. | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS |
Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Corporation has selected December 31 as the date to perform the annual impairment test. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The balances are reviewed for impairment on an ongoing basis or whenever events or changes in business circumstances warrant a review of the carrying value. If impairment is determined to exist, the related write-down of the intangible asset's carrying value is charged to operations. Based on these impairment reviews, the Corporation determined that goodwill and other intangible assets were not impaired at December 31, 2014. | |
The Corporation's intangible assets with definite useful lives resulted from the purchase of the trust business of Partners Trust Bank in May of 2007, the acquisition of three former M&T Bank branch offices in March 2008, the acquisition of Canton Bancorp, Inc. in May 2009, the acquisition of Fort Orange Financial Corp. in April 2011 and the acquisition of six branches of Bank of America in November of 2013, with balances of $2.4 million, $21 thousand, $8 thousand, $1.1 million and $1.6 million, respectively, at December 31, 2014. The trust business intangible is being amortized to expense over the expected useful life of 15 years. The identifiable core deposit and customer relationship intangibles related to the M&T branch offices, and Canton Bancorp, Inc. acquisitions are being amortized to expense using a 7.25 year accelerated method. The identifiable core deposit related to the branch offices in the Bank of America acquisition is being amortized to expense using a 7 year accelerated method. The identifiable core deposit intangible related to the FOFC acquisition is being amortized using a 10 year sum-of-the-years digits method. | |
ADVERTISING COSTS | ADVERTISING COSTS |
Costs for advertising products and services or for promoting our corporate image are expensed as incurred. | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE |
Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Issuable shares including those related to directors’ restricted stock units and directors’ stock compensation are considered outstanding and are included in the computation of basic earnings per share as they are earned. All outstanding unvested share based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities. The impact of the participating securities on earnings per share is not material. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME (LOSS) |
Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and changes in the funded status of the Corporation’s defined benefit pension plan and other benefit plans, net of the related tax effect, which are also recognized as separate components of equity. | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS |
Cash and cash equivalents include cash and amounts due from banks and interest-bearing deposits with other financial institutions. | |
TRADING ASSETS | TRADING ASSETS |
Securities that are held to fund a non-qualified deferred compensation plan are recorded at fair value with changes in fair value included in earnings. | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE |
The Corporation enters into sales of securities under agreements to repurchase. The agreements are treated as financings, and the obligations to repurchase securities sold are reflected as liabilities in the consolidated balance sheets. The amount of the securities underlying the agreements continues to be carried in the Corporation's securities portfolio. The Corporation has agreed to repurchase securities identical to those sold. The securities underlying the agreements are under the Corporation's control. | |
OTHER FINANCIAL INSTRUMENTS | OTHER FINANCIAL INSTRUMENTS |
The Corporation is a party to certain other financial instruments with off-balance sheet risk such as unused portions of lines of credit and commitments to fund new loans. The Corporation's policy is to record such instruments when funded. | |
SEGMENT REPORTING | SEGMENT REPORTING |
The Corporation has identified separate operating segments and internal financial information is primarily reported and aggregated in two lines of business, banking and wealth management services. | |
RECLASSIFICATION | RECLASSIFICATION |
Amounts in the prior years' consolidated financial statements are reclassified whenever necessary to conform to the current year's presentation. | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
The Corporation has evaluated subsequent events for recognition and disclosure through March, 13, 2015, which is the date the financial statements were available to be issued. | |
SECURITIES_Tables
SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SECURITIES [Abstract] | |||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Securities Available for Sale | Amortized cost and estimated fair value of securities available for sale at December 31, 2014 and 2013 are as follows (amounts in thousands): | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 180,535 | $ | 181,673 | $ | 187,098 | $ | 188,106 | |||||||||||||||||
Mortgage-backed securities, residential | 60,787 | 61,660 | 104,069 | 104,356 | |||||||||||||||||||||
Collateralized mortgage obligations | 335 | 338 | 1,001 | 1,015 | |||||||||||||||||||||
Obligations of states and political subdivisions | 30,677 | 31,451 | 37,339 | 38,376 | |||||||||||||||||||||
Corporate bonds and notes | 1,502 | 1,533 | 2,879 | 2,946 | |||||||||||||||||||||
SBA loan pools | 1,296 | 1,304 | 1,471 | 1,488 | |||||||||||||||||||||
Trust preferred securities | 1,906 | 2,028 | 1,898 | 2,034 | |||||||||||||||||||||
Corporate stocks | 285 | 520 | 444 | 7,695 | |||||||||||||||||||||
Total | $ | 277,323 | $ | 280,507 | $ | 336,199 | $ | 346,016 | |||||||||||||||||
Gross unrealized gains and losses on securities available for sale at December 31, 2014 and 2013, were as follows (amounts in thousands): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 1,300 | $ | 162 | $ | 1,914 | $ | 906 | |||||||||||||||||
Mortgage-backed securities, residential | 892 | 19 | 1,037 | 750 | |||||||||||||||||||||
Collateralized mortgage obligations | 3 | - | 14 | - | |||||||||||||||||||||
Obligations of states and political subdivisions | 802 | 28 | 1,059 | 22 | |||||||||||||||||||||
Corporate bonds and notes | 35 | 4 | 76 | 9 | |||||||||||||||||||||
SBA loan pools | 11 | 3 | 17 | - | |||||||||||||||||||||
Trust preferred securities | 122 | - | 136 | - | |||||||||||||||||||||
Corporate stocks | 235 | - | 7,253 | 2 | |||||||||||||||||||||
Total | $ | 3,400 | $ | 216 | $ | 11,506 | $ | 1,689 | |||||||||||||||||
Amortized Cost and Estimated Fair Value of Debt Securities Available for Sale by Contractual Maturity | The amortized cost and estimated fair value of debt securities available for sale are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (amounts in thousands): | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Within one year | $ | 37,087 | $ | 37,552 | |||||||||||||||||||||
After one, but within five years | 172,100 | 173,534 | |||||||||||||||||||||||
After five, but within ten years | 5,433 | 5,599 | |||||||||||||||||||||||
After ten years | - | - | |||||||||||||||||||||||
Mortgage-backed securities, residential | 60,787 | 61,660 | |||||||||||||||||||||||
Collateralized mortgage obligations | 335 | 338 | |||||||||||||||||||||||
SBA loan pools | 1,296 | 1,304 | |||||||||||||||||||||||
Total | $ | 277,038 | $ | 279,987 | |||||||||||||||||||||
Proceeds from Sales and Calls of Securities Resulting in Gains or Losses | The proceeds from sales and calls of securities resulting in gains or losses are listed below (amounts in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Proceeds | $ | 36,258 | $ | 2,650 | $ | 26,210 | |||||||||||||||||||
Gross gains | $ | 6,869 | $ | 16 | $ | 301 | |||||||||||||||||||
Tax expense | $ | 2,641 | $ | 6 | $ | 116 | |||||||||||||||||||
Amortized Cost and Estimated Fair Value of Securities Held to Maturity | Amortized cost and estimated fair value of securities held to maturity at December 31, 2014 and 2013 are as follows (amounts in thousands): | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Amortized | Estimated Fair Value | Amortized | Estimated Fair Value | ||||||||||||||||||||||
Cost | Cost | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 5,175 | $ | 5,535 | $ | 5,472 | $ | 5,891 | |||||||||||||||||
Time deposits with other financial institutions | 656 | 662 | 1,023 | 1,039 | |||||||||||||||||||||
$ | 5,831 | $ | 6,197 | $ | 6,495 | $ | 6,930 | ||||||||||||||||||
Gross unrealized gains and losses on securities held to maturity at December 31, 2014 and 2013, were as follows (amounts in thousands): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 360 | $ | - | $ | 419 | $ | - | |||||||||||||||||
Time deposits with other financial institutions | 6 | - | 16 | - | |||||||||||||||||||||
Total | $ | 366 | $ | - | $ | 435 | $ | - | |||||||||||||||||
Contractual Maturities of Securities Held to Maturity | The contractual maturity of securities held to maturity is as follows at December 31, 2014 (amounts in thousands): | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Within one year | $ | 2,629 | $ | 2,658 | |||||||||||||||||||||
After one, but within five years | 2,199 | 2,390 | |||||||||||||||||||||||
After five, but within ten years | 1,003 | 1,149 | |||||||||||||||||||||||
After ten years | - | - | |||||||||||||||||||||||
Total | $ | 5,831 | $ | 6,197 | |||||||||||||||||||||
Investment Securities Available for Sale in Unrealized Loss Position | The following table summarizes the investment securities available for sale with unrealized losses at December 31, 2014 and December 31, 2013 by aggregated major security type and length of time in a continuous unrealized position (amounts in thousands): | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
2014 | Losses | Losses | Losses | ||||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 57,512 | $ | 108 | $ | 4,945 | $ | 54 | $ | 62,457 | $ | 162 | |||||||||||||
Mortgage-backed securities, residential | 11,051 | 19 | - | - | 11,051 | 19 | |||||||||||||||||||
Obligations of states and political subdivisions | 4,625 | 22 | 1,056 | 6 | 5,681 | 28 | |||||||||||||||||||
Corporate bonds and notes | - | - | 243 | 4 | 243 | 4 | |||||||||||||||||||
SBA loan pools | 276 | 1 | 316 | 2 | 592 | 3 | |||||||||||||||||||
Total temporarily impaired securities | $ | 73,464 | $ | 150 | $ | 6,560 | $ | 66 | $ | 80,024 | $ | 216 | |||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
2013 | Losses | Losses | Losses | ||||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 83,840 | $ | 867 | $ | 1,978 | $ | 39 | $ | 85,818 | $ | 906 | |||||||||||||
Mortgage-backed securities, residential | 63,115 | 750 | - | - | 63,115 | 750 | |||||||||||||||||||
Obligations of states and political subdivisions | 4,589 | 22 | - | - | 4,589 | 22 | |||||||||||||||||||
Corporate bonds and notes | 238 | 9 | - | - | 238 | 9 | |||||||||||||||||||
Corporate stocks | - | - | 2 | 2 | 2 | 2 | |||||||||||||||||||
Total temporarily impaired securities | $ | 151,782 | $ | 1,648 | $ | 1,980 | $ | 41 | $ | 153,762 | $ | 1,689 | |||||||||||||
Roll Forward of Cumulative Credit Losses Recognized in Earnings | The table below presents a roll forward of the cumulative credit losses recognized in earnings for the periods ended December 31, 2014, 2013 and 2012 (amounts in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Beginning balance, January 1, | $ | 1,939 | $ | 3,506 | $ | 3,506 | |||||||||||||||||||
Amounts related to credit loss for which other-than-temporary impairment was not previously recognized | - | - | - | ||||||||||||||||||||||
Additions/Subtractions: | |||||||||||||||||||||||||
Amounts related to securities for which the company intends to sell or that it will be more likely than not that the company will be required to sell prior to recovery of amortized cost basis | - | - | - | ||||||||||||||||||||||
Reductions for increase in cash flows expected to be collected that are recognized over the remaining life of the security | - | - | - | ||||||||||||||||||||||
Reductions for previous credit losses realized on securities sold during the year | - | (1,596 | ) | - | |||||||||||||||||||||
Reductions for previous credit losses realized on securities liquidated during the year | (1,939 | ) | - | - | |||||||||||||||||||||
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | - | 29 | - | ||||||||||||||||||||||
Ending balance, December 31, | $ | - | $ | 1,939 | $ | 3,506 | |||||||||||||||||||
Securities Pledged to Secure Securities Sold under Agreements to Repurchase | The table below shows the securities pledged to secure securities sold under agreements to repurchase at December 31, 2014 and 2013. (amounts in thousands) | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
Obligations of U.S. Government and U. S. Government sponsored enterprises | $ | 36,195 | $ | 36,641 | $ | 33,746 | $ | 34,369 | |||||||||||||||||
Mortgage-backed securities, residential | 7,934 | 8,350 | 11,802 | 12,365 | |||||||||||||||||||||
Collateralized mortgage obligations | 48 | 48 | 205 | 207 | |||||||||||||||||||||
Total | $ | 44,177 | $ | 45,039 | $ | 45,753 | $ | 46,941 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||||||||||||||||||||||||||
Composition of Loan Portfolio by Type | The composition of the loan portfolio, net of deferred loan fees is summarized as follows (amounts in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 165,385 | $ | 144,787 | |||||||||||||||||||||||||
Agricultural | 1,021 | 576 | |||||||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 54,831 | 27,440 | |||||||||||||||||||||||||||
Commercial mortgages | 397,762 | 345,707 | |||||||||||||||||||||||||||
Residential mortgages | 196,809 | 195,997 | |||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Credit cards | 1,654 | 1,756 | |||||||||||||||||||||||||||
Home equity lines and loans | 99,354 | 95,905 | |||||||||||||||||||||||||||
Indirect consumer loans | 184,763 | 164,846 | |||||||||||||||||||||||||||
Direct consumer loans | 19,995 | 18,852 | |||||||||||||||||||||||||||
Total loans, net of deferred loan fees | $ | 1,121,574 | $ | 995,866 | |||||||||||||||||||||||||
Interest receivable on loans | 2,780 | 2,597 | |||||||||||||||||||||||||||
Total recorded investment in loans | $ | 1,124,354 | $ | 998,463 | |||||||||||||||||||||||||
Allowance for Loan Losses by Portfolio Segment | The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2014, 2013 and 2012, respectively (amounts in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial, and Agricultural | Commercial Mortgages | Residential Mortgages | Consumer Loans | Unallocated | Total | |||||||||||||||||||||||
Beginning balance: | $ | 1,979 | $ | 6,243 | $ | 1,517 | $ | 3,037 | $ | - | $ | 12,776 | |||||||||||||||||
Charge Offs: | (444 | ) | (2,229 | ) | (97 | ) | (1,508 | ) | - | (4,278 | ) | ||||||||||||||||||
Recoveries: | 385 | 156 | 32 | 634 | - | 1,207 | |||||||||||||||||||||||
Net (charge offs) recoveries | (59 | ) | (2,073 | ) | (65 | ) | (874 | ) | - | (3,071 | ) | ||||||||||||||||||
Provision | (460 | ) | 2,156 | 120 | 2,165 | - | 3,981 | ||||||||||||||||||||||
Ending balance | $ | 1,460 | $ | 6,326 | $ | 1,572 | $ | 4,328 | $ | - | $ | 13,686 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial, and Agricultural | Commercial Mortgages | Residential Mortgages | Consumer Loans | Unallocated | Total | |||||||||||||||||||||||
Beginning balance: | $ | 1,708 | $ | 4,428 | $ | 1,565 | $ | 2,706 | $ | 26 | $ | 10,433 | |||||||||||||||||
Charge Offs: | (186 | ) | (44 | ) | (124 | ) | (1,139 | ) | - | (1,493 | ) | ||||||||||||||||||
Recoveries: | 537 | 98 | 65 | 381 | - | 1,081 | |||||||||||||||||||||||
Net recoveries (charge offs) | 351 | 54 | (59 | ) | (758 | ) | - | (412 | ) | ||||||||||||||||||||
Provision | (80 | ) | 1,761 | 11 | 1,089 | (26 | ) | 2,755 | |||||||||||||||||||||
Ending balance | $ | 1,979 | $ | 6,243 | $ | 1,517 | $ | 3,037 | $ | - | $ | 12,776 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial, and Agricultural | Commercial Mortgages | Residential Mortgages | Consumer Loans | Unallocated | Total | |||||||||||||||||||||||
Beginning balance: | $ | 3,143 | $ | 2,570 | $ | 1,310 | $ | 2,193 | $ | 443 | $ | 9,659 | |||||||||||||||||
Reclassification of acquired loan discount | 74 | 50 | - | - | - | 124 | |||||||||||||||||||||||
Charge Offs: | (181 | ) | (335 | ) | (83 | ) | (674 | ) | - | (1,273 | ) | ||||||||||||||||||
Recoveries: | 802 | 55 | - | 238 | - | 1,095 | |||||||||||||||||||||||
Net recoveries (charge offs) | 621 | (280 | ) | (83 | ) | (436 | ) | - | (178 | ) | |||||||||||||||||||
Provision | (2,130 | ) | 2,088 | 338 | 949 | (417 | ) | 828 | |||||||||||||||||||||
Ending balance | $ | 1,708 | $ | 4,428 | $ | 1,565 | $ | 2,706 | $ | 26 | $ | 10,433 | |||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans Based on Impairment Method | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 and December 31, 2013 (amounts in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial | Commercial Mortgages | Residential Mortgages | Consumer Loans | Total | ||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 89 | $ | 1,145 | $ | - | $ | 1 | $ | 1,235 | |||||||||||||||||||
Collectively evaluated for impairment | 1,335 | 5,145 | 1,550 | 4,327 | 12,357 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 36 | 36 | 22 | - | 94 | ||||||||||||||||||||||||
Total ending allowance balance | $ | 1,460 | $ | 6,326 | $ | 1,572 | $ | 4,328 | $ | 13,686 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Allowance for loan losses | Commercial | Commercial Mortgages | Residential Mortgages | Consumer Loans | Total | ||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 576 | $ | 466 | $ | - | $ | 4 | $ | 1,046 | |||||||||||||||||||
Collectively evaluated for impairment | 1,403 | 4,407 | 1,497 | 3,033 | 10,340 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | - | 1,370 | 20 | - | 1,390 | ||||||||||||||||||||||||
Total ending allowance balance | $ | 1,979 | $ | 6,243 | $ | 1,517 | $ | 3,037 | $ | 12,776 | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Loans: | Commercial | Commercial Mortgages | Residential Mortgages | Consumer Loans | Total | ||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,452 | $ | 13,712 | $ | 254 | $ | 486 | $ | 15,904 | |||||||||||||||||||
Loans collectively evaluated for impairment | 164,748 | 438,246 | 196,783 | 306,042 | 1,105,819 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 620 | 1,761 | 250 | - | 2,631 | ||||||||||||||||||||||||
Total ending loans balance | $ | 166,820 | $ | 453,719 | $ | 197,287 | $ | 306,528 | $ | 1,124,354 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Loans: | Commercial | Commercial Mortgages | Residential Mortgages | Consumer Loans | Total | ||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,946 | $ | 10,703 | $ | 117 | $ | 131 | $ | 13,897 | |||||||||||||||||||
Loans collectively evaluated for impairment | 142,108 | 354,636 | 196,147 | 281,979 | 974,870 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 678 | 8,757 | 261 | - | 9,696 | ||||||||||||||||||||||||
Total ending loans balance | $ | 145,732 | $ | 374,096 | $ | 196,525 | $ | 282,110 | $ | 998,463 | |||||||||||||||||||
Summary of Impaired Financing Receivables | The following tables present loans individually evaluated for impairment recognized by class of loans as of December 31, 2014 and December 31, 2013, the average recorded investment and interest income recognized by class of loans as of the years ended December 31, 2014, 2013 and 2012 (amounts in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,359 | $ | 1,364 | $ | - | $ | 1,906 | $ | 1,909 | $ | - | |||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 1,927 | 1,910 | - | 2,329 | 2,319 | - | |||||||||||||||||||||||
Commercial mortgages | 7,803 | 7,708 | - | 7,406 | 7,439 | - | |||||||||||||||||||||||
Residential mortgages | 253 | 253 | - | 117 | 117 | - | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines and loans | 429 | 432 | - | 71 | 73 | - | |||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 89 | 89 | 89 | 1,037 | 1,037 | ||||||||||||||||||||||||
Commercial mortgages: | 576 | ||||||||||||||||||||||||||||
Commercial mortgages | 4,210 | 4,094 | 1,145 | 951 | 945 | ||||||||||||||||||||||||
Consumer loans: | 466 | ||||||||||||||||||||||||||||
Home equity lines and loans | 54 | 54 | 1 | 58 | 58 | 4 | |||||||||||||||||||||||
Total | $ | 16,124 | $ | 15,904 | $ | 1,235 | $ | 13,875 | $ | 13,897 | $ | 1,046 | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized (1) | Average Recorded Investment | Interest Income Recognized (1) | Average Recorded Investment | Interest Income Recognized (1) | ||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,463 | $ | 40 | $ | 1,605 | $ | 71 | $ | 481 | $ | 1 | |||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 2,104 | 102 | 3,364 | 95 | 73 | 1 | |||||||||||||||||||||||
Commercial mortgages | 7,492 | 259 | 5,991 | 249 | 1,990 | 10 | |||||||||||||||||||||||
Residential mortgages | 141 | 1 | 125 | - | 106 | - | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines & loans | 143 | 6 | 47 | 2 | 30 | - | |||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 502 | - | 719 | - | 1,831 | - | |||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | - | - | - | - | 4 | - | |||||||||||||||||||||||
Commercial mortgages | 1,611 | 41 | 867 | - | 872 | - | |||||||||||||||||||||||
Residential mortgages | - | - | - | - | 64 | - | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines and loans | 56 | 4 | 47 | 3 | - | - | |||||||||||||||||||||||
Direct consumer loans | - | - | 3 | - | - | - | |||||||||||||||||||||||
Total | $ | 13,512 | $ | 453 | $ | 12,768 | $ | 421 | $ | 5,451 | $ | 12 | |||||||||||||||||
Recorded Investment in Past Due and Non-Accrual Status by Class of Loans | The following tables present the recorded investment in past due and non-accrual status by class of loans as of December 31, 2014 and December 31, 2013 (amounts in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Current | 30-89 Days Past Due | 90 Days or more Past Due and accruing | Loans acquired with deteriorated credit quality | Non-Accrual (1) | Total | ||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 164,109 | $ | 756 | $ | - | $ | 620 | $ | 312 | $ | 165,797 | |||||||||||||||||
Agricultural | 1,023 | - | - | - | - | 1,023 | |||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 53,371 | - | 1,446 | - | 150 | 54,967 | |||||||||||||||||||||||
Commercial mortgages | 391,096 | 3,064 | - | 1,761 | 2,831 | 398,752 | |||||||||||||||||||||||
Residential mortgages | 191,089 | 2,333 | - | 250 | 3,615 | 197,287 | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Credit cards | 1,641 | 5 | 8 | - | - | 1,654 | |||||||||||||||||||||||
Home equity lines and loans | 98,340 | 736 | - | - | 515 | 99,591 | |||||||||||||||||||||||
Indirect consumer loans | 183,103 | 1,789 | - | - | 325 | 185,217 | |||||||||||||||||||||||
Direct consumer loans | 19,988 | 48 | - | - | 30 | 20,066 | |||||||||||||||||||||||
Total | $ | 1,103,760 | $ | 8,731 | $ | 1,454 | $ | 2,631 | $ | 7,778 | $ | 1,124,354 | |||||||||||||||||
(1) Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2014. | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Current | 30-89 Days Past Due | 90 Days or more Past Due and accruing | Loans acquired with deteriorated credit quality | Non-Accrual (1) | Total | ||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 143,100 | $ | 29 | $ | - | $ | 678 | $ | 1,348 | $ | 145,155 | |||||||||||||||||
Agricultural | 577 | - | - | - | - | 577 | |||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 24,742 | - | 1,454 | 774 | 540 | 27,510 | |||||||||||||||||||||||
Commercial mortgages | 335,123 | 1,138 | - | 7,983 | 2,342 | 346,586 | |||||||||||||||||||||||
Residential mortgages | 187,448 | 5,458 | - | 261 | 3,358 | 196,525 | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Credit cards | 1,729 | 9 | 19 | - | - | 1,757 | |||||||||||||||||||||||
Home equity lines and loans | 95,349 | 150 | - | - | 635 | 96,134 | |||||||||||||||||||||||
Indirect consumer loans | 163,810 | 1,235 | - | - | 249 | 165,294 | |||||||||||||||||||||||
Direct consumer loans | 18,830 | 50 | - | - | 45 | 18,925 | |||||||||||||||||||||||
Total | $ | 970,708 | $ | 8,069 | $ | 1,473 | $ | 9,696 | $ | 8,517 | $ | 998,463 | |||||||||||||||||
(1) Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2013. | |||||||||||||||||||||||||||||
Loans by Class Modified as Troubled Debt Restructurings | The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2014, 2013 and 2012 (amounts in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 4 | $ | 1,028 | $ | 1,028 | ||||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Commercial mortgages | 4 | 2,666 | 2,623 | ||||||||||||||||||||||||||
Residential mortgages | 1 | 149 | 150 | ||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines and loans | 1 | 366 | 366 | ||||||||||||||||||||||||||
Total | 10 | $ | 4,209 | $ | 4,167 | ||||||||||||||||||||||||
31-Dec-13 | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 5 | $ | 1,343 | $ | 1,343 | ||||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 1 | 326 | 326 | ||||||||||||||||||||||||||
Commercial mortgages | 1 | 133 | 133 | ||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||
Home equity lines and loans | 3 | 134 | 134 | ||||||||||||||||||||||||||
Total | 10 | $ | 1,936 | $ | 1,936 | ||||||||||||||||||||||||
31-Dec-12 | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | 4 | $ | 1,307 | $ | 1,307 | ||||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | 1 | 251 | 251 | ||||||||||||||||||||||||||
Commercial mortgages | 3 | 3,872 | 3,872 | ||||||||||||||||||||||||||
Total | 8 | $ | 5,430 | $ | 5,430 | ||||||||||||||||||||||||
Risk Category of Recorded Investment of Loans by Class of Loans | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans. Based on the analyses performed as of December 31, 2014 and December 31, 2013, the risk category of the recorded investment of loans by class of loans is as follows (amounts in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Not Rated | Pass | Loans | Special Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||
acquired with deteriorated credit quality | |||||||||||||||||||||||||||||
Commercial and | |||||||||||||||||||||||||||||
agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | - | $ | 158,140 | $ | 620 | $ | 3,695 | $ | 3,306 | $ | 36 | $ | 165,797 | |||||||||||||||
Agricultural | - | 1,023 | - | - | - | - | 1,023 | ||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | - | 51,525 | - | 3,292 | 150 | - | 54,967 | ||||||||||||||||||||||
Commercial mortgages | - | 365,448 | 1,761 | 20,871 | 10,266 | 406 | 398,752 | ||||||||||||||||||||||
Residential mortgages | 193,422 | - | 250 | - | 3,615 | - | 197,287 | ||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||
Credit cards | 1,654 | - | - | - | - | - | 1,654 | ||||||||||||||||||||||
Home equity lines and loans | 99,076 | - | - | - | 515 | - | 99,591 | ||||||||||||||||||||||
Indirect consumer loans | 184,940 | - | - | - | 277 | - | 185,217 | ||||||||||||||||||||||
Direct consumer loans | 20,045 | - | - | - | 21 | - | 20,066 | ||||||||||||||||||||||
Total | $ | 499,137 | $ | 576,136 | $ | 2,631 | $ | 27,858 | $ | 18,150 | $ | 442 | $ | 1,124,354 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Not Rated | Pass | Loans | Special Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||
acquired with deteriorated credit quality | |||||||||||||||||||||||||||||
Commercial and | |||||||||||||||||||||||||||||
agricultural: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | - | $ | 133,615 | $ | 678 | $ | 5,117 | $ | 4,724 | $ | 1,021 | $ | 145,155 | |||||||||||||||
Agricultural | - | 577 | - | - | - | - | 577 | ||||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||||||||||
Construction | - | 23,087 | 774 | 2,783 | 866 | - | 27,510 | ||||||||||||||||||||||
Commercial mortgages | - | 313,956 | 7,983 | 13,611 | 11,036 | - | 346,586 | ||||||||||||||||||||||
Residential mortgages | 192,995 | - | 261 | - | 3,269 | - | 196,525 | ||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||
Credit cards | 1,757 | - | - | - | - | - | 1,757 | ||||||||||||||||||||||
Home equity lines and loans | 95,422 | - | - | - | 712 | - | 96,134 | ||||||||||||||||||||||
Indirect consumer loans | 165,045 | - | - | - | 249 | - | 165,294 | ||||||||||||||||||||||
Direct consumer loans | 18,880 | - | - | - | 45 | - | 18,925 | ||||||||||||||||||||||
Total | $ | 474,099 | $ | 471,235 | $ | 9,696 | $ | 21,511 | $ | 20,901 | $ | 1,021 | $ | 998,463 | |||||||||||||||
Recorded Investment in Residential and Consumer Loans Based on Payment Activity | The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2014 and December 31, 2013 (amounts in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Consumer Loans | |||||||||||||||||||||||||||||
Residential Mortgages | Credit Card | Home Equity Lines and Loans | Indirect Consumer Loans | Other Direct Consumer Loans | |||||||||||||||||||||||||
Performing | $ | 193,672 | $ | 1,654 | $ | 99,076 | $ | 184,892 | $ | 20,036 | |||||||||||||||||||
Non-Performing | 3,615 | - | 515 | 325 | 30 | ||||||||||||||||||||||||
$ | 197,287 | $ | 1,654 | $ | 99,591 | $ | 185,217 | $ | 20,066 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Consumer Loans | |||||||||||||||||||||||||||||
Residential Mortgages | Credit Card | Home Equity Lines and Loans | Indirect Consumer Loans | Other Direct Consumer Loans | |||||||||||||||||||||||||
Performing | $ | 193,167 | $ | 1,757 | $ | 95,499 | $ | 165,045 | $ | 18,880 | |||||||||||||||||||
Non-Performing | 3,358 | - | 635 | 249 | 45 | ||||||||||||||||||||||||
Total | $ | 196,525 | $ | 1,757 | $ | 96,134 | $ | 165,294 | $ | 18,925 | |||||||||||||||||||
Summary of Changes in Contractually Required Principal and Interest on Loans Acquired | The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from January 1, 2014 to December 31, 2014 (amounts in thousands): | ||||||||||||||||||||||||||||
Balance at | Income Accretion | All Other Adjustments | Balance at | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-14 | ||||||||||||||||||||||||||||
Contractually required principal and interest | $ | 11,230 | $ | - | $ | (7,609 | ) | $ | 3,621 | ||||||||||||||||||||
Contractual cash flows not expected to be collected (non accretable discount) | (543 | ) | - | (27 | ) | (570 | ) | ||||||||||||||||||||||
Cash flows expected to be collected | 10,687 | - | (7,636 | ) | 3,051 | ||||||||||||||||||||||||
Interest component of expected cash flows (accretable yield) | (991 | ) | 515 | 56 | (420 | ) | |||||||||||||||||||||||
Fair value of loans acquired with deteriorating credit quality | $ | 9,696 | $ | 515 | $ | (7,580 | ) | $ | 2,631 |
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PREMISES AND EQUIPMENT [Abstract] | |||||||||
Schedule of Premises and Equipment | Premises and equipment at December 31, 2014 and 2013 are as follows (amounts in thousands): | ||||||||
2014 | 2013 | ||||||||
Land | $ | 4,803 | $ | 4,803 | |||||
Buildings | 35,067 | 34,379 | |||||||
Projects in progress | 132 | - | |||||||
Equipment and furniture | 40,088 | 34,920 | |||||||
Leasehold improvements | 6,094 | 6,041 | |||||||
86,184 | 80,143 | ||||||||
Less accumulated depreciation and amortization | 53,897 | 50,104 | |||||||
$ | 32,287 | $ | 30,039 | ||||||
Rent Commitments, before Considering Renewal Options | Operating Leases: The Corporation leases certain branch properties under operating leases. Rent Expense was $2.0 million, $1.3 million, and $1.1 million for 2014, 2013, and 2012, respectively. Rent commitments, before considering renewal options that generally are present, were as follows (amounts in thousands): | ||||||||
Year | Estimated Expense | ||||||||
2015 | $ | 1,429 | |||||||
2016 | 1,166 | ||||||||
2017 | 1,143 | ||||||||
2018 | 1,147 | ||||||||
2019 | 834 | ||||||||
2020 and thereafter | 4,154 | ||||||||
Total | $ | 9,873 | |||||||
Schedule of Capital Leased Assets | The Corporation has included these leases in premises and equipment as follows: | ||||||||
2014 | 2013 | ||||||||
Buildings | $ | 3,537 | $ | - | |||||
Accumulated depreciation | - | - | |||||||
$ | 3,537 | $ | - | ||||||
Schedule of Future Minimum Lease Payments for Capital Leases | The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of December 31, 2014 (amounts in thousands): | ||||||||
Year | Amount | ||||||||
2015 | $ | 234 | |||||||
2016 | 234 | ||||||||
2017 | 234 | ||||||||
2018 | 234 | ||||||||
2019 | 234 | ||||||||
2020 and thereafter | 2,644 | ||||||||
Total minimum lease payments | 3,814 | ||||||||
Less amount representing interest | 838 | ||||||||
Present value of net minimum lease payments | $ | 2,976 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |||||||||||||||||
Schedule of Changes in Goodwill | The changes in goodwill included in the core banking segment during the years ended December 31, 2014 and 2013 were as follows (amounts in thousands): | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning of year | $ | 21,824 | $ | 21,824 | |||||||||||||
Acquired goodwill | - | - | |||||||||||||||
End of year | $ | 21,824 | $ | 21,824 | |||||||||||||
Schedule of Acquired Intangible Assets | Acquired intangible assets were as follows at December 31, 2014 and 2013 (amounts in thousands): | ||||||||||||||||
At December 31, 2014 | At December 31, 2013 | ||||||||||||||||
Balance Acquired | Accumulated Amortization | Balance Acquired | Accumulated Amortization | ||||||||||||||
Core deposit intangibles | $ | 5,975 | $ | 3,279 | $ | 5,975 | $ | 2,338 | |||||||||
Other customer relationship intangibles | 5,633 | 3,262 | 6,063 | 3,323 | |||||||||||||
Total | $ | 11,608 | $ | 6,541 | $ | 12,038 | $ | 5,661 | |||||||||
Schedule of Remaining Estimated Aggregate Amortization Expense | The remaining estimated aggregate amortization expense at December 31, 2014 is listed below (amounts in thousands): | ||||||||||||||||
Year | Estimated Expense | ||||||||||||||||
2015 | $ | 1,136 | |||||||||||||||
2016 | 986 | ||||||||||||||||
2017 | 859 | ||||||||||||||||
2018 | 734 | ||||||||||||||||
2019 | 609 | ||||||||||||||||
2020 and thereafter | 743 | ||||||||||||||||
Total | $ | 5,067 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
DEPOSITS [Abstract] | |||||||||
Summary of Deposits | A summary of deposits at December 31, 2014 and 2013 is as follows (amounts in thousands): | ||||||||
2014 | 2013 | ||||||||
Non-interest-bearing demand deposits | $ | 366,298 | $ | 351,222 | |||||
Interest-bearing demand deposits | 110,819 | 114,679 | |||||||
Insured money market accounts | 392,871 | 361,095 | |||||||
Savings deposits | 198,183 | 194,768 | |||||||
Time deposits | 211,843 | 244,492 | |||||||
$ | 1,280,014 | $ | 1,266,256 | ||||||
Scheduled Maturities of Time Deposits | Scheduled maturities of time deposits at December 31, 2014, are summarized as follows (amounts in thousands): | ||||||||
Year | |||||||||
2015 | $ | 155,295 | |||||||
2016 | 34,803 | ||||||||
2017 | 9,486 | ||||||||
2018 | 4,775 | ||||||||
2019 | 5,851 | ||||||||
2020 and thereafter | 1,633 | ||||||||
$ | 211,843 | ||||||||
Maturities of Time Deposits in Denominations | Maturities of time deposits in denominations of $100 thousand or more outstanding at December 31, 2014 are summarized as follows (amounts in thousands): | ||||||||
3 months or less | $ | 31,484 | |||||||
Over 3 through 6 months | 15,286 | ||||||||
Over 6 through 12 months | 17,842 | ||||||||
Over 12 months | 15,845 | ||||||||
$ | 80,457 |
SECURITIES_SOLD_UNDER_AGREEMEN1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Abstract] | |||||||||||||||||
Summary of Securities Sold under Agreements to Repurchase | A summary of securities sold under agreements to repurchase as of and for the years ended December 31, 2014, 2013 and 2012 is as follows (amounts in thousands): | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at December 31 | $ | 29,652 | $ | 32,701 | $ | 32,711 | |||||||||||
Maximum month-end balance | $ | 31,914 | $ | 32,701 | $ | 38,284 | |||||||||||
Average balance during year | $ | 30,667 | $ | 31,102 | $ | 34,534 | |||||||||||
Weighted-average interest rate at December 31 | 2.82 | % | 2.93 | % | 3.02 | % | |||||||||||
Average interest rate paid during year | 2.77 | % | 2.76 | % | 2.88 | % | |||||||||||
Information concerning outstanding securities repurchase agreements as of December 31, 2014 is summarized as follows (amounts in thousands): | |||||||||||||||||
Remaining Term to Final Maturity (1) | Repurchase Liability | Accrued Interest Payable | Weighted Average Rate | Estimated Fair Value of Collateral Securities (2) | |||||||||||||
Within 90 days | $ | 9,652 | $ | - | 0.1 | % | $ | 16,682 | |||||||||
After 90 days but within one year | - | - | - | % | - | ||||||||||||
After one year but within five years | 20,000 | 63 | 4.13 | % | 23,530 | ||||||||||||
After five years but within ten years | - | - | - | % | - | ||||||||||||
Total | $ | 29,652 | $ | 63 | 2.82 | % | $ | 40,212 | |||||||||
-1 | At December 31, 2014, the securities repurchase agreements were non-callable with a weighted-average rate of 3.10%, and a weighted-average term to maturity of approximately 1.9 years. | ||||||||||||||||
-2 | Represents the estimated fair value of the securities subject to the repurchase agreements, including accrued interest receivable, of approximately $342 thousand at December 31, 2014. |
FEDERAL_HOME_LOAN_BANK_TERM_AD1
FEDERAL HOME LOAN BANK TERM ADVANCES AND OVERNIGHT ADVANCES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
FEDERAL HOME LOAN BANK TERM ADVANCES AND OVERNIGHT ADVANCES [Abstract] | ||||||||||||
Schedule of Federal Home Loan Bank Advances | The following is a summary of Federal Home Loan Bank fixed rate advances at December 31, 2014 and 2013. The carrying amount includes the advance balance plus purchase accounting adjustments that are amortized over the term of the advance (amounts in thousands): | |||||||||||
2014 | ||||||||||||
Amount | Rate | Maturity Date | Call Date | |||||||||
$ | 30,830 | 0.32 | % | 2-Jan-15 | - | |||||||
10,000 | 4.6 | % | 22-Dec-16 | - | ||||||||
4,138 | 3.9 | % | 19-Oct-17 | 19-Jan-15 | ||||||||
3,103 | 2.91 | % | 4-Dec-17 | 3-Mar-15 | ||||||||
2,069 | 3.05 | % | 2-Jan-18 | 1-Apr-15 | ||||||||
$ | 50,140 | 1.73 | % | |||||||||
2013 | ||||||||||||
Amount | Rate | Maturity Date | Call Date | |||||||||
$ | 1,033 | 3.2 | % | June 18,2014 | - | |||||||
775 | 3.05 | % | 2-Oct-14 | - | ||||||||
4,134 | 3.84 | % | 20-Oct-14 | 20-Jan-14 | ||||||||
10,000 | 4.6 | % | 22-Dec-16 | - | ||||||||
4,134 | 3.9 | % | 19-Oct-17 | 19-Jan-14 | ||||||||
3,100 | 2.91 | % | 4-Dec-17 | 4-Mar-14 | ||||||||
2,067 | 3.05 | % | 2-Jan-18 | 1-Apr-14 | ||||||||
$ | 25,243 | 3.93 | % |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
Components of Income Tax Expense Attributable to Income from Operations | For the years ended December 31, 2014, 2013 and 2012, income tax expense attributable to income from operations consisted of the following (amounts in thousands): | ||||||||||||
Current: | 2014 | 2013 | 2012 | ||||||||||
State | $ | 606 | $ | 395 | $ | 530 | |||||||
Federal | 5,366 | 3,548 | 4,208 | ||||||||||
5,972 | 3,943 | 4,738 | |||||||||||
Deferred expense/(benefit) | (2,263 | ) | (121 | ) | 647 | ||||||||
$ | 3,709 | $ | 3,822 | $ | 5,385 | ||||||||
Reconciliation of Income Tax Expense | Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate to income before income tax expense as follows (amounts in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax computed at statutory rate | $ | 4,034 | $ | 4,268 | $ | 5,578 | |||||||
Tax-exempt interest | (456 | ) | (483 | ) | (506 | ) | |||||||
Dividend exclusion | (60 | ) | (46 | ) | (40 | ) | |||||||
State taxes, net of Federal impact | 227 | 188 | 439 | ||||||||||
Nondeductible interest expense | 8 | 11 | 16 | ||||||||||
Other items, net | (44 | ) | (116 | ) | (102 | ) | |||||||
Income tax expense | $ | 3,709 | $ | 3,822 | $ | 5,385 | |||||||
Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013, are presented below (amounts in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 5,182 | $ | 4,889 | |||||||||
Accrual for employee benefit plans | 709 | 754 | |||||||||||
Depreciation | 1,010 | 431 | |||||||||||
Deferred compensation and directors' fees | 1,076 | 947 | |||||||||||
Purchase accounting adjustment – deposits | 65 | 137 | |||||||||||
Purchase accounting adjustment – loans | 259 | 340 | |||||||||||
Purchase accounting adjustment - fixed assets | 221 | 224 | |||||||||||
Accounting for defined benefit pension and other benefit plans | 6,624 | 3,691 | |||||||||||
Trust preferred impairment write down | 540 | 742 | |||||||||||
Nonaccrued interest | 617 | 626 | |||||||||||
Accrued expense | 1,580 | - | |||||||||||
Other | 456 | 647 | |||||||||||
Total gross deferred tax assets | 18,339 | 13,428 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred loan fees and costs | 910 | 929 | |||||||||||
Prepaid pension | 5,179 | 5,435 | |||||||||||
Net unrealized gains on securities available for sale | 1,359 | 3,929 | |||||||||||
Discount accretion | 410 | 352 | |||||||||||
Core deposit intangible | 1,479 | 1,556 | |||||||||||
Other | 153 | 144 | |||||||||||
Total gross deferred tax liabilities | 9,490 | 12,345 | |||||||||||
Net deferred tax asset | $ | 8,849 | $ | 1,083 |
PENSION_PLAN_AND_OTHER_BENEFIT1
PENSION PLAN AND OTHER BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Pension Plan [Member] | |||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||
Change in Benefit Obligation | Change in projected benefit obligation: | 2014 | 2013 | ||||||||||||||
Benefit obligation at beginning of year | $ | 36,186 | $ | 38,051 | |||||||||||||
Service cost | 1,045 | 1,195 | |||||||||||||||
Interest cost | 1,738 | 1,587 | |||||||||||||||
Actuarial (gain) loss | 8,064 | (3,269 | ) | ||||||||||||||
Benefits paid | (1,489 | ) | (1,378 | ) | |||||||||||||
Benefit obligation at end of year | $ | 45,544 | $ | 36,186 | |||||||||||||
Change in Plan Assets | Change in plan assets: | 2014 | 2013 | ||||||||||||||
Fair value of plan assets at beginning of year | $ | 41,782 | $ | 37,239 | |||||||||||||
Actual return on plan assets | 3,043 | 5,921 | |||||||||||||||
Employer contributions | - | - | |||||||||||||||
Benefits paid | (1,489 | ) | (1,378 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | 43,336 | $ | 41,782 | |||||||||||||
Funded status | $ | (2,207 | ) | $ | 5,596 | ||||||||||||
Amount Recognized in Accumulated Other Comprehensive Income | Amount recognized in accumulated other comprehensive income (loss) at December 31, 2014 and 2013 consist of the following (amounts in thousands): | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net actuarial loss | $ | 17,388 | $ | 9,843 | |||||||||||||
Prior service cost | 15 | 22 | |||||||||||||||
Total before tax effects | $ | 17,403 | $ | 9,865 | |||||||||||||
Assumptions Used in Determining Benefit Obligation | The principal actuarial assumptions used in determining the projected benefit obligation as of December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.09 | % | 4.92 | % | 4.26 | % | |||||||||||
Assumed rate of future compensation increase | 5 | % | 5 | % | 5 | % | |||||||||||
Components of Net Periodic Benefit Cost | Net periodic benefit cost | 2014 | 2013 | 2012 | |||||||||||||
Service cost, benefits earned during the year | $ | 1,045 | $ | 1,195 | $ | 1,074 | |||||||||||
Interest cost on projected benefit obligation | 1,738 | 1,587 | 1,606 | ||||||||||||||
Expected return on plan assets | (3,174 | ) | (2,824 | ) | (2,743 | ) | |||||||||||
Amortization of net loss | 649 | 1,579 | 1,410 | ||||||||||||||
Amortization of prior service cost | 7 | 14 | 14 | ||||||||||||||
Net periodic cost | $ | 265 | $ | 1,551 | $ | 1,361 | |||||||||||
Schedule of Other Amounts Recognized in Other Comprehensive Income | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | 2014 | 2013 | 2012 | |||||||||||||
Net actuarial (gain) loss | $ | 8,195 | $ | (6,367 | ) | $ | 3,365 | ||||||||||
Recognized loss | (649 | ) | (1,579 | ) | (1,410 | ) | |||||||||||
Amortization of prior service cost | (7 | ) | (14 | ) | (14 | ) | |||||||||||
Total recognized in other comprehensive (loss) income (before tax effect) | $ | 7,539 | $ | (7,960 | ) | $ | 1,941 | ||||||||||
Total recognized in net benefit cost and other comprehensive (loss) income (before tax effect) | $ | 7,804 | $ | (6,409 | ) | $ | 3,302 | ||||||||||
Amounts Expected to be Recognized in Net Periodic Cost | Amounts expected to be recognized in net periodic cost during 2015 | ||||||||||||||||
Loss recognition | $ | 1,475 | |||||||||||||||
Prior service cost recognition | $ | 7 | |||||||||||||||
Assumptions Used in Determining Net Periodic Benefit Cost | The principal actuarial assumptions used in determining the net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.92 | % | 4.26 | % | 4.95 | % | |||||||||||
Expected long-term rate of return on assets | 7.75 | % | 7.75 | % | 8 | % | |||||||||||
Assumed rate of future compensation increase | 5 | % | 5 | % | 5 | % | |||||||||||
Target Assets Allocations | The expected return on plan assets was determined based on a Capital Asset Pricing Model ("CAPM") using historical and expected future returns of the various asset classes, reflecting the target allocations described below. | ||||||||||||||||
Asset Class | Target Allocation 2014 | Percentage of Plan Assets at December 31, | Expected Long-Term Rate of Return | ||||||||||||||
2014 | 2013 | ||||||||||||||||
Large cap domestic equities | 30% - 60 | % | 50 | % | 54 | % | 10.3 | % | |||||||||
Mid-cap domestic equities | 0% - 20 | % | 14 | % | 8 | % | 10.6 | % | |||||||||
Small-cap domestic equities | 0% - 15 | % | 3 | % | 3 | % | 10.8 | % | |||||||||
International equities | 0% - 25 | % | 4 | % | 4 | % | 10.3 | % | |||||||||
Intermediate fixed income | 20% - 50 | % | 26 | % | 26 | % | 4.7 | % | |||||||||
Alternative assets | 0% - 10 | % | 2 | % | 3 | % | 7.5 | % | |||||||||
Cash | 0% - 20 | % | 1 | % | 2 | % | 2.5 | % | |||||||||
Total | 100 | % | 100 | % | |||||||||||||
Fair Value of Plan Assets | The fair value of the plan assets at December 31, 2014 and 2013, by asset class are as follows (amounts in thousands): | ||||||||||||||||
Fair Value Measurement at December 31, 2014 Using | |||||||||||||||||
Plan Assets | Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash | $ | 626 | $ | 626 | $ | - | $ | - | |||||||||
Equity securities: | |||||||||||||||||
U.S. companies | 28,011 | 28,011 | - | - | |||||||||||||
International companies | 856 | 856 | - | - | |||||||||||||
Mutual funds | 7,111 | 7,111 | - | - | |||||||||||||
Debt securities: | |||||||||||||||||
U.S. Treasuries/Government bonds | 2,701 | 2,701 | - | - | |||||||||||||
U.S. Corporate bonds | 3,775 | - | 3,775 | - | |||||||||||||
Foreign bonds, notes & debentures | 256 | - | 256 | - | |||||||||||||
Total plan assets | $ | 43,336 | $ | 39,305 | $ | 4,031 | $ | - | |||||||||
Fair Value Measurement at December 31, 2013 Using | |||||||||||||||||
Plan Assets | Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash | $ | 982 | $ | 982 | $ | - | $ | - | |||||||||
Equity securities: | |||||||||||||||||
U.S. companies | 27,170 | 27,170 | - | - | |||||||||||||
Mutual funds | 7,288 | 7,288 | - | - | |||||||||||||
Debt securities: | |||||||||||||||||
U.S. Treasuries/Government bonds | 3,309 | 3,309 | - | - | |||||||||||||
U.S. Corporate bonds | 2,771 | - | 2,771 | - | |||||||||||||
Foreign bonds, notes & debentures | 262 | - | 262 | - | |||||||||||||
Total plan assets | $ | 41,782 | $ | 38,749 | $ | 3,033 | $ | - | |||||||||
Estimated Benefit Payments | The following table presents the estimated benefit payments for each of the next five years and the aggregate amount expected to be paid in years six through ten for the pension plan (amounts in thousands): | ||||||||||||||||
Calendar Year | Future Expected Benefit Payments | ||||||||||||||||
2015 | $ | 1,761 | |||||||||||||||
2016 | $ | 1,849 | |||||||||||||||
2017 | $ | 1,949 | |||||||||||||||
2018 | $ | 2,052 | |||||||||||||||
2019 | $ | 2,114 | |||||||||||||||
2020-2024 | $ | 11,949 | |||||||||||||||
Defined Benefit Health Care Plan [Member] | |||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||
Change in Benefit Obligation | Changes in accumulated postretirement benefit obligation: | 2014 | 2013 | ||||||||||||||
Accumulated postretirement benefit obligation - beginning of year | $ | 1,490 | $ | 1,534 | |||||||||||||
Service cost | 39 | 44 | |||||||||||||||
Interest cost | 72 | 66 | |||||||||||||||
Participant contributions | 84 | 74 | |||||||||||||||
Actuarial (gain) loss | 177 | (61 | ) | ||||||||||||||
Benefits paid | (199 | ) | (167 | ) | |||||||||||||
Accumulated postretirement benefit obligation at end of year | $ | 1,663 | $ | 1,490 | |||||||||||||
Change in Plan Assets | Change in plan assets: | 2014 | 2013 | ||||||||||||||
Fair value of plan assets at beginning of year | $ | - | $ | - | |||||||||||||
Employer contribution | 115 | 93 | |||||||||||||||
Plan participants’ contributions | 84 | 74 | |||||||||||||||
Benefits paid | (199 | ) | (167 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | - | $ | - | |||||||||||||
Funded status | $ | (1,663 | ) | $ | (1,490 | ) | |||||||||||
Amount Recognized in Accumulated Other Comprehensive Income | Amount recognized in accumulated other comprehensive income (loss) at December 31, 2014 and 2013 consist of the following (amounts in thousands): | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net actuarial loss | $ | 322 | $ | 148 | |||||||||||||
Prior service benefit | (531 | ) | (628 | ) | |||||||||||||
Total before tax effects | $ | (209 | ) | $ | (480 | ) | |||||||||||
Weighted-Average Assumption for Disclosure of Health Care Cost Trend | Weighted-average assumption for disclosure as of December 31, | 2014 | 2013 | 2012 | |||||||||||||
Discount rate | 4.09 | % | 4.92 | % | 4.26 | % | |||||||||||
Health care cost trend: Initial | 7 | % | 8 | % | 9 | % | |||||||||||
Health care cost trend: Ultimate | 5 | % | 5 | % | 5 | % | |||||||||||
Year ultimate cost trend reached | 2018 | 2018 | 2018 | ||||||||||||||
Components of Net Periodic Benefit Cost | Net periodic benefit cost | 2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 39 | $ | 44 | $ | 39 | |||||||||||
Interest cost | 72 | 66 | 71 | ||||||||||||||
Amortization of prior service benefit | (97 | ) | (97 | ) | (97 | ) | |||||||||||
Recognized actuarial loss | 3 | 10 | 1 | ||||||||||||||
Net periodic postretirement cost | $ | 17 | $ | 23 | $ | 14 | |||||||||||
Schedule of Other Amounts Recognized in Other Comprehensive Income | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | 2014 | 2013 | 2012 | |||||||||||||
Net actuarial (gain) loss | $ | 177 | $ | (61 | ) | $ | 178 | ||||||||||
Recognized actuarial loss | (3 | ) | (10 | ) | (1 | ) | |||||||||||
Amortization of prior service benefit | 97 | 97 | 97 | ||||||||||||||
Total recognized in other comprehensive income (loss) (before tax effect) | $ | 271 | $ | 26 | $ | 274 | |||||||||||
Total recognized in net benefit cost and other comprehensive income (loss) (before tax effect) | $ | 288 | $ | 49 | $ | 288 | |||||||||||
Amounts Expected to be Recognized in Net Periodic Cost | Amounts expected to be recognized in net periodic cost during 2015: | ||||||||||||||||
Loss recognition | $ | 10 | |||||||||||||||
Prior service cost recognition | $ | (97 | ) | ||||||||||||||
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point change in assumed health care cost trend rates would have the following effects (amounts in thousands): | ||||||||||||||||
Effect of a 1% increase in health care trend rate on: | 2014 | 2013 | 2012 | ||||||||||||||
Benefit obligation | $ | 5 | $ | 15 | $ | 4 | |||||||||||
Total service and interest cost | $ | - | $ | - | $ | - | |||||||||||
Effect of a 1% decrease in health care trend rate on: | 2014 | 2013 | 2012 | ||||||||||||||
Benefit obligation | $ | (6 | ) | $ | (23 | ) | $ | (5 | ) | ||||||||
Total service and interest cost | $ | - | $ | (2 | ) | $ | (1 | ) | |||||||||
Weighted-Average Assumption for Net Periodic Cost | Weighted-average assumptions for net periodic cost as of December 31,: | 2014 | 2013 | 2012 | |||||||||||||
Discount rate | 4.92 | % | 4.26 | % | 4.95 | % | |||||||||||
Health care cost trend: Initial | 8 | % | 9 | % | 10 | % | |||||||||||
Health care cost tread: Ultimate | 5 | % | 5 | % | 5 | % | |||||||||||
Year ultimate reached | 2018 | 2018 | 2018 | ||||||||||||||
Estimated Benefit Payments | The following table presents the estimated benefit payments for each of the next five years and the aggregate amount expected to be paid in years six through ten (amounts in thousands): | ||||||||||||||||
Calendar Year | Future Estimated Benefit Payments | ||||||||||||||||
2015 | $ | 201 | |||||||||||||||
2016 | $ | 176 | |||||||||||||||
2017 | $ | 140 | |||||||||||||||
2018 | $ | 150 | |||||||||||||||
2019 | $ | 159 | |||||||||||||||
2020-2024 | $ | 652 | |||||||||||||||
Executive Supplemental Pension Plan [Member] | |||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||
Change in Benefit Obligation | Change in projected benefit obligation: | 2014 | 2013 | ||||||||||||||
Benefit obligation at beginning of year | $ | 1,116 | $ | 1,162 | |||||||||||||
Service cost | 38 | 40 | |||||||||||||||
Interest cost | 55 | 48 | |||||||||||||||
Actuarial (gain) loss | 110 | (59 | ) | ||||||||||||||
Benefits paid | (75 | ) | (75 | ) | |||||||||||||
Projected benefit obligation at end of year | $ | 1,244 | $ | 1,116 | |||||||||||||
Change in Plan Assets | Changes in plan assets: | 2014 | 2013 | ||||||||||||||
Fair value of plan assets at beginning of year | $ | - | $ | - | |||||||||||||
Employer contributions | 75 | 75 | |||||||||||||||
Benefits paid | (75 | ) | (75 | ) | |||||||||||||
Fair value of plan assets at end of year | $ | - | $ | - | |||||||||||||
Unfunded status | $ | (1,244 | ) | $ | (1,116 | ) | |||||||||||
Amount Recognized in Accumulated Other Comprehensive Income | Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2014 and 2013 consist of the following (amounts in thousands): | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net actuarial loss | $ | 275 | $ | 194 | |||||||||||||
Prior service cost | - | - | |||||||||||||||
Total before tax effects | $ | 275 | $ | 194 | |||||||||||||
Assumptions Used in Determining Benefit Obligation | Weighted-average assumption for disclosure as of December 31,: | 2014 | 2013 | 2012 | |||||||||||||
Discount rate | 4.09 | % | 4.92 | % | 4.26 | % | |||||||||||
Assumed rate of future compensation increase | 5 | % | 5 | % | 5 | % | |||||||||||
Components of Net Periodic Benefit Cost | Net periodic benefit cost | 2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 38 | $ | 40 | $ | 35 | |||||||||||
Interest cost | 55 | 48 | 51 | ||||||||||||||
Recognized actuarial loss | 29 | 34 | 20 | ||||||||||||||
Net periodic postretirement benefit cost | $ | 122 | $ | 122 | $ | 106 | |||||||||||
Schedule of Other Amounts Recognized in Other Comprehensive Income | Other changes in plan assets and benefit obligation recognized in other comprehensive income (loss): | 2014 | 2013 | 2012 | |||||||||||||
Net actuarial (gain) loss | $ | 110 | $ | (59 | ) | $ | 81 | ||||||||||
Recognized actuarial loss | (29 | ) | (34 | ) | (20 | ) | |||||||||||
Total recognized in other comprehensive income (loss) (before tax effect) | $ | 81 | $ | (93 | ) | $ | 61 | ||||||||||
Total recognized in net benefit cost and other comprehensive income (loss) (before tax effect) | $ | 203 | $ | 29 | $ | 167 | |||||||||||
Amounts Expected to be Recognized in Net Periodic Cost | Amounts expected to be recognized in net periodic cost during 2015: | ||||||||||||||||
Loss recognition | $ | 50 | |||||||||||||||
Prior service cost recognition | $ | - | |||||||||||||||
Assumptions Used in Determining Net Periodic Benefit Cost | Weighted-average assumptions for net periodic cost as of December 31,: | 2014 | 2013 | 2012 | |||||||||||||
Discount rate | 4.92 | % | 4.26 | % | 4.95 | % | |||||||||||
Salary scale | 5 | % | 5 | % | 5 | % | |||||||||||
Estimated Benefit Payments | The following table presents the estimated benefit payments for each of the next five years and the aggregate amount expected to be paid in years six through ten for the Supplemental Pension Plan (amounts in thousands): | ||||||||||||||||
Calendar Year | Future Estimated Benefit Payments | ||||||||||||||||
2015 | $ | 75 | |||||||||||||||
2016 | $ | 75 | |||||||||||||||
2017 | $ | 75 | |||||||||||||||
2018 | $ | 116 | |||||||||||||||
2019 | $ | 116 | |||||||||||||||
2020-2024 | $ | 580 |
STOCK_COMPENSATION_Tables
STOCK COMPENSATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
STOCK COMPENSATION [Abstract] | |||||||||
Summary of Restricted Stock Activity | A summary of restricted stock activity as of December 31, 2014, and changes during the year ended is presented below: | ||||||||
Shares | Weighted–Average Grant Date Fair Value | ||||||||
Nonvested at December 31, 2013 | 20,639 | $ | 27.17 | ||||||
Granted | 11,279 | 28.4 | |||||||
Vested | (5,490 | ) | 26.09 | ||||||
Forfeited or Cancelled | - | - | |||||||
Nonvested at December 31, 2014 | 26,428 | $ | 27.92 |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||
Summary of Related Party Loans | These loans are summarized as follows for the years ended December 31, 2014 and 2013 (amounts in thousands): | ||||||||
2014 | 2013 | ||||||||
Balance at beginning of year | $ | 26,408 | $ | 25,390 | |||||
New loans or additional advances | 33,282 | 30,056 | |||||||
Repayments | (21,888 | ) | (29,038 | ) | |||||
Balance at end of year | $ | 37,802 | $ | 26,408 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||||||||||||||
Contractual Amounts of Financial Instruments with Off-Balance Sheet Risk | The contractual amounts of financial instruments with off-balance sheet risk at year-end were as follows (amounts in thousands): | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Fixed Rate | Variable Rate | Fixed Rate | Variable Rate | ||||||||||||||
Commitments to make loans | $ | 23,756 | $ | 11,082 | $ | 21,049 | $ | 7,893 | |||||||||
Unused lines of credit | $ | 812 | $ | 185,235 | $ | 2,190 | $ | 187,061 | |||||||||
Standby letters of credit | $ | - | $ | 16,747 | $ | - | $ | 17,290 |
PARENT_COMPANY_FINANCIAL_INFOR1
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PARENT COMPANY FINANCIAL INFORMATION [Abstract] | |||||||||||||
Parent Company Statement of Financial Position | Condensed parent company only financial statement information of Chemung Financial Corporation is as follows (investment in subsidiaries is recorded using the equity method of accounting) (amounts in thousands): | ||||||||||||
BALANCE SHEETS - DECEMBER 31 | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
Cash on deposit with subsidiary bank | $ | 3,200 | $ | 2,686 | |||||||||
Investment in subsidiary - Chemung Canal Trust Company | 128,081 | 133,557 | |||||||||||
Investment in subsidiary - CFS Group, Inc. | 908 | 779 | |||||||||||
Dividends receivable from subsidiary bank | 1,204 | 1,195 | |||||||||||
Securities available for sale, at estimated fair value | 346 | 343 | |||||||||||
Other assets | 1,129 | 1,254 | |||||||||||
Total assets | $ | 134,868 | $ | 139,814 | |||||||||
Liabilities and shareholders' equity: | |||||||||||||
Dividends payable | 1,204 | 1,195 | |||||||||||
Other liabilities | 36 | 41 | |||||||||||
Total liabilities | 1,240 | 1,236 | |||||||||||
Shareholders' equity: | |||||||||||||
Total shareholders' equity | 133,628 | 138,578 | |||||||||||
Total liabilities and shareholders' equity | $ | 134,868 | $ | 139,814 | |||||||||
Parent Company Statement of Income | STATEMENTS OF INCOME - YEARS ENDED DECEMBER 31 | 2014 | 2013 | 2012 | |||||||||
Dividends from subsidiary bank | $ | 4,805 | $ | 4,778 | $ | 4,573 | |||||||
Interest and dividend income | 10 | 9 | 7 | ||||||||||
Other income | - | 132 | 150 | ||||||||||
Operating expenses | 261 | 324 | 331 | ||||||||||
Income before impact of subsidiaries' undistributed earnings | 4,554 | 4,595 | 4,399 | ||||||||||
Equity in undistributed earnings of Chemung Canal Trust Company | 3,307 | 3,873 | 6,411 | ||||||||||
Equity in undistributed earnings of CFS Group, Inc. | 129 | 139 | 54 | ||||||||||
Income before income tax | 7,990 | 8,607 | 10,864 | ||||||||||
Income tax benefit | (167 | ) | (124 | ) | (158 | ) | |||||||
Net Income | $ | 8,157 | $ | 8,731 | $ | 11,022 | |||||||
Parent Company Statement of Cash Flows | STATEMENTS OF CASH FLOWS - YEARS ENDED DECEMBER 31 | 2014 | 2013 | 2012 | |||||||||
Cash flows from operating activities: | |||||||||||||
Net Income | $ | 8,157 | $ | 8,731 | $ | 11,022 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed earnings of Chemung Canal Trust Company | (3,307 | ) | (3,873 | ) | (6,411 | ) | |||||||
Equity in undistributed earnings of CFS Group, Inc. | (129 | ) | (139 | ) | (54 | ) | |||||||
Change in dividend receivable | (9 | ) | (1,195 | ) | 1,141 | ||||||||
Change in other assets | 126 | 558 | 765 | ||||||||||
Change in other liabilities | 110 | 79 | 48 | ||||||||||
Expense related to employee stock compensation | 117 | 112 | 80 | ||||||||||
Expense related to restricted stock units for directors' deferred compensation plan | 94 | 99 | 87 | ||||||||||
Expense to employee restricted stock awards | 151 | 131 | 80 | ||||||||||
Net cash provided by operating activities | 5,310 | 4,503 | 6,758 | ||||||||||
Cash flow from financing activities: | |||||||||||||
Cash dividends paid | (4,796 | ) | (3,583 | ) | (5,714 | ) | |||||||
Purchase of treasury stock | - | (93 | ) | (636 | ) | ||||||||
Sale of treasury stock | - | 71 | 258 | ||||||||||
Net cash used in financing activities | (4,796 | ) | (3,605 | ) | (6,092 | ) | |||||||
Increase in cash and cash equivalents | 514 | 898 | 666 | ||||||||||
Cash and cash equivalents at beginning of year | 2,686 | 1,788 | 1,122 | ||||||||||
Cash and cash equivalents at end of year | $ | 3,200 | $ | 2,686 | $ | 1,788 |
FAIR_VALUES_Tables
FAIR VALUES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
FAIR VALUES [Abstract] | |||||||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (amounts in thousands): | ||||||||||||||||||||
Fair Value Measurement at December 31, 2014 Using | |||||||||||||||||||||
Financial Assets: | Fair Value | Quoted Prices | Significant | Significant Unobservable Inputs | |||||||||||||||||
in Active Markets for Identical Assets | Other Observable Inputs | (Level 3) | |||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 181,673 | $ | 31,115 | $ | 150,558 | $ | - | |||||||||||||
Mortgage-backed securities, residential | 61,660 | - | 61,660 | - | |||||||||||||||||
Collateralized mortgage obligations | 338 | - | 338 | - | |||||||||||||||||
Obligations of states and political subdivisions | 31,451 | - | 31,451 | - | |||||||||||||||||
Corporate bonds and notes | 1,533 | - | 1,533 | - | |||||||||||||||||
SBA loan pools | 1,304 | - | 1,304 | - | |||||||||||||||||
Trust Preferred securities | 2,028 | - | 2,028 | - | |||||||||||||||||
Corporate stocks | 520 | 104 | 416 | - | |||||||||||||||||
Total available for sale securities | $ | 280,507 | $ | 31,219 | $ | 249,288 | $ | - | |||||||||||||
Trading assets | $ | 549 | $ | 549 | $ | - | $ | - | |||||||||||||
Fair Value Measurement at December 31, 2013 Using | |||||||||||||||||||||
Financial Assets: | Fair Value | Quoted Prices | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
in Active Markets for Identical Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Obligations of U.S. Government and U.S. Government sponsored enterprises | $ | 188,106 | $ | 31,262 | $ | 156,844 | $ | - | |||||||||||||
Mortgage-backed securities, residential | 104,356 | - | 104,356 | - | |||||||||||||||||
Collateralized mortgage obligations | 1,015 | - | 1,015 | - | |||||||||||||||||
Obligations of states and political subdivisions | 38,376 | - | 38,376 | - | |||||||||||||||||
Corporate bonds and notes | 2,946 | - | 2,946 | - | |||||||||||||||||
SBA loan pools | 1,488 | - | 1,488 | - | |||||||||||||||||
Trust Preferred securities | 2,034 | - | 2,034 | - | |||||||||||||||||
Corporate stocks | 7,695 | 7,279 | 416 | - | |||||||||||||||||
Total available for sale securities | $ | 346,016 | $ | 38,541 | $ | 307,475 | $ | - | |||||||||||||
Trading assets | $ | 366 | $ | 366 | $ | - | $ | - | |||||||||||||
Reconciliation of All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||
Trust Preferred Securities Available for Sale | Fair Value Measurement | Fair Value Measurement | |||||||||||||||||||
twelve-months ended | twelve-months ended | ||||||||||||||||||||
December 31, 2014 Using | December 31, 2013 Using | ||||||||||||||||||||
Significant Unobservable | Significant Unobservable | ||||||||||||||||||||
Inputs (Level 3) | Inputs (Level 3) | ||||||||||||||||||||
Beginning balance | $ | - | $ | 445,600 | |||||||||||||||||
Total gains/losses (realized/unrealized): | |||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||
Impairment charge on investment securities | - | (29,025 | ) | ||||||||||||||||||
Included in other comprehensive income | - | 183,425 | |||||||||||||||||||
Transfers in and/or out of Level 3 | - | (600,000 | ) | ||||||||||||||||||
Ending balance, December 31 | $ | - | $ | - | |||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value on Non-recurring Basis | Assets and liabilities measured at fair value on a non-recurring basis are summarized below (amounts in thousands): | ||||||||||||||||||||
Fair Value Measurement at December 31, 2014 Using | |||||||||||||||||||||
Financial Assets: | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Impaired Loans: | |||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||
Commercial mortgages | $ | 3,593 | $ | - | $ | - | $ | 2,905 | |||||||||||||
Consumer loans: | |||||||||||||||||||||
Home equity lines and loans | 52 | - | - | 52 | |||||||||||||||||
Total Impaired Loans | $ | 3,645 | $ | - | $ | - | $ | 2,957 | |||||||||||||
Other real estate owned: | |||||||||||||||||||||
Commercial mortgages: | |||||||||||||||||||||
Commercial mortgages | $ | 3,063 | $ | - | $ | - | $ | 3,063 | |||||||||||||
Consumer loans: | |||||||||||||||||||||
Home equity lines and loans | 2 | - | - | 2 | |||||||||||||||||
Total Other Real Estate Owned, net | $ | 3,065 | $ | - | $ | - | $ | 3,065 | |||||||||||||
Fair Value Measurement at December 31, 2013 Using | |||||||||||||||||||||
Financial Assets: | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Impaired Loans: | |||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||
Commercial and industrial | $ | 460 | $ | - | $ | - | $ | 460 | |||||||||||||
Commercial mortgages: | |||||||||||||||||||||
Commercial mortgages | 485 | - | - | 485 | |||||||||||||||||
Consumer loans: | |||||||||||||||||||||
Home equity lines and loans | 54 | - | - | 54 | |||||||||||||||||
Total Impaired Loans | $ | 999 | $ | - | $ | - | $ | 999 | |||||||||||||
Other real estate owned: | |||||||||||||||||||||
Commercial and agricultural: | |||||||||||||||||||||
Commercial and industrial | $ | 101 | $ | - | $ | - | $ | 101 | |||||||||||||
Commercial mortgages: | |||||||||||||||||||||
Commercial mortgages | 266 | - | - | 266 | |||||||||||||||||
Residential mortgages | 106 | - | - | 106 | |||||||||||||||||
Consumer loans: | |||||||||||||||||||||
Home equity lines and loans | 65 | - | - | 65 | |||||||||||||||||
Total Other Real Estate Owned, net | $ | 538 | $ | - | $ | - | $ | 538 | |||||||||||||
Information Related To Level 3 Non-Recurring Fair Value Measurement | The following table presents information related to Level 3 non-recurring fair value measurement at December 31, 2014 and December 31, 2013 (amounts in thousands): | ||||||||||||||||||||
Description | Fair Value at December 31, 2014 | Technique | Unobservable Inputs | ||||||||||||||||||
Impaired loans | $ | 3,645 | Third party real estate and a 100% discount of personal property | 1 | Management discount based on underlying collateral characteristics and market conditions | ||||||||||||||||
OREO | $ | 3,065 | Third party appraisals | 1 | Estimated holding period | ||||||||||||||||
2 | Estimated closing costs | ||||||||||||||||||||
Description | Fair Value at December 31, 2013 | Technique | Unobservable Inputs | ||||||||||||||||||
Impaired loans | $ | 999 | Third party real estate and a 100% discount of personal property | 1 | Management discount based on underlying collateral characteristics and market conditions | ||||||||||||||||
OREO | $ | 538 | Third party appraisals | 1 | Estimated holding period | ||||||||||||||||
2 | Estimated closing costs | ||||||||||||||||||||
Carrying Value and Estimated Fair Value of Other Financial Instruments | The carrying amounts and estimated fair values of other financial instruments, at December 31, 2014 and December 31, 2013, are as follows (amounts in thousands): | ||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||
Financial assets: | Carrying Amount | Quoted Prices | Significant Other Observable Inputs | Significant Unobservable Inputs | Estimated | ||||||||||||||||
in Active Markets for Identical Assets | (Level 2) | (Level 3) | Fair Value (1) | ||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Cash and due from financial institutions | $ | 28,130 | $ | 28,130 | $ | - | $ | - | $ | 28,130 | |||||||||||
Interest-bearing deposits in other financial institutions | 1,033 | 1,033 | - | - | 1,033 | ||||||||||||||||
Trading assets | 549 | 549 | - | - | 549 | ||||||||||||||||
Securities available for sale | 280,507 | 31,219 | 249,288 | - | 280,507 | ||||||||||||||||
Securities held to maturity | 5,831 | - | 6,197 | - | 6,197 | ||||||||||||||||
FHLBNY and FRBNY stock | 5,535 | - | - | - | N/A | ||||||||||||||||
Loans, net | 1,107,888 | - | - | 1,135,590 | 1,135,590 | ||||||||||||||||
Loans held for sale | 665 | - | 665 | - | 665 | ||||||||||||||||
Accrued interest receivable | 4,185 | 145 | 1,295 | 2,745 | 4,185 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Demand, savings, and insured money market accounts | $ | 1,068,171 | $ | 1,068,171 | $ | - | $ | - | $ | 1,068,171 | |||||||||||
Time deposits | 211,843 | - | 212,397 | - | 212,397 | ||||||||||||||||
Securities sold under agreements to repurchase | 29,652 | - | 30,853 | - | 30,853 | ||||||||||||||||
FHLBNY overnight advances | 30,830 | - | 30,832 | - | 30,832 | ||||||||||||||||
FHLBNY term advances | 19,310 | - | 20,235 | - | 20,235 | ||||||||||||||||
Accrued interest payable | 237 | 15 | 222 | - | 237 | ||||||||||||||||
(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||||||
Financial Assets: | Carrying Amount | Quoted Prices | Significant Other Observable Inputs | Significant Unobservable Inputs | Estimated Fair Value (1) | ||||||||||||||||
in Active Markets | (Level 2) | (Level 3) | |||||||||||||||||||
for Identical Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Cash and due from financial institutions | $ | 31,600 | $ | 31,600 | $ | - | $ | - | $ | 31,600 | |||||||||||
Interest-bearing deposits in other financial institutions | 20,009 | 20,009 | - | - | 20,009 | ||||||||||||||||
Trading assets | 366 | 366 | - | - | 366 | ||||||||||||||||
Securities available for sale | 346,016 | 38,541 | 307,475 | - | 346,016 | ||||||||||||||||
Securities held to maturity | 6,495 | - | 6,930 | - | 6,930 | ||||||||||||||||
FHLBNY and FRBNY stock | 4,482 | - | - | - | N/A | ||||||||||||||||
Loans, net | 983,090 | - | - | 1,008,826 | 1,008,826 | ||||||||||||||||
Loans held for sale | 695 | - | 695 | - | 695 | ||||||||||||||||
Accrued interest receivable | 4,166 | 145 | 1,468 | 2,553 | 4,166 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Demand, savings, and insured money market accounts | $ | 1,021,764 | $ | 1,021,764 | $ | - | $ | - | $ | 1,021,764 | |||||||||||
Time deposits | 244,492 | - | 245,482 | - | 245,482 | ||||||||||||||||
Securities sold under agreements to repurchase | 32,701 | - | 33,636 | - | 33,636 | ||||||||||||||||
FHLBNY Advances | 25,243 | - | 26,064 | - | 26,064 | ||||||||||||||||
Accrued interest payable | 336 | 15 | 170 | 151 | 336 | ||||||||||||||||
(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
REGULATORY_CAPITAL_REQUIREMENT1
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
REGULATORY CAPITAL REQUIREMENTS [Abstract] | |||||||||||||||||||||||||
Actual Capital Amounts and Ratios of Corporation and Bank | The actual capital amounts and ratios of the Corporation and the Bank are presented in the following tables (amounts in thousands): | ||||||||||||||||||||||||
Actual | Required To Be Adequately Capitalized | Required To Be Well | |||||||||||||||||||||||
Capitalized | |||||||||||||||||||||||||
As of December 31, 2014 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 129,211 | 11.84 | % | $ | 87,271 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 123,685 | 11.35 | % | $ | 87,178 | 8 | % | $ | 108,972 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 115,483 | 10.59 | % | $ | 43,636 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 110,014 | 10.1 | % | $ | 43,589 | 4 | % | $ | 65,383 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets): | |||||||||||||||||||||||||
Consolidated | $ | 115,483 | 7.78 | % | $ | 44,556 | 3 | % | N/A | N/A | |||||||||||||||
Bank | $ | 110,014 | 7.41 | % | $ | 44,512 | 3 | % | $ | 74,187 | 5 | % | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 126,299 | 12.1 | % | $ | 83,484 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 121,222 | 11.63 | % | $ | 83,369 | 8 | % | $ | 104,211 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 110,260 | 10.57 | % | $ | 41,742 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 105,239 | 10.1 | % | $ | 41,684 | 4 | % | $ | 62,527 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets): | |||||||||||||||||||||||||
Consolidated | $ | 110,260 | 8.08 | % | $ | 40,940 | 3 | % | N/A | N/A | |||||||||||||||
Bank | $ | 105,239 | 7.72 | % | $ | 40,900 | 3 | % | $ | 68,167 | 5 | % |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS [Abstract] | |||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income or Loss by Component, Net of Tax | The following is a summary of the changes in accumulated other comprehensive income or loss by component, net of tax, for the periods indicated (amounts in thousands): | ||||||||||||
Unrealized Gains and Losses on Securities Available for Sale | Defined Benefit and Other Benefit Plans | Total | |||||||||||
Balance at December 31, 2013 | $ | 6,043 | $ | (5,888 | ) | $ | 155 | ||||||
Other comprehensive income (loss) before reclassification | 146 | (5,221 | ) | (5,075 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (4,229 | ) | 364 | (3,865 | ) | ||||||||
Net current period other comprehensive loss | (4,083 | ) | (4,857 | ) | (8,940 | ) | |||||||
Balance at December 31, 2014 | $ | 1,960 | $ | (10,745 | ) | $ | (8,785 | ) | |||||
Unrealized Gains and Losses on Securities Available for Sale | Defined Benefit and Other Benefit Plans | Total | |||||||||||
Balance at December 31, 2012 | $ | 8,023 | $ | (10,830 | ) | $ | (2,807 | ) | |||||
Other comprehensive income (loss) before reclassification | (1,988 | ) | 3,994 | 2,006 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 8 | 948 | 956 | ||||||||||
Net current period other comprehensive loss | (1,980 | ) | 4,942 | 2,962 | |||||||||
Balance at December 31, 2013 | $ | 6,043 | $ | (5,888 | ) | $ | 155 | ||||||
Reclassification Out of Accumulated Other Comprehensive Income | The following is the reclassification out of accumulated other comprehensive income (loss) for the periods indicated (amounts in thousands): | ||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Year Ended December 31, | Affected Line Item | |||||||||||
in the Statement Where | |||||||||||||
Net Income is Presented | |||||||||||||
2014 | 2013 | ||||||||||||
Unrealized gains and losses on securities available for sale: | |||||||||||||
Reclassification adjustment for other-than-temporary losses realized in income | $ | - | $ | 29 | Total impairment losses | ||||||||
Realized gains on securities available for sale | (6,869 | ) | (16 | ) | Net gains on securities transactions | ||||||||
Tax effect | 2,640 | (5 | ) | Income tax benefit (expense) | |||||||||
Net of tax | (4,229 | ) | 8 | ||||||||||
Amortization of defined pension plan and other benefit plan items: | |||||||||||||
Prior service costs (a) | (90 | ) | (83 | ) | Pension and other employee benefits | ||||||||
Actuarial losses (a) | 681 | 1,624 | Pension and other employee benefits | ||||||||||
Tax effect | (227 | ) | (593 | ) | Income tax benefit | ||||||||
Net of tax | 364 | 948 | |||||||||||
Total reclassification for the period, net of tax | $ | $ | (3,865 | ) | $ | 956 | |||||||
(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other benefit plan costs (see Note 11 for additional information). |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SEGMENT REPORTING [Abstract] | |||||||||||||||||
Summarized Financial Information Concerning Reportable Segments And Reconciliation To Consolidated Results | Accounting policies for the segments are the same as those described in Note 1. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment. Holding company amounts are the primary differences between segment amounts and consolidated totals, and are reflected in the Holding Company and Other column below, along with amounts to eliminate transactions between segments (amounts in thousands): | ||||||||||||||||
Year ended December 31, 2014 | Core Banking | Wealth Management Group | Holding Company and Other | Consolidated Totals | |||||||||||||
Net interest income | $ | 49,556 | $ | - | $ | 12 | $ | 49,568 | |||||||||
Provision for loan losses | 3,981 | - | - | 3,981 | |||||||||||||
Net interest income after provision for loan losses | 45,575 | - | 12 | 45,587 | |||||||||||||
Other operating income | 18,186 | 7,746 | 824 | 26,756 | |||||||||||||
Legal settlements | - | 4,250 | - | 4,250 | |||||||||||||
Other operating expenses | 49,997 | 5,355 | 875 | 56,227 | |||||||||||||
Income (loss) before income tax expense | 13,764 | (1,859 | ) | (39 | ) | 11,866 | |||||||||||
Income tax expense (benefit) | 4,507 | (715 | ) | (83 | ) | 3,709 | |||||||||||
Segment net income (loss) | $ | 9,257 | $ | (1,144 | ) | $ | 44 | $ | 8,157 | ||||||||
Segment assets | $ | 1,518,584 | $ | 4,357 | $ | 1,598 | $ | 1,524,539 | |||||||||
Year ended December 31, 2013 | Core Banking | Wealth Management Group | Holding Company and Other | Consolidated Totals | |||||||||||||
Net interest income | $ | 46,621 | $ | - | $ | 10 | $ | 46,631 | |||||||||
Provision for loan losses | 2,755 | - | - | 2,755 | |||||||||||||
Net interest income after provision for loan losses | 43,866 | - | 10 | 43,876 | |||||||||||||
Other operating income | 9,913 | 7,344 | 820 | 18,077 | |||||||||||||
Other operating expenses | 43,136 | 5,480 | 784 | 49,400 | |||||||||||||
Income before income tax expense | 10,643 | 1,864 | 46 | 12,553 | |||||||||||||
Income tax expense (benefit) | 3,139 | 717 | (34 | ) | 3,822 | ||||||||||||
Segment net income | $ | 7,504 | $ | 1,147 | $ | 80 | $ | 8,731 | |||||||||
Segment assets | $ | 1,469,482 | $ | 4,943 | $ | 1,718 | $ | 1,476,143 | |||||||||
Year ended December 31, 2012 | Core Banking | Wealth Management Group | Holding Company and Other | Consolidated Totals | |||||||||||||
Net interest income | $ | 46,834 | $ | - | $ | 8 | $ | 46,842 | |||||||||
Provision for loan losses | 828 | - | - | 828 | |||||||||||||
Net interest income after provision for loan losses | 46,006 | - | 8 | 46,014 | |||||||||||||
Other operating income | 9,597 | 6,827 | 764 | 17,188 | |||||||||||||
Other operating expenses | 40,550 | 5,389 | 856 | 46,795 | |||||||||||||
Income (loss) before income tax expense | 15,053 | 1,438 | (84 | ) | 16,407 | ||||||||||||
Income tax expense (benefit) | 4,954 | 553 | (122 | ) | 5,385 | ||||||||||||
Segment net income | $ | 10,099 | $ | 885 | $ | 38 | $ | 11,022 | |||||||||
Segment assets | $ | 1,240,752 | $ | 5,156 | $ | 2,252 | $ | 1,248,160 |
BRANCH_ACQUISITION_Tables
BRANCH ACQUISITION (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
BRANCH ACQUISITION [Abstract] | |||||
Schedule of Assets Acquired and Deposits Assumed in Transaction | The assets acquired and deposits assumed in the transaction were recorded at their estimated fair values as follows: | ||||
Cash, net | $ | 170,904 | |||
Loans | 1,240 | ||||
Bank premises and equipment | 4,081 | ||||
Core deposit intangible asset | 2,155 | ||||
Other assets | 350 | ||||
Total assets acquired | $ | 178,730 | |||
Deposits assumed | $ | 177,749 | |||
Time deposit premium | 263 | ||||
Other liabilities | 718 | ||||
Total liabilities assumed | $ | 178,730 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2008 | Nov. 30, 2013 | Dec. 31, 2013 | |
Segment | Branch | Branch | ||
LOANS [Abstract] | ||||
Period of delinquency after which a loan is placed on non-accrual status | 90 days | |||
Number of consecutive months for which loans remain current before non-accrual loans are returned to accrual status | 6 months | |||
Rolling historical period of net losses used in evaluating general component of valuation allowance for loans not impaired but classified as substandard and special mention | 5 years | |||
Number of most recent years of actual loss history used in determining historical loss experience for all other unclassified loans | 2 years | |||
WEALTH MANAGEMENT GROUP FEE INCOME [Abstract] | ||||
Unaudited market value of trust assets under administration | $1,956,000,000 | $1,888,000,000 | ||
Segment Reporting [Abstract] | ||||
Number of operating segments | 2 | |||
M&T Bank Branch Offices [Member] | ||||
Intangible Assets [Abstract] | ||||
Number of branches acquired | 3 | |||
Intangible assets acquired | 21,000 | |||
Partners Trust Bank [Member] | Trust Business [Member] | ||||
Intangible Assets [Abstract] | ||||
Intangible assets acquired | 2,400,000 | |||
Expected useful life | 15 years | |||
Canton Bancorp, Inc. [Member] | ||||
Intangible Assets [Abstract] | ||||
Intangible assets acquired | 8,000 | |||
Fort Orange Financial Corp [Member] | ||||
Intangible Assets [Abstract] | ||||
Intangible assets acquired | 1,100,000 | |||
Expected useful life | 10 years | |||
Bank of America Branch Offices [Member] | ||||
Intangible Assets [Abstract] | ||||
Number of branches acquired | 6 | |||
Intangible assets acquired | 1,600,000 | |||
Bank of America Branch Offices [Member] | Core Deposit Intangibles [Member] | ||||
Intangible Assets [Abstract] | ||||
Expected useful life | 7 years | |||
MT Branch Offices and Canton Bancorp, Inc. Member] [Member] | Core Deposit Intangibles [Member] | ||||
Intangible Assets [Abstract] | ||||
Expected useful life | 7 years 3 months | |||
MT Branch Offices and Canton Bancorp, Inc. Member] [Member] | Customer Relationship Intangibles [Member] | ||||
Intangible Assets [Abstract] | ||||
Expected useful life | 7 years 3 months | |||
Non-qualified Deferred Compensation Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Maximum annual installments period | 10 years | |||
Directors' Compensation Plan [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized per calendar year (in shares) | 20,000 | |||
Required service period | 12 months | |||
Trading days period | 30 days | |||
Incentive Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized per calendar year (in shares) | 10,000 | |||
Cash compensation | $300,000 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized per calendar year (in shares) | 15,000 | |||
Age limit for forfeiture of stock award | 65 years | |||
Restricted Stock [Member] | Awards Vesting Each Year Commencing with First Anniversary Date of Award [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage (in hundredths) | 20.00% | |||
Restricted Stock [Member] | Awards Vesting on Fifth Anniversary Date [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage (in hundredths) | 100.00% | |||
Defined Contribution Profit Sharing, Savings and Investment Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Number of annual service hours required for eligibility (in hours) | 1000 hours | |||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Normal retirement benefit as percentage of final average compensation (in hundredths) | 1.20% | |||
Number of consecutive years considered in final average compensation | 5 years | |||
Number of prior years considered in final average compensation | 10 years | |||
Maximum service period | 25 years | |||
Normal retirement additional benefit (in hundredths) | 1.00% | |||
Maximum additional service years | 10 years | |||
Percentage of average monthly compensation in excess of covered compensation for each year of credited service (in hundredths) | 0.65% | |||
Maximum period of credited service | 35 years | |||
Covered compensation period | 35 years | |||
Defined Benefit Health Care Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum eligible age | 55 years | |||
Contribution percentage (in hundredths) | 40.00% | |||
Retiree premium percentage (in hundredths) | 100.00% | |||
Cost of coverage contribution (in hundredths) | 50.00% | |||
Contribution percentage after amendment (in hundredths) | 50.00% | |||
Contribution cost percentage (in hundredths) | 50.00% | |||
Minimum [Member] | Defined Benefit Health Care Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Retiree age group range | 55 years | |||
Maximum [Member] | Defined Benefit Health Care Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Retiree age group range | 65 years | |||
Buildings [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 15 years | |||
Buildings [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 50 years | |||
Equipment and Furniture [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 3 years | |||
Equipment and Furniture [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 10 years |
RESTRICTIONS_ON_CASH_AND_DUE_F1
RESTRICTIONS ON CASH AND DUE FROM BANK ACCOUNTS (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
RESTRICTIONS ON CASH AND DUE FROM BANK ACCOUNTS [Abstract] | |
Reserve requirement | $1.40 |
SECURITIES_SECURITIES_AVAILABL
SECURITIES, SECURITIES AVAILABLE FOR SALE (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | $277,323 | $336,199 | |
Estimated Fair Value | 280,507 | 346,016 | |
Unrealized Gains | 3,400 | 11,506 | |
Unrealized Losses | 216 | 1,689 | |
Amortized Cost [Abstract] | |||
Within One Year | 37,087 | ||
After One, But Within Five Years | 172,100 | ||
After Five, But Within Ten Years | 5,433 | ||
After Ten Years | 0 | ||
Total | 277,038 | ||
Fair Value [Abstract] | |||
Within One Year | 37,552 | ||
After One, But Within Five Years | 173,534 | ||
After Five, But Within Ten Years | 5,599 | ||
After Ten Years | 0 | ||
Total | 279,987 | ||
Proceeds from sales and calls of securities resulting in gains or losses [Abstract] | |||
Proceeds | 36,258 | 2,650 | 26,210 |
Gross gains | 6,869 | 16 | 301 |
Tax expense | 2,641 | 6 | 116 |
Obligations of U.S. Government and U.S. Government Sponsored Enterprises [Member] | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 180,535 | 187,098 | |
Estimated Fair Value | 181,673 | 188,106 | |
Unrealized Gains | 1,300 | 1,914 | |
Unrealized Losses | 162 | 906 | |
Mortgage-Backed Securities, Residential [Member] | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 60,787 | 104,069 | |
Estimated Fair Value | 61,660 | 104,356 | |
Unrealized Gains | 892 | 1,037 | |
Unrealized Losses | 19 | 750 | |
Amortized Cost [Abstract] | |||
Without Single Maturity Date | 60,787 | ||
Fair Value [Abstract] | |||
Without Single Maturity Date | 61,660 | ||
Collateralized Mortgage Obligations [Member] | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 335 | 1,001 | |
Estimated Fair Value | 338 | 1,015 | |
Unrealized Gains | 3 | 14 | |
Unrealized Losses | 0 | 0 | |
Amortized Cost [Abstract] | |||
Without Single Maturity Date | 335 | ||
Fair Value [Abstract] | |||
Without Single Maturity Date | 338 | ||
Obligations of States and Political Subdivisions [Member] | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 30,677 | 37,339 | |
Estimated Fair Value | 31,451 | 38,376 | |
Unrealized Gains | 802 | 1,059 | |
Unrealized Losses | 28 | 22 | |
Corporate Bonds and Notes [Member] | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 1,502 | 2,879 | |
Estimated Fair Value | 1,533 | 2,946 | |
Unrealized Gains | 35 | 76 | |
Unrealized Losses | 4 | 9 | |
SBA Loan Pools [Member] | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 1,296 | 1,471 | |
Estimated Fair Value | 1,304 | 1,488 | |
Unrealized Gains | 11 | 17 | |
Unrealized Losses | 3 | 0 | |
Amortized Cost [Abstract] | |||
Without Single Maturity Date | 1,296 | ||
Fair Value [Abstract] | |||
Without Single Maturity Date | 1,304 | ||
Trust Preferred Securities [Member] | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 1,906 | 1,898 | |
Estimated Fair Value | 2,028 | 2,034 | |
Unrealized Gains | 122 | 136 | |
Unrealized Losses | 0 | 0 | |
Corporate Stocks [Member] | |||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||
Amortized Cost | 285 | 444 | |
Estimated Fair Value | 520 | 7,695 | |
Unrealized Gains | 235 | 7,253 | |
Unrealized Losses | $0 | $2 |
SECURITIES_SECURITIES_HELD_TO_
SECURITIES, SECURITIES HELD TO MATURITY (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized cost and estimated fair value of securities held to maturity [Abstract] | ||
Amortized Cost | $5,831 | $6,495 |
Estimated Fair Value | 6,197 | 6,930 |
Unrealized Gains | 366 | 435 |
Unrealized Losses | 0 | 0 |
Amortized Cost [Abstract] | ||
Within One Year | 2,629 | |
After One, But Within Five Years | 2,199 | |
After Five, But Within Ten Years | 1,003 | |
After Ten Years | 0 | |
Amortized Cost | 5,831 | 6,495 |
Fair Value [Abstract] | ||
Within One Year | 2,658 | |
After One, But Within Five Years | 2,390 | |
After Five, But Within Ten Years | 1,149 | |
After Ten Years | 0 | |
Fair Value | 6,197 | 6,930 |
Obligations of States and Political Subdivisions [Member] | ||
Amortized cost and estimated fair value of securities held to maturity [Abstract] | ||
Amortized Cost | 5,175 | 5,472 |
Estimated Fair Value | 5,535 | 5,891 |
Unrealized Gains | 360 | 419 |
Unrealized Losses | 0 | 0 |
Amortized Cost [Abstract] | ||
Amortized Cost | 5,175 | 5,472 |
Fair Value [Abstract] | ||
Fair Value | 5,535 | 5,891 |
Time Deposits with Other Financial Institutions [Member] | ||
Amortized cost and estimated fair value of securities held to maturity [Abstract] | ||
Amortized Cost | 656 | 1,023 |
Estimated Fair Value | 662 | 1,039 |
Unrealized Gains | 6 | 16 |
Unrealized Losses | 0 | 0 |
Amortized Cost [Abstract] | ||
Amortized Cost | 656 | 1,023 |
Fair Value [Abstract] | ||
Fair Value | $662 | $1,039 |
SECURITIES_INVESTMENT_SECURITI
SECURITIES, INVESTMENT SECURITIES AVAILABLE FOR SALE IN CONTINUOUS UNREALIZED LOSS POSITION (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract] | ||
Less than 12 months | $73,464 | $151,782 |
12 months or longer | 6,560 | 1,980 |
Total | 80,024 | 153,762 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than 12 months | 150 | 1,648 |
12 months or longer | 66 | 41 |
Total | 216 | 1,689 |
Obligations of U.S. Government and U.S. Government Sponsored Enterprises [Member] | ||
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract] | ||
Less than 12 months | 57,512 | 83,840 |
12 months or longer | 4,945 | 1,978 |
Total | 62,457 | 85,818 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than 12 months | 108 | 867 |
12 months or longer | 54 | 39 |
Total | 162 | 906 |
Mortgage-Backed Securities, Residential [Member] | ||
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract] | ||
Less than 12 months | 11,051 | 63,115 |
12 months or longer | 0 | 0 |
Total | 11,051 | 63,115 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than 12 months | 19 | 750 |
12 months or longer | 0 | 0 |
Total | 19 | 750 |
Obligations of States and Political Subdivisions [Member] | ||
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract] | ||
Less than 12 months | 4,625 | 4,589 |
12 months or longer | 1,056 | 0 |
Total | 5,681 | 4,589 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than 12 months | 22 | 22 |
12 months or longer | 6 | 0 |
Total | 28 | 22 |
Corporate Bonds and Notes [Member] | ||
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract] | ||
Less than 12 months | 0 | 238 |
12 months or longer | 243 | 0 |
Total | 243 | 238 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than 12 months | 0 | 9 |
12 months or longer | 4 | 0 |
Total | 4 | 9 |
Corporate Stocks [Member] | ||
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract] | ||
Less than 12 months | 0 | |
12 months or longer | 2 | |
Total | 2 | |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than 12 months | 0 | |
12 months or longer | 2 | |
Total | 2 | |
SBA Loan Pools [Member] | ||
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract] | ||
Less than 12 months | 276 | |
12 months or longer | 316 | |
Total | 592 | |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract] | ||
Less than 12 months | 1 | |
12 months or longer | 2 | |
Total | $3 |
SECURITIES_OTHER_THAN_TEMPORAR
SECURITIES, OTHER THAN TEMPORARY IMPAIRMENT (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 |
Security | |||||
Other than temporary impairment [Abstract] | |||||
Amortized cost of securities sold | $277,038 | ||||
Proceeds from sale of securities | 36,258 | 2,650 | 26,210 | ||
Other than temporary impairment credit losses recognized in earnings [Roll Forward] | |||||
Beginning balance | 1,939 | 3,506 | 3,506 | 1,939 | |
Amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | 0 | 0 | 0 | ||
Additions/Subtractions [Abstract] | |||||
Amounts related to securities for which the company intends to sell or that it will be more likely than not that the company will be required to sell prior to recovery of amortized cost basis | 0 | 0 | 0 | ||
Reductions for increase in cash flows expected to be collected that are recognized over the remaining life of the security | 0 | 0 | 0 | ||
Reductions for previous credit losses realized on securities sold during the year | 0 | -1,596 | 0 | ||
Reductions for previous credit losses realized in securities liquidated during the year | -1,939 | 0 | 0 | ||
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | 0 | 29 | 0 | ||
Ending balance | 0 | 1,939 | 3,506 | 1,939 | |
Collateralized Debt Obligations [Member] | |||||
Other than temporary impairment [Abstract] | |||||
Number of securities sold | 1 | ||||
Amortized cost of securities sold | 600 | 600 | |||
Proceeds from sale of securities | 600 | ||||
Additional credit loss in OTTI recognized | 29 | ||||
Additions/Subtractions [Abstract] | |||||
Income from liquidation of debt securities | $500 |
SECURITIES_SECURITIES_PLEDGED_
SECURITIES, SECURITIES PLEDGED (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
SECURITIES [Abstract] | ||
Fair value of securities pledged to secure public funds on deposit or for other purposes | $190,700,000 | $188,900,000 |
Securities pledged to secure securities sold under agreements to repurchase [Abstract] | ||
Amortized Cost | 44,177,000 | 45,753,000 |
Estimated Fair Value | 45,039,000 | 46,941,000 |
Equity method investments | 700,000 | 1,000,000 |
Obligations of U.S. Government and U.S. Government Sponsored Enterprises [Member] | ||
Securities pledged to secure securities sold under agreements to repurchase [Abstract] | ||
Amortized Cost | 36,195,000 | 33,746,000 |
Estimated Fair Value | 36,641,000 | 34,369,000 |
Mortgage-Backed Securities, Residential [Member] | ||
Securities pledged to secure securities sold under agreements to repurchase [Abstract] | ||
Amortized Cost | 7,934,000 | 11,802,000 |
Estimated Fair Value | 8,350,000 | 12,365,000 |
Collateralized Mortgage Obligations [Member] | ||
Securities pledged to secure securities sold under agreements to repurchase [Abstract] | ||
Amortized Cost | 48,000 | 205,000 |
Estimated Fair Value | $48,000 | $207,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | $1,121,574,000 | $995,866,000 |
Interest receivable on loans | 2,780,000 | 2,597,000 |
Total | 1,124,354,000 | 998,463,000 |
Residential mortgages held for sale | 665,000 | 695,000 |
Commercial and Agricultural [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total | 166,820,000 | 145,732,000 |
Commercial and Industrial [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | 165,385,000 | 144,787,000 |
Total | 165,797,000 | 145,155,000 |
Agricultural [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | 1,021,000 | 576,000 |
Total | 1,023,000 | 577,000 |
Commercial Mortgages [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total | 453,719,000 | 374,096,000 |
Construction [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | 54,831,000 | 27,440,000 |
Total | 54,967,000 | 27,510,000 |
Commercial Mortgages [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | 397,762,000 | 345,707,000 |
Total | 398,752,000 | 346,586,000 |
Residential Mortgages [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | 196,809,000 | 195,997,000 |
Total | 197,287,000 | 196,525,000 |
Residential mortgages held for sale | 700,000 | 700,000 |
Loans pledged as collateral | 152,700,000 | 145,100,000 |
Consumer Loans [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total | 306,528,000 | 282,110,000 |
Credit Cards [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | 1,654,000 | 1,756,000 |
Total | 1,654,000 | 1,757,000 |
Home Equity Lines and Loans [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | 99,354,000 | 95,905,000 |
Total | 99,591,000 | 96,134,000 |
Indirect Consumer Loans [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | 184,763,000 | 164,846,000 |
Total | 185,217,000 | 165,294,000 |
Direct Consumer Loans [Member] | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees | 19,995,000 | 18,852,000 |
Total | $20,066,000 | $18,925,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES, ALLOWANCES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses, by portfolio segment [Roll Forward] | |||
Beginning balance: | $12,776 | $10,433 | $9,659 |
Reclassification of acquired loan discount | 124 | ||
Charge Offs | -4,278 | -1,493 | -1,273 |
Recoveries | 1,207 | 1,081 | 1,095 |
Net recoveries (charge offs) | -3,071 | -412 | -178 |
Provision | 3,981 | 2,755 | 828 |
Ending balance | 13,686 | 12,776 | 10,433 |
Ending allowance balance attributable to loans [Abstract] | |||
Individually evaluated for impairment | 1,235 | 1,046 | |
Collectively evaluated for impairment | 12,357 | 10,340 | |
Loans acquired with deteriorated credit quality | 94 | 1,390 | |
Total ending allowance balance | 13,686 | 12,776 | |
Loans [Abstract] | |||
Loans individually evaluated for impairment | 15,904 | 13,897 | |
Loans collectively evaluated for impairment | 1,105,819 | 974,870 | |
Loans acquired with deteriorated credit quality | 2,631 | 9,696 | |
Total | 1,124,354 | 998,463 | |
Commercial and Agricultural [Member] | |||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||
Beginning balance: | 1,979 | 1,708 | 3,143 |
Reclassification of acquired loan discount | 74 | ||
Charge Offs | -444 | -186 | -181 |
Recoveries | 385 | 537 | 802 |
Net recoveries (charge offs) | -59 | 351 | 621 |
Provision | -460 | -80 | -2,130 |
Ending balance | 1,460 | 1,979 | 1,708 |
Ending allowance balance attributable to loans [Abstract] | |||
Individually evaluated for impairment | 89 | 576 | |
Collectively evaluated for impairment | 1,335 | 1,403 | |
Loans acquired with deteriorated credit quality | 36 | 0 | |
Total ending allowance balance | 1,460 | 1,979 | |
Loans [Abstract] | |||
Loans individually evaluated for impairment | 1,452 | 2,946 | |
Loans collectively evaluated for impairment | 164,748 | 142,108 | |
Loans acquired with deteriorated credit quality | 620 | 678 | |
Total | 166,820 | 145,732 | |
Commercial Mortgages [Member] | |||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||
Beginning balance: | 6,243 | 4,428 | 2,570 |
Reclassification of acquired loan discount | 50 | ||
Charge Offs | -2,229 | -44 | -335 |
Recoveries | 156 | 98 | 55 |
Net recoveries (charge offs) | -2,073 | 54 | -280 |
Provision | 2,156 | 1,761 | 2,088 |
Ending balance | 6,326 | 6,243 | 4,428 |
Ending allowance balance attributable to loans [Abstract] | |||
Individually evaluated for impairment | 1,145 | 466 | |
Collectively evaluated for impairment | 5,145 | 4,407 | |
Loans acquired with deteriorated credit quality | 36 | 1,370 | |
Total ending allowance balance | 6,326 | 6,243 | |
Loans [Abstract] | |||
Loans individually evaluated for impairment | 13,712 | 10,703 | |
Loans collectively evaluated for impairment | 438,246 | 354,636 | |
Loans acquired with deteriorated credit quality | 1,761 | 8,757 | |
Total | 453,719 | 374,096 | |
Residential Mortgages [Member] | |||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||
Beginning balance: | 1,517 | 1,565 | 1,310 |
Reclassification of acquired loan discount | 0 | ||
Charge Offs | -97 | -124 | -83 |
Recoveries | 32 | 65 | 0 |
Net recoveries (charge offs) | -65 | -59 | -83 |
Provision | 120 | 11 | 338 |
Ending balance | 1,572 | 1,517 | 1,565 |
Ending allowance balance attributable to loans [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,550 | 1,497 | |
Loans acquired with deteriorated credit quality | 22 | 20 | |
Total ending allowance balance | 1,572 | 1,517 | |
Loans [Abstract] | |||
Loans individually evaluated for impairment | 254 | 117 | |
Loans collectively evaluated for impairment | 196,783 | 196,147 | |
Loans acquired with deteriorated credit quality | 250 | 261 | |
Total | 197,287 | 196,525 | |
Consumer Loans [Member] | |||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||
Beginning balance: | 3,037 | 2,706 | 2,193 |
Reclassification of acquired loan discount | 0 | ||
Charge Offs | -1,508 | -1,139 | -674 |
Recoveries | 634 | 381 | 238 |
Net recoveries (charge offs) | -874 | -758 | -436 |
Provision | 2,165 | 1,089 | 949 |
Ending balance | 4,328 | 3,037 | 2,706 |
Ending allowance balance attributable to loans [Abstract] | |||
Individually evaluated for impairment | 1 | 4 | |
Collectively evaluated for impairment | 4,327 | 3,033 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Total ending allowance balance | 4,328 | 3,037 | |
Loans [Abstract] | |||
Loans individually evaluated for impairment | 486 | 131 | |
Loans collectively evaluated for impairment | 306,042 | 281,979 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Total | 306,528 | 282,110 | |
Unallocated [Member] | |||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||
Beginning balance: | 0 | 26 | 443 |
Reclassification of acquired loan discount | 0 | ||
Charge Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries (charge offs) | 0 | 0 | 0 |
Provision | 0 | -26 | -417 |
Ending balance | $0 | $0 | $26 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES, IMPAIRED LOANS (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Unpaid Principal Balance [Abstract] | ||||||
Total | $16,124 | $13,875 | ||||
Recorded Investment [Abstract] | ||||||
Total | 15,904 | 13,897 | ||||
Allowance for Loan Losses Allocated | 1,235 | 1,046 | ||||
Average Recorded Investment [Abstract] | ||||||
Total | 13,512 | 12,768 | 5,451 | |||
Interest Income Recognized [Abstract] | ||||||
Total | 453 | [1] | 421 | [1] | 12 | [1] |
Commercial and Industrial [Member] | ||||||
Unpaid Principal Balance [Abstract] | ||||||
With no related allowance recorded | 1,359 | 1,906 | ||||
With an allowance recorded | 89 | 1,037 | ||||
Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 1,364 | 1,909 | ||||
With an allowance recorded | 89 | 1,037 | ||||
Allowance for Loan Losses Allocated | 89 | 576 | ||||
Average Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 1,463 | 1,605 | 481 | |||
With an allowance recorded | 502 | 719 | 1,831 | |||
Interest Income Recognized [Abstract] | ||||||
With no related allowance recorded | 40 | [1] | 71 | [1] | 1 | [1] |
With an allowance recorded | 0 | [1] | 0 | [1] | 0 | [1] |
Construction [Member] | ||||||
Unpaid Principal Balance [Abstract] | ||||||
With no related allowance recorded | 1,927 | 2,329 | ||||
Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 1,910 | 2,319 | ||||
Average Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 2,104 | 3,364 | 73 | |||
With an allowance recorded | 0 | 0 | 4 | |||
Interest Income Recognized [Abstract] | ||||||
With no related allowance recorded | 102 | [1] | 95 | [1] | 1 | [1] |
With an allowance recorded | 0 | [1] | 0 | [1] | 0 | [1] |
Commercial Mortgages [Member] | ||||||
Unpaid Principal Balance [Abstract] | ||||||
With no related allowance recorded | 7,803 | 7,406 | ||||
With an allowance recorded | 4,210 | 951 | ||||
Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 7,708 | 7,439 | ||||
With an allowance recorded | 4,094 | 945 | ||||
Allowance for Loan Losses Allocated | 1,145 | 466 | ||||
Average Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 7,492 | 5,991 | 1,990 | |||
With an allowance recorded | 1,611 | 867 | 872 | |||
Interest Income Recognized [Abstract] | ||||||
With no related allowance recorded | 259 | [1] | 249 | [1] | 10 | [1] |
With an allowance recorded | 41 | [1] | 0 | [1] | 0 | [1] |
Residential Mortgages [Member] | ||||||
Unpaid Principal Balance [Abstract] | ||||||
With no related allowance recorded | 253 | 117 | ||||
Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 253 | 117 | ||||
Average Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 141 | 125 | 106 | |||
With an allowance recorded | 0 | 0 | 64 | |||
Interest Income Recognized [Abstract] | ||||||
With no related allowance recorded | 1 | [1] | 0 | [1] | 0 | [1] |
With an allowance recorded | 0 | [1] | 0 | [1] | 0 | [1] |
Home Equity Lines and Loans [Member] | ||||||
Unpaid Principal Balance [Abstract] | ||||||
With no related allowance recorded | 429 | 71 | ||||
With an allowance recorded | 54 | 58 | ||||
Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 432 | 73 | ||||
With an allowance recorded | 54 | 58 | ||||
Allowance for Loan Losses Allocated | 1 | 4 | ||||
Average Recorded Investment [Abstract] | ||||||
With no related allowance recorded | 143 | 47 | 30 | |||
With an allowance recorded | 56 | 47 | 0 | |||
Interest Income Recognized [Abstract] | ||||||
With no related allowance recorded | 6 | [1] | 2 | [1] | 0 | [1] |
With an allowance recorded | 4 | [1] | 3 | [1] | 0 | [1] |
Direct Consumer Loans [Member] | ||||||
Average Recorded Investment [Abstract] | ||||||
With an allowance recorded | 0 | 3 | 0 | |||
Interest Income Recognized [Abstract] | ||||||
With an allowance recorded | $0 | [1] | $0 | [1] | $0 | [1] |
[1] | Cash basis interest income approximates interest income recognized. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES, RECEIVABLES PAST DUE (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | $1,103,760 | $970,708 | ||
30-89 Days Past Due | 8,731 | 8,069 | ||
90 Days or more Past Due and accruing | 1,454 | 1,473 | ||
Loans acquired with deteriorated credit quality | 2,631 | 9,696 | ||
Non-Accrual | 7,778 | [1] | 8,517 | [2] |
Total | 1,124,354 | 998,463 | ||
Commercial and Agricultural [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Loans acquired with deteriorated credit quality | 620 | 678 | ||
Total | 166,820 | 145,732 | ||
Commercial and Industrial [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | 164,109 | 143,100 | ||
30-89 Days Past Due | 756 | 29 | ||
90 Days or more Past Due and accruing | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 620 | 678 | ||
Non-Accrual | 312 | [1] | 1,348 | [2] |
Total | 165,797 | 145,155 | ||
Agricultural [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | 1,023 | 577 | ||
30-89 Days Past Due | 0 | 0 | ||
90 Days or more Past Due and accruing | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Non-Accrual | 0 | [1] | 0 | [2] |
Total | 1,023 | 577 | ||
Commercial Mortgages [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Loans acquired with deteriorated credit quality | 1,761 | 8,757 | ||
Total | 453,719 | 374,096 | ||
Construction [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | 53,371 | 24,742 | ||
30-89 Days Past Due | 0 | 0 | ||
90 Days or more Past Due and accruing | 1,446 | 1,454 | ||
Loans acquired with deteriorated credit quality | 0 | 774 | ||
Non-Accrual | 150 | [1] | 540 | [2] |
Total | 54,967 | 27,510 | ||
Commercial Mortgages [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | 391,096 | 335,123 | ||
30-89 Days Past Due | 3,064 | 1,138 | ||
90 Days or more Past Due and accruing | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 1,761 | 7,983 | ||
Non-Accrual | 2,831 | [1] | 2,342 | [2] |
Total | 398,752 | 346,586 | ||
Residential Mortgages [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | 191,089 | 187,448 | ||
30-89 Days Past Due | 2,333 | 5,458 | ||
90 Days or more Past Due and accruing | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 250 | 261 | ||
Non-Accrual | 3,615 | [1] | 3,358 | [2] |
Total | 197,287 | 196,525 | ||
Consumer Loans [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total | 306,528 | 282,110 | ||
Credit Cards [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | 1,641 | 1,729 | ||
30-89 Days Past Due | 5 | 9 | ||
90 Days or more Past Due and accruing | 8 | 19 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Non-Accrual | 0 | [1] | 0 | [2] |
Total | 1,654 | 1,757 | ||
Home Equity Lines and Loans [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | 98,340 | 95,349 | ||
30-89 Days Past Due | 736 | 150 | ||
90 Days or more Past Due and accruing | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Non-Accrual | 515 | [1] | 635 | [2] |
Total | 99,591 | 96,134 | ||
Indirect Consumer Loans [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | 183,103 | 163,810 | ||
30-89 Days Past Due | 1,789 | 1,235 | ||
90 Days or more Past Due and accruing | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Non-Accrual | 325 | [1] | 249 | [2] |
Total | 185,217 | 165,294 | ||
Direct Consumer Loans [Member] | ||||
Aging of the recorded investment in loans past due [Abstract] | ||||
Current | 19,988 | 18,830 | ||
30-89 Days Past Due | 48 | 50 | ||
90 Days or more Past Due and accruing | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Non-Accrual | 30 | [1] | 45 | [2] |
Total | $20,066 | $18,925 | ||
[1] | Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2014. | |||
[2] | Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2013. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES, TROUBLED DEBT RESTRUCTURING (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Loan | Loan | Loan | ||
Trouble debt restructurings [Abstract] | ||||
Recorded investment in troubled debt restructurings | $9,700,000 | $7,900,000 | $5,700,000 | |
Specific reserves allocated for troubled debt restructuring | 300,000 | 300,000 | 0 | |
Troubled debt restructurings accruing interest under modified terms | 8,700,000 | 6,800,000 | 5,400,000 | |
Troubled debt restructurings on non-accrual status | 1,000,000 | 1,100,000 | 400,000 | |
Additional amounts committed to customers with loans classified as troubled debt restructurings | 100,000 | 200,000 | ||
Loans by class modified as troubled debt restructurings [Abstract] | ||||
Number of Loans | 10 | 10 | 8 | |
Pre-Modification Outstanding Recorded Investment | 4,209,000 | 1,936,000 | 5,430,000 | |
Post-Modification Outstanding Recorded Investment | 4,167,000 | 1,936,000 | 5,430,000 | |
Increase in allowance for loan losses related to troubled debt restructurings | 200,000 | 100,000 | 0 | |
Troubled debt restructurings, charge offs | [1] | 0 | 0 | |
Number of days past due after which a loan is considered to be in payment default | 90 days | |||
Commercial and Industrial [Member] | ||||
Loans by class modified as troubled debt restructurings [Abstract] | ||||
Number of Loans | 4 | 5 | 4 | |
Pre-Modification Outstanding Recorded Investment | 1,028,000 | 1,343,000 | 1,307,000 | |
Post-Modification Outstanding Recorded Investment | 1,028,000 | 1,343,000 | 1,307,000 | |
Construction [Member] | ||||
Loans by class modified as troubled debt restructurings [Abstract] | ||||
Number of Loans | 1 | 1 | ||
Pre-Modification Outstanding Recorded Investment | 326,000 | 251,000 | ||
Post-Modification Outstanding Recorded Investment | 326,000 | 251,000 | ||
Commercial Mortgages [Member] | ||||
Loans by class modified as troubled debt restructurings [Abstract] | ||||
Number of Loans | 4 | 1 | 3 | |
Pre-Modification Outstanding Recorded Investment | 2,666,000 | 133,000 | 3,872,000 | |
Post-Modification Outstanding Recorded Investment | 2,623,000 | 133,000 | 3,872,000 | |
Residential Mortgages [Member] | ||||
Loans by class modified as troubled debt restructurings [Abstract] | ||||
Number of Loans | 1 | |||
Pre-Modification Outstanding Recorded Investment | 149,000 | |||
Post-Modification Outstanding Recorded Investment | 150,000 | |||
Home Equity Lines and Loans [Member] | ||||
Loans by class modified as troubled debt restructurings [Abstract] | ||||
Number of Loans | 1 | 3 | ||
Pre-Modification Outstanding Recorded Investment | 366,000 | 134,000 | ||
Post-Modification Outstanding Recorded Investment | $366,000 | $134,000 | ||
[1] | Amount less than $0.1 million |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES, CREDIT QUALITY INDICATOR (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing receivable by credit quality indicator [Abstract] | ||
Loans | $1,124,354 | $998,463 |
Deteriorated Loans Transferred in [Abstract] | ||
Contractually required principal and interest, beginning of period | 11,230 | |
Contractually required principal and interest, income accretion | 0 | |
Contractually required principal and interest, all other adjustments | -7,609 | |
Contractually required principal and interest, end of period | 3,621 | |
Contractual cash flows not expected to be collected (nonaccretable discount), beginning of period | -543 | |
Contractual cash flows not expected to be collected (nonaccretable discount), income accretion | 0 | |
Contractual cash flows not expected to be collected (nonaccretable discount), all other adjustments | -27 | |
Contractual cash flows not expected to be collected (nonaccretable discount), end of period | -570 | |
Cash flows expected to be collected, beginning of period | 10,687 | |
Cash flows expected to be collected, income accretion | 0 | |
Cash flows expected to be collected, all other adjustments | -7,636 | |
Cash flows expected to be collected, end of period | 3,051 | |
Interest component of expected cash flows (accretable yield), beginning of period | -991 | |
Interest component of expected cash flows (accretable yield), income accretion | 515 | |
Interest component of expected cash flows (accretable yield), all other adjustments | 56 | |
Interest component of expected cash flows (accretable yield, end of period | -420 | |
Fair value of loans acquired with deteriorating credit quality, beginning of period | 9,696 | |
Fair value of loans acquired with deteriorating credit quality, income accretion | 515 | |
Fair value of loans acquired with deteriorating credit quality, all other adjustments | -7,580 | |
Fair value of loans acquired with deteriorating credit quality, end of period | 2,631 | |
Commercial and Agricultural [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 166,820 | 145,732 |
Commercial and Industrial [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 165,797 | 145,155 |
Agricultural [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 1,023 | 577 |
Commercial Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 453,719 | 374,096 |
Construction [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 54,967 | 27,510 |
Commercial Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 398,752 | 346,586 |
Residential Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 197,287 | 196,525 |
Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 306,528 | 282,110 |
Credit Cards [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 1,654 | 1,757 |
Home Equity Lines and Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 99,591 | 96,134 |
Indirect Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 185,217 | 165,294 |
Direct Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 20,066 | 18,925 |
Not Rated [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 499,137 | 474,099 |
Not Rated [Member] | Commercial and Industrial [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Not Rated [Member] | Agricultural [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Not Rated [Member] | Construction [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Not Rated [Member] | Commercial Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Not Rated [Member] | Residential Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 193,422 | 192,995 |
Not Rated [Member] | Credit Cards [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 1,654 | 1,757 |
Not Rated [Member] | Home Equity Lines and Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 99,076 | 95,422 |
Not Rated [Member] | Indirect Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 184,940 | 165,045 |
Not Rated [Member] | Direct Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 20,045 | 18,880 |
Pass [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 576,136 | 471,235 |
Pass [Member] | Commercial and Industrial [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 158,140 | 133,615 |
Pass [Member] | Agricultural [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 1,023 | 577 |
Pass [Member] | Construction [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 51,525 | 23,087 |
Pass [Member] | Commercial Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 365,448 | 313,956 |
Pass [Member] | Residential Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Pass [Member] | Credit Cards [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Pass [Member] | Home Equity Lines and Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Pass [Member] | Indirect Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Pass [Member] | Direct Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Loans Acquired With Deteriorated Credit Quality [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 2,631 | 9,696 |
Loans Acquired With Deteriorated Credit Quality [Member] | Commercial and Industrial [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 620 | 678 |
Loans Acquired With Deteriorated Credit Quality [Member] | Agricultural [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Loans Acquired With Deteriorated Credit Quality [Member] | Construction [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 774 |
Loans Acquired With Deteriorated Credit Quality [Member] | Commercial Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 1,761 | 7,983 |
Loans Acquired With Deteriorated Credit Quality [Member] | Residential Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 250 | 261 |
Loans Acquired With Deteriorated Credit Quality [Member] | Credit Cards [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Loans Acquired With Deteriorated Credit Quality [Member] | Home Equity Lines and Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Loans Acquired With Deteriorated Credit Quality [Member] | Indirect Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Loans Acquired With Deteriorated Credit Quality [Member] | Direct Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Special Mention [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 27,858 | 21,511 |
Special Mention [Member] | Commercial and Industrial [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 3,695 | 5,117 |
Special Mention [Member] | Agricultural [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Special Mention [Member] | Construction [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 3,292 | 2,783 |
Special Mention [Member] | Commercial Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 20,871 | 13,611 |
Special Mention [Member] | Residential Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Special Mention [Member] | Credit Cards [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Special Mention [Member] | Home Equity Lines and Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Special Mention [Member] | Indirect Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Special Mention [Member] | Direct Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Substandard [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 18,150 | 20,901 |
Substandard [Member] | Commercial and Industrial [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 3,306 | 4,724 |
Substandard [Member] | Agricultural [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Substandard [Member] | Construction [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 150 | 866 |
Substandard [Member] | Commercial Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 10,266 | 11,036 |
Substandard [Member] | Residential Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 3,615 | 3,269 |
Substandard [Member] | Credit Cards [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Substandard [Member] | Home Equity Lines and Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 515 | 712 |
Substandard [Member] | Indirect Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 277 | 249 |
Substandard [Member] | Direct Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 21 | 45 |
Doubtful [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 442 | 1,021 |
Doubtful [Member] | Commercial and Industrial [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 36 | 1,021 |
Doubtful [Member] | Agricultural [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Construction [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Commercial Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 406 | 0 |
Doubtful [Member] | Residential Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Credit Cards [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Home Equity Lines and Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Indirect Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Direct Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Performing [Member] | Residential Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 193,672 | 193,167 |
Performing [Member] | Credit Cards [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 1,654 | 1,757 |
Performing [Member] | Home Equity Lines and Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 99,076 | 95,499 |
Performing [Member] | Indirect Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 184,892 | 165,045 |
Performing [Member] | Direct Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 20,036 | 18,880 |
Non-Performing [Member] | Residential Mortgages [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 3,615 | 3,358 |
Non-Performing [Member] | Credit Cards [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 0 | 0 |
Non-Performing [Member] | Home Equity Lines and Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 515 | 635 |
Non-Performing [Member] | Indirect Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | 325 | 249 |
Non-Performing [Member] | Direct Consumer Loans [Member] | ||
Financing receivable by credit quality indicator [Abstract] | ||
Loans | $30 | $45 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Premises and equipment [Abstract] | |||
Premises and equipment, gross | $86,184,000 | $80,143,000 | |
Less accumulated depreciation and amortization | 53,897,000 | 50,104,000 | |
Property, Plant and Equipment, Net, Total | 32,287,000 | 30,039,000 | |
Depreciation expense | 3,861,000 | 3,236,000 | 2,946,000 |
Rent expense | 2,000,000 | 1,300,000 | 1,100,000 |
Rent commitments, before considering renewal options [Abstract] | |||
2015 | 1,429,000 | ||
2016 | 1,166,000 | ||
2017 | 1,143,000 | ||
2018 | 1,147,000 | ||
2019 | 834,000 | ||
2020 and thereafter | 4,154,000 | ||
Total | 9,873,000 | ||
Leases in premises and equipment [Abstract] | |||
Buildings | 3,537,000 | 0 | |
Accumulated depreciation | 0 | 0 | |
Total | 3,537,000 | 0 | |
Schedule by year of future minimum lease payments under the capitalized lease [Abstract] | |||
2015 | 234,000 | ||
2016 | 234,000 | ||
2017 | 234,000 | ||
2018 | 234,000 | ||
2019 | 234,000 | ||
2020 and thereafter | 2,644,000 | ||
Total minimum lease payments | 3,814,000 | ||
Less amount representing interest | 838,000 | ||
Present value of net minimum lease payments | 2,976,000 | ||
Land [Member] | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 4,803,000 | 4,803,000 | |
Buildings [Member] | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 35,067,000 | 34,379,000 | |
Projects in Progress [Member] | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 132,000 | 0 | |
Equipment and Furniture [Member] | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 40,088,000 | 34,920,000 | |
Leasehold Improvements [Member] | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | $6,094,000 | $6,041,000 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | |||
Beginning of year | $21,824 | $21,824 | |
Acquired goodwill | 0 | 0 | |
End of period | 21,824 | 21,824 | 21,824 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Balance Acquired | 11,608 | 12,038 | |
Accumulated Amortization | 6,541 | 5,661 | |
Aggregate amortization expense | 1,310 | 921 | 1,047 |
Remaining estimated aggregate amortization expense [Abstract] | |||
2015 | 1,136 | ||
2016 | 986 | ||
2017 | 859 | ||
2018 | 734 | ||
2019 | 609 | ||
2020 and thereafter | 743 | ||
Total | 5,067 | ||
Core Deposit Intangibles [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Balance Acquired | 5,975 | 5,975 | |
Accumulated Amortization | 3,279 | 2,338 | |
Other Customer Relationship Intangibles [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Balance Acquired | 5,633 | 6,063 | |
Accumulated Amortization | $3,262 | $3,323 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of deposits [Abstract] | |||
Non-interest-bearing demand deposits | $366,298,000 | $351,222,000 | |
Interest-bearing demand deposits | 110,819,000 | 114,679,000 | |
Insured money market accounts | 392,871,000 | 361,095,000 | |
Savings deposits | 198,183,000 | 194,768,000 | |
Time deposits | 211,843,000 | 244,492,000 | |
Total deposits | 1,280,014,000 | 1,266,256,000 | |
Scheduled maturities of time deposits [Abstract] | |||
2015 | 155,295,000 | ||
2016 | 34,803,000 | ||
2017 | 9,486,000 | ||
2018 | 4,775,000 | ||
2019 | 5,851,000 | ||
2020 and thereafter | 1,633,000 | ||
Time deposits | 211,843,000 | 244,492,000 | |
FDIC Insurance limit | 250,000 | 250,000 | 250,000 |
Time deposits meeting or exceeding FDIC Insurance limit | 42,800,000 | 37,700,000 | |
Interest expense on time deposits | 500,000 | 800,000 | 1,200,000 |
Maturities of time deposits in denominations of $100,000 or more [Abstract] | |||
3 months or less | 31,484,000 | ||
Over 3 through 6 months | 15,286,000 | ||
Over 6 through 12 months | 17,842,000 | ||
Over 12 months | 15,845,000 | ||
Time deposits, $100,000 or more | $80,457,000 | $88,800,000 |
SECURITIES_SOLD_UNDER_AGREEMEN2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of securities sold under agreements to repurchase [Abstract] | ||||
Balance at December 31 | $29,652 | $32,701 | $32,711 | |
Maximum month-end balance | 31,914 | 32,701 | 38,284 | |
Average balance during year | 30,667 | 31,102 | 34,534 | |
Weighted-average interest rate, period end (in hundredths) | 2.82% | [1] | 2.93% | 3.02% |
Average interest rate paid during period (in hundredths) | 2.77% | 2.76% | 2.88% | |
Repurchase Liability | 29,652 | [1] | ||
Accrued Interest Payable | 63 | [1] | ||
Weighted Average Rate (in hundredths) | 2.82% | [1] | 2.93% | 3.02% |
Estimated Fair Value of Collateral Securities | 40,212 | [1],[2] | ||
Accrued interest receivable included in fair value of repurchase agreements | 342 | |||
Within 90 Days [Member] | ||||
Summary of securities sold under agreements to repurchase [Abstract] | ||||
Weighted-average interest rate, period end (in hundredths) | 0.10% | [1] | ||
Repurchase Liability | 9,652 | [1] | ||
Accrued Interest Payable | 0 | [1] | ||
Weighted Average Rate (in hundredths) | 0.10% | [1] | ||
Estimated Fair Value of Collateral Securities | 16,682 | [1],[2] | ||
After 90 Days But Within One Year [Member] | ||||
Summary of securities sold under agreements to repurchase [Abstract] | ||||
Weighted-average interest rate, period end (in hundredths) | 0.00% | [1] | ||
Repurchase Liability | 0 | [1] | ||
Accrued Interest Payable | 0 | [1] | ||
Weighted Average Rate (in hundredths) | 0.00% | [1] | ||
Estimated Fair Value of Collateral Securities | 0 | [1],[2] | ||
After One Year But Within Five Years [Member] | ||||
Summary of securities sold under agreements to repurchase [Abstract] | ||||
Weighted-average interest rate, period end (in hundredths) | 4.13% | [1] | ||
Repurchase Liability | 20,000 | [1] | ||
Accrued Interest Payable | 63 | [1] | ||
Weighted Average Rate (in hundredths) | 4.13% | [1] | ||
Estimated Fair Value of Collateral Securities | 23,530 | [1],[2] | ||
After Five Years But Within Ten Years [Member] | ||||
Summary of securities sold under agreements to repurchase [Abstract] | ||||
Weighted-average interest rate, period end (in hundredths) | 0.00% | [1] | ||
Repurchase Liability | 0 | [1] | ||
Accrued Interest Payable | 0 | [1] | ||
Weighted Average Rate (in hundredths) | 0.00% | [1] | ||
Estimated Fair Value of Collateral Securities | $0 | [1],[2] | ||
Without Call Provisions [Member] | ||||
Summary of securities sold under agreements to repurchase [Abstract] | ||||
Weighted-average interest rate, period end (in hundredths) | 3.10% | |||
Weighted Average Rate (in hundredths) | 3.10% | |||
Weight average remaining term to maturity | 1 year 10 months 24 days | |||
[1] | At December 31, 2014, the securities repurchase agreements were non-callable with a weighted-average rate of 3.10%, and a weighted-average term to maturity of approximately 1.9 years. | |||
[2] | Represents the estimated fair value of the securities subject to the repurchase agreements, including accrued interest receivable, of approximately $342 thousand at December 31, 2014. |
FEDERAL_HOME_LOAN_BANK_TERM_AD2
FEDERAL HOME LOAN BANK TERM ADVANCES AND OVERNIGHT ADVANCES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Amount | $50,140,000 | |
Rate (in hundredths) | 1.73% | 3.93% |
Collateral pledged for Federal Home Loan Bank advances | 152,700,000 | 145,100,000 |
Maximum amount eligible to borrow | 86,000,000 | |
Federal Home Loan Bank Advances Maturing December 22, 2016 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Amount | 10,000,000 | 10,000,000 |
Rate (in hundredths) | 4.60% | 4.60% |
Maturity Date | 22-Dec-16 | 22-Dec-16 |
Federal Home Loan Bank Advances Maturing October 20, 2014 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Amount | 4,134,000 | |
Rate (in hundredths) | 3.84% | |
Maturity Date | 20-Oct-14 | |
Federal Home Loan Bank Advances Maturing October 19, 2017 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Amount | 4,138,000 | 4,134,000 |
Rate (in hundredths) | 3.90% | 3.90% |
Maturity Date | 19-Oct-17 | 19-Oct-17 |
Federal Home Loan Bank Advances Maturing December 4, 2017 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Amount | 3,103,000 | 3,100,000 |
Rate (in hundredths) | 2.91% | 2.91% |
Maturity Date | 4-Dec-17 | 4-Dec-17 |
Federal Home Loan Bank Advances Maturing January 2, 2018 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Amount | 2,069,000 | 2,067,000 |
Rate (in hundredths) | 3.05% | 3.05% |
Maturity Date | 2-Jan-18 | 2-Jan-18 |
Federal Home Loan Bank Advances Maturing January 2, 2015 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Amount | 30,830,000 | |
Rate (in hundredths) | 0.32% | |
Maturity Date | 2-Jan-15 | |
Federal Home Loan Bank Advances Maturing June 18, 2014 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Amount | 1,033,000 | |
Rate (in hundredths) | 3.20% | |
Maturity Date | 18-Jun-14 | |
Federal Home Loan Bank Advances Maturing October 2, 2014 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Amount | $775,000 | |
Rate (in hundredths) | 3.05% | |
Maturity Date | 2-Oct-14 | |
Federal Home Loan Bank Advances Maturing January 19, 2014 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Call Date | 19-Jan-14 | |
Federal Home Loan Bank Advances Maturing January 19, 2015 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Call Date | 19-Jan-15 | |
Federal Home Loan Bank Advances Maturing January 20, 2014 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Call Date | 20-Jan-14 | |
Federal Home Loan Bank Advances Maturing March 4, 2014 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Call Date | 4-Mar-14 | |
Federal Home Loan Bank Advances Maturing April 1, 2014 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Call Date | 1-Apr-14 | |
Federal Home Loan Bank Advances Maturing April 1, 2015 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Call Date | 1-Apr-15 | |
Federal Home Loan Bank Advances Maturing March 3, 2015 [Member] | ||
Summary of Federal Home Loan Bank fixed rate advances [Abstract] | ||
Call Date | 3-Mar-15 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current [Abstract] | |||
State | $606,000 | $395,000 | $530,000 |
Federal | 5,366,000 | 3,548,000 | 4,208,000 |
Current income tax expense (benefit), Total | 5,972,000 | 3,943,000 | 4,738,000 |
Deferred expense/(benefit) | -2,263,000 | -121,000 | 647,000 |
Income tax expense | 3,709,000 | 3,822,000 | 5,385,000 |
Reconciliation of income tax expense [Abstract] | |||
Tax computed at statutory rate | 4,034,000 | 4,268,000 | 5,578,000 |
Tax-exempt interest | -456,000 | -483,000 | -506,000 |
Dividend exclusion | -60,000 | -46,000 | -40,000 |
State taxes, net of Federal impact | 227,000 | 188,000 | 439,000 |
Nondeductible interest expense | 8,000 | 11,000 | 16,000 |
Other items, net | -44,000 | -116,000 | -102,000 |
Income tax expense | 3,709,000 | 3,822,000 | 5,385,000 |
Deferred tax assets [Abstract] | |||
Allowance for loan losses | 5,182,000 | 4,889,000 | |
Accrual for employee benefit plans | 709,000 | 754,000 | |
Depreciation | 1,010,000 | 431,000 | |
Deferred compensation and directors' fees | 1,076,000 | 947,000 | |
Purchase accounting adjustment - deposits | 65,000 | 137,000 | |
Purchase accounting adjustment - loans | 259,000 | 340,000 | |
Purchase accounting adjustment - fixed assets | 221,000 | 224,000 | |
Accounting for defined benefit pension and other benefit plans | 6,624,000 | 3,691,000 | |
Trust preferred impairment write-down | 540,000 | 742,000 | |
Nonaccrued interest | 617,000 | 626,000 | |
Accrued expense | 1,580,000 | 0 | |
Other | 456,000 | 647,000 | |
Total gross deferred tax assets | 18,339,000 | 13,428,000 | |
Deferred tax liabilities [Abstract] | |||
Deferred loan fees and costs | 910,000 | 929,000 | |
Prepaid pension | 5,179,000 | 5,435,000 | |
Net unrealized gains on securities available for sale | 1,359,000 | 3,929,000 | |
Discount accretion | 410,000 | 352,000 | |
Core deposit intangible | 1,479,000 | 1,556,000 | |
Other | 153,000 | 144,000 | |
Total gross deferred tax liabilities | 9,490,000 | 12,345,000 | |
Net deferred tax asset | 8,849,000 | 1,083,000 | |
Unrecognized tax benefits | 0 | 0 | 0 |
Accrued interest or penalties related to uncertain tax positions | $0 | $0 | $0 |
PENSION_PLAN_AND_OTHER_BENEFIT2
PENSION PLAN AND OTHER BENEFIT PLANS, Changes in Projected Benefit Obligation and Plan Assets, and Funded Status (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plan [Member] | |||
Changes in projected benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of period | $36,186 | $38,051 | |
Service cost | 1,045 | 1,195 | 1,074 |
Interest cost | 1,738 | 1,587 | 1,606 |
Actuarial (gain) loss | 8,064 | -3,269 | |
Benefits paid | -1,489 | -1,378 | |
Benefit obligation, end of period | 45,544 | 36,186 | 38,051 |
Changes in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of period | 41,782 | 37,239 | |
Actual return on plan assets | 3,043 | 5,921 | |
Employer contributions | 0 | 0 | |
Benefits paid | -1,489 | -1,378 | |
Fair value of plan assets, end of period | 43,336 | 41,782 | 37,239 |
Funded status [Abstract] | |||
Funded (unfunded) status | -2,207 | 5,596 | |
Defined Benefit Health Care Plan [Member] | |||
Changes in projected benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of period | 1,490 | 1,534 | |
Service cost | 39 | 44 | 39 |
Interest cost | 72 | 66 | 71 |
Participant contributions | 84 | 74 | |
Actuarial (gain) loss | 177 | -61 | |
Benefits paid | -199 | -167 | |
Benefit obligation, end of period | 1,663 | 1,490 | 1,534 |
Changes in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of period | 0 | 0 | |
Employer contributions | 115 | 93 | |
Participant contributions | 84 | 74 | |
Benefits paid | -199 | -167 | |
Fair value of plan assets, end of period | 0 | 0 | 0 |
Funded status [Abstract] | |||
Funded (unfunded) status | -1,663 | -1,490 | |
Executive Supplemental Pension Plan [Member] | |||
Changes in projected benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of period | 1,116 | 1,162 | |
Service cost | 38 | 40 | 35 |
Interest cost | 55 | 48 | 51 |
Actuarial (gain) loss | 110 | -59 | |
Benefits paid | -75 | -75 | |
Benefit obligation, end of period | 1,244 | 1,116 | 1,162 |
Changes in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of period | 0 | 0 | |
Employer contributions | 75 | 75 | |
Benefits paid | -75 | -75 | |
Fair value of plan assets, end of period | 0 | 0 | 0 |
Funded status [Abstract] | |||
Funded (unfunded) status | ($1,244) | ($1,116) |
PENSION_PLAN_AND_OTHER_BENEFIT3
PENSION PLAN AND OTHER BENEFIT PLANS, Amounts Recognized, Assumptions Used, Target and Actual Allocation, Fair Value, Estimated Future Benefit Payments, and Other Disclosures (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): [Abstract] | |||
Net actuarial (gain) loss | $8,481,000 | ($6,487,000) | $3,624,000 |
Recognized actuarial loss | -681,000 | -1,624,000 | -1,431,000 |
Amortization of prior service cost | 90,000 | 83,000 | 83,000 |
Total recognized in other comprehensive income (loss) (before tax effect) | 7,890,000 | -8,028,000 | 2,276,000 |
Defined Contribution Profit Sharing, Savings and Investment Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Number of annual service hours required for eligibility (in hours) | 1000 hours | ||
Total expense | 620,000 | 521,000 | 393,000 |
Chemung common stock included in defined contribution plan assets (in shares) | 170,714 | 178,133 | 189,337 |
Defined Contribution Supplemental Executive Retirement Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Total expense | 213,000 | 155,000 | |
Balance in the plan | 550,000 | 337,000 | |
Pension Plan [Member] | |||
Amount recognized in accumulated other comprehensive income [Abstract] | |||
Net actuarial loss | 17,388,000 | 9,843,000 | |
Prior service cost (benefit) | 15,000 | 22,000 | |
Total before tax effects | 17,403,000 | 9,865,000 | |
Accumulated benefit obligation | 38,700,000 | 31,200,000 | |
Principal actuarial assumptions used in determining projected benefit obligation [Abstract] | |||
Discount rate (in hundredths) | 4.09% | 4.92% | 4.26% |
Assumed rate of future compensation increase (in hundredths) | 5.00% | 5.00% | 5.00% |
Net periodic benefit cost [Abstract] | |||
Service cost | 1,045,000 | 1,195,000 | 1,074,000 |
Interest cost | 1,738,000 | 1,587,000 | 1,606,000 |
Expected return on plan assets | -3,174,000 | -2,824,000 | -2,743,000 |
Amortization of net loss/ Recognized actuarial loss | 649,000 | 1,579,000 | 1,410,000 |
Amortization of prior service cost (benefit) | 7,000 | 14,000 | 14,000 |
Net periodic cost | 265,000 | 1,551,000 | 1,361,000 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): [Abstract] | |||
Net actuarial (gain) loss | 8,195,000 | -6,367,000 | 3,365,000 |
Recognized actuarial loss | -649,000 | -1,579,000 | -1,410,000 |
Amortization of prior service cost | -7,000 | -14,000 | -14,000 |
Total recognized in other comprehensive income (loss) (before tax effect) | 7,539,000 | -7,960,000 | 1,941,000 |
Total recognized in net benefit cost and other comprehensive income (loss) (before tax effect) | 7,804,000 | -6,409,000 | 3,302,000 |
Amounts expected to be recognized in net periodic cost during next fiscal year [Abstract] | |||
Loss recognition | 1,475,000 | ||
Prior service cost recognition | 7,000 | ||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Discount rate (in hundredths) | 4.92% | 4.26% | 4.95% |
Expected long-term rate of return on assets (in hundredths) | 7.75% | 7.75% | 8.00% |
Assumed rate of future compensation increase (in hundredths) | 5.00% | 5.00% | 5.00% |
Target allocations of plan assets [Abstract] | |||
Percentage of plan assets (in hundredths) | 100.00% | 100.00% | |
Expected long-term rate of return on assets (in hundredths) | 7.75% | 7.75% | 8.00% |
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 43,336,000 | 41,782,000 | 37,239,000 |
Estimated benefit payments for each of next five years and aggregate amount expected to be paid [Abstract] | |||
2015 | 1,761,000 | ||
2016 | 1,849,000 | ||
2017 | 1,949,000 | ||
2018 | 2,052,000 | ||
2019 | 2,114,000 | ||
2020-2024 | 11,949,000 | ||
Pension Plan [Member] | Minimum [Member] | |||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Evaluation period of expected long-term return on plan assets | 3 years | ||
Pension Plan [Member] | Maximum [Member] | |||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Evaluation period of expected long-term return on plan assets | 5 years | ||
Pension Plan [Member] | Carrying Value [Member] | Carrying Value [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 43,336,000 | 41,782,000 | |
Pension Plan [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 39,305,000 | 38,749,000 | |
Pension Plan [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 4,031,000 | 3,033,000 | |
Pension Plan [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Cash [Member] | |||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Expected long-term rate of return on assets (in hundredths) | 2.50% | ||
Target allocations of plan assets [Abstract] | |||
Target allocation, minimum (in hundredths) | 0.00% | ||
Target allocation, maximum (in hundredths) | 20.00% | ||
Percentage of plan assets (in hundredths) | 1.00% | 2.00% | |
Expected long-term rate of return on assets (in hundredths) | 2.50% | ||
Pension Plan [Member] | Cash [Member] | Carrying Value [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 626,000 | 982,000 | |
Pension Plan [Member] | Cash [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 626,000 | 982,000 | |
Pension Plan [Member] | Cash [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Cash [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Alternative Assets [Member] | |||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Expected long-term rate of return on assets (in hundredths) | 7.50% | ||
Target allocations of plan assets [Abstract] | |||
Target allocation, minimum (in hundredths) | 0.00% | ||
Target allocation, maximum (in hundredths) | 10.00% | ||
Percentage of plan assets (in hundredths) | 2.00% | 3.00% | |
Expected long-term rate of return on assets (in hundredths) | 7.50% | ||
Pension Plan [Member] | Equity Securities - U.S. Companies [Member] | Carrying Value [Member] | Carrying Value [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 28,011,000 | 27,170,000 | |
Pension Plan [Member] | Equity Securities - U.S. Companies [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 28,011,000 | 27,170,000 | |
Pension Plan [Member] | Equity Securities - U.S. Companies [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Equity Securities - U.S. Companies [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Equity Securities - International Companies [Member] | Carrying Value [Member] | Carrying Value [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 856,000 | ||
Pension Plan [Member] | Equity Securities - International Companies [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 856,000 | ||
Pension Plan [Member] | Equity Securities - International Companies [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | ||
Pension Plan [Member] | Equity Securities - International Companies [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | ||
Pension Plan [Member] | U.S. Treasuries/Government Bonds [Member] | Carrying Value [Member] | Carrying Value [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 2,701,000 | 3,309,000 | |
Pension Plan [Member] | U.S. Treasuries/Government Bonds [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 2,701,000 | 3,309,000 | |
Pension Plan [Member] | U.S. Treasuries/Government Bonds [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | U.S. Treasuries/Government Bonds [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | U.S. Corporate Bonds [Member] | Carrying Value [Member] | Carrying Value [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 3,775,000 | 2,771,000 | |
Pension Plan [Member] | U.S. Corporate Bonds [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | U.S. Corporate Bonds [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 3,775,000 | 2,771,000 | |
Pension Plan [Member] | U.S. Corporate Bonds [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Foreign Bonds, Notes & Debentures [Member] | Carrying Value [Member] | Carrying Value [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 256,000 | 262,000 | |
Pension Plan [Member] | Foreign Bonds, Notes & Debentures [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Foreign Bonds, Notes & Debentures [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 256,000 | 262,000 | |
Pension Plan [Member] | Foreign Bonds, Notes & Debentures [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Mutual Funds [Member] | Carrying Value [Member] | Carrying Value [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 7,111,000 | 7,288,000 | |
Pension Plan [Member] | Mutual Funds [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 7,111,000 | 7,288,000 | |
Pension Plan [Member] | Mutual Funds [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Mutual Funds [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan [Member] | Large-Cap Domestic Equities [Member] | |||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Expected long-term rate of return on assets (in hundredths) | 10.30% | ||
Target allocations of plan assets [Abstract] | |||
Target allocation, minimum (in hundredths) | 30.00% | ||
Target allocation, maximum (in hundredths) | 60.00% | ||
Percentage of plan assets (in hundredths) | 50.00% | 54.00% | |
Expected long-term rate of return on assets (in hundredths) | 10.30% | ||
Pension Plan [Member] | Mid-Cap Domestic Equities [Member] | |||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Expected long-term rate of return on assets (in hundredths) | 10.60% | ||
Target allocations of plan assets [Abstract] | |||
Target allocation, minimum (in hundredths) | 0.00% | ||
Target allocation, maximum (in hundredths) | 20.00% | ||
Percentage of plan assets (in hundredths) | 14.00% | 8.00% | |
Expected long-term rate of return on assets (in hundredths) | 10.60% | ||
Pension Plan [Member] | Small-Cap Domestic Equities [Member] | |||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Expected long-term rate of return on assets (in hundredths) | 10.80% | ||
Target allocations of plan assets [Abstract] | |||
Target allocation, minimum (in hundredths) | 0.00% | ||
Target allocation, maximum (in hundredths) | 15.00% | ||
Percentage of plan assets (in hundredths) | 3.00% | 3.00% | |
Expected long-term rate of return on assets (in hundredths) | 10.80% | ||
Pension Plan [Member] | International Equities [Member] | |||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Expected long-term rate of return on assets (in hundredths) | 10.30% | ||
Target allocations of plan assets [Abstract] | |||
Target allocation, minimum (in hundredths) | 0.00% | ||
Target allocation, maximum (in hundredths) | 25.00% | ||
Percentage of plan assets (in hundredths) | 4.00% | 4.00% | |
Expected long-term rate of return on assets (in hundredths) | 10.30% | ||
Pension Plan [Member] | Intermediate Fixed Income [Member] | |||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Expected long-term rate of return on assets (in hundredths) | 4.70% | ||
Target allocations of plan assets [Abstract] | |||
Target allocation, minimum (in hundredths) | 20.00% | ||
Target allocation, maximum (in hundredths) | 50.00% | ||
Percentage of plan assets (in hundredths) | 26.00% | 26.00% | |
Expected long-term rate of return on assets (in hundredths) | 4.70% | ||
Defined Benefit Health Care Plan [Member] | |||
Amount recognized in accumulated other comprehensive income [Abstract] | |||
Net actuarial loss | 322,000 | 148,000 | |
Prior service cost (benefit) | -531,000 | -628,000 | |
Total before tax effects | -209,000 | -480,000 | |
Principal actuarial assumptions used in determining projected benefit obligation [Abstract] | |||
Discount rate (in hundredths) | 4.09% | 4.92% | 4.26% |
Health care cost trend: Initial (in hundredths) | 7.00% | 8.00% | 9.00% |
Health care cost trend: Ultimate (in hundredths) | 5.00% | 5.00% | 5.00% |
Year ultimate cost trend reached | 2018 | 2018 | 2018 |
Net periodic benefit cost [Abstract] | |||
Service cost | 39,000 | 44,000 | 39,000 |
Interest cost | 72,000 | 66,000 | 71,000 |
Amortization of net loss/ Recognized actuarial loss | 3,000 | 10,000 | 1,000 |
Amortization of prior service cost (benefit) | -97,000 | -97,000 | -97,000 |
Net periodic cost | 17,000 | 23,000 | 14,000 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): [Abstract] | |||
Net actuarial (gain) loss | 177,000 | -61,000 | 178,000 |
Recognized actuarial loss | -3,000 | -10,000 | -1,000 |
Amortization of prior service cost | 97,000 | 97,000 | 97,000 |
Total recognized in other comprehensive income (loss) (before tax effect) | 271,000 | 26,000 | 274,000 |
Total recognized in net benefit cost and other comprehensive income (loss) (before tax effect) | 288,000 | 49,000 | 288,000 |
Increase in unrecognized net loss | 174,000 | ||
Unrecognized net gain or loss increase threshold percentage for amortization of obligation (in hundredths) | 10.00% | ||
Average future working lifetime of active participants | 14 years 10 months 20 days | ||
Amounts expected to be recognized in net periodic cost during next fiscal year [Abstract] | |||
Loss recognition | 10,000 | ||
Prior service cost recognition | -97,000 | ||
Effect of a 1% increase in health care trend rate on [Abstract] | |||
Benefit obligation | 5,000 | 15,000 | 4,000 |
Total service and interest cost | 0 | 0 | 0 |
Effect of a 1% decrease in health care trend rate on [Abstract] | |||
Benefit obligation | -6,000 | -23,000 | -5,000 |
Total service and interest cost | 0 | -2,000 | -1,000 |
Weighted-average assumptions for net periodic cost [Abstract] | |||
Discount rate (in hundredths) | 4.92% | 4.26% | 4.95% |
Health care cost trend: Initial (in hundredths) | 8.00% | 9.00% | 10.00% |
Health care cost trend: Ultimate (in hundredths) | 5.00% | 5.00% | 5.00% |
Year ultimate reached | 2018 | 2018 | 2018 |
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | 0 |
Estimated benefit payments for each of next five years and aggregate amount expected to be paid [Abstract] | |||
2015 | 201,000 | ||
2016 | 176,000 | ||
2017 | 140,000 | ||
2018 | 150,000 | ||
2019 | 159,000 | ||
2020-2024 | 652,000 | ||
Estimated employer contributions in next fiscal year | 201,000 | ||
Executive Supplemental Pension Plan [Member] | |||
Amount recognized in accumulated other comprehensive income [Abstract] | |||
Net actuarial loss | 275,000 | 194,000 | |
Prior service cost (benefit) | 0 | 0 | |
Total before tax effects | 275,000 | 194,000 | |
Accumulated benefit obligation | 1,200,000 | 1,000,000 | |
Principal actuarial assumptions used in determining projected benefit obligation [Abstract] | |||
Discount rate (in hundredths) | 4.09% | 4.92% | 4.26% |
Assumed rate of future compensation increase (in hundredths) | 5.00% | 5.00% | 5.00% |
Net periodic benefit cost [Abstract] | |||
Service cost | 38,000 | 40,000 | 35,000 |
Interest cost | 55,000 | 48,000 | 51,000 |
Amortization of net loss/ Recognized actuarial loss | 29,000 | 34,000 | 20,000 |
Net periodic cost | 122,000 | 122,000 | 106,000 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): [Abstract] | |||
Net actuarial (gain) loss | 110,000 | -59,000 | 81,000 |
Recognized actuarial loss | -29,000 | -34,000 | -20,000 |
Total recognized in other comprehensive income (loss) (before tax effect) | 81,000 | -93,000 | 61,000 |
Total recognized in net benefit cost and other comprehensive income (loss) (before tax effect) | 203,000 | 29,000 | 167,000 |
Amounts expected to be recognized in net periodic cost during next fiscal year [Abstract] | |||
Loss recognition | 50,000 | ||
Prior service cost recognition | 0 | ||
Weighted-average assumptions for net periodic cost [Abstract] | |||
Discount rate (in hundredths) | 4.92% | 4.26% | 4.95% |
Assumed rate of future compensation increase (in hundredths) | 5.00% | 5.00% | 5.00% |
Fair value plan assets by asset class [Abstract] | |||
Fair value of plan assets | 0 | 0 | 0 |
Estimated benefit payments for each of next five years and aggregate amount expected to be paid [Abstract] | |||
2015 | 75,000 | ||
2016 | 75,000 | ||
2017 | 75,000 | ||
2018 | 116,000 | ||
2019 | 116,000 | ||
2020-2024 | 580,000 | ||
Estimated employer contributions in next fiscal year | $75,000 |
STOCK_COMPENSATION_Details
STOCK COMPENSATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock [Member] | |||
Shares [Roll Forward] | |||
Nonvested, beginning of period (in shares) | 20,639 | ||
Granted (in shares) | 11,279 | ||
Vested (in shares) | -5,490 | ||
Forfeited or cancelled (in shares) | 0 | ||
Nonvested, end of period (in shares) | 26,428 | 20,639 | |
Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Nonvested, beginning of period (in dollars per share) | $27.17 | ||
Granted (in dollars per share) | $28.40 | ||
Vested (in dollars per share) | $26.09 | ||
Forfeitures or cancelled (in dollars per share) | $0 | ||
Nonvested, end of period (in dollars per share) | $27.92 | $27.17 | |
Total unrecognized compensation cost related to nonvested shares granted under the Plan | $718 | ||
Weighted-average period for recognition | 3 years 11 months 12 days | ||
Total fair value of shares vested | 152 | 181 | |
President and Chief Executive Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Service period | 12 months | ||
Directors and President and Chief Executive Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of treasury shares reissued to fund stock compensation (in shares) | 9,673 | 8,385 | 7,969 |
Expense related to stock compensation recognized | $271 | $273 | $217 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Loans to Related Parties [Roll Forward] | ||
Balance at beginning of year | $26,408,000 | $25,390,000 |
New loans or additional advances | 33,282,000 | 30,056,000 |
Repayments | -21,888,000 | -29,038,000 |
Balance at end of year | 37,802,000 | 26,408,000 |
Deposit Liabilities | $12,000,000 | $9,800,000 |
Minimum [Member] | ||
Related Party Transactions [Line Items] | ||
Related party principal ownership threshold (in hundredths) | 10.00% |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stipulation | Proceeding | |
Proceeding | ||
Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Number of legal proceedings | 2 | |
Accrual for legal settlement | $12,100,000 | |
Receivable for insurance proceeds | 7,900,000 | |
Number of stipulations submitted to Surrogate's Court | 2 | |
Pending Litigation [Member] | Objections to Final Settlement of Trust Account One [Member] | ||
Loss Contingencies [Line Items] | ||
Damages and disallowed trustee's commissions claimed | 13,200,000 | |
Pending Litigation [Member] | Objections to Final Settlement of Trust Account Two [Member] | ||
Loss Contingencies [Line Items] | ||
Damages and disallowed trustee's commissions claimed | 24,100,000 | |
Minimum [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments period to make fixed-rate commercial draw notes | 3 months | |
Minimum [Member] | Fixed Interest Rate [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Interest rate on fixed-rate commitments to make loans (in hundredths) | 2.75% | |
Maturity period of fixed-rate commitments to make loans | 5 years | |
Interest rate on fixed-rate commitments to make commercial draw notes (in hundredths) | 1.76% | |
Maximum [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments period to make real estate and home equity loans | 60 days | |
Commitments period to make fixed-rate commercial draw notes | 18 months | |
Off-balance sheet financial instruments, standard term | 12 months | |
Maximum [Member] | Fixed Interest Rate [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Interest rate on fixed-rate commitments to make loans (in hundredths) | 5.88% | |
Maturity period of fixed-rate commitments to make loans | 30 years | |
Interest rate on fixed-rate commitments to make commercial draw notes (in hundredths) | 5.25% | |
Commitments to Make Loans [Member] | Fixed Interest Rate [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 23,756,000 | 21,049,000 |
Commitments to Make Loans [Member] | Variable Interest Rate [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 11,082,000 | 7,893,000 |
Unused Line of Credit [Member] | Fixed Interest Rate [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 812,000 | 2,190,000 |
Unused Line of Credit [Member] | Variable Interest Rate [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 185,235,000 | 187,061,000 |
Standby Letters of Credit [Member] | Fixed Interest Rate [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 0 | 0 |
Standby Letters of Credit [Member] | Variable Interest Rate [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | $16,747,000 | 17,290,000 |
PARENT_COMPANY_FINANCIAL_INFOR2
PARENT COMPANY FINANCIAL INFORMATION (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets: | ||||
Cash on deposit with subsidiary bank | $28,130 | $31,600 | ||
Securities available for sale, at estimated fair value | 280,507 | 346,016 | ||
Total assets | 1,524,539 | 1,476,143 | 1,248,160 | |
Liabilities and shareholders' equity: | ||||
Dividends payable | 1,204 | 1,195 | 0 | |
Total liabilities | 1,390,911 | 1,337,565 | ||
Shareholders' equity: | ||||
Total shareholders' equity | 133,628 | 138,578 | 131,115 | 125,929 |
Total liabilities and shareholders' equity | 1,524,539 | 1,476,143 | ||
STATEMENTS OF INCOME [Abstract] | ||||
Income (loss) before income tax expense | 11,866 | 12,553 | 16,407 | |
Income tax benefit | 3,709 | 3,822 | 5,385 | |
Net income | 8,157 | 8,731 | 11,022 | |
Cash flows from operating activities: | ||||
Net income | 8,157 | 8,731 | 11,022 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Change in other assets | -7,438 | -6,213 | 6,084 | |
Change in other liabilities | 15,086 | 9,403 | 588 | |
Net cash provided by operating activities | 18,443 | 22,972 | 24,562 | |
Cash flow from financing activities: | ||||
Purchase of treasury stock | 0 | -93 | -636 | |
Sale of treasury stock | 0 | 71 | 258 | |
Net cash provided by financing activities | 30,249 | 34,883 | 19,634 | |
Increase (Decrease) in cash and cash equivalents | -22,446 | 11,368 | -12,661 | |
Cash and cash equivalents, beginning of period | 51,609 | 40,241 | 52,902 | |
Cash and cash equivalents, end of period | 29,163 | 51,609 | 40,241 | |
Parent Company [Member] | ||||
Assets: | ||||
Cash on deposit with subsidiary bank | 3,200 | 2,686 | ||
Dividends receivable from subsidiary bank | 1,204 | 1,195 | ||
Securities available for sale, at estimated fair value | 346 | 343 | ||
Other Assets | 1,129 | 1,254 | ||
Total assets | 134,868 | 139,814 | ||
Liabilities and shareholders' equity: | ||||
Dividends payable | 1,204 | 1,195 | ||
Other liabilities | 36 | 41 | ||
Total liabilities | 1,240 | 1,236 | ||
Shareholders' equity: | ||||
Total shareholders' equity | 133,628 | 138,578 | ||
Total liabilities and shareholders' equity | 134,868 | 139,814 | ||
STATEMENTS OF INCOME [Abstract] | ||||
Dividends from subsidiary bank | 4,805 | 4,778 | 4,573 | |
Interest and dividend income | 10 | 9 | 7 | |
Other income | 0 | 132 | 150 | |
Operating expenses | 261 | 324 | 331 | |
Income (loss) before income tax expense | 4,554 | 4,595 | 4,399 | |
Income before income tax | 7,990 | 8,607 | 10,864 | |
Income tax benefit | -167 | -124 | -158 | |
Net income | 8,157 | 8,731 | 11,022 | |
Cash flows from operating activities: | ||||
Net income | 8,157 | 8,731 | 11,022 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Change in dividend receivable | -9 | -1,195 | 1,141 | |
Change in other assets | 126 | 558 | 765 | |
Change in other liabilities | 110 | 79 | 48 | |
Expense related to employee stock compensation | 117 | 112 | 80 | |
Expense related to restricted stock units for directors' deferred compensation plan | 94 | 99 | 87 | |
Expense to employee restricted stock awards | 151 | 131 | 80 | |
Net cash provided by operating activities | 5,310 | 4,503 | 6,758 | |
Cash flow from financing activities: | ||||
Cash dividends paid | -4,796 | -3,583 | -5,714 | |
Purchase of treasury stock | 0 | -93 | -636 | |
Sale of treasury stock | 0 | 71 | 258 | |
Net cash provided by financing activities | -4,796 | -3,605 | -6,092 | |
Increase (Decrease) in cash and cash equivalents | 514 | 898 | 666 | |
Cash and cash equivalents, beginning of period | 2,686 | 1,788 | 1,122 | |
Cash and cash equivalents, end of period | 3,200 | 2,686 | 1,788 | |
Parent Company [Member] | Chemung Canal Trust Company [Member] | ||||
Assets: | ||||
Investment in subsidiary | 128,081 | 133,557 | ||
STATEMENTS OF INCOME [Abstract] | ||||
Equity in undistributed earnings | 3,307 | 3,873 | 6,411 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in undistributed earnings | -3,307 | -3,873 | -6,411 | |
Parent Company [Member] | CFS Group Inc. [Member] | ||||
Assets: | ||||
Investment in subsidiary | 908 | 779 | ||
STATEMENTS OF INCOME [Abstract] | ||||
Equity in undistributed earnings | 129 | 139 | 54 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in undistributed earnings | ($129) | ($139) | ($54) |
FAIR_VALUES_Details
FAIR VALUES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets [Abstract] | ||
Total available for sale securities | $280,507 | $346,016 |
Trading assets | 549 | 366 |
Recurring [Member] | ||
Financial Assets [Abstract] | ||
Obligations of U.S. Government and U.S. Government sponsored enterprises | 181,673 | 188,106 |
Mortgage-backed securities, residential | 61,660 | 104,356 |
Collateralized mortgage obligations | 338 | 1,015 |
Obligations of states and political subdivisions | 31,451 | 38,376 |
Corporate bonds and notes | 1,533 | 2,946 |
SBA loan pools | 1,304 | 1,488 |
Trust Preferred securities | 2,028 | 2,034 |
Corporate stocks | 520 | 7,695 |
Total available for sale securities | 280,507 | 346,016 |
Trading assets | 549 | 366 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial Assets [Abstract] | ||
Obligations of U.S. Government and U.S. Government sponsored enterprises | 31,115 | 31,262 |
Mortgage-backed securities, residential | 0 | 0 |
Collateralized mortgage obligations | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate bonds and notes | 0 | 0 |
SBA loan pools | 0 | 0 |
Trust Preferred securities | 0 | 0 |
Corporate stocks | 104 | 7,279 |
Total available for sale securities | 31,219 | 38,541 |
Trading assets | 549 | 366 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets [Abstract] | ||
Obligations of U.S. Government and U.S. Government sponsored enterprises | 150,558 | 156,844 |
Mortgage-backed securities, residential | 61,660 | 104,356 |
Collateralized mortgage obligations | 338 | 1,015 |
Obligations of states and political subdivisions | 31,451 | 38,376 |
Corporate bonds and notes | 1,533 | 2,946 |
SBA loan pools | 1,304 | 1,488 |
Trust Preferred securities | 2,028 | 2,034 |
Corporate stocks | 416 | 416 |
Total available for sale securities | 249,288 | 307,475 |
Trading assets | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Assets [Abstract] | ||
Obligations of U.S. Government and U.S. Government sponsored enterprises | 0 | 0 |
Mortgage-backed securities, residential | 0 | 0 |
Collateralized mortgage obligations | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate bonds and notes | 0 | 0 |
SBA loan pools | 0 | 0 |
Trust Preferred securities | 0 | 0 |
Corporate stocks | 0 | 0 |
Total available for sale securities | 0 | 0 |
Trading assets | 0 | 0 |
Non-recurring [Member] | Impaired Loans [Member] | ||
Commercial and agricultural [Abstract] | ||
Commercial and industrial | 460 | |
Commercial mortgages [Abstract] | ||
Commercial mortgages other | 3,593 | 485 |
Consumer loans [Abstract] | ||
Home equity lines and loans | 52 | 54 |
Total impaired loans/ other real estate owned, net | 3,645 | 999 |
Non-recurring [Member] | Other Real Estate Owned [Member] | ||
Commercial and agricultural [Abstract] | ||
Commercial and industrial | 101 | |
Commercial mortgages [Abstract] | ||
Commercial mortgages other | 3,063 | 266 |
Residential mortgages | 106 | |
Consumer loans [Abstract] | ||
Home equity lines and loans | 2 | 65 |
Total impaired loans/ other real estate owned, net | 3,065 | 538 |
Non-recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | ||
Commercial and agricultural [Abstract] | ||
Commercial and industrial | 0 | |
Commercial mortgages [Abstract] | ||
Commercial mortgages other | 0 | 0 |
Consumer loans [Abstract] | ||
Home equity lines and loans | 0 | 0 |
Total impaired loans/ other real estate owned, net | 0 | 0 |
Non-recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Real Estate Owned [Member] | ||
Commercial and agricultural [Abstract] | ||
Commercial and industrial | 0 | |
Commercial mortgages [Abstract] | ||
Commercial mortgages other | 0 | 0 |
Residential mortgages | 0 | |
Consumer loans [Abstract] | ||
Home equity lines and loans | 0 | 0 |
Total impaired loans/ other real estate owned, net | 0 | 0 |
Non-recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | ||
Commercial and agricultural [Abstract] | ||
Commercial and industrial | 0 | |
Commercial mortgages [Abstract] | ||
Commercial mortgages other | 0 | 0 |
Consumer loans [Abstract] | ||
Home equity lines and loans | 0 | 0 |
Total impaired loans/ other real estate owned, net | 0 | 0 |
Non-recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Real Estate Owned [Member] | ||
Commercial and agricultural [Abstract] | ||
Commercial and industrial | 0 | |
Commercial mortgages [Abstract] | ||
Commercial mortgages other | 0 | 0 |
Residential mortgages | 0 | |
Consumer loans [Abstract] | ||
Home equity lines and loans | 0 | 0 |
Total impaired loans/ other real estate owned, net | 0 | 0 |
Non-recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Commercial and agricultural [Abstract] | ||
Commercial and industrial | 460 | |
Commercial mortgages [Abstract] | ||
Commercial mortgages other | 2,905 | 485 |
Consumer loans [Abstract] | ||
Home equity lines and loans | 52 | 54 |
Total impaired loans/ other real estate owned, net | 2,957 | 999 |
Non-recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Real Estate Owned [Member] | ||
Commercial and agricultural [Abstract] | ||
Commercial and industrial | 101 | |
Commercial mortgages [Abstract] | ||
Commercial mortgages other | 3,063 | 266 |
Residential mortgages | 106 | |
Consumer loans [Abstract] | ||
Home equity lines and loans | 2 | 65 |
Total impaired loans/ other real estate owned, net | $3,065 | $538 |
FAIR_VALUES_Unobservable_Input
FAIR VALUES, Unobservable Input Reconciliation (Details) (Trust Preferred Securities Available for Sale [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Trust Preferred Securities Available for Sale [Member] | ||
Reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Rollforward] | ||
Beginning balance | $0 | $445,600 |
Included in earnings [Abstract] | ||
Impairment charge on investment securities | 0 | -29,025 |
Included in other comprehensive income | 0 | 183,425 |
Transfers in and/or out of Level 3 | 0 | -600,000 |
Ending balance | $0 | $0 |
FAIR_VALUES_Quantitative_Infor
FAIR VALUES, Quantitative Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Impaired loan valuation allowance | $1,235 | $1,046 | |
Provision for loan losses | 3,981 | 2,755 | 828 |
Write down of OREO | 4,278 | 1,493 | 1,273 |
Impaired Loans [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Principal balance of impaired loans | 4,900 | 2,000 | |
Impaired loan valuation allowance | 1,200 | 1,000 | |
Provision for loan losses | 232 | 853 | |
OREO [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Net carrying amount of OREO | 3,100 | 538 | |
Outstanding balance of OREO | 3,100 | 732 | |
Other real estate owned valuation allowance | 2 | 194 | |
Write down of OREO | 2 | ||
Non-recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Third Party Real Estate and a 100% Discount of Personal Property [Member] | Impaired Loans [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair value | 3,645 | 999 | |
Unobservable input 1 | Management discount based on underlying collateral characteristics and market conditions | Management discount based on underlying collateral characteristics and market conditions | |
Non-recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Third Party Appraisals [Member] | OREO [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair value | $3,065 | $538 | |
Unobservable input 1 | Estimated holding period | Estimated holding period | |
Unobservable input 2 | Estimated closing costs | Estimated closing costs |
FAIR_VALUES_Carrying_Amounts_a
FAIR VALUES, Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Financial Assets [Abstract] | |||||
Cash and due from financial institutions | $28,130 | $31,600 | |||
Interest-bearing deposits in other financial institutions | 1,033 | 20,009 | |||
Available for sale securities | 280,507 | 346,016 | |||
Securities held to maturity | 5,831 | 6,495 | |||
Loans, net | 1,107,888 | 983,090 | |||
Loans held for sale | 665 | 695 | |||
Accrued interest receivable | 2,780 | 2,597 | |||
Deposits [Abstract] | |||||
Time Deposits | 211,843 | 244,492 | |||
Securities sold under agreements to repurchase | 29,652 | 32,701 | 32,711 | ||
FHLBNY overnight advances | 30,830 | 0 | |||
FHLBNY term advances | 19,310 | 25,243 | |||
Dividends payable | 1,204 | 1,195 | 0 | ||
Carrying Amount [Member] | |||||
Financial Assets [Abstract] | |||||
Cash and due from financial institutions | 28,130 | 31,600 | |||
Interest-bearing deposits in other financial institutions | 1,033 | 20,009 | |||
Trading assets | 549 | 366 | |||
Available for sale securities | 280,507 | 346,016 | |||
Securities held to maturity | 5,831 | 6,495 | |||
FHLBNY and FRBNY stock | 5,535 | 4,482 | |||
Loans, net | 1,107,888 | 983,090 | |||
Loans held for sale | 665 | 695 | |||
Accrued interest receivable | 4,185 | 4,166 | |||
Deposits [Abstract] | |||||
Demand, savings, and insured money market accounts | 1,068,171 | 1,021,764 | |||
Time Deposits | 211,843 | 244,492 | |||
Securities sold under agreements to repurchase | 29,652 | 32,701 | |||
FHLBNY overnight advances | 30,830 | ||||
FHLBNY term advances | 19,310 | 25,243 | |||
Accrued interest payable | 237 | 336 | |||
Estimated Fair Value [Member] | |||||
Financial Assets [Abstract] | |||||
Cash and due from financial institutions | 28,130 | [1] | 31,600 | [1] | |
Interest-bearing deposits in other financial institutions | 1,033 | [1] | 20,009 | [1] | |
Trading assets | 549 | [1] | 366 | [1] | |
Available for sale securities | 280,507 | [1] | 346,016 | [1] | |
Securities held to maturity | 6,197 | [1] | 6,930 | [1] | |
Loans, net | 1,135,590 | [1] | 1,008,826 | [1] | |
Loans held for sale | 665 | [1] | 695 | [1] | |
Accrued interest receivable | 4,185 | [1] | 4,166 | [1] | |
Deposits [Abstract] | |||||
Demand, savings, and insured money market accounts | 1,068,171 | [1] | 1,021,764 | [1] | |
Time Deposits | 212,397 | [1] | 245,482 | [1] | |
Securities sold under agreements to repurchase | 30,853 | [1] | 33,636 | [1] | |
FHLBNY overnight advances | 30,832 | [1] | |||
FHLBNY term advances | 20,235 | [1] | 26,064 | [1] | |
Accrued interest payable | 237 | [1] | 336 | [1] | |
Estimated Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Financial Assets [Abstract] | |||||
Cash and due from financial institutions | 28,130 | 31,600 | |||
Interest-bearing deposits in other financial institutions | 1,033 | 20,009 | |||
Trading assets | 549 | 366 | |||
Available for sale securities | 31,219 | 38,541 | |||
Securities held to maturity | 0 | 0 | |||
FHLBNY and FRBNY stock | 0 | 0 | |||
Loans, net | 0 | 0 | |||
Loans held for sale | 0 | 0 | |||
Accrued interest receivable | 145 | 145 | |||
Deposits [Abstract] | |||||
Demand, savings, and insured money market accounts | 1,068,171 | 1,021,764 | |||
Time Deposits | 0 | 0 | |||
Securities sold under agreements to repurchase | 0 | 0 | |||
FHLBNY overnight advances | 0 | ||||
FHLBNY term advances | 0 | 0 | |||
Accrued interest payable | 15 | 15 | |||
Estimated Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Financial Assets [Abstract] | |||||
Cash and due from financial institutions | 0 | 0 | |||
Interest-bearing deposits in other financial institutions | 0 | 0 | |||
Trading assets | 0 | 0 | |||
Available for sale securities | 249,288 | 307,475 | |||
Securities held to maturity | 6,197 | 6,930 | |||
FHLBNY and FRBNY stock | 0 | 0 | |||
Loans, net | 0 | 0 | |||
Loans held for sale | 665 | 695 | |||
Accrued interest receivable | 1,295 | 1,468 | |||
Deposits [Abstract] | |||||
Demand, savings, and insured money market accounts | 0 | 0 | |||
Time Deposits | 212,397 | 245,482 | |||
Securities sold under agreements to repurchase | 30,853 | 33,636 | |||
FHLBNY overnight advances | 30,832 | ||||
FHLBNY term advances | 20,235 | 26,064 | |||
Accrued interest payable | 222 | 170 | |||
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Financial Assets [Abstract] | |||||
Cash and due from financial institutions | 0 | 0 | |||
Interest-bearing deposits in other financial institutions | 0 | 0 | |||
Trading assets | 0 | 0 | |||
Available for sale securities | 0 | 0 | |||
Securities held to maturity | 0 | 0 | |||
FHLBNY and FRBNY stock | 0 | 0 | |||
Loans, net | 1,135,590 | 1,008,826 | |||
Loans held for sale | 0 | 0 | |||
Accrued interest receivable | 2,745 | 2,553 | |||
Deposits [Abstract] | |||||
Demand, savings, and insured money market accounts | 0 | 0 | |||
Time Deposits | 0 | 0 | |||
Securities sold under agreements to repurchase | 0 | 0 | |||
FHLBNY overnight advances | 0 | ||||
FHLBNY term advances | 0 | 0 | |||
Accrued interest payable | $0 | $151 | |||
[1] | Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
REGULATORY_CAPITAL_REQUIREMENT2
REGULATORY CAPITAL REQUIREMENTS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
REGULATORY CAPITAL REQUIREMENTS [Abstract] | ||
Net profits period for accessing dividends declarable | 2 years | |
Declarable dividends without prior approval for next fiscal year | $13,600 | |
Total Capital (to Risk Weighted Assets) [Abstract] | ||
Actual | 129,211 | 126,299 |
Required To Be Adequately Capitalized | 87,271 | 83,484 |
Tier 1 Capital (to Risk Weighted Assets) [Abstract] | ||
Actual | 115,483 | 110,260 |
Required To Be Adequately Capitalized | 43,636 | 41,742 |
Tier 1 Capital (to Average Assets) [Abstract] | ||
Actual | 115,483 | 110,260 |
Required To Be Adequately Capitalized | 44,556 | 40,940 |
Risk Based Ratios [Abstract] | ||
Capital to Risk Weighted Assets (in hundredths) | 11.84% | 12.10% |
Capital Required To Be Adequately Capitalized to Risk Weighted Assets (in hundredths) | 8.00% | 8.00% |
Tier One Risk Based Capital to Risk Weighted Assets (in hundredths) | 10.59% | 10.57% |
Tier One Risk Based Capital Required To Be Adequately Capitalized to Risk Weighted Assets (in hundredths) | 4.00% | 4.00% |
Leverage Ratios [Abstract] | ||
Tier One Leverage Capital to Average Assets (in hundredths) | 7.78% | 8.08% |
Tier One Leverage Capital Required To Be Adequately Capitalized to Average Assets (in hundredths) | 3.00% | 3.00% |
Bank [Member] | ||
Total Capital (to Risk Weighted Assets) [Abstract] | ||
Actual | 123,685 | 121,222 |
Required To Be Adequately Capitalized | 87,178 | 83,369 |
Required To Be Well Capitalized | 108,972 | 104,211 |
Tier 1 Capital (to Risk Weighted Assets) [Abstract] | ||
Actual | 110,014 | 105,239 |
Required To Be Adequately Capitalized | 43,589 | 41,684 |
Required To Be Well Capitalized | 65,383 | 62,527 |
Tier 1 Capital (to Average Assets) [Abstract] | ||
Actual | 110,014 | 105,239 |
Required To Be Adequately Capitalized | 44,512 | 40,900 |
Required To Be Well Capitalized | $74,187 | $68,167 |
Risk Based Ratios [Abstract] | ||
Capital to Risk Weighted Assets (in hundredths) | 11.35% | 11.63% |
Capital Required To Be Adequately Capitalized to Risk Weighted Assets (in hundredths) | 8.00% | 8.00% |
Capital Required To Be Well Capitalized to Risk Weighted Assets (in hundredths) | 10.00% | 10.00% |
Tier One Risk Based Capital to Risk Weighted Assets (in hundredths) | 10.10% | 10.10% |
Tier One Risk Based Capital Required To Be Adequately Capitalized to Risk Weighted Assets (in hundredths) | 4.00% | 4.00% |
Tier One Risk Based Capital Required To Be Well Capitalized to Risk Weighted Assets (in hundredths) | 6.00% | 6.00% |
Leverage Ratios [Abstract] | ||
Tier One Leverage Capital to Average Assets (in hundredths) | 7.41% | 7.72% |
Tier One Leverage Capital Required To Be Adequately Capitalized to Average Assets (in hundredths) | 3.00% | 3.00% |
Tier One Leverage Capital Required To Be Well Capitalized to Average Assets (in hundredths) | 5.00% | 5.00% |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Summary of changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | |||||
Balance at beginning of period | $155 | ($2,807) | |||
Other comprehensive income (loss) before reclassification | -5,075 | 2,006 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | -3,865 | 956 | |||
Net current period other comprehensive loss | -8,940 | 2,962 | |||
Balance at end of period | -8,785 | 155 | -2,807 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Total impairment losses | 0 | 29 | 0 | ||
Net losses on securities transactions | 6,869 | 16 | 301 | ||
Pension and other employee benefits | 5,733 | 5,939 | 5,624 | ||
Income tax benefit (expense) | 3,709 | 3,822 | 5,385 | ||
Net of tax | 8,157 | 8,731 | 11,022 | ||
Reclassification out of Accumulated Other Comprehensive Income (loss) [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Net of tax | -3,865 | 956 | |||
Unrealized Gains and Losses on Securities Available for Sale [Member] | |||||
Summary of changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | |||||
Balance at beginning of period | 6,043 | 8,023 | |||
Other comprehensive income (loss) before reclassification | 146 | -1,988 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | -4,229 | 8 | |||
Net current period other comprehensive loss | -4,083 | -1,980 | |||
Balance at end of period | 1,960 | 6,043 | |||
Unrealized Gains and Losses on Securities Available for Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income (loss) [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Total impairment losses | 0 | 29 | |||
Net losses on securities transactions | -6,869 | -16 | |||
Income tax benefit (expense) | 2,640 | -5 | |||
Net of tax | -4,229 | 8 | |||
Defined Benefit and Other Benefit Plans [Member] | |||||
Summary of changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | |||||
Balance at beginning of period | -5,888 | -10,830 | |||
Other comprehensive income (loss) before reclassification | -5,221 | 3,994 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 364 | 948 | |||
Net current period other comprehensive loss | -4,857 | 4,942 | |||
Balance at end of period | -10,745 | -5,888 | |||
Defined Benefit and Other Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income (loss) [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax benefit (expense) | -227 | -593 | |||
Net of tax | 364 | 948 | |||
Prior Service Costs [Member] | Reclassification out of Accumulated Other Comprehensive Income (loss) [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pension and other employee benefits | -90 | [1] | -83 | [1] | |
Actuarial Losses [Member] | Reclassification out of Accumulated Other Comprehensive Income (loss) [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pension and other employee benefits | $681 | [1] | $1,624 | [1] | |
[1] | (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other benefit plan costs (see Note 11 for additional information). |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | |||
SEGMENT REPORTING [Abstract] | |||
Number of primary business segment | 2 | ||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Net interest income | $49,568 | $46,631 | $46,842 |
Provision for loan losses | 3,981 | 2,755 | 828 |
Net interest income after provision for loan losses | 45,587 | 43,876 | 46,014 |
Other operating income | 26,756 | 18,077 | 17,188 |
Legal settlements | 4,250 | 0 | 0 |
Other operating expenses | 56,227 | 49,400 | 46,795 |
Income (loss) before income tax expense | 11,866 | 12,553 | 16,407 |
Income tax benefit | 3,709 | 3,822 | 5,385 |
Net income | 8,157 | 8,731 | 11,022 |
Segment assets | 1,524,539 | 1,476,143 | 1,248,160 |
Holding Company and Other [Member] | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Net interest income | 12 | 10 | 8 |
Provision for loan losses | 0 | 0 | 0 |
Net interest income after provision for loan losses | 12 | 10 | 8 |
Other operating income | 824 | 820 | 764 |
Legal settlements | 0 | ||
Other operating expenses | 875 | 784 | 856 |
Income (loss) before income tax expense | -39 | 46 | -84 |
Income tax benefit | -83 | -34 | -122 |
Net income | 44 | 80 | 38 |
Segment assets | 1,598 | 1,718 | 2,252 |
Operating Segments [Member] | Core Banking [Member] | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Net interest income | 49,556 | 46,621 | 46,834 |
Provision for loan losses | 3,981 | 2,755 | 828 |
Net interest income after provision for loan losses | 45,575 | 43,866 | 46,006 |
Other operating income | 18,186 | 9,913 | 9,597 |
Legal settlements | 0 | ||
Other operating expenses | 49,997 | 43,136 | 40,550 |
Income (loss) before income tax expense | 13,764 | 10,643 | 15,053 |
Income tax benefit | 4,507 | 3,139 | 4,954 |
Net income | 9,257 | 7,504 | 10,099 |
Segment assets | 1,518,584 | 1,469,482 | 1,240,752 |
Operating Segments [Member] | Wealth Management Group Services [Member] | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Net interest income | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 |
Net interest income after provision for loan losses | 0 | 0 | 0 |
Other operating income | 7,746 | 7,344 | 6,827 |
Legal settlements | 4,250 | ||
Other operating expenses | 5,355 | 5,480 | 5,389 |
Income (loss) before income tax expense | -1,859 | 1,864 | 1,438 |
Income tax benefit | -715 | 717 | 553 |
Net income | -1,144 | 1,147 | 885 |
Segment assets | $4,357 | $4,943 | $5,156 |
BRANCH_ACQUISITION_Details
BRANCH ACQUISITION (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 | Nov. 23, 2013 |
Branch | |||||
Assets acquired and deposits assumed [Abstract] | |||||
Gain from bargain purchase | $0 | $470 | $0 | ||
Bank of America Branch Offices [Member] | |||||
Assets acquired and deposits assumed [Abstract] | |||||
Cash, net | 170,904 | ||||
Loans | 1,240 | ||||
Bank premises and equipment | 4,081 | ||||
Core deposit intangible asset | 2,155 | ||||
Other assets | 350 | ||||
Total assets acquired | 178,730 | ||||
Deposits assumed | 177,749 | ||||
Time deposit premium | 263 | ||||
Other liabilities | 718 | ||||
Total liabilities assumed | 178,730 | ||||
Number of branches acquired | 6 | ||||
Gain from bargain purchase | $470 | ||||
Bank of America Branch Offices [Member] | Core Deposit Intangibles [Member] | |||||
Assets acquired and deposits assumed [Abstract] | |||||
Amortization period | 7 years |