LOANS (Tables)

12 Months Ended

Dec. 31, 2014

LOANS

Schedule of the major classifications of loans

December 31,	2014			2013
(In thousands)
Commercial real estate mortgage loans	$	595,397		$	484,900
Multi-family mortgage loans	218,985			107,488
Residential real estate mortgage loans	156,156			153,417
Commercial, financial and agricultural loans	291,743			209,452
Real estate construction and land loans	63,556			46,981
Installment/consumer loans	10,124			9,287
Total loans	1,335,961			1,011,525
Net deferred loan costs and fees	2,366			1,738
	1,338,327			1,013,263
Allowance for loan losses	(17,637		)	(16,001		)
Net loans	$	1,320,690		$	997,262

Schedule of changes in the allowance for loan losses

December 31,	2014			2013			2012
(In thousands)
Allowance for loan losses balance at beginning of period	$	16,001		$	14,439		$	10,837
Charge-offs	(824		)	(916		)	(1,510		)
Recoveries	260			128			112
Net charge-offs	(564		)	(788		)	(1,398		)
Provision for loan losses charged to operations	2,200			2,350			5,000
Balance at end of period	$	17,637		$	16,001		$	14,439

Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method

December 31, 2014	Commercial Real Estate Mortgage Loans			Multi-family Loans		Residential Real Estate Mortgage Loans			Commercial, Financial and Agricultural Loans			Real Estate Construction and Land Loans			Installment/ Consumer Loans				Total
(In thousands)
Allowance for Loan Losses
Beginning balance	$	6,279		$	1,597	$	2,712		$	4,006		$	1,206		$	201		$	16,001
Charge-offs	(461		)	—		(257		)	(104		)	—			(2		)	(824		)
Recoveries	—			—		170			87			—			3			260
Provision	1,176			1,073		(417		)	537			(102		)	(67		)	2,200
Ending balance	$	6,994		$	2,670	$	2,208		$	4,526		$	1,104		$	135		$	17,637
Ending balance: individually evaluated for impairment	$	23		$	—	$	72		$	79		$	—		$	—		$	174
Ending balance: collectively evaluated for impairment	$	6,971		$	2,670	$	2,136		$	4,447		$	1,104		$	135		$	17,463
Ending balance: loans acquired with deteriorated credit quality	$	—		$	—	$	—		$	—		$	—		$	—		$	—
Loans	$	595,397		$	218,985	$	156,156		$	291,743		$	63,556		$	10,124		$	1,335,961
Ending balance: individually evaluated for impairment	$	5,136		$	—	$	383		$	682		$	—		$	—		$	6,201
Ending balance: collectively evaluated for impairment	$	582,946		$	218,985	$	154,897		$	286,368		$	63,556		$	10,124		$	1,316,876
Ending balance: loans acquired with deteriorated credit quality(1)	$	7,315		$	—	$	876		$	4,693		$	—		$	—		$	12,884

(1) Includes PCI loans acquired on February 14, 2014 from FNBNY.

December 31, 2013	Commercial Real Estate Mortgage Loans		Multi-family Loans		Residential Real Estate Mortgage Loans			Commercial, Financial and Agricultural Loans			Real Estate Construction and Land Loans			Installment/ Consumer Loans			Total
(In thousands)
Allowance for Loan Losses
Beginning balance	$	4,445	$	1,239	$	2,803		$	4,349		$	1,375		$	228		$	14,439
Charge-offs	—		—		(420		)	(420		)	(23		)	(53		)	(916		)
Recoveries	—		—		34			87			2			5			128
Provision	1,834		358		295			(10		)	(148		)	21			2,350
Ending balance	$	6,279	$	1,597	$	2,712		$	4,006		$	1,206		$	201		$	16,001
Ending balance: individually evaluated for impairment	$	116	$	—	$	122		$	—		$	—		$	—		$	238
Ending balance: collectively evaluated for impairment	$	6,163	$	1,597	$	2,590		$	4,006		$	1,206		$	201		$	15,763
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—		$	—		$	—		$	—		$	—
Loans	$	484,900	$	107,488	$	153,417		$	209,452		$	46,981		$	9,287		$	1,011,525
Ending balance: individually evaluated for impairment	$	5,950	$	—	$	2,382		$	526		$	—		$	—		$	8,858
Ending balance: collectively evaluated for impairment	$	478,129	$	107,488	$	151,035		$	208,677		$	46,641		$	9,287		$	1,001,257
Ending balance: loans acquired with deteriorated credit quality	$	821	$	—	$	—		$	249		$	340		$	—		$	1,410

December 31, 2012	Commercial Real Estate Mortgage Loans		Multi-family Loans		Residential Real Estate Mortgage Loans			Commercial, Financial and Agricultural Loans			Real Estate Construction and Land Loans			Installment/ Consumer Loans			Total
(In thousands)
Allowance for Loan Losses
Beginning balance	$	3,530	$	395	$	2,280		$	2,895		$	1,465		$	272		$	10,837
Charge-offs	—		—		(1,210		)	(285		)	—			(15		)	(1,510		)
Recoveries	—		—		7			83			—			22			112
Provision	915		844		1,726			1,656			(90		)	(51		)	5,000
Ending balance	$	4,445	$	1,239	$	2,803		$	4,349		$	1,375		$	228		$	14,439
Ending balance: individually evaluated for impairment	$	—	$	—	$	141		$	228		$	—		$	—		$	369
Ending balance: collectively evaluated for impairment	$	4,445	$	1,239	$	2,662		$	4,121		$	1,375		$	228		$	14,070
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—		$	—		$	—		$	—		$	—
Loans	$	332,782	$	66,080	$	143,703		$	197,448		$	48,632		$	9,167		$	797,812
Ending balance: individually evaluated for impairment	$	4,776	$	—	$	2,549		$	883		$	—		$	—		$	8,208
Ending balance: collectively evaluated for impairment	$	327,282	$	66,080	$	141,154		$	196,350		$	48,331		$	9,167		$	788,364
Ending balance: loans acquired with deteriorated credit quality	$	724	$	—	$	—		$	215		$	301		$	—		$	1,240

Schedule of loans by class categorized by internally assigned credit risk grades

	Grades:
December 31, 2014	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	243,512	$	7,133	$	5,963	$	—	$	256,608
Non-owner occupied	334,790		171		3,828		—		338,789
Multi-family loans	217,855		202		928		—		218,985
Residential real estate:
First lien	88,405		—		1,613		—		90,018
Home equity	64,994		212		932		—		66,138
Commercial:
Secured	91,007		621		2,339		—		93,967
Unsecured	191,942		4,168		1,666		—		197,776
Real estate construction and land loans	63,190		—		366		—		63,556
Installment/consumer loans	9,921		100		103		—		10,124
Total loans	$	1,305,616	$	12,607	$	17,738	$	—	$	1,335,961

	Grades:
December 31, 2013	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	164,502	$	11,828	$	7,336	$	—	$	183,666
Non-owner occupied	291,758		5,490		3,986		—		301,234
Multi-family loans	107,488		—		—		—		107,488
Residential real estate:
First lien	87,288		264		2,847		—		90,399
Home equity	60,285		1,014		1,719		—		63,018
Commercial:
Secured	69,475		4,320		2,175		—		75,970
Unsecured	128,655		3,749		1,078		—		133,482
Real estate construction and land loans	46,311		—		670		—		46,981
Installment/consumer loans	9,144		44		99		—		9,287
Total loans	$	964,906	$	26,709	$	19,910	$	—	$	1,011,525

Schedule of the aging of the recorded investment in past due loans by class of loans

December 31, 2014	30-59 Days Past Due		60-89 Days Past Due		>90 Days Past Due And Accruing		Nonaccrual Including 90 Days or More Past Due		Total Past Due and Nonaccrual		Current		Total Loans
(In thousands)
Commercial real estate:
Owner occupied	$	—	$	184	$	—	$	595	$	779	$	255,829	$	256,608
Non-owner occupied	181		—		10		10		201		338,588		338,789
Multi-family loans	—		—		—		—		—		218,985		218,985
Residential real estate:
First lien	—		—		—		143		143		89,875		90,018
Home equity	919		—		134		374		1,427		64,711		66,138
Commercial:
Secured	—		—		—		—		—		93,967		93,967
Unsecured	25		—		—		222		247		197,529		197,776
Real estate construction and land loans	—		—		—		—		—		63,556		63,556
Installment/consumer loans	1		—		—		3		4		10,120		10,124
Total loans	$	1,126	$	184	$	144	$	1,347	$	2,801	$	1,333,160	$	1,335,961

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		>90 Days Past Due And Accruing		Nonaccrual Including 90 Days or More Past Due		Total Past Due and Nonaccrual		Current		Total Loans
(In thousands)
Commercial real estate:
Owner occupied	$	327	$	201	$	1	$	1,072	$	1,601	$	182,065	$	183,666
Non-owner occupied	—		193		—		617		810		300,424		301,234
Multi-family loans	—		—		—		—		—		107,488		107,488
Residential real estate:
First lien	329		—		—		1,286		1,615		88,784		90,399
Home equity	341		127		—		767		1,235		61,783		63,018
Commercial:
Secured	—		—		—		58		58		75,912		75,970
Unsecured	—		20		—		21		41		133,441		133,482
Real estate construction and land loans	—		—		—		—		—		46,981		46,981
Installment/consumer loans	5		6		—		—		11		9,276		9,287
Total loans	$	1,002	$	547	$	1	$	3,821	$	5,371	$	1,006,154	$	1,011,525

Schedule of individually impaired loans by class

December 31, 2014	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,562	$	3,707	$	—	$	3,974	$	113
Non-owner occupied	1,251		1,568		—		961		63
Residential real estate:
Residential mortgages	143		231		—		199		—
Home equity	169		377		—		229		—
Commercial:
Secured	345		345		—		354		25
Unsecured	—		—		—		—		—
Total with no related allowance recorded	5,470		6,228		—		5,717		201
With an allowance recorded:
Commercial real estate – Owner occupied	—		—		—		—		—
Commercial real estate – Non-owner occupied	323		323		23		27		—
Residential real estate– Residential mortgages	—		—		—		—		—
Residential real estate – Home equity	72		89		72		75		13
Commercial–Secured	—		—		—		—		—
Commercial–Unsecured	337		339		79		206		—
Total with an allowance recorded	732		751		174		308		13
Total:
Commercial real estate:
Owner occupied	3,562		3,707		—		3,974		113
Non-owner occupied	1,574		1,891		23		988		63
Residential real estate:
Residential mortgages	143		231		—		199		—
Home equity	241		466		72		304		13
Commercial:
Secured	345		345		—		354		25
Unsecured	337		339		79		206		—
Total	$	6,202	$	6,979	$	174	$	6,025	$	214

December 31, 2013	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,696	$	3,805	$	—	$	3,730	$	118
Non-owner occupied	917		917		—		917		60
Residential real estate:
First lien	1,463		2,213		—		1,482		26
Home equity	689		1,046		—		633		—
Commercial:
Secured	352		352		—		450		26
Unsecured	174		—		—		232		59
Total with no related allowance recorded	7,291		8,333		—		7,444		289
With an allowance recorded:
Commercial real estate - Owner occupied	720		720		94		420		—
Commercial real estate - Non-owner occupied	617		617		22		515		—
Residential real estate - First Lien	152		156		42		141		—
Residential real Estate - Home equity	78		89		80		81		—
Total with an allowance recorded	1,567		1,582		238		1,157		—
Total:
Commercial real estate:
Owner occupied	4,416		4,525		94		4,150		118
Non-owner occupied	1,534		1,534		22		1,432		60
Residential real estate:
First lien	1,615		2,369		42		1,623		26
Home equity	767		1,135		80		714		—
Commercial:
Secured	352		352		—		450		26
Unsecured	174		—		—		232		59
Total	$	8,858	$	9,915	$	238	$	8,601	$	289

December 31, 2012	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,860	$	3,931	$	—	$	3,816	$	116
Non-owner occupied	916		916		—		916		61
Residential real estate:
First lien	1,539		2,151		—		1,484		35
Home equity	736		1,094		—		768		—
Commercial:
Secured	515		520		—		281		14
Unsecured	95		97		—		42		—
Real estate construction and land loans	—		—		—		2		—
Total with no related allowance recorded	7,661		8,709		—		7,309		226
With an allowance recorded:
Residential real estate – Home equity	274		287		141		244		—
Commercial - Unsecured	273		302		228		236		—
Total with an allowance recorded	547		589		369		480		—
Total:
Commercial real estate:
Owner occupied	3,860		3,931		—		3,816		116
Non-owner occupied	916		916		—		916		61
Residential real estate:
First lien	1,539		2,151		—		1,484		35
Home equity	1,010		1,381		141		1,012		—
Commercial:
Secured	515		520		—		281		14
Unsecured	368		399		228		278		—
Real estate construction and land loans	—		—		—		2		—
Total	$	8,208	$	9,298	$	369	$	7,789	$	226

Schedule of loans receivable by class modified as troubled debt restructurings

Years Ended December 31,	2014					2013					2012
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
(In thousands)
Trouble Debt Restructurings
Commercial real estate:
Owner occupied	—	$	—	$	—	1	$	720	$	720	1	$	163	$	160
Non-owner occupied	1	323		323		1	620		620		—	—		—
Residential real estate:
Home equity:	1	127		127		—	—		—		—	—		—
Commercial:
Secured	—	—		—		—	—		—		1	387		380
Unsecured	1	127		127		1	33		33		1	42		39
Installment/consumer loans	1	5		5		—	—		—		—	—		—
Total loans	4	$	582	$	582	3	$	1,373	$	1,373	3	$	592	$	579

Summary of activity in the accretable yield for the purchased credit impaired loans

December 31,	2014
(In thousands)
Balance at beginning of period	$	—
Accretable discount arising from acquisition of PCI loans	6,580
Accretion	(1,598		)
Reclassification from non-accretable difference during the period	3,450
Accretable discount at end of period	$	8,432

Schedule of selected information about related party loans

	Balance Outstanding
(In thousands)
Balance at January 1, 2014	$	3,051
New loans	—
Effective change in related parties	(114		)
Advances	15
Repayments	(193		)
Balance at December 31, 2014	$	2,759