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LOANS (Tables)
 12 Months Ended
Dec. 31, 2013
Loans Tables  
Schedule of composition of loans categorized by the type of loan

The following table presents loans outstanding, by type of loan, as of December 31:

 

       % of Total       % of Total 
(In thousands)  2013   Loans   2012   Loans 
Residential mortgage  $532,911    33.85%  $515,014    45.47%
Commercial mortgage   831,997    52.85    420,086    37.09 
Commercial loans   131,795    8.37    115,372    10.19 
Construction loans   5,893    0.38    9,328    0.83 
Home equity lines of credit   47,905    3.04    49,635    4.38 
Consumer loans, including                    
  fixed rate home equity loans   21,852    1.39    21,188    1.87 
Other loans   1,848    0.12    1,961    0.17 
    Total loans  $1,574,201    100.00%  $1,132,584    100.00%

 

Not included above were $19 million of classified loans that were transferred to loans held for sale in December 2012. Upon transfer, the Corporation recorded a charge-off on these loans totaling $5.4 million. These loans were disclosed as loans held for sale, at lower of cost or fair value, on the consolidated statements of condition as of December 31, 2012 with a balance of $13.7 million. In March 2013, the Corporation sold these loans resulting in a gain of $522 thousand.

 

In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on Federal call report codes. The following portfolio classes have been identified as of December 31:

 

       % of Total       %  of Total 
(In thousands)  2013   Loans   2012   Loans 
Primary residential mortgage  $546,827    34.82%  $527,803    46.74%
Home equity lines of credit   47,905    3.05    49,635    4.40 
Junior lien loan on residence   13,114    0.84    11,893    1.05 
Multifamily property   541,503    34.48    161,705    14.32 
Owner-occupied commercial                    
  real estate   79,735    5.08    84,720    7.50 
Investment commercial real estate   267,406    17.03    242,586    21.48 
Commercial and industrial   51,638    3.29    25,820    2.29 
Farmland   197    0.01    207    0.02 
Agricultural production loans   —    N/A    14    N/A 
Commercial construction   5,893    0.37    9,323    0.83 
Consumer and other   16,212    1.03    15,480    1.37 
   Total loans  $1,570,430    100.00%  $1,129,186    100.00%
Net deferred fees   3,771         3,398      
   Total loans including                    
      net deferred fees  $1,574,201        $1,132,584      
Schedule of loans to executives and directors

The following table shows the changes in loans to officers, directors or their associates:

 

(In thousands)  2013   2012 
Balance, beginning of year  $1,345   $1,328 
New loans   1,301    1,636 
Repayments   (430)   (1,619)
Balance, at end of year  $2,216   $1,345 
Schedule of loan balances by portfolio segment, based on impairment method, and the corresponding balances in the allowance for loan losses

The following tables present the loan balances by portfolio segment, based on impairment method, and the corresponding balances in the allowance for loan losses as of December 31, 2013 and 2012:

 

December 31, 2013
   Total   Ending ALLL   Total   Ending ALLL         
   Loans   Attributable   Loans   Attributable         
   Individually   to Loans   Collectively   to Loans         
   Evaluated   Individually   Evaluated   Collectively       Total 
   for   Evaluated for   for   Evaluated for   Total   Ending 
(In thousands)  Impairment   Impairment   Impairment   Impairment   Loans   ALLL 
Primary residential                              
   mortgage  $3,691   $126   $543,136   $2,235   $546,827   $2,361 
Home equity lines                              
   of credit   111    —    47,794    181    47,905    181 
Junior lien loan                              
   on residence   260    —    12,854    156    13,114    156 
Multifamily                              
   property   —    —    541,503    4,003    541,503    4,003 
Owner-occupied                              
   commercial                              
   real estate   3,250    464    76,485    2,099    79,735    2,563 
Investment                              
   commercial                              
   real estate   9,949    741    257,457    4,342    267,406    5,083 
Commercial and                              
   industrial   470    309    51,168    516    51,638    825 
Secured by                              
   farmland   —    —    197    3    197    3 
Agricultural                              
   production   —    —    —    —    —    — 
Commercial                              
   construction   —    —    5,893    120    5,893    120 
Consumer and                              
   other   13    13    16,199    65    16,212    78 
Total ALLL  $17,744   $1,653   $1,552,686   $13,720   $1,570,430   $15,373 

 

December 31, 2012

 

       Ending       Ending                 
       ALLL       ALLL                 
   Total   Attributable   Total   Attributable                 
   Loans   To Loans   Loans   To Loans       Total         
   Individually   Individually   Collectively   Collectively       Ending   Allocation     
   Evaluated   Evaluated   Evaluated   Evaluated       ALLL   Of Previous   Total 
   For   For   For   For   Total   Before   Unallocated   Ending 
(In thousands)  Impairment   Impairment   Impairment   Impairment   Loans   Allocation   ALLL   ALLL 
Primary residential                                        
  mortgage  $7,155   $148   $520,648   $2,789   $527,803   $2,937   $110   $3,047 
Home equity                                        
   lines of credit   110    —    49,525    257    49,635    257    10    267 
Junior lien loan                                        
   on residence   562    240    11,331    71    11,893    311    3    314 
Multifamily                                        
   property   —    —    161,705    1,255    161,705    1,255    50    1,305 
Owner-occupied                                        
   commercial                                        
   real estate   4,724    —    79,996    2,413    84,720    2,413    96    2,509 
Investment                                        
   commercial                                        
   real estate   5,173    384    237,413    3,627    242,586    4,011    144    4,155 
Commercial and                                        
   industrial   423    41    25,397    733    25,820    774    29    803 
Secured by                                        
   farmland   —    —    207    3    207    3    —    3 
Agricultural                                        
   production   —    —    14    —    14    —    —    — 
Commercial                                        
   construction   —    —    9,323    231    9,323    231    9    240 
Consumer and                                        
   other   —    —    15,480    89    15,480    89    3    92 
Unallocated   —    —    —    454    —    454    (454)   — 
    Total ALLL  $18,147   $813   $1,111,039   $11,922   $1,129,186   $12,735   $—   $12,735 

 

The tables below present a rollforward of the allowance for loan losses for the years ended December 31, 2013, 2012 and 2011.

 

   January 1,               December 31, 
   2013               2013 
   Beginning               Ending 
(In thousands)  ALLL   Charge-Offs   Recoveries   Provision   ALLL 
Primary residential mortgage  $3,047   $(611)  $48   $(123)  $2,361 
Home equity lines of credit   267    —    —    (86)   181 
Junior lien loan on residence   314    (346)   17    171    156 
Multifamily property   1,305    —    11    2,687    4,003 
Owner-occupied commercial                         
  real estate   2,509    —    77    (23)   2,563 
Investment commercial real estate   4,155    (56)   26    958    5,083 
Commercial and industrial   803    (16)   64    (26)   825 
Secured by farmland   3    —    —    —    3 
Commercial construction   240    —    1    (121)   120 
Consumer and other   92    (11)   9    (12)   78 
    Total ALLL  $12,735   $(1,040)  $253   $3,425   $15,373 

 

   January 1,               December 31, 
   2012               2012 
   Beginning               Ending 
(In thousands)  ALLL   Charge-Offs   Recoveries   Provision   ALLL 
Primary residential mortgage  $2,414   $(1,676)  $3   $2,306   $3,047 
Home equity lines of credit   204    (91)   —    154    267 
Junior lien loan on residence   64    (57)   6    301    314 
Multifamily property   705    (492)   —    1,092    1,305 
Owner-occupied commercial                         
  real estate   3,108    (4,047)   299    3,149    2,509 
Investment commercial real estate   4,181    (2,448)   17    2,405    4,155 
Agricultural production   1    —    —    (1)   — 
Commercial and industrial   1,291    (233)   60    (315)   803 
Secured by farmland   —    —    —    3    3 
Commercial construction   669    (72)   —    (357)   240 
Consumer and other   78    (43)   11    46    92 
Unallocated   508    —    —    (508)   — 
    Total ALLL  $13,223   $(9,159)  $396   $8,275   $12,735 

 

   January 1,               December 31, 
   2011               2011 
   Beginning               Ending 
(In thousands)  ALLL   Charge-Offs   Recoveries   Provision   ALLL 
Primary residential mortgage  $1,502   $(763)  $—   $1,675   $2,414 
Home equity lines of credit   160    (89)   —    133    204 
Junior lien loan on residence   228    (13)   14    (165)   64 
Multifamily property   303    (75)   8    469    705 
Owner-occupied commercial                         
  real estate   2,777    (3,405)   40    3,696    3,108 
Investment commercial real estate   4,759    (3,287)   48    2,661    4,181 
Agricultural production   —    —    —    1    1 
Commercial and industrial   2,719    (272)   108    (1,264)   1,291 
Commercial construction   1,246    (607)   11    19    669 
Consumer and other   66    (28)   1    39    78 
Unallocated   522    —    —    (14)   508 
    Total ALLL  $14,282   $(8,539)  $230   $7,250   $13,223 
Schedule of loans individually evaluated for impairment

The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2013 and 2012:

 

   December 31, 2013 
   Unpaid           Average   Interest 
   Principal   Recorded   Specific   Impaired   Income 
(In thousands)  Balance   Investment   Reserves   Loans   Recognized 
With no related allowance recorded:                         
  Primary residential mortgage  $3,777   $2,984   $—   $4,813   $55 
  Owner-occupied commercial real estate   1,346    1,193    —    1,893    36 
  Investment commercial real estate   5,000    5,000    —    314    4 
  Commercial and industrial   176    161    —    121    4 
  Home equity lines of credit   111    111    —    119    5 
  Junior lien loan on residence   370    260    —    312    5 
    Total loans with no related allowance  $10,780   $9,709   $—   $7,572   $109 
With related allowance recorded:                         
  Primary residential mortgage  $707   $707   $126   $636   $29 
  Owner-occupied commercial real estate   2,190    2,057    464    2,100    16 
  Investment commercial real estate   4,949    4,949    741    4,949    618 
  Commercial and industrial   323    309    309    269    4 
  Junior lien loan on residence   —    —    —    —    — 
  Consumer and other   13    13    13    —    — 
    Total loans with related allowance  $8,182   $8,035   $1,653   $7,954   $667 
Total loans individually evaluated                         
  for impairment  $18,962   $17,744   $1,653   $15,526   $776 

 

   December 31, 2012 
   Unpaid           Average   Interest 
   Principal   Recorded   Specific   Impaired   Income 
(In thousands)  Balance   Investment   Reserves   Loans   Recognized 
With no related allowance recorded:                         
  Primary residential mortgage  $8,605   $6,148   $—   $8,110   $384 
  Multifamily property   —    —    —    185    16 
  Owner-occupied commercial real estate   4,971    4,724    —    9,575    570 
  Investment commercial real estate   336    —    —    796    51 
  Commercial and industrial   432    345    —    640    47 
  Home equity lines of credit   110    110    —    221    11 
  Junior lien loan on residence   429    235    —    439    30 
    Total loans with no related allowance  $14,883   $11,562   $—   $19,966   $1,109 
With related allowance recorded:                         
  Primary residential mortgage  $1,056   $1,007   $148   $851   $38 
  Multifamily property   —    —    —    —    — 
  Owner-occupied commercial real estate   —    —    —    —    — 
  Investment commercial real estate   5,183    5,173    384    5,013    251 
  Commercial and industrial   78    78    41    92    74 
  Junior lien loan on residence   327    327    240    —    8 
  Commercial construction   —    —    —    194    — 
    Total loans with related allowance  $6,644   $6,585   $813   $6,150   $371 
Total loans individually evaluated                         
  for impairment  $21,527   $18,147   $813   $26,116   $1,480 

 
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual

The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2013 and 2012:

 

   December 31, 2013 
       Loans Past Due Over 
       90 Days and Still 
(In thousands)  Nonaccrual   Accruing Interest 
Primary residential mortgage  $2,641   $— 
Home equity lines of credit   111    — 
Junior lien loan on residence   260    — 
Multifamily property   —    — 
Owner-occupied commercial real estate   3,250    — 
Investment commercial real estate   —    — 
Commercial and industrial   355    — 
Consumer and other   13    — 
  Total  $6,630   $— 

 

   December 31, 2012 
       Loans Past Due Over 
       90 Days and Still 
(In thousands)  Nonaccrual   Accruing Interest 
Primary residential mortgage  $6,519   $— 
Home equity lines of credit   110    — 
Junior lien loan on residence   562    — 
Multifamily property   —    — 
Owner-occupied commercial real estate   4,317    — 
Investment commercial real estate   224    — 
Commercial and industrial   —    — 
Consumer and other   —    — 
  Total  $11,732   $— 
Schedule of aging of past due loans

The following tables present the recorded investment in past due loans as of December 31, 2013 and 2012 by class of loans, excluding nonaccrual loans:

 

   December 31, 2013 
   30-59   60-89   Greater Than     
   Days   Days   90 Days   Total 
(In thousands)  Past Due   Past Due   Past Due   Past Due 
Primary residential mortgage  $1,443   $677   $—   $2,120 
Home equity lines of credit   12    —    —    12 
Owner-occupied commercial real estate   703    —    —    703 
Investment commercial real estate   118    —    —    118 
  Total  $2,276   $677   $—   $2,953 

 

   December 31, 2012 
   30-59   60-89   Greater Than     
   Days   Days   90 Days   Total 
(In thousands)  Past Due   Past Due   Past Due   Past Due 
Primary residential mortgage  $2,513   $203   $—   $2,716 
Home equity lines of credit   25    —    —    25 
Junior lien loan on residence   31    —    —    31 
Owner-occupied commercial real estate   407    —    —    407 
Investment commercial real estate   592    —    —    592 
Commercial and industrial   15    —    —    15 
  Total  $3,583   $203   $—   $3,786 
Schedule of the risk category of loans by class of loans

The table below presents, based on the most recent analysis performed, the risk category of loans by class of loans for December 31, 2013 and 2012.

December 31, 2013

       Special         
(In thousands)  Pass   Mention   Substandard   Doubtful 
Primary residential mortgage  $540,609   $1,510   $4,708   $— 
Home equity lines of credit   47,794    —    111    — 
Junior lien loan on residence   12,854    —    260    — 
Multifamily property   540,993    510    —    — 
Owner-occupied commercial real estate   70,218    619    8,898    — 
Investment commercial real estate   238,722    9,573    19,111    — 
Commercial and industrial   51,144    23    471    — 
Secured by farmland   197    —    —    — 
Commercial construction   4,340    1,553    —    — 
Consumer and other loans   15,106    837    269    — 
  Total  $1,521,977   $14,625   $33,828   $— 

 

December 31, 2012

       Special         
(In thousands)  Pass   Mention   Substandard   Doubtful 
Primary residential mortgage  $517,336   $3,152   $7,315   $— 
Home equity lines of credit   49,525    —    110    — 
Junior lien loan on residence   11,294    37    562    — 
Multifamily property   161,229    476    —    — 
Owner-occupied commercial real estate   73,809    334    10,577    — 
Investment commercial real estate   216,394    13,237    12,955    — 
Agricultural production loans   14    —    —    — 
Commercial and industrial   25,191    134    495    — 
Secured by farmland   207    —    —    — 
Commercial construction   3,999    5,324    —    — 
Consumer and other loans   15,480    —    —    — 
  Total  $1,074,478   $22,694   $32,014   $— 
Schedule of loans modified as troubled debt restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended December 31, 2013:

 

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   4   $760   $760 
Investment commercial real estate   1    5,000    5,000 
  Total   5   $5,760   $5,760 

 

The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended December 31, 2012:

 

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   3   $553   $553 
Junior lien on residence   1    274    274 
Investment commercial real estate   1    2,648    2,648 
  Total   5   $3,475   $3,475 

 

The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended December 31, 2011:

 

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   3   $1,410   $1,410 
Owner-occupied commercial real estate   1    412    412 
Investment commercial real estate   1    4,949    4,949 
  Total   5   $6,771   $6,771 

  

The following table presents loans by class modified as troubled debt restructurings during the year ended December 31, 2013 for which there was a payment default during the same period:

 

   Number of   Recorded 
(Dollars in thousands)  Contracts   Investment 
Primary residential mortgage   1   $59 
  Total   1   $59 

 

The following table presents loans by class modified as troubled debt restructurings during the year ended December 31, 2012 for which there was a payment default during the same period:

 

   Number of   Recorded 
(Dollars in thousands)  Contracts   Investment 
Junior lien on residence   1   $240 
  Total   1   $240 

 

The following table presents loans by class modified as troubled debt restructurings during the year ended December 31, 2011 for which there was a payment default during the same period:

 

   Number of   Recorded 
(Dollars in thousands)  Contracts   Investment 
Owner-occupied commercial real estate   1   $412 
  Total   1   $412