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LOANS (Tables)
 3 Months Ended
Mar. 31, 2014
Loans Tables  
Schedule of composition of loans categorized by the type of loan

Loans outstanding, by general ledger classification, as of March 31, 2014 and December 31, 2013, consisted of the following:

       % of       % of 
   March 31,   Totals   December 31,   Total 
(In thousands)  2014   Loans   2013   Loans 
Residential mortgage  $481,850    27.33%  $532,911    33.85%
Commercial mortgage   1,063,470    60.31    831,997    52.85 
Commercial loans   143,389    8.13    131,795    8.37 
Construction loans   6,075    0.34    5,893    0.38 
Home equity lines of credit   45,820    2.60    47,905    3.04 
Consumer loans, including fixed                    
   rate home equity loans   20,945    1.19    21,852    1.39 
Other loans   1,851    0.10    1,848    0.12 
   Total loans  $1,763,400    100.00%  $1,574,201    100.00%

 

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 March 31, 2014 and December 31, 2013:

 

       % of       % of 
   March 31,   Totals   December 31,   Total 
(In thousands)  2014   Loans   2013   Loans 
Primary residential mortgage  $495,599    28.17%  $546,827    34.82%
Home equity lines of credit   45,820    2.60    47,905    3.05 
Junior lien loan on residence   12,755    0.73    13,114    0.84 
Multifamily property   763,988    43.42    541,503    34.48 
Owned-occupied commercial real estate   78,375    4.45    79,735    5.08 
Investment commercial real estate   279,792    15.90    267,406    17.03 
Commercial and industrial   61,933    3.52    51,638    3.29 
Secured by farmland   194    0.01    197    .01 
Agricultural production loans   175    0.01    —    N/A 
Commercial construction loans   4,768    0.27    5,893    0.37 
Consumer and other loans   16,098    0.92    16,212    1.03 
   Total loans  $1,759,497    100.00%  $1,570,430    100.00%
Net deferred fees   3,903         3,771      
   Total loans including net deferred costs  $1,763,400        $1,574,201      
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 class, based on impairment method, and the corresponding balances in the allowance for loan losses as of March 31, 2014 and December 31, 2013:

 

   March 31, 2014 
   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  $4,219   $130   $491,380   $2,332   $495,599   $2,462 
Home equity lines                              
   of credit   110    —    45,710    153    45,820    153 
Junior lien loan                              
   on residence   248    —    12,507    139    12,755    139 
Multifamily                              
   property   —    —    763,988    5,630    763,988    5,630 
Owner-occupied                              
   commercial                              
   real estate   3,567    463    74,808    2,005    78,375    2,468 
Investment                              
   commercial                              
   real estate   11,252    434    268,540    4,245    279,792    4,679 
Commercial and                              
   industrial   399    300    61,534    638    61,933    938 
Secured by                              
   farmland   —    —    194    3    194    3 
Agricultural                              
   production   —    —    175    2    175    2 
Commercial                              
   construction   —    —    4,768    44    4,768    44 
Consumer and                              
   Other   19    19    16,079    50    16,098    69 
Total ALLL  $19,814   $1,346   $1,739,683   $15,241   $1,759,497   $16,587 

 

   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 
Schedule of loans individually evaluated for impairment

The following tables present loans individually evaluated for impairment by class of loans as of March 31, 2014 and December 31, 2013:

 

   March 31, 2014 
   Unpaid           Average   Interest 
   Principal   Recorded   Specific   Impaired   Income 
(In thousands)  Balance   Investment   Reserves   Loans   Recognized 
With no related allowance recorded:                         
   Primary residential mortgage  $4,220   $3,415   $—   $3,071   $40 
   Owned-occupied commercial real estate   1,796    1,550    —    1,424    46 
   Investment commercial real estate   4,999    4,999    —    4,999    63 
   Commercial and industrial   99    99    —    159    7 
   Home equity lines of credit   111    110    —    111    3 
   Junior lien loan on residence   363    248    —    256    5 
     Total loans with no related allowance  $11,588   $10,421   $—   $10,020   $164 
With related allowance recorded:                         
   Primary residential mortgage  $804   $804   $130   $617   $6 
   Owned-occupied commercial real estate   2,169    2,017    464    2,044    15 
   Investment commercial real estate   6,253    6,253    433    4,964    62 
   Commercial and industrial   316    300    300    309    5 
   Consumer and other   19    19    19    12    1 
     Total loans with related allowance  $9,561   $9,393   $1,346   $7,946   $89 
Total loans individually evaluated for                         
   impairment  $21,149   $19,814   $1,346   $17,966   $253 

 

   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 
   Owned-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 
   Owned-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 
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 March 31, 2014 and December 31, 2013:

   March 31, 2014 
       Loans Past Due 
       Over 90 Days 
       And Still 
       Accruing 
(In thousands)  Nonaccrual   Interest 
Primary residential mortgage  $3,177   $— 
Home equity lines of credit   110    — 
Junior lien loan on residence   248    — 
Owned-occupied commercial real estate   3,567    — 
Commercial and industrial   353    — 
Consumer and other   18      
Total  $7,473   $— 

 

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

The following tables present the aging of the recorded investment in past due loans as of March 31, 2014 and December 31, 2013 by class of loans, excluding nonaccrual loans:

   March 31, 2014 
   30-59   60-89   Greater Than     
   Days   Days   90 Days   Total 
(In thousands)  Past Due   Past Due   Past Due   Past Due 
Primary residential mortgage  $1,851   $—   $—   $1,851 
Home equity lines of credit   192    —    —    192 
Owner-occupied commercial real estate   3    —    —    3 
Investment commercial real estate   2,524(A)   —    —    2,524 
Construction   184    250    —    434 
Consumer and other loans   23    —    —    23 
   Total  $4,777   $250   $—   $5,027 

 

   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 
Owned-occupied commercial real estate   703    —    —    703 
Investment commercial real estate   118    —    —    118 
   Total  $2,276   $677   $—   $2,953 
Schedule of the risk category of loans by class of loans

As of March 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

       Special         
(In thousands)  Pass   Mention   Substandard   Doubtful 
Primary residential mortgage  $487,151   $2,949   $5,499   $— 
Home equity lines of credit   45,710    —    110    — 
Junior lien loan on residence   12,507    —    248    — 
Multifamily property   761,224    1,917    847    — 
Farmland   194    —    —    — 
Owned-occupied commercial real estate   69,353    582    8,440    — 
Investment commercial real estate   248,545    11,983    19,264    — 
Agricultural production loans   175    —    —    — 
Commercial and industrial   61,511    23    399    — 
Commercial construction   4,518    250    —    — 
Consumer and other loans   15,830    —    268    — 
   Total  $1,706,718   $17,704   $35,075   $— 

 

As of December 31, 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

       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    —    — 
Owned-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   $— 
Schedule of activity in the allowance for loan losses

The activity in the allowance for loan losses for the three months ended March 31, 2014 is summarized below:

   January 1,               March 31, 
   2014               2014 
   Beginning               Ending 
(In thousands)  ALLL   Charge-offs   Recoveries   Provision   ALLL 
Primary residential mortgage  $2,361   $(20)  $—   $121   $2,462 
Home equity lines of credit   181    —    —    (28)   153 
Junior lien loan on residence   156    (1)   23    (39)   139 
Multifamily property   4,003    —    —    1,627    5,630 
Owned-occupied commercial real estate   2,563    (72)   —    (23)   2,468 
Investment commercial real estate   5,083    —    2    (406)   4,679 
Agricultural production loans   —    —    —    2    2 
Commercial and industrial   825    (58)   14    157    938 
Secured by farmland   3    —    —    —    3 
Commercial construction   120    —    —    (76)   44 
Consumer and other loans   78    (2)   3    (10)   69 
Total ALLL  $15,373   $(153)  $42   $1,325   $16,587 

 

The activity in the allowance for loan losses for the three months ended March 31, 2013 is summarized below:

 

   January 1,               March 31, 
   2013               2013 
   Beginning               Ending 
(In thousands)  ALLL   Charge-Offs   Recoveries   Provision   ALLL 
Primary residential mortgage  $3,047   $(63)  $12   $344   $3,340 
Home equity lines of credit   267    —    —    (7)   260 
Junior lien loan on residence   314    (295)   7    37    63 
Multifamily property   1,305    —    11    246    1,562 
Owner-occupied commercial real estate   2,509    —    19    (100)   2,428 
Investment commercial real estate   4,155    —    6    111    4,272 
Agricultural production loans   —    —    —    —    — 
Commercial and industrial   803    (15)   10    349    1,147 
Secured by farmland   3    —    —    —    3 
Commercial construction   240    —    1    (127)   114 
Consumer and other loans   92    (2)   3    (3)   90 
   Total ALLL  $12,735   $(375)  $69   $850   $13,279 

 
Schedule of loans modified as troubled debt restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the three month period ending March 31, 2014:

 

       Pre-   Post- 
       Modification   Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   1   $193   $193 
Investment commercial real estate   1    1,304    1,304 
   Total   2   $1,497   $1,497 

 

The identification of the troubled debt restructured loans did not have a significant impact on the allowance for loan losses. The following table presents loans by class modified as troubled debt restructurings that occurred during the three month period ending March 31, 2013:

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
   Contracts   Investment   Investment 
Primary residential mortgage   2   $322   $322 
   Total   2   $322   $322 
Schedule of modified as troubled debt restructurings subsequently defaulted

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default, within twelve months of modification, during the three month period ended March 31, 2013:

   Number of   Recorded 
(Dollars in thousands)  Contracts   Investment 
Owner occupied commercial real estate   1   $406 
Commercial and industrial   1    270 
   Total   2   $676