Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 17, 2014 | Jun. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'TF FINANCIAL CORP | ' | ' |
Entity Central Index Key | '0000921051 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $53.10 |
Entity Common Stock, Shares Outstanding | ' | 3,150,244 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $45,310 | $31,137 | ||
Investment securities | ' | ' | ||
Available for sale | 124,012 | 102,284 | ||
Held to maturity (fair value of $1,680 and $2,271 as of December 31, 2013 and 2012, respectively) | 1,490 | 1,965 | ||
Loans receivable, net | 614,168 | 526,720 | ||
Loans receivable, held for sale | 349 | 706 | ||
FHLB stock-at cost | 3,370 | 5,431 | ||
Accrued interest receivable | 2,520 | 2,460 | ||
Premises and equipment, net | 8,616 | 6,108 | ||
Goodwill | 4,324 | 4,324 | ||
Core deposit intangible | 503 | 0 | ||
Bank owned life insurance | 18,586 | 19,109 | ||
Other assets | 12,441 | 11,592 | ||
TOTAL ASSETS | 835,689 | 711,836 | ||
Liabilities | ' | ' | ||
Deposits | 683,902 | 560,315 | ||
Advances from the FHLB | 49,605 | 60,656 | ||
Advances from borrowers for taxes and insurance | 3,228 | 2,880 | ||
Accrued interest payable | 671 | 817 | ||
Other liabilities | 3,408 | 4,223 | ||
Total liabilities | 740,814 | 628,891 | ||
Stockholders' equity | ' | ' | ||
Preferred stock, no par value; 2,000,000 shares authorized at December 31, 2013 and 2012, none issued | 0 | 0 | ||
Common stock, $0.10 par value; 10,000,000 shares authorized, 5,290,000 shares issued, 3,149,239 and 2,838,493 shares outstanding at December 31, 2013 and 2012, respectively, net of shares in treasury: 2013-2,140,761; 2012-2,451,507. | 529 | 529 | ||
Additional paid-in capital | 56,197 | 54,328 | ||
Unearned ESOP shares | -846 | -970 | ||
Treasury stock-at cost | -44,502 | -50,896 | ||
Retained earnings | 84,675 | 78,984 | ||
Accumulated other comprehensive (loss) income | -1,178 | [1],[2] | 970 | [1],[2] |
Total stockholders' equity | 94,875 | 82,945 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $835,689 | $711,836 | ||
[1] | Amounts in parentheses indicate debits. | |||
[2] | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 34%. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Investment securities | ' | ' |
Mortgage-backed securities held to maturity, fair value | $1,680 | $2,271 |
Stockholders' equity | ' | ' |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 5,290,000 | 5,290,000 |
Common stock, outstanding (in shares) | 3,149,239 | 2,838,493 |
Common stock, in treasury (in shares) | 2,140,761 | 2,451,507 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income | ' | ' |
Loans, including fees | $25,858 | $25,205 |
Investment securities | ' | ' |
Fully taxable | 1,739 | 2,315 |
Exempt from federal taxes | 1,689 | 1,692 |
Interest-bearing deposits and other | 27 | 8 |
TOTAL INTEREST INCOME | 29,313 | 29,220 |
Interest expense | ' | ' |
Deposits | 3,025 | 3,532 |
Borrowings | 898 | 1,405 |
TOTAL INTEREST EXPENSE | 3,923 | 4,937 |
NET INTEREST INCOME | 25,390 | 24,283 |
Provision for loan losses | 839 | 2,400 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 24,551 | 21,883 |
Noninterest income | ' | ' |
Service fees, charges and other operating income | 2,348 | 1,771 |
Gain on sale of investment securities | 4 | 85 |
Earnings on bank owned life insurance | 551 | 603 |
Bank owned life insurance death benefit proceeds | 934 | 0 |
Gain on sale of loans | 705 | 1,350 |
Gain on disposition of premises and equipment | 420 | 277 |
Gain on acquisition | 1,120 | 0 |
TOTAL NONINTEREST INCOME | 6,082 | 4,086 |
Noninterest expense | ' | ' |
Compensation and benefits | 12,053 | 10,982 |
Occupancy and equipment | 3,106 | 2,795 |
Federal deposit insurance premiums | 521 | 596 |
Merger-related costs | 738 | 108 |
Professional fees | 903 | 1,176 |
Marketing and advertising | 356 | 346 |
Foreclosed real estate expense | 609 | 811 |
Core deposit intangible amortization | 50 | 0 |
Other operating | 3,765 | 2,047 |
TOTAL NONINTEREST EXPENSE | 22,101 | 18,861 |
INCOME BEFORE INCOME TAXES | 8,532 | 7,108 |
Income tax expense | 1,957 | 1,725 |
NET INCOME | $6,575 | $5,383 |
Earnings per share-basic (in dollars per share) | $2.27 | $1.97 |
Earnings per share-diluted (in dollars per share) | $2.27 | $1.97 |
Weighted average shares outstanding: | ' | ' |
Basic (in shares) | 2,899,025 | 2,726,133 |
Diluted (in shares) | 2,902,932 | 2,729,762 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | |
Net income | $6,575 | $5,383 | |
Investment securities available for sale: | ' | ' | |
Unrealized holding (losses) gains | -5,495 | 321 | |
Tax effect | 1,869 | -109 | |
Reclassification adjustment for gains realized in net income | -4 | -85 | |
Tax effect | 1 | 29 | |
Net of tax amount | -3,629 | 156 | |
Pension plan benefit adjustment: | ' | ' | |
Related to net actuarial gain and prior service cost | 2,246 | 103 | |
Tax effect | -765 | -35 | |
Net of tax amount | 1,481 | 68 | |
Total other comprehensive (loss) income | -2,148 | [1],[2] | 224 |
Comprehensive income | $4,427 | $5,607 | |
[1] | Amounts in parentheses indicate debits. | ||
[2] | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 34%. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Unearned ESOP shares [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
In Thousands, except Share data, unless otherwise specified | ||||||||
Balance at Dec. 31, 2011 | $529 | $54,118 | ($1,097) | ($51,032) | $74,144 | $746 | $77,408 | |
Balance (in shares) at Dec. 31, 2011 | 2,716,119 | ' | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Allocation of ESOP shares | 0 | 190 | 127 | 0 | 0 | 0 | 317 | |
Allocation of ESOP shares (in shares) | 13,104 | ' | ' | ' | ' | ' | ' | |
Cash dividends-common stock | 0 | 0 | 0 | 0 | -543 | 0 | -543 | |
Director compensation | 0 | 20 | 0 | 129 | 0 | 0 | 149 | |
Director compensation (in shares) | 6,304 | ' | ' | ' | ' | ' | ' | |
Exercise of options | 0 | 0 | 0 | 7 | 0 | 0 | 7 | |
Exercise of options (in shares) | 315 | ' | ' | ' | ' | ' | ' | |
Deferred tax adjustment arising from stock compensation | 0 | -27 | 0 | 0 | 0 | 0 | -27 | |
Stock option expense | 0 | 27 | 0 | 0 | 0 | 0 | 27 | |
Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 224 | 224 | |
Net income | 0 | 0 | 0 | 0 | 5,383 | 0 | 5,383 | |
Balance at Dec. 31, 2012 | 529 | 54,328 | -970 | -50,896 | 78,984 | 970 | 82,945 | |
Balance (in shares) at Dec. 31, 2012 | 2,735,842 | ' | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Allocation of ESOP shares | 0 | 216 | 124 | 0 | 0 | 0 | 340 | |
Allocation of ESOP shares (in shares) | 13,092 | ' | ' | ' | ' | ' | ' | |
Purchase of treasury stock | 0 | 0 | 0 | -274 | 0 | 0 | -274 | |
Purchase of treasury stock (in shares) | -10,412 | ' | ' | ' | ' | ' | ' | |
Cash dividends-common stock | 0 | 0 | 0 | 0 | -884 | 0 | -884 | |
Director compensation | 0 | 26 | 0 | 119 | 0 | 0 | 145 | |
Director compensation (in shares) | 5,738 | ' | ' | ' | ' | ' | ' | |
Exercise of options | 0 | 38 | 0 | 178 | 0 | 0 | 216 | |
Exercise of options (in shares) | 8,547 | ' | ' | ' | ' | ' | ' | |
Deferred tax adjustment arising from stock compensation | 0 | -24 | 0 | 0 | 0 | 0 | -24 | |
Stock option expense | 0 | 312 | 0 | 0 | 0 | 0 | 312 | |
Acquisition of Roebling, net of fractional shares | 0 | 1,301 | 0 | 6,371 | 0 | 0 | 7,672 | |
Acquisition of Roebling, net of fractional shares (in shares) | 306,873 | ' | ' | ' | ' | ' | ' | |
Other comprehensive income | 0 | 0 | 0 | 0 | 0 | -2,148 | -2,148 | [1],[2] |
Net income | 0 | 0 | 0 | 0 | 6,575 | 0 | 6,575 | |
Balance at Dec. 31, 2013 | $529 | $56,197 | ($846) | ($44,502) | $84,675 | ($1,178) | $94,875 | |
Balance (in shares) at Dec. 31, 2013 | 3,059,680 | ' | ' | ' | ' | ' | ' | |
[1] | Amounts in parentheses indicate debits. | |||||||
[2] | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 34%. |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | ' | ' |
Cash dividends for common stock (in dollars per share) | $0.30 | $0.20 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | ' | ' |
Net income | $6,575 | $5,383 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Amortization and impairment adjustment of mortgage loan servicing rights, net | -13 | 358 |
Premiums and discounts on investment securities, net | 276 | 245 |
Premiums and discounts on mortgage-backed securities, net | 443 | 320 |
Amortization of premiums on deposit | -178 | 0 |
Deferred loan origination costs, net | 178 | 150 |
Deferred income taxes | -75 | 1,194 |
Provision for loan losses | 839 | 2,400 |
Amortization of core deposit intangible | 50 | 0 |
Depreciation of premises and equipment | 672 | 781 |
Increase in value of bank owned life insurance | -551 | -603 |
Income from life insurance death benefit | -934 | 0 |
Stock-based compensation | 797 | 493 |
Proceeds from sale of loans originated for sale | 32,555 | 53,521 |
Origination of loans held for sale | -31,840 | -52,940 |
Gain on acquisition | -1,120 | 0 |
Loss on foreclosed real estate | 446 | 471 |
Gain on: | ' | ' |
Sale of investment securities | -4 | -85 |
Sale of loans | -705 | -1,350 |
Disposition of premises and equipment | -420 | -277 |
Decrease (increase) in: | ' | ' |
Accrued interest receivable | 316 | 150 |
Other assets | 232 | -248 |
(Decrease) increase in: | ' | ' |
Accrued interest payable | -152 | -558 |
Other liabilities | 584 | 307 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 7,971 | 9,712 |
INVESTING ACTIVITIES | ' | ' |
Loan originations | -97,640 | -132,292 |
Loan principal payments | 110,256 | 93,622 |
Proceeds from sale of foreclosed real estate | 2,008 | 7,626 |
Proceeds from disposition of premises and equipment | 443 | 356 |
Proceeds from maturities of investment securities available for sale | 8,115 | 5,765 |
Proceeds from bank-owned life insurance | 2,183 | 0 |
Principal repayments on mortgage-backed securities held to maturity | 552 | 622 |
Principal repayments on mortgage-backed securities available for sale | 17,691 | 26,195 |
Proceeds from sale of mortgage-backed securities available for sale | 0 | 3,822 |
Proceeds from sale of investment securities available for sale | 4,039 | 0 |
Purchase of investment securities available for sale | -17,331 | -6,982 |
Purchase of mortgage-backed securities available for sale | -3,194 | -16,824 |
Purchase of premises and equipment | -1,062 | -409 |
Redemption of Federal Home Loan Bank stock | 2,450 | 2,226 |
Acquisition, net of cash acquired | -3,173 | 0 |
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | 25,337 | -16,273 |
FINANCING ACTIVITIES | ' | ' |
Net (decrease) increase in customer deposits | -3,986 | 9,027 |
Proceeds of long-term FHLB borrowings | 0 | 39,197 |
Repayment of long-term FHLB borrowings | -14,102 | -25,449 |
Net (decrease) increase in advances from borrowers for taxes and insurance | -81 | 558 |
Purchase of treasury stock | -274 | 0 |
Exercise of stock options | 216 | 7 |
Deferred tax adjustment arising from stock compensation | -24 | -27 |
Common stock dividends paid | -884 | -543 |
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES | -19,135 | 22,770 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 14,173 | 16,209 |
Cash and cash equivalents at beginning of period | 31,137 | 14,928 |
Cash and cash equivalents at end of period | 45,310 | 31,137 |
Cash paid for: | ' | ' |
Interest on deposits and borrowings | 4,247 | 5,495 |
Income taxes | 900 | 475 |
Noncash transactions: | ' | ' |
Capitalization of mortgage servicing rights | 347 | 551 |
Transfers from loans to foreclosed real estate | 737 | 3,525 |
Acquisition of Roebling Financial Corp, Inc. Noncash assets acquired: Investment securities [Abstract] | ' | ' |
Available for sale | 37,260 | ' |
Held to maturity | 79 | ' |
Loans | 102,026 | ' |
FHLB stock | 389 | ' |
Accrued interest receivable | 376 | ' |
Premises and equipment, net | 2,154 | ' |
Core deposit intangible | 553 | ' |
Bank owned life insurance | 175 | ' |
Other assets | 1,591 | ' |
Total noncash assets acquired | 144,603 | ' |
Liabilities assumed: | ' | ' |
Deposits | 127,750 | ' |
Advances from the FHLB | 3,051 | ' |
Advances from borrowers for taxes and insurance | 429 | ' |
Other liabilities | 1,408 | ' |
Total Liabilities assumed | 132,638 | ' |
Net noncash assets acquired | 11,965 | ' |
Cash acquired | $4,081 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
TF Financial Corporation (the “Company”) is a unitary savings and loan holding company, organized under the laws of the Commonwealth of Pennsylvania, which conducts its consumer banking operations primarily through its wholly owned subsidiary, 3rd Fed Bank (“3rd Fed” or the “Bank”). 3rd Fed is a Pennsylvania-chartered stock savings bank insured by the FDIC. 3rd Fed is a community-oriented savings institution and conducts operations from its main office in Newtown, Pennsylvania, eleven full-service branch offices located in Philadelphia and Bucks counties, Pennsylvania, and seven full-service branch offices located in Burlington, Mercer and Ocean counties, New Jersey. The Bank competes with other banking and financial institutions in its primary market communities, including financial institutions with resources substantially greater than its own. Commercial banks, savings banks, savings and loan associations, credit unions and money market funds actively compete for savings and time deposits and loans. Such institutions, as well as consumer finance and insurance companies, may be considered competitors of the Bank with respect to one or more of the services it renders. | |||||
The Bank is subject to regulations of certain state and federal agencies and, accordingly, those regulatory authorities conduct periodic examinations. As a consequence of the extensive regulation of commercial banking activities, the Bank’s business is particularly susceptible to being affected by state and federal legislation and regulations. | |||||
a. Principles of Consolidation and Basis of Presentation | |||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries: Penns Trail Development Corporation and 3rd Fed, including 3rd Fed’s wholly owned subsidiaries, Third Delaware Corporation and Teragon Financial Corporation (collectively, the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. | |||||
The accounting policies of the Company conform to accounting principles generally accepted in the United States of America (“US GAAP”) and predominant practices within the banking industry. The preparation of financial statements in conformity with US GAAP requires management to make 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. The more significant accounting policies are summarized below. | |||||
b. Business Combinations | |||||
At the date of acquisition the Company records the net assets of acquired companies on the Consolidated Balance Sheet at their estimated fair value, and a gain is recognized for the excess of the estimated fair value over the purchase price of acquired net assets. The results of operations for acquired companies are included in the Company’s Consolidated Statements of Income beginning at the acquisition date. Expenses arising from acquisition activities are recorded in the Consolidated Statements of Income during the period incurred. | |||||
c. Cash and Cash Equivalents | |||||
The Company considers cash, due from banks, and interest-bearing deposits in other financial institutions, with original terms to maturity of less than three months, as cash equivalents for presentation purposes in the Consolidated Balance Sheets and Cash Flows. The Company is required to maintain certain cash reserves relating to deposit liabilities. This requirement is ordinarily satisfied by cash on hand. | |||||
d. Investment and Mortgage-Backed Securities | |||||
The Company classifies its investment and mortgage-backed securities in one of three categories: held to maturity, trading, or available for sale. The Company does not presently engage in security trading activities. | |||||
Investment and mortgage-backed securities available for sale are stated at fair value, with net unrealized gains and losses excluded from income and reported in other comprehensive income (loss). See Note 18 - Fair Value Measurements and Fair Value of Financial Instruments which defines the basis for determining fair value. Realized gains and losses on the sale of securities are recognized using the specific identification method. | |||||
Mortgage-backed securities held to maturity are carried at cost, net of unamortized premiums and discounts, which are recognized in interest income using the interest method. | |||||
On a quarterly basis, temporarily impaired securities are evaluated to determine whether such impairment is other-than-temporary impairment (“OTTI”). This evaluation involves consideration of the length of time and the amount by which the fair value has been lower than amortized cost, the financial condition and credit rating of the issuer, the changes in fair value in relation to the change in market interest rates and other relevant information. In addition, with respect to mortgage-backed securities issued by government and quasi-governmental agencies (i.e. Government National Mortgage Association (“GNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”)), the Company considers the ultimate payment of principal and interest as an obligation of the United States Government and thus assured. The Company also evaluates its intent to hold, intent to sell or need to sell the securities in light of its investment strategy, cash flow needs, interest rate risk position, prospects for the issuer and all other relevant factors. | |||||
e. Loans Receivable, net | |||||
Loans receivable that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are stated at unpaid principal balances less the allowance for loan losses, and net of deferred loan origination fees and direct origination costs as well as unamortized fair value adjustments on acquired loans. Loan origination fees, costs and adjustments on loans are amortized to income using the interest method over the remaining period to contractual maturity, adjusted for actual prepayments. | |||||
The Bank provides valuation allowances for estimated losses from uncollectible loans. The allowance is increased by provisions charged to expense and reduced by net charge-offs. On a quarterly basis, the Bank prepares an allowance for loan losses (“ALLL”) analysis. In the analysis, the loan portfolio is segmented into groups of homogeneous loans that share similar risk characteristics: owner and non-owner occupied commercial, multi-family real estate, construction, commercial and industrial, one-to four-family residential, and consumer which is predominately real estate secured junior liens and home equity lines of credit as well as other consumer loans. Each segment is assigned reserve factors based on quantitative and qualitative measurements. In addition, the Bank reviews its internally classified loans, its loans classified for regulatory purposes, delinquent loans, and other relevant information in order to isolate loans for further scrutiny as potentially impaired loans. | |||||
Quantitative factors include an actual expected loss factor based on historical loss experience over a relevant look-back period. Quantitative factors also include the Bank’s actual risk ratings for the commercial loan segments as determined in accordance with loan review and loan grading policies and procedures, and additional factors as determined by management to be representative of additional risk due to the loan’s geographic location, type, and other attributes. These quantitative factors are adjusted if necessary, up or down, based on actual experience and an evaluation of qualitative factors. | |||||
Qualitative factors are based upon: (1) changes in lending policies and procedures, including but not limited to changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; (2) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; (3) changes in the nature and volume of the portfolio and in the terms of loans; (4) changes in the experience, ability, and depth of lending management and other relevant staff; (5) changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans; (6) changes in the quality of the loan review system; (7) changes in the value of underlying collateral for collateral dependent loans; (8) the existence and effect of any concentration of credit, and changes in the level of such concentrations; and (9) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio. | |||||
Potentially impaired loans selected for individual evaluation are reviewed in accordance with US GAAP ASC 310-10, Accounting by Creditors for Impairment of a Loan, which governs the accounting for impaired assets and consideration of regulatory guidance regarding treatment of troubled, collateral dependent loans. Each potentially impaired loan is evaluated using all available information such as recent appraisals, whether the loan is currently on accrual or nonaccrual status, discounted cash flow analyses, guarantor financial strength, the value of additional collateral, and the loan’s and borrower’s past performance to determine whether in management’s best judgment it is probable that the Bank will be unable to collect all contractual interest and principal in accordance with the loan’s terms. Loans deemed impaired are generally assigned a reserve derived from the value of the underlying collateral. Loans deemed not to be impaired are assigned a reserve factor based upon the class from which they were selected. | |||||
The ALLL needed as a result of the foregoing evaluations is compared with the unadjusted amount, and an adjustment is made by means of a provision charged to expense for loan losses. Recognizing the inherently imprecise nature of the loss estimates and the large number of assumptions needed in order to perform the analysis, there may be an unallocated portion of the ALLL. Management adjusts the unallocated portion to an amount which management considers reasonable under the circumstances. | |||||
The Bank provides an allowance for accrued but uncollected interest when a loan becomes more than ninety days past due or is identified as impaired. The allowance is established by a charge to interest income equal to all interest previously accrued, and income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is no longer impaired, in which case the loan is returned to accrual status. | |||||
f. Loans Receivable, Held for Sale | |||||
Mortgage loans originated and intended for sale in the secondary market are carried at fair value on an individual basis. Any resulting gain or loss is included in other operating income. | |||||
g. Troubled Debt Restructurings | |||||
Loans whose terms are modified are classified as troubled debt restructurings (“TDRs”) if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR may include extending the maturity date of the loan, reducing the interest rate on the loan to a rate which is below market, a combination of rate adjustments and maturity extensions, or by other means including covenant modifications, forbearances or other concessions. Interest income is not accrued on loans that had been placed on nonaccrual prior to the restructuring until they have performed in accordance with their restructured terms for a period of at least six months. The Company evaluates the ALLL needed with respect to TDRs under the same policy and guidelines as all other loans, and TDRs are evaluated individually for impairment. | |||||
h. Transfers of Financial Assets | |||||
The Company accounts for the transfers of financial assets using the financial–components approach. This approach recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered and derecognizes liabilities when extinguished. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||
Mortgage servicing rights (“MSRs”) are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. Under the applicable accounting guidance regarding servicing assets and liabilities, servicing rights resulting from the sale of loans originated by the Company are initially measured at fair value at the date of transfer. Fair value is based on market prices for comparable mortgage servicing rights, when available, or alternatively is based on a valuation model that calculates the present value of estimated future net servicing income. The Company subsequently recognizes mortgage servicing expense for each class of servicing assets using the amortization method. MSRs are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance charged to servicing fee income for an individual tranche, to the extent that fair value is less than the amortized cost for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to other operating income. These servicing rights are included in other assets in the Consolidated Balance Sheets and are discussed in Note 18 - Fair Value Measurements and Fair Value of Financial Instruments. | |||||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan, and are recorded as income when earned. The amortization of loan servicing rights is recorded as a reduction of service fee income. | |||||
i. Premises and Equipment | |||||
Land is carried at cost. Buildings and furniture, fixtures and equipment are carried at cost less accumulated depreciation. Depreciation is provided by the straight-line method over the estimated useful lives of the assets. The Company records any impairment of long-lived assets to be held and used or to be disposed of by sale. The Company had no impaired long-lived assets at December 31, 2013 and 2012. | |||||
j. Foreclosed Real Estate | |||||
Real estate acquired through, or in lieu of, loan foreclosure is carried at the fair value of the property, based on an appraisal less estimated cost to sell. Revenue and expenses from operations and changes in the fair value are included in foreclosed real estate expense. Included in other assets is foreclosed real estate of $5.6 million and $7.3 million at December 31, 2013 and 2012, respectively. | |||||
k. Goodwill | |||||
Goodwill does not require amortization but is subject to impairment testing. Goodwill impairment testing allows entities to first assess qualitative factors and circumstance to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. At December 31, 2013, the Company performed an assessment of key factors and determined that impairment of goodwill was not likely. | |||||
l. Core Deposit Intangible | |||||
The Company recorded a core deposit intangible of $553,000 in conjunction with the acquisition of Roebling discussed in Note 3 – Acquisition of Roebling Financial Corp, Inc. | |||||
m. Bank Owned Life Insurance | |||||
The Company maintains life insurance policies on the lives of current and former executives and officers. The Company is the owner and beneficiary of the policies. The cash surrender values of the policies were approximately $18.6 million and $19.1 million at December 31, 2013 and 2012, respectively. | |||||
n. Benefit Plans | |||||
The Company has established an ESOP covering eligible employees with six months of service, as defined by the ESOP. The Company records compensation expense in the amount equal to the fair value of shares committed to be released from the ESOP to employees less dividends received on the allocated shares applied to the required debt service of the plan. | |||||
The Company has a defined benefit pension plan covering substantially all full-time employees meeting certain requirements. The Company recognizes the overfunded or underfunded status of the defined benefit postretirement plan as an asset or liability in its Consolidated Balance Sheets and recognizes changes in that funded status, including the gains and or losses and prior service costs or credits that were not recognized as components of net periodic benefit cost, in the year in which the changes occur through accumulated other comprehensive income. The Company measures the funded status of the plan as of the date of its year-end Consolidated Balance Sheet. | |||||
o. Stock-Based Compensation | |||||
The Company has stock benefit plans that allow the Company to grant options and stock to employees and directors and which are more fully discussed in Note 12 - Benefit Plans. The options, may have terms of up to 7 years when issued, vest over a two to five year period. The exercise price of each option equals the market price of the Company’s stock on the date of the grant. The Company measures compensation cost at the grant date based on the fair value of the award. Compensation is then recognized over the service period which is usually the vesting period. The fair value of each option grant during 2013 was estimated on the date of grant using the Black‑Scholes option‑pricing model with the following weighted average assumptions: | |||||
Weighted average assumptions | |||||
Dividend yield | 0.81 | % | |||
Expected volatility | 16.82 | % | |||
Risk-free interest rate | 0.65 | % | |||
Fair value of options granted during the period | $ | 3.12 | |||
Expected lives in years | 5 | ||||
There were no options granted in 2012. | |||||
p. Income Taxes | |||||
The Company accounts for income taxes under the liability method whereby deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes due to change in tax rates is recognized in income in the period that includes the enactment date. | |||||
q. Advertising Costs | |||||
The Company expenses marketing and advertising costs as incurred. | |||||
r. Earnings Per Share | |||||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. | |||||
s. Segment Reporting | |||||
The Company has one reportable segment, “Community Banking.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, commercial lending is dependent upon the ability of the Bank to fund itself with retail deposits and other borrowings and to manage interest rate and credit risk. This situation is also similar for consumer and residential mortgage lending. Accordingly, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. | |||||
t. Fair Value of Financial Instruments | |||||
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 18 - Fair Value Measurements and Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2013 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
NOTE 2 — RECENT ACCOUNTING PRONOUNCEMENTS | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this update require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under US GAAP to be reclassified in its entirety to net income. For other amounts that are not required under US GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under US GAAP that provide additional detail about those amounts. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. The Company has provided the necessary disclosures in Note 4 – Accumulated Other Comprehensive (Loss) Income. | |
In February 2013, FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in US GAAP. Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. US GAAP does not include specific guidance on accounting for such obligations with joint and several liability, which has resulted in diversity in practice. Some entities record the entire amount under the joint and several liability arrangement on the basis of the concept of a liability and the guidance that must be met to extinguish a liability. Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. However, the Company has no unrecognized deferred tax benefits at December 31, 2013. | |
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
ACQUISITION_OF_ROEBLING_FINANC
ACQUISITION OF ROEBLING FINANCIAL CORP, INC. | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
ACQUISITION OF ROEBLING FINANCIAL CORP, INC. [Abstract] | ' | ||||||||||||
ACQUISITION OF ROEBLING FINANCIAL CORP, INC. | ' | ||||||||||||
NOTE 3 — ACQUISITION OF ROEBLING FINANCIAL CORP, INC. | |||||||||||||
On July 2, 2013, the Company closed on a merger transaction pursuant to which the Company acquired Roebling Financial Corp, Inc. (“Roebling”), the parent company of Roebling Bank, in a stock and cash transaction. | |||||||||||||
Under the terms of the merger agreement, the Company acquired all of the outstanding shares of Roebling for a total purchase price of approximately $14.9 million. As a result of the acquisition, the Company issued 306,873 common shares to former shareholders of Roebling. As a result of the merger, Roebling was merged with and into the Company, and Roebling Bank was merged with and into 3rd Fed. | |||||||||||||
The following table summarizes the purchase of Roebling as of July 2, 2013: | |||||||||||||
At July 2, 2013 | |||||||||||||
(in thousands, except shares and per share data) | |||||||||||||
Purchase Price Consideration in Common Stock | |||||||||||||
Roebling common shares settled for stock | 843,058 | ||||||||||||
Exchange Ratio | 0.364 | ||||||||||||
TF Financial Corporation shares issued | 306,873 | ||||||||||||
Value assigned to TF Financial Corporation common share | $ | 25 | |||||||||||
Purchase price assigned to Roebling common shares exchanged for TF Financial common shares | $ | 7,672 | |||||||||||
Purchase Price Consideration - Cash for Common Stock | |||||||||||||
Roebling shares exchanged for cash | 843,478 | ||||||||||||
Purchase price paid to each Roebling common share exchanged for cash | $ | 8.6 | |||||||||||
Purchase price assigned to Roebling common shares exchanged for cash | 7,254 | ||||||||||||
Total Purchase Price | 14,926 | ||||||||||||
Net Assets Acquired: | |||||||||||||
Roebling shareholders’ equity | $ | 16,461 | |||||||||||
Adjustments to reflect assets acquired at fair value: | |||||||||||||
Investments | 2 | ||||||||||||
Loans | |||||||||||||
Interest rate | 932 | ||||||||||||
General credit | (1,069 | ) | |||||||||||
Specific credit - non-amortizing | (325 | ) | |||||||||||
Specific credit - amortizing | (198 | ) | |||||||||||
Eliminate allowance for loan losses | 1,214 | ||||||||||||
Core deposit intangible | 553 | ||||||||||||
Owned premises | (976 | ) | |||||||||||
Leased premises contracts | 33 | ||||||||||||
Deferred tax assets | (276 | ) | |||||||||||
Other assets | 186 | ||||||||||||
Adjustments to reflect liabilities acquired at fair value: | |||||||||||||
Time deposits | (440 | ) | |||||||||||
FHLB advances | (51 | ) | |||||||||||
16,046 | |||||||||||||
Purchase gain resulting from acquisition | $ | 1,120 | |||||||||||
The following condensed statement reflects the values assigned to Roebling’s net assets as of the acquisition date: | |||||||||||||
At July 2, 2013 | |||||||||||||
(in thousands) | |||||||||||||
Total purchase price | $ | 14,926 | |||||||||||
Net assets acquired: | |||||||||||||
Cash | $ | 4,081 | |||||||||||
Investment securities | 37,339 | ||||||||||||
Loans receivable | 102,026 | ||||||||||||
Premises and equipment | 2,154 | ||||||||||||
Core deposit intangible | 553 | ||||||||||||
Other assets | 2,531 | ||||||||||||
Time deposits | (49,061 | ) | |||||||||||
Deposits other than time deposits | (78,689 | ) | |||||||||||
Other liabilities | (4,888 | ) | |||||||||||
16,046 | |||||||||||||
Purchase gain on acquisition | $ | 1,120 | |||||||||||
The acquired assets and assumed liabilities were measured at estimated fair values. Management made certain estimates and exercised judgment in accounting for the acquisition. The following is a description of the methods used to determine fair value of significant assets and liabilities at the acquisition date: | |||||||||||||
Cash and cash equivalents — The Company acquired $4.1 million in cash and cash equivalents, which management deemed to reflect fair value based on the short term nature of the asset. | |||||||||||||
Investment Securities — The Company acquired $37.3 million in U.S. Government and federal agency and mortgage-backed securities that were recorded at fair value. Please refer to Note 18 - Fair Value Measurements and Fair Value of Financial Instruments for a discussion of methodologies used to determine fair value. | |||||||||||||
Loans — The Company acquired $102.0 million in loans receivable with and without evidence of credit quality deterioration. The loans consisted of residential mortgage loans, consumer loans which include second mortgage loans and home equity secured lines of credit, commercial real estate loans, and other consumer loans. | |||||||||||||
At the acquisition date, the Company recorded $101.2 million of loans receivable without evidence of credit quality deterioration and $797,000 of loans acquired with evidence of credit quality deterioration. The following table reflects the composition of the loans receivable acquired: | |||||||||||||
At July 2, 2013 | |||||||||||||
Loans acquired | Loans acquired | Total | |||||||||||
with no credit | loans with credit | ||||||||||||
quality | quality | ||||||||||||
deterioration | deterioration | ||||||||||||
(in thousands) | |||||||||||||
Residential | |||||||||||||
Residential mortgages | $ | 54,965 | $ | 21 | $ | 54,986 | |||||||
Commercial | |||||||||||||
Real estate-commercial | 13,262 | — | 13,262 | ||||||||||
Real estate-residential | 5,143 | 356 | 5,499 | ||||||||||
Real estate-multi-family | 1,595 | 331 | 1,926 | ||||||||||
Commercial and industrial loans | 308 | — | 308 | ||||||||||
Consumer | |||||||||||||
Home equity and second mortgage | 25,847 | 89 | 25,936 | ||||||||||
Other consumer | 109 | — | 109 | ||||||||||
Total | $ | 101,229 | $ | 797 | $ | 102,026 | |||||||
The Company estimated the general credit risk fair value adjustment based on guidance from ASC 820-10, Fair Value Measurements which defines fair value as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is no active observable market for sale information on community bank loans and thus Level 3 fair value procedures were utilized, primarily the use of present value techniques incorporating assumptions which market participants would use in estimating fair values. In the absence of reliable market information, the Company used its own assumptions in an effort to determine a reasonable estimate of fair value. Loans acquired without credit quality deterioration were evaluated using a two-part general credit fair value analysis for all loan groups: 1) expected lifetime credit migration losses and 2) estimated fair value adjustment for qualitative factors. A decrease of $1.1 million was made to reflect a general credit risk fair value. Additionally, the Company recorded an increase of $932,000 to reflect the fair value of loans based on current interest rates on loans similar to those acquired. | |||||||||||||
A specific credit fair value adjustment was made as prescribed by ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Accordingly, the Company reviewed the Roebling loan portfolio on a loan by loan basis to determine whether loans met the definition of credit impaired as set forth in ASC 310-30. Specifically: 1) Had there been credit deterioration from the loan's inception until the acquisition date and 2) Is it probable that not all of the contractual cash flows will be collected on the loan. Based on this analysis, loans with a principal balance of $1.3 million were identified as being within the scope of ASC 310-30. The Company estimated the cash flows on each loan whether from expected monthly payments or from the liquidation of the underlying collateral on collateral dependent loans. As a result, an adjustment of $325,000 was recorded to reflect the fair value of the loans. Additionally, the aggregate expected cash flows less the acquisition date fair value resulted in an accretable yield amount of $198,000. | |||||||||||||
Premises and equipment, net — The fair value of land and buildings acquired in the Roebling merger totaled $2.2 million. The fair value as of the acquisition date was determined by an independent qualified appraiser. | |||||||||||||
Core deposit intangible — The Company recorded a core deposit intangible of $553,000. A core deposit intangible arises from a financial institution having a deposit base comprised of stable customer relationships. These deposits are generally at interest rates or on terms that are favorable to the financial institution. Fair value of the core deposit intangible was estimated based on guidance from ASC 820-10. There is no active observable market or sales information on community bank core deposits and thus Level 3 fair value procedures were utilized, primarily the use of the income approach which is based on an analysis of the expected after tax cash flow benefits of the acquired core deposits versus the cost of utilizing an alternative source (brokered deposits) for funding. Core deposits exclude certificates of deposit, which the Company judged to be non-core deposits. The cost of core deposits incorporated estimates of the costs of maintaining and supporting the deposits such as interest, branch expenses, personnel, and data processing. This cost was compared to the alternative funding source and the resulting economic benefit was discounted over the expected life of the acquired core deposits using a long-term market-based after tax rate of return. | |||||||||||||
Core deposit intangibles are amortized over the expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. During the year ended December 31, 2013, no such adjustments were recorded. The gross carrying amount of the core deposit intangible at December 31, 2013 was $503,000 with $50,000 accumulated amortization as of that date. | |||||||||||||
As of December 31, 2013, the remaining estimated future amortization expense for the core deposit was as follows: | |||||||||||||
At December 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||
2014 | $ | 96 | |||||||||||
2015 | 86 | ||||||||||||
2016 | 75 | ||||||||||||
2017 | 65 | ||||||||||||
2018 | 55 | ||||||||||||
2019 | 45 | ||||||||||||
2020 | 35 | ||||||||||||
2021 | 25 | ||||||||||||
2022 | 15 | ||||||||||||
2023 | 6 | ||||||||||||
$ | 503 | ||||||||||||
Deposits — The Company assumed $127.8 million in deposits which included $49.1 million of interest-bearing time deposits ("CDs"). An increase of $440,000 was made to reflect the fair value of the CDs. This fair value adjustment is based on guidance derived from ASC 820-10 and is based on current market interest rates on CDs of the same remaining maturity as Roebling's CDs. Market rates were obtained from independent third party sources for CDs offered in New Jersey on or about the acquisition date. | |||||||||||||
Results of operations for Roebling prior to the acquisition date are not included in the Consolidated Statements of Income for the year ended December 31, 2013. The following table presents financial information regarding the former Roebling operations included in the Consolidated Statements of Income from the date of acquisition through December 31, 2013 under the column “Actual from acquisition date through December 31, 2013”. | |||||||||||||
Actual from acquisition date | |||||||||||||
through December 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||
Net interest income | $ | 2,192 | |||||||||||
Noninterest income | 210 | ||||||||||||
Net income | 291 | ||||||||||||
In addition, the following table presents unaudited pro forma information as if the acquisition of Roebling had occurred on January 1, 2012 under the “Pro Forma” columns. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings as a result of the integration and consolidation of the acquisition. Merger and acquisition integration costs and amortization of fair value adjustments net of the related income tax effects are included in the amounts below, but any purchase gain has been excluded. | |||||||||||||
Proformas (Unaudited) | |||||||||||||
For the years ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands, | |||||||||||||
except per share data) | |||||||||||||
Net interest income | $ | 28,855 | $ | 29,589 | |||||||||
Noninterest income | 5,365 | 4,621 | |||||||||||
Net income | 5,463 | 5,616 | |||||||||||
Pro forma earnings per share: | |||||||||||||
Basic | $ | 1.7 | $ | 1.85 | |||||||||
Diluted | $ | 1.7 | $ | 1.85 |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||
NOTE 4 — ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||
The activity in accumulated other comprehensive (loss) income for the year ended December 31, 2013 is as follows: | |||||||||||||
Accumulated Other Comprehensive (Loss) Income (1), (2) | |||||||||||||
Unrealized gains | Defined | Total | |||||||||||
(losses) on securities | benefit | ||||||||||||
available for sale | pension plan | ||||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2012 | $ | 3,805 | $ | (2,835 | ) | $ | 970 | ||||||
Other comprehensive (loss) income before reclassifications | (3,626 | ) | 1,307 | (2,319 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (3 | ) | 174 | 171 | |||||||||
Period change | (3,629 | ) | 1,481 | (2,148 | ) | ||||||||
Balance at December 31, 2013 | $ | 176 | $ | (1,354 | ) | $ | (1,178 | ) | |||||
-1 | Amounts in parentheses indicate debits. | ||||||||||||
-2 | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 34%. | ||||||||||||
Amount reclassified | (1) | Affected line item in the consolidated statements of income | |||||||||||
from accumulated | |||||||||||||
other comprehensive | |||||||||||||
income (loss) | |||||||||||||
For the year ended | |||||||||||||
December 31, | |||||||||||||
2013 | |||||||||||||
(in thousands) | |||||||||||||
Investment securities available for sale (1) | |||||||||||||
Net securities gains reclassified into earnings | $ | 4 | Gain on sale of investment securities | ||||||||||
Related income tax expense | (1 | ) | Income tax expense | ||||||||||
Net effect on accumulated other income (loss) for the period | 3 | Net of tax | |||||||||||
Defined benefit pension plan (2) | |||||||||||||
Amortization of net actuarial loss and prior service cost | (264 | ) | Compensation and benefits | ||||||||||
Related income tax expense | 90 | Income tax expense | |||||||||||
Net effect on accumulated other comprehensive income for the period | (174 | ) | Net of tax | ||||||||||
Total reclassification for the period | $ | (171 | ) | Net income | |||||||||
-1 | Amounts in parentheses indicate debits. | ||||||||||||
-2 | Included in the computation of net periodic pension cost. See Note 12 – Benefit Plans for additional detail. |
CASH_AND_CASH_EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
CASH AND CASH EQUIVALENTS [Abstract] | ' | ||||||||
CASH AND CASH EQUIVALENTS | ' | ||||||||
NOTE 5 — CASH AND CASH EQUIVALENTS | |||||||||
Cash and cash equivalents consist of the following: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Cash and due from banks | $ | 4,218 | $ | 4,697 | |||||
Interest-bearing deposits in other financial institutions | 41,092 | 26,440 | |||||||
$ | 45,310 | $ | 31,137 |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | ' | ||||||||||||||||||||||||||||
INVESTMENT SECURITIES | ' | ||||||||||||||||||||||||||||
NOTE 6 — INVESTMENT SECURITIES | |||||||||||||||||||||||||||||
The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities, are summarized as follows: | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||
U.S. Government and federal agencies | $ | 18,572 | $ | 4 | $ | (513 | ) | $ | 18,063 | ||||||||||||||||||||
State and political subdivisions | 60,159 | 1,526 | (1,016 | ) | 60,669 | ||||||||||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies | 45,015 | 540 | (275 | ) | 45,280 | ||||||||||||||||||||||||
Total investment securities available for sale | 123,746 | 2,070 | (1,804 | ) | 124,012 | ||||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies | 1,490 | 191 | (1 | ) | 1,680 | ||||||||||||||||||||||||
Total investment securities | $ | 125,236 | $ | 2,261 | $ | (1,805 | ) | $ | 125,692 | ||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||
State and political subdivisions | $ | 55,254 | $ | 4,360 | $ | (4 | ) | $ | 59,610 | ||||||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies | 41,265 | 1,409 | — | 42,674 | |||||||||||||||||||||||||
Total investment securities available for sale | 96,519 | 5,769 | (4 | ) | 102,284 | ||||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies | 1,965 | 306 | — | 2,271 | |||||||||||||||||||||||||
Total investment securities | $ | 98,484 | $ | 6,075 | $ | (4 | ) | $ | 104,555 | ||||||||||||||||||||
Gross realized gains were $13,000 and $112,000 for the years ended December 31, 2013 and 2012, respectively. These gains resulted from the sale proceeds of investment and mortgage-backed securities available for sale of $2.0 million and $2.7 million for the years ended December 31, 2013 and 2012, respectively. Gross realized losses were $9,000 and $27,000 for the years ended December 31, 2013 and 2012, respectively, which resulted from the sale proceeds of investment and mortgage-backed securities available for sale of $2.0 million and $1.1 million for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
The amortized cost and fair value of investment securities by contractual maturity and mortgage-backed securities are shown below. | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Available for sale | Held to maturity | ||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||||||
cost | value | cost | value | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||
Due in one year or less | $ | 1,645 | $ | 1,666 | $ | — | $ | — | |||||||||||||||||||||
Due after one year through five years | 16,666 | 16,961 | — | — | |||||||||||||||||||||||||
Due after five years through ten years | 39,508 | 39,004 | — | — | |||||||||||||||||||||||||
Due after ten years | 20,912 | 21,101 | — | — | |||||||||||||||||||||||||
78,731 | 78,732 | — | — | ||||||||||||||||||||||||||
Mortgage-backed securities | 45,015 | 45,280 | 1,490 | 1,680 | |||||||||||||||||||||||||
Total investment securities | $ | 123,746 | $ | 124,012 | $ | 1,490 | $ | 1,680 | |||||||||||||||||||||
Investment securities having an aggregate amortized cost of approximately $14.8 million and $7.0 million were pledged to secure public deposits at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
There were no securities held other than U.S. Government and agencies from a single issuer that represented more than 10% of stockholders’ equity at year end. | |||||||||||||||||||||||||||||
The Company also holds stock in the FHLB totaling $3.4 million and $5.4 million as of December 31, 2013 and 2012, respectively. The Company is required to maintain a minimum amount of FHLB stock as determined by its borrowing levels and amount of eligible assets. At December 31, 2013 the Company was required to hold $3.4 million in FHLB stock. FHLB stock can only be repurchased by the FHLB or sold to another member, and all sales must be at par. The Company holds FHLB stock as a long term investment based on the ultimate recoverability of the par value. The Company evaluates potential impairment of its investment in FHLB stock quarterly and considers the following: 1) the magnitude and direction of the change in the net assets of the FHLB as compared to the capital stock amount and the duration of this condition, 2) the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, 3) the impact of regulatory changes on the FHLB and on its members and 4) the liquidity position of the FHLB. Redemptions of FHLB stock totaled $2.5 million and $2.2 million for the years ended December 31, 2013 and 2012, respectively. After evaluating these factors the Company has concluded that the par value of its investment in FHLB stock is recoverable and no impairment has been recorded during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
The table below indicates the length of time individual securities, both held to maturity and available for sale, have been in a continuous unrealized loss position at December 31, 2013: | |||||||||||||||||||||||||||||
Less than | 12 months | Total | |||||||||||||||||||||||||||
12 months | or longer | ||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
of | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||||
Securities | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
U.S. Government and federal agencies | 13 | $ | 17,028 | $ | (513 | ) | $ | — | $ | — | $ | 17,028 | $ | (513 | ) | ||||||||||||||
State and political subdivisions | 24 | 19,646 | (1,016 | ) | — | — | 19,646 | (1,016 | ) | ||||||||||||||||||||
Residential mortgage-backed securities issued by quasi- governmental agencies | 65 | 24,508 | (276 | ) | — | — | 24,508 | (276 | ) | ||||||||||||||||||||
Total temporarily impaired securities | 102 | $ | 61,182 | $ | (1,805 | ) | $ | — | $ | — | $ | 61,182 | $ | (1,805 | ) | ||||||||||||||
The table below indicates the length of time individual securities, both held to maturity and available for sale, have been in a continuous unrealized loss position at December 31, 2012: | |||||||||||||||||||||||||||||
Less than | 12 months | Total | |||||||||||||||||||||||||||
12 months | or longer | ||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
of | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||||
Securities | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
State and political subdivisions | 1 | $ | 617 | $ | (4 | ) | $ | — | $ | — | $ | 617 | $ | (4 | ) | ||||||||||||||
Total temporarily impaired securities | 1 | $ | 617 | $ | (4 | ) | $ | — | $ | — | $ | 617 | $ | (4 | ) | ||||||||||||||
The Company evaluates debt securities on a quarterly basis to determine whether OTTI exists. Unrealized losses primarily relate to interest rate fluctuations and not credit concerns. The Company does not intend to sell these securities and it is not more likely than not that it will be required to sell these securities. Accordingly, unrealized losses at December 31, 2013 and 2012 are not considered other-than-temporary and are therefore reflected in other comprehensive income (loss). |
LOANS_RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
LOANS RECEIVABLE [Abstract] | ' | ||||||||||||||||||||||||||||
LOANS RECEIVABLE | ' | ||||||||||||||||||||||||||||
NOTE 7 — LOANS RECEIVABLE | |||||||||||||||||||||||||||||
Loans receivable are summarized as follows: | |||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Held for investment: | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 371,961 | $ | 323,665 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 129,345 | 104,766 | |||||||||||||||||||||||||||
Real estate-residential | 20,005 | 21,570 | |||||||||||||||||||||||||||
Real estate-multi-family | 16,623 | 19,118 | |||||||||||||||||||||||||||
Construction loans | 8,773 | 16,288 | |||||||||||||||||||||||||||
Commercial and industrial loans | 6,849 | 4,646 | |||||||||||||||||||||||||||
Total commercial loans | 181,595 | 166,388 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 64,202 | 40,143 | |||||||||||||||||||||||||||
Other consumer | 1,697 | 1,835 | |||||||||||||||||||||||||||
Total consumer loans | 65,899 | 41,978 | |||||||||||||||||||||||||||
Total loans | 619,455 | 532,031 | |||||||||||||||||||||||||||
Net deferred loan origination costs and unamortized premiums | 1,288 | 1,611 | |||||||||||||||||||||||||||
Less allowance for loan losses | (6,575 | ) | (6,922 | ) | |||||||||||||||||||||||||
Total loans receivable | $ | 614,168 | $ | 526,720 | |||||||||||||||||||||||||
Held for sale: | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 349 | $ | 706 | |||||||||||||||||||||||||
The following tables present by credit quality indicator the composition of the commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial credit exposure-credit risk profile by internally assigned grade | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Real estate-commercial | $ | 113,260 | $ | 7,142 | $ | 8,943 | $ | — | $ | 129,345 | |||||||||||||||||||
Real estate-residential | 17,182 | 487 | 2,336 | — | 20,005 | ||||||||||||||||||||||||
Real estate-multi-family | 13,114 | — | 3,509 | — | 16,623 | ||||||||||||||||||||||||
Construction loans | 5,596 | — | 3,177 | — | 8,773 | ||||||||||||||||||||||||
Commercial and industrial loans | 6,817 | 32 | — | — | 6,849 | ||||||||||||||||||||||||
Total | $ | 155,969 | $ | 7,661 | $ | 17,965 | $ | — | $ | 181,595 | |||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Real estate-commercial | $ | 91,446 | $ | 4,192 | $ | 9,128 | $ | — | $ | 104,766 | |||||||||||||||||||
Real estate-residential | 19,244 | 1,018 | 1,308 | — | 21,570 | ||||||||||||||||||||||||
Real estate-multi-family | 15,751 | — | 3,367 | — | 19,118 | ||||||||||||||||||||||||
Construction loans | 7,397 | 4,097 | 4,794 | — | 16,288 | ||||||||||||||||||||||||
Commercial and industrial loans | 4,565 | 81 | — | — | 4,646 | ||||||||||||||||||||||||
Total | $ | 138,403 | $ | 9,388 | $ | 18,597 | $ | — | $ | 166,388 | |||||||||||||||||||
In order to assess and monitor the credit risk associated with commercial loans, the Company employs a risk rating methodology whereby each commercial loan is initially assigned a risk grade. At least annually, all risk ratings are reviewed in light of information received such as tax returns, rent rolls, cash flow statements, appraisals, and any other information which may affect the then-current risk rating, which may be adjusted upward or downward as a result of this review. At the end of each quarter, the risk ratings are summarized and become a component of the evaluation of the allowance for loan losses. The Company’s risk rating definitions mirror those promulgated by banking regulators and are as follows: | |||||||||||||||||||||||||||||
Pass: A good quality loan characterized by satisfactory liquidity; reasonable debt capacity and coverage; acceptable management in all critical positions and normal operating results for its peer group. The Company has grades 1 through 6 within the Pass category which reflect the increasing amount of attention paid to the individual loan because of, among other things, trends in debt service coverage, management weaknesses, or collateral values. | |||||||||||||||||||||||||||||
Special mention: A loan that has potential weaknesses that deserves management’s close attention. Although the loan is currently protected, if left uncorrected, potential weaknesses may result in deterioration of the loan’s repayment prospects or in the Company’s future credit position. Potential weaknesses include: weakening financial condition; an unrealistic repayment program; inadequate sources of funds; lack of adequate collateral; or credit information, or documentation. There is currently the capacity to meet interest and principal payments, but further adverse business, financial, or economic conditions may impair the borrower’s capacity or willingness to pay interest and repay principal. | |||||||||||||||||||||||||||||
Substandard: A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. Although no loss of principal or interest is presently apparent, there is the distinct possibility that a partial loss of interest and/or principal will be sustained if the deficiencies are not corrected. There is a current identifiable vulnerability to default and the dependence upon favorable business, financial, or economic conditions to meet timely payment of interest and repayment of principal. | |||||||||||||||||||||||||||||
Doubtful: A loan which has all the weaknesses inherent in a substandard asset with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors which may work to strengthen the asset, classification as an estimated loss if deferred until a more exact status is determined. Pending factors include: proposed merger, acquisition, liquidation, capital injection, perfecting liens on additional collateral, and refinancing plans. | |||||||||||||||||||||||||||||
Loss: Loans which are considered uncollectible and should be charged off. The Company has charged-off all loans classified as loss. | |||||||||||||||||||||||||||||
Loans classified as special mention, substandard or doubtful are monitored individually on a monthly basis. Loans which require impairment evaluation are placed on nonaccrual status and are classified as substandard or doubtful. | |||||||||||||||||||||||||||||
The following tables present by credit quality indicator the composition of the residential mortgage and consumer loan portfolios: | |||||||||||||||||||||||||||||
Mortgage and consumer credit exposure-credit risk profile by payment activity | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential mortgages | $ | 368,967 | $ | 2,994 | $ | 371,961 | |||||||||||||||||||||||
Home equity and second mortgage | 63,902 | 300 | 64,202 | ||||||||||||||||||||||||||
Other consumer | 1,697 | — | 1,697 | ||||||||||||||||||||||||||
Total | $ | 434,566 | $ | 3,294 | $ | 437,860 | |||||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential mortgages | $ | 321,400 | $ | 2,265 | $ | 323,665 | |||||||||||||||||||||||
Home equity and second mortgage | 40,000 | 143 | 40,143 | ||||||||||||||||||||||||||
Other consumer | 1,827 | 8 | 1,835 | ||||||||||||||||||||||||||
Total | $ | 363,227 | $ | 2,416 | $ | 365,643 | |||||||||||||||||||||||
In order to assess and monitor the credit risk associated with residential mortgage loans and consumer loans, which include second mortgage loans and home equity secured lines of credit, the Company relies upon the payment status of the loan. Residential mortgage and other consumer loans 90 days or more past due are placed on nonaccrual status and evaluated for impairment on a pooled basis with the exception of loans with balances in excess of $1.0 million and loans that have been modified as TDRs. An individual impairment analysis is performed using a recent appraisal or current sales contract for TDRs as well as nonperforming mortgage and consumer loans with balances in excess of $1.0 million. | |||||||||||||||||||||||||||||
The following table presents by class nonperforming loans including impaired loans and loan balances past due over 90 days for which the accrual of interest has been discontinued: | |||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 2,994 | $ | 2,265 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 774 | 1,098 | |||||||||||||||||||||||||||
Real estate-residential | 896 | 51 | |||||||||||||||||||||||||||
Real estate-multi-family | 191 | — | |||||||||||||||||||||||||||
Construction loans | 3,177 | 4,794 | |||||||||||||||||||||||||||
Commercial and industrial loans | — | — | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 300 | 143 | |||||||||||||||||||||||||||
Other consumer | — | 8 | |||||||||||||||||||||||||||
Total nonperforming loans | $ | 8,332 | $ | 8,359 | |||||||||||||||||||||||||
Additional interest income that would have been recorded under the original terms of the loan agreements amounted to $301,000 and $413,000 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
The following tables present by class loans individually evaluated for impairment: | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Recorded investment | Unpaid principal balance | Related | Average recorded investment | Interest income recognized | |||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||
With an allowance recorded: | (in thousands) | ||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 1,135 | $ | 1,135 | $ | 128 | $ | 1,620 | $ | — | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | — | — | — | 109 | — | ||||||||||||||||||||||||
Real estate-residential | 712 | 712 | 77 | 211 | — | ||||||||||||||||||||||||
Construction loans | 3,177 | 3,375 | 2,021 | 3,701 | — | ||||||||||||||||||||||||
5,024 | 5,222 | 2,226 | 5,641 | — | |||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | 1,184 | 1,184 | — | 241 | — | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 774 | 774 | — | 607 | — | ||||||||||||||||||||||||
Real estate-residential | 184 | 321 | — | 108 | — | ||||||||||||||||||||||||
Real estate-multi-family | 191 | 372 | — | 77 | — | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 47 | 81 | — | 7 | — | ||||||||||||||||||||||||
2,380 | 2,732 | — | 1,040 | — | |||||||||||||||||||||||||
Total | $ | 7,404 | $ | 7,954 | $ | 2,226 | $ | 6,681 | $ | — | |||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Unpaid principal | Average recorded | Interest income | |||||||||||||||||||||||||||
Recorded | balance | Related | investment | recognized | |||||||||||||||||||||||||
investment | allowance | ||||||||||||||||||||||||||||
With an allowance recorded: | (in thousands) | ||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 2,137 | $ | 2,214 | $ | 218 | $ | 2,061 | $ | — | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 546 | 1,497 | 296 | 697 | — | ||||||||||||||||||||||||
Real estate-residential | 51 | 51 | 4 | 298 | — | ||||||||||||||||||||||||
Construction loans | 4,737 | 5,137 | 1,029 | 3,604 | — | ||||||||||||||||||||||||
Commercial and industrial loans | — | — | — | 2 | — | ||||||||||||||||||||||||
7,471 | 8,899 | 1,547 | 6,662 | — | |||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | — | — | — | 698 | — | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 552 | 552 | — | 1,012 | — | ||||||||||||||||||||||||
Real estate-residential | — | — | — | 216 | — | ||||||||||||||||||||||||
Construction loans | 57 | 116 | — | 1,932 | — | ||||||||||||||||||||||||
609 | 668 | — | 3,858 | — | |||||||||||||||||||||||||
Total | $ | 8,080 | $ | 9,567 | $ | 1,547 | $ | 10,520 | $ | — | |||||||||||||||||||
The following tables present by class the contractual aging of delinquent loans: | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | Loans | Total | Total | Recorded | |||||||||||||||||||||||
Days | Days | past due | past due | loans | investment | ||||||||||||||||||||||||
past due | past due | 90 days | over 90 days | ||||||||||||||||||||||||||
or more | and accruing | ||||||||||||||||||||||||||||
interest | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 369,271 | $ | 111 | $ | — | $ | 2,579 | $ | 2,690 | $ | 371,961 | $ | — | |||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 127,786 | 785 | — | 774 | 1,559 | 129,345 | — | ||||||||||||||||||||||
Real estate-residential | 18,589 | 180 | 340 | 896 | 1,416 | 20,005 | — | ||||||||||||||||||||||
Real estate-multi-family | 16,432 | — | — | 191 | 191 | 16,623 | — | ||||||||||||||||||||||
Construction loans | 5,596 | — | — | 3,177 | 3,177 | 8,773 | — | ||||||||||||||||||||||
Commercial and industrial loans | 6,849 | — | — | — | — | 6,849 | — | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 63,543 | 355 | 4 | 300 | 659 | 64,202 | — | ||||||||||||||||||||||
Other consumer | 1,686 | 7 | 4 | — | 11 | 1,697 | — | ||||||||||||||||||||||
Total | $ | 609,752 | $ | 1,438 | $ | 348 | $ | 7,917 | $ | 9,703 | $ | 619,455 | $ | — | |||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | Loans | Total | Total | Recorded | |||||||||||||||||||||||
Days | Days | past due | past due | loans | investment | ||||||||||||||||||||||||
past due | past due | 90 days | over 90 days | ||||||||||||||||||||||||||
or more | and accruing | ||||||||||||||||||||||||||||
interest | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 319,982 | $ | 1,161 | $ | 329 | $ | 2,193 | $ | 3,683 | $ | 323,665 | $ | — | |||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 102,868 | 800 | — | 1,098 | 1,898 | 104,766 | — | ||||||||||||||||||||||
Real estate-residential | 21,488 | 31 | — | 51 | 82 | 21,570 | — | ||||||||||||||||||||||
Real estate-multi-family | 19,118 | — | — | — | — | 19,118 | — | ||||||||||||||||||||||
Construction loans | 11,494 | — | — | 4,794 | 4,794 | 16,288 | — | ||||||||||||||||||||||
Commercial and industrial loans | 4,646 | — | — | — | — | 4,646 | — | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 39,842 | 34 | 124 | 143 | 301 | 40,143 | — | ||||||||||||||||||||||
Other consumer | 1,824 | — | 3 | 8 | 11 | 1,835 | — | ||||||||||||||||||||||
Total | $ | 521,262 | $ | 2,026 | $ | 456 | $ | 8,287 | $ | 10,769 | $ | 532,031 | $ | — | |||||||||||||||
Activity in the allowance for loan losses is summarized as follows: | |||||||||||||||||||||||||||||
Balance | Provision | Charge-offs | Recoveries | Balance | |||||||||||||||||||||||||
January 1, | December 31, | ||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 1,849 | $ | 326 | $ | (465 | ) | $ | 12 | $ | 1,722 | ||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 1,754 | (99 | ) | (435 | ) | — | 1,220 | ||||||||||||||||||||||
Real estate-residential | 608 | (81 | ) | (90 | ) | — | 437 | ||||||||||||||||||||||
Real estate-multi-family | 245 | (109 | ) | — | — | 136 | |||||||||||||||||||||||
Construction loans | 1,697 | 647 | (150 | ) | 14 | 2,208 | |||||||||||||||||||||||
Commercial and industrial loans | 119 | (21 | ) | (10 | ) | 9 | 97 | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 251 | 13 | (58 | ) | 8 | 214 | |||||||||||||||||||||||
Other consumer | 11 | 60 | (27 | ) | 6 | 50 | |||||||||||||||||||||||
Unallocated | 388 | 103 | — | — | 491 | ||||||||||||||||||||||||
Total | $ | 6,922 | $ | 839 | $ | (1,235 | ) | $ | 49 | $ | 6,575 | ||||||||||||||||||
Balance | Provision | Charge-offs | Recoveries | Balance | |||||||||||||||||||||||||
January 1, | December 31, | ||||||||||||||||||||||||||||
2012 | 2012 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 2,194 | $ | 367 | $ | (768 | ) | $ | 56 | $ | 1,849 | ||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 2,352 | 353 | (951 | ) | — | 1,754 | |||||||||||||||||||||||
Real estate-residential | 369 | 726 | (487 | ) | — | 608 | |||||||||||||||||||||||
Real estate-multi-family | 350 | (105 | ) | — | — | 245 | |||||||||||||||||||||||
Construction loans | 1,830 | 1,049 | (1,182 | ) | — | 1,697 | |||||||||||||||||||||||
Commercial and industrial loans | 138 | 115 | (156 | ) | 22 | 119 | |||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 448 | (104 | ) | (93 | ) | — | 251 | ||||||||||||||||||||||
Other consumer | 22 | 8 | (23 | ) | 4 | 11 | |||||||||||||||||||||||
Unallocated | 397 | (9 | ) | — | — | 388 | |||||||||||||||||||||||
Total | $ | 8,100 | $ | 2,400 | $ | (3,660 | ) | $ | 82 | $ | 6,922 | ||||||||||||||||||
The following tables present by class the ending balance of the allowance for loan losses and ending loan balance based on the impairment method as of December 31, 2013: | |||||||||||||||||||||||||||||
Evaluated for impairment | |||||||||||||||||||||||||||||
Allowance for loan losses | Loans | Loans | Individually | Collectively | Total | ||||||||||||||||||||||||
acquired | acquired | ||||||||||||||||||||||||||||
without | with credit | ||||||||||||||||||||||||||||
credit | deterioration | ||||||||||||||||||||||||||||
deterioration | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | — | $ | — | $ | 128 | $ | 1,594 | $ | 1,722 | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | — | — | — | 1,220 | 1,220 | ||||||||||||||||||||||||
Real estate-residential | — | — | 77 | 360 | 437 | ||||||||||||||||||||||||
Real estate-multi-family | — | — | — | 136 | 136 | ||||||||||||||||||||||||
Construction loans | — | — | 2,021 | 187 | 2,208 | ||||||||||||||||||||||||
Commercial and industrial loans | — | — | — | 97 | 97 | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | — | — | — | 214 | 214 | ||||||||||||||||||||||||
Other consumer | — | — | — | 50 | 50 | ||||||||||||||||||||||||
Unallocated | — | — | — | 491 | 491 | ||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 2,226 | $ | 4,349 | $ | 6,575 | |||||||||||||||||||
Evaluated for impairment | |||||||||||||||||||||||||||||
Loans receivable | Loans | Loans | Individually | Collectively | Total | ||||||||||||||||||||||||
acquired | acquired | ||||||||||||||||||||||||||||
without | with credit | ||||||||||||||||||||||||||||
credit | deterioration | ||||||||||||||||||||||||||||
deterioration | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 50,985 | $ | 22 | $ | 2,297 | $ | 318,657 | $ | 371,961 | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 12,787 | — | 774 | 115,784 | 129,345 | ||||||||||||||||||||||||
Real estate-residential | 4,913 | 184 | 712 | 14,196 | 20,005 | ||||||||||||||||||||||||
Real estate-multi-family | 1,116 | 191 | — | 15,316 | 16,623 | ||||||||||||||||||||||||
Construction loans | — | — | 3,177 | 5,596 | 8,773 | ||||||||||||||||||||||||
Commercial and industrial loans | 279 | — | — | 6,570 | 6,849 | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 24,806 | 47 | — | 39,349 | 64,202 | ||||||||||||||||||||||||
Other consumer | 126 | — | — | 1,571 | 1,697 | ||||||||||||||||||||||||
Total | $ | 95,012 | $ | 444 | $ | 6,960 | $ | 517,039 | $ | 619,455 | |||||||||||||||||||
The following tables present by class the ending balance of the allowance for loan losses and ending loan balance based on impairment method as of December 31, 2012: | |||||||||||||||||||||||||||||
Evaluated for impairment | |||||||||||||||||||||||||||||
Allowance for loan losses | Individually | Collectively | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 218 | $ | 1,631 | $ | 1,849 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 296 | 1,458 | 1,754 | ||||||||||||||||||||||||||
Real estate-residential | 4 | 604 | 608 | ||||||||||||||||||||||||||
Real estate-multi-family | — | 245 | 245 | ||||||||||||||||||||||||||
Construction loans | 1,029 | 668 | 1,697 | ||||||||||||||||||||||||||
Commercial and industrial loans | — | 119 | 119 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | — | 251 | 251 | ||||||||||||||||||||||||||
Other consumer | — | 11 | 11 | ||||||||||||||||||||||||||
Unallocated | — | 388 | 388 | ||||||||||||||||||||||||||
Total | $ | 1,547 | $ | 5,375 | $ | 6,922 | |||||||||||||||||||||||
Evaluated for impairment | |||||||||||||||||||||||||||||
Loans receivable | Individually | Collectively | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 2,137 | $ | 321,528 | $ | 323,665 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 1,098 | 103,668 | 104,766 | ||||||||||||||||||||||||||
Real estate-residential | 51 | 21,519 | 21,570 | ||||||||||||||||||||||||||
Real estate-multi-family | — | 19,118 | 19,118 | ||||||||||||||||||||||||||
Construction loans | 4,794 | 11,494 | 16,288 | ||||||||||||||||||||||||||
Commercial and industrial loans | — | 4,646 | 4,646 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | — | 40,143 | 40,143 | ||||||||||||||||||||||||||
Other consumer | — | 1,835 | 1,835 | ||||||||||||||||||||||||||
Total | $ | 8,080 | $ | 523,951 | $ | 532,031 | |||||||||||||||||||||||
The following table presents by class loans classified as TDRs segregated for the periods indicated: | |||||||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Number | Pre- | Post | Number | Pre- | Post | ||||||||||||||||||||||||
of | Modification | Modification | of | Modification | Modification | ||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | Contracts | Outstanding | Outstanding | ||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
Residential | (dollars in thousands) | ||||||||||||||||||||||||||||
Residential mortgage | 0 | $ | — | $ | — | 2 | $ | 950 | $ | 923 | |||||||||||||||||||
Total | 0 | $ | — | $ | — | 2 | $ | 950 | $ | 923 | |||||||||||||||||||
The following table presents loans classified as TDRs that subsequently defaulted: | |||||||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Number | Recorded | ||||||||||||||||||||||||||||
of | Investment | ||||||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||||||
Residential | (in thousands) | ||||||||||||||||||||||||||||
Residential mortgage | 1 | $ | 337 | ||||||||||||||||||||||||||
Total | 1 | $ | 337 | ||||||||||||||||||||||||||
There were no TDRs modified during 2012 that subsequently defaulted. However, a TDR identified in 2011 was in default of its modified terms and was subsequently discharged in a short sale during 2012 with a $40,000 loss charged to the allowance for loan losses. | |||||||||||||||||||||||||||||
Acquired loans are recorded at fair value on their purchase date without a carryover of the related allowance for loan losses. | |||||||||||||||||||||||||||||
The carrying value of the loans acquired and accounted for in accordance with ASC 310-30 was determined by projecting discounted contractual cash flows. The table below presents the components of the purchase accounting adjustments related to the purchased impaired loans acquired in the Roebling acquisition as of July 2, 2013: | |||||||||||||||||||||||||||||
At July 2, 2013 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Unpaid principal balance | $ | 1,320 | |||||||||||||||||||||||||||
Interest | 638 | ||||||||||||||||||||||||||||
Contractual cash flows | 1,958 | ||||||||||||||||||||||||||||
Non-accretable discount | (963 | ) | |||||||||||||||||||||||||||
Expected cash flows | 995 | ||||||||||||||||||||||||||||
Accretable discount | (198 | ) | |||||||||||||||||||||||||||
Estimated fair value | $ | 797 | |||||||||||||||||||||||||||
Changes in the amortizable yield for purchased credit-impaired loans were as follows for the year ended December 31, 2013: | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | — | |||||||||||||||||||||||||||
Acquisition of impaired loans | 198 | ||||||||||||||||||||||||||||
Accretion | (44 | ) | |||||||||||||||||||||||||||
Balance at end of period | $ | 154 | |||||||||||||||||||||||||||
The following table presents additional information regarding loans acquired and accounted for in accordance with | |||||||||||||||||||||||||||||
ASC 310-30: | |||||||||||||||||||||||||||||
2-Jul-13 | 31-Dec-13 | ||||||||||||||||||||||||||||
Acquired Loans with | Acquired Loans with | ||||||||||||||||||||||||||||
Specific Evidence of | Specific Evidence of | ||||||||||||||||||||||||||||
Deterioration in Credit | Deterioration in Credit | ||||||||||||||||||||||||||||
Quality (ASC 310-30) | Quality (ASC 310-30) | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Outstanding balance | $ | 1,958 | $ | 1,508 | |||||||||||||||||||||||||
Carrying amount | 797 | 444 | |||||||||||||||||||||||||||
There has been no allowance for loan losses recorded for acquired loans with or without specific evidence of deterioration in credit quality as of December 31, 2013. | |||||||||||||||||||||||||||||
The Bank had no concentration of loans to borrowers engaged in similar activities that exceeded 10% of loans at December 31, 2013 and 2012. In the ordinary course of business, the Bank has granted loans to certain executive officers, directors and their related interests. Related party loans are made on substantially the same terms as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collectability. The aggregate dollar amount of these loans was approximately $210,000 and $125,000 at December 31, 2013 and 2012, respectively. Acquired loans to related parties totaled $188,000 during 2013. For the year ended December 31, 2013, principal repayments of $103,000 of related party loans were received. Unused lines of credit available were $360,000 at December 31, 2013 and 2012. |
LOAN_SERVICING
LOAN SERVICING | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
LOAN SERVICING [Abstract] | ' | ||||||||
LOAN SERVICING | ' | ||||||||
NOTE 8 — LOAN SERVICING | |||||||||
Mortgage loans serviced for others are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of these loans are summarized as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Mortgage loan servicing portfolios | |||||||||
FHLMC | $ | 154 | $ | 235 | |||||
FNMA | 150,670 | 127,677 | |||||||
Other investors | 10,717 | 8,294 | |||||||
$ | 161,541 | $ | 136,206 | ||||||
Custodial balances maintained in connection with the foregoing loan servicing totaled approximately $1.7 million and $2.8 million and are included as deposits at December 31, 2013 and 2012, respectively. Net servicing revenue/(loss) on mortgage loans serviced for others was $338,000 and $(66,000) for the years ended December 31, 2013 and 2012, respectively. |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
PREMISES AND EQUIPMENT [Abstract] | ' | |||||||||
PREMISES AND EQUIPMENT | ' | |||||||||
NOTE 9 — PREMISES AND EQUIPMENT | ||||||||||
Premises and equipment are summarized as follows: | ||||||||||
At December 31, | ||||||||||
Estimated | 2013 | 2012 | ||||||||
useful lives | ||||||||||
(in thousands) | ||||||||||
Buildings | 30 years | $ | 9,559 | $ | 7,614 | |||||
Leasehold improvements | 5-10 years | 3,216 | 3,243 | |||||||
Furniture, fixtures and equipment | 3-7 years | 7,320 | 7,292 | |||||||
20,095 | 18,149 | |||||||||
Less accumulated depreciation | 13,788 | 13,640 | ||||||||
6,307 | 4,509 | |||||||||
Land | 2,309 | 1,599 | ||||||||
$ | 8,616 | $ | 6,108 | |||||||
The Company recognized depreciation expense of $672,000 and $781,000 for the years ended December 31, 2013 and 2012, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
DEPOSITS [Abstract] | ' | ||||||||||||||||||||||||||
DEPOSITS | ' | ||||||||||||||||||||||||||
NOTE 10 — DEPOSITS | |||||||||||||||||||||||||||
Deposits are summarized as follows: | |||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Deposit Type | |||||||||||||||||||||||||||
Noninterest-bearing checking | $ | 68,133 | $ | 52,433 | |||||||||||||||||||||||
Interest-bearing checking | 114,184 | 76,370 | |||||||||||||||||||||||||
Money market | 180,215 | 153,827 | |||||||||||||||||||||||||
Passbook savings | 130,878 | 106,268 | |||||||||||||||||||||||||
Total demand, transaction and passbook deposits | 493,410 | 388,898 | |||||||||||||||||||||||||
Certificates of deposit | 190,492 | 171,417 | |||||||||||||||||||||||||
$ | 683,902 | $ | 560,315 | ||||||||||||||||||||||||
The aggregate amount of certificates of deposit with a minimum denomination of $100,000 was approximately $47.9 million and $50.7 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
At December 31, 2013, scheduled maturities of certificates of deposit by year are as follows: | |||||||||||||||||||||||||||
Maturity year | |||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
$ | 129,723 | $ | 35,829 | $ | 11,901 | $ | 7,172 | $ | 5,737 | $ | 130 | $ | 190,492 | ||||||||||||||
Related party deposits are on substantially the same terms as are comparable transactions with unrelated persons. Related parties include certain executive officers, directors and their related interests. The aggregate dollar amount of these deposits was approximately $5.3 million and $5.0 million at December 31, 2013 and 2012, respectively. |
ADVANCES_FROM_THE_FHLB
ADVANCES FROM THE FHLB | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
ADVANCES FROM THE FHLB [Abstract] | ' | ||||||||||||||||
ADVANCES FROM THE FHLB | ' | ||||||||||||||||
NOTE 11 — ADVANCES FROM THE FHLB | |||||||||||||||||
Advances from the FHLB consist of the following: | |||||||||||||||||
At December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Principal payments due during | Weighted | Weighted | |||||||||||||||
Amount | average rate | Amount | average rate | ||||||||||||||
(in thousands) | |||||||||||||||||
2013 | $ | — | — | % | $ | 11,051 | 3.18 | % | |||||||||
2014 | 4,287 | 2.4 | % | 4,287 | 2.4 | % | |||||||||||
2015 | 3,669 | 2.16 | % | 3,669 | 2.16 | % | |||||||||||
2016 | 10,887 | 1.38 | % | 10,887 | 1.38 | % | |||||||||||
2017 | 14,895 | 1.12 | % | 14,895 | 1.12 | % | |||||||||||
2018 | 1,330 | 1.87 | % | 1,330 | 1.87 | % | |||||||||||
Thereafter | 14,537 | 1.83 | % | 14,537 | 1.83 | % | |||||||||||
$ | 49,605 | 1.59 | % | $ | 60,656 | 1.88 | % | ||||||||||
The advances are collateralized by certain first mortgage loans totaling approximately $353.5 million and the FHLB stock owned by the Bank which allow for a maximum borrowing capacity of $271.1 million. Total unused lines of credit at the FHLB were $60.0 million at December 31, 2013. All of the advances from the FHLB are fixed rate, fixed term. |
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
BENEFIT PLANS [Abstract] | ' | ||||||||||||||||||||||
BENEFIT PLANS | ' | ||||||||||||||||||||||
NOTE 12 — BENEFIT PLANS | |||||||||||||||||||||||
a. Defined Contribution Plan | |||||||||||||||||||||||
The Bank maintains a 401(k) profit-sharing plan for eligible employees. Participants may contribute up to 50% of pretax eligible compensation. The Bank makes matching discretionary contributions equal to 75% of the initial $1,000 deferral. Matching contributions to the 401(k) plan totaled $75,000 and $78,000 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
b. Defined Benefit Plan | |||||||||||||||||||||||
The Bank has a noncontributory defined benefit pension plan covering substantially all full-time employees meeting certain eligibility requirements. The benefits are based on each employee’s years of service and an average earnings formula. An employee becomes fully vested upon completion of five years of qualifying service. | |||||||||||||||||||||||
The following tables set forth the projected benefit obligation, the fair value of assets of the plan and funded status of the defined benefit pension plan as reflected in the Consolidated Balance Sheets: | |||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Reconciliation of projected benefit obligation | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 8,940 | $ | 8,045 | |||||||||||||||||||
Service cost | 823 | 736 | |||||||||||||||||||||
Interest cost | 355 | 360 | |||||||||||||||||||||
Actuarial (gain) loss | (1,116 | ) | 339 | ||||||||||||||||||||
Amendments | — | — | |||||||||||||||||||||
Benefits paid | (769 | ) | (540 | ) | |||||||||||||||||||
Benefit obligation at end of year | $ | 8,233 | $ | 8,940 | |||||||||||||||||||
Reconciliation of fair value of assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 9,767 | $ | 8,006 | |||||||||||||||||||
Actual return on plan assets | 1,593 | 801 | |||||||||||||||||||||
Employer contribution | 654 | 1,500 | |||||||||||||||||||||
Benefits paid | (769 | ) | (540 | ) | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 11,245 | $ | 9,767 | |||||||||||||||||||
Funded status at end of year | $ | 3,012 | $ | 827 | |||||||||||||||||||
The accumulated benefit obligation at December 31, 2013 and 2012 was $7.1 million and $8.1 million, respectively. | |||||||||||||||||||||||
Employer contributions and benefits paid in the above table include only those amounts contributed directly to, or paid directly from, plan assets. No employer contribution is anticipated for 2014. | |||||||||||||||||||||||
The following table sets forth the amounts recognized in accumulated other comprehensive income (loss) for the years ended: | |||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net loss | $ | (2,028 | ) | $ | (4,270 | ) | |||||||||||||||||
Prior service cost | (23 | ) | (27 | ) | |||||||||||||||||||
Total | $ | (2,051 | ) | $ | (4,297 | ) | |||||||||||||||||
The net gain recognized in accumulated other comprehensive income (loss) as an adjustment to the funded status of the plan was $2.2 million and $103,000 at December 31, 2013 and 2012, respectively. The amounts expected to be amortized from accumulated other comprehensive income in 2014 is $76,000 of net actuarial gain and prior service cost. | |||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations: | |||||||||||||||||||||||
Discount rate | 5 | % | 4 | % | |||||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | |||||||||||||||||||
For the years ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||
Service cost | $ | 823 | $ | 736 | |||||||||||||||||||
Interest cost | 355 | 360 | |||||||||||||||||||||
Expected return on plan assets | (728 | ) | (644 | ) | |||||||||||||||||||
Amortization of prior service cost | 2 | 2 | |||||||||||||||||||||
Recognized net actuarial loss | 262 | 283 | |||||||||||||||||||||
Net periodic benefit cost | $ | 714 | $ | 737 | |||||||||||||||||||
For the years ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Weighted-average assumptions used to determine net benefit costs: | |||||||||||||||||||||||
Discount rate | 4 | % | 4.5 | % | |||||||||||||||||||
Expected return on plan assets | 7.5 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | 3 | % | 4 | % | |||||||||||||||||||
The long-term expected rate of return used for the plan year 2013 was determined by analyzing average rates of return over a number of prior periods on the assets in which the plan is currently invested. | |||||||||||||||||||||||
Estimated future benefits payments are as follows: | |||||||||||||||||||||||
Year ending December 31, | Amount | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
2014 | $ | 202 | |||||||||||||||||||||
2015 | 234 | ||||||||||||||||||||||
2016 | 277 | ||||||||||||||||||||||
2017 | 282 | ||||||||||||||||||||||
2018 | 319 | ||||||||||||||||||||||
2019-2023 | 2,058 | ||||||||||||||||||||||
The financial statements of the Company’s defined benefit pension plan are prepared in conformity with US GAAP. Investments of the plan are stated at fair value. Purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on an accrual basis. Dividends are recorded on the ex-dividend date. Fair value of plan assets is determined using the fair value hierarchy discussed in Note 18 - Fair Value Measurements and Fair Value of Financial Instruments. The fair value hierarchy requires the plan to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and provides three levels of inputs that may be used to measure fair value. | |||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the plan’s financial assets at fair value as of December 31, 2013: | |||||||||||||||||||||||
Balance as of | |||||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Collective investment trust funds | $ | — | $ | 11,245 | $ | — | $ | 11,245 | |||||||||||||||
Total plan assets at fair value | $ | — | $ | 11,245 | $ | — | $ | 11,245 | |||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the plan’s financial assets at fair value as of December 31, 2012: | |||||||||||||||||||||||
Balance as of | |||||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Collective investment trust funds | $ | — | $ | 9,767 | $ | — | $ | 9,767 | |||||||||||||||
Total plan assets at fair value | $ | — | $ | 9,767 | $ | — | $ | 9,767 | |||||||||||||||
Collective investment trust funds are valued by the trustee. The trustee follows written procedures for establishing unit values on a periodic basis which incorporate observable market data; however the collective investment trust fund itself is not traded on an established market and therefore is categorized as a Level 2 hierarchy. | |||||||||||||||||||||||
The plan’s weighted-average asset allocations by asset category are as follows: | |||||||||||||||||||||||
Percentage of plan assets | |||||||||||||||||||||||
at December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||
Collective investment trust funds | 100 | % | 100 | % | |||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||
Trustees of the plan are responsible for defining and implementing the investment objectives and policies for the plan’s assets. Assets are invested in accordance with sound investment practices that emphasize long-term investment fundamentals that closely match the demographics of the plan’s participants. The plan’s goal is to earn long-term returns that match or exceed the benefit obligations of the plan, giving consideration to the timing of expected future benefit payments, through a well-diversified portfolio structure. The plan’s return objectives and risk parameters are managed through a diversified mix of assets and targeted allocation percentage ranges. The asset mix and investment strategy are reviewed on a quarterly basis and rebalanced based on the actual percentage in comparison to the targeted range. | |||||||||||||||||||||||
c. ESOP | |||||||||||||||||||||||
The Company has an internally leveraged ESOP for eligible employees who have completed six months of service with the Company or its subsidiaries. The ESOP borrowed $4.2 million from the Company in 1996 to purchase 423,200 newly issued shares of common stock. Any dividends received by the ESOP will be used to pay debt service. The Company makes discretionary contributions to the ESOP in order to service the ESOP’s debt if necessary. The ESOP shares are pledged as collateral for its debt. As the debt is repaid, shares are released from collateral based on the proportion of debt service paid in the year and allocated to qualifying employees. The Company reports compensation expense in the amount equal to the fair value of shares allocated from the ESOP to employees less dividends received on the allocated shares in the plan used for debt service. The allocated shares are included in outstanding shares for earnings per share computations. ESOP compensation expense included in stock-based compensation totaled $284,000 and $286,000 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Allocated shares | 187,000 | 184,000 | |||||||||||||||||||||
Unreleased shares | 90,000 | 103,000 | |||||||||||||||||||||
Total ESOP shares | 277,000 | 287,000 | |||||||||||||||||||||
Fair value of unreleased shares (in thousands) | $ | 2,534 | $ | 2,446 | |||||||||||||||||||
d. Stock-Based Compensation Plans | |||||||||||||||||||||||
A summary of the status of the Company’s stock option plans as of December 31, 2013 and 2012, and changes for each of the years then ended, is as follows: | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||||||||
of | average | of | average | ||||||||||||||||||||
shares | exercise | shares | exercise | ||||||||||||||||||||
price per | price per | ||||||||||||||||||||||
share | share | ||||||||||||||||||||||
Outstanding at beginning of year | 89,279 | $ | 24.08 | 109,765 | $ | 24.41 | |||||||||||||||||
Options granted | 205,000 | 24.28 | — | — | |||||||||||||||||||
Options exercised | (8,547 | ) | 25.24 | (315 | ) | 19.67 | |||||||||||||||||
Options forfeited | (4,271 | ) | 27.1 | (1,904 | ) | 28.59 | |||||||||||||||||
Options expired | (27,317 | ) | 28.19 | (18,267 | ) | 25.68 | |||||||||||||||||
Outstanding at end of year | 254,144 | 23.71 | 89,279 | 24.08 | |||||||||||||||||||
Options exercisable | 50,644 | $ | 21.41 | 80,652 | $ | 24.55 | |||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||
Options outstanding | Options exercisable | ||||||||||||||||||||||
Range of exercise prices | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||||
average | average | average | |||||||||||||||||||||
remaining | exercise | exercise | |||||||||||||||||||||
contractual | price | price | |||||||||||||||||||||
life (years) | |||||||||||||||||||||||
$ | 19.67 - 26.90 | 254,144 | 2.81 | $ | 23.71 | 50,644 | $ | 21.41 | |||||||||||||||
The following table reflects information on the aggregate intrinsic value of options as well as cash receipts from option exercises: | |||||||||||||||||||||||
For the years ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Aggregate intrinsic value of | |||||||||||||||||||||||
Options outstanding | $ | 1,132 | $ | 179 | |||||||||||||||||||
Options exercisable | 342 | 144 | |||||||||||||||||||||
Options exercised | 5 | 1 | |||||||||||||||||||||
Cash receipts | 216 | 7 | |||||||||||||||||||||
The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the year and the exercise price, multiplied by the number of exercisable in-the-money options). The Company has a policy of issuing shares from treasury to satisfy share option exercises. | |||||||||||||||||||||||
Stock-based compensation expense related to stock options resulted in a tax benefit of $94,000 and $9,000, for the years ended December 31, 2013 and 2012, respectively. There was $340,000 of total unrecognized compensation cost, net of estimated forfeitures, related to non-vested options under the stock option plans at December 31, 2013. That cost is expected to be recognized over a weighted average period of 7 months at December 31, 2013. | |||||||||||||||||||||||
The following table provides information regarding the Company’s stock-based compensation expense associated with stock options and grants: | |||||||||||||||||||||||
For the years ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||
Director fees | $ | 145 | $ | 149 | |||||||||||||||||||
Stock option expense | 312 | 27 | |||||||||||||||||||||
Total stock-based compensation expense | $ | 457 | $ | 176 | |||||||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INCOME TAXES [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
NOTE 13 — INCOME TAXES | |||||||||
The components of income tax expense are summarized as follows: | |||||||||
For the years ended December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Federal | |||||||||
Current | $ | 1,822 | $ | 524 | |||||
Deferred | (75 | ) | 1,194 | ||||||
1,747 | 1,718 | ||||||||
State and local – current | 210 | 7 | |||||||
Income tax provision | $ | 1,957 | $ | 1,725 | |||||
The Company’s effective income tax rate was different than the statutory federal income tax rate as follows: | |||||||||
For the years ended December 31, | |||||||||
2013 | 2012 | ||||||||
Statutory federal income tax | 34 | % | 34 | % | |||||
(Decrease) increase resulting from | |||||||||
Tax-exempt income | (8.1 | ) | (10.3 | ) | |||||
State tax, net of federal benefit | 1.6 | 0.1 | |||||||
Other | (4.6 | ) | 0.5 | ||||||
22.9 | % | 24.3 | % | ||||||
Deferred taxes are included as other liabilities in the accompanying Consolidated Balance Sheets at December 31, 2013 and 2012, for the estimated future tax effects of differences between the financial statement and federal income tax bases of assets and liabilities according to the provisions of currently enacted tax laws. No valuation allowance was established at December 31, 2013 and 2012, in view of the Company’s ability to carry back to taxes paid in previous years and certain tax strategies, coupled with the anticipated future taxable income as evidenced by the Company’s earnings potential. | |||||||||
The Company’s net deferred tax liability was as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Deferred tax assets | |||||||||
Deferred compensation | $ | 484 | $ | 138 | |||||
Allowance for loan losses, net | 2,236 | 2,353 | |||||||
Stock compensation | 147 | 78 | |||||||
Adjustment to record funded status of pension plan | 697 | 1,462 | |||||||
Nonaccrual interest | 209 | 333 | |||||||
Adjustment for real estate acquired thru foreclosure | — | 20 | |||||||
Acquisition related | 355 | — | |||||||
Net operating loss carryforward acquired | 327 | — | |||||||
Other | 18 | 5 | |||||||
$ | 4,473 | $ | 4,389 | ||||||
Deferred tax liabilities | |||||||||
Accrued pension expense | $ | 1,721 | $ | 1,704 | |||||
Unrealized gain on securities available for sale | 90 | 1,960 | |||||||
Prepaid expenses | 51 | 151 | |||||||
Deferred loan costs | 1,123 | 1,172 | |||||||
Amortization of goodwill | 1,470 | 1,470 | |||||||
Fixed assets | 580 | 296 | |||||||
5,035 | 6,753 | ||||||||
Net deferred tax liability | $ | (562 | ) | $ | (2,364 | ) | |||
The Company files consolidated income tax returns on the basis of a calendar year. The Company is subject to income taxes in the U.S. federal jurisdiction, and various state and local jurisdictions, with the majority of activity occurring in Pennsylvania. The statute of limitations for the federal return has expired on years prior to 2010. The expirations of the statutes of limitations related to the various state income tax returns that the Company and its subsidiaries file, vary by state, and are expected to expire over the term of 2014 through 2018. There are no material uncertain tax positions at December 31, 2013. | |||||||||
The Bank is not required to recapture approximately $5.7 million of its tax bad debt reserve, attributable to bad debt deductions taken by it prior to 1988, as long as the Bank continues to operate as a bank under federal tax law and does not use the reserve for any other purpose. The Bank has not recorded any deferred tax liability on this portion of its tax bad debt reserve. The tax that would be paid were the Bank ultimately required to recapture that portion of the reserve would amount to approximately $1.9 million. |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | ' | ||||||||||||||||||||||||
REGULATORY MATTERS | ' | ||||||||||||||||||||||||
NOTE 14 — REGULATORY MATTERS | |||||||||||||||||||||||||
The Bank is subject to various regulatory capital requirements administered by the FDIC and the Pennsylvania Department of Banking. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||||||||||
The Bank’s actual capital amounts and ratios are presented in the following table: | |||||||||||||||||||||||||
Actual | For capital adequacy purposes | To be well capitalized under prompt corrective action provision | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Tangible capital (to tangible assets) | $ | 86,550 | 10.35 | % | $ | 12,544 | 1.5 | % | $ | — | N/ | A | |||||||||||||
Core capital (to adjusted tangible assets) | 86,550 | 10.35 | % | 33,450 | 4 | % | 41,812 | 5 | % | ||||||||||||||||
Tier 1 capital (to risk weighted assets) | 86,550 | 16.23 | % | 21,334 | 4 | % | 32,001 | 6 | % | ||||||||||||||||
Total Risk | 93,125 | 17.46 | % | 42,668 | 8 | % | 53,336 | 10 | % | ||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Tangible capital (to tangible assets) | 73,612 | 10.45 | % | 10,562 | 1.5 | % | — | N/ | A | ||||||||||||||||
Core capital (to adjusted tangible assets) | 73,612 | 10.45 | % | 28,164 | 4 | % | 35,206 | 5 | % | ||||||||||||||||
Tier 1 capital (to risk weighted assets) | 73,612 | 16.63 | % | 17,703 | 4 | % | 26,555 | 6 | % | ||||||||||||||||
Total Risk | 79,161 | 17.89 | % | 35,407 | 8 | % | 44,259 | 10 | % | ||||||||||||||||
At December 31, 2013 and 2012, the Bank exceeded all regulatory requirements for classification as a “well-capitalized” institution. A “well-capitalized” institution must have risk-based capital of 10% and core capital of 5%. There are no conditions or events that have occurred that management believes have changed the Bank’s classification as a “well-capitalized” institution. | |||||||||||||||||||||||||
The Bank maintains a liquidation account for the benefit of eligible savings account holders who maintained deposit accounts in the Bank at the time the Bank converted to a stock form of ownership and who continue as depositors. The Bank may not declare or pay a cash dividend on or repurchase any of its common shares if the effect thereof would cause the Bank’s stockholders’ equity to be reduced below either the amount required for the liquidation account or the regulatory capital requirements for insured institutions. |
FINANCIAL_INSTRUMENTS_WITH_OFF
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
FINANCIAL INSTRUMENTS WITH OFF BALANCE SHEET RISK [Abstract] | ' | ||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | ' | ||||||||
NOTE 15 — FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | |||||||||
The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are primarily commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Balance Sheets when they become receivable or payable. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The contract or notional amounts of those instruments reflect the extent of the Bank’s involvement in particular classes of financial instruments. | |||||||||
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. | |||||||||
Unless noted otherwise, the Company requires collateral to support financial instruments with credit risk. | |||||||||
Financial instruments, the contract amounts of which represent credit risk, are as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Commitments to extend credit | $ | 77,663 | $ | 74,571 | |||||
Standby letters of credit | 856 | 780 | |||||||
Loans sold with recourse | - | 50 | |||||||
$ | 78,519 | $ | 75,401 | ||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held generally includes residential or commercial real estate. | |||||||||
Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 16 — COMMITMENTS AND CONTINGENCIES | |||||
The Bank had optional commitments of $1.7 million and $7.5 million to sell mortgage loans to investors at December 31, 2013 and 2012, respectively. | |||||
The Bank leases branch facilities and office space for periods ranging up to ten years. These leases are classified as operating leases and contain options to renew for additional periods. Rental expense was approximately $594,000 and $554,000 for the years ended December 31, 2013 and 2012, respectively. | |||||
The minimum annual rental commitments of the Bank under all noncancelable leases with terms of one year or more at December 31, 2013 are as follows: | |||||
Year ending December 31, | 2013 | ||||
(in thousands) | |||||
2014 | $ | 489 | |||
2015 | 399 | ||||
2016 | 329 | ||||
2017 | 294 | ||||
2018 | 294 | ||||
Thereafter | 888 | ||||
Total | $ | 2,693 | |||
The Company has agreements with certain key executives that provide severance pay benefits if there is a change in control of the Company. The agreements will continue in effect until terminated or not renewed by the Company or key executives. In the event that the employment of certain executives is not continued following a change in control, the Company will make a lump-sum payment and reimburse the executives for certain benefits for one year. The contingent liability under the agreements at December 31, 2013 was approximately $2.2 million. | |||||
From time to time, the Company and its subsidiaries are parties to routine litigation that arises in the normal course of business. In the opinion of management, the resolution of these lawsuits would not have a material adverse effect on the Company’s consolidated financial position or results of operations. |
SIGNIFICANT_CONCENTRATIONS_OF_
SIGNIFICANT CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2013 | |
SIGNIFICANT CONCENTRATIONS OF CREDIT RISK [Abstract] | ' |
SIGNIFICANT CONCENTRATIONS OF CREDIT RISK | ' |
NOTE 17 — SIGNIFICANT CONCENTRATIONS OF CREDIT RISK | |
The Bank is principally engaged in originating and investing in one-to four-family residential real estate and commercial real estate loans in eastern Pennsylvania and New Jersey. The Bank offers both fixed and adjustable rates of interest on these loans that have amortization terms ranging to 30 years. The loans are generally originated or purchased on the basis of an 80% or less loan-to-value ratio, which has historically provided the Bank with more than adequate collateral coverage in the event of default. Nevertheless, the Bank, as with any lending institution, is subject to the risk that real estate values in the primary lending area will deteriorate, thereby potentially impairing underlying collateral values. However, management believes that weakened residential and commercial real estate values have been taken into consideration and that the loan loss allowances have been provided for in amounts commensurate with its current perception of the foregoing risks in the portfolio. |
FAIR_VALUE_MEASUREMENTS_AND_FA
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ' | ||||||||||||||||||||
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||
NOTE 18 — FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement hierarchy has been established for inputs in valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). | |||||||||||||||||||||
The fair value hierarchy levels are summarized below: | |||||||||||||||||||||
· Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. | |||||||||||||||||||||
· Level 2 inputs are inputs that are observable for the asset or liability, either directly or indirectly. | |||||||||||||||||||||
· Level 3 inputs are unobservable and contain assumptions of the party fair valuing the asset or liability. | |||||||||||||||||||||
Determination of the appropriate level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement for the instrument or security. Assets and liabilities measured at fair value on a recurring basis segregated by fair value hierarchy level are summarized below: | |||||||||||||||||||||
Balance as of | |||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||
U.S. Government and federal agencies | $ | — | $ | 18,063 | $ | — | $ | 18,063 | |||||||||||||
State and political subdivisions | — | 60,669 | — | 60,669 | |||||||||||||||||
Residential mortgage-backed securities issued by quasi- governmental agencies | — | 45,280 | — | 45,280 | |||||||||||||||||
Total investment securities available for sale | $ | — | $ | 124,012 | $ | — | $ | 124,012 | |||||||||||||
Loans receivable, held for sale | $ | — | $ | 349 | $ | — | $ | 349 | |||||||||||||
Balance as of | |||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||
State and political subdivisions | $ | — | $ | 59,610 | $ | — | $ | 59,610 | |||||||||||||
Residential mortgage-backed securities issued by quasi- governmental agencies | — | 42,674 | — | 42,674 | |||||||||||||||||
Total investment securities available for sale | $ | — | $ | 102,284 | $ | — | $ | 102,284 | |||||||||||||
Loans receivable, held for sale | $ | — | $ | 706 | $ | — | $ | 706 | |||||||||||||
Investment and mortgage-backed securities available for sale are valued primarily by a third party pricing agent. U.S. Government and federal agency securities are primarily priced through a multidimensional relational model, a Level 2 hierarchy, which incorporates dealer quotes and other market information including, defined sector breakdown, benchmark yields, base spread, yield to maturity, and corporate actions. State and political subdivision securities are also valued within the Level 2 hierarchy using inputs with a series of matrices that reflect benchmark yields, ratings updates, and spread adjustments. Mortgage-backed securities include FHLMC, GNMA, and FNMA certificates and privately issued real estate mortgage investment conduits which are valued under a Level 2 hierarchy using a matrix correlation to benchmark yields, spread analysis, and prepayment speeds. | |||||||||||||||||||||
Values for loans held for sale utilize active pricing quotes which exist in the secondary market and are therefore deemed a Level 2 hierarchy. | |||||||||||||||||||||
Assets and liabilities measured at fair value on a nonrecurring basis segregated by fair value hierarchy level at December 31, 2013 are summarized below: | |||||||||||||||||||||
Balance as of | |||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 5,178 | $ | 5,178 | |||||||||||||
Real estate acquired through foreclosure | — | — | 5,601 | 5,601 | |||||||||||||||||
Mortgage servicing rights | — | 1,472 | — | 1,472 | |||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Bank has utilized Level 3 inputs to determine fair value at December 31, 2013: | |||||||||||||||||||||
Fair value | Valuation | Unobservable | Range of | ||||||||||||||||||
Description | estimate | technique | Input | inputs | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans | $ | 5,178 | Appraisal of collateral (1) | Discount rate to reflect current market conditions and ultimate recoverability | 5%-15 | % | |||||||||||||||
Real estate acquired through foreclosure | 5,601 | Appraisal of collateral (1) | Discount rate to reflect current market conditions and liquidation expenses | 5%-20 | % | ||||||||||||||||
-1 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | ||||||||||||||||||||
Assets and liabilities measured at fair value on a nonrecurring basis segregated by fair value hierarchy level at December 31, 2012 are summarized below: | |||||||||||||||||||||
Balance as of | |||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 6,533 | $ | 6,533 | |||||||||||||
Real estate acquired through foreclosure | — | — | 7,282 | 7,282 | |||||||||||||||||
Mortgage servicing rights | — | 956 | — | 956 | |||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Bank has utilized Level 3 inputs to determine fair value at December 31, 2012: | |||||||||||||||||||||
Fair value | Valuation | Unobservable | Range of | ||||||||||||||||||
Description | estimate | technique | Input | inputs | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans | $ | 6,533 | Appraisal of collateral (1) | Discount rate to reflect current market conditions and ultimate recoverability | 5%-15 | % | |||||||||||||||
Real estate acquired through foreclosure | 7,282 | Appraisal of collateral (1) | Discount rate to reflect current market conditions and liquidation expenses | 5%-20 | % | ||||||||||||||||
-1 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | ||||||||||||||||||||
The fair value of impaired loans is generally determined through independent appraisals of the underlying collateral, which generally include Level 3 inputs that are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. Impaired loans are evaluated and valued while the loan is identified as impaired, at the lower of the recorded investment in the loan or fair value. The range and weighted average of liquidation expenses are presented as a percent of the appraised value. The significant unobservable inputs used in the fair value measurements of the Company’s impaired loans using discounted cash flow valuation technique include temporary changes in payment amounts and the probability of default. Significant increases (decreases) in payment amounts would result in significantly higher (lower) fair value measurements. The probability of default is 0% for impaired loans using the discounted cash flow valuation technique because all defaulted impaired loans are valued using the appraisal of collateral valuation technique. | |||||||||||||||||||||
Real estate acquired through foreclosure is initially valued at the lower of the recorded investment in the loan or fair value at foreclosure and subsequently adjusted for further decreases in market value, if necessary. Fair value is determined by using the value of the real estate acquired through foreclosure based on appraisals prepared by qualified independent licensed appraisers contracted by the Company to perform the assessment and is therefore classified as a Level 3 hierarchy. | |||||||||||||||||||||
The Company retains a qualified valuation service to calculate the amortized cost and to determine the fair value of the mortgage servicing rights. The valuation service utilizes discounted cash flow analyses adjusted for prepayment speeds, market discount rates and conditions existing in the secondary servicing market. Hence, the fair value of mortgage servicing rights is deemed a Level 2 hierarchy. The amortized cost basis of the Company’s mortgage servicing rights was $1.5 million and $1.3 million at December 31, 2013 and 2012, respectively. The fair value of the mortgage servicing rights was $1.5 million and $956,000 at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
In addition to financial instruments recorded at fair value in the Company’s financial statements, disclosure of the estimated fair value of all of an entity’s assets and liabilities considered to be financial instruments is also required. For the Bank, as for most financial institutions, the majority of its assets and liabilities are considered financial instruments. However, many such instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. Also, it is the Company’s general practice and intent to hold its financial instruments to maturity and to not engage in trading or significant sales activities. For fair value disclosure purposes, the Company substantially utilized the established fair value measurement hierarchy. | |||||||||||||||||||||
Changes in the assumptions or methodologies used to estimate fair values may materially affect the estimated amounts. In addition, there may not be reasonable comparability between institutions due to the wide range of permitted assumptions and methodologies in the absence of active markets. This lack of uniformity gives rise to a high degree of subjectivity in estimating financial instrument fair values. | |||||||||||||||||||||
Fair values have been estimated using data which management considered the best available, as generally provided by estimation methodologies deemed suitable for the pertinent category of financial instrument. The recorded carrying amounts and fair values segregated by fair value hierarchy level at December 31, 2013 are summarized below: | |||||||||||||||||||||
Carrying | Fair | Fair value hierarchy levels | |||||||||||||||||||
value | value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | (in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 45,310 | $ | 45,310 | $ | 45,310 | $ | — | $ | — | |||||||||||
Investment securities | 78,732 | 78,732 | — | 78,732 | — | ||||||||||||||||
Mortgage-backed securities | 46,770 | 46,960 | — | 46,960 | — | ||||||||||||||||
Loans receivable, net | 614,517 | 614,246 | — | 349 | 613,897 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits with stated maturities | $ | 190,492 | $ | 193,258 | $ | — | $ | — | $ | 193,258 | |||||||||||
Deposits with no stated maturities | 493,410 | 493,410 | 493,410 | — | — | ||||||||||||||||
Borrowings with stated maturities | 49,605 | 48,426 | — | — | 48,426 | ||||||||||||||||
The recorded carrying amounts and fair values at December 31, 2012 are summarized below: | |||||||||||||||||||||
Carrying | Fair | Fair value hierarchy levels | |||||||||||||||||||
value | value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | (in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 31,137 | $ | 31,137 | $ | 31,137 | $ | — | $ | — | |||||||||||
Investment securities | 59,610 | 59,610 | — | 59,610 | — | ||||||||||||||||
Mortgage-backed securities | 44,639 | 44,945 | — | 44,945 | — | ||||||||||||||||
Loans receivable, net | 527,426 | 539,665 | — | 706 | 538,959 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits with stated maturities | $ | 171,417 | $ | 175,025 | $ | — | $ | — | $ | 175,025 | |||||||||||
Deposits with no stated maturities | 388,898 | 388,898 | 388,898 | — | — | ||||||||||||||||
Borrowings with stated maturities | 60,656 | 60,939 | — | — | 60,939 | ||||||||||||||||
The fair value of cash and cash equivalents equals historical book value. The fair value of investment and mortgage-backed securities is described and presented under fair value measurement guidelines as discussed earlier. | |||||||||||||||||||||
The fair value of loans receivable has been estimated using the present value of cash flows, discounted at the approximate current market rates, and giving consideration to estimated prepayment risk. Loans receivable also includes loans receivable held for sale. | |||||||||||||||||||||
The fair value of deposits and borrowings with stated maturities has been estimated using the present value of cash flows, discounted at rates approximating current market rates for similar liabilities. Fair value of deposits and borrowings with floating interest rates is generally presumed to approximate the recorded carrying amounts. | |||||||||||||||||||||
The fair value of deposits with no stated maturities is generally presumed to approximate the carrying amount (the amount payable on demand). The fair value of deposits with floating interest rates is generally presumed to approximate the recorded carrying amounts. | |||||||||||||||||||||
The Bank’s remaining assets and liabilities are not considered financial instruments. No disclosure of the relationship value of the Bank’s depositors or customers is required. |
SERVICE_FEES_CHARGES_AND_OTHER
SERVICE FEES, CHARGES AND OTHER OPERATING INCOME AND OTHER OPERATING EXPENSE | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
SERVICE FEES, CHARGES AND OTHER OPERATING INCOME AND OTHER OPERATING EXPENSE [Abstract] | ' | ||||||||
SERVICE FEES, CHARGES AND OTHER OPERATING INCOME AND OTHER OPERATING EXPENSE | ' | ||||||||
NOTE 19 — SERVICE FEES, CHARGES AND OTHER OPERATING INCOME AND OTHER OPERATING EXPENSE | |||||||||
For the years ended December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Service fees, charges and other operating income | |||||||||
Loan servicing fees, net | $ | 481 | $ | 139 | |||||
Late charge income | 124 | 117 | |||||||
Deposit service charges | 820 | 581 | |||||||
Debit card income | 623 | 539 | |||||||
Other income | 300 | 395 | |||||||
$ | 2,348 | $ | 1,771 | ||||||
Other operating expense | |||||||||
Insurance and surety bond | $ | 193 | $ | 178 | |||||
Office supplies | 219 | 184 | |||||||
Loan expense | 309 | 228 | |||||||
Debit card and ATM expense | 307 | 272 | |||||||
Postage | 260 | 246 | |||||||
Telephone | 312 | 288 | |||||||
Supervisory examination fees | 65 | 73 | |||||||
Conversion costs | 1,417 | - | |||||||
Other expenses | 683 | 578 | |||||||
$ | 3,765 | $ | 2,047 |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
NOTE 20 — EARNINGS PER SHARE | |||||||||||||
The following tables set forth the reconciliation of the numerators and denominators of the basic and diluted earnings per share computations: | |||||||||||||
For the years ended December 31, 2013 | |||||||||||||
Weighted | |||||||||||||
average | |||||||||||||
Income | shares | Per share | |||||||||||
(numerator) | (denominator) | Amount | |||||||||||
(dollars in thousands, except share data) | |||||||||||||
Basic earnings per share | |||||||||||||
Income available to common stockholders | $ | 6,575 | 2,899,025 | $ | 2.27 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock compensation plans | — | 3,907 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Income available to common stockholders plus effect of dilutive securities | $ | 6,575 | 2,902,932 | $ | 2.27 | ||||||||
There were options to purchase 22,466 shares of common stock with exercise prices ranging from $25.71 to $32.51 per share which were outstanding during 2013 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 the common shares. | |||||||||||||
For the years ended December 31, 2012 | |||||||||||||
Weighted | |||||||||||||
average | |||||||||||||
Income | shares | Per share | |||||||||||
(numerator) | (denominator) | Amount | |||||||||||
(dollars in thousands, except share data) | |||||||||||||
Basic earnings per share | |||||||||||||
Income available to common stockholders | $ | 5,383 | 2,726,133 | $ | 1.97 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock compensation plans | — | 3,629 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Income available to common stockholders plus effect of dilutive securities | $ | 5,383 | 2,729,762 | $ | 1.97 | ||||||||
There were options to purchase 42,462 shares of common stock with exercise prices ranging from $23.53 to $32.51 per share which were outstanding during 2012 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 the common shares. |
CONDENSED_FINANCIAL_INFORMATIO
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY [Abstract] | ' | ||||||||
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY | ' | ||||||||
NOTE 21 — CONDENSED FINANCIAL INFORMATION – PARENT COMPANY ONLY | |||||||||
Condensed financial information for TF Financial Corporation (parent company only) follows: | |||||||||
BALANCE SHEETS | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
ASSETS | |||||||||
Cash | $ | 2,220 | $ | 2,031 | |||||
Investment in 3rd Fed | 89,501 | 78,032 | |||||||
Investment in Penns Trail Development | 1,065 | 1,077 | |||||||
Notes receivable ESOP | 1,161 | 1,208 | |||||||
Other assets | 964 | 723 | |||||||
Total assets | $ | 94,911 | $ | 83,071 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Total liabilities | $ | 36 | $ | 126 | |||||
Stockholders’ equity | 94,875 | 82,945 | |||||||
Total liabilities and stockholders’ equity | $ | 94,911 | $ | 83,071 | |||||
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||
For the years ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
INCOME | |||||||||
Equity in earnings of subsidiaries | $ | 7,929 | $ | 5,963 | |||||
Interest and dividend income | 18 | 22 | |||||||
Total income | 7,947 | 5,985 | |||||||
EXPENSES | |||||||||
Other | 1,372 | 602 | |||||||
Total expenses | 1,372 | 602 | |||||||
NET INCOME | 6,575 | 5,383 | |||||||
Total other comprehensive income (loss) (1) | (2,148 | ) | 224 | ||||||
Total comprehensive income | $ | 4,427 | $ | 5,607 | |||||
-1 | See Consolidated Statements of Comprehensive Income for other comprehensive income detail. | ||||||||
STATEMENTS OF CASH FLOWS | |||||||||
For the years ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Cash flows from operating activities | |||||||||
Net income | $ | 6,575 | $ | 5,383 | |||||
Adjustments to reconcile net income to net cash used in operating activities | |||||||||
Stock compensation plans | 457 | 176 | |||||||
Equity in earnings of subsidiaries | (7,929 | ) | (5,963 | ) | |||||
Net change in assets and liabilities | (180 | ) | (16 | ) | |||||
Net cash used in operating activities | (1,077 | ) | (420 | ) | |||||
Cash flows from investing activities | |||||||||
Capital distribution from subsidiaries | 7,800 | 1,600 | |||||||
Acquisition net of cash acquired | (5,568 | ) | — | ||||||
Net cash provided by investing activities | 2,232 | 1,600 | |||||||
Cash flows from financing activities | |||||||||
Common stock dividends paid | (884 | ) | (543 | ) | |||||
Treasury stock acquired | (274 | ) | — | ||||||
Exercise of stock options | 216 | 7 | |||||||
Deferred tax adjustment arising from stock compensation | (24 | ) | (27 | ) | |||||
Net cash used in financing activities | (966 | ) | (563 | ) | |||||
NET INCREASE IN CASH | 189 | 617 | |||||||
Cash at beginning of year | 2,031 | 1,414 | |||||||
Cash at end of year | $ | 2,220 | $ | 2,031 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||
Principles of Consolidation and Basis of Presentation | ' | ||||
a. Principles of Consolidation and Basis of Presentation | |||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries: Penns Trail Development Corporation and 3rd Fed, including 3rd Fed’s wholly owned subsidiaries, Third Delaware Corporation and Teragon Financial Corporation (collectively, the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. | |||||
The accounting policies of the Company conform to accounting principles generally accepted in the United States of America (“US GAAP”) and predominant practices within the banking industry. The preparation of financial statements in conformity with US GAAP requires management to make 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. The more significant accounting policies are summarized below. | |||||
Business Combinations | ' | ||||
b. Business Combinations | |||||
At the date of acquisition the Company records the net assets of acquired companies on the Consolidated Balance Sheet at their estimated fair value, and a gain is recognized for the excess of the estimated fair value over the purchase price of acquired net assets. The results of operations for acquired companies are included in the Company’s Consolidated Statements of Income beginning at the acquisition date. Expenses arising from acquisition activities are recorded in the Consolidated Statements of Income during the period incurred. | |||||
Cash and Cash Equivalents | ' | ||||
c. Cash and Cash Equivalents | |||||
The Company considers cash, due from banks, and interest-bearing deposits in other financial institutions, with original terms to maturity of less than three months, as cash equivalents for presentation purposes in the Consolidated Balance Sheets and Cash Flows. The Company is required to maintain certain cash reserves relating to deposit liabilities. This requirement is ordinarily satisfied by cash on hand. | |||||
Investment and Mortgage-Backed Securities | ' | ||||
d. Investment and Mortgage-Backed Securities | |||||
The Company classifies its investment and mortgage-backed securities in one of three categories: held to maturity, trading, or available for sale. The Company does not presently engage in security trading activities. | |||||
Investment and mortgage-backed securities available for sale are stated at fair value, with net unrealized gains and losses excluded from income and reported in other comprehensive income (loss). See Note 18 - Fair Value Measurements and Fair Value of Financial Instruments which defines the basis for determining fair value. Realized gains and losses on the sale of securities are recognized using the specific identification method. | |||||
Mortgage-backed securities held to maturity are carried at cost, net of unamortized premiums and discounts, which are recognized in interest income using the interest method. | |||||
On a quarterly basis, temporarily impaired securities are evaluated to determine whether such impairment is other-than-temporary impairment (“OTTI”). This evaluation involves consideration of the length of time and the amount by which the fair value has been lower than amortized cost, the financial condition and credit rating of the issuer, the changes in fair value in relation to the change in market interest rates and other relevant information. In addition, with respect to mortgage-backed securities issued by government and quasi-governmental agencies (i.e. Government National Mortgage Association (“GNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”)), the Company considers the ultimate payment of principal and interest as an obligation of the United States Government and thus assured. The Company also evaluates its intent to hold, intent to sell or need to sell the securities in light of its investment strategy, cash flow needs, interest rate risk position, prospects for the issuer and all other relevant factors. | |||||
Loans Receivable, net | ' | ||||
e. Loans Receivable, net | |||||
Loans receivable that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are stated at unpaid principal balances less the allowance for loan losses, and net of deferred loan origination fees and direct origination costs as well as unamortized fair value adjustments on acquired loans. Loan origination fees, costs and adjustments on loans are amortized to income using the interest method over the remaining period to contractual maturity, adjusted for actual prepayments. | |||||
The Bank provides valuation allowances for estimated losses from uncollectible loans. The allowance is increased by provisions charged to expense and reduced by net charge-offs. On a quarterly basis, the Bank prepares an allowance for loan losses (“ALLL”) analysis. In the analysis, the loan portfolio is segmented into groups of homogeneous loans that share similar risk characteristics: owner and non-owner occupied commercial, multi-family real estate, construction, commercial and industrial, one-to four-family residential, and consumer which is predominately real estate secured junior liens and home equity lines of credit as well as other consumer loans. Each segment is assigned reserve factors based on quantitative and qualitative measurements. In addition, the Bank reviews its internally classified loans, its loans classified for regulatory purposes, delinquent loans, and other relevant information in order to isolate loans for further scrutiny as potentially impaired loans. | |||||
Quantitative factors include an actual expected loss factor based on historical loss experience over a relevant look-back period. Quantitative factors also include the Bank’s actual risk ratings for the commercial loan segments as determined in accordance with loan review and loan grading policies and procedures, and additional factors as determined by management to be representative of additional risk due to the loan’s geographic location, type, and other attributes. These quantitative factors are adjusted if necessary, up or down, based on actual experience and an evaluation of qualitative factors. | |||||
Qualitative factors are based upon: (1) changes in lending policies and procedures, including but not limited to changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; (2) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; (3) changes in the nature and volume of the portfolio and in the terms of loans; (4) changes in the experience, ability, and depth of lending management and other relevant staff; (5) changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans; (6) changes in the quality of the loan review system; (7) changes in the value of underlying collateral for collateral dependent loans; (8) the existence and effect of any concentration of credit, and changes in the level of such concentrations; and (9) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio. | |||||
Potentially impaired loans selected for individual evaluation are reviewed in accordance with US GAAP ASC 310-10, Accounting by Creditors for Impairment of a Loan, which governs the accounting for impaired assets and consideration of regulatory guidance regarding treatment of troubled, collateral dependent loans. Each potentially impaired loan is evaluated using all available information such as recent appraisals, whether the loan is currently on accrual or nonaccrual status, discounted cash flow analyses, guarantor financial strength, the value of additional collateral, and the loan’s and borrower’s past performance to determine whether in management’s best judgment it is probable that the Bank will be unable to collect all contractual interest and principal in accordance with the loan’s terms. Loans deemed impaired are generally assigned a reserve derived from the value of the underlying collateral. Loans deemed not to be impaired are assigned a reserve factor based upon the class from which they were selected. | |||||
The ALLL needed as a result of the foregoing evaluations is compared with the unadjusted amount, and an adjustment is made by means of a provision charged to expense for loan losses. Recognizing the inherently imprecise nature of the loss estimates and the large number of assumptions needed in order to perform the analysis, there may be an unallocated portion of the ALLL. Management adjusts the unallocated portion to an amount which management considers reasonable under the circumstances. | |||||
The Bank provides an allowance for accrued but uncollected interest when a loan becomes more than ninety days past due or is identified as impaired. The allowance is established by a charge to interest income equal to all interest previously accrued, and income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is no longer impaired, in which case the loan is returned to accrual status. | |||||
Loans Receivable, Held for Sale | ' | ||||
f. Loans Receivable, Held for Sale | |||||
Mortgage loans originated and intended for sale in the secondary market are carried at fair value on an individual basis. Any resulting gain or loss is included in other operating income. | |||||
Troubled Debt Restructurings | ' | ||||
g. Troubled Debt Restructurings | |||||
Loans whose terms are modified are classified as troubled debt restructurings (“TDRs”) if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR may include extending the maturity date of the loan, reducing the interest rate on the loan to a rate which is below market, a combination of rate adjustments and maturity extensions, or by other means including covenant modifications, forbearances or other concessions. Interest income is not accrued on loans that had been placed on nonaccrual prior to the restructuring until they have performed in accordance with their restructured terms for a period of at least six months. The Company evaluates the ALLL needed with respect to TDRs under the same policy and guidelines as all other loans, and TDRs are evaluated individually for impairment. | |||||
Transfers of Financial Assets | ' | ||||
h. Transfers of Financial Assets | |||||
The Company accounts for the transfers of financial assets using the financial–components approach. This approach recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered and derecognizes liabilities when extinguished. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||
Mortgage servicing rights (“MSRs”) are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. Under the applicable accounting guidance regarding servicing assets and liabilities, servicing rights resulting from the sale of loans originated by the Company are initially measured at fair value at the date of transfer. Fair value is based on market prices for comparable mortgage servicing rights, when available, or alternatively is based on a valuation model that calculates the present value of estimated future net servicing income. The Company subsequently recognizes mortgage servicing expense for each class of servicing assets using the amortization method. MSRs are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance charged to servicing fee income for an individual tranche, to the extent that fair value is less than the amortized cost for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to other operating income. These servicing rights are included in other assets in the Consolidated Balance Sheets and are discussed in Note 18 - Fair Value Measurements and Fair Value of Financial Instruments. | |||||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan, and are recorded as income when earned. The amortization of loan servicing rights is recorded as a reduction of service fee income. | |||||
Premises and Equipment | ' | ||||
i. Premises and Equipment | |||||
Land is carried at cost. Buildings and furniture, fixtures and equipment are carried at cost less accumulated depreciation. Depreciation is provided by the straight-line method over the estimated useful lives of the assets. The Company records any impairment of long-lived assets to be held and used or to be disposed of by sale. The Company had no impaired long-lived assets at December 31, 2013 and 2012. | |||||
Foreclosed Real Estate | ' | ||||
j. Foreclosed Real Estate | |||||
Real estate acquired through, or in lieu of, loan foreclosure is carried at the fair value of the property, based on an appraisal less estimated cost to sell. Revenue and expenses from operations and changes in the fair value are included in foreclosed real estate expense. Included in other assets is foreclosed real estate of $5.6 million and $7.3 million at December 31, 2013 and 2012, respectively. | |||||
Goodwill | ' | ||||
k. Goodwill | |||||
Goodwill does not require amortization but is subject to impairment testing. Goodwill impairment testing allows entities to first assess qualitative factors and circumstance to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. At December 31, 2013, the Company performed an assessment of key factors and determined that impairment of goodwill was not likely. | |||||
Core Deposit Intangible | ' | ||||
l. Core Deposit Intangible | |||||
The Company recorded a core deposit intangible of $553,000 in conjunction with the acquisition of Roebling discussed in Note 3 – Acquisition of Roebling Financial Corp, Inc. | |||||
Bank Owned Life Insurance | ' | ||||
m. Bank Owned Life Insurance | |||||
The Company maintains life insurance policies on the lives of current and former executives and officers. The Company is the owner and beneficiary of the policies. The cash surrender values of the policies were approximately $18.6 million and $19.1 million at December 31, 2013 and 2012, respectively. | |||||
Benefit Plans | ' | ||||
n. Benefit Plans | |||||
The Company has established an ESOP covering eligible employees with six months of service, as defined by the ESOP. The Company records compensation expense in the amount equal to the fair value of shares committed to be released from the ESOP to employees less dividends received on the allocated shares applied to the required debt service of the plan. | |||||
The Company has a defined benefit pension plan covering substantially all full-time employees meeting certain requirements. The Company recognizes the overfunded or underfunded status of the defined benefit postretirement plan as an asset or liability in its Consolidated Balance Sheets and recognizes changes in that funded status, including the gains and or losses and prior service costs or credits that were not recognized as components of net periodic benefit cost, in the year in which the changes occur through accumulated other comprehensive income. The Company measures the funded status of the plan as of the date of its year-end Consolidated Balance Sheet. | |||||
Stock-Based Compensation | ' | ||||
o. Stock-Based Compensation | |||||
The Company has stock benefit plans that allow the Company to grant options and stock to employees and directors and which are more fully discussed in Note 12 - Benefit Plans. The options, may have terms of up to 7 years when issued, vest over a two to five year period. The exercise price of each option equals the market price of the Company’s stock on the date of the grant. The Company measures compensation cost at the grant date based on the fair value of the award. Compensation is then recognized over the service period which is usually the vesting period. The fair value of each option grant during 2013 was estimated on the date of grant using the Black‑Scholes option‑pricing model with the following weighted average assumptions: | |||||
Weighted average assumptions | |||||
Dividend yield | 0.81 | % | |||
Expected volatility | 16.82 | % | |||
Risk-free interest rate | 0.65 | % | |||
Fair value of options granted during the period | $ | 3.12 | |||
Expected lives in years | 5 | ||||
There were no options granted in 2012. | |||||
Income Taxes | ' | ||||
p. Income Taxes | |||||
The Company accounts for income taxes under the liability method whereby deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes due to change in tax rates is recognized in income in the period that includes the enactment date. | |||||
Advertising Costs | ' | ||||
q. Advertising Costs | |||||
The Company expenses marketing and advertising costs as incurred. | |||||
Earnings Per Share | ' | ||||
r. Earnings Per Share | |||||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. | |||||
Segment Reporting | ' | ||||
s. Segment Reporting | |||||
The Company has one reportable segment, “Community Banking.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, commercial lending is dependent upon the ability of the Bank to fund itself with retail deposits and other borrowings and to manage interest rate and credit risk. This situation is also similar for consumer and residential mortgage lending. Accordingly, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. | |||||
Fair Value of Financial Instruments | ' | ||||
t. Fair Value of Financial Instruments | |||||
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 18 - Fair Value Measurements and Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||
Estimated on the date of grant using the Black Scholes option pricing model with the following weighted average assumptions | ' | ||||
The fair value of each option grant during 2013 was estimated on the date of grant using the Black‑Scholes option‑pricing model with the following weighted average assumptions: | |||||
Weighted average assumptions | |||||
Dividend yield | 0.81 | % | |||
Expected volatility | 16.82 | % | |||
Risk-free interest rate | 0.65 | % | |||
Fair value of options granted during the period | $ | 3.12 | |||
Expected lives in years | 5 |
ACQUISITION_OF_ROEBLING_FINANC1
ACQUISITION OF ROEBLING FINANCIAL CORP, INC. (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
ACQUISITION OF ROEBLING FINANCIAL CORP, INC. [Abstract] | ' | ||||||||||||
Summary of purchase consideration | ' | ||||||||||||
The following table summarizes the purchase of Roebling as of July 2, 2013: | |||||||||||||
At July 2, 2013 | |||||||||||||
(in thousands, except shares and per share data) | |||||||||||||
Purchase Price Consideration in Common Stock | |||||||||||||
Roebling common shares settled for stock | 843,058 | ||||||||||||
Exchange Ratio | 0.364 | ||||||||||||
TF Financial Corporation shares issued | 306,873 | ||||||||||||
Value assigned to TF Financial Corporation common share | $ | 25 | |||||||||||
Purchase price assigned to Roebling common shares exchanged for TF Financial common shares | $ | 7,672 | |||||||||||
Purchase Price Consideration - Cash for Common Stock | |||||||||||||
Roebling shares exchanged for cash | 843,478 | ||||||||||||
Purchase price paid to each Roebling common share exchanged for cash | $ | 8.6 | |||||||||||
Purchase price assigned to Roebling common shares exchanged for cash | 7,254 | ||||||||||||
Total Purchase Price | 14,926 | ||||||||||||
Net Assets Acquired: | |||||||||||||
Roebling shareholders’ equity | $ | 16,461 | |||||||||||
Adjustments to reflect assets acquired at fair value: | |||||||||||||
Investments | 2 | ||||||||||||
Loans | |||||||||||||
Interest rate | 932 | ||||||||||||
General credit | (1,069 | ) | |||||||||||
Specific credit - non-amortizing | (325 | ) | |||||||||||
Specific credit - amortizing | (198 | ) | |||||||||||
Eliminate allowance for loan losses | 1,214 | ||||||||||||
Core deposit intangible | 553 | ||||||||||||
Owned premises | (976 | ) | |||||||||||
Leased premises contracts | 33 | ||||||||||||
Deferred tax assets | (276 | ) | |||||||||||
Other assets | 186 | ||||||||||||
Adjustments to reflect liabilities acquired at fair value: | |||||||||||||
Time deposits | (440 | ) | |||||||||||
FHLB advances | (51 | ) | |||||||||||
16,046 | |||||||||||||
Purchase gain resulting from acquisition | $ | 1,120 | |||||||||||
Net assets as of the acquisition date | ' | ||||||||||||
The following condensed statement reflects the values assigned to Roebling’s net assets as of the acquisition date: | |||||||||||||
At July 2, 2013 | |||||||||||||
(in thousands) | |||||||||||||
Total purchase price | $ | 14,926 | |||||||||||
Net assets acquired: | |||||||||||||
Cash | $ | 4,081 | |||||||||||
Investment securities | 37,339 | ||||||||||||
Loans receivable | 102,026 | ||||||||||||
Premises and equipment | 2,154 | ||||||||||||
Core deposit intangible | 553 | ||||||||||||
Other assets | 2,531 | ||||||||||||
Time deposits | (49,061 | ) | |||||||||||
Deposits other than time deposits | (78,689 | ) | |||||||||||
Other liabilities | (4,888 | ) | |||||||||||
16,046 | |||||||||||||
Purchase gain on acquisition | $ | 1,120 | |||||||||||
Composition of the loans acquired | ' | ||||||||||||
The following table reflects the composition of the loans receivable acquired: | |||||||||||||
At July 2, 2013 | |||||||||||||
Loans acquired | Loans acquired | Total | |||||||||||
with no credit | loans with credit | ||||||||||||
quality | quality | ||||||||||||
deterioration | deterioration | ||||||||||||
(in thousands) | |||||||||||||
Residential | |||||||||||||
Residential mortgages | $ | 54,965 | $ | 21 | $ | 54,986 | |||||||
Commercial | |||||||||||||
Real estate-commercial | 13,262 | — | 13,262 | ||||||||||
Real estate-residential | 5,143 | 356 | 5,499 | ||||||||||
Real estate-multi-family | 1,595 | 331 | 1,926 | ||||||||||
Commercial and industrial loans | 308 | — | 308 | ||||||||||
Consumer | |||||||||||||
Home equity and second mortgage | 25,847 | 89 | 25,936 | ||||||||||
Other consumer | 109 | — | 109 | ||||||||||
Total | $ | 101,229 | $ | 797 | $ | 102,026 | |||||||
Estimated future amortization expense | ' | ||||||||||||
As of December 31, 2013, the remaining estimated future amortization expense for the core deposit was as follows: | |||||||||||||
At December 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||
2014 | $ | 96 | |||||||||||
2015 | 86 | ||||||||||||
2016 | 75 | ||||||||||||
2017 | 65 | ||||||||||||
2018 | 55 | ||||||||||||
2019 | 45 | ||||||||||||
2020 | 35 | ||||||||||||
2021 | 25 | ||||||||||||
2022 | 15 | ||||||||||||
2023 | 6 | ||||||||||||
$ | 503 | ||||||||||||
Schedule of proforma information | ' | ||||||||||||
Results of operations for Roebling prior to the acquisition date are not included in the Consolidated Statements of Income for the year ended December 31, 2013. The following table presents financial information regarding the former Roebling operations included in the Consolidated Statements of Income from the date of acquisition through December 31, 2013 under the column “Actual from acquisition date through December 31, 2013”. | |||||||||||||
Actual from acquisition date | |||||||||||||
through December 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||
Net interest income | $ | 2,192 | |||||||||||
Noninterest income | 210 | ||||||||||||
Net income | 291 | ||||||||||||
Proformas (Unaudited) | |||||||||||||
For the years ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands, | |||||||||||||
except per share data) | |||||||||||||
Net interest income | $ | 28,855 | $ | 29,589 | |||||||||
Noninterest income | 5,365 | 4,621 | |||||||||||
Net income | 5,463 | 5,616 | |||||||||||
Pro forma earnings per share: | |||||||||||||
Basic | $ | 1.7 | $ | 1.85 | |||||||||
Diluted | $ | 1.7 | $ | 1.85 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ||||||||||||
Activity in accumulated other comprehensive income | ' | ||||||||||||
NOTE 4 — ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||
The activity in accumulated other comprehensive (loss) income for the year ended December 31, 2013 is as follows: | |||||||||||||
Accumulated Other Comprehensive (Loss) Income (1), (2) | |||||||||||||
Unrealized gains | Defined | Total | |||||||||||
(losses) on securities | benefit | ||||||||||||
available for sale | pension plan | ||||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2012 | $ | 3,805 | $ | (2,835 | ) | $ | 970 | ||||||
Other comprehensive (loss) income before reclassifications | (3,626 | ) | 1,307 | (2,319 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (3 | ) | 174 | 171 | |||||||||
Period change | (3,629 | ) | 1,481 | (2,148 | ) | ||||||||
Balance at December 31, 2013 | $ | 176 | $ | (1,354 | ) | $ | (1,178 | ) | |||||
-1 | Amounts in parentheses indicate debits. | ||||||||||||
-2 | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 34%. | ||||||||||||
Reclassification out of accumulated other comprehensive income | ' | ||||||||||||
Amount reclassified | (1) | Affected line item in the consolidated statements of income | |||||||||||
from accumulated | |||||||||||||
other comprehensive | |||||||||||||
income (loss) | |||||||||||||
For the year ended | |||||||||||||
December 31, | |||||||||||||
2013 | |||||||||||||
(in thousands) | |||||||||||||
Investment securities available for sale (1) | |||||||||||||
Net securities gains reclassified into earnings | $ | 4 | Gain on sale of investment securities | ||||||||||
Related income tax expense | (1 | ) | Income tax expense | ||||||||||
Net effect on accumulated other income (loss) for the period | 3 | Net of tax | |||||||||||
Defined benefit pension plan (2) | |||||||||||||
Amortization of net actuarial loss and prior service cost | (264 | ) | Compensation and benefits | ||||||||||
Related income tax expense | 90 | Income tax expense | |||||||||||
Net effect on accumulated other comprehensive income for the period | (174 | ) | Net of tax | ||||||||||
Total reclassification for the period | $ | (171 | ) | Net income | |||||||||
-1 | Amounts in parentheses indicate debits. | ||||||||||||
-2 | Included in the computation of net periodic pension cost. See Note 12 – Benefit Plans for additional detail. |
CASH_AND_CASH_EQUIVALENTS_Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
CASH AND CASH EQUIVALENTS [Abstract] | ' | ||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and cash equivalents consist of the following: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Cash and due from banks | $ | 4,218 | $ | 4,697 | |||||
Interest-bearing deposits in other financial institutions | 41,092 | 26,440 | |||||||
$ | 45,310 | $ | 31,137 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | ' | ||||||||||||||||||||||||||||
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities | ' | ||||||||||||||||||||||||||||
The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities, are summarized as follows: | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||
U.S. Government and federal agencies | $ | 18,572 | $ | 4 | $ | (513 | ) | $ | 18,063 | ||||||||||||||||||||
State and political subdivisions | 60,159 | 1,526 | (1,016 | ) | 60,669 | ||||||||||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies | 45,015 | 540 | (275 | ) | 45,280 | ||||||||||||||||||||||||
Total investment securities available for sale | 123,746 | 2,070 | (1,804 | ) | 124,012 | ||||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies | 1,490 | 191 | (1 | ) | 1,680 | ||||||||||||||||||||||||
Total investment securities | $ | 125,236 | $ | 2,261 | $ | (1,805 | ) | $ | 125,692 | ||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||
State and political subdivisions | $ | 55,254 | $ | 4,360 | $ | (4 | ) | $ | 59,610 | ||||||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies | 41,265 | 1,409 | — | 42,674 | |||||||||||||||||||||||||
Total investment securities available for sale | 96,519 | 5,769 | (4 | ) | 102,284 | ||||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies | 1,965 | 306 | — | 2,271 | |||||||||||||||||||||||||
Total investment securities | $ | 98,484 | $ | 6,075 | $ | (4 | ) | $ | 104,555 | ||||||||||||||||||||
Investment Securities Maturities | ' | ||||||||||||||||||||||||||||
The amortized cost and fair value of investment securities by contractual maturity and mortgage-backed securities are shown below. | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Available for sale | Held to maturity | ||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||||||
cost | value | cost | value | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||
Due in one year or less | $ | 1,645 | $ | 1,666 | $ | — | $ | — | |||||||||||||||||||||
Due after one year through five years | 16,666 | 16,961 | — | — | |||||||||||||||||||||||||
Due after five years through ten years | 39,508 | 39,004 | — | — | |||||||||||||||||||||||||
Due after ten years | 20,912 | 21,101 | — | — | |||||||||||||||||||||||||
78,731 | 78,732 | — | — | ||||||||||||||||||||||||||
Mortgage-backed securities | 45,015 | 45,280 | 1,490 | 1,680 | |||||||||||||||||||||||||
Total investment securities | $ | 123,746 | $ | 124,012 | $ | 1,490 | $ | 1,680 | |||||||||||||||||||||
Length of Time Securities Have Been in Continuous Unrealized Loss Position | ' | ||||||||||||||||||||||||||||
The table below indicates the length of time individual securities, both held to maturity and available for sale, have been in a continuous unrealized loss position at December 31, 2013: | |||||||||||||||||||||||||||||
Less than | 12 months | Total | |||||||||||||||||||||||||||
12 months | or longer | ||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
of | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||||
Securities | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
U.S. Government and federal agencies | 13 | $ | 17,028 | $ | (513 | ) | $ | — | $ | — | $ | 17,028 | $ | (513 | ) | ||||||||||||||
State and political subdivisions | 24 | 19,646 | (1,016 | ) | — | — | 19,646 | (1,016 | ) | ||||||||||||||||||||
Residential mortgage-backed securities issued by quasi- governmental agencies | 65 | 24,508 | (276 | ) | — | — | 24,508 | (276 | ) | ||||||||||||||||||||
Total temporarily impaired securities | 102 | $ | 61,182 | $ | (1,805 | ) | $ | — | $ | — | $ | 61,182 | $ | (1,805 | ) | ||||||||||||||
The table below indicates the length of time individual securities, both held to maturity and available for sale, have been in a continuous unrealized loss position at December 31, 2012: | |||||||||||||||||||||||||||||
Less than | 12 months | Total | |||||||||||||||||||||||||||
12 months | or longer | ||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
of | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||||
Securities | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
State and political subdivisions | 1 | $ | 617 | $ | (4 | ) | $ | — | $ | — | $ | 617 | $ | (4 | ) | ||||||||||||||
Total temporarily impaired securities | 1 | $ | 617 | $ | (4 | ) | $ | — | $ | — | $ | 617 | $ | (4 | ) |
LOANS_RECEIVABLE_Tables
LOANS RECEIVABLE (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
LOANS RECEIVABLE [Abstract] | ' | ||||||||||||||||||||||||||||
Loans Receivable | ' | ||||||||||||||||||||||||||||
Loans receivable are summarized as follows: | |||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Held for investment: | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 371,961 | $ | 323,665 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 129,345 | 104,766 | |||||||||||||||||||||||||||
Real estate-residential | 20,005 | 21,570 | |||||||||||||||||||||||||||
Real estate-multi-family | 16,623 | 19,118 | |||||||||||||||||||||||||||
Construction loans | 8,773 | 16,288 | |||||||||||||||||||||||||||
Commercial and industrial loans | 6,849 | 4,646 | |||||||||||||||||||||||||||
Total commercial loans | 181,595 | 166,388 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 64,202 | 40,143 | |||||||||||||||||||||||||||
Other consumer | 1,697 | 1,835 | |||||||||||||||||||||||||||
Total consumer loans | 65,899 | 41,978 | |||||||||||||||||||||||||||
Total loans | 619,455 | 532,031 | |||||||||||||||||||||||||||
Net deferred loan origination costs and unamortized premiums | 1,288 | 1,611 | |||||||||||||||||||||||||||
Less allowance for loan losses | (6,575 | ) | (6,922 | ) | |||||||||||||||||||||||||
Total loans receivable | $ | 614,168 | $ | 526,720 | |||||||||||||||||||||||||
Held for sale: | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 349 | $ | 706 | |||||||||||||||||||||||||
Loans Receivable Credit Quality Indicators | ' | ||||||||||||||||||||||||||||
The following tables present by credit quality indicator the composition of the commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial credit exposure-credit risk profile by internally assigned grade | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Real estate-commercial | $ | 113,260 | $ | 7,142 | $ | 8,943 | $ | — | $ | 129,345 | |||||||||||||||||||
Real estate-residential | 17,182 | 487 | 2,336 | — | 20,005 | ||||||||||||||||||||||||
Real estate-multi-family | 13,114 | — | 3,509 | — | 16,623 | ||||||||||||||||||||||||
Construction loans | 5,596 | — | 3,177 | — | 8,773 | ||||||||||||||||||||||||
Commercial and industrial loans | 6,817 | 32 | — | — | 6,849 | ||||||||||||||||||||||||
Total | $ | 155,969 | $ | 7,661 | $ | 17,965 | $ | — | $ | 181,595 | |||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Real estate-commercial | $ | 91,446 | $ | 4,192 | $ | 9,128 | $ | — | $ | 104,766 | |||||||||||||||||||
Real estate-residential | 19,244 | 1,018 | 1,308 | — | 21,570 | ||||||||||||||||||||||||
Real estate-multi-family | 15,751 | — | 3,367 | — | 19,118 | ||||||||||||||||||||||||
Construction loans | 7,397 | 4,097 | 4,794 | — | 16,288 | ||||||||||||||||||||||||
Commercial and industrial loans | 4,565 | 81 | — | — | 4,646 | ||||||||||||||||||||||||
Total | $ | 138,403 | $ | 9,388 | $ | 18,597 | $ | — | $ | 166,388 | |||||||||||||||||||
Mortgage and Consumer Credit Exposure | ' | ||||||||||||||||||||||||||||
The following tables present by credit quality indicator the composition of the residential mortgage and consumer loan portfolios: | |||||||||||||||||||||||||||||
Mortgage and consumer credit exposure-credit risk profile by payment activity | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential mortgages | $ | 368,967 | $ | 2,994 | $ | 371,961 | |||||||||||||||||||||||
Home equity and second mortgage | 63,902 | 300 | 64,202 | ||||||||||||||||||||||||||
Other consumer | 1,697 | — | 1,697 | ||||||||||||||||||||||||||
Total | $ | 434,566 | $ | 3,294 | $ | 437,860 | |||||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential mortgages | $ | 321,400 | $ | 2,265 | $ | 323,665 | |||||||||||||||||||||||
Home equity and second mortgage | 40,000 | 143 | 40,143 | ||||||||||||||||||||||||||
Other consumer | 1,827 | 8 | 1,835 | ||||||||||||||||||||||||||
Total | $ | 363,227 | $ | 2,416 | $ | 365,643 | |||||||||||||||||||||||
Financing Receivables, Non Accrual Status | ' | ||||||||||||||||||||||||||||
The following table presents by class nonperforming loans including impaired loans and loan balances past due over 90 days for which the accrual of interest has been discontinued: | |||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 2,994 | $ | 2,265 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 774 | 1,098 | |||||||||||||||||||||||||||
Real estate-residential | 896 | 51 | |||||||||||||||||||||||||||
Real estate-multi-family | 191 | — | |||||||||||||||||||||||||||
Construction loans | 3,177 | 4,794 | |||||||||||||||||||||||||||
Commercial and industrial loans | — | — | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 300 | 143 | |||||||||||||||||||||||||||
Other consumer | — | 8 | |||||||||||||||||||||||||||
Total nonperforming loans | $ | 8,332 | $ | 8,359 | |||||||||||||||||||||||||
Loans Individually Evaluated for Impairment by Class | ' | ||||||||||||||||||||||||||||
The following tables present by class loans individually evaluated for impairment: | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Recorded investment | Unpaid principal balance | Related | Average recorded investment | Interest income recognized | |||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||
With an allowance recorded: | (in thousands) | ||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 1,135 | $ | 1,135 | $ | 128 | $ | 1,620 | $ | — | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | — | — | — | 109 | — | ||||||||||||||||||||||||
Real estate-residential | 712 | 712 | 77 | 211 | — | ||||||||||||||||||||||||
Construction loans | 3,177 | 3,375 | 2,021 | 3,701 | — | ||||||||||||||||||||||||
5,024 | 5,222 | 2,226 | 5,641 | — | |||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | 1,184 | 1,184 | — | 241 | — | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 774 | 774 | — | 607 | — | ||||||||||||||||||||||||
Real estate-residential | 184 | 321 | — | 108 | — | ||||||||||||||||||||||||
Real estate-multi-family | 191 | 372 | — | 77 | — | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 47 | 81 | — | 7 | — | ||||||||||||||||||||||||
2,380 | 2,732 | — | 1,040 | — | |||||||||||||||||||||||||
Total | $ | 7,404 | $ | 7,954 | $ | 2,226 | $ | 6,681 | $ | — | |||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Unpaid principal | Average recorded | Interest income | |||||||||||||||||||||||||||
Recorded | balance | Related | investment | recognized | |||||||||||||||||||||||||
investment | allowance | ||||||||||||||||||||||||||||
With an allowance recorded: | (in thousands) | ||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 2,137 | $ | 2,214 | $ | 218 | $ | 2,061 | $ | — | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 546 | 1,497 | 296 | 697 | — | ||||||||||||||||||||||||
Real estate-residential | 51 | 51 | 4 | 298 | — | ||||||||||||||||||||||||
Construction loans | 4,737 | 5,137 | 1,029 | 3,604 | — | ||||||||||||||||||||||||
Commercial and industrial loans | — | — | — | 2 | — | ||||||||||||||||||||||||
7,471 | 8,899 | 1,547 | 6,662 | — | |||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | — | — | — | 698 | — | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 552 | 552 | — | 1,012 | — | ||||||||||||||||||||||||
Real estate-residential | — | — | — | 216 | — | ||||||||||||||||||||||||
Construction loans | 57 | 116 | — | 1,932 | — | ||||||||||||||||||||||||
609 | 668 | — | 3,858 | — | |||||||||||||||||||||||||
Total | $ | 8,080 | $ | 9,567 | $ | 1,547 | $ | 10,520 | $ | — | |||||||||||||||||||
Loans Receivable Aging | ' | ||||||||||||||||||||||||||||
The following tables present by class the contractual aging of delinquent loans: | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | Loans | Total | Total | Recorded | |||||||||||||||||||||||
Days | Days | past due | past due | loans | investment | ||||||||||||||||||||||||
past due | past due | 90 days | over 90 days | ||||||||||||||||||||||||||
or more | and accruing | ||||||||||||||||||||||||||||
interest | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 369,271 | $ | 111 | $ | — | $ | 2,579 | $ | 2,690 | $ | 371,961 | $ | — | |||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 127,786 | 785 | — | 774 | 1,559 | 129,345 | — | ||||||||||||||||||||||
Real estate-residential | 18,589 | 180 | 340 | 896 | 1,416 | 20,005 | — | ||||||||||||||||||||||
Real estate-multi-family | 16,432 | — | — | 191 | 191 | 16,623 | — | ||||||||||||||||||||||
Construction loans | 5,596 | — | — | 3,177 | 3,177 | 8,773 | — | ||||||||||||||||||||||
Commercial and industrial loans | 6,849 | — | — | — | — | 6,849 | — | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 63,543 | 355 | 4 | 300 | 659 | 64,202 | — | ||||||||||||||||||||||
Other consumer | 1,686 | 7 | 4 | — | 11 | 1,697 | — | ||||||||||||||||||||||
Total | $ | 609,752 | $ | 1,438 | $ | 348 | $ | 7,917 | $ | 9,703 | $ | 619,455 | $ | — | |||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | Loans | Total | Total | Recorded | |||||||||||||||||||||||
Days | Days | past due | past due | loans | investment | ||||||||||||||||||||||||
past due | past due | 90 days | over 90 days | ||||||||||||||||||||||||||
or more | and accruing | ||||||||||||||||||||||||||||
interest | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 319,982 | $ | 1,161 | $ | 329 | $ | 2,193 | $ | 3,683 | $ | 323,665 | $ | — | |||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 102,868 | 800 | — | 1,098 | 1,898 | 104,766 | — | ||||||||||||||||||||||
Real estate-residential | 21,488 | 31 | — | 51 | 82 | 21,570 | — | ||||||||||||||||||||||
Real estate-multi-family | 19,118 | — | — | — | — | 19,118 | — | ||||||||||||||||||||||
Construction loans | 11,494 | — | — | 4,794 | 4,794 | 16,288 | — | ||||||||||||||||||||||
Commercial and industrial loans | 4,646 | — | — | — | — | 4,646 | — | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 39,842 | 34 | 124 | 143 | 301 | 40,143 | — | ||||||||||||||||||||||
Other consumer | 1,824 | — | 3 | 8 | 11 | 1,835 | — | ||||||||||||||||||||||
Total | $ | 521,262 | $ | 2,026 | $ | 456 | $ | 8,287 | $ | 10,769 | $ | 532,031 | $ | — | |||||||||||||||
Allowance for Credit Losses on Loans Receivable | ' | ||||||||||||||||||||||||||||
Activity in the allowance for loan losses is summarized as follows: | |||||||||||||||||||||||||||||
Balance | Provision | Charge-offs | Recoveries | Balance | |||||||||||||||||||||||||
January 1, | December 31, | ||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 1,849 | $ | 326 | $ | (465 | ) | $ | 12 | $ | 1,722 | ||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 1,754 | (99 | ) | (435 | ) | — | 1,220 | ||||||||||||||||||||||
Real estate-residential | 608 | (81 | ) | (90 | ) | — | 437 | ||||||||||||||||||||||
Real estate-multi-family | 245 | (109 | ) | — | — | 136 | |||||||||||||||||||||||
Construction loans | 1,697 | 647 | (150 | ) | 14 | 2,208 | |||||||||||||||||||||||
Commercial and industrial loans | 119 | (21 | ) | (10 | ) | 9 | 97 | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 251 | 13 | (58 | ) | 8 | 214 | |||||||||||||||||||||||
Other consumer | 11 | 60 | (27 | ) | 6 | 50 | |||||||||||||||||||||||
Unallocated | 388 | 103 | — | — | 491 | ||||||||||||||||||||||||
Total | $ | 6,922 | $ | 839 | $ | (1,235 | ) | $ | 49 | $ | 6,575 | ||||||||||||||||||
Balance | Provision | Charge-offs | Recoveries | Balance | |||||||||||||||||||||||||
January 1, | December 31, | ||||||||||||||||||||||||||||
2012 | 2012 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 2,194 | $ | 367 | $ | (768 | ) | $ | 56 | $ | 1,849 | ||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 2,352 | 353 | (951 | ) | — | 1,754 | |||||||||||||||||||||||
Real estate-residential | 369 | 726 | (487 | ) | — | 608 | |||||||||||||||||||||||
Real estate-multi-family | 350 | (105 | ) | — | — | 245 | |||||||||||||||||||||||
Construction loans | 1,830 | 1,049 | (1,182 | ) | — | 1,697 | |||||||||||||||||||||||
Commercial and industrial loans | 138 | 115 | (156 | ) | 22 | 119 | |||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 448 | (104 | ) | (93 | ) | — | 251 | ||||||||||||||||||||||
Other consumer | 22 | 8 | (23 | ) | 4 | 11 | |||||||||||||||||||||||
Unallocated | 397 | (9 | ) | — | — | 388 | |||||||||||||||||||||||
Total | $ | 8,100 | $ | 2,400 | $ | (3,660 | ) | $ | 82 | $ | 6,922 | ||||||||||||||||||
Impairment Method for Allowance for Loan Losses and Loan Balance | ' | ||||||||||||||||||||||||||||
The following tables present by class the ending balance of the allowance for loan losses and ending loan balance based on the impairment method as of December 31, 2013: | |||||||||||||||||||||||||||||
Evaluated for impairment | |||||||||||||||||||||||||||||
Allowance for loan losses | Loans | Loans | Individually | Collectively | Total | ||||||||||||||||||||||||
acquired | acquired | ||||||||||||||||||||||||||||
without | with credit | ||||||||||||||||||||||||||||
credit | deterioration | ||||||||||||||||||||||||||||
deterioration | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | — | $ | — | $ | 128 | $ | 1,594 | $ | 1,722 | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | — | — | — | 1,220 | 1,220 | ||||||||||||||||||||||||
Real estate-residential | — | — | 77 | 360 | 437 | ||||||||||||||||||||||||
Real estate-multi-family | — | — | — | 136 | 136 | ||||||||||||||||||||||||
Construction loans | — | — | 2,021 | 187 | 2,208 | ||||||||||||||||||||||||
Commercial and industrial loans | — | — | — | 97 | 97 | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | — | — | — | 214 | 214 | ||||||||||||||||||||||||
Other consumer | — | — | — | 50 | 50 | ||||||||||||||||||||||||
Unallocated | — | — | — | 491 | 491 | ||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 2,226 | $ | 4,349 | $ | 6,575 | |||||||||||||||||||
Evaluated for impairment | |||||||||||||||||||||||||||||
Loans receivable | Loans | Loans | Individually | Collectively | Total | ||||||||||||||||||||||||
acquired | acquired | ||||||||||||||||||||||||||||
without | with credit | ||||||||||||||||||||||||||||
credit | deterioration | ||||||||||||||||||||||||||||
deterioration | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 50,985 | $ | 22 | $ | 2,297 | $ | 318,657 | $ | 371,961 | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 12,787 | — | 774 | 115,784 | 129,345 | ||||||||||||||||||||||||
Real estate-residential | 4,913 | 184 | 712 | 14,196 | 20,005 | ||||||||||||||||||||||||
Real estate-multi-family | 1,116 | 191 | — | 15,316 | 16,623 | ||||||||||||||||||||||||
Construction loans | — | — | 3,177 | 5,596 | 8,773 | ||||||||||||||||||||||||
Commercial and industrial loans | 279 | — | — | 6,570 | 6,849 | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | 24,806 | 47 | — | 39,349 | 64,202 | ||||||||||||||||||||||||
Other consumer | 126 | — | — | 1,571 | 1,697 | ||||||||||||||||||||||||
Total | $ | 95,012 | $ | 444 | $ | 6,960 | $ | 517,039 | $ | 619,455 | |||||||||||||||||||
The following tables present by class the ending balance of the allowance for loan losses and ending loan balance based on impairment method as of December 31, 2012: | |||||||||||||||||||||||||||||
Evaluated for impairment | |||||||||||||||||||||||||||||
Allowance for loan losses | Individually | Collectively | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 218 | $ | 1,631 | $ | 1,849 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 296 | 1,458 | 1,754 | ||||||||||||||||||||||||||
Real estate-residential | 4 | 604 | 608 | ||||||||||||||||||||||||||
Real estate-multi-family | — | 245 | 245 | ||||||||||||||||||||||||||
Construction loans | 1,029 | 668 | 1,697 | ||||||||||||||||||||||||||
Commercial and industrial loans | — | 119 | 119 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | — | 251 | 251 | ||||||||||||||||||||||||||
Other consumer | — | 11 | 11 | ||||||||||||||||||||||||||
Unallocated | — | 388 | 388 | ||||||||||||||||||||||||||
Total | $ | 1,547 | $ | 5,375 | $ | 6,922 | |||||||||||||||||||||||
Evaluated for impairment | |||||||||||||||||||||||||||||
Loans receivable | Individually | Collectively | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Residential mortgages | $ | 2,137 | $ | 321,528 | $ | 323,665 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate-commercial | 1,098 | 103,668 | 104,766 | ||||||||||||||||||||||||||
Real estate-residential | 51 | 21,519 | 21,570 | ||||||||||||||||||||||||||
Real estate-multi-family | — | 19,118 | 19,118 | ||||||||||||||||||||||||||
Construction loans | 4,794 | 11,494 | 16,288 | ||||||||||||||||||||||||||
Commercial and industrial loans | — | 4,646 | 4,646 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Home equity and second mortgage | — | 40,143 | 40,143 | ||||||||||||||||||||||||||
Other consumer | — | 1,835 | 1,835 | ||||||||||||||||||||||||||
Total | $ | 8,080 | $ | 523,951 | $ | 532,031 | |||||||||||||||||||||||
Troubled Debt Restructurings on Loans Receivable | ' | ||||||||||||||||||||||||||||
The following table presents by class loans classified as TDRs segregated for the periods indicated: | |||||||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Number | Pre- | Post | Number | Pre- | Post | ||||||||||||||||||||||||
of | Modification | Modification | of | Modification | Modification | ||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | Contracts | Outstanding | Outstanding | ||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
Residential | (dollars in thousands) | ||||||||||||||||||||||||||||
Residential mortgage | 0 | $ | — | $ | — | 2 | $ | 950 | $ | 923 | |||||||||||||||||||
Total | 0 | $ | — | $ | — | 2 | $ | 950 | $ | 923 | |||||||||||||||||||
The following table presents loans classified as TDRs that subsequently defaulted: | |||||||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Number | Recorded | ||||||||||||||||||||||||||||
of | Investment | ||||||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||||||
Residential | (in thousands) | ||||||||||||||||||||||||||||
Residential mortgage | 1 | $ | 337 | ||||||||||||||||||||||||||
Total | 1 | $ | 337 | ||||||||||||||||||||||||||
Components of purchase accounting adjustments related to the purchased impaired loans | ' | ||||||||||||||||||||||||||||
The table below presents the components of the purchase accounting adjustments related to the purchased impaired loans acquired in the Roebling acquisition as of July 2, 2013: | |||||||||||||||||||||||||||||
At July 2, 2013 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Unpaid principal balance | $ | 1,320 | |||||||||||||||||||||||||||
Interest | 638 | ||||||||||||||||||||||||||||
Contractual cash flows | 1,958 | ||||||||||||||||||||||||||||
Non-accretable discount | (963 | ) | |||||||||||||||||||||||||||
Expected cash flows | 995 | ||||||||||||||||||||||||||||
Accretable discount | (198 | ) | |||||||||||||||||||||||||||
Estimated fair value | $ | 797 | |||||||||||||||||||||||||||
Changes in the amortizable yield for purchased credit-impaired loans | ' | ||||||||||||||||||||||||||||
Changes in the amortizable yield for purchased credit-impaired loans were as follows for year ended December 31, 2013: | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | — | |||||||||||||||||||||||||||
Acquisition of impaired loans | 198 | ||||||||||||||||||||||||||||
Accretion | (44 | ) | |||||||||||||||||||||||||||
Balance at end of period | $ | 154 | |||||||||||||||||||||||||||
Information regarding loans acquired and accounted for in accordance with ASC 310-30 | ' | ||||||||||||||||||||||||||||
The following table presents additional information regarding loans acquired and accounted for in accordance with | |||||||||||||||||||||||||||||
ASC 310-30: | |||||||||||||||||||||||||||||
2-Jul-13 | 31-Dec-13 | ||||||||||||||||||||||||||||
Acquired Loans with | Acquired Loans with | ||||||||||||||||||||||||||||
Specific Evidence of | Specific Evidence of | ||||||||||||||||||||||||||||
Deterioration in Credit | Deterioration in Credit | ||||||||||||||||||||||||||||
Quality (ASC 310-30) | Quality (ASC 310-30) | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Outstanding balance | $ | 1,958 | $ | 1,508 | |||||||||||||||||||||||||
Carrying amount | 797 | 444 |
LOAN_SERVICING_Tables
LOAN SERVICING (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
LOAN SERVICING [Abstract] | ' | ||||||||
Mortgage Loans Serviced for Others | ' | ||||||||
Mortgage loans serviced for others are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of these loans are summarized as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Mortgage loan servicing portfolios | |||||||||
FHLMC | $ | 154 | $ | 235 | |||||
FNMA | 150,670 | 127,677 | |||||||
Other investors | 10,717 | 8,294 | |||||||
$ | 161,541 | $ | 136,206 |
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
PREMISES AND EQUIPMENT [Abstract] | ' | |||||||||
Premises and Equipment Summary | ' | |||||||||
Premises and equipment are summarized as follows: | ||||||||||
At December 31, | ||||||||||
Estimated | 2013 | 2012 | ||||||||
useful lives | ||||||||||
(in thousands) | ||||||||||
Buildings | 30 years | $ | 9,559 | $ | 7,614 | |||||
Leasehold improvements | 5-10 years | 3,216 | 3,243 | |||||||
Furniture, fixtures and equipment | 3-7 years | 7,320 | 7,292 | |||||||
20,095 | 18,149 | |||||||||
Less accumulated depreciation | 13,788 | 13,640 | ||||||||
6,307 | 4,509 | |||||||||
Land | 2,309 | 1,599 | ||||||||
$ | 8,616 | $ | 6,108 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
DEPOSITS [Abstract] | ' | ||||||||||||||||||||||||||
Deposits Summary | ' | ||||||||||||||||||||||||||
Deposits are summarized as follows: | |||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Deposit Type | |||||||||||||||||||||||||||
Noninterest-bearing checking | $ | 68,133 | $ | 52,433 | |||||||||||||||||||||||
Interest-bearing checking | 114,184 | 76,370 | |||||||||||||||||||||||||
Money market | 180,215 | 153,827 | |||||||||||||||||||||||||
Passbook savings | 130,878 | 106,268 | |||||||||||||||||||||||||
Total demand, transaction and passbook deposits | 493,410 | 388,898 | |||||||||||||||||||||||||
Certificates of deposit | 190,492 | 171,417 | |||||||||||||||||||||||||
$ | 683,902 | $ | 560,315 | ||||||||||||||||||||||||
Deposit Maturities By Year | ' | ||||||||||||||||||||||||||
At December 31, 2013, scheduled maturities of certificates of deposit by year are as follows: | |||||||||||||||||||||||||||
Maturity year | |||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
$ | 129,723 | $ | 35,829 | $ | 11,901 | $ | 7,172 | $ | 5,737 | $ | 130 | $ | 190,492 |
ADVANCES_FROM_THE_FHLB_Tables
ADVANCES FROM THE FHLB (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
ADVANCES FROM THE FHLB [Abstract] | ' | ||||||||||||||||
Schedule of Advances from the FHLB | ' | ||||||||||||||||
Advances from the FHLB consist of the following: | |||||||||||||||||
At December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Principal payments due during | Weighted | Weighted | |||||||||||||||
Amount | average rate | Amount | average rate | ||||||||||||||
(in thousands) | |||||||||||||||||
2013 | $ | — | — | % | $ | 11,051 | 3.18 | % | |||||||||
2014 | 4,287 | 2.4 | % | 4,287 | 2.4 | % | |||||||||||
2015 | 3,669 | 2.16 | % | 3,669 | 2.16 | % | |||||||||||
2016 | 10,887 | 1.38 | % | 10,887 | 1.38 | % | |||||||||||
2017 | 14,895 | 1.12 | % | 14,895 | 1.12 | % | |||||||||||
2018 | 1,330 | 1.87 | % | 1,330 | 1.87 | % | |||||||||||
Thereafter | 14,537 | 1.83 | % | 14,537 | 1.83 | % | |||||||||||
$ | 49,605 | 1.59 | % | $ | 60,656 | 1.88 | % |
BENEFIT_PLANS_Tables
BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
BENEFIT PLANS [Abstract] | ' | ||||||||||||||||||||||
Schedule of Accumulated and Projected Benefit Obligations | ' | ||||||||||||||||||||||
The following tables set forth the projected benefit obligation, the fair value of assets of the plan and funded status of the defined benefit pension plan as reflected in the Consolidated Balance Sheets: | |||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Reconciliation of projected benefit obligation | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 8,940 | $ | 8,045 | |||||||||||||||||||
Service cost | 823 | 736 | |||||||||||||||||||||
Interest cost | 355 | 360 | |||||||||||||||||||||
Actuarial (gain) loss | (1,116 | ) | 339 | ||||||||||||||||||||
Amendments | — | — | |||||||||||||||||||||
Benefits paid | (769 | ) | (540 | ) | |||||||||||||||||||
Benefit obligation at end of year | $ | 8,233 | $ | 8,940 | |||||||||||||||||||
Reconciliation of fair value of assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 9,767 | $ | 8,006 | |||||||||||||||||||
Actual return on plan assets | 1,593 | 801 | |||||||||||||||||||||
Employer contribution | 654 | 1,500 | |||||||||||||||||||||
Benefits paid | (769 | ) | (540 | ) | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 11,245 | $ | 9,767 | |||||||||||||||||||
Funded status at end of year | $ | 3,012 | $ | 827 | |||||||||||||||||||
For the years ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||
Service cost | $ | 823 | $ | 736 | |||||||||||||||||||
Interest cost | 355 | 360 | |||||||||||||||||||||
Expected return on plan assets | (728 | ) | (644 | ) | |||||||||||||||||||
Amortization of prior service cost | 2 | 2 | |||||||||||||||||||||
Recognized net actuarial loss | 262 | 283 | |||||||||||||||||||||
Net periodic benefit cost | $ | 714 | $ | 737 | |||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||
The following table sets forth the amounts recognized in accumulated other comprehensive income (loss) for the years ended: | |||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net loss | $ | (2,028 | ) | $ | (4,270 | ) | |||||||||||||||||
Prior service cost | (23 | ) | (27 | ) | |||||||||||||||||||
Total | $ | (2,051 | ) | $ | (4,297 | ) | |||||||||||||||||
Weighted-average Assumptions Used to Determine Benefit Obligations and Net Benefit Costs | ' | ||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations: | |||||||||||||||||||||||
Discount rate | 5 | % | 4 | % | |||||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | |||||||||||||||||||
For the years ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Weighted-average assumptions used to determine net benefit costs: | |||||||||||||||||||||||
Discount rate | 4 | % | 4.5 | % | |||||||||||||||||||
Expected return on plan assets | 7.5 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | 3 | % | 4 | % | |||||||||||||||||||
Summary of Estimated Future Benefits Payments | ' | ||||||||||||||||||||||
Estimated future benefits payments are as follows: | |||||||||||||||||||||||
Year ending December 31, | Amount | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
2014 | $ | 202 | |||||||||||||||||||||
2015 | 234 | ||||||||||||||||||||||
2016 | 277 | ||||||||||||||||||||||
2017 | 282 | ||||||||||||||||||||||
2018 | 319 | ||||||||||||||||||||||
2019-2023 | 2,058 | ||||||||||||||||||||||
Schedule of Plan Assets at Fair Value | ' | ||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the plan’s financial assets at fair value as of December 31, 2013: | |||||||||||||||||||||||
Balance as of | |||||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Collective investment trust funds | $ | — | $ | 11,245 | $ | — | $ | 11,245 | |||||||||||||||
Total plan assets at fair value | $ | — | $ | 11,245 | $ | — | $ | 11,245 | |||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the plan’s financial assets at fair value as of December 31, 2012: | |||||||||||||||||||||||
Balance as of | |||||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Collective investment trust funds | $ | — | $ | 9,767 | $ | — | $ | 9,767 | |||||||||||||||
Total plan assets at fair value | $ | — | $ | 9,767 | $ | — | $ | 9,767 | |||||||||||||||
Schedule of Weighted-average Allocation of Plan Assets | ' | ||||||||||||||||||||||
The plan’s weighted-average asset allocations by asset category are as follows: | |||||||||||||||||||||||
Percentage of plan assets | |||||||||||||||||||||||
at December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||
Collective investment trust funds | 100 | % | 100 | % | |||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||
Summary Disclosure of ESOP Plan | ' | ||||||||||||||||||||||
The Company has an internally leveraged ESOP for eligible employees who have completed six months of service with the Company or its subsidiaries. The ESOP borrowed $4.2 million from the Company in 1996 to purchase 423,200 newly issued shares of common stock. Any dividends received by the ESOP will be used to pay debt service. The Company makes discretionary contributions to the ESOP in order to service the ESOP’s debt if necessary. The ESOP shares are pledged as collateral for its debt. As the debt is repaid, shares are released from collateral based on the proportion of debt service paid in the year and allocated to qualifying employees. The Company reports compensation expense in the amount equal to the fair value of shares allocated from the ESOP to employees less dividends received on the allocated shares in the plan used for debt service. The allocated shares are included in outstanding shares for earnings per share computations. ESOP compensation expense included in stock-based compensation totaled $284,000 and $286,000 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Allocated shares | 187,000 | 184,000 | |||||||||||||||||||||
Unreleased shares | 90,000 | 103,000 | |||||||||||||||||||||
Total ESOP shares | 277,000 | 287,000 | |||||||||||||||||||||
Fair value of unreleased shares (in thousands) | $ | 2,534 | $ | 2,446 | |||||||||||||||||||
Summary Status of Stock Option Plan | ' | ||||||||||||||||||||||
A summary of the status of the Company’s stock option plans as of December 31, 2013 and 2012, and changes for each of the years then ended, is as follows: | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||||||||
of | average | of | average | ||||||||||||||||||||
shares | exercise | shares | exercise | ||||||||||||||||||||
price per | price per | ||||||||||||||||||||||
share | share | ||||||||||||||||||||||
Outstanding at beginning of year | 89,279 | $ | 24.08 | 109,765 | $ | 24.41 | |||||||||||||||||
Options granted | 205,000 | 24.28 | — | — | |||||||||||||||||||
Options exercised | (8,547 | ) | 25.24 | (315 | ) | 19.67 | |||||||||||||||||
Options forfeited | (4,271 | ) | 27.1 | (1,904 | ) | 28.59 | |||||||||||||||||
Options expired | (27,317 | ) | 28.19 | (18,267 | ) | 25.68 | |||||||||||||||||
Outstanding at end of year | 254,144 | 23.71 | 89,279 | 24.08 | |||||||||||||||||||
Options exercisable | 50,644 | $ | 21.41 | 80,652 | $ | 24.55 | |||||||||||||||||
Summary of Stock Options Outstanding | ' | ||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||
Options outstanding | Options exercisable | ||||||||||||||||||||||
Range of exercise prices | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||||
average | average | average | |||||||||||||||||||||
remaining | exercise | exercise | |||||||||||||||||||||
contractual | price | price | |||||||||||||||||||||
life (years) | |||||||||||||||||||||||
$ | 19.67 - 26.90 | 254,144 | 2.81 | $ | 23.71 | 50,644 | $ | 21.41 | |||||||||||||||
Summary of Aggregate Intrinsic Value of Options and Cash Receipts From Option Exercises | ' | ||||||||||||||||||||||
The following table reflects information on the aggregate intrinsic value of options as well as cash receipts from option exercises: | |||||||||||||||||||||||
For the years ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Aggregate intrinsic value of | |||||||||||||||||||||||
Options outstanding | $ | 1,132 | $ | 179 | |||||||||||||||||||
Options exercisable | 342 | 144 | |||||||||||||||||||||
Options exercised | 5 | 1 | |||||||||||||||||||||
Cash receipts | 216 | 7 | |||||||||||||||||||||
Summary of Stock-based Compensation Expense | ' | ||||||||||||||||||||||
The following table provides information regarding the Company’s stock-based compensation expense associated with stock options and grants: | |||||||||||||||||||||||
For the years ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||
Director fees | $ | 145 | $ | 149 | |||||||||||||||||||
Stock option expense | 312 | 27 | |||||||||||||||||||||
Total stock-based compensation expense | $ | 457 | $ | 176 | |||||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INCOME TAXES [Abstract] | ' | ||||||||
Components of Income Tax Expense | ' | ||||||||
The components of income tax expense are summarized as follows: | |||||||||
For the years ended December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Federal | |||||||||
Current | $ | 1,822 | $ | 524 | |||||
Deferred | (75 | ) | 1,194 | ||||||
1,747 | 1,718 | ||||||||
State and local – current | 210 | 7 | |||||||
Income tax provision | $ | 1,957 | $ | 1,725 | |||||
Effective Income Tax Rate Reconciliation | ' | ||||||||
The Company’s effective income tax rate was different than the statutory federal income tax rate as follows: | |||||||||
For the years ended December 31, | |||||||||
2013 | 2012 | ||||||||
Statutory federal income tax | 34 | % | 34 | % | |||||
(Decrease) increase resulting from | |||||||||
Tax-exempt income | (8.1 | ) | (10.3 | ) | |||||
State tax, net of federal benefit | 1.6 | 0.1 | |||||||
Other | (4.6 | ) | 0.5 | ||||||
22.9 | % | 24.3 | % | ||||||
Deferred Tax Assets and Liabilities | ' | ||||||||
The Company’s net deferred tax liability was as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Deferred tax assets | |||||||||
Deferred compensation | $ | 484 | $ | 138 | |||||
Allowance for loan losses, net | 2,236 | 2,353 | |||||||
Stock compensation | 147 | 78 | |||||||
Adjustment to record funded status of pension plan | 697 | 1,462 | |||||||
Nonaccrual interest | 209 | 333 | |||||||
Adjustment for real estate acquired thru foreclosure | — | 20 | |||||||
Acquisition related | 355 | — | |||||||
Net operating loss carryforward acquired | 327 | — | |||||||
Other | 18 | 5 | |||||||
$ | 4,473 | $ | 4,389 | ||||||
Deferred tax liabilities | |||||||||
Accrued pension expense | $ | 1,721 | $ | 1,704 | |||||
Unrealized gain on securities available for sale | 90 | 1,960 | |||||||
Prepaid expenses | 51 | 151 | |||||||
Deferred loan costs | 1,123 | 1,172 | |||||||
Amortization of goodwill | 1,470 | 1,470 | |||||||
Fixed assets | 580 | 296 | |||||||
5,035 | 6,753 | ||||||||
Net deferred tax liability | $ | (562 | ) | $ | (2,364 | ) |
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | ' | ||||||||||||||||||||||||
Regulatory Capital | ' | ||||||||||||||||||||||||
The Bank’s actual capital amounts and ratios are presented in the following table: | |||||||||||||||||||||||||
Actual | For capital adequacy purposes | To be well capitalized under prompt corrective action provision | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Tangible capital (to tangible assets) | $ | 86,550 | 10.35 | % | $ | 12,544 | 1.5 | % | $ | — | N/ | A | |||||||||||||
Core capital (to adjusted tangible assets) | 86,550 | 10.35 | % | 33,450 | 4 | % | 41,812 | 5 | % | ||||||||||||||||
Tier 1 capital (to risk weighted assets) | 86,550 | 16.23 | % | 21,334 | 4 | % | 32,001 | 6 | % | ||||||||||||||||
Total Risk | 93,125 | 17.46 | % | 42,668 | 8 | % | 53,336 | 10 | % | ||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Tangible capital (to tangible assets) | 73,612 | 10.45 | % | 10,562 | 1.5 | % | — | N/ | A | ||||||||||||||||
Core capital (to adjusted tangible assets) | 73,612 | 10.45 | % | 28,164 | 4 | % | 35,206 | 5 | % | ||||||||||||||||
Tier 1 capital (to risk weighted assets) | 73,612 | 16.63 | % | 17,703 | 4 | % | 26,555 | 6 | % | ||||||||||||||||
Total Risk | 79,161 | 17.89 | % | 35,407 | 8 | % | 44,259 | 10 | % |
FINANCIAL_INSTRUMENTS_WITH_OFF1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
FINANCIAL INSTRUMENTS WITH OFF BALANCE SHEET RISK [Abstract] | ' | ||||||||
Schedule of Off-balance Sheet Risks | ' | ||||||||
Financial instruments, the contract amounts of which represent credit risk, are as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Commitments to extend credit | $ | 77,663 | $ | 74,571 | |||||
Standby letters of credit | 856 | 780 | |||||||
Loans sold with recourse | - | 50 | |||||||
$ | 78,519 | $ | 75,401 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||
Schedule of Minimum Annual Rental Commitments | ' | ||||
The minimum annual rental commitments of the Bank under all noncancelable leases with terms of one year or more at December 31, 2013 are as follows: | |||||
Year ending December 31, | 2013 | ||||
(in thousands) | |||||
2014 | $ | 489 | |||
2015 | 399 | ||||
2016 | 329 | ||||
2017 | 294 | ||||
2018 | 294 | ||||
Thereafter | 888 | ||||
Total | $ | 2,693 |
FAIR_VALUE_MEASUREMENTS_AND_FA1
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ' | ||||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||
Determination of the appropriate level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement for the instrument or security. Assets and liabilities measured at fair value on a recurring basis segregated by fair value hierarchy level are summarized below: | |||||||||||||||||||||
Balance as of | |||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||
U.S. Government and federal agencies | $ | — | $ | 18,063 | $ | — | $ | 18,063 | |||||||||||||
State and political subdivisions | — | 60,669 | — | 60,669 | |||||||||||||||||
Residential mortgage-backed securities issued by quasi- governmental agencies | — | 45,280 | — | 45,280 | |||||||||||||||||
Total investment securities available for sale | $ | — | $ | 124,012 | $ | — | $ | 124,012 | |||||||||||||
Loans receivable, held for sale | $ | — | $ | 349 | $ | — | $ | 349 | |||||||||||||
Balance as of | |||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||
State and political subdivisions | $ | — | $ | 59,610 | $ | — | $ | 59,610 | |||||||||||||
Residential mortgage-backed securities issued by quasi- governmental agencies | — | 42,674 | — | 42,674 | |||||||||||||||||
Total investment securities available for sale | $ | — | $ | 102,284 | $ | — | $ | 102,284 | |||||||||||||
Loans receivable, held for sale | $ | — | $ | 706 | $ | — | $ | 706 | |||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | ' | ||||||||||||||||||||
Assets and liabilities measured at fair value on a nonrecurring basis segregated by fair value hierarchy level at December 31, 2013 are summarized below: | |||||||||||||||||||||
Balance as of | |||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 5,178 | $ | 5,178 | |||||||||||||
Real estate acquired through foreclosure | — | — | 5,601 | 5,601 | |||||||||||||||||
Mortgage servicing rights | — | 1,472 | — | 1,472 | |||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Bank has utilized Level 3 inputs to determine fair value at December 31, 2013: | |||||||||||||||||||||
Fair value | Valuation | Unobservable | Range of | ||||||||||||||||||
Description | estimate | technique | Input | inputs | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans | $ | 5,178 | Appraisal of collateral (1) | Discount rate to reflect current market conditions and ultimate recoverability | 5%-15 | % | |||||||||||||||
Real estate acquired through foreclosure | 5,601 | Appraisal of collateral (1) | Discount rate to reflect current market conditions and liquidation expenses | 5%-20 | % | ||||||||||||||||
-1 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | ||||||||||||||||||||
Assets and liabilities measured at fair value on a nonrecurring basis segregated by fair value hierarchy level at December 31, 2012 are summarized below: | |||||||||||||||||||||
Balance as of | |||||||||||||||||||||
Fair value hierarchy levels | December 31, | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 6,533 | $ | 6,533 | |||||||||||||
Real estate acquired through foreclosure | — | — | 7,282 | 7,282 | |||||||||||||||||
Mortgage servicing rights | — | 956 | — | 956 | |||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Bank has utilized Level 3 inputs to determine fair value at December 31, 2012: | |||||||||||||||||||||
Fair value | Valuation | Unobservable | Range of | ||||||||||||||||||
Description | estimate | technique | Input | inputs | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans | $ | 6,533 | Appraisal of collateral (1) | Discount rate to reflect current market conditions and ultimate recoverability | 5%-15 | % | |||||||||||||||
Real estate acquired through foreclosure | 7,282 | Appraisal of collateral (1) | Discount rate to reflect current market conditions and liquidation expenses | 5%-20 | % | ||||||||||||||||
-1 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | ||||||||||||||||||||
Carrying Amounts And Fair Values | ' | ||||||||||||||||||||
Fair values have been estimated using data which management considered the best available, as generally provided by estimation methodologies deemed suitable for the pertinent category of financial instrument. The recorded carrying amounts and fair values segregated by fair value hierarchy level at December 31, 2013 are summarized below: | |||||||||||||||||||||
Carrying | Fair | Fair value hierarchy levels | |||||||||||||||||||
value | value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | (in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 45,310 | $ | 45,310 | $ | 45,310 | $ | — | $ | — | |||||||||||
Investment securities | 78,732 | 78,732 | — | 78,732 | — | ||||||||||||||||
Mortgage-backed securities | 46,770 | 46,960 | — | 46,960 | — | ||||||||||||||||
Loans receivable, net | 614,517 | 614,246 | — | 349 | 613,897 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits with stated maturities | $ | 190,492 | $ | 193,258 | $ | — | $ | — | $ | 193,258 | |||||||||||
Deposits with no stated maturities | 493,410 | 493,410 | 493,410 | — | — | ||||||||||||||||
Borrowings with stated maturities | 49,605 | 48,426 | — | — | 48,426 | ||||||||||||||||
The recorded carrying amounts and fair values at December 31, 2012 are summarized below: | |||||||||||||||||||||
Carrying | Fair | Fair value hierarchy levels | |||||||||||||||||||
value | value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | (in thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 31,137 | $ | 31,137 | $ | 31,137 | $ | — | $ | — | |||||||||||
Investment securities | 59,610 | 59,610 | — | 59,610 | — | ||||||||||||||||
Mortgage-backed securities | 44,639 | 44,945 | — | 44,945 | — | ||||||||||||||||
Loans receivable, net | 527,426 | 539,665 | — | 706 | 538,959 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits with stated maturities | $ | 171,417 | $ | 175,025 | $ | — | $ | — | $ | 175,025 | |||||||||||
Deposits with no stated maturities | 388,898 | 388,898 | 388,898 | — | — | ||||||||||||||||
Borrowings with stated maturities | 60,656 | 60,939 | — | — | 60,939 | ||||||||||||||||
SERVICE_FEES_CHARGES_AND_OTHER1
SERVICE FEES, CHARGES AND OTHER OPERATING INCOME AND OTHER OPERATING EXPENSE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
SERVICE FEES, CHARGES AND OTHER OPERATING INCOME AND OTHER OPERATING EXPENSE [Abstract] | ' | ||||||||
Service Fees, Charges And Other Operating Income And Other Operating Expense | ' | ||||||||
For the years ended December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Service fees, charges and other operating income | |||||||||
Loan servicing fees, net | $ | 481 | $ | 139 | |||||
Late charge income | 124 | 117 | |||||||
Deposit service charges | 820 | 581 | |||||||
Debit card income | 623 | 539 | |||||||
Other income | 300 | 395 | |||||||
$ | 2,348 | $ | 1,771 | ||||||
Other operating expense | |||||||||
Insurance and surety bond | $ | 193 | $ | 178 | |||||
Office supplies | 219 | 184 | |||||||
Loan expense | 309 | 228 | |||||||
Debit card and ATM expense | 307 | 272 | |||||||
Postage | 260 | 246 | |||||||
Telephone | 312 | 288 | |||||||
Supervisory examination fees | 65 | 73 | |||||||
Conversion costs | 1,417 | - | |||||||
Other expenses | 683 | 578 | |||||||
$ | 3,765 | $ | 2,047 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||
Reconciliation of Numerators and Denominators of the Basic and Diluted Earnings per Share Computations | ' | ||||||||||||
The following tables set forth the reconciliation of the numerators and denominators of the basic and diluted earnings per share computations: | |||||||||||||
For the years ended December 31, 2013 | |||||||||||||
Weighted | |||||||||||||
average | |||||||||||||
Income | shares | Per share | |||||||||||
(numerator) | (denominator) | Amount | |||||||||||
(dollars in thousands, except share data) | |||||||||||||
Basic earnings per share | |||||||||||||
Income available to common stockholders | $ | 6,575 | 2,899,025 | $ | 2.27 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock compensation plans | — | 3,907 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Income available to common stockholders plus effect of dilutive securities | $ | 6,575 | 2,902,932 | $ | 2.27 | ||||||||
There were no anti dilutive shares in 2013. | |||||||||||||
For the years ended December 31, 2012 | |||||||||||||
Weighted | |||||||||||||
average | |||||||||||||
Income | shares | Per share | |||||||||||
(numerator) | (denominator) | Amount | |||||||||||
(dollars in thousands, except share data) | |||||||||||||
Basic earnings per share | |||||||||||||
Income available to common stockholders | $ | 5,383 | 2,726,133 | $ | 1.97 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock compensation plans | — | 3,629 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Income available to common stockholders plus effect of dilutive securities | $ | 5,383 | 2,729,762 | $ | 1.97 |
CONDENSED_FINANCIAL_INFORMATIO1
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY [Abstract] | ' | ||||||||
Schedule of Condensed Financial Statements | ' | ||||||||
Condensed financial information for TF Financial Corporation (parent company only) follows: | |||||||||
BALANCE SHEETS | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
ASSETS | |||||||||
Cash | $ | 2,220 | $ | 2,031 | |||||
Investment in 3rd Fed | 89,501 | 78,032 | |||||||
Investment in Penns Trail Development | 1,065 | 1,077 | |||||||
Notes receivable ESOP | 1,161 | 1,208 | |||||||
Other assets | 964 | 723 | |||||||
Total assets | $ | 94,911 | $ | 83,071 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Total liabilities | $ | 36 | $ | 126 | |||||
Stockholders’ equity | 94,875 | 82,945 | |||||||
Total liabilities and stockholders’ equity | $ | 94,911 | $ | 83,071 | |||||
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||
For the years ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
INCOME | |||||||||
Equity in earnings of subsidiaries | $ | 7,929 | $ | 5,963 | |||||
Interest and dividend income | 18 | 22 | |||||||
Total income | 7,947 | 5,985 | |||||||
EXPENSES | |||||||||
Other | 1,372 | 602 | |||||||
Total expenses | 1,372 | 602 | |||||||
NET INCOME | 6,575 | 5,383 | |||||||
Total other comprehensive income (loss) (1) | (2,148 | ) | 224 | ||||||
Total comprehensive income | $ | 4,427 | $ | 5,607 | |||||
-1 | See Consolidated Statements of Comprehensive Income for other comprehensive income detail. | ||||||||
STATEMENTS OF CASH FLOWS | |||||||||
For the years ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Cash flows from operating activities | |||||||||
Net income | $ | 6,575 | $ | 5,383 | |||||
Adjustments to reconcile net income to net cash used in operating activities | |||||||||
Stock compensation plans | 457 | 176 | |||||||
Equity in earnings of subsidiaries | (7,929 | ) | (5,963 | ) | |||||
Net change in assets and liabilities | (180 | ) | (16 | ) | |||||
Net cash used in operating activities | (1,077 | ) | (420 | ) | |||||
Cash flows from investing activities | |||||||||
Capital distribution from subsidiaries | 7,800 | 1,600 | |||||||
Acquisition net of cash acquired | (5,568 | ) | — | ||||||
Net cash provided by investing activities | 2,232 | 1,600 | |||||||
Cash flows from financing activities | |||||||||
Common stock dividends paid | (884 | ) | (543 | ) | |||||
Treasury stock acquired | (274 | ) | — | ||||||
Exercise of stock options | 216 | 7 | |||||||
Deferred tax adjustment arising from stock compensation | (24 | ) | (27 | ) | |||||
Net cash used in financing activities | (966 | ) | (563 | ) | |||||
NET INCREASE IN CASH | 189 | 617 | |||||||
Cash at beginning of year | 2,031 | 1,414 | |||||||
Cash at end of year | $ | 2,220 | $ | 2,031 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | ||
Foreclosed Real Estate [Abstract] | ' | ' |
Foreclosed real estate | $5,600,000 | $7,300,000 |
Core Deposit Intangible [Abstract] | ' | ' |
Core deposit intangible | 553,000 | ' |
Bank Owned Life Insurance [Abstract] | ' | ' |
Cash surrender values of policies | $18,600,000 | $19,100,000 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Option terms | 'P7Y | ' |
Weighted average assumptions [Abstract] | ' | ' |
Dividend yield (in hundredths) | 0.81% | ' |
Expected volatility (in hundredths) | 16.82% | ' |
Risk-free interest rate (in hundredths) | 0.65% | ' |
Fair value of options granted during the period (in dollars per share) | $3.12 | ' |
Expected lives in years | '5 years | ' |
Share options granted (in shares) | ' | 0 |
Segment Reporting [Abstract] | ' | ' |
Number of reportable segments | 1 | ' |
Number of operating segments | 1 | ' |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period | '2 years | ' |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period | '5 years | ' |
Pennsylvania [Member] | ' | ' |
Entity Location [Line Items] | ' | ' |
Full service branches | 11 | ' |
New Jersey [Member] | ' | ' |
Entity Location [Line Items] | ' | ' |
Full service branches | 7 | ' |
ACQUISITION_OF_ROEBLING_FINANC2
ACQUISITION OF ROEBLING FINANCIAL CORP, INC. (Details) (USD $) | 0 Months Ended | 6 Months Ended | 12 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Jul. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Adjustments to reflect liabilities acquired at fair value [Abstract] | ' | ' | ' | ' |
Gain on acquisition | ' | ' | $1,120,000 | $0 |
Net assets acquired [Abstract] | ' | ' | ' | ' |
Gain on acquisition | ' | ' | 1,120,000 | 0 |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Loan balance, acquired with credit deterioration | 797,000 | 444,000 | 444,000 | ' |
Fair value of loans acquired accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Interest component of expected cash flows (accretable yield) | ' | 154,000 | 154,000 | 0 |
Estimated future amortization expense for core deposit [Abstract] | ' | ' | ' | ' |
2014 | ' | 96,000 | 96,000 | ' |
2015 | ' | 86,000 | 86,000 | ' |
2016 | ' | 75,000 | 75,000 | ' |
2017 | ' | 65,000 | 65,000 | ' |
2018 | ' | 55,000 | 55,000 | ' |
2019 | ' | 45,000 | 45,000 | ' |
2020 | ' | 35,000 | 35,000 | ' |
2021 | ' | 25,000 | 25,000 | ' |
2022 | ' | 15,000 | 15,000 | ' |
2023 | ' | 6,000 | 6,000 | ' |
Total | ' | 503,000 | 503,000 | ' |
Residential Mortgages [Member] | ' | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Loan balance, acquired with credit deterioration | ' | 22,000 | 22,000 | ' |
Real estate-commercial [Member] | ' | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Loan balance, acquired with credit deterioration | ' | 0 | 0 | ' |
Real estate-residential [Member] | ' | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Loan balance, acquired with credit deterioration | ' | 184,000 | 184,000 | ' |
Real estate-multi-family [Member] | ' | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Loan balance, acquired with credit deterioration | ' | 191,000 | 191,000 | ' |
Construction loans [Member] | ' | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Loan balance, acquired with credit deterioration | ' | 0 | 0 | ' |
Commercial and Industrial Loans [Member] | ' | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Loan balance, acquired with credit deterioration | ' | 0 | 0 | ' |
Home equity and second mortgage [Member] | ' | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Loan balance, acquired with credit deterioration | ' | 47,000 | 47,000 | ' |
Other consumer [Member] | ' | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Loan balance, acquired with credit deterioration | ' | 0 | 0 | ' |
Roebling Financial Corp, Inc [Member] | ' | ' | ' | ' |
Purchase Price Consideration in Common Stock [Abstract] | ' | ' | ' | ' |
Roebling Financial Corp, Inc. common shares settled for stock (in shares) | 843,058 | ' | ' | ' |
Exchange Ratio | 0.364 | ' | ' | ' |
TF Financial Corporation shares issued (in shares) | 306,873 | ' | ' | ' |
Value assigned to TF Financial Corporation common share (in dollars per share) | $25 | ' | ' | ' |
Purchase price assigned to Roebling Financial Corp, Inc. common shares exchanged for TF Financial | 7,672,000 | ' | ' | ' |
Purchase Price Consideration - Cash for Common Stock [Abstract] | ' | ' | ' | ' |
Roebling Financial Corp, Inc. shares exchanged for cash (in shares) | 843,478 | ' | ' | ' |
Purchase price paid to each Roebling Financial Corp, Inc. common share exchanged for cash (in dollars per share) | $8.60 | ' | ' | ' |
Purchase price assigned to Roebling Financial Corp, Inc. common shares exchanged for cash | 7,254,000 | ' | ' | ' |
Total Purchase Price | 14,926,000 | ' | ' | ' |
Net Assets Acquired [Abstract] | ' | ' | ' | ' |
Roebling Financial Corp, Inc shareholders equity | 16,461,000 | ' | ' | ' |
Adjustments to reflect assets acquired at fair value [Abstract] | ' | ' | ' | ' |
Investments | 2,000 | ' | ' | ' |
Loans [Abstract] | ' | ' | ' | ' |
Interest rate | 932,000 | ' | ' | ' |
General credit | -1,069,000 | ' | ' | ' |
Specific credit - non-amortizing | -325,000 | ' | ' | ' |
Specific credit - amortizing | -198,000 | ' | ' | ' |
Eliminate allowance for loan losses | 1,214,000 | ' | ' | ' |
Core deposit intangible | 553,000 | ' | ' | ' |
Owned premises | -976,000 | ' | ' | ' |
Leased premises contracts | 33,000 | ' | ' | ' |
Deferred tax assets | -276,000 | ' | ' | ' |
Other assets | 186,000 | ' | ' | ' |
Adjustments to reflect liabilities acquired at fair value [Abstract] | ' | ' | ' | ' |
Time deposits | -440,000 | ' | ' | ' |
FHLB advances | -51,000 | ' | ' | ' |
Total net assets acquired | 16,046,000 | ' | ' | ' |
Gain on acquisition | 1,120,000 | ' | ' | ' |
Net assets as of the acquisition date [Abstract] | ' | ' | ' | ' |
Total Purchase Price | 14,926,000 | ' | ' | ' |
Net assets acquired [Abstract] | ' | ' | ' | ' |
Cash | 4,081,000 | ' | ' | ' |
Investment securities | 37,339,000 | ' | ' | ' |
Loans | 102,026,000 | ' | ' | ' |
Premises and equipment, net | 2,154,000 | ' | ' | ' |
Core deposit intangible | 553,000 | ' | ' | ' |
Other assets | 2,531,000 | ' | ' | ' |
Time deposits | -49,061,000 | ' | ' | ' |
Deposits other than time deposits | -78,689,000 | ' | ' | ' |
Other liabilities | -4,888,000 | ' | ' | ' |
Total net assets acquired | 16,046,000 | ' | ' | ' |
Gain on acquisition | 1,120,000 | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Financing Receivable, Acquired with No Deteriorated Credit Quality | 101,229,000 | ' | ' | ' |
Loan balance, acquired with credit deterioration | 797,000 | ' | ' | ' |
Loans | 102,026,000 | ' | ' | ' |
Fair value of loans acquired not accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Total | 101,229,000 | ' | ' | ' |
Fair value of loans acquired accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Contractual cash flows not expected to be collected (non-accretable yield) | -325,000 | ' | ' | ' |
Estimated future amortization expense for core deposit [Abstract] | ' | ' | ' | ' |
Accumulated amortization on core deposit intangible | ' | 50,000 | 50,000 | ' |
Credit risk related non-accretable discount | 325,000 | ' | ' | ' |
Decrease in loans acquired to reflect fair value | 1,100,000 | ' | ' | ' |
Deposits assumed | 127,800,000 | ' | ' | ' |
Actual from Acquisition Date Through [Abstract] | ' | ' | ' | ' |
Net interest income | ' | 2,192,000 | ' | ' |
Noninterest income | ' | 210,000 | ' | ' |
Net income | ' | 291,000 | ' | ' |
ProForma Information [Abstract] | ' | ' | ' | ' |
Net interest income | ' | ' | 28,855,000 | 29,589,000 |
Noninterest income | ' | ' | 5,365,000 | 4,621,000 |
Net income | ' | ' | 5,463,000 | 5,616,000 |
Pro forma earnings per share [Abstract] | ' | ' | ' | ' |
Basic | ' | ' | $1.70 | $1.85 |
Diluted | ' | ' | $1.70 | $1.85 |
Roebling Financial Corp, Inc [Member] | Residential Mortgages [Member] | ' | ' | ' | ' |
Net assets acquired [Abstract] | ' | ' | ' | ' |
Loans | 54,986,000 | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Financing Receivable, Acquired with No Deteriorated Credit Quality | 54,965,000 | ' | ' | ' |
Loan balance, acquired with credit deterioration | 21,000 | ' | ' | ' |
Loans | 54,986,000 | ' | ' | ' |
Fair value of loans acquired not accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Total | 54,965,000 | ' | ' | ' |
Roebling Financial Corp, Inc [Member] | Real estate-commercial [Member] | ' | ' | ' | ' |
Net assets acquired [Abstract] | ' | ' | ' | ' |
Loans | 13,262,000 | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Financing Receivable, Acquired with No Deteriorated Credit Quality | 13,262,000 | ' | ' | ' |
Loan balance, acquired with credit deterioration | 0 | ' | ' | ' |
Loans | 13,262,000 | ' | ' | ' |
Fair value of loans acquired not accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Total | 13,262,000 | ' | ' | ' |
Roebling Financial Corp, Inc [Member] | Real estate-residential [Member] | ' | ' | ' | ' |
Net assets acquired [Abstract] | ' | ' | ' | ' |
Loans | 5,499,000 | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Financing Receivable, Acquired with No Deteriorated Credit Quality | 5,143,000 | ' | ' | ' |
Loan balance, acquired with credit deterioration | 356,000 | ' | ' | ' |
Loans | 5,499,000 | ' | ' | ' |
Fair value of loans acquired not accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Total | 5,143,000 | ' | ' | ' |
Roebling Financial Corp, Inc [Member] | Real estate-multi-family [Member] | ' | ' | ' | ' |
Net assets acquired [Abstract] | ' | ' | ' | ' |
Loans | 1,926,000 | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Financing Receivable, Acquired with No Deteriorated Credit Quality | 1,595,000 | ' | ' | ' |
Loan balance, acquired with credit deterioration | 331,000 | ' | ' | ' |
Loans | 1,926,000 | ' | ' | ' |
Fair value of loans acquired not accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Total | 1,595,000 | ' | ' | ' |
Roebling Financial Corp, Inc [Member] | Commercial and Industrial Loans [Member] | ' | ' | ' | ' |
Net assets acquired [Abstract] | ' | ' | ' | ' |
Loans | 308,000 | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Financing Receivable, Acquired with No Deteriorated Credit Quality | 308,000 | ' | ' | ' |
Loan balance, acquired with credit deterioration | 0 | ' | ' | ' |
Loans | 308,000 | ' | ' | ' |
Fair value of loans acquired not accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Total | 308,000 | ' | ' | ' |
Roebling Financial Corp, Inc [Member] | Home equity and second mortgage [Member] | ' | ' | ' | ' |
Net assets acquired [Abstract] | ' | ' | ' | ' |
Loans | 25,936,000 | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Financing Receivable, Acquired with No Deteriorated Credit Quality | 25,847,000 | ' | ' | ' |
Loan balance, acquired with credit deterioration | 89,000 | ' | ' | ' |
Loans | 25,936,000 | ' | ' | ' |
Fair value of loans acquired not accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Total | 25,847,000 | ' | ' | ' |
Roebling Financial Corp, Inc [Member] | Other consumer [Member] | ' | ' | ' | ' |
Net assets acquired [Abstract] | ' | ' | ' | ' |
Loans | 109,000 | ' | ' | ' |
Composition of the loans acquired [Abstract] | ' | ' | ' | ' |
Financing Receivable, Acquired with No Deteriorated Credit Quality | 109,000 | ' | ' | ' |
Loan balance, acquired with credit deterioration | 0 | ' | ' | ' |
Loans | 109,000 | ' | ' | ' |
Fair value of loans acquired not accounted under ASC 310-30 [Abstract] | ' | ' | ' | ' |
Total | $109,000 | ' | ' | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ||
Accumulated Other Comprehensive Income, Beginning balance | $970 | [1],[2] | ' | |
Other comprehensive (loss) income before reclassifications | -2,319 | [1],[2] | ' | |
Amounts reclassified from accumulated other comprehensive (loss) income | 171 | [1],[2] | ' | |
Period change | -2,148 | [1],[2] | 224 | |
Accumulated Other Comprehensive Income, Ending balance | -1,178 | [1],[2] | 970 | [1],[2] |
Federal income tax rate (in hundredths) | 34.00% | 34.00% | ||
Unrealized Gains (Losses) on Securities Available for Sale [Member] | ' | ' | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ||
Accumulated Other Comprehensive Income, Beginning balance | 3,805 | [1],[2] | ' | |
Other comprehensive (loss) income before reclassifications | -3,626 | [1],[2] | ' | |
Amounts reclassified from accumulated other comprehensive (loss) income | -3 | [1],[2] | ' | |
Period change | -3,629 | [1],[2] | ' | |
Accumulated Other Comprehensive Income, Ending balance | 176 | [1],[2] | ' | |
Defined Benefit Pension Plan [Member] | ' | ' | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ||
Accumulated Other Comprehensive Income, Beginning balance | -2,835 | [1],[2] | ' | |
Other comprehensive (loss) income before reclassifications | 1,307 | [1],[2] | ' | |
Amounts reclassified from accumulated other comprehensive (loss) income | 174 | [1],[2] | ' | |
Period change | 1,481 | [1],[2] | ' | |
Accumulated Other Comprehensive Income, Ending balance | ($1,354) | [1],[2] | ' | |
[1] | Amounts in parentheses indicate debits. | |||
[2] | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 34%. |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME, RECLASSIFICATION OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | |
Gain on sale of investment securities | $4 | $85 | |
Compensation and benefits | -12,053 | -10,982 | |
Income tax expense | -1,957 | -1,725 | |
NET INCOME | 6,575 | 5,383 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | |
NET INCOME | -171 | ' | |
Unrealized Gains (Losses) on Securities Available for Sale [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | |
Gain on sale of investment securities | 4 | [1] | ' |
Income tax expense | -1 | [1] | ' |
NET INCOME | 3 | [1] | ' |
Defined Benefit Pension Plan [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | |
Compensation and benefits | -264 | [2] | ' |
Income tax expense | 90 | [2] | ' |
NET INCOME | ($174) | [2] | ' |
[1] | Included in the computation of net periodic pension cost. See Note 12 b Benefit Plans for additional detail. | ||
[2] | Amounts in parentheses indicate debits. |
CASH_AND_CASH_EQUIVALENTS_Deta
CASH AND CASH EQUIVALENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Line Items] | ' | ' |
Cash and cash equivalents | $45,310 | $31,137 |
Cash and due from banks [Member] | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' |
Cash and cash equivalents | 4,218 | 4,697 |
Interest-bearing deposits in other financial institutions [Member] | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' |
Cash and cash equivalents | $41,092 | $26,440 |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Security | Security | |
Investment securities available for sale [Abstract] | ' | ' |
Available for sale, Amortized cost | $123,746,000 | $96,519,000 |
Available-for-sale, Gross unrealized gains | 2,070,000 | 5,769,000 |
Available-for-sale, Gross unrealized losses | -1,804,000 | -4,000 |
Total investment securities available for sale | 124,012,000 | 102,284,000 |
Held-to-maturity [Abstract] | ' | ' |
Held-to-maturity, amortized cost | 1,490,000 | 1,965,000 |
Total Investment Securities [Abstract] | ' | ' |
Total investment securities, amortized cost | 125,236,000 | 98,484,000 |
Total investment securities, gross unrealized gains | 2,261,000 | 6,075,000 |
Total investment securities, gross unrealized losses | -1,805,000 | -4,000 |
Total investment securities, fair value | 125,692,000 | 104,555,000 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ' | ' |
Available-for-sale securities, due in one year or less, amortized cost | 1,645,000 | ' |
Available-for-sale securities, due after one year through five years, amortized cost | 16,666,000 | ' |
Available-for-sale securities, due after five years through ten years, amortized cost | 39,508,000 | ' |
Available-for-sale securities, due after ten years, amortized cost | 20,912,000 | ' |
Total available for sale, amortized cost basis | 78,731,000 | ' |
Mortgage-back securities, available for sale, amortized cost | 45,015,000 | ' |
Total investment and mortgage-backed securities, available for sale, amortized cost | 123,746,000 | ' |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ' | ' |
Available-for-sale securities, due in one year or less, fair value | 1,666,000 | ' |
Available-for-sale securities, due after one year through five years, fair value | 16,961,000 | ' |
Available-for-sale securities, due after five years through ten years, fair value | 39,004,000 | ' |
Available-for-sale securities, due after ten years, fair value | 21,101,000 | ' |
Total available for sale, fair value | 78,732,000 | ' |
Mortgage-backed securities available for sale, fair value | 45,280,000 | ' |
Total investment and mortgage-back securities, available for sale, fair value | 124,012,000 | ' |
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ' | ' |
Held to maturity, due in one year or less, amortized cost | 0 | ' |
Held to maturity, due after one year through five years, amortized cost | 0 | ' |
Held to maturity, due after five years through ten years, amortized cost | 0 | ' |
Held to maturity, due after ten years, amortized cost | 0 | ' |
Total held to maturity, amortized cost | 0 | ' |
Mortgage-backed securities held to maturity, amortized cost | 1,490,000 | ' |
Total investment and mortgage-backed securities held to maturity, amortized cost | 1,490,000 | ' |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ' | ' |
Held to maturity, due in one year or less, fair value | 0 | ' |
Held to maturity, due after one year through five years, fair value | 0 | ' |
Held to maturity, due after five years through ten years, fair value | 0 | ' |
Held to maturity, due after ten years, fair value | 0 | ' |
Total held to maturity, fair value | 0 | ' |
Mortgage-backed securities held to maturity, fair value | 1,680,000 | ' |
Total investment and mortgage-backed securities held to maturity, fair value | 1,680,000 | ' |
Investment securities pledged to secure public deposits | 14,800,000 | 7,000,000 |
Securities holding threshold for analysis (in hundredths) | 10.00% | ' |
Stock in the FHLB | 3,370,000 | 5,431,000 |
Required FHLB holdings | 3,400,000 | ' |
FHLB redemptions totaled | 2,450,000 | 2,226,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' |
Number of securities | 102 | 1 |
Continuous unrealized loss position, less than 12 months, fair value | 61,182,000 | 617,000 |
Continuous unrealized loss position, less than 12 months, unrealized loss | -1,805,000 | -4,000 |
Continuous unrealized loss position, 12 months or longer, fair value | 0 | 0 |
Continuous unrealized loss position, 12 months or longer, unrealized loss | 0 | 0 |
Total continuous unrealized loss position, fair value | 61,182,000 | 617,000 |
Total continuous unrealized loss position, unrealized loss | -1,805,000 | -4,000 |
US Government and federal agencies [Member] | ' | ' |
Investment securities available for sale [Abstract] | ' | ' |
Available for sale, Amortized cost | 18,572,000 | ' |
Available-for-sale, Gross unrealized gains | 4,000 | ' |
Available-for-sale, Gross unrealized losses | -513,000 | ' |
Total investment securities available for sale | 18,063,000 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' |
Number of securities | 13 | ' |
Continuous unrealized loss position, less than 12 months, fair value | 17,028,000 | ' |
Continuous unrealized loss position, less than 12 months, unrealized loss | -513,000 | ' |
Continuous unrealized loss position, 12 months or longer, fair value | 0 | ' |
Continuous unrealized loss position, 12 months or longer, unrealized loss | 0 | ' |
Total continuous unrealized loss position, fair value | 17,028,000 | ' |
Total continuous unrealized loss position, unrealized loss | -513,000 | ' |
State and political subdivisions [Member] | ' | ' |
Investment securities available for sale [Abstract] | ' | ' |
Available for sale, Amortized cost | 60,159,000 | 55,254,000 |
Available-for-sale, Gross unrealized gains | 1,526,000 | 4,360,000 |
Available-for-sale, Gross unrealized losses | -1,016,000 | -4,000 |
Total investment securities available for sale | 60,669,000 | 59,610,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' |
Number of securities | 24 | 1 |
Continuous unrealized loss position, less than 12 months, fair value | 19,646,000 | 617,000 |
Continuous unrealized loss position, less than 12 months, unrealized loss | -1,016,000 | -4,000 |
Continuous unrealized loss position, 12 months or longer, fair value | 0 | 0 |
Continuous unrealized loss position, 12 months or longer, unrealized loss | 0 | 0 |
Total continuous unrealized loss position, fair value | 19,646,000 | 617,000 |
Total continuous unrealized loss position, unrealized loss | -1,016,000 | -4,000 |
Residential mortgage-backed securities issued by quasi-governmental agencies [Member] | ' | ' |
Investment securities available for sale [Abstract] | ' | ' |
Available for sale, Amortized cost | 45,015,000 | 41,265,000 |
Available-for-sale, Gross unrealized gains | 540,000 | 1,409,000 |
Available-for-sale, Gross unrealized losses | -275,000 | 0 |
Total investment securities available for sale | 45,280,000 | 42,674,000 |
Held-to-maturity [Abstract] | ' | ' |
Held-to-maturity, amortized cost | 1,490,000 | 1,965,000 |
Held-to-maturity, gross unrecognized gains | 191,000 | 306,000 |
Held-to-maturity, gross unrecognized losses | -1,000 | 0 |
Held-to-maturity, fair value | 1,680,000 | 2,271,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' |
Number of securities | 65 | ' |
Continuous unrealized loss position, less than 12 months, fair value | 24,508,000 | ' |
Continuous unrealized loss position, less than 12 months, unrealized loss | -276,000 | ' |
Continuous unrealized loss position, 12 months or longer, fair value | 0 | ' |
Continuous unrealized loss position, 12 months or longer, unrealized loss | 0 | ' |
Total continuous unrealized loss position, fair value | 24,508,000 | ' |
Total continuous unrealized loss position, unrealized loss | -276,000 | ' |
Investment and mortgage-backed securities available for sale [Member] | ' | ' |
Total Investment Securities [Abstract] | ' | ' |
Gross realized gains | 13,000 | 112,000 |
Proceeds from the sale of investment and mortgage-backed securities | 2,000,000 | 2,700,000 |
Mortgage-backed securities available for sale [Member] | ' | ' |
Total Investment Securities [Abstract] | ' | ' |
Gross realized losses | 9,000 | 27,000 |
Proceeds from sale of mortgage-backed securities available for sale | $2,000,000 | $1,100,000 |
LOANS_RECEIVABLE_Loan_Receivab
LOANS RECEIVABLE, Loan Receivable Summary (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Held for Investment [Abstract] | ' | ' |
Total loans | $619,455 | $532,031 |
Net deferred loans origination costs and unamortized premiums | 1,288 | 1,611 |
Less allowance for loan losses | -6,575 | -6,922 |
Total loans receivable | 614,168 | 526,720 |
Residential mortgages [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 371,961 | 323,665 |
Held-for-sale [Abstract] | ' | ' |
Loans Held-for-sale, Mortgages | 349 | 706 |
Real estate-commercial [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 129,345 | 104,766 |
Real estate-residential [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 20,005 | 21,570 |
Real estate-multi-family [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 16,623 | 19,118 |
Construction loans [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 8,773 | 16,288 |
Commercial and industrial loans [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 6,849 | 4,646 |
Total commercial loans [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 181,595 | 166,388 |
Home equity and second mortgage [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 64,202 | 40,143 |
Other consumer [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 1,697 | 1,835 |
Total consumer loans [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | 65,899 | 41,978 |
Total residential and consumer Loans [Member] | ' | ' |
Held for Investment [Abstract] | ' | ' |
Total loans | $437,860 | $365,643 |
LOANS_RECEIVABLE_Composition_o
LOANS RECEIVABLE, Composition of Loans by Credit Quality Indicators (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | $619,455,000 | $532,031,000 |
Number of days residential mortgages and consumer loans are placed on non accrual status | '90 days | ' |
Minimum amount of loan balances excluded from evaluation for impairment | 1,000,000 | ' |
Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 155,969,000 | 138,403,000 |
Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 7,661,000 | 9,388,000 |
Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 17,965,000 | 18,597,000 |
Doubtful [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 0 |
Residential Mortgages [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 371,961,000 | 323,665,000 |
Residential Mortgages [Member] | Performing [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 368,967,000 | 321,400,000 |
Residential Mortgages [Member] | Nonperforming [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 2,994,000 | 2,265,000 |
Real estate-commercial [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 129,345,000 | 104,766,000 |
Real estate-commercial [Member] | Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 113,260,000 | 91,446,000 |
Real estate-commercial [Member] | Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 7,142,000 | 4,192,000 |
Real estate-commercial [Member] | Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 8,943,000 | 9,128,000 |
Real estate-commercial [Member] | Doubtful [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 0 |
Real estate-residential [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 20,005,000 | 21,570,000 |
Real estate-residential [Member] | Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 17,182,000 | 19,244,000 |
Real estate-residential [Member] | Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 487,000 | 1,018,000 |
Real estate-residential [Member] | Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 2,336,000 | 1,308,000 |
Real estate-residential [Member] | Doubtful [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 0 |
Real estate-multi-family [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 16,623,000 | 19,118,000 |
Real estate-multi-family [Member] | Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 13,114,000 | 15,751,000 |
Real estate-multi-family [Member] | Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 0 |
Real estate-multi-family [Member] | Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 3,509,000 | 3,367,000 |
Real estate-multi-family [Member] | Doubtful [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 0 |
Construction loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 8,773,000 | 16,288,000 |
Construction loans [Member] | Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 5,596,000 | 7,397,000 |
Construction loans [Member] | Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 4,097,000 |
Construction loans [Member] | Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 3,177,000 | 4,794,000 |
Construction loans [Member] | Doubtful [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 0 |
Commercial and industrial loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 6,849,000 | 4,646,000 |
Commercial and industrial loans [Member] | Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 6,817,000 | 4,565,000 |
Commercial and industrial loans [Member] | Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 32,000 | 81,000 |
Commercial and industrial loans [Member] | Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 0 |
Commercial and industrial loans [Member] | Doubtful [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 0 |
Total commercial loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 181,595,000 | 166,388,000 |
Home equity and second mortgage [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 64,202,000 | 40,143,000 |
Home equity and second mortgage [Member] | Performing [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 63,902,000 | 40,000,000 |
Home equity and second mortgage [Member] | Nonperforming [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 300,000 | 143,000 |
Other consumer [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 1,697,000 | 1,835,000 |
Other consumer [Member] | Performing [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 1,697,000 | 1,827,000 |
Other consumer [Member] | Nonperforming [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 0 | 8,000 |
Total consumer loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 65,899,000 | 41,978,000 |
Total residential and consumer Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 437,860,000 | 365,643,000 |
Total residential and consumer Loans [Member] | Performing [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 434,566,000 | 363,227,000 |
Total residential and consumer Loans [Member] | Nonperforming [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | $3,294,000 | $2,416,000 |
LOANS_RECEIVABLE_Loans_Individ
LOANS RECEIVABLE, Loans Individually Evaluated for Impairment by Class (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Non-performing loans [Abstract] | ' | ' |
Additional interest that would have been recorded | $301,000 | $413,000 |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment, with related allowance, recorded investment | 5,024,000 | 7,471,000 |
Loans individually evaluated for impairment, with no related allowance, recorded investment | 2,380,000 | 609,000 |
Loans individually evaluated for impairment, recorded investment, total | 7,404,000 | 8,080,000 |
Loans individually evaluated for impairment, with related allowance, unpaid principal balance | 5,222,000 | 8,899,000 |
Loans individually evaluated for impairment, with no related allowance, unpaid principal balance | 2,732,000 | 668,000 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 7,954,000 | 9,567,000 |
Impaired Financing Receivable, Related Allowance | 2,226,000 | 1,547,000 |
Impaired Financing Receivable, related allowance unrecorded | 0 | 0 |
Loans individually evaluated for impairment related allowance | 2,226,000 | 1,547,000 |
Loans individually evaluated for impairment, with related allowance, average recorded investment | 5,641,000 | 6,662,000 |
Loans individually evaluated for impairment, with no related allowance, average recorded investment | 1,040,000 | 3,858,000 |
Loans individually evaluated for impairment , average recorded investment | 6,681,000 | 10,520,000 |
Loans individually evaluated for impairment, with related allowance, interest income recognized | 0 | 0 |
Loans individually evaluated for impairment, with no related allowance, interest income recognized | 0 | 0 |
Loans individually evaluated for impairment, interest income recognized | 0 | 0 |
Nonperforming [Member] | ' | ' |
Non-performing loans [Abstract] | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 8,332,000 | 8,359,000 |
Residential mortgages [Member] | ' | ' |
Non-performing loans [Abstract] | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 2,994,000 | 2,265,000 |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment, with related allowance, recorded investment | 1,135,000 | 2,137,000 |
Loans individually evaluated for impairment, with no related allowance, recorded investment | 1,184,000 | 0 |
Loans individually evaluated for impairment, with related allowance, unpaid principal balance | 1,135,000 | 2,214,000 |
Loans individually evaluated for impairment, with no related allowance, unpaid principal balance | 1,184,000 | 0 |
Impaired Financing Receivable, Related Allowance | 128,000 | 218,000 |
Impaired Financing Receivable, related allowance unrecorded | 0 | 0 |
Loans individually evaluated for impairment related allowance | 128,000 | 218,000 |
Loans individually evaluated for impairment, with related allowance, average recorded investment | 1,620,000 | 2,061,000 |
Loans individually evaluated for impairment, with no related allowance, average recorded investment | 241,000 | 698,000 |
Loans individually evaluated for impairment, with related allowance, interest income recognized | 0 | 0 |
Loans individually evaluated for impairment, with no related allowance, interest income recognized | 0 | 0 |
Real estate-commercial [Member] | ' | ' |
Non-performing loans [Abstract] | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 774,000 | 1,098,000 |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment, with related allowance, recorded investment | 0 | 546,000 |
Loans individually evaluated for impairment, with no related allowance, recorded investment | 774,000 | 552,000 |
Loans individually evaluated for impairment, with related allowance, unpaid principal balance | 0 | 1,497,000 |
Loans individually evaluated for impairment, with no related allowance, unpaid principal balance | 774,000 | 552,000 |
Impaired Financing Receivable, Related Allowance | 0 | 296,000 |
Impaired Financing Receivable, related allowance unrecorded | 0 | 0 |
Loans individually evaluated for impairment related allowance | 0 | 296,000 |
Loans individually evaluated for impairment, with related allowance, average recorded investment | 109,000 | 697,000 |
Loans individually evaluated for impairment, with no related allowance, average recorded investment | 607,000 | 1,012,000 |
Loans individually evaluated for impairment, with related allowance, interest income recognized | 0 | 0 |
Loans individually evaluated for impairment, with no related allowance, interest income recognized | 0 | 0 |
Real estate-residential [Member] | ' | ' |
Non-performing loans [Abstract] | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 896,000 | 51,000 |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment, with related allowance, recorded investment | 712,000 | 51,000 |
Loans individually evaluated for impairment, with no related allowance, recorded investment | 184,000 | 0 |
Loans individually evaluated for impairment, with related allowance, unpaid principal balance | 712,000 | 51,000 |
Loans individually evaluated for impairment, with no related allowance, unpaid principal balance | 321,000 | 0 |
Impaired Financing Receivable, Related Allowance | 77,000 | 4,000 |
Impaired Financing Receivable, related allowance unrecorded | 0 | 0 |
Loans individually evaluated for impairment related allowance | 77,000 | 4,000 |
Loans individually evaluated for impairment, with related allowance, average recorded investment | 211,000 | 298,000 |
Loans individually evaluated for impairment, with no related allowance, average recorded investment | 108,000 | 216,000 |
Loans individually evaluated for impairment, with related allowance, interest income recognized | 0 | 0 |
Loans individually evaluated for impairment, with no related allowance, interest income recognized | 0 | 0 |
Real estate-multi-family [Member] | ' | ' |
Non-performing loans [Abstract] | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 191,000 | 0 |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment, with no related allowance, recorded investment | 191,000 | ' |
Loans individually evaluated for impairment, with no related allowance, unpaid principal balance | 372,000 | ' |
Impaired Financing Receivable, related allowance unrecorded | 0 | ' |
Loans individually evaluated for impairment related allowance | 0 | 0 |
Loans individually evaluated for impairment, with no related allowance, average recorded investment | 77,000 | ' |
Loans individually evaluated for impairment, with no related allowance, interest income recognized | 0 | ' |
Construction loans [Member] | ' | ' |
Non-performing loans [Abstract] | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 3,177,000 | 4,794,000 |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment, with related allowance, recorded investment | 3,177,000 | 4,737,000 |
Loans individually evaluated for impairment, with no related allowance, recorded investment | ' | 57,000 |
Loans individually evaluated for impairment, with related allowance, unpaid principal balance | 3,375,000 | 5,137,000 |
Loans individually evaluated for impairment, with no related allowance, unpaid principal balance | ' | 116,000 |
Impaired Financing Receivable, Related Allowance | 2,021,000 | 1,029,000 |
Impaired Financing Receivable, related allowance unrecorded | ' | 0 |
Loans individually evaluated for impairment related allowance | 2,021,000 | 1,029,000 |
Loans individually evaluated for impairment, with related allowance, average recorded investment | 3,701,000 | 3,604,000 |
Loans individually evaluated for impairment, with no related allowance, average recorded investment | ' | 1,932,000 |
Loans individually evaluated for impairment, with related allowance, interest income recognized | 0 | 0 |
Loans individually evaluated for impairment, with no related allowance, interest income recognized | ' | 0 |
Commercial and industrial loans [Member] | ' | ' |
Non-performing loans [Abstract] | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 0 | 0 |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment, with related allowance, recorded investment | ' | 0 |
Loans individually evaluated for impairment, with related allowance, unpaid principal balance | ' | 0 |
Impaired Financing Receivable, Related Allowance | ' | 0 |
Loans individually evaluated for impairment related allowance | 0 | 0 |
Loans individually evaluated for impairment, with related allowance, average recorded investment | ' | 2,000 |
Loans individually evaluated for impairment, with related allowance, interest income recognized | ' | 0 |
Home equity and second mortgage [Member] | ' | ' |
Non-performing loans [Abstract] | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 300,000 | 143,000 |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment, with no related allowance, recorded investment | 47,000 | ' |
Loans individually evaluated for impairment, with no related allowance, unpaid principal balance | 81,000 | ' |
Impaired Financing Receivable, related allowance unrecorded | 0 | ' |
Loans individually evaluated for impairment related allowance | 0 | 0 |
Loans individually evaluated for impairment, with no related allowance, average recorded investment | 7,000 | ' |
Loans individually evaluated for impairment, with no related allowance, interest income recognized | 0 | ' |
Other consumer [Member] | ' | ' |
Non-performing loans [Abstract] | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 0 | 8,000 |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment related allowance | 0 | 0 |
Unallocated [Member] | ' | ' |
Loans Individually Evaluated for Impairment by Class [Abstract] | ' | ' |
Loans individually evaluated for impairment related allowance | $0 | $0 |
LOANS_RECEIVABLE_Contractual_A
LOANS RECEIVABLE, Contractual Aging of Delinquent Loans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Receivable, Aging [Abstract] | ' | ' |
Loans receivable, Current | $609,752 | $521,262 |
Loans receivable, 30-59 days past due | 1,438 | 2,026 |
Loans receivable, 60-89 days past due | 348 | 456 |
Loans receivable, Loan past due 90 days or more | 7,917 | 8,287 |
Loans receivable, Total past due | 9,703 | 10,769 |
Total loans | 619,455 | 532,031 |
Recorded investment over 90 days and accruing interest | 0 | 0 |
Residential mortgages [Member] | ' | ' |
Loans Receivable, Aging [Abstract] | ' | ' |
Loans receivable, Current | 369,271 | 319,982 |
Loans receivable, 30-59 days past due | 111 | 1,161 |
Loans receivable, 60-89 days past due | 0 | 329 |
Loans receivable, Loan past due 90 days or more | 2,579 | 2,193 |
Loans receivable, Total past due | 2,690 | 3,683 |
Total loans | 371,961 | 323,665 |
Recorded investment over 90 days and accruing interest | 0 | 0 |
Real estate-commercial [Member] | ' | ' |
Loans Receivable, Aging [Abstract] | ' | ' |
Loans receivable, Current | 127,786 | 102,868 |
Loans receivable, 30-59 days past due | 785 | 800 |
Loans receivable, 60-89 days past due | 0 | 0 |
Loans receivable, Loan past due 90 days or more | 774 | 1,098 |
Loans receivable, Total past due | 1,559 | 1,898 |
Total loans | 129,345 | 104,766 |
Recorded investment over 90 days and accruing interest | 0 | 0 |
Real estate-residential [Member] | ' | ' |
Loans Receivable, Aging [Abstract] | ' | ' |
Loans receivable, Current | 18,589 | 21,488 |
Loans receivable, 30-59 days past due | 180 | 31 |
Loans receivable, 60-89 days past due | 340 | 0 |
Loans receivable, Loan past due 90 days or more | 896 | 51 |
Loans receivable, Total past due | 1,416 | 82 |
Total loans | 20,005 | 21,570 |
Recorded investment over 90 days and accruing interest | 0 | 0 |
Real estate-multi-family [Member] | ' | ' |
Loans Receivable, Aging [Abstract] | ' | ' |
Loans receivable, Current | 16,432 | 19,118 |
Loans receivable, 30-59 days past due | 0 | 0 |
Loans receivable, 60-89 days past due | 0 | 0 |
Loans receivable, Loan past due 90 days or more | 191 | 0 |
Loans receivable, Total past due | 191 | 0 |
Total loans | 16,623 | 19,118 |
Recorded investment over 90 days and accruing interest | 0 | 0 |
Construction loans [Member] | ' | ' |
Loans Receivable, Aging [Abstract] | ' | ' |
Loans receivable, Current | 5,596 | 11,494 |
Loans receivable, 30-59 days past due | 0 | 0 |
Loans receivable, 60-89 days past due | 0 | 0 |
Loans receivable, Loan past due 90 days or more | 3,177 | 4,794 |
Loans receivable, Total past due | 3,177 | 4,794 |
Total loans | 8,773 | 16,288 |
Recorded investment over 90 days and accruing interest | 0 | 0 |
Commercial and industrial loans [Member] | ' | ' |
Loans Receivable, Aging [Abstract] | ' | ' |
Loans receivable, Current | 6,849 | 4,646 |
Loans receivable, 30-59 days past due | 0 | 0 |
Loans receivable, 60-89 days past due | 0 | 0 |
Loans receivable, Loan past due 90 days or more | 0 | 0 |
Loans receivable, Total past due | 0 | 0 |
Total loans | 6,849 | 4,646 |
Recorded investment over 90 days and accruing interest | 0 | 0 |
Home equity and second mortgage [Member] | ' | ' |
Loans Receivable, Aging [Abstract] | ' | ' |
Loans receivable, Current | 63,543 | 39,842 |
Loans receivable, 30-59 days past due | 355 | 34 |
Loans receivable, 60-89 days past due | 4 | 124 |
Loans receivable, Loan past due 90 days or more | 300 | 143 |
Loans receivable, Total past due | 659 | 301 |
Total loans | 64,202 | 40,143 |
Recorded investment over 90 days and accruing interest | 0 | 0 |
Other consumer [Member] | ' | ' |
Loans Receivable, Aging [Abstract] | ' | ' |
Loans receivable, Current | 1,686 | 1,824 |
Loans receivable, 30-59 days past due | 7 | 0 |
Loans receivable, 60-89 days past due | 4 | 3 |
Loans receivable, Loan past due 90 days or more | 0 | 8 |
Loans receivable, Total past due | 11 | 11 |
Total loans | 1,697 | 1,835 |
Recorded investment over 90 days and accruing interest | $0 | $0 |
LOANS_RECEIVABLE_Details_Activ
LOANS RECEIVABLE (Details), Activity in the Allowance for Loan Losses (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | $6,922 | $8,100 |
Provision | 839 | 2,400 |
Charge-offs | -1,235 | -3,660 |
Recoveries | 49 | 82 |
Balance, end of period | 6,575 | 6,922 |
Residential mortgages [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | 1,849 | 2,194 |
Provision | 326 | 367 |
Charge-offs | -465 | -768 |
Recoveries | 12 | 56 |
Balance, end of period | 1,722 | 1,849 |
Real estate-commercial [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | 1,754 | 2,352 |
Provision | -99 | 353 |
Charge-offs | -435 | -951 |
Recoveries | 0 | 0 |
Balance, end of period | 1,220 | 1,754 |
Real estate-residential [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | 608 | 369 |
Provision | -81 | 726 |
Charge-offs | -90 | -487 |
Recoveries | 0 | 0 |
Balance, end of period | 437 | 608 |
Real estate-multi-family [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | 245 | 350 |
Provision | -109 | -105 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 136 | 245 |
Construction loans [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | 1,697 | 1,830 |
Provision | 647 | 1,049 |
Charge-offs | -150 | -1,182 |
Recoveries | 14 | 0 |
Balance, end of period | 2,208 | 1,697 |
Commercial and industrial loans [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | 119 | 138 |
Provision | -21 | 115 |
Charge-offs | -10 | -156 |
Recoveries | 9 | 22 |
Balance, end of period | 97 | 119 |
Home equity and second mortgage [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | 251 | 448 |
Provision | 13 | -104 |
Charge-offs | -58 | -93 |
Recoveries | 8 | 0 |
Balance, end of period | 214 | 251 |
Other consumer [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | 11 | 22 |
Provision | 60 | 8 |
Charge-offs | -27 | -23 |
Recoveries | 6 | 4 |
Balance, end of period | 50 | 11 |
Unallocated [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of period | 388 | 397 |
Provision | 103 | -9 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | $491 | $388 |
LOANS_RECEIVABLE_Allowance_for
LOANS RECEIVABLE, Allowance for Loan Losses, Ending Loan Balances by Portfolio and by Class based on Impairment Method (Details) (USD $) | Dec. 31, 2013 | Jul. 02, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | $0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 2,226 | ' | 1,547 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 4,349 | ' | 5,375 |
Loans receivable, allowance for credit losses, evaluated for impairment | 6,575 | ' | 6,922 |
Loans receivable [Abstract] | ' | ' | ' |
Loan balance, acquired with credit deterioration | 95,012 | ' | ' |
Loan balance, acquired with credit deterioration | 444 | 797 | ' |
Loan balance, individually evaluated for impairment | 6,960 | ' | 8,080 |
Loans balance, collectively evaluated for impairment | 517,039 | ' | 523,951 |
Loan balance, evaluated for impairment | 619,455 | ' | 532,031 |
Residential mortgages [Member] | ' | ' | ' |
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 128 | ' | 218 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 1,594 | ' | 1,631 |
Loans receivable, allowance for credit losses, evaluated for impairment | 1,722 | ' | 1,849 |
Loans receivable [Abstract] | ' | ' | ' |
Loan balance, acquired with credit deterioration | 50,985 | ' | ' |
Loan balance, acquired with credit deterioration | 22 | ' | ' |
Loan balance, individually evaluated for impairment | 2,297 | ' | 2,137 |
Loans balance, collectively evaluated for impairment | 318,657 | ' | 321,528 |
Loan balance, evaluated for impairment | 371,961 | ' | 323,665 |
Real estate-commercial [Member] | ' | ' | ' |
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 0 | ' | 296 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 1,220 | ' | 1,458 |
Loans receivable, allowance for credit losses, evaluated for impairment | 1,220 | ' | 1,754 |
Loans receivable [Abstract] | ' | ' | ' |
Loan balance, acquired with credit deterioration | 12,787 | ' | ' |
Loan balance, acquired with credit deterioration | 0 | ' | ' |
Loan balance, individually evaluated for impairment | 774 | ' | 1,098 |
Loans balance, collectively evaluated for impairment | 115,784 | ' | 103,668 |
Loan balance, evaluated for impairment | 129,345 | ' | 104,766 |
Real estate-residential [Member] | ' | ' | ' |
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 77 | ' | 4 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 360 | ' | 604 |
Loans receivable, allowance for credit losses, evaluated for impairment | 437 | ' | 608 |
Loans receivable [Abstract] | ' | ' | ' |
Loan balance, acquired with credit deterioration | 4,913 | ' | ' |
Loan balance, acquired with credit deterioration | 184 | ' | ' |
Loan balance, individually evaluated for impairment | 712 | ' | 51 |
Loans balance, collectively evaluated for impairment | 14,196 | ' | 21,519 |
Loan balance, evaluated for impairment | 20,005 | ' | 21,570 |
Real estate-multi-family [Member] | ' | ' | ' |
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 0 | ' | 0 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 136 | ' | 245 |
Loans receivable, allowance for credit losses, evaluated for impairment | 136 | ' | 245 |
Loans receivable [Abstract] | ' | ' | ' |
Loan balance, acquired with credit deterioration | 1,116 | ' | ' |
Loan balance, acquired with credit deterioration | 191 | ' | ' |
Loan balance, individually evaluated for impairment | 0 | ' | 0 |
Loans balance, collectively evaluated for impairment | 15,316 | ' | 19,118 |
Loan balance, evaluated for impairment | 16,623 | ' | 19,118 |
Construction loans [Member] | ' | ' | ' |
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 2,021 | ' | 1,029 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 187 | ' | 668 |
Loans receivable, allowance for credit losses, evaluated for impairment | 2,208 | ' | 1,697 |
Loans receivable [Abstract] | ' | ' | ' |
Loan balance, acquired with credit deterioration | 0 | ' | ' |
Loan balance, acquired with credit deterioration | 0 | ' | ' |
Loan balance, individually evaluated for impairment | 3,177 | ' | 4,794 |
Loans balance, collectively evaluated for impairment | 5,596 | ' | 11,494 |
Loan balance, evaluated for impairment | 8,773 | ' | 16,288 |
Commercial and industrial loans [Member] | ' | ' | ' |
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 0 | ' | 0 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 97 | ' | 119 |
Loans receivable, allowance for credit losses, evaluated for impairment | 97 | ' | 119 |
Loans receivable [Abstract] | ' | ' | ' |
Loan balance, acquired with credit deterioration | 279 | ' | ' |
Loan balance, acquired with credit deterioration | 0 | ' | ' |
Loan balance, individually evaluated for impairment | 0 | ' | 0 |
Loans balance, collectively evaluated for impairment | 6,570 | ' | 4,646 |
Loan balance, evaluated for impairment | 6,849 | ' | 4,646 |
Home equity and second mortgage [Member] | ' | ' | ' |
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 0 | ' | 0 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 214 | ' | 251 |
Loans receivable, allowance for credit losses, evaluated for impairment | 214 | ' | 251 |
Loans receivable [Abstract] | ' | ' | ' |
Loan balance, acquired with credit deterioration | 24,806 | ' | ' |
Loan balance, acquired with credit deterioration | 47 | ' | ' |
Loan balance, individually evaluated for impairment | 0 | ' | 0 |
Loans balance, collectively evaluated for impairment | 39,349 | ' | 40,143 |
Loan balance, evaluated for impairment | 64,202 | ' | 40,143 |
Other consumer [Member] | ' | ' | ' |
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 0 | ' | 0 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 50 | ' | 11 |
Loans receivable, allowance for credit losses, evaluated for impairment | 50 | ' | 11 |
Loans receivable [Abstract] | ' | ' | ' |
Loan balance, acquired with credit deterioration | 126 | ' | ' |
Loan balance, acquired with credit deterioration | 0 | ' | ' |
Loan balance, individually evaluated for impairment | 0 | ' | 0 |
Loans balance, collectively evaluated for impairment | 1,571 | ' | 1,835 |
Loan balance, evaluated for impairment | 1,697 | ' | 1,835 |
Unallocated [Member] | ' | ' | ' |
Allowance for loan losses [Abstract] | ' | ' | ' |
Loans receivable, allowance for credit losses, acquired without credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, acquired with credit deterioration | 0 | ' | ' |
Loans receivable, allowance for credit losses, individually evaluated for impairment | 0 | ' | 0 |
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 491 | ' | 388 |
Loans receivable, allowance for credit losses, evaluated for impairment | $491 | ' | $388 |
LOANS_RECEIVABLE_Loans_Classif
LOANS RECEIVABLE, Loans Classified as TDRs Segregation by Class (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jul. 02, 2013 | |
Contract | Contract | ||
Troubled Debt Restructuring Segregated by Class [Abstract] | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 0 | 2 | ' |
Pre-Modification Outstanding Recorded Investment | $0 | $950,000 | ' |
Post Modification Outstanding Recorded Investment | 0 | 923,000 | ' |
Financing Receivable Subsequent Default Number Of Contracts | 1 | ' | ' |
Financing Receivable Subsequent Default Recorded Investment | 337,000 | ' | ' |
Loans Receivable, Troubled Debt Restructuring, Allowance for Credit Losses Charge off | ' | 40,000 | ' |
Concentration of loans threshold percentage (in hundredths) | 10.00% | 10.00% | ' |
Aggregate dollar amount of loans with related parties | 210,000 | 125,000 | ' |
Acquired loans to related parties | 188,000 | ' | ' |
Principal repayments from related parties | 103,000 | ' | ' |
Unused lines of credit available | 360,000 | 360,000 | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' |
Accretable discount | 154,000 | 0 | ' |
Changes in the amortizable yield for purchased credit-impaired loans [Abstract] | ' | ' | ' |
Balance at beginning of period | 0 | ' | ' |
Acquisition of impaired loans | 198,000 | ' | ' |
Accretion | -44,000 | ' | ' |
Balance at end of period | 154,000 | 0 | ' |
Loans acquired and accounted for in accordance with ASC 310-30 [Abstract] | ' | ' | ' |
Outstanding balance | 1,508,000 | ' | 1,958,000 |
Carrying amount | 444,000 | ' | 797,000 |
Roebling Financial Corp, Inc. [Member] | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' |
Unpaid principal balance | ' | ' | 1,320,000 |
Interest | ' | ' | 638,000 |
Contractual cash flows | ' | ' | 1,958,000 |
Non-accretable discount | ' | ' | -963,000 |
Expected cash flows at acquisition | ' | ' | 995,000 |
Accretable discount | ' | ' | -198,000 |
Total | ' | ' | 797,000 |
Changes in the amortizable yield for purchased credit-impaired loans [Abstract] | ' | ' | ' |
Balance at beginning of period | ' | ' | -198,000 |
Balance at end of period | ' | ' | -198,000 |
Residential mortgages [Member] | ' | ' | ' |
Troubled Debt Restructuring Segregated by Class [Abstract] | ' | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 0 | 2 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 950,000 | ' |
Post Modification Outstanding Recorded Investment | 0 | 923,000 | ' |
Financing Receivable Subsequent Default Number Of Contracts | 1 | ' | ' |
Financing Receivable Subsequent Default Recorded Investment | 337,000 | ' | ' |
Loans acquired and accounted for in accordance with ASC 310-30 [Abstract] | ' | ' | ' |
Carrying amount | $22,000 | ' | ' |
LOAN_SERVICING_Details
LOAN SERVICING (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Mortgage loan servicing portfolios [Abstract] | ' | ' |
Loans serviced for others | $161,541,000 | $136,206,000 |
Custodial balances maintained in connection with the foregoing loan servicing | 1,700,000 | 2,800,000 |
Net servicing (loss) | 338,000 | -66,000 |
FHLMC [Member] | ' | ' |
Mortgage loan servicing portfolios [Abstract] | ' | ' |
Loans serviced for others | 154,000 | 235,000 |
FNMA [Member] | ' | ' |
Mortgage loan servicing portfolios [Abstract] | ' | ' |
Loans serviced for others | 150,670,000 | 127,677,000 |
Other investors [Member] | ' | ' |
Mortgage loan servicing portfolios [Abstract] | ' | ' |
Loans serviced for others | $10,717,000 | $8,294,000 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | $20,095,000 | $18,149,000 |
Less accumulated depreciation | 13,788,000 | 13,640,000 |
Premises and equipment subtotal | 6,307,000 | 4,509,000 |
Property, Plant and Equipment, Net, Total | 8,616,000 | 6,108,000 |
Depreciation expense | 672,000 | 781,000 |
Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and Equipment Estimated useful lives | '30 years | ' |
Premises and equipment | 9,559,000 | 7,614,000 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | 3,216,000 | 3,243,000 |
Leasehold improvements [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and Equipment Estimated useful lives | '5 years | ' |
Leasehold improvements [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and Equipment Estimated useful lives | '10 years | ' |
Furniture, fixtures and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | 7,320,000 | 7,292,000 |
Furniture, fixtures and equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and Equipment Estimated useful lives | '3 years | ' |
Furniture, fixtures and equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and Equipment Estimated useful lives | '7 years | ' |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | $2,309,000 | $1,599,000 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
DEPOSITS [Abstract] | ' | ' |
Noninterest-bearing checking | $68,133,000 | $52,433,000 |
Interest-bearing checking | 114,184,000 | 76,370,000 |
Money market | 180,215,000 | 153,827,000 |
Passbook savings | 130,878,000 | 106,268,000 |
Total demand, transaction and passbook deposits | 493,410,000 | 388,898,000 |
Certificates of deposit | 190,492,000 | 171,417,000 |
Deposits | 683,902,000 | 560,315,000 |
Certificates of deposit with a minimum of $100,000 | 47,900,000 | 50,700,000 |
Scheduled maturities of certificates of deposit [Abstract] | ' | ' |
2014 | 129,723,000 | ' |
2015 | 35,829,000 | ' |
2016 | 11,901,000 | ' |
2017 | 7,172,000 | ' |
2018 | 5,737,000 | ' |
Thereafter | 130,000 | ' |
Certificates of deposit | 190,492,000 | 171,417,000 |
Related party deposits | $5,300,000 | $5,000,000 |
ADVANCES_FROM_THE_FHLB_Details
ADVANCES FROM THE FHLB (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ADVANCES FROM THE FHLB [Abstract] | ' | ' |
Weighted average interest rate on principal payments due (in hundredths) | 1.59% | 1.88% |
Federal Home Loan Bank, Advances, Principal Payments Due [Abstract] | ' | ' |
Amount of principal due during the next twelve months | $4,287,000 | $11,051,000 |
Year two | 3,669,000 | 4,287,000 |
Year three | 10,887,000 | 3,669,000 |
Year four | 14,895,000 | 10,887,000 |
Year five | 1,330,000 | 14,895,000 |
Year six | ' | 1,330,000 |
Thereafter | 14,537,000 | 14,537,000 |
Advances total | 49,605,000 | 60,656,000 |
Federal Home Loan Bank, Advances, Maturities Weighted Average Interest Rate [Abstract] | ' | ' |
One year (in hundredths) | 2.40% | 3.18% |
Two years (in hundredths) | 2.16% | 2.40% |
Three years (in hundredths) | 1.38% | 2.16% |
Four years (in hundredths) | 1.12% | 1.38% |
Five years (in hundredths) | 1.87% | 1.12% |
Six years (in hundredths) | ' | 1.87% |
Thereafter (in hundredths) | 1.83% | 1.83% |
FHLB Advance Disclosures [Abstract] | ' | ' |
Advances collateralized totaling approximately | 353,500,000 | ' |
Maximum borrowing capacity | 271,100,000 | ' |
Total unused lines of credit at the FHLB | $60,000,000 | ' |
BENEFIT_PLANS_Defined_Contribu
BENEFIT PLANS, Defined Contribution Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Contribution Plan [Abstract] | ' | ' |
Maximum annual contribution of pretax eligible compensation (in hundredths) | 50.00% | ' |
Employer matching contribution of the initial 1,000 deferral (in hundredths) | 75.00% | ' |
Initial deferral threshold for matching contribution | $1,000 | ' |
Matching contribution amount | $75,000 | $78,000 |
BENEFIT_PLANS_Defined_Benefit_
BENEFIT PLANS, Defined Benefit Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan [Abstract] | ' | ' |
Vesting period for qualifying service | '5 years | ' |
Reconciliation of projected benefit obligation [Roll Forward] | ' | ' |
Benefit obligation at beginning of year | $8,940,000 | $8,045,000 |
Service cost | 823,000 | 736,000 |
Interest cost | 355,000 | 360,000 |
Actuarial (gain) loss | -1,116,000 | 339,000 |
Amendments | 0 | 0 |
Benefits paid | -769,000 | -540,000 |
Benefits obligation at end of year | 8,233,000 | 8,940,000 |
Reconciliation of fair value of assets [Roll Forward] | ' | ' |
Fair value of plan assets at beginning of year | 9,767,000 | 8,006,000 |
Actual return on plan assets | 1,593,000 | 801,000 |
Employer contribution | 654,000 | 1,500,000 |
Benefits paid | -769,000 | -540,000 |
Fair value of plan assets at end of year | 11,245,000 | 9,767,000 |
Funded status at end of year | 3,012,000 | 827,000 |
Accumulated benefit obligation | 7,100,000 | 8,100,000 |
Expected employer contribution, next fiscal year | 0 | ' |
Amounts recognized in accumulated other comprehensive income [Abstract] | ' | ' |
Net loss | -2,028,000 | -4,270,000 |
Prior service cost | -23,000 | -27,000 |
Total | -2,051,000 | -4,297,000 |
The net (loss) gain recognized in accumulated other comprehensive income as an adjustment to the funded status of the plan | 2,200,000 | 103,000 |
Expected amortization of net actuarial loss and prior service cost | 76,000 | ' |
Weighted-average assumptions used to determine benefit obligations: [Abstract] | ' | ' |
Discount rate (in hundredths) | 5.00% | 4.00% |
Rate of compensation increase (in hundredths) | 3.00% | 3.00% |
Components of net periodic benefit cost [Abstract] | ' | ' |
Service cost | 823,000 | 736,000 |
Interest cost | 355,000 | 360,000 |
Expected return on plan assets | -728,000 | -644,000 |
Amortization of prior service cost | 2,000 | 2,000 |
Recognized net actuarial loss | 262,000 | 283,000 |
Net periodic benefit cost | 714,000 | 737,000 |
Weighted-average assumptions used to determine net benefit costs [Abstract] | ' | ' |
Discount rate (in hundredths) | 4.00% | 4.50% |
Expected return on plan assets (in hundredths) | 7.50% | 8.00% |
Rate of compensation increase (in hundredths) | 3.00% | 4.00% |
Estimated future benefits payments are as follows: [Abstract] | ' | ' |
2014 | 202,000 | ' |
2015 | 234,000 | ' |
2016 | 277,000 | ' |
2017 | 282,000 | ' |
2018 | 319,000 | ' |
2019-2023 | 2,058,000 | ' |
Defined Benefit Plan's Financial Assets at Fair Value Disclosure [Line Items] | ' | ' |
Collective investment trust funds | 11,245,000 | 9,767,000 |
Total Plan assets at fair value | 11,245,000 | 9,767,000 |
The plan's weighted-average asset allocations [Abstract] | ' | ' |
Total asset allocation by asset category (in hundredths) | 100.00% | 100.00% |
Collective investment trust funds [Member] | ' | ' |
The plan's weighted-average asset allocations [Abstract] | ' | ' |
Total asset allocation by asset category (in hundredths) | 100.00% | 100.00% |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Reconciliation of fair value of assets [Roll Forward] | ' | ' |
Fair value of plan assets at end of year | 0 | 0 |
Defined Benefit Plan's Financial Assets at Fair Value Disclosure [Line Items] | ' | ' |
Collective investment trust funds | 0 | 0 |
Total Plan assets at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Reconciliation of fair value of assets [Roll Forward] | ' | ' |
Fair value of plan assets at end of year | 11,245,000 | 9,767,000 |
Defined Benefit Plan's Financial Assets at Fair Value Disclosure [Line Items] | ' | ' |
Collective investment trust funds | 11,245,000 | 9,767,000 |
Total Plan assets at fair value | 11,245,000 | 9,767,000 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Reconciliation of fair value of assets [Roll Forward] | ' | ' |
Fair value of plan assets at end of year | 0 | 0 |
Defined Benefit Plan's Financial Assets at Fair Value Disclosure [Line Items] | ' | ' |
Collective investment trust funds | 0 | 0 |
Total Plan assets at fair value | $0 | $0 |
BENEFIT_PLANS_ESOP_Details
BENEFIT PLANS, ESOP (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
ESOP [Abstract] | ' | ' |
Service requirement to become eligible for the ESOP | '6 months | ' |
ESOP debt | $4,200,000 | ' |
Shares purchased for the ESOP (in shares) | 423,200 | ' |
Employee Stock Ownership Plan (ESOP), Compensation Expense | 284,000 | 286,000 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | ' | ' |
Allocated shares (in shares) | 187,000 | 184,000 |
Unreleased shares (in shares) | 90,000 | 103,000 |
Total ESOP shares (in shares) | 277,000 | 287,000 |
Fair value of unreleased shares | $2,534,000 | $2,446,000 |
BENEFIT_PLANS_Stockbased_Compe
BENEFIT PLANS, Stock-based Compensation Plans (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Options, Outstanding [Roll Forward] | ' | ' |
Options granted (in shares) | ' | 0 |
Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise price range lower limit (in dollars per share) | $25.71 | $23.53 |
Exercise price range upper limit (in dollars per share) | $32.51 | $32.51 |
Aggregate intrinsic value of [Abstract] | ' | ' |
Options outstanding | $1,132,000 | $179,000 |
Options exercisable | 342,000 | 144,000 |
Options exercised | 5,000 | 1,000 |
Cash receipts | 216,000 | 7,000 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Total stock based compensation expense | 457,000 | 176,000 |
Directors fees [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Total stock based compensation expense | 145,000 | 149,000 |
Stock option expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Tax benefit from compensation expense | 94,000 | 9,000 |
Nonvested awards compensation cost not yet recognized | 340,000 | ' |
Nonvested awards compensation cost not yet recognized, period for recognition | '7 months | ' |
Total stock based compensation expense | $312,000 | $27,000 |
$19.67 - 26.90 [Member] | ' | ' |
Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise price range lower limit (in dollars per share) | $19.67 | ' |
Exercise price range upper limit (in dollars per share) | $26.90 | ' |
Number of options outstanding (in shares) | 254,144 | ' |
Weighted average remaining contractual life (years) of options outstanding | '2 years 9 months 22 days | ' |
Weighted average exercise price of options outstanding (in dollars per share) | $23.71 | ' |
Options exercisable (in shares) | 50,644 | ' |
Weighted average exercise price of options exercisable (in dollars per share) | $21.41 | ' |
Stock Options [Member] | ' | ' |
Options, Outstanding [Roll Forward] | ' | ' |
Outstanding at beginning of year (in shares) | 89,279 | 109,765 |
Options granted (in shares) | 205,000 | 0 |
Options exercised (in shares) | -8,547 | -315 |
Options forfeited (in shares) | -4,271 | -1,904 |
Options expired (in shares) | -27,317 | -18,267 |
Outstanding at end of year (in shares) | 254,144 | 89,279 |
Options exercisable (in shares) | 50,644 | 80,652 |
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' |
Outstanding at beginning of year weighted average exercise price beginning balance (in dollars per share) | $24.08 | $24.41 |
Weighted average exercise price of options granted (in dollars per share) | $24.28 | $0 |
Weighted average exercise price of options exercised (in dollars per share) | $25.24 | $19.67 |
Weighted average exercise price of options forfeited (in dollars per share) | $27.10 | $28.59 |
Weighted average exercise price of options expired (in dollars per share) | $28.19 | $25.68 |
Outstanding at ending of year weighted average exercise price beginning balance (in dollars per share) | $23.71 | $24.08 |
Weighted average exercise price of options exercisable (in dollars per share) | $21.41 | $24.55 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Federal [Abstract] | ' | ' |
Current | $1,822,000 | $524,000 |
Deferred | -75,000 | 1,194,000 |
Total Federal income tax component | 1,747,000 | 1,718,000 |
Sate and local-current | 210,000 | 7,000 |
Income tax provision | 1,957,000 | 1,725,000 |
Effective income tax rate reconciliation [Abstract] | ' | ' |
Statutory federal income tax (in hundredths) | 34.00% | 34.00% |
(Decrease) increase resulting from Tax-exempt income (in hundredths) | -8.10% | -10.30% |
State tax, net of federal benefit (in hundredths) | 1.60% | 0.10% |
Other (in hundredths) | -4.60% | 0.50% |
Effective income tax rate (in hundredths) | 22.90% | 24.30% |
Deferred tax assets [Abstract] | ' | ' |
Deferred compensation | 484,000 | 138,000 |
Allowance for loan losses, net | 2,236,000 | 2,353,000 |
Stock compensation | 147,000 | 78,000 |
Adjustment to record funded status of pension plan | 697,000 | 1,462,000 |
Non accrual interest | 209,000 | 333,000 |
Adjustment for real estate acquired thru foreclosure | 0 | 20,000 |
Acquisition related | 355,000 | 0 |
Net operating loss carryforward acquired | 327,000 | 0 |
Other | 18,000 | 5,000 |
Total deferred tax assets | 4,473,000 | 4,389,000 |
Deferred tax liabilities [Abstract] | ' | ' |
Accrued pension expense | 1,721,000 | 1,704,000 |
Unrealized gain on securities available for sale | 90,000 | 1,960,000 |
Prepaid expenses | 51,000 | 151,000 |
Deferred loan costs | 1,123,000 | 1,172,000 |
Amortization of goodwill | 1,470,000 | 1,470,000 |
Fixed assets | 580,000 | 296,000 |
Total deferred tax liabilities | 5,035,000 | 6,753,000 |
Net deferred tax liability | -562,000 | -2,364,000 |
Non recapture of bad debt deductions | 5,700,000 | ' |
Amount of unrecognized deferred tax liability | $1,900,000 | ' |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Actual Amount [Abstract] | ' | ' |
Tangible capital (to tangible assets) | $86,550 | $73,612 |
Core capital (to adjusted tangible assets) | 86,550 | 73,612 |
Tier 1 capital (to risk weighted assets) | 86,550 | 73,612 |
Total Risk | 93,125 | 79,161 |
Actual Ratio [Abstract] | ' | ' |
Tangible capital (to tangible assets) (in hundredths) | 10.35% | 10.45% |
Core capital (to adjusted tangible assets) (in hundredths) | 10.35% | 10.45% |
Tier 1 capital (to risk weighted assets) (in hundredths) | 16.23% | 16.63% |
Total Risk (in hundredths) | 17.46% | 17.89% |
For Capital Adequacy Purposes Amount [Abstract] | ' | ' |
Tangible capital (to tangible assets) | 12,544 | 10,562 |
Core capital (to adjusted tangible assets) | 33,450 | 28,164 |
Tier 1 capital (to risk weighted assets) | 21,334 | 17,703 |
Total Risk | 42,668 | 35,407 |
For Capital Adequacy Purposes Ratio [Abstract] | ' | ' |
Tangible capital (to tangible assets) (in hundredths) | 1.50% | 1.50% |
Core capital (to adjusted tangible assets) (in hundredths) | 4.00% | 4.00% |
Tier 1 capital (to risk weighted assets) (in hundredths) | 4.00% | 4.00% |
Total Risk (in hundredths) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount [Abstract] | ' | ' |
Tangible capital (to tangible assets) | 0 | 0 |
Core capital (to adjusted tangible assets) | 41,812 | 35,206 |
Tier 1 capital (to risk weighted assets) | 32,001 | 26,555 |
Total Risk | $53,336 | $44,259 |
To Be Well Capitalized Under Prompt Corrective Action Provision Ratio [Abstract] | ' | ' |
Core capital (to adjusted tangible assets) (in hundredths) | 5.00% | 5.00% |
Tier 1 capital (to risk weighted assets) (in hundredths) | 6.00% | 6.00% |
Total Risk (in hundredths) | 10.00% | 10.00% |
FINANCIAL_INSTRUMENTS_WITH_OFF2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Credit risk of off-balance sheet risks [Line Items] | ' | ' |
Contract amounts of which represent credit risk | $78,519 | $75,401 |
Commitments to Extend Credit [Member] | ' | ' |
Credit risk of off-balance sheet risks [Line Items] | ' | ' |
Contract amounts of which represent credit risk | 77,663 | 74,571 |
Standby Letters of Credit [Member] | ' | ' |
Credit risk of off-balance sheet risks [Line Items] | ' | ' |
Contract amounts of which represent credit risk | 856 | 780 |
Loans Sold with Recourse [Member] | ' | ' |
Credit risk of off-balance sheet risks [Line Items] | ' | ' |
Contract amounts of which represent credit risk | $0 | $50 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments [Line Items] | ' | ' |
Rental expense | $594,000 | $554,000 |
Minimum annual rental commitments of the Bank under all non-cancelable leases [Abstract] | ' | ' |
2014 | 489,000 | ' |
2015 | 399,000 | ' |
2016 | 329,000 | ' |
2017 | 294,000 | ' |
2018 | 294,000 | ' |
Thereafter | 888,000 | ' |
Total | 2,693,000 | ' |
Contingent liability benefit reimbursement period | '1 year | ' |
Change of control contingent liability | 2,200,000 | ' |
Maximum [Member] | ' | ' |
Commitments [Line Items] | ' | ' |
Lease terms | '10 years | ' |
Optional commitments to sell mortgage loans to investors [Member] | ' | ' |
Commitments [Line Items] | ' | ' |
Commitments | $1,700,000 | $7,500,000 |
SIGNIFICANT_CONCENTRATIONS_OF_1
SIGNIFICANT CONCENTRATIONS OF CREDIT RISK (Details) (Product Concentration Risk [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Product Concentration Risk [Member] | ' |
Concentration Risk [Line Items] | ' |
Maximum amortization terms on loan origination | '30 years |
Loan to value ratio (in hundredths) | 80.00% |
FAIR_VALUE_MEASUREMENTS_AND_FA2
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investment securities available for sale [Abstract] | ' | ' |
Total investment securities available for sale | $124,012 | $102,284 |
Recurring [Member] | ' | ' |
Investment securities available for sale [Abstract] | ' | ' |
U.S. Government and federal agencies | 18,063 | ' |
State and political subdivisions | 60,669 | 59,610 |
Residential mortgage-backed securities issued by quasi- governmental agencies | 45,280 | 42,674 |
Total investment securities available for sale | 124,012 | 102,284 |
Loans receivable, held for sale | 349 | 706 |
Level 1 [Member] | Recurring [Member] | ' | ' |
Investment securities available for sale [Abstract] | ' | ' |
U.S. Government and federal agencies | 0 | ' |
State and political subdivisions | 0 | 0 |
Residential mortgage-backed securities issued by quasi- governmental agencies | 0 | 0 |
Total investment securities available for sale | 0 | 0 |
Loans receivable, held for sale | 0 | 0 |
Level 2 [Member] | Recurring [Member] | ' | ' |
Investment securities available for sale [Abstract] | ' | ' |
U.S. Government and federal agencies | 18,063 | ' |
State and political subdivisions | 60,669 | 59,610 |
Residential mortgage-backed securities issued by quasi- governmental agencies | 45,280 | 42,674 |
Total investment securities available for sale | 124,012 | 102,284 |
Loans receivable, held for sale | 349 | 706 |
Level 3 [Member] | Recurring [Member] | ' | ' |
Investment securities available for sale [Abstract] | ' | ' |
U.S. Government and federal agencies | 0 | ' |
State and political subdivisions | 0 | 0 |
Residential mortgage-backed securities issued by quasi- governmental agencies | 0 | 0 |
Total investment securities available for sale | 0 | 0 |
Loans receivable, held for sale | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_AND_FA3
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS, Part II (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Fair Value, Assets Measured on Nonrecurring Basis [Abstract] | ' | ' | ||
Mortgage servicing rights, amortized cost basis | 1,500,000 | 1,300,000 | ||
Mortgage servicing rights, fair value | 1,500,000 | 956,000 | ||
Nonrecurring [Member] | ' | ' | ||
Fair Value, Assets Measured on Nonrecurring Basis [Abstract] | ' | ' | ||
Impaired loans | 5,178,000 | 6,533,000 | ||
Real estate acquired through foreclosure | 5,601,000 | 7,282,000 | ||
Mortgage servicing rights | 1,472,000 | 956,000 | ||
Nonrecurring [Member] | Level 1 [Member] | ' | ' | ||
Fair Value, Assets Measured on Nonrecurring Basis [Abstract] | ' | ' | ||
Impaired loans | 0 | 0 | ||
Real estate acquired through foreclosure | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Nonrecurring [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets Measured on Nonrecurring Basis [Abstract] | ' | ' | ||
Impaired loans | 0 | 0 | ||
Real estate acquired through foreclosure | 0 | 0 | ||
Mortgage servicing rights | 1,472,000 | 956,000 | ||
Nonrecurring [Member] | Level 3 [Member] | ' | ' | ||
Fair Value, Assets Measured on Nonrecurring Basis [Abstract] | ' | ' | ||
Impaired loans | 5,178,000 | 6,533,000 | ||
Real estate acquired through foreclosure | 5,601,000 | 7,282,000 | ||
Mortgage servicing rights | 0 | 0 | ||
Nonrecurring [Member] | Minimum [Member] | ' | ' | ||
Fair Value, Assets Measured on Nonrecurring Basis [Abstract] | ' | ' | ||
Impaired loans, range of inputs (in hundredths) | 5.00% | [1] | 5.00% | [1] |
Real estate acquired through foreclosure, range of inputs (in hundredths) | 5.00% | [1] | 5.00% | [1] |
Nonrecurring [Member] | Maximum [Member] | ' | ' | ||
Fair Value, Assets Measured on Nonrecurring Basis [Abstract] | ' | ' | ||
Impaired loans, range of inputs (in hundredths) | 15.00% | [1] | 15.00% | [1] |
Real estate acquired through foreclosure, range of inputs (in hundredths) | 20.00% | [1] | 20.00% | [1] |
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
FAIR_VALUE_MEASUREMENTS_AND_FA4
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS, Part III (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS [Abstract] | ' | ' |
Mortgage-backed securities | $1,680 | ' |
LIABILITIES [Abstract] | ' | ' |
Borrowings with stated maturities | 49,605 | 60,656 |
Carrying Value [Member] | ' | ' |
ASSETS [Abstract] | ' | ' |
Cash and cash equivalents | 45,310 | 31,137 |
Investment securities | 78,732 | 59,610 |
Mortgage-backed securities | 46,770 | 44,639 |
Loans receivable | 614,517 | 527,426 |
LIABILITIES [Abstract] | ' | ' |
Deposits with stated maturities | 190,492 | 171,417 |
Deposits with no stated maturities | 493,410 | 388,898 |
Borrowings with stated maturities | 49,605 | 60,656 |
Fair Value [Member] | ' | ' |
ASSETS [Abstract] | ' | ' |
Cash and cash equivalents | 45,310 | 31,137 |
Investment securities | 78,732 | 59,610 |
Mortgage-backed securities | 46,960 | 44,945 |
Loans receivable | 614,246 | 539,665 |
LIABILITIES [Abstract] | ' | ' |
Deposits with stated maturities | 193,258 | 175,025 |
Deposits with no stated maturities | 493,410 | 388,898 |
Borrowings with stated maturities | 48,426 | 60,939 |
Level 1 [Member] | ' | ' |
ASSETS [Abstract] | ' | ' |
Cash and cash equivalents | 45,310 | 31,137 |
Investment securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Loans receivable | 0 | 0 |
LIABILITIES [Abstract] | ' | ' |
Deposits with stated maturities | 0 | 0 |
Deposits with no stated maturities | 493,410 | 388,898 |
Borrowings with stated maturities | 0 | 0 |
Level 2 [Member] | ' | ' |
ASSETS [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities | 78,732 | 59,610 |
Mortgage-backed securities | 46,960 | 44,945 |
Loans receivable | 349 | 706 |
LIABILITIES [Abstract] | ' | ' |
Deposits with stated maturities | 0 | 0 |
Deposits with no stated maturities | 0 | 0 |
Borrowings with stated maturities | 0 | 0 |
Level 3 [Member] | ' | ' |
ASSETS [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Loans receivable | 613,897 | 538,959 |
LIABILITIES [Abstract] | ' | ' |
Deposits with stated maturities | 193,258 | 175,025 |
Deposits with no stated maturities | 0 | 0 |
Borrowings with stated maturities | $48,426 | $60,939 |
SERVICE_FEES_CHARGES_AND_OTHER2
SERVICE FEES, CHARGES AND OTHER OPERATING INCOME AND OTHER OPERATING EXPENSE (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Service fees, charges and other operating income [Abstract] | ' | ' |
Loan servicing fees, net | $481 | $139 |
Late charge income | 124 | 117 |
Deposit service charges | 820 | 581 |
Debit card income | 623 | 539 |
Other income | 300 | 395 |
Service fees, charges and other operating income | 2,348 | 1,771 |
Other operating expense [Abstract] | ' | ' |
Insurance and surety bond | 193 | 178 |
Office supplies | 219 | 184 |
Loan expense | 309 | 228 |
Debit card and ATM expense | 307 | 272 |
Postage | 260 | 246 |
Telephone | 312 | 288 |
Supervisory examination fees | 65 | 73 |
Conversion costs | 1,417 | 0 |
Other expenses | 683 | 578 |
Other operating expense | $3,765 | $2,047 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per share [Abstract] | ' | ' |
Income available to common stockholders, Income | $6,575 | $5,383 |
Income available to common stockholders, Weighted average shares (in shares) | 2,899,025 | 2,726,133 |
Income available to common stockholders, Per share (in dollars per share) | $2.27 | $1.97 |
Effect of dilutive securities [Abstract] | ' | ' |
Stock compensation plans, Income | 0 | 0 |
Stock compensation plans, Weighted average shares (in shares) | 3,907 | 3,629 |
Stock compensation plans, Per share (in dollars per share) | $0 | $0 |
Diluted earning per share [Abstract] | ' | ' |
NET INCOME | $6,575 | $5,383 |
Income available to common stockholders plus effect of dilutive securities, Weighted average shares (in shares) | 2,902,932 | 2,729,762 |
Income available to common stockholders plus effect of dilutive securities, Per share (in dollars per share) | $2.27 | $1.97 |
Antidilutive Securities Excluded from Computation of Diluted Earnings per Share [Abstract] | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | 22,466 | 42,462 |
Exercise price, lower limit (in dollars per share) | $25.71 | $23.53 |
Exercise price, upper limit (in dollars per share) | $32.51 | $32.51 |
CONDENSED_FINANCIAL_INFORMATIO2
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
ASSETS [Abstract] | ' | ' | ' | ||
Other assets | $12,441 | $11,592 | ' | ||
TOTAL ASSETS | 835,689 | 711,836 | ' | ||
LIABILITIES AND STOCKHOLDERS' EQUITY [Abstract] | ' | ' | ' | ||
Total liabilities | 740,814 | 628,891 | ' | ||
Stockholders' equity | 94,875 | 82,945 | 77,408 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 835,689 | 711,836 | ' | ||
EXPENSE [Abstract] | ' | ' | ' | ||
NET INCOME | 6,575 | 5,383 | ' | ||
Total other comprehensive (loss) income | -2,148 | [1],[2] | 224 | ' | |
Comprehensive income | 4,427 | 5,607 | ' | ||
Cash flows from operating activities [Abstract] | ' | ' | ' | ||
Net income | 6,575 | 5,383 | ' | ||
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ' | ' | ' | ||
Stock compensation plans | 797 | 493 | ' | ||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 7,971 | 9,712 | ' | ||
Cash flows from investing activities [Abstract] | ' | ' | ' | ||
Acquisition, net of cash acquired | -3,173 | 0 | ' | ||
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | 25,337 | -16,273 | ' | ||
Cash flows from financing activities [Abstract] | ' | ' | ' | ||
Common stock dividends paid | -884 | -543 | ' | ||
Exercise of stock options | 216 | 7 | ' | ||
Deferred tax adjustment arising from stock compensation | -24 | -27 | ' | ||
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES | -19,135 | 22,770 | ' | ||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 14,173 | 16,209 | ' | ||
Cash and cash equivalents at beginning of period | 31,137 | 14,928 | ' | ||
Cash and cash equivalents at end of period | 45,310 | 31,137 | ' | ||
TF Financial Corporation [Member] | ' | ' | ' | ||
ASSETS [Abstract] | ' | ' | ' | ||
Cash | 2,220 | 2,031 | ' | ||
Notes receivable ESOP | 1,161 | 1,208 | ' | ||
Other assets | 964 | 723 | ' | ||
TOTAL ASSETS | 94,911 | 83,071 | ' | ||
LIABILITIES AND STOCKHOLDERS' EQUITY [Abstract] | ' | ' | ' | ||
Total liabilities | 36 | 126 | ' | ||
Stockholders' equity | 94,875 | 82,945 | ' | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 94,911 | 83,071 | ' | ||
INCOME [Abstract] | ' | ' | ' | ||
Equity in earnings of subsidiaries | 7,929 | 5,963 | ' | ||
Interest and dividend income | 18 | 22 | ' | ||
Total income | 7,947 | 5,985 | ' | ||
EXPENSE [Abstract] | ' | ' | ' | ||
Other | 1,372 | 602 | ' | ||
Total expenses | 1,372 | 602 | ' | ||
NET INCOME | 6,575 | 5,383 | ' | ||
Total other comprehensive (loss) income | -2,148 | [3] | 224 | [3] | ' |
Comprehensive income | 4,427 | 5,607 | ' | ||
Cash flows from operating activities [Abstract] | ' | ' | ' | ||
Net income | 6,575 | 5,383 | ' | ||
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ' | ' | ' | ||
Stock compensation plans | 457 | 176 | ' | ||
Equity in earnings of subsidiaries | -7,929 | -5,963 | ' | ||
Net change in assets and liabilities | -180 | -16 | ' | ||
NET CASH PROVIDED BY OPERATING ACTIVITIES | -1,077 | -420 | ' | ||
Cash flows from investing activities [Abstract] | ' | ' | ' | ||
Capital distribution from subsidiaries | 7,800 | 1,600 | ' | ||
Acquisition, net of cash acquired | -5,568 | 0 | ' | ||
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | 2,232 | 1,600 | ' | ||
Cash flows from financing activities [Abstract] | ' | ' | ' | ||
Common stock dividends paid | -884 | -543 | ' | ||
Treasury stock acquired | -274 | 0 | ' | ||
Exercise of stock options | 216 | 7 | ' | ||
Deferred tax adjustment arising from stock compensation | -24 | -27 | ' | ||
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES | -966 | -563 | ' | ||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 189 | 617 | ' | ||
Cash and cash equivalents at beginning of period | 2,031 | 1,414 | ' | ||
Cash and cash equivalents at end of period | 2,220 | 2,031 | ' | ||
TF Financial Corporation [Member] | Investment in 3rd Fed [Member] | ' | ' | ' | ||
ASSETS [Abstract] | ' | ' | ' | ||
Equity Method Investments | 89,501 | 78,032 | ' | ||
TF Financial Corporation [Member] | Investment in Penns Trail Development [Member] | ' | ' | ' | ||
ASSETS [Abstract] | ' | ' | ' | ||
Equity Method Investments | $1,065 | $1,077 | ' | ||
[1] | Amounts in parentheses indicate debits. | ||||
[2] | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 34%. | ||||
[3] | See Consolidated Statements of Comprehensive Income for other comprehensive income detail. |