Dime Community Bancshares (DCOM) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 05, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	BRIDGE BANCORP INC
Entity Central Index Key	846,617
Trading Symbol	bdge
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		17,470,686
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 50,581	$ 79,750
Interest earning deposits with banks	29,015	24,808
Total cash and cash equivalents	79,596	104,558
Securities available for sale, at fair value	627,083	800,203
Securities held to maturity (fair value of $229,174 and $210,003, respectively)	222,058	208,351
Total securities	849,141	1,008,554
Securities, restricted	20,894	24,788
Loans held for investments	2,524,926	2,410,774
Allowance for loan losses	(22,708)	(20,744)
Loans, net	2,502,218	2,390,030
Premises and equipment, net	34,712	39,595
Accrued interest receivable	8,916	9,270
Goodwill	105,950	98,445
Other intangible assets	7,088	8,376
Prepaid pension	8,252	6,047
Bank owned life insurance	84,117	53,314
Other real estate owned		250
Other assets	42,401	38,732
Total Assets	3,743,285	3,781,959
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits	1,111,993	1,156,882
Savings, NOW and money market deposits	1,551,191	1,393,888
Certificates of deposit of $100,000 or more	101,542	167,750
Other time deposits	88,937	125,105
Total deposits	2,853,663	2,843,625
Federal Funds Purchased	150,000	120,000
Federal Home Loan Bank advances	198,842	297,507
Repurchase agreements	50,895	50,891
Subordinated debentures	78,432	78,363
Junior subordinated debentures	15,525	15,878
Other liabilities and accrued expenses	37,847	34,567
Total Liabilities	3,385,204	3,440,831
Commitments and Contingencies
Stockholders' equity:
Preferred stock, par value $.01 per share (2,000,000 shares authorized; none issued)
Common stock, par value $.01 per share: Authorized: 40,000,000 shares; 17,467,534 and 17,388,918 shares issued, respectively; 17,459,242 and 17,388,918 shares outstanding, respectively	175	174
Surplus	280,130	278,333
Retained earnings	81,670	72,243
Treasury Stock at cost, 8,292 and 0 shares, respectively	(236)
Total stockholders' equity before accumulated other comprehensive income (loss)	361,739	350,750
Accumulated other comprehensive loss, net of income tax	(3,658)	(9,622)
Total Stockholders' Equity	358,081	341,128
Total Liabilities and Stockholders' Equity	$ 3,743,285	$ 3,781,959

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Consolidated Balance Sheets
Securities held to maturity, fair value (in dollars)	$ 229,174	$ 210,003
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	17,467,534	17,388,918
Common stock, shares outstanding	17,459,242	17,388,918
Treasury Stock, shares	8,292	0

Consolidated Statements of Inco

Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest income:
Loans (including fee income)	$ 29,228	$ 18,471	$ 57,177	$ 34,961
Mortgage-backed securities, CMOs and other asset-backed securities	3,648	2,468	7,497	5,035
U.S. GSE securities	296	381	652	786
State and municipal obligations	943	747	1,837	1,493
Corporate Bonds	279	184	556	369
Deposits with banks	35	11	72	18
Other interest and dividend income	304	118	549	225
Total interest income	34,733	22,380	68,340	42,887
Interest expense:
Savings, NOW and money market deposits	1,289	832	2,567	1,605
Certificates of deposit of $100,000 or more	116	217	331	407
Other time deposits	123	131	317	243
Federal funds purchased and repurchase agreements	293	92	478	238
Federal Home Loan Bank advances	844	339	1,671	589
Subordinated debentures	1,135		2,270
Junior subordinated debentures	343	342	684	683
Total interest expense	4,143	1,953	8,318	3,765
Net interest income	30,590	20,427	60,022	39,122
Provision for loan losses	900	700	2,150	1,500
Net interest income after provision for loan losses	29,690	19,727	57,872	37,622
Non interest income:
Service charges on deposit accounts	1,060	863	2,133	1,716
Fees for other customer services	1,031	788	1,950	1,386
Net securities gains (losses)	383		449	(10)
Title fee income	437	492	914	955
Other operating income	1,358	384	2,818	1,284
Total non interest income	4,269	2,527	8,264	5,331
Non interest expense:
Salaries and employee benefits	10,616	7,557	21,153	15,080
Occupancy and equipment	3,259	2,257	6,183	4,460
Technology and communications	1,318	823	2,403	1,613
Marketing and advertising	1,209	850	1,966	1,423
Professional services	1,039	565	2,047	1,086
FDIC assessments	537	308	1,045	619
Acquisition costs		8,204	(270)	8,379
Amortization of other intangible assets	672	45	1,348	93
Other operating expenses	1,791	1,425	3,473	2,591
Total non interest expense	20,441	22,034	39,348	35,344
Income before income taxes	13,518	220	26,788	7,609
Income tax expense	4,664	(243)	9,308	2,383
Net income	$ 8,854	$ 463	$ 17,480	$ 5,226
Basic earnings per share (in dollars per share)	$ 0.51	$ 0.04	$ 1	$ 0.43
Diluted earnings per share (in dollars per share)	$ 0.50	$ 0.04	$ 0.99	$ 0.43

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements of Comprehensive Income
Net Income	$ 8,854	$ 463	$ 17,480	$ 5,226
Other comprehensive income (loss):
Change in unrealized net gains (losses) on securities available for sale, net of reclassifications and deferred income taxes	1,392	(2,167)	7,149	801
Adjustment to pension liability, net of reclassifications and deferred income taxes	58	108	119	162
Unrealized (losses) gains on cash flow hedge, net of reclassifications and deferred income taxes	(251)	196	(1,304)	(224)
Total other comprehensive income (loss)	1,199	(1,863)	5,964	739
Comprehensive income (loss)	$ 10,053	$ (1,400)	$ 23,444	$ 5,965

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Common Stock	Surplus	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive (Loss)	Total
Balance at Dec. 31, 2014	$ 117	$ 118,846	$ 64,547	$ (25)	$ (8,367)	$ 175,118
Increase (Decrease) in Stockholders' Equity
Net income			5,226			5,226
Shares issued under the dividend reinvestment plan		349				349
Shares issued in the acquisition of Community National Bank, net of offering costs (5,647,268 shares)	56	157,143				157,199
Stock awards granted and distributed	1	(212)		211
Stock awards forfeited		50		(50)
Repurchase of surrendered stock from vesting of restricted stock awards				(212)		(212)
Exercise of stock options		4		76		80
Income tax effect of stock plans		48				48
Share based compensation expense		752				752
Cash dividend declared, $0.46 per share			(5,392)			(5,392)
Other comprehensive income, net of deferred income taxes					739	739
Balance at Jun. 30, 2015	174	276,980	64,381		(7,628)	333,907
Balance at Dec. 31, 2015	174	278,333	72,243		(9,622)	341,128
Increase (Decrease) in Stockholders' Equity
Net income			17,480			17,480
Shares issued under the dividend reinvestment plan		447				447
Stock awards granted and distributed	1	(133)		132
Stock awards forfeited		81		(81)
Repurchase of surrendered stock from vesting of restricted stock awards				(308)		(308)
Exercise of stock options		(21)		21
Impact of modification of convertible trust preferred securities		356				356
Share based compensation expense		1,067				1,067
Cash dividend declared, $0.46 per share			(8,053)			(8,053)
Other comprehensive income, net of deferred income taxes					5,964	5,964
Balance at Jun. 30, 2016	$ 175	$ 280,130	$ 81,670	$ (236)	$ (3,658)	$ 358,081

Consolidated Statements of Sto7

Consolidated Statements of Stockholders' Equity (Parenthetical) (unaudited) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements of Stockholders' Equity
Cash dividend declared (in dollars per share)	$ 0.46	$ 0.46
Shares issued in the acquisition of Community National Bank (in shares)		5,647,268

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net Income	$ 17,480	$ 5,226
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,150	1,500
Depreciation and (accretion)	(3,438)	(1,647)
Net amortization on securities	3,185	2,320
Increase in cash surrender value of bank owned life insurance	(803)	(478)
Amortization of intangible assets	1,348	93
Share based compensation expense	1,067	752
Net securities (gains) losses	(449)	10
Decrease (increase) in accrued interest receivable	354	(2,157)
Small Business Administration ("SBA") loans originated for sale	(4,839)
Proceeds from sale of the guaranteed portion of SBA loans	5,400
Gain on sale of the guaranteed portion of SBA loans	(457)
Decrease (increase) in other assets	598	(7,123)
(Decrease) increase in accrued expenses and other liabilities	(4,688)	2,830
Net cash provided by operating activities	16,908	1,326
Cash flows from investing activities:
Purchases of securities available for sale	(182,100)	(90,479)
Purchases of securities, restricted	(256,768)	(190,472)
Purchases of securities held to maturity	(32,651)	(10,175)
Proceeds from sales of securities available for sale	264,358	73,788
Redemption of securities, restricted	260,662	190,102
Maturities, calls and principal payments of securities available for sale	100,636	61,736
Maturities, calls and principal payments of securities held to maturity	18,450	10,392
Net increase in loans	(117,318)	(190,049)
Proceeds from loan sale		1,861
Proceeds from sales of other real estate owned, net	278
Purchase of bank owned life insurance	(30,000)
Purchase of premises and equipment	(1,786)	(2,668)
Net cash acquired in business combination		24,628
Net cash provided by (used in) investing activities	23,761	(121,336)
Cash flows from financing activities:
Net increase in deposits	10,694	163,095
Net increase (decrease) in federal funds purchased	30,000	(5,000)
Net (decrease) increase in Federal Home Loan Bank advances	(98,415)	1,500
Net increase (decrease) in repurchase agreements	4	(9,690)
Net proceeds from issuance of common stock	447	349
Net proceeds from exercise of stock options		80
Repurchase of surrendered stock from vesting of restricted stock awards	(308)	(212)
Excess tax benefit from share based compensation		48
Cash dividends paid	(8,053)	(5,392)
Other, net		(303)
Net cash (used in) provided by financing activities	(65,631)	144,475
Net (decrease) increase in cash and cash equivalents	(24,962)	24,465
Cash and cash equivalents at beginning of period	104,558	51,730
Cash and cash equivalents at end of period	79,596	76,195
Cash paid for:
Interest	8,506	3,707
Income tax	$ 11,107	4,335
Acquisition of noncash assets and liabilities:
Fair value of assets acquired		875,482
Fair value of liabilities assumed		$ 828,081

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Bridge Bancorp, Inc. (the “Company”) is a bank holding company incorporated under the laws of the State of New York. The Company’s business currently consists of the operations of its wholly-owned subsidiary, The Bridgehampton National Bank (the “Bank”). The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc. (“BCI”), a financial title insurance subsidiary, Bridge Abstract LLC (“Bridge Abstract”), and The accompanying Unaudited Consolidated Financial Statements, which include the accounts of the Company and its wholly-owned subsidiary, the Bank, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The Unaudited Consolidated Financial Statements included herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Such estimates are subject to change in the future as additional information becomes available or previously existing circumstances are modified. Actual future results could differ significantly from those estimates. The annualized results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain reclassifications have been made to prior year amounts, and the related discussion and analysis, to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders’ equity. The Unaudited Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2016
EARNINGS PER SHARE
EARNINGS PER SHARE	2. EARNINGS PER SHARE Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards and certain restricted stock units granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. The computation of EPS for the three and six months ended June 30, 2016 and 2015 is as follows: Three months ended, Six months ended June 30, June 30, (In thousands, except per share data) 2016 2015 2016 2015 Net Income $ 8,854 $ 463 $ 17,480 $ 5,226 Dividends paid on and earnings allocated to participating securities (181 ) (16 ) (351 ) (131 ) Income attributable to common stock $ 8,673 $ 447 $ 17,129 $ 5,095 Weighted average common shares outstanding, including participating securities 17,507 12,488 17,493 12,106 Weighted average participating securities (358 ) (305 ) (356 ) (303 ) Weighted average common shares outstanding 17,149 12,183 17,137 11,803 Basic earnings per common share $ 0.51 $ 0.04 $ 1.00 $ 0.43 Income attributable to common stock $ 8,673 $ 447 $ 17,129 $ 5,095 Impact of assumed conversions - interest on 8.5% trust preferred securities 223 - 444 - Income attributable to common stock including assumed conversions $ 8,896 $ 447 $ 17,573 $ 5,095 Weighted average common shares outstanding 17,149 12,183 17,137 11,803 Incremental shares from assumed conversions of options and restricted stock units 14 3 9 3 Incremental shares from assumed conversions of 8.5% trust preferred securities 530 - 523 - Weighted average common and equivalent shares outstanding 17,693 12,186 17,669 11,806 Diluted earnings per common share $ 0.50 $ 0.04 $ 0.99 $ 0.43 There were no stock options that were antidilutive at June 30, 2016. There were 34,739 options outstanding at June 30, 2015 that were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. The $16.0 million in convertible trust preferred securities outstanding at June 30, 2016 and 2015, were dilutive for the three and six months ended June 30, 2016 and therefore were included in the computation of diluted earnings per share for those periods but were not included in the computation of diluted earnings per share for the three and six months ended June 30, 2015 because the assumed conversion of the trust preferred securities was antidilutive during those periods.

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS	6 Months Ended
	Jun. 30, 2016
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS	3. STOCK BASED COMPENSATION PLANS The Compensation Committee of the Board of Directors determines stock options and restricted stock awarded under the Bridge Bancorp, Inc. Equity Incentive Plan (“Plan”) and the Company accounts for this Plan under the FASB ASC No new grants of stock options were awarded and no compensation expense was attributable to stock options for the six months ended June 30, 2016 and 2015 because all stock options were vested. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of our common stock as of the exercise or reporting date. The intrinsic value of options exercised during the six months ended June 30, 2016 and 2015 was $38,000 and $3,000, respectively. The intrinsic value of options outstanding and exercisable at June 30, 2016 and 2015 was $48,000 and $50,000, respectively. A summary of the status of the Company’s stock options as of and for the six months ended June 30, 2016 is as follows: Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic (Dollars in thousands, except per share amounts) Options Price Life Value Outstanding, January 1, 2016 23,725 $ 25.25 Exercised (8,333 ) $ 25.25 Outstanding, June 30, 2016 15,392 $ 25.25 0.41 years $ 48 Vested and Exercisable, June 30, 2016 15,392 $ 25.25 0.41 years $ 48 Number of Exercise Options Price Range of Exercise Prices 15,392 $ 25.25 During the six months ended June 30, 2016, restricted stock awards of 66,809 shares were granted. Of the 66,809 shares granted, 36,000 shares vest over seven years with a third vesting after years five, six and seven, 27,209 shares vest over five years with a third vesting after years three, four and five, and 3,600 shares vest ratably over three years. During the six months ended June 30, 2015, restricted stock awards of 64,987 shares were granted. Of the 64,987 shares granted, 30,625 shares vest over seven years with a third vesting after years five, six and seven, 24,812 shares vest over five years with a third vesting after years three, four and five and the remaining 9,550 shares vest ratably over five years. Compensation expense attributable to restricted stock awards was $387,000 and $738,000 for the three and six months ended June 30, 2016, respectively, and $302,000 and $604,000 for the three and six months ended June 30, 2015, respectively. A summary of the status of the Company’s unvested restricted stock as of and for the six months ended June 30, 2016 is as follows: Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2016 281,076 $ 23.46 Granted 66,809 $ 27.91 Vested (38,152 ) $ 22.01 Forfeited (3,266 ) $ 24.91 Unvested, June 30, 2016 306,467 $ 24.60 Effective in 2015, the Board revised the design of the Long Term Incentive Plan (“LTI Plan”) for Named Executive Officers (“NEOs”) to include performance based awards. The LTI Plan includes 60% performance vested awards based on 3-year relative Total Shareholder Return (“TSR”) to the proxy peer group and 40% time vested awards. The awards are in the form of restricted stock units and cliff vest after five years and require an additional two year holding period before the restricted stock units are delivered in shares of common stock. The Company recorded expense of approximately $51,000 and $91,000 in connection with these awards for the three and six months ended June 30, 2016, respectively, and approximately $22,000 and $36,000 for the three and six months ended June 30, 2015, respectively. In April 2009, the Company adopted a Directors Deferred Compensation Plan (“Directors Plan”). Under the Directors Plan, independent directors may elect to defer all or a portion of their annual retainer fee in the form of restricted stock units. In addition, Directors receive a non-election retainer in the form of restricted stock units. These restricted stock units vest ratably over one year and have dividend rights but no voting rights. In connection with the Directors Plan, the Company recorded expenses of approximately $123,000 and $238,000 for the three and six months ended June 30, 2016, respectively, and $78,000 and $112,000 for the three and six months ended June 30, 2015, respectively.

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2016
SECURITIES
SECURITIES	4. SECURITIES The following table summarizes the amortized cost and fair value of the available for sale and held to investment securities portfolio at and December 31, 2015 and the corresponding amounts of unrealized gains and losses therein: June 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. GSE securities $ 58,242 $ 84 $ (1 ) $ 58,325 State and municipal obligations 108,184 2,400 (28 ) 110,556 U.S. GSE residential mortgage-backed securities 100,685 1,393 (4 ) 102,074 U.S. GSE residential collateralized mortgage obligations 236,771 1,962 (135 ) 238,598 U.S. GSE commercial mortgage-backed securities 6,488 213 - 6,701 U.S. GSE commercial collateralized mortgage obligations 56,412 546 (47 ) 56,911 Other asset backed securities 24,250 - (1,940 ) 22,310 Corporate bonds 32,000 285 (677 ) 31,608 Total available for sale 623,032 6,883 (2,832 ) 627,083 Held to maturity: U.S. GSE securities - - - - State and municipal obligations 61,159 3,294 - 64,453 U.S. GSE residential mortgage-backed securities 11,837 107 - 11,944 U.S. GSE residential collateralized mortgage obligations 66,219 1,937 (33 ) 68,123 U.S. GSE commercial mortgage-backed securities 29,119 912 (53 ) 29,978 U.S. GSE commercial collateralized mortgage obligations 42,724 974 (51 ) 43,647 Corporate bonds 11,000 29 - 11,029 Total held to maturity 222,058 7,253 (137 ) 229,174 Total securities $ 845,090 $ 14,136 $ (2,969 ) $ 856,257 December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. GSE securities $ 63,238 $ - $ (564 ) $ 62,674 State and municipal obligations 87,830 427 (322 ) 87,935 U.S. GSE residential mortgage-backed securities 201,297 237 (1,270 ) 200,264 U.S. GSE residential collateralized mortgage obligations 321,253 513 (3,888 ) 317,878 U.S. GSE commercial mortgage-backed securities 12,491 7 (80 ) 12,418 U.S. GSE commercial collateralized mortgage obligations 64,809 9 (620 ) 64,198 Other asset backed securities 24,250 - (1,879 ) 22,371 Corporate bonds 33,000 - (535 ) 32,465 Total available for sale 808,168 1,193 (9,158 ) 800,203 Held to maturity: U.S. GSE securities $ 7,466 $ 1 $ - $ 7,467 State and municipal obligations 64,878 1,715 (113 ) 66,480 U.S. GSE residential mortgage-backed securities 7,609 - (106 ) 7,503 U.S. GSE residential collateralized mortgage obligations 60,933 617 (498 ) 61,052 U.S. GSE commercial mortgage-backed securities 23,056 210 (313 ) 22,953 U.S. GSE commercial collateralized mortgage obligations 33,409 282 (185 ) 33,506 Corporate bonds 11,000 42 - 11,042 Total held to maturity 208,351 2,867 (1,215 ) 210,003 Total securities $ 1,016,519 $ 4,060 $ (10,373 ) $ 1,010,206 The following table summarizes the amortized cost, fair value and maturities of the available for sale and held to investment securities portfolio at June 30, 2016 Amortized Fair (In thousands) Cost Value Maturity Available for sale: Within one year $ 14,277 $ 14,315 One to five years 74,503 75,060 Five to ten years 116,129 117,641 Beyond ten years 418,123 420,067 Total $ 623,032 $ 627,083 Held to maturity: Within one year $ 3,644 $ 3,665 One to five years 31,697 32,326 Five to ten years 67,599 71,025 Beyond ten years 119,118 122,158 Total $ 222,058 $ 229,174 Securities with unrealized losses at June 30, 2016 and December 31, 2015, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: June 30, 2016 Less than 12 months Greater than 12 months Unrealized Unrealized (In thousands) Fair Value Losses Fair Value Losses Available for sale: U.S. GSE securities $ 7,999 $ (1 ) $ - $ - State and municipal obligations 9,853 (27 ) 243 (1 ) U.S. GSE residential mortgage-backed securities - - 1,782 (4 ) U.S. GSE residential collateralized mortgage obligations 10,183 (48 ) 17,812 (87 ) U.S. GSE commercial mortgage-backed securities - - - - U.S. GSE commercial collateralized mortgage obligations 8,644 (22 ) 5,706 (25 ) Other asset backed securities - - 22,310 (1,940 ) Corporate bonds 17,406 (594 ) 4,918 (83 ) Total available for sale $ 54,085 $ (692 ) $ 52,771 $ (2,140 ) Held to maturity: U.S. GSE securities - - - - State and municipal obligations - - - - U.S. GSE residential mortgage-backed securities - - - - U.S. GSE residential collateralized mortgage obligations 218 - 4,457 (33 ) U.S. GSE commercial mortgage-backed securities 6,201 (53 ) - - U.S. GSE commercial collateralized mortgage obligations 4,899 (30 ) 3,969 (21 ) Corporate bonds - - - - Total held to maturity $ 11,318 $ (83 ) $ 8,426 $ (54 ) December 31, 2015 Less than 12 months Greater than 12 months Unrealized Unrealized (In thousands) Fair Value Losses Fair Value Losses Available for sale: U.S. GSE securities $ 37,759 $ (235 ) $ 24,914 $ (329 ) State and municipal obligations 39,621 (298 ) 5,118 (24 ) U.S. GSE residential mortgage-backed securities 136,025 (1,224 ) 1,510 (46 ) U.S. GSE residential collateralized mortgage obligations 187,543 (1,781 ) 66,830 (2,107 ) U.S. GSE commercial mortgage-backed securities 8,594 (80 ) - - U.S. GSE commercial collateralized mortgage obligations 51,178 (503 ) 10,034 (117 ) Other asset backed securities - - 22,371 (1,879 ) Corporate bonds 27,640 (360 ) 4,825 (175 ) Total available for sale $ 488,360 $ (4,481 ) $ 135,602 $ (4,677 ) Held to maturity: U.S. GSE securities $ - $ - $ - $ - State and municipal obligations 18,375 (113 ) - - U.S. GSE residential mortgage-backed securities 7,503 (106 ) - - U.S. GSE residential collateralized mortgage obligations 15,918 (149 ) 15,679 (349 ) U.S. GSE commercial mortgage-backed securities 13,982 (313 ) - - U.S. GSE commercial collateralized mortgage obligations 7,912 (8 ) 3,813 (177 ) Corporate bonds - - - - Total held to maturity $ 63,690 $ (689 ) $ 19,492 $ (526 ) Other-Than-Temporary Impairment Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities classified as available for sale or held to maturity are generally evaluated for OTTI under FASB ASC 320, Accounting for Certain Investments in Debt and Equity Securities The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. At , the majority of unrealized losses on the available for sale securities are related to the Company’s other asset backed securities and corporate bonds. The decrease in fair value of the other asset backed securities and corporate bonds is attributable to changes in interest rates and not credit quality. The Company does not have the intent to sell these securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery. Therefore, the Company does not consider these securities to be other-than-temporarily impaired at There were $235.7 million of proceeds from sales of securities with gross gains of approximately $1.3 million and gross losses of approximately $0.9 million realized for the three months ended June 30, 2016. There were $264.4 million of proceeds from sales of securities with gross gains of approximately $1.6 million and gross losses of approximately $1.2 million realized for the six months ended June 30, 2016. There were no sales of securities during the three months ended June 30, 2015. There were $73.8 million of proceeds from sales of securities with gross gains of approximately $0.5 million and gross losses of approximately $0.5 million realized for the six months ended June 30, 2015. Proceeds from calls of securities were $22.3 million and $53.0 million for the three and six months ended June 30, 2016, respectively. Proceeds from calls of securities were $10.3 million and $10.5 million for the three and six months ended June 30, 2015, respectively. Securities having a fair value of approximately $650.9 million and $611.0 million at June 30, 2016 and December 31, 2015 The Bank is a member of the FHLB of New York. Members are required to own a particular amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is a member of the Atlantic Central Banker’s Bank (“ACBB”) and is required to own ACBB stock. The Bank is also a member of the FRB system and required to own FRB stock. FHLB, ACBB and FRB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank owned approximately $20.9 million and $24.8 million in FHLB, ACBB and FRB stock at June 30, 2016 and December 31, 2015, respectively. These amounts were reported as restricted securities in the consolidated balance sheets.

ESTIMATED FAIR VALUE OF FINANCI

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2016
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS	5. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS FASB ASC No. 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: 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. Assets and liabilities measured on a recurring basis: June 30, 2016 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial Assets: Available for sale securities: U.S. GSE securities $ 58,325 $ 58,325 State and municipal obligations 110,556 110,556 U.S. GSE residential mortgage-backed securities 102,074 102,074 U.S. GSE residential collateralized mortgage obligations 238,598 238,598 U.S. GSE commercial mortgage-backed securities 6,701 6,701 U.S. GSE commercial collateralized mortgage obligations 56,911 56,911 Other asset backed securities 22,310 22,310 Corporate bonds 31,608 31,608 Total available for sale $ 627,083 $ 627,083 Derivatives $ 2,871 $ 2,871 Financial Liabilities: Derivatives $ 6,360 $ 6,360 December 31, 2015 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial Assets: Available for sale securities: U.S. GSE securities $ 62,674 $ 62,674 State and municipal obligations 87,935 87,935 U.S. GSE residential mortgage-backed securities 200,264 200,264 U.S. GSE residential collateralized mortgage obligations 317,878 317,878 U.S. GSE commercial mortgage-backed securities 12,418 12,418 U.S. GSE commercial collateralized mortgage obligations 64,198 64,198 Other asset backed securities 22,371 22,371 Corporate bonds 32,465 32,465 Total available for sale $ 800,203 $ 800,203 Derivatives $ 779 $ 779 Financial Liabilities: Derivatives $ 2,073 $ 2,073 Assets measured at fair value on a non-recurring basis are summarized below: June 30, 2016 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Impaired loans $ 84 — — $ 84 December 31, 2015 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Impaired loans $ 483 — — $ 483 Other real estate owned 250 — — 250 Impaired loans with allocated allowance for loan losses at June 30, 2016 had a carrying amount of $0.1 million, which is made up of the outstanding balance of $0.2 million, net of a valuation allowance of $0.1 million. This resulted in an additional provision for loan losses of $0.1 million that is included in the amount reported on the Consolidated Statements of Income. Impaired loans with allocated allowance for loan losses at December 31, 2015, had a carrying amount of $0.5 million, which is made up of the outstanding balance of $0.5 million, net of a valuation allowance of $0.03 million. This resulted in an additional provision for loan losses of $0.03 million that is included in the amount reported on the Consolidated Statements of Income. There was no other real estate owned at June 30, 2016. Other real estate owned at December 31, 2015 had a carrying amount of $0.3 million and no valuation allowance recorded. Accordingly, there was no additional provision for loan losses included in the amount reported on the Consolidated Statements of Income. The Company used the following methods and assumptions in estimating the fair value of its financial instruments: Cash and Due from Banks and Federal Funds Sold: Securities Available for Sale and Held to Maturity: Restricted Securities: Derivatives: Loans: Impaired Loans and Other Real Estate Owned: Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Credit Administration Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On a quarterly basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. Management also considers the appraisal values for commercial properties associated with current loan origination activity. Collectively, this information is reviewed to help assess current trends in commercial property values. For each collateral dependent impaired loan, management considers information that relates to the type of commercial property to determine if such properties may have appreciated or depreciated in value since the date of the most recent appraisal. Adjustments to fair value are made only when the analysis indicates a probable decline in collateral values. Adjustments made in the appraisal process are not deemed material to the overall consolidated financial statements given the level of impaired loans measured at fair value on a nonrecurring basis. Deposits: Borrowed Funds: Subordinated Debentures: Junior Subordinated Debentures: Accrued Interest Receivable and Payable: Off-Balance-Sheet Liabilities: Fair value estimates are made at specific points in time and are based on existing on-and off-balance sheet financial instruments. Such estimates are generally subjective in nature and dependent upon a number of significant assumptions associated with each financial instrument or group of financial instruments, including estimates of discount rates, risks associated with specific financial instruments, estimates of future cash flows, and relevant available market information. Changes in assumptions could significantly affect the estimates. In addition, fair value estimates do not reflect the value of anticipated future business, premiums or discounts that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, or the tax consequences of realizing gains or losses on the sale of financial instruments. The estimated fair values and recorded carrying amounts of the Company’s financial instruments at June 30, 2016 and December 31, 2015 are as follows: June 30, 2016 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Total Carrying Identical Assets Inputs Inputs Fair (In thousands) Amount (Level 1) (Level 2) (Level 3) Value Financial assets: Cash and due from banks $ 50,581 $ 50,581 $ - $ - $ 50,581 Interest bearing deposits with banks 29,015 - 29,015 - 29,015 Securities available for sale 627,083 - 627,083 - 627,083 Securities restricted 20,894 n/a n/a n/a n/a Securities held to maturity 222,058 - 229,174 - 229,174 Loans, net 2,502,218 - - 2,520,109 2,520,109 Derivatives 2,871 - 2,871 - 2,871 Accrued interest receivable 8,916 - 2,840 6,076 8,916 Financial liabilities: Certificates of deposit 190,479 - 191,657 - 191,657 Demand and other deposits 2,663,184 2,663,184 - - 2,663,184 Federal funds purchased 150,000 150,000 - - 150,000 Federal Home Loan Bank advances 198,842 40,000 161,990 - 201,990 Repurchase agreements 50,895 - 50,939 - 50,939 Subordinated Debentures 78,432 - - 84,810 84,810 Junior Subordinated Debentures 15,525 - - 17,709 17,709 Derivatives 6,360 - 6,360 - 6,360 Accrued interest payable 1,456 103 1,353 - 1,456 December 31, 2015 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Total Carrying Identical Assets Inputs Inputs Fair (In thousands) Amount (Level 1) (Level 2) (Level 3) Value Financial assets: Cash and due from banks $ 79,750 $ 79,750 $ - $ - $ 79,750 Interest bearing deposits with banks 24,808 - 24,808 - 24,808 Securities available for sale 800,203 - 800,203 - 800,203 Securities restricted 24,788 n/a n/a n/a n/a Securities held to maturity 208,351 - 210,003 - 210,003 Loans, net 2,390,030 - - 2,379,171 2,379,171 Derivatives 779 - 779 - 779 Accrued interest receivable 9,270 - 3,228 6,042 9,270 Financial liabilities: Certificates of deposit 292,855 - 293,368 - 293,368 Demand and other deposits 2,550,770 2,550,770 - - 2,550,770 Federal funds purchased 120,000 120,000 - - 120,000 Federal Home Loan Bank advances 297,507 197,243 100,772 - 298,015 Repurchase agreements 50,891 - 51,480 - 51,480 Subordinated Debentures 78,363 - - 78,830 78,830 Junior Subordinated Debentures 15,878 - - 16,566 16,566 Derivatives 2,073 - 2,073 - 2,073 Accrued interest payable 1,644 93 1,551 - 1,644

LOANS

LOANS	6 Months Ended
	Jun. 30, 2016
LOANS
LOANS	6. LOANS The following table sets forth the major classifications of loans: (In thousands) June 30, 2016 December 31, 2015 Commercial real estate mortgage loans $ 1,016,322 $ 999,474 Multi-family mortgage loans 427,277 350,793 Residential real estate mortgage loans 452,370 446,740 Commercial, industrial and agricultural loans 511,517 501,766 Real estate construction and land loans 96,683 91,153 Installment/consumer loans 17,235 17,596 Total loans 2,521,404 2,407,522 Net deferred loan costs and fees 3,522 3,252 2,524,926 2,410,774 Allowance for loan losses (22,708 ) (20,744 ) Net loans $ 2,502,218 $ 2,390,030 On June 19, 2015, the Company completed the acquisition of Community National Bank (“CNB”) resulting in the addition of $729.4 million of acquired loans recorded at their fair value. There were approximately $603.4 million and $659.7 million of acquired CNB loans remaining as of June 30, 2016 and December 31, 2015, respectively. On February 14, 2014, the Company completed the acquisition of FNBNY Bancorp, Inc. and its wholly owned subsidiary First National Bank of New York (collectively “FNBNY”) resulting in the addition of $89.7 million of acquired loans recorded at their fair value. There were approximately $32.4 million and $37.7 million of acquired FNBNY loans remaining as of June 30, 2016 and December 31, 2015, respectively. Lending Risk The principal business of the Bank is lending, primarily in commercial real estate mortgage loans, multi-family mortgage loans, residential real estate mortgage loans, construction loans, home equity loans, commercial, industrial and agricultural loans, land loans and consumer loans. The Bank considers its primary lending area to be Nassau and Suffolk Counties located on Long Island and a substantial portion of the Bank’s loans are secured by real estate in this area. Accordingly, the ultimate collectibility of such a loan portfolio is susceptible to changes in market and economic conditions in this region. Commercial Real Estate Mortgages Loans in this classification include income producing investment properties and owner occupied real estate used for business purposes. The underlying properties are generally located largely in our primary market area. The cash flows of the income producing investment properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on credit quality. Generally, management seeks to obtain annual financial information for borrowers with loans in excess of $0.25 million in this category. In the case of owner-occupied real estate used for business purposes, a weakened economy and resultant decreased consumer and/or business spending will have an adverse effect on credit quality. Multi-Family Mortgages Loans in this classification include income producing residential investment properties of 5 or more families. The loans are usually made in areas with limited single family residences generating high demand for these facilities. Loans are made to established owners with a proven and demonstrable record of strong performance. Loans are secured by a first mortgage lien on the subject property with a loan to value ratio generally not exceeding 75%. Repayment is derived generally from the rental income generated from the property and maybe supplemented by the owners’ personal cash flow. Credit risk arises with an increase in vacancy rates, property mismanagement and the predominance of non-recourse loans that are customary in the industry. Residential Real Estate Mortgages and Home Equity Loans Loans in these classifications are made to and secured by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, can have an effect on the credit quality in this loan class. The Bank generally does not originate loans with a loan-to-value ratio greater than 80% and does not grant subprime loans. Commercial, Industrial and Agricultural Loans Loans in this classification are made to businesses and include term loans, lines of credit, senior secured loans to corporations and taxi medallion loans. Generally these loans are secured by assets of the business and repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and/or business spending will have an effect on the credit quality in this loan class. Real Estate Construction and Land Loans Loans in this classification primarily include land loans to local individuals, contractors and developers for developing the land for sale or for the purpose of making improvements thereon. Repayment is derived primarily from sale of the lots/units including any pre-sold units. Credit risk is affected by market conditions, time to sell at an adequate price and cost overruns. To a lesser extent this class includes commercial development projects that the Company finances, which in most cases require interest only during construction, and then convert to permanent financing. Credit risk is affected by construction delays, cost overruns, market conditions and the availability of permanent financing, to the extent such permanent financing is not being provided by us. Installment and Consumer Loans Loans in this classification may be either secured or unsecured and repayment is dependent on the credit quality of the individual borrower and, if applicable, sale of the collateral securing the loan such as automobiles. Therefore, the overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this loan class. Credit Quality Indicators The Company categorizes loans into risk categories of pass, special mention, substandard and doubtful based on relevant information about the ability of borrowers to service their debt including repayment patterns, probable incurred losses, past loss experience, current economic conditions, and various types of concentrations of credit. Assigned risk rating grades are continuously updated as new information is obtained. Loans risk rated special mention, substandard and doubtful are reviewed on a quarterly basis. The Company uses the following definitions for risk rating grades: Pass: Special mention: Substandard: Doubtful: The following tables represent loans by class categorized by internally assigned risk grades as of June 30, 2016 and December 31, 2015: June 30, 2016 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 412,605 $ 2,541 $ 889 $ - $ 416,035 Non-owner occupied 595,001 510 4,776 - 600,287 Multi-Family 427,277 - - - 427,277 Residential real estate: Residential mortgage 382,246 85 2,076 - 384,407 Home equity 66,548 396 1,019 - 67,963 Commercial and Industrial: Secured 111,975 276 2,085 - 114,336 Unsecured 392,421 2,585 2,175 - 397,181 Real estate construction and land loans 96,343 - 340 - 96,683 Installment/consumer loans 17,135 - 100 - 17,235 Total loans $ 2,501,551 $ 6,393 $ 13,460 $ - $ 2,521,404 At June 30, 2016 there were $0.02 million and $4.3 million of acquired CNB loans included in the special mention and substandard grades, respectively, and $0.1 million and $0.2 million of acquired FNBNY loans included in the special mention and substandard grades, respectively. December 31, 2015 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 465,967 $ 3,239 $ 2,115 $ - $ 471,321 Non-owner occupied 519,124 542 8,487 - 528,153 Multi-Family 350,785 — 8 - 350,793 Residential real estate: Residential mortgage 377,482 87 845 - 378,414 Home equity 66,910 523 893 - 68,326 Commercial and Industrial: Secured 121,037 151 2,549 - 123,737 Unsecured 370,642 3,191 4,196 - 378,029 Real estate construction and land loans 91,153 — — - 91,153 Installment/consumer loans 17,496 — 100 - 17,596 Total loans $ 2,380,596 $ 7,733 $ 19,193 $ - $ 2,407,522 At December 31, 2015 there were $0.02 million and $9.6 million of acquired CNB loans included in the special mention and substandard grades, respectively, and $0.1 million and $0.2 million of acquired FNBNY loans included in the special mention and substandard grades, respectively. Past Due and Nonaccrual Loans The following tables represent the aging of the recorded investment in past due loans as of June 30, 2016 and December 31, 2015 by class of loans, as defined by FASB ASC 310-10: June 30, 2016 (In thousands) 30-59 60-89 > Past Due and Accruing Nonaccrual Total Past Current Total Loans Commercial real estate: Owner occupied $ 592 $ - $ 611 $ 211 $ 1,414 $ 414,621 $ 416,035 Non-owner occupied 1,855 - - - 1,855 598,432 600,287 Multi-Family - - - - - 427,277 427,277 Residential real estate: Residential mortgages 489 419 852 557 2,317 382,090 384,407 Home equity 119 121 223 909 1,372 66,591 67,963 Commercial and Industrial: Secured - - 208 - 208 114,128 114,336 Unsecured 122 46 - 369 537 396,644 397,181 Real estate construction and land loans - - - - - 96,683 96,683 Installment/consumer loans - 1 - 4 5 17,230 17,235 Total loans $ 3,177 $ 587 $ 1,894 $ 2,050 $ 7,708 $ 2,513,696 $ 2,521,404 December 31, 2015 (In thousands) 30-59 60-89 > Past Due and Accruing Nonaccrual Total Past Current Total Loans Commercial real estate: Owner occupied $ - $ - $ 435 $ 631 $ 1,066 $ 470,255 $ 471,321 Non-owner occupied - - - - - 528,153 528,153 Multi-Family - - - - - 350,793 350,793 Residential real estate: Residential mortgages 939 245 - 62 1,246 377,168 378,414 Home equity 69 100 188 610 967 67,359 68,326 Commercial and Industrial: Secured - - 341 - 341 123,396 123,737 Unsecured 128 24 - 44 196 377,833 378,029 Real estate construction and land loans - - - - - 91,153 91,153 Installment/consumer loans - - - 3 3 17,593 17,596 Total loans $ 1,136 $ 369 $ 964 $ 1,350 $ 3,819 $ 2,403,703 $ 2,407,522 At June 30, 2016 and December 31, 2015 there were no FNBNY acquired loans 30-89 days past due. At June 30, 2016, there were $3.3 million of CNB acquired loans that were 30-89 days past due. At December 31, 2015, there were $1.2 million of CNB acquired loans 30-89 days past due. All loans 90 days or more past due that are still accruing interest represent loans acquired from CNB, FNBNY and Hamptons State Bank (“HSB”) which were recorded at fair value upon acquisition. These loans are considered to be accruing as management can reasonably estimate future cash flows and expect to fully collect the carrying value of these acquired loans. Therefore, the difference between the carrying value of these loans and their expected cash flows is being accreted into income. Impaired Loans At June 30, 2016 and December 31, 2015, the Company had impaired loans as defined by FASB ASC No. 310, “Receivables” of $4.1 million and $2.6 million, respectively. For a loan to be considered impaired, management determines after review whether it is probable that the Bank will not be able to collect all amounts due according to the contractual terms of the loan agreement. Management applies its normal loan review procedures in making these judgments. Impaired loans include individually classified nonaccrual loans and troubled debt restructurings (“TDR”). For impaired loans, the Bank evaluates the impairment of the loan in accordance with FASB ASC 310-10-35-22. Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based upon recent appraised values. The fair value of the collateral or present value of expected cash flows is compared to the carrying value to determine if any write-down or specific loan loss allowance allocation is required. For individually impaired loans, the following tables set forth by class of loans at June 30, 2016 and December 31, 2015 the recorded investment, unpaid principal balance and related allowance. The tables also set forth the average recorded investment of individually impaired loans and interest income recognized while the loans were impaired during the three and six months ended June 30, 2016 and 2015: June 30, 2016 Three Months Ended Six Months Ended (In thousands) Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded: Commercial real estate: Owner occupied $ 355 $ 550 $ - $ 360 $ 3 $ 368 $ 5 Non-owner occupied 1,229 1,229 - 1,232 18 1,236 37 Residential real estate: Residential mortgages 557 571 - 558 - 378 - Home equity 909 1,007 - 884 - 674 - Commercial and Industrial: Secured 196 196 - 196 3 163 6 Unsecured 618 618 - 578 5 423 9 Total with no related allowance recorded $ 3,864 $ 4,171 $ - $ 3,808 $ 29 $ 3,242 $ 57 With an allowance recorded: Commercial real estate: Owner occupied $ - $ - $ - $ - $ - $ - $ - Non-owner occupied - - - - - - - Residential real estate: Residential mortgages - - - - - - - Home equity - - - - - - - Commercial and Industrial: Secured - - - - - - - Unsecured 227 227 143 138 2 102 4 Total with an allowance recorded $ 227 $ 227 $ 143 $ 138 $ 2 $ 102 $ 4 Total: Commercial real estate: Owner occupied $ 355 $ 550 $ - $ 360 $ 3 $ 368 $ 5 Non-owner occupied 1,229 1,229 - 1,232 18 1,236 37 Residential real estate: Residential mortgages 557 571 - 558 - 378 - Home equity 909 1,007 - 884 - 674 - Commercial and Industrial: Secured 196 196 - 196 3 163 6 Unsecured 845 845 143 716 7 525 13 Total $ 4,091 $ 4,398 $ 143 $ 3,946 $ 31 $ 3,344 $ 61 December 31, 2015 Three Months Ended Six Months Ended (In thousands) Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded: Commercial real estate: Owner occupied $ 384 $ 564 $ - $ 721 $ 2 $ 729 $ 5 Non-owner occupied 927 928 - 942 16 945 31 Residential real estate: Residential mortgages 62 73 - 67 - 68 - Home equity 610 700 - 1,163 - 870 - Commercial and Industrial: Secured 96 96 - 113 2 80 2 Unsecured - - - 101 4 107 4 Total with no related allowance recorded $ 2,079 $ 2,361 $ - $ 3,107 $ 24 $ 2,799 $ 42 With an allowance recorded: Commercial real estate: Owner occupied $ - $ - $ - $ - $ - $ - $ - Non-owner occupied 318 318 20 321 4 321 7 Residential real estate: Residential mortgages - - - - - - - Home equity - - - 150 - 100 - Commercial and Industrial: Secured - - - - - - - Unsecured 194 194 9 129 2 134 5 Total with an allowance recorded $ 512 $ 512 $ 29 $ 600 $ 6 $ 555 $ 12 Total: Commercial real estate: Owner occupied $ 384 $ 564 $ - $ 721 $ 2 $ 729 5 Non-owner occupied 1,245 1,246 20 1,263 20 1,266 38 Residential real estate: Residential mortgages 62 73 - 67 - 68 - Home equity 610 700 - 1,313 - 970 - Commercial and Industrial: Secured 96 96 - 113 2 80 2 Unsecured 194 194 9 230 6 241 9 Total $ 2,591 $ 2,873 $ 29 $ 3,707 $ 30 $ 3,354 $ 54 The Bank had no other real estate owned at June 30, 2016 compared to $0.3 million at December 31, 2015. Troubled Debt Restructurings The terms of certain loans were modified and are considered TDRs. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. The modification of these loans involved a loan to borrowers who were experiencing financial difficulties. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed to determine if that borrower is currently in payment default under any of its obligations or whether there is a probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. During the six months ended June 30, 2016, the Bank modified three loans as TDRs totaling $0.7 million compared to two loans modified as TDRs totaling $0.1 million during the six months ended June 30, 2015. During the six months ended June 30, 2016 there were no charge offs relating to TDRs as compared to $0.3 million in charge offs for the same period in 2015. During the six months ended June 30, 2016 and 2015, there were no loans modified as TDRs for which there was a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. As of June 30, 2016 and December 31, 2015, the Company had $0.1 million of nonaccrual TDRs and $2.1 million and $1.7 million, respectively, of performing TDRs. At June 30, 2016 and December 31, 2015, total nonaccrual TDRs are secured with collateral that has an appraised value of $1.3 million and $0.3 million, respectively. Furthermore, the Bank has no commitment to lend additional funds to these debtors. The terms of certain other loans were modified during the six months ended June 30, 2016 that did not meet the definition of a TDR. These loans have a total recorded investment as of June 30, 2016 of $11.8 million. The modification of these loans involved a modification of the terms of loans to borrowers who were not experiencing financial difficulties. Acquired Loans Loans acquired in a business combination are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. In determining the acquisition date fair value of purchased loans, acquired loans are aggregated into pools of loans with common characteristics. Each loan is reviewed at acquisition to determine if it should be accounted for as a loan that has experienced credit deterioration and it is probable that at acquisition, the Company will not be able to collect all the contractual principal and interest due from the borrower. All loans with evidence of deterioration in credit quality are considered purchased credit impaired (“PCI”) loans unless the loan type is specifically excluded from the scope of ASC 310-30 “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” such as loans with active revolver features or because management has minimal doubt in the collection of the loan. The Bank makes an estimate of the loans’ contractual principal and contractual interest payments as well as the total cash flows it expects to collect from the pools of loans, which includes undiscounted expected principal and interest. The excess of contractual amounts over the total cash flows expected to be collected from the loans is referred to as non-accretable difference, which is not accreted into income. The excess of the expected undiscounted cash flows over the fair value of the loans is referred to as accretable discount. Accretable discount is recognized as interest income on a level-yield basis over the life of the loans. Management has not included prepayment assumptions in its modeling of contractual or expected cash flows. The Bank continues to estimate cash flows expected to be collected over the life of the loans. Subsequent increases in total cash flows expected to be collected are recognized as an adjustment to the accretable yield with the amount of periodic accretion adjusted over the remaining life of the loans. Subsequent decreases in cash flows expected to be collected over the life of the loans are recognized as impairment in the current period through allowance for loan losses. A PCI loan may be resolved either through a sale of the loan, by working with the customer and obtaining partial or full repayment, by short sale of the collateral, or by foreclosure. When a loan accounted for in a pool is resolved, it is removed from the pool at its carrying amount. Any differences between the amounts received and the outstanding balance are absorbed by the non-accretable difference of the pool. For loans not accounted for in pools, a gain or loss on resolution would be recognized based on the difference between the proceeds received and the carrying amount of the loan. Payments received earlier than expected or in excess of expected cash flows from sales or other resolutions may result in the carrying value of a pool being reduced to zero even though outstanding contractual balances and expected cash flows remain related to loans in the pool. Once the carrying value of a pool is reduced to zero, any future proceeds, which may include cash or real estate acquired in foreclosure, from the remaining loans, representing further realization of accretable yield, are recognized as interest income upon receipt. At the acquisition date, the purchased credit impaired loans acquired as part of the FNBNY acquisition had contractually required principal and interest payments receivable of $40.3 million; expected cash flows of $28.4 million; and a fair value (initial carrying amount) of $21.8 million. The difference between the contractually required principal and interest payments receivable and the expected cash flows ($11.9 million) represented the non-accretable difference. The difference between the expected cash flows and fair value ($6.6 million) represented the initial accretable yield. At June 30, 2016, the contractually required principal and interest payments receivable and carrying amount of the purchased credit impaired loans was $13.3 million and $7.7 million, respectively, with a remaining non-accretable difference of ($1.4 million). At December 31, 2015, the contractually required principal and interest payments receivable and carrying amount of the purchased credit impaired loans was $16.7 million and $8.3 million, respectively, with a remaining non-accretable difference of ($1.5 million). At the acquisition date, the purchased credit impaired loans acquired as part of the CNB acquisition had contractually required principal and interest payments receivable of $23.4 million; expected cash flows of $10.1 million; and a fair value (initial carrying amount) of $8.7 million. The difference between the contractually required principal and interest payments receivable and the expected cash flows ($13.3 million) represented the non-accretable difference. The difference between the expected cash flows and fair value ($1.4 million) represented the initial accretable yield. At June 30, 2016, the contractually required principal and interest payments receivable and carrying amount of the purchased credit impaired loans was $17.7 million and $5.3 million, respectively, with a remaining non-accretable difference of ($10.7 million). At December 31, 2015, the contractually required principal and interest payments receivable and carrying amount of the purchased credit impaired loans was $22.5 million and $8.2 million, respectively, with a remaining non-accretable difference of ($13.3 million). The following table summarizes the activity in the accretable yield for the purchased credit impaired loans: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2016 2015 2016 2015 Balance at beginning of period $ 6,872 $ 7,560 $ 7,113 $ 8,432 Accretable discount arising from acquisition of PCI loans - 259 - 259 Accretion (1,866 ) (1,406 ) (2,658 ) (2,658 ) Reclassification from nonaccretable difference during the period 959 1,117 1,092 1,497 Other (2 ) - 416 - Accretable discount at end of period $ 5,963 $ 7,530 $ 5,963 $ 7,530

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2016
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES	7. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established and maintained through a provision for loan losses based on probable incurred losses inherent in the Bank’s loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis. The allowance is comprised of both individual valuation allowances and loan pool valuation allowances. The Bank monitors its entire loan portfolio on a regular basis, with consideration given to detailed analysis of classified loans, repayment patterns, probable incurred losses, past loss experience, current economic conditions, and various types of concentrations of credit. Additions to the allowance are charged to expense and realized losses, net of recoveries, are charged to the allowance. Individual valuation allowances are established in connection with specific loan reviews and the asset classification process including the procedures for impairment testing under FASB ASC No. 310, “Receivables”. Such valuation, which includes a review of loans for which full collectibility in accordance with contractual terms is not reasonably assured, considers the estimated fair value of the underlying collateral less the costs to sell, if any, or the present value of expected future cash flows, or the loan’s observable market value. Any shortfall that exists from this analysis results in a specific allowance for the loan. Pursuant to our policy, loan losses must be charged-off in the period the loans, or portions thereof, are deemed uncollectible. Assumptions and judgments by management, in conjunction with outside sources, are used to determine whether full collectibility of a loan is not reasonably assured. These assumptions and judgments are also used to determine the estimates of the fair value of the underlying collateral or the present value of expected future cash flows or the loan’s observable market value. Individual valuation allowances could differ materially as a result of changes in these assumptions and judgments. Individual loan analyses are periodically performed on specific loans considered impaired. The results of the individual valuation allowances are aggregated and included in the overall allowance for loan losses. Loan pool valuation allowances represent loss allowances that have been established to recognize the inherent risks associated with our lending activities, but which, unlike individual allowances, have not been allocated to particular problem assets. Pool evaluations are broken down into loans with homogenous characteristics by loan type and include commercial real estate mortgages, multi-family mortgage loans, home equity loans, residential real estate mortgages, commercial, industrial and agricultural loans, real estate construction and land loans and consumer loans. The determination of the adequacy of the valuation allowance is a process that takes into consideration a variety of factors. The Bank has developed a range of valuation allowances necessary to adequately provide for probable incurred losses inherent in each pool of loans. We consider our own charge-off history along with the growth in the portfolio as well as the Bank’s credit administration and asset management philosophies and procedures when determining the allowances for each pool. In addition, we evaluate and consider the credit’s risk rating which includes management’s evaluation of: cash flow, collateral, guarantor support, financial disclosures, industry trends and strength of borrowers’ management, the impact that economic and market conditions may have on the portfolio as well as known and inherent risks in the portfolio. Finally, we evaluate and consider the allowance ratios and coverage percentages of both peer group and regulatory agency data. These evaluations are inherently subjective because, even though they are based on objective data, it is management’s interpretation of that data that determines the amount of the appropriate allowance. If the evaluations prove to be incorrect, the allowance for loan losses may not be sufficient to cover losses inherent in the loan portfolio, resulting in additions to the allowance for loan losses. For purchased credit impaired loans, a valuation allowance is established when it is probable that the Bank will be unable to collect all the cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimate after acquisition. A specific allowance is established when subsequent evaluations of expected cash flows from purchased credit impaired loans reflect a decrease in those estimates. The allowance established represents the excess of the recorded investment in those loans over the present value of the currently estimated future cash flow, discounted at the last effective accounting yield. The Bank uses assumptions and methodologies that are relevant to estimating the level of impairment and probable losses in the loan portfolio. To the extent that the data supporting such assumptions has limitations, management's judgment and experience play a key role in recording the allowance estimates. Additions to the allowance for loan losses are made by provisions charged to earnings. Furthermore, an improvement in the expected cash flows related to purchased credit impaired loans would result in a reduction of the required specific allowance with a corresponding credit to the provision. The Credit Risk Management Committee is comprised of Bank management. The adequacy of the allowance is analyzed quarterly, with any adjustment to a level deemed appropriate by the Credit Risk Management Committee, based on its risk assessment of the entire portfolio. Each quarter, members of the Credit Risk Management Committee meet with the Credit Risk Committee of the Board to review credit risk trends and the adequacy of the allowance for loan losses. Based on the Credit Risk Management Committee’s review of the classified loans and the overall allowance levels as they relate to the entire loan portfolio at June 30, 2016 and December 31, 2015, management believes the allowance for loan losses has been established at levels sufficient to cover the probable incurred losses in the Bank’s loan portfolio. Future additions or reductions to the allowance may be necessary based on changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance. In addition, various regulatory agencies, as an integral part of the examination process, periodically review the allowance for loan losses. Such agencies may require the Bank to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination. The following tables represent the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment, as defined under FASB ASC 310-10, and based on impairment method as of June 30, 2016 and December 31, 2015. The tables include loans acquired on June 19, 2015 from CNB and February 14, 2014 from FNBNY. At June 30, 2016 (In thousands) Commercial Multi- Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Individually evaluated for impairment $ - $ - $ - $ 143 $ - $ - $ 143 Collectively evaluated for impairment 7,632 5,287 2,753 5,628 1,131 134 22,565 Loans acquired with deteriorated credit quality - - - - - - - Total Allowance for Loan Losses $ 7,632 $ 5,287 $ 2,753 $ 5,771 $ 1,131 $ 134 $ 22,708 Loans: Individually evaluated for impairment $ 1,584 $ - $ 1,465 $ 1,042 $ - $ - $ 4,091 Collectively evaluated for impairment 1,010,018 423,922 450,050 505,866 96,683 17,235 2,503,774 Loans acquired with deteriorated credit quality 4,720 3,355 855 4,609 - - 13,539 Total Loans $ 1,016,322 $ 427,277 $ 452,370 $ 511,517 $ 96,683 $ 17,235 $ 2,521,404 At December 31, 2015 (In thousands) Commercial Multi- Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Individually evaluated for impairment $ 20 $ - $ - $ 9 $ - $ - $ 29 Collectively evaluated for impairment 7,830 4,208 2,115 5,396 1,030 136 20,715 Loans acquired with deteriorated credit quality - - - - - - - Total Allowance for Loan Losses $ 7,850 $ 4,208 $ 2,115 $ 5,405 $ 1,030 $ 136 $ 20,744 Loans: Individually evaluated for impairment $ 1,629 $ - $ 672 $ 290 $ - $ - $ 2,591 Collectively evaluated for impairment 997,210 347,054 444,801 495,045 91,153 17,596 2,392,859 Loans acquired with deteriorated credit quality 635 3,739 1,267 6,431 - - 12,072 Total Loans $ 999,474 $ 350,793 $ 446,740 $ 501,766 $ 91,153 $ 17,596 $ 2,407,522 The following tables represent the changes in the allowance for loan losses for the three and six month periods ended June 30, 2016 and 2015, by portfolio segment, as defined under FASB ASC 310-10. The loan segment represents the categories that the Bank develops to determine its allowance for loan losses. For the Three Months Ended June 30, 2016 (In thousands) Commercial Multi-Family Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Beginning balance $ 7,446 $ 4,669 $ 2,698 $ 5,568 $ 1,277 $ 141 $ 21,799 Charge-offs - - - (97 ) - (2 ) (99 ) Recoveries 100 - 2 3 - 3 108 Provision 86 618 53 297 (146 ) (8 ) 900 Ending Balance $ 7,632 $ 5,287 $ 2,753 $ 5,771 $ 1,131 $ 134 $ 22,708 For the Three Months Ended June 30, 2015 (In thousands) Commercial Multi-Family Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Beginning balance $ 6,990 $ 2,980 $ 2,137 $ 4,905 $ 1,106 $ 142 $ 18,260 Charge-offs - - - (330 ) - - (330 ) Recoveries - - 77 110 - 1 188 Provision 176 35 (225 ) 588 130 (4 ) 700 Ending Balance $ 7,166 $ 3,015 $ 1,989 $ 5,273 $ 1,236 $ 139 $ 18,818 For the Six Months Ended June 30, 2016 (In thousands) Commercial Multi-Family Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Beginning balance $ 7,850 4,208 2,115 5,405 1,030 136 20,744 Charge-offs - - - (297 ) - (2 ) (299 ) Recoveries 100 - 2 7 - 4 113 Provision (318 ) 1,079 636 656 101 (4 ) 2,150 Ending Balance $ 7,632 5,287 2,753 5,771 1,131 134 22,708 For the Six Months Ended June 30, 2015 (In thousands) Commercial Multi-Family Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Beginning balance $ 6,994 $ 2,670 $ 2,208 $ 4,526 $ 1,104 $ 135 $ 17,637 Charge-offs - - - (530 ) - (2 ) (532 ) Recoveries - - 78 130 - 5 213 Provision 172 345 (297 ) 1,147 132 1 1,500 Ending Balance $ 7,166 $ 3,015 $ 1,989 $ 5,273 $ 1,236 $ 139 $ 18,818

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	6 Months Ended
	Jun. 30, 2016
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS	8. EMPLOYEE BENEFITS The Bank maintains a noncontributory pension plan covering all eligible employees. The Bank uses a December 31 st “Compensation – Retirement Benefits – Defined Benefit Plans – Pension.” During 2012, the Company amended the pension plan revising the formula for determining benefits effective January 1, 2013, except for certain grandfathered employees. During 2001, the Bank adopted the Bridgehampton National Bank Supplemental Executive Retirement Plan (“SERP”). The SERP provides benefits to certain employees, as recommended by the Compensation Committee of the Board of Directors and approved by the full Board of Directors, whose benefits under the pension plan are limited by the applicable provisions of the Internal Revenue Code. The benefit under the SERP is equal to the additional amount the employee would be entitled to under the Pension Plan and the 401(k) Plan in the absence of such Internal Revenue Code limitations. The assets of the SERP are held in a rabbi trust to maintain the tax-deferred status of the plan and are subject to the general, unsecured creditors of the Company. As a result, the assets of the trust are reflected on the Consolidated Balance Sheets of the Company. There were $2.2 million of contributions to the pension plan during the six months ended June 30, 2016. There were no contributions to the SERP during the six months ended June 30, 2016. In accordance with the SERP, a retired executive received a distribution from the plan totaling $56,000 during the six months ended June 30 . The Company’s funding policy with respect to its benefit plans is to contribute at least the minimum amounts required by applicable laws and regulations. The following table sets forth the components of net periodic benefit cost: Three Months Ended June 30, Six Months Ended June 30, Pension Benefits SERP Benefits Pension Benefits SERP Benefits (In thousands) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 286 $ 283 $ 44 $ 42 $ 577 $ 562 $ 88 $ 83 Interest cost 201 176 26 23 397 351 52 45 Expected return on plan assets (510 ) (458 ) - - (965 ) (912 ) - - Amortization of net loss 104 94 7 8 203 187 14 16 Amortization of unrecognized prior service cost (19 ) (19 ) - - (38 ) (38 ) - - Amortization of unrecognized transition obligation - - 7 7 - - 14 14 Net periodic benefit cost $ 62 $ 76 $ 84 $ 80 $ 174 $ 150 $ 168 $ 158

SECURITIES SOLD UNDER AGREEMENT

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	6 Months Ended
	Jun. 30, 2016
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	9. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase totaled $50.9 million at June 30, 2016 and December 31, 2015. The repurchase agreements were collateralized by investment securities, of which 97% were U.S. GSE securities and 3% were U.S. GSE residential collateralized mortgage obligations with a carrying amount of $55.6 million at June 30, 2016 and 96% were U.S. GSE securities and 4% were U.S. GSE residential collateralized mortgage obligations with a carrying amount of $55.9 million at December 31, 2015. Securities sold under agreements to repurchase are financing arrangements with $0.9 million maturing during the third quarter of 2016 and $50.0 million maturing during the fourth quarter of 2016. At maturity, the securities underlying the agreements are returned to the Company. The primary risk associated with these secured borrowings is the requirement to pledge a market value based balance of collateral in excess of the borrowed amount. The excess collateral pledged represents an unsecured exposure to the lending counterparty. As the market value of the collateral changes, both through changes in discount rates and spreads as well as related cash flows, additional collateral may need to be pledged. In accordance with our policies, eligible counterparties are defined and monitored to minimize our exposure.

FEDERAL HOME LOAN BANK ADVANCES

FEDERAL HOME LOAN BANK ADVANCES	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
FEDERAL HOME LOAN BANK ADVANCES	10. FEDERAL HOME LOAN BANK ADVANCES The following tables set forth the contractual maturities and weighted average interest rates of FHLB advances over the next four years at June 30, 2016 and December 31, 2015: June 30, 2016 Contractual Maturity Amount Weighted (Dollars in thousands) Overnight $ 40,000 0.57 % 2016 111,545 0.68 % 2017 19,131 0.74 % 2018 25,606 1.05 % 2019 2,560 1.06 % 158,842 0.75 % $ 198,842 0.72 % December 31, 2015 Contractual Maturity Amount Weighted (Dollars in thousands) Overnight $ - -% 2016 249,599 0.75 % 2017 19,149 0.74 % 2018 25,781 1.04 % 2019 2,978 1.08 % 297,507 0.78 % $ 297,507 0.78 % Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $840.0 million and $666.3 million of residential and commercial mortgage loans under a blanket lien arrangement at June 30, 2016 and December 31, 2015, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company is eligible to borrow up to a total of $1.12 billion at June 30, 2016.

BORROWED FUNDS

BORROWED FUNDS	6 Months Ended
	Jun. 30, 2016
Subordinated Borrowings [Abstract]
BORROWED FUNDS	11. BORROWED FUNDS Subordinated Debentures In September 2015, the Company issued $80.0 million in aggregate principal amount of fixed-to-floating rate subordinated debentures (the “Notes”). $40.0 million of the Notes are callable at par after five years, have a stated maturity of September 30, 2025 and bear interest at a fixed annual rate of 5.25% per year, from and including September 21, 2015 until but excluding September 30, 2020. From and including September 30, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR plus 360 basis points. The remaining $40.0 million of the Notes are callable at par after ten years, have a stated maturity of September 30, 2030 and bear interest at a fixed annual rate of 5.75% per year, from and including September 21, 2015 until but excluding September 30, 2025. From and including September 30, 2025 to the maturity date or early redemption date, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR plus 345 basis points. The Notes are included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. Junior Subordinated Debentures In December 2009, the Company completed the private placement of $16.0 million in aggregate liquidation amount of 8.50% cumulative convertible trust preferred securities (the "TPS”), through its subsidiary, Bridge Statutory Capital Trust II. The TPS have a liquidation amount of $1,000 per security and, prior to May 27, 2016, were convertible into our common stock, at an effective conversion price of $31 per share. The TPS mature in 2039 but are currently callable by the Company at par any time with 30 days prior notice. On May 27, 2016, the Company permanently increased the conversion ratio of the TPS from 32.2581 shares, representing a conversion price of $31 per share, to 34.4828 shares, representing a conversion price of $29 per share. This increase in the conversion ratio was accounted for as a modification of the TPS which resulted in a $0.4 million decrease in the TPS balance and a corresponding increase to Surplus which represents the increase in the fair value of the conversion option immediately before and after the modification. The decrease in the TPS balance resulting from the modification will be amortized as a yield adjustment over the remaining term of the TPS consistent with the related deferred debt issuance costs. The Company issued $16.0 million of junior subordinated debentures (the “Debentures”) to the trust in exchange for ownership of all of the common securities of the trust and the proceeds of the preferred securities sold by the trust. In accordance with current accounting guidance, the trust is not consolidated in the Company’s financial statements, but rather the Debentures are shown as a liability. The Debentures bear interest at a fixed rate equal to 8.50% and mature on December 31, 2039. Consistent with regulatory requirements, the interest payments may be deferred for up to 5 years, and are cumulative. The Debentures have the same prepayment provisions as the TPS. The Debentures are included in Tier I capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 2016
DERIVATIVES
DERIVATIVES	12. DERIVATIVES Cash Flow Hedges of Interest Rate Risk The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest rate swaps with notional amounts totaling $125.0 million as of June 30, 2016 and December 31, 2015, were designated as cash flow hedges of certain Federal Home Loan Bank advances. The swaps were determined to be fully effective during the periods presented and therefore no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps is recorded in other assets/(other liabilities), with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. Summary information about the interest rate swaps designated as cash flow hedges at June 30, 2016 and December 31, 2015 is as follows: (Dollars in thousands) June 30, 2016 December 31, 2015 Notional amounts $ 125,000 $ 125,000 Weighted average pay rates 1.58 % 1.58 % Weighted average receive rates 0.63 % 0.51 % Weighted average maturity 2.72 years 3.22 years Interest expense recorded on these swap transactions totaled $239,000 and $489,000 for the three and six months ended June 30, 2016, respectively, and $176,000 and $310,000 for the three and six months ended June 30, 2015, respectively, and is reported as a component of interest expense on FHLB Advances. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income/expense as interest payments are made/received on the Company’s variable-rate assets/liabilities. During the six months ended June 30, 2016 the Company had $489,000 of reclassifications to interest expense. During the next twelve months, the Company estimates that $1.2 million will be reclassified as an increase in interest expense. The following tables present the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the three and six months ended June 30, 2016 and 2015: Amount of (loss) Amount of (loss) Amount of (loss) recognized in other (In thousands) recognized in OCI reclassified from OCI non-interest income Interest rate contracts (Effective Portion) to interest expense (Ineffective Portion) Three months ended June 30, 2016 $ (661 ) $ (239 ) $ - Six months ended June 30, 2016 $ (2,684 ) $ (489 ) $ - Three months ended June 30, 2015 $ 117 $ (176 ) $ - Six months ended June 30, 2015 $ (698 ) $ (310 ) $ - The following table reflects the cash flow hedge included in the Consolidated Balance Sheets at the dates indicated: June 30, 2016 December 31, 2015 Fair Fair Fair Fair Notional Value Value Notional Value Value (In thousands) Amount Asset Liability Amount Asset Liability Included in other assets/(liabilities): Interest rate swaps related to FHLB Advances $ 100,000 $ - $ (2,328 ) $ 100,000 $ 14 $ (713 ) Forward starting interest rate swap related to FHLB Advances $ 25,000 $ - $ (1,161 ) $ 25,000 $ - $ (595 ) Non-Designated Hedges Derivatives not designated as hedges may be used to manage the Company’s exposure to interest rate movements or to provide service to customers but do not meet the requirements for hedge accounting under U.S. GAAP. The Company executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that the Company executes with a third party in order to minimize the net risk exposure resulting from such transactions. These interest-rate swap agreements do not qualify for hedge accounting treatment, and therefore changes in fair value are reported in current period earnings. The following table presents summary information about these interest rate swaps at June 30, 2016 and December 31, 2015: (Dollars in thousands) June 30, 2016 December 31, 2015 Notional amounts $ 55,702 $ 56,328 Weighted average pay rates 3.48 % 3.39 % Weighted average receive rates 3.48 % 3.39 % Weighted average maturity 15.07 years 15.59 years Fair value of combined interest rate swaps $ - $ - Credit-Risk-Related Contingent Features As of June 30, 2016 the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $6.5 million. As of June 30, 2016, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $6.7 million against its obligations under these agreements. If the Company had breached any of these provisions at June 30, 2016, it could have been required to settle its obligations under the agreements at the termination value.

OTHER COMPREHENSIVE INCOME (LOS

OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2016
OTHER COMPREHENSIVE INCOME (LOSS)
OTHER COMPREHENSIVE INCOME (LOSS)	13. OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) components and related income tax effects were as follows: Three Months Ended Six Months Ended (In thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Unrealized holding gains (losses) on available for sale securities $ 2,725 $ (3,653 ) $ 12,465 $ 1,262 Reclassification adjustment for (gains) losses realized in income (383 ) - (449 ) 10 Income tax effect (950 ) 1,486 (4,867 ) (471 ) Net change in unrealized gains (losses) on available for sale securities 1,392 (2,167 ) 7,149 801 Reclassification adjustment for amortization realized in income 99 90 193 179 Income tax effect (41 ) 18 (74 ) (17 ) Net change in post-retirement obligation 58 108 119 162 Change in fair value of derivatives used for cash flow hedges (661 ) 117 (2,684 ) (698 ) Reclassification adjustment for losses realized in income 239 176 489 310 Income tax effect 171 (97 ) 891 164 Net change in unrealized (loss) gain on cash flow hedges (251 ) 196 (1,304 ) (224 ) Total $ 1,199 $ (1,863 ) $ 5,964 $ 739 The following is a summary of the accumulated other comprehensive income balances, net of income tax, at the dates indicated: Current Period (In thousands) December 31, 2015 Change June 30, 2016 Unrealized (losses) gains on available for sale securities $ (4,741 ) $ 7,149 $ 2,408 Unrealized (losses) gains on pension benefits (4,111 ) 119 (3,992 ) Unrealized losses on cash flow hedges (770 ) (1,304 ) (2,074 ) Total $ (9,622 ) $ 5,964 $ (3,658 ) The following represents the reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2016 and 2015: Affected Line Item Three Months Ended Six Months Ended in the Consolidated (In thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Statements of Income Realized gains (losses) on sale of available for sale securities $ 383 $ - $ 449 $ (10 ) Net securities gains (losses) Income tax (expense) benefit (155 ) - (182 ) 4 Income tax expense Net of income tax $ 228 $ - $ 267 $ (6 ) Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service cost $ 19 $ 19 $ 38 $ 38 Salaries and employee benefits Transition obligation (7 ) (7 ) (14 ) (14 ) Salaries and employee benefits Actuarial losses (111 ) (102 ) (217 ) (203 ) Salaries and employee benefits $ (99 ) $ (90 ) $ (193 ) $ (179 ) Income tax benefit 40 (18 ) 78 17 Income tax expense Net of income tax $ (59 ) $ (108 ) $ (115 ) $ (162 ) Realized losses on cash flow hedges $ (239 ) $ (176 ) $ (489 ) $ (310 ) Interest expense Income tax benefit 97 74 198 126 Income tax expense Net of income tax $ (142 ) $ (102 ) $ (291 ) $ (184 ) Total reclassifications, net of income tax $ 27 $ (210 ) $ (139 ) $ (352 )

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	6 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
BUSINESS COMBINATIONS	14. BUSINESS COMBINATIONS On June 19, 2015, the Company acquired CNB at a purchase price of $157.5 million, issued an aggregate of 5.647 million Bridge Bancorp common shares in exchange for all the issued and outstanding common stock of CNB and recorded goodwill of $96.5 million, which is not deductible for tax purposes. At acquisition, CNB had total acquired assets on a fair value basis of $895.3 million, with loans of $729.4 million, investment securities of $90.1 million and deposits of $786.9 million. The transaction expanded the Company’s geographic footprint across Long Island including Nassau County, Queens and into New York City. It complements the Bank’s existing branch network and enhances asset generation capabilities. The expanded branch network allows the Bank to serve a greater portion of the Long Island and metropolitan marketplace through a network of 40 branches. The acquisition was accounted for under the acquisition method of accounting in accordance with FASB ASC 805, “Business Combinations.” Accordingly, the assets acquired and liabilities assumed were recorded at their respective acquisition date fair values, and identifiable intangible assets were recorded at fair value. The operating results of the Company for the three and six month periods ended June 30, 2016 and 2015 include the operating results of CNB since the acquisition date of June 19, 2015. The following summarizes the finalized fair value of the assets acquired and liabilities assumed on June 19, 2015: Measurement As Initially Period (In thousands) Reported Adjustments As Adjusted Cash and due from banks $ 24,628 $ - $ 24,628 Securities 90,109 - 90,109 Loans 736,348 (6,935 ) 729,413 Bank Owned Life Insurance 21,445 - 21,445 Premises and equipment 6,398 (5,122 ) 1,276 Other intangible assets 6,698 - 6,698 Other assets 14,484 7,245 21,729 Total Assets Acquired $ 900,110 $ (4,812 ) $ 895,298 Deposits $ 786,853 $ - $ 786,853 Federal Home Loan Bank term advances 35,581 - 35,581 Other liabilities and accrued expenses 5,647 6,214 11,861 Total Liabilities Assumed $ 828,081 $ 6,214 $ 834,295 Net Assets Acquired 72,029 (11,026 ) 61,003 Consideration Paid 157,503 - 157,503 Goodwill Recorded on Acquisition $ 85,474 $ 11,026 $ 96,500

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2016
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	15. RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share Based-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2016-09 in the first quarter of 2016. The adoption of ASU 2016-09 did not have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments.” ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. ASU 2015-16 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The adoption of ASU 2015-16 resulted in a fixed asset measurement period adjustment for $0.3 million that was recorded in 2016 related to the recovery of depreciation expense recorded in 2015. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model and also provides for recording credit losses on available for sale debt securities through an allowance account. ASU 2016-13 also requires certain incremental disclosures. ASU 2016-13 is effective for public entities that are SEC filers, like the Company, for interim and annual reporting periods beginning December 15, 2019. The Company is in the process of evaluating the impact ASU 2016-13 will have on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 affects any entity that enters into a lease and is intended to increase the transparency and comparability of financial statements among organizations. ASU 2016-02 requires, among other changes, a lessee to recognize on its balance sheet a lease asset and a lease liability for those leases previously classified as operating leases. The lease asset would represent the right to use the underlying asset for the lease term and the lease liability would represent the discounted value of the required lease payments to the lessor. ASU 2016-02 would also require entities to disclose key information about leasing arrangements. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. The Company is in the process of evaluating the impact ASU 2016-02 will have on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in ASU 2016-01 are intended to improve the recognition, measurement, presentation and disclosure of financial assets and liabilities to provide users of financial statements with information that is more useful for decision-making purposes. Among other changes, ASU 2016-01 would require equity securities to be measured at fair value with changes in fair value recognized through net income, but would allow equity securities that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The amendments would simplify the impairment assessment of such equity securities and would require enhanced disclosure about these investments. ASU 2016-01 would also require separate presentation of financial assets and liabilities by measurement category and type of instrument, such as securities or loans, on the balance sheet or in the notes, and would eliminate certain other disclosures relating to the methods and assumptions used to estimate fair value. For public entities, like the Company, the amendments in ASU 2016-01 are effective for interim and annual reporting periods beginning after December 15, 2017. ASU 2016-01 is not expected to have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The amendments in ASU 2014-09 are intended to improve financial reporting by providing a comprehensive framework for addressing revenue recognition issues that can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. While the guidance in ASU 2014-09 supersedes most existing industry-specific revenue recognition accounting guidance, much of a bank’s revenue comes from financial instruments such as debt securities and loans which are scoped-out of the guidance. The amendments also include improved disclosures to enable users of financial statements to better understand the nature, amount, timing and uncertainty of revenue that is recognized. For public entities, like the Company, ASU 2014-09, as amended, is effective for interim and annual reporting periods beginning after December 15, 2017. The Company is in the process of evaluating the impact ASU 2014-09 will have on the Company’s consolidated financial statements.

RECENT ACCOUNTING PRONOUNCEME24

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Jun. 30, 2016
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share Based-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2016-09 in the first quarter of 2016. The adoption of ASU 2016-09 did not have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments.” ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. ASU 2015-16 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The adoption of ASU 2015-16 resulted in a fixed asset measurement period adjustment for $0.3 million that was recorded in 2016 related to the recovery of depreciation expense recorded in 2015.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
EARNINGS PER SHARE
Schedule of computation of EPS	Three months ended, Six months ended June 30, June 30, (In thousands, except per share data) 2016 2015 2016 2015 Net Income $ 8,854 $ 463 $ 17,480 $ 5,226 Dividends paid on and earnings allocated to participating securities (181 ) (16 ) (351 ) (131 ) Income attributable to common stock $ 8,673 $ 447 $ 17,129 $ 5,095 Weighted average common shares outstanding, including participating securities 17,507 12,488 17,493 12,106 Weighted average participating securities (358 ) (305 ) (356 ) (303 ) Weighted average common shares outstanding 17,149 12,183 17,137 11,803 Basic earnings per common share $ 0.51 $ 0.04 $ 1.00 $ 0.43 Income attributable to common stock $ 8,673 $ 447 $ 17,129 $ 5,095 Impact of assumed conversions - interest on 8.5% trust preferred securities 223 - 444 - Income attributable to common stock including assumed conversions $ 8,896 $ 447 $ 17,573 $ 5,095 Weighted average common shares outstanding 17,149 12,183 17,137 11,803 Incremental shares from assumed conversions of options and restricted stock units 14 3 9 3 Incremental shares from assumed conversions of 8.5% trust preferred securities 530 - 523 - Weighted average common and equivalent shares outstanding 17,693 12,186 17,669 11,806 Diluted earnings per common share $ 0.50 $ 0.04 $ 0.99 $ 0.43

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS (Tables)	6 Months Ended
	Jun. 30, 2016
STOCK BASED COMPENSATION PLANS
Summary of status of stock options	Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic (Dollars in thousands, except per share amounts) Options Price Life Value Outstanding, January 1, 2016 23,725 $ 25.25 Exercised (8,333 ) $ 25.25 Outstanding, June 30, 2016 15,392 $ 25.25 0.41 years $ 48 Vested and Exercisable, June 30, 2016 15,392 $ 25.25 0.41 years $ 48 Number of Exercise Options Price Range of Exercise Prices 15,392 $ 25.25
Summary of status of unvested restricted stock	Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2016 281,076 $ 23.46 Granted 66,809 $ 27.91 Vested (38,152 ) $ 22.01 Forfeited (3,266 ) $ 24.91 Unvested, June 30, 2016 306,467 $ 24.60

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2016
SECURITIES
Summary of amortized cost and fair value of the available for sale and held to maturity	June 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. GSE securities $ 58,242 $ 84 $ (1 ) $ 58,325 State and municipal obligations 108,184 2,400 (28 ) 110,556 U.S. GSE residential mortgage-backed securities 100,685 1,393 (4 ) 102,074 U.S. GSE residential collateralized mortgage obligations 236,771 1,962 (135 ) 238,598 U.S. GSE commercial mortgage-backed securities 6,488 213 - 6,701 U.S. GSE commercial collateralized mortgage obligations 56,412 546 (47 ) 56,911 Other asset backed securities 24,250 - (1,940 ) 22,310 Corporate bonds 32,000 285 (677 ) 31,608 Total available for sale 623,032 6,883 (2,832 ) 627,083 Held to maturity: U.S. GSE securities - - - - State and municipal obligations 61,159 3,294 - 64,453 U.S. GSE residential mortgage-backed securities 11,837 107 - 11,944 U.S. GSE residential collateralized mortgage obligations 66,219 1,937 (33 ) 68,123 U.S. GSE commercial mortgage-backed securities 29,119 912 (53 ) 29,978 U.S. GSE commercial collateralized mortgage obligations 42,724 974 (51 ) 43,647 Corporate bonds 11,000 29 - 11,029 Total held to maturity 222,058 7,253 (137 ) 229,174 Total securities $ 845,090 $ 14,136 $ (2,969 ) $ 856,257 December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. GSE securities $ 63,238 $ - $ (564 ) $ 62,674 State and municipal obligations 87,830 427 (322 ) 87,935 U.S. GSE residential mortgage-backed securities 201,297 237 (1,270 ) 200,264 U.S. GSE residential collateralized mortgage obligations 321,253 513 (3,888 ) 317,878 U.S. GSE commercial mortgage-backed securities 12,491 7 (80 ) 12,418 U.S. GSE commercial collateralized mortgage obligations 64,809 9 (620 ) 64,198 Other asset backed securities 24,250 - (1,879 ) 22,371 Corporate bonds 33,000 - (535 ) 32,465 Total available for sale 808,168 1,193 (9,158 ) 800,203 Held to maturity: U.S. GSE securities $ 7,466 $ 1 $ - $ 7,467 State and municipal obligations 64,878 1,715 (113 ) 66,480 U.S. GSE residential mortgage-backed securities 7,609 - (106 ) 7,503 U.S. GSE residential collateralized mortgage obligations 60,933 617 (498 ) 61,052 U.S. GSE commercial mortgage-backed securities 23,056 210 (313 ) 22,953 U.S. GSE commercial collateralized mortgage obligations 33,409 282 (185 ) 33,506 Corporate bonds 11,000 42 - 11,042 Total held to maturity 208,351 2,867 (1,215 ) 210,003 Total securities $ 1,016,519 $ 4,060 $ (10,373 ) $ 1,010,206
Summary of amortized cost, fair value and maturities of the available for sale and held to maturity investment securities portfolio	June 30, 2016 Amortized Fair (In thousands) Cost Value Maturity Available for sale: Within one year $ 14,277 $ 14,315 One to five years 74,503 75,060 Five to ten years 116,129 117,641 Beyond ten years 418,123 420,067 Total $ 623,032 $ 627,083 Held to maturity: Within one year $ 3,644 $ 3,665 One to five years 31,697 32,326 Five to ten years 67,599 71,025 Beyond ten years 119,118 122,158 Total $ 222,058 $ 229,174
Securities having a continuous unrealized loss position aggregated by a period of time less than or greater than 12 months	June 30, 2016 Less than 12 months Greater than 12 months Unrealized Unrealized (In thousands) Fair Value Losses Fair Value Losses Available for sale: U.S. GSE securities $ 7,999 $ (1 ) $ - $ - State and municipal obligations 9,853 (27 ) 243 (1 ) U.S. GSE residential mortgage-backed securities - - 1,782 (4 ) U.S. GSE residential collateralized mortgage obligations 10,183 (48 ) 17,812 (87 ) U.S. GSE commercial mortgage-backed securities - - - - U.S. GSE commercial collateralized mortgage obligations 8,644 (22 ) 5,706 (25 ) Other asset backed securities - - 22,310 (1,940 ) Corporate bonds 17,406 (594 ) 4,918 (83 ) Total available for sale $ 54,085 $ (692 ) $ 52,771 $ (2,140 ) Held to maturity: U.S. GSE securities - - - - State and municipal obligations - - - - U.S. GSE residential mortgage-backed securities - - - - U.S. GSE residential collateralized mortgage obligations 218 - 4,457 (33 ) U.S. GSE commercial mortgage-backed securities 6,201 (53 ) - - U.S. GSE commercial collateralized mortgage obligations 4,899 (30 ) 3,969 (21 ) Corporate bonds - - - - Total held to maturity $ 11,318 $ (83 ) $ 8,426 $ (54 ) December 31, 2015 Less than 12 months Greater than 12 months Unrealized Unrealized (In thousands) Fair Value Losses Fair Value Losses Available for sale: U.S. GSE securities $ 37,759 $ (235 ) $ 24,914 $ (329 ) State and municipal obligations 39,621 (298 ) 5,118 (24 ) U.S. GSE residential mortgage-backed securities 136,025 (1,224 ) 1,510 (46 ) U.S. GSE residential collateralized mortgage obligations 187,543 (1,781 ) 66,830 (2,107 ) U.S. GSE commercial mortgage-backed securities 8,594 (80 ) - - U.S. GSE commercial collateralized mortgage obligations 51,178 (503 ) 10,034 (117 ) Other asset backed securities - - 22,371 (1,879 ) Corporate bonds 27,640 (360 ) 4,825 (175 ) Total available for sale $ 488,360 $ (4,481 ) $ 135,602 $ (4,677 ) Held to maturity: U.S. GSE securities $ - $ - $ - $ - State and municipal obligations 18,375 (113 ) - - U.S. GSE residential mortgage-backed securities 7,503 (106 ) - - U.S. GSE residential collateralized mortgage obligations 15,918 (149 ) 15,679 (349 ) U.S. GSE commercial mortgage-backed securities 13,982 (313 ) - - U.S. GSE commercial collateralized mortgage obligations 7,912 (8 ) 3,813 (177 ) Corporate bonds - - - - Total held to maturity $ 63,690 $ (689 ) $ 19,492 $ (526 )

ESTIMATED FAIR VALUE OF FINAN28

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of assets and liabilities measured on a recurring basis	June 30, 2016 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial Assets: Available for sale securities: U.S. GSE securities $ 58,325 $ 58,325 State and municipal obligations 110,556 110,556 U.S. GSE residential mortgage-backed securities 102,074 102,074 U.S. GSE residential collateralized mortgage obligations 238,598 238,598 U.S. GSE commercial mortgage-backed securities 6,701 6,701 U.S. GSE commercial collateralized mortgage obligations 56,911 56,911 Other asset backed securities 22,310 22,310 Corporate bonds 31,608 31,608 Total available for sale $ 627,083 $ 627,083 Derivatives $ 2,871 $ 2,871 Financial Liabilities: Derivatives $ 6,360 $ 6,360 December 31, 2015 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial Assets: Available for sale securities: U.S. GSE securities $ 62,674 $ 62,674 State and municipal obligations 87,935 87,935 U.S. GSE residential mortgage-backed securities 200,264 200,264 U.S. GSE residential collateralized mortgage obligations 317,878 317,878 U.S. GSE commercial mortgage-backed securities 12,418 12,418 U.S. GSE commercial collateralized mortgage obligations 64,198 64,198 Other asset backed securities 22,371 22,371 Corporate bonds 32,465 32,465 Total available for sale $ 800,203 $ 800,203 Derivatives $ 779 $ 779 Financial Liabilities: Derivatives $ 2,073 $ 2,073
Schedule of assets measured at fair value on a non-recurring basis	June 30, 2016 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Impaired loans $ 84 — — $ 84 December 31, 2015 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Impaired loans $ 483 — — $ 483 Other real estate owned 250 — — 250
Schedule of estimated fair values and recorded carrying values of financial instruments	June 30, 2016 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Total Carrying Identical Assets Inputs Inputs Fair (In thousands) Amount (Level 1) (Level 2) (Level 3) Value Financial assets: Cash and due from banks $ 50,581 $ 50,581 $ - $ - $ 50,581 Interest bearing deposits with banks 29,015 - 29,015 - 29,015 Securities available for sale 627,083 - 627,083 - 627,083 Securities restricted 20,894 n/a n/a n/a n/a Securities held to maturity 222,058 - 229,174 - 229,174 Loans, net 2,502,218 - - 2,520,109 2,520,109 Derivatives 2,871 - 2,871 - 2,871 Accrued interest receivable 8,916 - 2,840 6,076 8,916 Financial liabilities: Certificates of deposit 190,479 - 191,657 - 191,657 Demand and other deposits 2,663,184 2,663,184 - - 2,663,184 Federal funds purchased 150,000 150,000 - - 150,000 Federal Home Loan Bank advances 198,842 40,000 161,990 - 201,990 Repurchase agreements 50,895 - 50,939 - 50,939 Subordinated Debentures 78,432 - - 84,810 84,810 Junior Subordinated Debentures 15,525 - - 17,709 17,709 Derivatives 6,360 - 6,360 - 6,360 Accrued interest payable 1,456 103 1,353 - 1,456 December 31, 2015 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Total Carrying Identical Assets Inputs Inputs Fair (In thousands) Amount (Level 1) (Level 2) (Level 3) Value Financial assets: Cash and due from banks $ 79,750 $ 79,750 $ - $ - $ 79,750 Interest bearing deposits with banks 24,808 - 24,808 - 24,808 Securities available for sale 800,203 - 800,203 - 800,203 Securities restricted 24,788 n/a n/a n/a n/a Securities held to maturity 208,351 - 210,003 - 210,003 Loans, net 2,390,030 - - 2,379,171 2,379,171 Derivatives 779 - 779 - 779 Accrued interest receivable 9,270 - 3,228 6,042 9,270 Financial liabilities: Certificates of deposit 292,855 - 293,368 - 293,368 Demand and other deposits 2,550,770 2,550,770 - - 2,550,770 Federal funds purchased 120,000 120,000 - - 120,000 Federal Home Loan Bank advances 297,507 197,243 100,772 - 298,015 Repurchase agreements 50,891 - 51,480 - 51,480 Subordinated Debentures 78,363 - - 78,830 78,830 Junior Subordinated Debentures 15,878 - - 16,566 16,566 Derivatives 2,073 - 2,073 - 2,073 Accrued interest payable 1,644 93 1,551 - 1,644

LOANS (Tables)

LOANS (Tables)	6 Months Ended
	Jun. 30, 2016
LOANS
Schedule of the major classifications of loans	(In thousands) June 30, 2016 December 31, 2015 Commercial real estate mortgage loans $ 1,016,322 $ 999,474 Multi-family mortgage loans 427,277 350,793 Residential real estate mortgage loans 452,370 446,740 Commercial, industrial and agricultural loans 511,517 501,766 Real estate construction and land loans 96,683 91,153 Installment/consumer loans 17,235 17,596 Total loans 2,521,404 2,407,522 Net deferred loan costs and fees 3,522 3,252 2,524,926 2,410,774 Allowance for loan losses (22,708 ) (20,744 ) Net loans $ 2,502,218 $ 2,390,030
Schedule of loans by class categorized by internally assigned credit risk grades	June 30, 2016 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 412,605 $ 2,541 $ 889 $ - $ 416,035 Non-owner occupied 595,001 510 4,776 - 600,287 Multi-Family 427,277 - - - 427,277 Residential real estate: Residential mortgage 382,246 85 2,076 - 384,407 Home equity 66,548 396 1,019 - 67,963 Commercial and Industrial: Secured 111,975 276 2,085 - 114,336 Unsecured 392,421 2,585 2,175 - 397,181 Real estate construction and land loans 96,343 - 340 - 96,683 Installment/consumer loans 17,135 - 100 - 17,235 Total loans $ 2,501,551 $ 6,393 $ 13,460 $ - $ 2,521,404 December 31, 2015 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 465,967 $ 3,239 $ 2,115 $ - $ 471,321 Non-owner occupied 519,124 542 8,487 - 528,153 Multi-Family 350,785 — 8 - 350,793 Residential real estate: Residential mortgage 377,482 87 845 - 378,414 Home equity 66,910 523 893 - 68,326 Commercial and Industrial: Secured 121,037 151 2,549 - 123,737 Unsecured 370,642 3,191 4,196 - 378,029 Real estate construction and land loans 91,153 — — - 91,153 Installment/consumer loans 17,496 — 100 - 17,596 Total loans $ 2,380,596 $ 7,733 $ 19,193 $ - $ 2,407,522
Schedule of the aging of the recorded investment in past due loans by class of loans	June 30, 2016 (In thousands) 30-59 60-89 > Past Due and Accruing Nonaccrual Total Past Current Total Loans Commercial real estate: Owner occupied $ 592 $ - $ 611 $ 211 $ 1,414 $ 414,621 $ 416,035 Non-owner occupied 1,855 - - - 1,855 598,432 600,287 Multi-Family - - - - - 427,277 427,277 Residential real estate: Residential mortgages 489 419 852 557 2,317 382,090 384,407 Home equity 119 121 223 909 1,372 66,591 67,963 Commercial and Industrial: Secured - - 208 - 208 114,128 114,336 Unsecured 122 46 - 369 537 396,644 397,181 Real estate construction and land loans - - - - - 96,683 96,683 Installment/consumer loans - 1 - 4 5 17,230 17,235 Total loans $ 3,177 $ 587 $ 1,894 $ 2,050 $ 7,708 $ 2,513,696 $ 2,521,404 December 31, 2015 (In thousands) 30-59 60-89 > Past Due and Accruing Nonaccrual Total Past Current Total Loans Commercial real estate: Owner occupied $ - $ - $ 435 $ 631 $ 1,066 $ 470,255 $ 471,321 Non-owner occupied - - - - - 528,153 528,153 Multi-Family - - - - - 350,793 350,793 Residential real estate: Residential mortgages 939 245 - 62 1,246 377,168 378,414 Home equity 69 100 188 610 967 67,359 68,326 Commercial and Industrial: Secured - - 341 - 341 123,396 123,737 Unsecured 128 24 - 44 196 377,833 378,029 Real estate construction and land loans - - - - - 91,153 91,153 Installment/consumer loans - - - 3 3 17,593 17,596 Total loans $ 1,136 $ 369 $ 964 $ 1,350 $ 3,819 $ 2,403,703 $ 2,407,522
Schedule of individually impaired loans by class	June 30, 2016 Three Months Ended Six Months Ended (In thousands) Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded: Commercial real estate: Owner occupied $ 355 $ 550 $ - $ 360 $ 3 $ 368 $ 5 Non-owner occupied 1,229 1,229 - 1,232 18 1,236 37 Residential real estate: Residential mortgages 557 571 - 558 - 378 - Home equity 909 1,007 - 884 - 674 - Commercial and Industrial: Secured 196 196 - 196 3 163 6 Unsecured 618 618 - 578 5 423 9 Total with no related allowance recorded $ 3,864 $ 4,171 $ - $ 3,808 $ 29 $ 3,242 $ 57 With an allowance recorded: Commercial real estate: Owner occupied $ - $ - $ - $ - $ - $ - $ - Non-owner occupied - - - - - - - Residential real estate: Residential mortgages - - - - - - - Home equity - - - - - - - Commercial and Industrial: Secured - - - - - - - Unsecured 227 227 143 138 2 102 4 Total with an allowance recorded $ 227 $ 227 $ 143 $ 138 $ 2 $ 102 $ 4 Total: Commercial real estate: Owner occupied $ 355 $ 550 $ - $ 360 $ 3 $ 368 $ 5 Non-owner occupied 1,229 1,229 - 1,232 18 1,236 37 Residential real estate: Residential mortgages 557 571 - 558 - 378 - Home equity 909 1,007 - 884 - 674 - Commercial and Industrial: Secured 196 196 - 196 3 163 6 Unsecured 845 845 143 716 7 525 13 Total $ 4,091 $ 4,398 $ 143 $ 3,946 $ 31 $ 3,344 $ 61 December 31, 2015 Three Months Ended Six Months Ended (In thousands) Recorded Unpaid Related Average Interest Average Interest With no related allowance recorded: Commercial real estate: Owner occupied $ 384 $ 564 $ - $ 721 $ 2 $ 729 $ 5 Non-owner occupied 927 928 - 942 16 945 31 Residential real estate: Residential mortgages 62 73 - 67 - 68 - Home equity 610 700 - 1,163 - 870 - Commercial and Industrial: Secured 96 96 - 113 2 80 2 Unsecured - - - 101 4 107 4 Total with no related allowance recorded $ 2,079 $ 2,361 $ - $ 3,107 $ 24 $ 2,799 $ 42 With an allowance recorded: Commercial real estate: Owner occupied $ - $ - $ - $ - $ - $ - $ - Non-owner occupied 318 318 20 321 4 321 7 Residential real estate: Residential mortgages - - - - - - - Home equity - - - 150 - 100 - Commercial and Industrial: Secured - - - - - - - Unsecured 194 194 9 129 2 134 5 Total with an allowance recorded $ 512 $ 512 $ 29 $ 600 $ 6 $ 555 $ 12 Total: Commercial real estate: Owner occupied $ 384 $ 564 $ - $ 721 $ 2 $ 729 5 Non-owner occupied 1,245 1,246 20 1,263 20 1,266 38 Residential real estate: Residential mortgages 62 73 - 67 - 68 - Home equity 610 700 - 1,313 - 970 - Commercial and Industrial: Secured 96 96 - 113 2 80 2 Unsecured 194 194 9 230 6 241 9 Total $ 2,591 $ 2,873 $ 29 $ 3,707 $ 30 $ 3,354 $ 54
Summary of activity in the accretable yield for the purchased credit impaired loans	Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2016 2015 2016 2015 Balance at beginning of period $ 6,872 $ 7,560 $ 7,113 $ 8,432 Accretable discount arising from acquisition of PCI loans - 259 - 259 Accretion (1,866 ) (1,406 ) (2,658 ) (2,658 ) Reclassification from nonaccretable difference during the period 959 1,117 1,092 1,497 Other (2 ) - 416 - Accretable discount at end of period $ 5,963 $ 7,530 $ 5,963 $ 7,530

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2016
ALLOWANCE FOR LOAN LOSSES
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method	At June 30, 2016 (In thousands) Commercial Multi- Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Individually evaluated for impairment $ - $ - $ - $ 143 $ - $ - $ 143 Collectively evaluated for impairment 7,632 5,287 2,753 5,628 1,131 134 22,565 Loans acquired with deteriorated credit quality - - - - - - - Total Allowance for Loan Losses $ 7,632 $ 5,287 $ 2,753 $ 5,771 $ 1,131 $ 134 $ 22,708 Loans: Individually evaluated for impairment $ 1,584 $ - $ 1,465 $ 1,042 $ - $ - $ 4,091 Collectively evaluated for impairment 1,010,018 423,922 450,050 505,866 96,683 17,235 2,503,774 Loans acquired with deteriorated credit quality 4,720 3,355 855 4,609 - - 13,539 Total Loans $ 1,016,322 $ 427,277 $ 452,370 $ 511,517 $ 96,683 $ 17,235 $ 2,521,404 At December 31, 2015 (In thousands) Commercial Multi- Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Individually evaluated for impairment $ 20 $ - $ - $ 9 $ - $ - $ 29 Collectively evaluated for impairment 7,830 4,208 2,115 5,396 1,030 136 20,715 Loans acquired with deteriorated credit quality - - - - - - - Total Allowance for Loan Losses $ 7,850 $ 4,208 $ 2,115 $ 5,405 $ 1,030 $ 136 $ 20,744 Loans: Individually evaluated for impairment $ 1,629 $ - $ 672 $ 290 $ - $ - $ 2,591 Collectively evaluated for impairment 997,210 347,054 444,801 495,045 91,153 17,596 2,392,859 Loans acquired with deteriorated credit quality 635 3,739 1,267 6,431 - - 12,072 Total Loans $ 999,474 $ 350,793 $ 446,740 $ 501,766 $ 91,153 $ 17,596 $ 2,407,522 For the Three Months Ended June 30, 2016 (In thousands) Commercial Multi-Family Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Beginning balance $ 7,446 $ 4,669 $ 2,698 $ 5,568 $ 1,277 $ 141 $ 21,799 Charge-offs - - - (97 ) - (2 ) (99 ) Recoveries 100 - 2 3 - 3 108 Provision 86 618 53 297 (146 ) (8 ) 900 Ending Balance $ 7,632 $ 5,287 $ 2,753 $ 5,771 $ 1,131 $ 134 $ 22,708 For the Three Months Ended June 30, 2015 (In thousands) Commercial Multi-Family Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Beginning balance $ 6,990 $ 2,980 $ 2,137 $ 4,905 $ 1,106 $ 142 $ 18,260 Charge-offs - - - (330 ) - - (330 ) Recoveries - - 77 110 - 1 188 Provision 176 35 (225 ) 588 130 (4 ) 700 Ending Balance $ 7,166 $ 3,015 $ 1,989 $ 5,273 $ 1,236 $ 139 $ 18,818 For the Six Months Ended June 30, 2016 (In thousands) Commercial Multi-Family Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Beginning balance $ 7,850 4,208 2,115 5,405 1,030 136 20,744 Charge-offs - - - (297 ) - (2 ) (299 ) Recoveries 100 - 2 7 - 4 113 Provision (318 ) 1,079 636 656 101 (4 ) 2,150 Ending Balance $ 7,632 5,287 2,753 5,771 1,131 134 22,708 For the Six Months Ended June 30, 2015 (In thousands) Commercial Multi-Family Residential Commercial, Real Estate Installment/ Total Allowance for Loan Losses: Beginning balance $ 6,994 $ 2,670 $ 2,208 $ 4,526 $ 1,104 $ 135 $ 17,637 Charge-offs - - - (530 ) - (2 ) (532 ) Recoveries - - 78 130 - 5 213 Provision 172 345 (297 ) 1,147 132 1 1,500 Ending Balance $ 7,166 $ 3,015 $ 1,989 $ 5,273 $ 1,236 $ 139 $ 18,818

EMPLOYEE BENEFITS (Tables)

EMPLOYEE BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2016
EMPLOYEE BENEFITS
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income	Three Months Ended June 30, Six Months Ended June 30, Pension Benefits SERP Benefits Pension Benefits SERP Benefits (In thousands) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 286 $ 283 $ 44 $ 42 $ 577 $ 562 $ 88 $ 83 Interest cost 201 176 26 23 397 351 52 45 Expected return on plan assets (510 ) (458 ) - - (965 ) (912 ) - - Amortization of net loss 104 94 7 8 203 187 14 16 Amortization of unrecognized prior service cost (19 ) (19 ) - - (38 ) (38 ) - - Amortization of unrecognized transition obligation - - 7 7 - - 14 14 Net periodic benefit cost $ 62 $ 76 $ 84 $ 80 $ 174 $ 150 $ 168 $ 158

FEDERAL HOME LOAN BANK ADVANC32

FEDERAL HOME LOAN BANK ADVANCES (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of contractual maturities and weighted average interest rates of FHLB advances	June 30, 2016 Contractual Maturity Amount Weighted (Dollars in thousands) Overnight $ 40,000 0.57 % 2016 111,545 0.68 % 2017 19,131 0.74 % 2018 25,606 1.05 % 2019 2,560 1.06 % 158,842 0.75 % $ 198,842 0.72 % December 31, 2015 Contractual Maturity Amount Weighted (Dollars in thousands) Overnight $ - -% 2016 249,599 0.75 % 2017 19,149 0.74 % 2018 25,781 1.04 % 2019 2,978 1.08 % 297,507 0.78 % $ 297,507 0.78 %

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2016
DERIVATIVES
Summary of information about the interest rate swap designated as a cash flow hedge	(Dollars in thousands) June 30, 2016 December 31, 2015 Notional amounts $ 125,000 $ 125,000 Weighted average pay rates 1.58 % 1.58 % Weighted average receive rates 0.63 % 0.51 % Weighted average maturity 2.72 years 3.22 years
Schedule of the net gains (losses) recorded, net of income tax, in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments	Amount of (loss) Amount of (loss) Amount of (loss) recognized in other (In thousands) recognized in OCI reclassified from OCI non-interest income Interest rate contracts (Effective Portion) to interest expense (Ineffective Portion) Three months ended June 30, 2016 $ (661 ) $ (239 ) $ - Six months ended June 30, 2016 $ (2,684 ) $ (489 ) $ - Three months ended June 30, 2015 $ 117 $ (176 ) $ - Six months ended June 30, 2015 $ (698 ) $ (310 ) $ -
Schedule of cash flow hedge included in the Consolidated Balance Sheets	June 30, 2016 December 31, 2015 Fair Fair Fair Fair Notional Value Value Notional Value Value (In thousands) Amount Asset Liability Amount Asset Liability Included in other assets/(liabilities): Interest rate swaps related to FHLB Advances $ 100,000 $ - $ (2,328 ) $ 100,000 $ 14 $ (713 ) Forward starting interest rate swap related to FHLB Advances $ 25,000 $ - $ (1,161 ) $ 25,000 $ - $ (595 )
Summary of information about interest rate swaps	(Dollars in thousands) June 30, 2016 December 31, 2015 Notional amounts $ 55,702 $ 56,328 Weighted average pay rates 3.48 % 3.39 % Weighted average receive rates 3.48 % 3.39 % Weighted average maturity 15.07 years 15.59 years Fair value of combined interest rate swaps $ - $ -

OTHER COMPREHENSIVE INCOME (L34

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2016
OTHER COMPREHENSIVE INCOME (LOSS)
Schedule of other comprehensive income (loss) components and related income tax effects	Three Months Ended Six Months Ended (In thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Unrealized holding gains (losses) on available for sale securities $ 2,725 $ (3,653 ) $ 12,465 $ 1,262 Reclassification adjustment for (gains) losses realized in income (383 ) - (449 ) 10 Income tax effect (950 ) 1,486 (4,867 ) (471 ) Net change in unrealized gains (losses) on available for sale securities 1,392 (2,167 ) 7,149 801 Reclassification adjustment for amortization realized in income 99 90 193 179 Income tax effect (41 ) 18 (74 ) (17 ) Net change in post-retirement obligation 58 108 119 162 Change in fair value of derivatives used for cash flow hedges (661 ) 117 (2,684 ) (698 ) Reclassification adjustment for losses realized in income 239 176 489 310 Income tax effect 171 (97 ) 891 164 Net change in unrealized (loss) gain on cash flow hedges (251 ) 196 (1,304 ) (224 ) Total $ 1,199 $ (1,863 ) $ 5,964 $ 739
Schedule of the accumulated other comprehensive income balances, net of income tax	Current Period (In thousands) December 31, 2015 Change June 30, 2016 Unrealized (losses) gains on available for sale securities $ (4,741 ) $ 7,149 $ 2,408 Unrealized (losses) gains on pension benefits (4,111 ) 119 (3,992 ) Unrealized losses on cash flow hedges (770 ) (1,304 ) (2,074 ) Total $ (9,622 ) $ 5,964 $ (3,658 )
Schedule of reclassifications out of accumulated other comprehensive income	Affected Line Item Three Months Ended Six Months Ended in the Consolidated (In thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Statements of Income Realized gains (losses) on sale of available for sale securities $ 383 $ - $ 449 $ (10 ) Net securities gains (losses) Income tax (expense) benefit (155 ) - (182 ) 4 Income tax expense Net of income tax $ 228 $ - $ 267 $ (6 ) Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service cost $ 19 $ 19 $ 38 $ 38 Salaries and employee benefits Transition obligation (7 ) (7 ) (14 ) (14 ) Salaries and employee benefits Actuarial losses (111 ) (102 ) (217 ) (203 ) Salaries and employee benefits $ (99 ) $ (90 ) $ (193 ) $ (179 ) Income tax benefit 40 (18 ) 78 17 Income tax expense Net of income tax $ (59 ) $ (108 ) $ (115 ) $ (162 ) Realized losses on cash flow hedges $ (239 ) $ (176 ) $ (489 ) $ (310 ) Interest expense Income tax benefit 97 74 198 126 Income tax expense Net of income tax $ (142 ) $ (102 ) $ (291 ) $ (184 ) Total reclassifications, net of income tax $ 27 $ (210 ) $ (139 ) $ (352 )

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	6 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Schedule of recognized identified assets acquired and liabilities assumed	Measurement As Initially Period (In thousands) Reported Adjustments As Adjusted Cash and due from banks $ 24,628 $ - $ 24,628 Securities 90,109 - 90,109 Loans 736,348 (6,935 ) 729,413 Bank Owned Life Insurance 21,445 - 21,445 Premises and equipment 6,398 (5,122 ) 1,276 Other intangible assets 6,698 - 6,698 Other assets 14,484 7,245 21,729 Total Assets Acquired $ 900,110 $ (4,812 ) $ 895,298 Deposits $ 786,853 $ - $ 786,853 Federal Home Loan Bank term advances 35,581 - 35,581 Other liabilities and accrued expenses 5,647 6,214 11,861 Total Liabilities Assumed $ 828,081 $ 6,214 $ 834,295 Net Assets Acquired 72,029 (11,026 ) 61,003 Consideration Paid 157,503 - 157,503 Goodwill Recorded on Acquisition $ 85,474 $ 11,026 $ 96,500

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
EARNINGS PER SHARE
Net Income	$ 8,854	$ 463	$ 17,480	$ 5,226
Dividends paid on and earnings allocated to participating securities	(181)	(16)	(351)	(131)
Income attributable to common stock	$ 8,673	$ 447	$ 17,129	$ 5,095
Weighted average common shares outstanding, including participating securities	17,507	12,488	17,493	12,106
Weighted average participating securities (in shares)	(358)	(305)	(356)	(303)
Weighted average common shares outstanding	17,149	12,183	17,137	11,803
Basic earnings per common share (in dollars per share)	$ 0.51	$ 0.04	$ 1	$ 0.43
Income attributable to common stock	$ 8,673	$ 447	$ 17,129	$ 5,095
Impact of assumed conversions - interest on 8.5% trust preferred securities	223		444
Income attributable to common stock including assumed conversions	$ 8,896	$ 447	$ 17,573	$ 5,095
Weighted average common shares outstanding	17,149	12,183	17,137	11,803
Incremental shares from assumed conversions of options and restricted stock units	14	3	9	3
Incremental shares from assumed conversions of 8.5% trust preferred securities	530		523
Weighted average common and equivalent shares outstanding	17,693	12,186	17,669	11,806
Diluted earnings per common share (in dollars per share)	$ 0.50	$ 0.04	$ 0.99	$ 0.43

EARNINGS PER SHARE (Details) (P

EARNINGS PER SHARE (Details) (Parentheticals)	6 Months Ended
	Jun. 30, 2016
EARNINGS PER SHARE
Interest on trust preferred securities	8.50%

EARNINGS PER SHARE (Detail Text

EARNINGS PER SHARE (Detail Textuals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options not included in the computation of diluted earnings per share (in shares)				34,739
Convertible trust preferred securities
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding amount of securities included in computation of diluted earnings per share	$ 16		$ 16
Outstanding amount of securities not included in computation of diluted earnings per share		$ 16		$ 16

STOCK BASED COMPENSATION PLAN39

STOCK BASED COMPENSATION PLANS (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Number of Options
Outstanding, January 1, 2016 (in shares)	23,725
Exercised (in shares)	(8,333)
Outstanding, June 30, 2016 (in shares)	15,392
Vested and Exercisable, June 30, 2016 (in shares)	15,392
Weighted Average Exercise Price
Outstanding, January 1, 2016 (in dollars per share)	$ 25.25
Exercised (in dollars per shares)	25.25
Outstanding, June 30, 2016 (in dollars per share)	25.25
Vested and Exercisable, June 30, 2016 (in dollars per share)	$ 25.25
Weighted Average Remaining Contractual Life
Outstanding, June 30, 2016	4 months 28 days
Vested and Exercisable, June 30, 2016	4 months 28 days
Aggregate Intrinsic Value
Outstanding, June 30, 2016	$ 48
Vested and Exercisable, June 30, 2016	$ 48	$ 50

STOCK BASED COMPENSATION PLAN40

STOCK BASED COMPENSATION PLANS (Details 1) - Stock options	Jun. 30, 2016$ / sharesshares
Stock options outstanding by range of exercise prices
Number of options (in shares)	15,392
Range of Exercise Prices
Stock options outstanding by range of exercise prices
Number of options (in shares)	15,392
Exercise Price (in dollars per share) | $ / shares	$ 25.25

STOCK BASED COMPENSATION PLAN41

STOCK BASED COMPENSATION PLANS (Details 2) - Restricted stock - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Shares
Unvested, January 1, 2016 (in shares)	281,076
Granted (in shares)	66,809	64,987
Vested (in shares)	(38,152)
Forfeited (in shares)	(3,266)
Unvested, June 30, 2016 (in shares)	306,467
Weighted Average Grant-Date Fair Value
Unvested, January 1, 2016 (in dollars per share)	$ 23.46
Granted (in dollars per share)	27.91
Vested (in dollars per share)	22.01
Forfeited (in dollars per share)	24.91
Unvested, June 30, 2016 (in dollars per share)	$ 24.60

STOCK BASED COMPENSATION PLAN42

STOCK BASED COMPENSATION PLANS (Detail Textuals) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense for restricted stock	$ 387,000	$ 302,000	$ 738,000	$ 604,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised			38,000	3,000
Intrinsic value of options outstanding and exercisable	$ 48,000	$ 50,000	$ 48,000	$ 50,000
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock awards granted			66,809	64,987
Restricted stock | Seven year specified vesting schedule
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Numbers of shares expected to vest			36,000	30,625
Vesting period			7 years	7 years
Years specified in vesting schedule after the third vesting period, period one			5 years	5 years
Years specified in vesting schedule after the third vesting period, period two			6 years	6 years
Years specified in vesting schedule after the third vesting period, period three			7 years	7 years
Restricted stock | Five year specified vesting schedule
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Numbers of shares expected to vest			27,209	24,812
Vesting period			5 years	5 years
Years specified in vesting schedule after the third vesting period, period one			3 years	3 years
Years specified in vesting schedule after the third vesting period, period two			4 years	4 years
Years specified in vesting schedule after the third vesting period, period three			5 years	5 years
Restricted stock | Three year ratable vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Numbers of shares expected to vest			36,000
Vesting period			3 years
Restricted stock | Five year ratable vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Numbers of shares expected to vest				9,550
Vesting period				5 years

STOCK BASED COMPENSATION PLAN43

STOCK BASED COMPENSATION PLANS (Detail Textuals 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Directors | Restricted stock units
Deferred compensation plan
Vesting period			1 year
Compensation expenses	$ 123,000	$ 78,000	$ 238,000	$ 112,000
LTI Plan | Restricted stock units
Deferred compensation plan
Vesting period			5 years
Additional holding period			2 years
Compensation expenses	$ 51,000	$ 22,000	$ 91,000	$ 36,000
LTI Plan | Restricted Stock Units Performance Vested Awards
Deferred compensation plan
Vesting period			3 years
Vested award (as a percent)	60.00%		60.00%
LTI Plan | Restricted Stock Units Time Vested Awards
Deferred compensation plan
Vested award (as a percent)	40.00%		40.00%

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available for sale:
Amortized Cost	$ 623,032	$ 808,168
Gross Unrealized Gains	6,883	1,193
Gross Unrealized Losses	(2,832)	(9,158)
Estimated Fair Value	627,083	800,203
Held to maturity:
Amortized Cost	222,058	208,351
Gross Unrealized Gains	7,253	2,867
Gross Unrealized Losses	(137)	(1,215)
Estimated Fair Value	229,174	210,003
Total securities
Amortized Cost	845,090	1,016,519
Gross Unrealized Gains	14,136	4,060
Gross Unrealized Losses	(2,969)	(10,373)
Total securities	856,257	1,010,206
U.S. GSE securities
Available for sale:
Amortized Cost	58,242	63,238
Gross Unrealized Gains	84
Gross Unrealized Losses	(1)	(564)
Estimated Fair Value	58,325	62,674
Held to maturity:
Amortized Cost		7,466
Gross Unrealized Gains		1
Gross Unrealized Losses
Estimated Fair Value		7,467
State and municipal obligations
Available for sale:
Amortized Cost	108,184	87,830
Gross Unrealized Gains	2,400	427
Gross Unrealized Losses	(28)	(322)
Estimated Fair Value	110,556	87,935
Held to maturity:
Amortized Cost	61,159	64,878
Gross Unrealized Gains	3,294	1,715
Gross Unrealized Losses		(113)
Estimated Fair Value	64,453	66,480
U.S. GSE residential mortgage-backed securities
Available for sale:
Amortized Cost	100,685	201,297
Gross Unrealized Gains	1,393	237
Gross Unrealized Losses	(4)	(1,270)
Estimated Fair Value	102,074	200,264
Held to maturity:
Amortized Cost	11,837	7,609
Gross Unrealized Gains	107
Gross Unrealized Losses		(106)
Estimated Fair Value	11,944	7,503
U.S. GSE residential collateralized mortgage obligations
Available for sale:
Amortized Cost	236,771	321,253
Gross Unrealized Gains	1,962	513
Gross Unrealized Losses	(135)	(3,888)
Estimated Fair Value	238,598	317,878
Held to maturity:
Amortized Cost	66,219	60,933
Gross Unrealized Gains	1,937	617
Gross Unrealized Losses	(33)	(498)
Estimated Fair Value	68,123	61,052
U.S. GSE commercial mortgage-backed securities
Available for sale:
Amortized Cost	6,488	12,491
Gross Unrealized Gains	213	7
Gross Unrealized Losses		(80)
Estimated Fair Value	6,701	12,418
Held to maturity:
Amortized Cost	29,119	23,056
Gross Unrealized Gains	912	210
Gross Unrealized Losses	(53)	(313)
Estimated Fair Value	29,978	22,953
U.S. GSE commercial collateralized mortgage obligations
Available for sale:
Amortized Cost	56,412	64,809
Gross Unrealized Gains	546	9
Gross Unrealized Losses	(47)	(620)
Estimated Fair Value	56,911	64,198
Held to maturity:
Amortized Cost	42,724	33,409
Gross Unrealized Gains	974	282
Gross Unrealized Losses	(51)	(185)
Estimated Fair Value	43,647	33,506
Other asset backed securities
Available for sale:
Amortized Cost	24,250	24,250
Gross Unrealized Gains
Gross Unrealized Losses	(1,940)	(1,879)
Estimated Fair Value	22,310	22,371
Corporate bonds
Available for sale:
Amortized Cost	32,000	33,000
Gross Unrealized Gains	285
Gross Unrealized Losses	(677)	(535)
Estimated Fair Value	31,608	32,465
Held to maturity:
Amortized Cost	11,000	11,000
Gross Unrealized Gains	29	42
Gross Unrealized Losses
Estimated Fair Value	$ 11,029	$ 11,042

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amortized Cost, Available for sale:
Within one year	$ 14,277
One to five years	74,503
Five to ten years	116,129
Beyond ten years	418,123
Total	623,032	$ 808,168
Fair Value, Available for sale:
Within one year	14,315
One to five years	75,060
Five to ten years	117,641
Beyond ten years	420,067
Estimated Fair Value	627,083	800,203
Amortized Cost, Held to maturity:
Within one year	3,644
One to five years	31,697
Five to ten years	67,599
Beyond ten years	119,118
Total	222,058	208,351
Fair Value, Held to maturity:
Within one year	3,665
One to five years	32,326
Five to ten years	71,025
Beyond ten years	122,158
Estimated Fair Value	$ 229,174	$ 210,003

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Available for sale:
Less than 12 months, Fair Value	$ 54,085	$ 488,360
Less than 12 months, Unrealized losses	(692)	(4,481)
Greater than 12 months, Fair Value	52,771	135,602
Greater than 12 months, Unrealized losses	(2,140)	(4,677)
Held to maturity:
Less than 12 months, Fair Value	11,318	63,690
Less than 12 months, Unrealized losses	(83)	(689)
Greater than 12 months, Fair Value	8,426	19,492
Greater than 12 months, Unrealized losses	(54)	(526)
U.S. GSE securities
Available for sale:
Less than 12 months, Fair Value	7,999	37,759
Less than 12 months, Unrealized losses	(1)	(235)
Greater than 12 months, Fair Value		24,914
Greater than 12 months, Unrealized losses		(329)
Held to maturity:
Less than 12 months, Fair Value
Less than 12 months, Unrealized losses
Greater than 12 months, Fair Value
Greater than 12 months, Unrealized losses
State and municipal obligations
Available for sale:
Less than 12 months, Fair Value	9,853	39,621
Less than 12 months, Unrealized losses	(27)	(298)
Greater than 12 months, Fair Value	243	5,118
Greater than 12 months, Unrealized losses	(1)	(24)
Held to maturity:
Less than 12 months, Fair Value		18,375
Less than 12 months, Unrealized losses		(113)
Greater than 12 months, Fair Value
Greater than 12 months, Unrealized losses
U.S. GSE residential mortgage-backed securities
Available for sale:
Less than 12 months, Fair Value		136,025
Less than 12 months, Unrealized losses		(1,224)
Greater than 12 months, Fair Value	1,782	1,510
Greater than 12 months, Unrealized losses	(4)	(46)
Held to maturity:
Less than 12 months, Fair Value		7,503
Less than 12 months, Unrealized losses		(106)
Greater than 12 months, Fair Value
Greater than 12 months, Unrealized losses
U.S. GSE residential collateralized mortgage obligations
Available for sale:
Less than 12 months, Fair Value	10,183	187,543
Less than 12 months, Unrealized losses	(48)	(1,781)
Greater than 12 months, Fair Value	17,812	66,830
Greater than 12 months, Unrealized losses	(87)	(2,107)
Held to maturity:
Less than 12 months, Fair Value	218	15,918
Less than 12 months, Unrealized losses		(149)
Greater than 12 months, Fair Value	4,457	15,679
Greater than 12 months, Unrealized losses	(33)	(349)
U.S. GSE commercial mortgage-backed securities
Available for sale:
Less than 12 months, Fair Value		8,594
Less than 12 months, Unrealized losses		(80)
Greater than 12 months, Fair Value
Greater than 12 months, Unrealized losses
Held to maturity:
Less than 12 months, Fair Value	6,201	13,982
Less than 12 months, Unrealized losses	(53)	(313)
Greater than 12 months, Fair Value
Greater than 12 months, Unrealized losses
U.S. GSE commercial collateralized mortgage obligations
Available for sale:
Less than 12 months, Fair Value	8,644	51,178
Less than 12 months, Unrealized losses	(22)	(503)
Greater than 12 months, Fair Value	5,706	10,034
Greater than 12 months, Unrealized losses	(25)	(117)
Held to maturity:
Less than 12 months, Fair Value	4,899	7,912
Less than 12 months, Unrealized losses	(30)	(8)
Greater than 12 months, Fair Value	3,969	3,813
Greater than 12 months, Unrealized losses	(21)	(177)
Other asset backed securities
Available for sale:
Less than 12 months, Fair Value
Less than 12 months, Unrealized losses
Greater than 12 months, Fair Value	22,310	22,371
Greater than 12 months, Unrealized losses	(1,940)	(1,879)
Corporate bonds
Available for sale:
Less than 12 months, Fair Value	17,406	27,640
Less than 12 months, Unrealized losses	(594)	(360)
Greater than 12 months, Fair Value	4,918	4,825
Greater than 12 months, Unrealized losses	(83)	(175)
Held to maturity:
Less than 12 months, Fair Value
Less than 12 months, Unrealized losses
Greater than 12 months, Fair Value
Greater than 12 months, Unrealized losses

SECURITIES (Detail Textuals)

SECURITIES (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Other than Temporary Impairment Losses, Investments [Abstract]
Proceeds from sales of securities available for sale	$ 235,700		$ 264,358	$ 73,788
Gross gains realized on sale of securities available for sale	1,300		1,600	500
Gross losses realized on sale of securities available for sale	900		1,200	500
Proceeds from calls of securities	22,300	$ 10,300	53,000	$ 10,500
Fair value of securities pledged to secure public deposits and FHLB and FRB overnight borrowings	650,900		650,900		$ 611,000
Amount owned in FHLB, ACBB and FRB stock	$ 20,894		$ 20,894		$ 24,788

ESTIMATED FAIR VALUE OF FINAN48

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets measured at fair value on recurring basis
Available for sale securities	$ 627,083	$ 800,203
U.S. GSE securities
Assets measured at fair value on recurring basis
Available for sale securities	58,325	62,674
State and municipal obligations
Assets measured at fair value on recurring basis
Available for sale securities	110,556	87,935
U.S. GSE residential mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities	102,074	200,264
U.S. GSE residential collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities	238,598	317,878
U.S. GSE commercial mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities	6,701	12,418
U.S. GSE commercial collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities	56,911	64,198
Other asset backed securities
Assets measured at fair value on recurring basis
Available for sale securities	22,310	22,371
Corporate bonds
Assets measured at fair value on recurring basis
Available for sale securities	31,608	32,465
Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets measured at fair value on recurring basis
Available for sale securities
Significant Other Observable Inputs (Level 2)
Assets measured at fair value on recurring basis
Available for sale securities	627,083	800,203
Significant Unobservable Inputs (Level 3)
Assets measured at fair value on recurring basis
Available for sale securities
Carrying Value
Assets measured at fair value on recurring basis
Available for sale securities	627,083	800,203
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | U.S. GSE securities
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | State and municipal obligations
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | U.S. GSE residential mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | U.S. GSE residential collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | U.S. GSE commercial mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | U.S. GSE commercial collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Other asset backed securities
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Corporate bonds
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Derivatives
Assets measured at fair value on recurring basis
Available for sale securities
Financial Liabilities:
Derivatives
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets measured at fair value on recurring basis
Available for sale securities	627,083	800,203
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE securities
Assets measured at fair value on recurring basis
Available for sale securities	58,325	62,674
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations
Assets measured at fair value on recurring basis
Available for sale securities	110,556	87,935
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE residential mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities	102,074	200,264
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE residential collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities	238,598	317,878
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE commercial mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities	6,701	12,418
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE commercial collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities	56,911	64,198
Recurring basis | Significant Other Observable Inputs (Level 2) | Other asset backed securities
Assets measured at fair value on recurring basis
Available for sale securities	22,310	22,371
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds
Assets measured at fair value on recurring basis
Available for sale securities	31,608	32,465
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivatives
Assets measured at fair value on recurring basis
Available for sale securities	2,871	779
Financial Liabilities:
Derivatives	6,360	2,073
Recurring basis | Significant Unobservable Inputs (Level 3)
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. GSE securities
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | State and municipal obligations
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. GSE residential mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. GSE residential collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. GSE commercial mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. GSE commercial collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | Other asset backed securities
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate bonds
Assets measured at fair value on recurring basis
Available for sale securities
Recurring basis | Significant Unobservable Inputs (Level 3) | Derivatives
Assets measured at fair value on recurring basis
Available for sale securities
Financial Liabilities:
Derivatives
Recurring basis | Carrying Value
Assets measured at fair value on recurring basis
Available for sale securities	627,083	800,203
Recurring basis | Carrying Value | U.S. GSE securities
Assets measured at fair value on recurring basis
Available for sale securities	58,325	62,674
Recurring basis | Carrying Value | State and municipal obligations
Assets measured at fair value on recurring basis
Available for sale securities	110,556	87,935
Recurring basis | Carrying Value | U.S. GSE residential mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities	102,074	200,264
Recurring basis | Carrying Value | U.S. GSE residential collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities	238,598	317,878
Recurring basis | Carrying Value | U.S. GSE commercial mortgage-backed securities
Assets measured at fair value on recurring basis
Available for sale securities	6,701	12,418
Recurring basis | Carrying Value | U.S. GSE commercial collateralized mortgage obligations
Assets measured at fair value on recurring basis
Available for sale securities	56,911	64,198
Recurring basis | Carrying Value | Other asset backed securities
Assets measured at fair value on recurring basis
Available for sale securities	22,310	22,371
Recurring basis | Carrying Value | Corporate bonds
Assets measured at fair value on recurring basis
Available for sale securities	31,608	32,465
Recurring basis | Carrying Value | Derivatives
Assets measured at fair value on recurring basis
Available for sale securities	2,871	779
Financial Liabilities:
Derivatives	$ 6,360	$ 2,073

ESTIMATED FAIR VALUE OF FINAN49

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets measured at fair value on non-recurring basis
Impaired loans	$ 100	$ 500
Non-recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets measured at fair value on non-recurring basis
Impaired loans
Other real estate owned
Non-recurring basis | Significant Other Observable Inputs (Level 2)
Assets measured at fair value on non-recurring basis
Impaired loans
Other real estate owned
Non-recurring basis | Significant Unobservable Inputs (Level 3)
Assets measured at fair value on non-recurring basis
Impaired loans	84	483
Other real estate owned		250
Carrying Value | Non-recurring basis
Assets measured at fair value on non-recurring basis
Impaired loans	$ 84	483
Other real estate owned		$ 250

ESTIMATED FAIR VALUE OF FINAN50

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financial assets:
Cash and due from banks	$ 50,581	$ 79,750
Interest bearing deposits with banks	29,015	24,808
Securities available for sale	627,083	800,203
Securities held to maturity	229,174	210,003
Accrued interest receivable	8,916	9,270
Financial liabilities:
Junior Subordinated Debentures	15,525	15,878
Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and due from banks	50,581	79,750
Interest bearing deposits with banks
Securities available for sale
Securities restricted
Securities held to maturity
Loans, net
Derivatives
Accrued interest receivable
Financial liabilities:
Certificates of deposit
Demand and other deposits	2,663,184	2,550,770
Federal funds purchased	150,000	120,000
Federal Home Loan Bank advances	40,000	197,243
Repurchase agreements
Subordinated Debentures
Junior Subordinated Debentures
Derivatives
Accrued interest payable	103	93
Significant Other Observable Inputs (Level 2)
Financial assets:
Cash and due from banks
Interest bearing deposits with banks	29,015	24,808
Securities available for sale	627,083	800,203
Securities restricted
Securities held to maturity	229,174	210,003
Loans, net
Derivatives	2,871	779
Accrued interest receivable	2,840	3,228
Financial liabilities:
Certificates of deposit	191,657	293,368
Demand and other deposits
Federal funds purchased
Federal Home Loan Bank advances	161,990	100,772
Repurchase agreements	50,939	51,480
Subordinated Debentures
Junior Subordinated Debentures
Derivatives	6,360	2,073
Accrued interest payable	1,353	1,551
Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and due from banks
Interest bearing deposits with banks
Securities available for sale
Securities restricted
Securities held to maturity
Loans, net	2,520,109	2,379,171
Derivatives
Accrued interest receivable	6,076	6,042
Financial liabilities:
Certificates of deposit
Demand and other deposits
Federal funds purchased
Federal Home Loan Bank advances
Repurchase agreements
Subordinated Debentures	84,810	78,830
Junior Subordinated Debentures	17,709	16,566
Derivatives
Accrued interest payable
Carrying Amount
Financial assets:
Cash and due from banks	50,581	79,750
Interest bearing deposits with banks	29,015	24,808
Securities available for sale	627,083	800,203
Securities restricted	20,894	24,788
Securities held to maturity	222,058	208,351
Loans, net	2,502,218	2,390,030
Derivatives	2,871	779
Accrued interest receivable	8,916	9,270
Financial liabilities:
Certificates of deposit	190,479	292,855
Demand and other deposits	2,663,184	2,550,770
Federal funds purchased	150,000	120,000
Federal Home Loan Bank advances	198,842	297,507
Repurchase agreements	50,895	50,891
Subordinated Debentures	78,432	78,363
Junior Subordinated Debentures	15,525	15,878
Derivatives	6,360	2,073
Accrued interest payable	1,456	1,644
Fair Value
Financial assets:
Cash and due from banks	50,581	79,750
Interest bearing deposits with banks	29,015	24,808
Securities available for sale	627,083	800,203
Securities restricted
Securities held to maturity	229,174	210,003
Loans, net	2,520,109	2,379,171
Derivatives	2,871	779
Accrued interest receivable	8,916	9,270
Financial liabilities:
Certificates of deposit	191,657	293,368
Demand and other deposits	2,663,184	2,550,770
Federal funds purchased	150,000	120,000
Federal Home Loan Bank advances	201,990	298,015
Repurchase agreements	50,939	51,480
Subordinated Debentures	84,810	78,830
Junior Subordinated Debentures	17,709	16,566
Derivatives	6,360	2,073
Accrued interest payable	$ 1,456	$ 1,644

ESTIMATED FAIR VALUE OF FINAN51

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textuals) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
Impaired loans	$ 100	$ 500
Outstanding balance of impaired loans with an allowance recorded	227	512
Valuation allowance on impaired loans	143	29
Additional provision for loan losses	$ 100	30
Other real estate owned		$ 250

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Classifications of loans
Total loans	$ 2,521,404		$ 2,407,522
Net deferred loan costs and fees	3,522		3,252
Loans	2,524,926		2,410,774
Allowance for loan losses	(22,708)	$ (21,799)	(20,744)	$ (18,818)	$ (18,260)	$ (17,637)
Loans, net	2,502,218		2,390,030
Commercial real estate | Mortgage loans
Classifications of loans
Total loans	1,016,322		999,474
Allowance for loan losses	(7,632)	(7,446)	(7,850)	(7,166)	(6,990)	(6,994)
Multi-family | Mortgage loans
Classifications of loans
Total loans	427,277		350,793
Allowance for loan losses	(5,287)	(4,669)	(4,208)	(3,015)	(2,980)	(2,670)
Residential real estate | Mortgage loans
Classifications of loans
Total loans	452,370		446,740
Allowance for loan losses	(2,753)	(2,698)	(2,115)	(1,989)	(2,137)	(2,208)
Commercial and Industrial
Classifications of loans
Total loans	511,517		501,766
Allowance for loan losses	(5,771)	(5,568)	(5,405)	(5,273)	(4,905)	(4,526)
Real estate construction and land loans
Classifications of loans
Total loans	96,683		91,153
Allowance for loan losses	(1,131)	(1,277)	(1,030)	(1,236)	(1,106)	(1,104)
Installment/consumer loans
Classifications of loans
Total loans	17,235		17,596
Allowance for loan losses	$ (134)	$ (141)	$ (136)	$ (139)	$ (142)	$ (135)

LOANS (Details 1)

LOANS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Loans by class categorized by internally assigned risk grades
Total loans	$ 2,521,404	$ 2,407,522
Pass
Loans by class categorized by internally assigned risk grades
Total loans	2,501,551	2,380,596
Special Mention
Loans by class categorized by internally assigned risk grades
Total loans	6,393	7,733
Substandard
Loans by class categorized by internally assigned risk grades
Total loans	13,460	19,193
Doubtful
Loans by class categorized by internally assigned risk grades
Total loans
Commercial real estate | Mortgage loans
Loans by class categorized by internally assigned risk grades
Total loans	1,016,322	999,474
Commercial real estate | Mortgage loans | Owner occupied
Loans by class categorized by internally assigned risk grades
Total loans	416,035	471,321
Commercial real estate | Mortgage loans | Owner occupied | Pass
Loans by class categorized by internally assigned risk grades
Total loans	412,605	465,967
Commercial real estate | Mortgage loans | Owner occupied | Special Mention
Loans by class categorized by internally assigned risk grades
Total loans	2,541	3,239
Commercial real estate | Mortgage loans | Owner occupied | Substandard
Loans by class categorized by internally assigned risk grades
Total loans	889	2,115
Commercial real estate | Mortgage loans | Owner occupied | Doubtful
Loans by class categorized by internally assigned risk grades
Total loans
Commercial real estate | Mortgage loans | Non-owner occupied
Loans by class categorized by internally assigned risk grades
Total loans	600,287	528,153
Commercial real estate | Mortgage loans | Non-owner occupied | Pass
Loans by class categorized by internally assigned risk grades
Total loans	595,001	519,124
Commercial real estate | Mortgage loans | Non-owner occupied | Special Mention
Loans by class categorized by internally assigned risk grades
Total loans	510	542
Commercial real estate | Mortgage loans | Non-owner occupied | Substandard
Loans by class categorized by internally assigned risk grades
Total loans	4,776	8,487
Commercial real estate | Mortgage loans | Non-owner occupied | Doubtful
Loans by class categorized by internally assigned risk grades
Total loans
Multi-Family | Pass
Loans by class categorized by internally assigned risk grades
Total loans	427,277	350,785
Multi-Family | Special Mention
Loans by class categorized by internally assigned risk grades
Total loans
Multi-Family | Substandard
Loans by class categorized by internally assigned risk grades
Total loans		8
Multi-Family | Doubtful
Loans by class categorized by internally assigned risk grades
Total loans
Multi-Family | Mortgage loans
Loans by class categorized by internally assigned risk grades
Total loans	427,277	350,793
Residential real estate | Mortgage loans
Loans by class categorized by internally assigned risk grades
Total loans	452,370	446,740
Residential real estate | Mortgage loans | Residential mortgage
Loans by class categorized by internally assigned risk grades
Total loans	384,407	378,414
Residential real estate | Mortgage loans | Residential mortgage | Pass
Loans by class categorized by internally assigned risk grades
Total loans	382,246	377,482
Residential real estate | Mortgage loans | Residential mortgage | Special Mention
Loans by class categorized by internally assigned risk grades
Total loans	85	87
Residential real estate | Mortgage loans | Residential mortgage | Substandard
Loans by class categorized by internally assigned risk grades
Total loans	2,076	845
Residential real estate | Mortgage loans | Residential mortgage | Doubtful
Loans by class categorized by internally assigned risk grades
Total loans
Residential real estate | Mortgage loans | Home equity
Loans by class categorized by internally assigned risk grades
Total loans	67,963	68,326
Residential real estate | Mortgage loans | Home equity | Pass
Loans by class categorized by internally assigned risk grades
Total loans	66,548	66,910
Residential real estate | Mortgage loans | Home equity | Special Mention
Loans by class categorized by internally assigned risk grades
Total loans	396	523
Residential real estate | Mortgage loans | Home equity | Substandard
Loans by class categorized by internally assigned risk grades
Total loans	1,019	893
Residential real estate | Mortgage loans | Home equity | Doubtful
Loans by class categorized by internally assigned risk grades
Total loans
Commercial and Industrial
Loans by class categorized by internally assigned risk grades
Total loans	511,517	501,766
Commercial and Industrial | Secured
Loans by class categorized by internally assigned risk grades
Total loans	114,336	123,737
Commercial and Industrial | Secured | Pass
Loans by class categorized by internally assigned risk grades
Total loans	111,975	121,037
Commercial and Industrial | Secured | Special Mention
Loans by class categorized by internally assigned risk grades
Total loans	276	151
Commercial and Industrial | Secured | Substandard
Loans by class categorized by internally assigned risk grades
Total loans	2,085	2,549
Commercial and Industrial | Secured | Doubtful
Loans by class categorized by internally assigned risk grades
Total loans
Commercial and Industrial | Unsecured
Loans by class categorized by internally assigned risk grades
Total loans	397,181	378,029
Commercial and Industrial | Unsecured | Pass
Loans by class categorized by internally assigned risk grades
Total loans	392,421	370,642
Commercial and Industrial | Unsecured | Special Mention
Loans by class categorized by internally assigned risk grades
Total loans	2,585	3,191
Commercial and Industrial | Unsecured | Substandard
Loans by class categorized by internally assigned risk grades
Total loans	2,175	4,196
Commercial and Industrial | Unsecured | Doubtful
Loans by class categorized by internally assigned risk grades
Total loans
Real estate construction and land loans
Loans by class categorized by internally assigned risk grades
Total loans	96,683	91,153
Real estate construction and land loans | Pass
Loans by class categorized by internally assigned risk grades
Total loans	96,343	91,153
Real estate construction and land loans | Special Mention
Loans by class categorized by internally assigned risk grades
Total loans
Real estate construction and land loans | Substandard
Loans by class categorized by internally assigned risk grades
Total loans	340
Real estate construction and land loans | Doubtful
Loans by class categorized by internally assigned risk grades
Total loans
Installment/consumer loans
Loans by class categorized by internally assigned risk grades
Total loans	17,235	17,596
Installment/consumer loans | Pass
Loans by class categorized by internally assigned risk grades
Total loans	17,135	17,496
Installment/consumer loans | Special Mention
Loans by class categorized by internally assigned risk grades
Total loans
Installment/consumer loans | Substandard
Loans by class categorized by internally assigned risk grades
Total loans	100	100
Installment/consumer loans | Doubtful
Loans by class categorized by internally assigned risk grades
Total loans

LOANS (Details 2)

LOANS (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing	$ 1,894	$ 964
Nonaccrual Including 90 Days or More Past Due	2,050	1,350
Total Past Due and Nonaccrual	7,708	3,819
Current	2,513,696	2,403,703
Total Loans	2,521,404	2,407,522
30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	3,177	1,136
60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	587	369
Commercial real estate | Mortgage loans
Past Due and Nonaccrual Loans
Total Loans	1,016,322	999,474
Commercial real estate | Mortgage loans | Owner occupied
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing	611	435
Nonaccrual Including 90 Days or More Past Due	211	631
Total Past Due and Nonaccrual	1,414	1,066
Current	414,621	470,255
Total Loans	416,035	471,321
Commercial real estate | Mortgage loans | Owner occupied | 30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	592
Commercial real estate | Mortgage loans | Owner occupied | 60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual
Commercial real estate | Mortgage loans | Non-owner occupied
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing
Nonaccrual Including 90 Days or More Past Due
Total Past Due and Nonaccrual	1,855
Current	598,432	528,153
Total Loans	600,287	528,153
Commercial real estate | Mortgage loans | Non-owner occupied | 30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	1,855
Commercial real estate | Mortgage loans | Non-owner occupied | 60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual
Multi-Family | Mortgage loans
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing
Nonaccrual Including 90 Days or More Past Due
Total Past Due and Nonaccrual
Current	427,277	350,793
Total Loans	427,277	350,793
Multi-Family | Mortgage loans | 30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual
Multi-Family | Mortgage loans | 60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual
Residential real estate | Mortgage loans
Past Due and Nonaccrual Loans
Total Loans	452,370	446,740
Residential real estate | Mortgage loans | Residential mortgage
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing	852
Nonaccrual Including 90 Days or More Past Due	557	62
Total Past Due and Nonaccrual	2,317	1,246
Current	382,090	377,168
Total Loans	384,407	378,414
Residential real estate | Mortgage loans | Residential mortgage | 30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	489	939
Residential real estate | Mortgage loans | Residential mortgage | 60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	419	245
Residential real estate | Mortgage loans | Home equity
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing	223	188
Nonaccrual Including 90 Days or More Past Due	909	610
Total Past Due and Nonaccrual	1,372	967
Current	66,591	67,359
Total Loans	67,963	68,326
Residential real estate | Mortgage loans | Home equity | 30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	119	69
Residential real estate | Mortgage loans | Home equity | 60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	121	100
Commercial and Industrial
Past Due and Nonaccrual Loans
Total Loans	511,517	501,766
Commercial and Industrial | Secured
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing	208	341
Nonaccrual Including 90 Days or More Past Due
Total Past Due and Nonaccrual	208	341
Current	114,128	123,396
Total Loans	114,336	123,737
Commercial and Industrial | Secured | 30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual
Commercial and Industrial | Secured | 60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual
Commercial and Industrial | Unsecured
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing
Nonaccrual Including 90 Days or More Past Due	369	44
Total Past Due and Nonaccrual	537	196
Current	396,644	377,833
Total Loans	397,181	378,029
Commercial and Industrial | Unsecured | 30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	122	128
Commercial and Industrial | Unsecured | 60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	46	24
Real estate construction and land loans
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing
Nonaccrual Including 90 Days or More Past Due
Total Past Due and Nonaccrual
Current	96,683	91,153
Total Loans	96,683	91,153
Real estate construction and land loans | 30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual
Real estate construction and land loans | 60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual
Installment/consumer loans
Past Due and Nonaccrual Loans
>90 Days Past Due and Accruing
Nonaccrual Including 90 Days or More Past Due	4	3
Total Past Due and Nonaccrual	5	3
Current	17,230	17,593
Total Loans	17,235	17,596
Installment/consumer loans | 30-59 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual
Installment/consumer loans | 60-89 Days Past Due
Past Due and Nonaccrual Loans
Total Past Due and Nonaccrual	$ 1

LOANS (Details 3)

LOANS (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Recorded Investment
With no related allowance recorded	$ 3,864		$ 3,864		$ 2,079
With an allowance recorded	227		227		512
Total impaired loans	4,091		4,091		2,591
Unpaid Principal Balance
With no related allowance recorded	4,171		4,171		2,361
With an allowance recorded	227		227		512
Total impaired loans	4,398		4,398		2,873
Related Allocated Allowance
With an allowance recorded	143		143		29
Total impaired loans	143		143		29
Average Recorded Investment
With no related allowance recorded	3,808	$ 3,107	3,242	$ 2,799
With an allowance recorded	138	600	102	555
Average recorded investment in impaired loans	3,946	3,707	3,344	3,354
Interest Income Recognized
With no related allowance recorded	29	24	57	42
With an allowance recorded	2	6	4	12
Total impaired loans	31	30	61	54
Commercial real estate | Mortgage loans | Owner occupied
Recorded Investment
With no related allowance recorded	355		355		384
With an allowance recorded
Total impaired loans	355		355		384
Unpaid Principal Balance
With no related allowance recorded	550		550		564
With an allowance recorded
Total impaired loans	550		550		564
Related Allocated Allowance
With an allowance recorded
Total impaired loans
Average Recorded Investment
With no related allowance recorded	360	721	368	729
With an allowance recorded
Average recorded investment in impaired loans	360	721	368	729
Interest Income Recognized
With no related allowance recorded	3	2	5	5
With an allowance recorded
Total impaired loans	3	2	5	5
Commercial real estate | Mortgage loans | Non-owner occupied
Recorded Investment
With no related allowance recorded	1,229		1,229		927
With an allowance recorded					318
Total impaired loans	1,229		1,229		1,245
Unpaid Principal Balance
With no related allowance recorded	1,229		1,229		928
With an allowance recorded					318
Total impaired loans	1,229		1,229		1,246
Related Allocated Allowance
With an allowance recorded					20
Total impaired loans					20
Average Recorded Investment
With no related allowance recorded	1,232	942	1,236	945
With an allowance recorded		321		321
Average recorded investment in impaired loans	1,232	1,263	1,236	1,266
Interest Income Recognized
With no related allowance recorded	18	16	37	31
With an allowance recorded		4		7
Total impaired loans	18	20	37	38
Residential real estate | Mortgage loans | Residential mortgage
Recorded Investment
With no related allowance recorded	557		557		62
With an allowance recorded
Total impaired loans	557		557		62
Unpaid Principal Balance
With no related allowance recorded	571		571		73
With an allowance recorded
Total impaired loans	571		571		73
Related Allocated Allowance
With an allowance recorded
Total impaired loans
Average Recorded Investment
With no related allowance recorded	558	67	378	68
With an allowance recorded
Average recorded investment in impaired loans	558	67	378	68
Interest Income Recognized
With no related allowance recorded
With an allowance recorded
Total impaired loans
Residential real estate | Mortgage loans | Home equity
Recorded Investment
With no related allowance recorded	909		909		610
With an allowance recorded
Total impaired loans	909		909		610
Unpaid Principal Balance
With no related allowance recorded	1,007		1,007		700
With an allowance recorded
Total impaired loans	1,007		1,007		700
Related Allocated Allowance
With an allowance recorded
Total impaired loans
Average Recorded Investment
With no related allowance recorded	884	1,163	674	870
With an allowance recorded		150		100
Average recorded investment in impaired loans	884	1,313	674	970
Interest Income Recognized
With no related allowance recorded
With an allowance recorded
Total impaired loans
Commercial and Industrial | Secured
Recorded Investment
With no related allowance recorded	196		196		96
With an allowance recorded
Total impaired loans	196		196		96
Unpaid Principal Balance
With no related allowance recorded	196		196		96
With an allowance recorded
Total impaired loans	196		196		96
Related Allocated Allowance
With an allowance recorded
Total impaired loans
Average Recorded Investment
With no related allowance recorded	196	113	163	80
With an allowance recorded
Average recorded investment in impaired loans	196	113	163	80
Interest Income Recognized
With no related allowance recorded	3	2	6	2
With an allowance recorded
Total impaired loans	3	2	6	2
Commercial and Industrial | Unsecured
Recorded Investment
With no related allowance recorded	618		618
With an allowance recorded	227		227		194
Total impaired loans	845		845		194
Unpaid Principal Balance
With no related allowance recorded	618		618
With an allowance recorded	227		227		194
Total impaired loans	845		845		194
Related Allocated Allowance
With an allowance recorded	143		143		9
Total impaired loans	143		143		$ 9
Average Recorded Investment
With no related allowance recorded	578	101	423	107
With an allowance recorded	138	129	102	134
Average recorded investment in impaired loans	716	230	525	241
Interest Income Recognized
With no related allowance recorded	5	4	9	4
With an allowance recorded	2	2	4	5
Total impaired loans	$ 7	$ 6	$ 13	$ 9

LOANS (Details 4)

LOANS (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Activity in the accretable yield for the purchased credit impaired loans
Balance at beginning of period	$ 6,872	$ 7,560	$ 7,113	$ 8,432
Accretable discount arising from acquisition of PCI loans		259		259
Accretion	(1,866)	(1,406)	(2,658)	(2,658)
Reclassification from nonaccretable difference during the period	959	1,117	1,092	1,497
Other	(2)		416
Accretable discount at end of period	$ 5,963	$ 7,530	$ 5,963	$ 7,530

LOANS (Detail Textuals)

LOANS (Detail Textuals) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)Family	Dec. 31, 2015USD ($)	Jun. 19, 2015USD ($)	Feb. 14, 2014USD ($)
CNB
Classifications of loans
Addition in acquired loans recorded at fair value			$ 729,413
Fair value of loans acquired	$ 603,400	$ 659,700
FNBNY
Classifications of loans
Addition in acquired loans recorded at fair value				$ 89,700
Fair value of loans acquired	32,400	$ 37,700
Commercial real estate | Mortgage loans | Minimum
Lending Risk
Loan amount beyond which annual financial information is sought	$ 250
Residential real estate | Mortgage loans | Home equity | Minimum
Lending Risk
Loan-to-value ratio (as a percent)	80.00%
Multi-Family | Mortgage loans
Lending Risk
Number of families having income producing residential investment properties | Family	5
Multi-Family | Mortgage loans | Maximum
Lending Risk
Loan-to-value ratio (as a percent)	75.00%

LOANS (Detail Textuals 1)

LOANS (Detail Textuals 1) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016USD ($)Loan	Jun. 30, 2015USD ($)Loan	Dec. 31, 2015USD ($)
Troubled Debt Restructurings
Total loans	$ 2,521,404		$ 2,407,522
Impaired loans	4,100		2,600
Other real estate owned			250
Loans modified as TDR	$ 700	$ 100
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | Loan	3	2
Period of modified contractually past due loans to be considered as payment default	30 days
Charge off relating to TDR			300
Nonaccrual troubled debt restructured loans	$ 100		100
Amount of current and performing TDR loans	2,100		1,700
Appraised value of collateral for nonaccrual TDR loans	1,300		300
Post-Modification of other than troubled debt restructuring, recorded investment	11,800,000
Special Mention
Troubled Debt Restructurings
Total loans	6,393		7,733
Substandard
Troubled Debt Restructurings
Total loans	13,460		19,193
FNBNY
Acquired Loans
Contractually required principal and interest payments receivable	40,300
Expected cash flows	28,400
Fair value (initial carrying amount) of purchased credit impaired loans	21,800
Non-accretable difference	11,900
Initial accretable yield	6,600
Outstanding balance of purchased credit impaired loans	13,300		16,700
Carrying amount of purchased credit impaired loans	7,700		8,300
Remaining non-accretable difference	1,400		1,500
FNBNY | Special Mention
Troubled Debt Restructurings
Total loans	100		100
FNBNY | Substandard
Troubled Debt Restructurings
Total loans	200		200
CNB
Acquired Loans
Contractually required principal and interest payments receivable	23,400
Expected cash flows	10,100
Fair value (initial carrying amount) of purchased credit impaired loans	8,700
Non-accretable difference	13,300
Initial accretable yield	1,400
Outstanding balance of purchased credit impaired loans	17,700		22,500
Carrying amount of purchased credit impaired loans	5,300		8,200
Remaining non-accretable difference	10,700		13,300
CNB | 30-59 Days Past Due
Troubled Debt Restructurings
Total loans	3,300
Acquired loans			1,200
CNB | Special Mention
Troubled Debt Restructurings
Total loans	20		20
CNB | Substandard
Troubled Debt Restructurings
Total loans	$ 4,300		$ 9,600

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Allowance for Loan Losses:
Individually evaluated for impairment	$ 143		$ 29
Collectively evaluated for impairment	22,565		20,715
Loans acquired with deteriorated credit quality
Total Allowance for Loan Losses	22,708	$ 21,799	20,744	$ 18,818	$ 18,260	$ 17,637
Loans:
Ending balance: individually evaluated for impairment, loans	4,091		2,591
Ending balance: collectively evaluated for impairment, loans	2,503,774		2,392,859
Ending balance: loans acquired with deteriorated credit quality	13,539		12,072
Total Loans	2,521,404		2,407,522
Commercial Real Estate | Mortgage loans
Allowance for Loan Losses:
Individually evaluated for impairment			20
Collectively evaluated for impairment	7,632		7,830
Loans acquired with deteriorated credit quality
Total Allowance for Loan Losses	7,632	7,446	7,850	7,166	6,990	6,994
Loans:
Ending balance: individually evaluated for impairment, loans	1,584		1,629
Ending balance: collectively evaluated for impairment, loans	1,010,018		997,210
Ending balance: loans acquired with deteriorated credit quality	4,720		635
Total Loans	1,016,322		999,474
Multi-Family | Mortgage loans
Allowance for Loan Losses:
Individually evaluated for impairment
Collectively evaluated for impairment	5,287		4,208
Loans acquired with deteriorated credit quality
Total Allowance for Loan Losses	5,287	4,669	4,208	3,015	2,980	2,670
Loans:
Ending balance: individually evaluated for impairment, loans
Ending balance: collectively evaluated for impairment, loans	423,922		347,054
Ending balance: loans acquired with deteriorated credit quality	3,355		3,739
Total Loans	427,277		350,793
Residential Real Estate | Mortgage loans
Allowance for Loan Losses:
Individually evaluated for impairment
Collectively evaluated for impairment	2,753		2,115
Loans acquired with deteriorated credit quality
Total Allowance for Loan Losses	2,753	2,698	2,115	1,989	2,137	2,208
Loans:
Ending balance: individually evaluated for impairment, loans	1,465		672
Ending balance: collectively evaluated for impairment, loans	450,050		444,801
Ending balance: loans acquired with deteriorated credit quality	855		1,267
Total Loans	452,370		446,740
Commercial, Industrial and Agricultural Loans
Allowance for Loan Losses:
Individually evaluated for impairment	143		9
Collectively evaluated for impairment	5,628		5,396
Loans acquired with deteriorated credit quality
Total Allowance for Loan Losses	5,771	5,568	5,405	5,273	4,905	4,526
Loans:
Ending balance: individually evaluated for impairment, loans	1,042		290
Ending balance: collectively evaluated for impairment, loans	505,866		495,045
Ending balance: loans acquired with deteriorated credit quality	4,609		6,431
Total Loans	511,517		501,766
Real Estate Construction and Land Loans
Allowance for Loan Losses:
Individually evaluated for impairment
Collectively evaluated for impairment	1,131		1,030
Loans acquired with deteriorated credit quality
Total Allowance for Loan Losses	1,131	1,277	1,030	1,236	1,106	1,104
Loans:
Ending balance: individually evaluated for impairment, loans
Ending balance: collectively evaluated for impairment, loans	96,683		91,153
Ending balance: loans acquired with deteriorated credit quality
Total Loans	96,683		91,153
Installment/Consumer Loans
Allowance for Loan Losses:
Individually evaluated for impairment
Collectively evaluated for impairment	134		136
Loans acquired with deteriorated credit quality
Total Allowance for Loan Losses	134	$ 141	136	$ 139	$ 142	$ 135
Loans:
Ending balance: individually evaluated for impairment, loans
Ending balance: collectively evaluated for impairment, loans	17,235		17,596
Ending balance: loans acquired with deteriorated credit quality
Total Loans	$ 17,235		$ 17,596

ALLOWANCE FOR LOAN LOSSES (De60

ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Allowance for Loan Losses
Beginning balance	$ 21,799	$ 18,260	$ 20,744	$ 17,637
Charge-offs	(99)	(330)	(299)	(532)
Recoveries	108	188	113	213
Provision	900	700	2,150	1,500
Ending balance	22,708	18,818	22,708	18,818
Commercial Real Estate | Mortgage loans
Allowance for Loan Losses
Beginning balance	7,446	6,990	7,850	6,994
Charge-offs
Recoveries	100		100
Provision	86	176	(318)	172
Ending balance	7,632	7,166	7,632	7,166
Multi-Family | Mortgage loans
Allowance for Loan Losses
Beginning balance	4,669	2,980	4,208	2,670
Charge-offs
Recoveries
Provision	618	35	1,079	345
Ending balance	5,287	3,015	5,287	3,015
Residential Real Estate | Mortgage loans
Allowance for Loan Losses
Beginning balance	2,698	2,137	2,115	2,208
Charge-offs
Recoveries	2	77	2	78
Provision	53	(225)	636	(297)
Ending balance	2,753	1,989	2,753	1,989
Commercial, Industrial and Agricultural Loans
Allowance for Loan Losses
Beginning balance	5,568	4,905	5,405	4,526
Charge-offs	(97)	(330)	(297)	(530)
Recoveries	3	110	7	130
Provision	297	588	656	1,147
Ending balance	5,771	5,273	5,771	5,273
Real Estate Construction and Land Loans
Allowance for Loan Losses
Beginning balance	1,277	1,106	1,030	1,104
Charge-offs
Recoveries
Provision	(146)	130	101	132
Ending balance	1,131	1,236	1,131	1,236
Installment/Consumer Loans
Allowance for Loan Losses
Beginning balance	141	142	136	135
Charge-offs	(2)		(2)	(2)
Recoveries	3	1	4	5
Provision	(8)	(4)	(4)	1
Ending balance	$ 134	$ 139	$ 134	$ 139

EMPLOYEE BENEFITS (Details)

EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pension Benefits
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income
Service cost	$ 286	$ 283	$ 577	$ 562
Interest cost	201	176	397	351
Expected return on plan assets	(510)	(458)	(965)	(912)
Amortization of net loss	104	94	203	187
Amortization of unrecognized prior service cost	(19)	(19)	(38)	(38)
Amortization of unrecognized transition obligation
Net periodic benefit cost	62	76	174	150
SERP Benefits
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income
Service cost	44	42	88	83
Interest cost	26	23	52	45
Expected return on plan assets
Amortization of net loss	7	8	14	16
Amortization of unrecognized prior service cost
Amortization of unrecognized transition obligation	7	7	14	14
Net periodic benefit cost	$ 84	$ 80	$ 168	$ 158

EMPLOYEE BENEFITS (Detail Textu

EMPLOYEE BENEFITS (Detail Textuals)	6 Months Ended
	Jun. 30, 2016USD ($)
Defined Benefit Plan Disclosure [Line Items]
Employer contribution to the plan	$ 2,200,000
SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Distribution from the plan	$ 56,000

SECURITIES SOLD UNDER AGREEME63

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Detail Textuals) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Securities sold under agreements to repurchase	$ 50,895	$ 50,891
Carrying amount of U.S. GSE, mortgage-backed securities and collateralized mortgage obligations that serve as securities under repurchase agreements	55,600	$ 55,900
Third Quarter Of 2016
Debt Instrument [Line Items]
Securities sold under agreements to repurchase	900
Fourth quarter of 2016
Debt Instrument [Line Items]
Securities sold under agreements to repurchase	$ 50,000
U.S. GSE securities
Debt Instrument [Line Items]
Percentage of investment securities held as collateral	97.00%	96.00%
U.S. GSE residential collateralized mortgage obligations
Debt Instrument [Line Items]
Percentage of investment securities held as collateral	3.00%	4.00%

FEDERAL HOME LOAN BANK ADVANC64

FEDERAL HOME LOAN BANK ADVANCES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Contractual Maturity, Amount
Overnight	$ 40,000
2,016	111,545	249,599
2,017	19,131	19,149
2,018	25,606	25,781
2,019	2,560	2,978
Total FHLB advances except overnight advances	158,842	297,507
Total FHLB advances	$ 198,842	$ 297,507
Weighted Average Rate
Overnight (as a percent)	0.57%
2016 (as a percent)	0.68%	0.75%
2017 (as a percent)	0.74%	0.74%
2018 (as a percent)	1.05%	1.04%
2019 (as a percent)	1.06%	1.08%
Weighted Average Rate for total FHLB advances except overnight advances (as a percent)	0.75%	0.78%
Weighted Average Rate for total FHLB advances (as a percent)	0.72%	0.78%

FEDERAL HOME LOAN BANK ADVANC65

FEDERAL HOME LOAN BANK ADVANCES (Detail Textuals) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Advances collateralized amount	$ 840	$ 666.3
Maximum borrowing amount from FHLB term advances	$ 1,120

BORROWED FUNDS (Detail Textuals

BORROWED FUNDS (Detail Textuals) $ in Millions	1 Months Ended
	Sep. 30, 2015USD ($)
Debt Instrument [Line Items]
Fixed-to-floating rate subordinated debentures	$ 80
Subordinated Debentures | Callable after five years
Debt Instrument [Line Items]
Fixed-to-floating rate subordinated debentures	$ 40
Fixed annual interest rate	5.25%
Debt instrument variable rate description	three-month LIBOR
Basis points	3.60%
Subordinated Debentures | Callable after ten years
Debt Instrument [Line Items]
Fixed-to-floating rate subordinated debentures	$ 40
Fixed annual interest rate	5.75%
Debt instrument variable rate description	three-month LIBOR
Basis points	3.45%

BORROWED FUNDS (Detail Textua67

BORROWED FUNDS (Detail Textuals 1) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			6 Months Ended
	May 27, 2016	May 26, 2016	Dec. 31, 2009	Jun. 30, 2016	Dec. 31, 2015
Junior subordinated debentures
Junior subordinated debentures				$ 15,525	$ 15,878
Trust preferred securities (TPS)
Junior subordinated debentures
Number of shares to be issued upon conversion	34.4828	32.2581
Conversion price (in dollars per share)	$ 29	$ 31
Decrease in trust preferred securities after modification	$ 400
Junior Subordinated Debentures
Junior subordinated debentures
Aggregate liquidation amount of trust preferred securities issued				$ 16,000
Distribution rate of trust preferred securities (as a percent)				8.50%
Maximum period specified for interest deferrals				5 years
Bridge Statutory Capital Trust II | Trust preferred securities (TPS)
Junior subordinated debentures
Aggregate liquidation amount of trust preferred securities issued			$ 16,000
Distribution rate of trust preferred securities (as a percent)			8.50%
Liquidation amount per security (in dollars per share)			$ 1,000
Conversion price (in dollars per share)			$ 31

DERIVATIVES (Details)

DERIVATIVES (Details) - Interest rate swaps - Derivative designated as a cash flow hedge - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivatives
Notional amounts	$ 125,000	$ 125,000
Weighted average pay rates (as a percent)	1.58%	1.58%
Weighted average receive rates (as a percent)	0.63%	0.51%
Weighted average maturity	2 years 8 months 19 days	3 years 2 months 19 days

DERIVATIVES (Details 1)

DERIVATIVES (Details 1) - Derivative designated as a cash flow hedge - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income
Interest rate contracts, Amount of gain (loss) recognized in OCI (Effective Portion)	$ (661)	$ 117	$ (2,684)	$ (698)
Interest rate contracts, Amount of gain (loss) reclassified from OCI to interest income	(239)	(176)	(489)	(310)
Interest rate contracts, Amount of gain (loss) recognized in other Non-interest income (Ineffective Portion)

DERIVATIVES (Details 2)

DERIVATIVES (Details 2) - Derivative designated as a cash flow hedge - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	$ 100,000	$ 100,000
Fair value asset		14
Fair value liability	(2,328)	(713)
Forward starting interest rate swap related to FHLB advances
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	25,000	25,000
Fair value asset
Fair value liability	$ (1,161)	$ (595)

DERIVATIVES (Details 3)

DERIVATIVES (Details 3) - Interest rate swaps - Non-Designated Hedges - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivatives
Notional amounts	$ 55,702	$ 56,328
Weighted average pay rates (as a percent)	3.48%	3.39%
Weighted average receive rates (as a percent)	3.48%	3.39%
Weighted average maturity	15 years 26 days	15 years 7 months 2 days
Fair value of combined interest rate swaps

DERIVATIVES (Detail Textuals)

DERIVATIVES (Detail Textuals) - Interest rate swaps - Derivative designated as a cash flow hedge - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Derivative [Line Items]
Notional amounts	$ 125,000,000		$ 125,000,000		$ 125,000,000
Derivative liability position net	6,500,000		6,500,000
Derivative collateral	6,700,000		6,700,000
Federal Home Loan Bank
Derivative [Line Items]
Notional amounts	125,000,000		125,000,000		$ 125,000,000
Interest expense on derivative	$ 239,000	$ 176,000	489,000	$ 310,000
Reclassifications to interest expense			489,000
Reclassified estimated increase in interest expense			$ 1,200,000

OTHER COMPREHENSIVE INCOME (L73

OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gains (losses) on available for sale securities	$ 2,725	$ (3,653)	$ 12,465	$ 1,262
Reclassification adjustment for (gains) losses realized in income	(383)		(449)	10
Income tax effect	(950)	1,486	(4,867)	(471)
Net change in unrealized gains (losses) on available for sale securities	1,392	(2,167)	7,149	801
Reclassification adjustment for amortization realized in income	99	90	193	179
Income tax effect	(41)	18	(74)	(17)
Net change in post-retirement obligation	58	108	119	162
Change in fair value of derivatives used for cash flow hedges	(661)	117	(2,684)	(698)
Reclassification adjustment for losses realized in income	239	176	489	310
Income tax effect	171	(97)	891	164
Net change in unrealized (loss) gain on cash flow hedges	(251)	196	(1,304)	(224)
Total	$ 1,199	$ (1,863)	$ 5,964	$ 739

OTHER COMPREHENSIVE INCOME (L74

OTHER COMPREHENSIVE INCOME (LOSS) (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Unrealized (losses) gains on available for sale securities
Balance at the beginning of the period			$ (4,741)
Current Period Change	$ 1,392	$ (2,167)	7,149	$ 801
Balance at the end of the period	2,408		2,408
Unrealized (losses) gains on pension benefits
Balance at the beginning of the period			(4,111)
Current Period Change	58	108	119	162
Balance at the end of the period	(3,992)		(3,992)
Unrealized losses on cash flow hedges
Balance at the beginning of the period			(770)
Current Period Change	(251)	196	(1,304)	(224)
Balance at the end of the period	(2,074)		(2,074)
Total
Balance at the beginning of the period			(9,622)
Current Period Change	1,199	$ (1,863)	5,964	$ 739
Balance at the end of the period	$ (3,658)		$ (3,658)

OTHER COMPREHENSIVE INCOME (L75

OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Amounts Reclassified from AOCI
Realized gains (losses) on sale of available for sale securities	$ 383		$ 449	$ (10)
Income before income taxes	13,518	$ 220	26,788	7,609
Income tax (expense) benefit	(4,664)	243	(9,308)	(2,383)
Net income	8,854	463	17,480	5,226
Amount Reclassified from Accumulated Other Comprehensive Income
Amounts Reclassified from AOCI
Net income	27	(210)	(139)	(352)
Amount Reclassified from Accumulated Other Comprehensive Income | Net securities gains (losses)
Amounts Reclassified from AOCI
Realized gains (losses) on sale of available for sale securities	383		449	(10)
Income tax (expense) benefit	(155)		(182)	4
Net income	228		267	(6)
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit pension plan and the defined benefit plan component of the SERP
Amounts Reclassified from AOCI
Prior service cost	19	19	38	38
Transition obligation	(7)	(7)	(14)	(14)
Actuarial losses	(111)	(102)	(217)	(203)
Income before income taxes	(99)	(90)	(193)	(179)
Income tax (expense) benefit	40	(18)	78	17
Net income	(59)	(108)	(115)	(162)
Amount Reclassified from Accumulated Other Comprehensive Income | Realized losses on cash flow hedges
Amounts Reclassified from AOCI
Realized gains (losses) on sale of available for sale securities	(239)	(176)	(489)	(310)
Income tax (expense) benefit	97	74	198	126
Net income	$ (142)	$ (102)	$ (291)	$ (184)

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands	1 Months Ended
	Jun. 19, 2015	Jun. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill Recorded on Acquisition		$ 105,950	$ 98,445
CNB
Business Acquisition [Line Items]
Cash and due from banks	$ 24,628
Securities	90,109
Loans	729,413
Bank Owned Life Insurance	21,445
Premises and equipment	1,276
Other intangible assets	6,698
Other assets	21,729
Total Assets Acquired	895,298
Deposits	786,853
Federal Home Loan Bank term advances	35,581
Other liabilities and accrued expenses	11,861
Total Liabilities Assumed	834,295
Net Assets Acquired	61,003
Consideration Paid	157,503
Goodwill Recorded on Acquisition	96,500
CNB | As Initially Reported
Business Acquisition [Line Items]
Cash and due from banks	24,628
Securities	90,109
Loans	736,348
Bank Owned Life Insurance	21,445
Premises and equipment	6,398
Other intangible assets	6,698
Other assets	14,484
Total Assets Acquired	900,110
Deposits	786,853
Federal Home Loan Bank term advances	35,581
Other liabilities and accrued expenses	5,647
Total Liabilities Assumed	828,081
Net Assets Acquired	72,029
Consideration Paid	157,503
Goodwill Recorded on Acquisition	85,474
CNB | Measurement Period Adjustments
Business Acquisition [Line Items]
Cash and due from banks
Securities
Loans	(6,935)
Bank Owned Life Insurance
Premises and equipment	(5,122)
Other intangible assets
Other assets	7,245
Total Assets Acquired	(4,812)
Deposits
Federal Home Loan Bank term advances
Other liabilities and accrued expenses	6,214
Total Liabilities Assumed	6,214
Net Assets Acquired	(11,026)
Consideration Paid
Goodwill Recorded on Acquisition	$ 11,026

BUSINESS COMBINATIONS (Detail T

BUSINESS COMBINATIONS (Detail Textuals) - CNB shares in Thousands, $ in Thousands	1 Months Ended
	Jun. 19, 2015USD ($)Branchshares
Business Acquisition [Line Items]
Number of Branches acquired in CNB acquisition | Branch	40
Aggregate shares issued in exchange for issued and outstanding common stock | shares	5,647
Consideration Paid	$ 157,503
Intangible assets	96,500
Total Assets Acquired	895,298
Loans	729,413
Securities	90,109
Deposits	$ 786,853

RECENT ACCOUNTING PRONOUNCEME78

RECENT ACCOUNTING PRONOUNCEMENTS (Detail Textuals) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
RECENT ACCOUNTING PRONOUNCEMENTS
Fixed asset measurement period adjustment	$ 0.3