LOANS (Tables)

6 Months Ended

Jun. 30, 2015

LOANS

Schedule of the major classifications of loans

	June 30, 2015			December 31, 2014
(In thousands)
Commercial real estate mortgage loans	$	1,006,333		$	595,397
Multi-family mortgage loans		298,370			218,985
Residential real estate mortgage loans		378,451			156,156
Commercial, financial, and agricultural loans		482,183			291,743
Real estate-construction and land loans		82,792			63,556
Installment/consumer loans		14,526			10,124
Total loans		2,262,655			1,335,961
Net deferred loan costs and fees		2,621			2,366
		2,265,276			1,338,327
Allowance for loan losses		(18,818	)		(17,637	)
Net loans	$	2,246,458		$	1,320,690

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

	Grades:
June 30, 2015	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	445,106	$	4,526	$	3,900	$	-	$	453,532
Non-owner occupied		548,380		1,313		3,108		-		552,801
Multi-Family		298,341		3		26		-		298,370
Residential real estate:
Residential mortgage		307,368		-		858		-		308,226
Home equity		68,317		522		1,386		-		70,225
Commercial:
Secured		118,107		176		2,196		-		120,479
Unsecured		354,686		3,817		3,201		-		361,704
Real estate construction and land loans		82,792		-		-		-		82,792
Installment/consumer loans		14,425		-		101		-		14,526
Total loans	$	2,237,522	$	10,357	$	14,776	$	-	$	2,262,655

	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		217,855		202		928		-		218,985
Residential real estate:
Residential mortgage		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

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

June 30, 2015	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	$	-	$	397	$	890	$	564	$	1,851	$	451,681		453,532
Non-owner occupied		174		-		-		-		174		552,627		552,801
Multi-Family		677		-				-		677		297,693		298,370
Residential real estate:
Residential mortgages		433		-		-		66		499		307,727		308,226
Home equity		466		-		151		1,296		1,913		68,312		70,225
Commercial and Industrial:
Secured		50		-		201		-		251		120,228		120,479
Unsecured		362		-		-		45		407		361,297		361,704
Real estate construction and land loans		-		-		-		-		-		82,792		82,792
Installment/consumer loans		4		-		-		2		6		14,520		14,526
Total loans	$	2,166	$	397	$	1,242	$	1,973	$	5,778	$	2,256,877	$	2,262,655

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		-		-		-		-		-		218,985		218,985
Residential real estate:
Residential mortgages		-		-		-		143		143		89,875		90,018
Home equity		919		-		134		374		1,427		64,711		66,138
Commercial and Industrial:
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

Schedule of individually impaired loans by class

	June 30, 2015						Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	713	$	1,194	$	-	$	721	$	2	$	729	$	5
Non-owner occupied		940		940		-		942		16		945		31
Residential real estate:
Residential mortgages		66		74		-		67		-		68		-
Home equity		1,145		1,375		-		1,163		-		870		-
Commercial:
Secured		112		112		-		113		2		80		2
Unsecured		98		98		-		101		4		107		4
Total with no related allowance recorded		3,074		3,793		-		3,107		24		2,799		42
With an allowance recorded:
Commercial real estate - Non-owner occupied		320		320		88		321		4		321		7
Residential real estate - Home equity		150		150		150		150		-		100		-
Commercial-Unsecured		126		126		4		129		2		134		5
Total with an allowance recorded:		596		596		242		600		6		555		12
Total:
Commercial real estate:
Owner occupied		713		1,194		-		721		2		729		5
Non-owner occupied		1,260		1,260		88		1,263		20		1,266		38
Residential real estate:
Residential mortgages		66		74		-		67		-		68		-
Home equity		1,295		1,525		150		1,313		-		970		-
Commercial:
Secured		112		112		-		113		2		80		2
Unsecured		224		224		4		230		6		241		9
Total	$	3,670	$	4,389	$	242	$	3,707	$	30	$	3,354	$	54

	December 31, 2014						Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,562	$	3,707	$	-	$	3,957	$	28	$	4,061	$	56
Non-owner occupied		1,251		1,568		-		965		16		967		32
Residential real estate:
Residential mortgages		143		231		-		834		-		981		-
Home equity		169		377		-		576		-		584		-
Commercial:
Secured		345		345		-		358		6		359		13
Unsecured		-		-		-		162		3		167		6
Total with no related allowance recorded		5,470		6,228		-		6,852		53		7,119		107
With an allowance recorded:
Commercial real estate - Non-owner occupied		323		323		23		-		-		-		-
Residential real estate - Residential mortgage		-		-		-		152		-		152		-
Residential real estate - Home equity		72		89		72		202		-		203		-
Commercial-Unsecured		337		339		79		-		-		-		-
Total with an allowance recorded:		732		751		174		354		-		355		-
Total:
Commercial real estate:
Owner occupied		3,562		3,707		-		3,957		28		4,061		56
Non-owner occupied		1,574		1,891		23		965		16		967		32
Residential real estate:
Residential mortgages		143		231		-		986		-		1,133		-
Home equity		241		466		72		778		-		787		-
Commercial:
Secured		345		345		-		358		6		359		13
Unsecured		337		339		79		162		3		167		6
Total	$	6,202	$	6,979	$	174	$	7,206	$	53	$	7,474	$	107

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In thousands)	2015			2014			2015			2014
Balance at beginning of period	$	7,560		$	6,866		$	8,432		$	—
Accretable discount arising from acquisition of PCI loans		259			—			259			6,866
Accretion		(1,406	)		(200	)		(2,658	)		(488	)
Reclassificiation from (to) nonaccretable difference during the period		1,117			948			1,497			1,307
Other		—						—			(71	)
Accretable discount at end of period	$	7,530		$	7,614		$	7,530		$	7,614