Restructuring Charges

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

During the first quarter of 2015, the Corporation finalized a new financial center model, which is smaller in size, combines enhanced technology with personal service and provides consultive services and solutions delivered by personal bankers. These efforts have led to the development of a comprehensive financial center optimization plan approved in April 2015 which includes opening new financial centers in growth markets while closing financial centers which operate in close proximity to other centers. As the Corporation announced in April 2015, six financial centers were closed in September 2015 that operated in close proximity to other centers. As a result, the Corporation recorded $1.6 million in restructuring charges during the second quarter of 2015 and related to the Banking business segment. The Corporation negotiated more favorable lease termination agreement on two of the properties during 2016 resulting in a reversal in the accrual of $152 thousand.

During the third and fourth quarters of 2016, the Corporation exited four financial centers, a lease for a new financial center and two administrative offices, and reduced staff due to rationalization; resulting in accruing a loss of $1.9 million related to the Banking business segment. As a result of the Fox Chase acquisition and in an effort to optimize market visibility, financial centers and administrative offices which operated in close proximity to other centers were analyzed and staffing was rationalized.

A roll-forward of the accrued restructuring expense is as follows:



(Dollars in thousands)	Severance expenses			Write-downs and retirements of fixed assets			Lease cancellations			Total
Accrued at January 1, 2016	$	—		$	228		$	834		$	1,062
Restructuring charges	1,207			409			115			1,731
Payments	(306		)	—			(868		)	(1,174		)
Accelerated depreciation	—			(409		)	—			(409		)
Accrued at December 31, 2016	$	901		$	228		$	81		$	1,210