LOANS (Tables)

12 Months Ended

Dec. 31, 2015

LOANS

Schedule of the major classifications of loans

December 31,	2015			2014
(In thousands)
Commercial real estate mortgage loans	$	1,053,399		$	595,397
Multi-family mortgage loans		350,793			218,985
Residential real estate mortgage loans		392,815			156,156
Commercial, financial and agricultural loans		501,766			291,743
Real estate construction and land loans		91,153			63,556
Installment/consumer loans		17,596			10,124
Total loans		2,407,522			1,335,961
Net deferred loan costs and fees		3,252			2,366
		2,410,774			1,338,327
Allowance for loan losses		(20,744	)		(17,637	)
Net loans	$	2,390,030		$	1,320,690

Schedule of changes in the allowance for loan losses

December 31,	2015			2014			2013
(In thousands)
Allowance for loan losses balance at beginning of period	$	17,637		$	16,001		$	14,439
Charge-offs		(1,128	)		(824	)		(916	)
Recoveries		235			260			128
Net charge-offs		(893	)		(564	)		(788	)
Provision for loan losses charged to operations		4,000			2,200			2,350
Balance at end of period	$	20,744		$	17,637		$	16,001

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

December 31, 2015	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	$	6,994		$	2,670	$	2,208		$	4,526		$	1,104		$	135		$	17,637
Charge-offs		(50	)		—		(249	)		(827	)		—			(2	)		(1,128	)
Recoveries		—			—		79			149			—			7			235
Provision		906			1,538		77			1,557			(74	)		(4	)		4,000
Ending balance	$	7,850		$	4,208	$	2,115		$	5,405		$	1,030		$	136		$	20,744
Ending balance: individually evaluated for impairment	$	20		$	—	$	—		$	9		$	—		$	—		$	29
Ending balance: collectively evaluated for impairment	$	7,830		$	4,208	$	2,115		$	5,396		$	1,030		$	136		$	20,715
Ending balance: loans acquired with deteriorated credit quality	$	—		$	—	$	—		$	—		$	—		$	—		$	—
Loans	$	1,053,399		$	350,793	$	392,815		$	501,766		$	91,153		$	17,596		$	2,407,522
Ending balance: individually evaluated for impairment	$	1,629		$	—	$	672		$	290		$	—		$	—		$	2,591
Ending balance: collectively evaluated for impairment	$	1,051,135		$	347,054	$	390,876		$	495,045		$	91,153		$	17,596		$	2,392,859
Ending balance: loans acquired with deteriorated credit quality(1)	$	635		$	3,739	$	1,267		$	6,431		$	—		$	—		$	12,072

⁽¹⁾ Includes loans acquired on June 19, 2015 from CNB, on February 14, 2014 from FNBNY and on May 27, 2011 from HSB.

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 loans acquired on February 14, 2014 from FNBNY and on May 27, 2011 from HSB

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(1)	$	821	$	—	$	—		$	249		$	340		$	—		$	1,410

⁽¹⁾ Includes loans acquired on May 27, 2011 from HSB

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

	Grades:
December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	465,967	$	3,239	$	2,115	$	—	$	471,321
Non-owner occupied		573,049		542		8,487		—		582,078
Multi-family loans		350,785		—		8		—		350,793
Residential real estate:
Residential		323,557		87		845		—		324,489
Home equity		66,910		523		893		—		68,326
Commercial:
Secured		121,037		151		2,549		—		123,737
Unsecured		370,642		3,191		4,196		—		378,029
Real estate construction and land loans		91,153		—		—		—		91,153
Installment/consumer loans		17,496		—		100		—		17,596
Total loans	$	2,380,596	$	7,733	$	19,193	$	—	$	2,407,522

	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

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

December 31, 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	$	—	$	—	$	435	$	631	$	1,066	$	470,255	$	471,321
Non-owner occupied		—		—		—		—		—		582,078		582,078
Multi-family loans		—		—		—		—		—		350,793		350,793
Residential real estate:
Residential mortgages		939		245		—		62		1,246		323,243		324,489
Home equity		69		100		188		610		967		67,359		68,326
Commercial:
Secured		—		—		341		—		341		123,396		123,737
Unsecured		128		24		—		44		196		377,833		378,029
Real estate construction and land loans		—		—		—		—		—		91,153		91,153
Installment/consumer loans		—		—		—		3		3		17,593		17,596
Total loans	$	1,136	$	369	$	964	$	1,350	$	3,819	$	2,403,703	$	2,407,522

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

Schedule of individually impaired loans by class

The following tables represent impaired loans by class at December 31, 2015, 2014 and 2013:

December 31, 2015	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	$	384	$	564	$	—	$	412	$	10
Non-owner occupied		927		928		—		938		62
Residential real estate:
Residential mortgages		62		73		—		66		—
Home equity		610		700		—		631		—
Commercial:
Secured		96		96		—		93		6
Unsecured		—		—		—		—		—
Total with no related allowance recorded		2,079		2,361		—		2,140		78
With an allowance recorded:
Commercial real estate – Owner occupied		—		—		—		—		—
Commercial real estate – Non-owner occupied		318		318		20		320		15
Residential real estate– Residential mortgages		—		—		—		—		—
Residential real estate – Home equity		—		—		—		—		—
Commercial–Secured		—		—		—		—		—
Commercial–Unsecured		194		194		9		223		17
Total with an allowance recorded		512		512		29		543		32
Total:
Commercial real estate:
Owner occupied		384		564		—		412		10
Non-owner occupied		1,245		1,246		20		1,258		77
Residential real estate:
Residential mortgages		62		73		—		66		—
Home equity		610		700		—		631		—
Commercial:
Secured		96		96		—		93		6
Unsecured		194		194		9		223		17
Total	$	2,591	$	2,873	$	29	$	2,683	$	110

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		71		89		72		75		13
Commercial–Secured		—		—		—		—		—
Commercial–Unsecured		337		339		79		206		—
Total with an allowance recorded		731		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		240		466		72		304		13
Commercial:
Secured		345		345		—		354		25
Unsecured		337		339		79		206		—
Total	$	6,201	$	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

Schedule of loans receivable by class modified as troubled debt restructuring

Years Ended December 31,	2015						2014						2013
	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
(Dollars in thousands)
Trouble Debt Restructurings
Commercial real estate:
Owner occupied		—	$	—	$	—		—	$	—	$	—		1	$	720	$	720
Non-owner occupied		—		—		—		1		323		323		1		620		620
Residential real estate:
Home equity:		—		—		—		1		127		127		—		—		—
Commercial:
Unsecured		3		160		160		1		127		127		1		33		33
Installment/consumer loans		—		—		—		1		5		5		—		—		—
Total loans		3	$	160	$	160		4	$	582	$	582		3	$	1,373	$	1,373

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

December 31,	2015			2014
(In thousands)
Balance at the beginning of the period	$	8,432		$	—
Accretable discount arising from acquisition of PCI loans		259			6,580
Accretion		(3,570	)		(1,598	)
Reclassification from (to) nonaccretable difference during the period		1,992			3,450
Accretable discount at end of period	$	7,113		$	8,432

Schedule of selected information about related party loans

	Balance Outstanding
(In thousands)
Balance at January 1, 2015	$	2,759
New loans		—
Effective change in related parties		20,118
Advances		13
Repayments		(101	)
Balance at December 31, 2015	$	22,789