LOANS (Tables)

9 Months Ended

Sep. 30, 2016

LOANS

Schedule of the major classifications of loans

(In thousands)	September 30, 2016			December 31, 2015
Commercial real estate mortgage loans	$	1,012,675		$	999,474
Multi-family mortgage loans		517,119			350,793
Residential real estate mortgage loans		450,268			446,740
Commercial, industrial and agricultural loans		508,578			501,766
Real estate construction and land loans		78,211			91,153
Installment/consumer loans		15,498			17,596
Total loans		2,582,349			2,407,522
Net deferred loan costs and fees		3,918			3,252
		2,586,267			2,410,774
Allowance for loan losses		(24,308	)		(20,744	)
Net loans	$	2,561,959		$	2,390,030

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

	September 30, 2016
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate:
Owner occupied	$	422,617	$	3,457	$	881	$	-	$	426,955
Non-owner occupied		562,765		20,064		2,891		-		585,720
Multi-family		517,119		-		-		-		517,119
Residential real estate:
Residential mortgage		384,732		85		1,468		-		386,285
Home equity		62,794		417		772		-		63,983
Commercial and industrial:
Secured		98,897		4,530		1,917		-		105,344
Unsecured		398,801		1,133		3,300		-		403,234
Real estate construction and land loans		77,875		-		336		-		78,211
Installment/consumer loans		15,398		-		100				15,498
Total loans	$	2,540,998	$	29,686	$	11,665	$	-	$	2,582,349

	December 31, 2015
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate:
Owner occupied	$	465,967	$	3,239	$	2,115	$	-	$	471,321
Non-owner occupied		519,124		542		8,487		-		528,153
Multi-family		350,785		-		8		-		350,793
Residential real estate:
Residential mortgage		377,482		87		845		-		378,414
Home equity		66,910		523		893		-		68,326
Commercial and industrial:
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

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

	September 30, 2016
(In thousands)	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
Commercial real estate:
Owner occupied	$	590	$	-	$	616	$	198	$	1,404	$	425,551	$	426,955
Non-owner occupied		1,208		-		-		-		1,208		584,512		585,720
Multi-family		637		-		-		-		637		516,482		517,119
Residential real estate:
Residential mortgages		792		-		-		807		1,599		384,686		386,285
Home equity		45		-		231		656		932		63,051		63,983
Commercial and industrial:
Secured		302		-		197		-		499		104,845		105,344
Unsecured		266		-		-		387		653		402,581		403,234
Real estate construction and land loans		-		-		-		-		-		78,211		78,211
Installment/consumer loans		112		-		-		3		115		15,383		15,498
Total loans	$	3,952	$	-	$	1,044	$	2,051	$	7,047	$	2,575,302	$	2,582,349
	December 31, 2015
(In thousands)	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
Commercial real estate:
Owner occupied	$	-	$	-	$	435	$	631	$	1,066	$	470,255	$	471,321
Non-owner occupied		-		-		-		-		-		528,153		528,153
Multi-family		-		-		-		-		-		350,793		350,793
Residential real estate:
Residential mortgages		939		245		-		62		1,246		377,168		378,414
Home equity		69		100		188		610		967		67,359		68,326
Commercial and industrial:
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

Schedule of individually impaired loans by class

	September 30, 2016						Three Months Ended September 30, 2016				Nine Months Ended September 30, 2016
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	341	$	543	$	-	$	344	$	2	$	360	$	7
Non-owner occupied		1,221		1,221		-		1,224		20		1,232		57
Residential real estate:
Residential mortgages		554		570		-		555		-		437		-
Home equity		656		685		-		657		-		613		-
Commercial and industrial:
Secured		193		193		-		194		3		173		9
Unsecured		433		433		-		442		6		467		15
Total with no related allowance recorded	$	3,398	$	3,645	$	-	$	3,416	$	31	$	3,282	$	88
With an allowance recorded:
Commercial real estate:
Owner occupied	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-		-		-
Residential real estate:
Residential mortgages		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-
Commercial and industrial:
Secured		-		-		-		-		-		-		-
Unsecured		440		441		301		203		1		132		5
Total with an allowance recorded:	$	440	$	441	$	301	$	203	$	1	$	132	$	5
Total:
Commercial real estate:
Owner occupied	$	341	$	543	$	-	$	344	$	2	$	360	$	7
Non-owner occupied		1,221		1,221		-		1,224		20		1,232		57
Residential real estate:
Residential mortgages		554		570		-		555		-		437		-
Home equity		656		685		-		657		-		613		-
Commercial and industrial:
Secured		193		193		-		194		3		173		9
Unsecured		873		874		301		645		7		599		20
Total	$	3,838	$	4,086	$	301	$	3,619	$	32	$	3,414	$	93

	December 31, 2015						Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	384	$	564	$	-	$	702	$	3	$	720	$	8
Non-owner occupied		927		928		-		936		15		942		46
Residential real estate:
Residential mortgages		62		73		-		65		-		67		-
Home equity		610		700		-		734		-		636		-
Commercial and industrial:
Secured		96		96		-		111		2		91		4
Unsecured		-		-		-		-		-		-		-
Total with no related allowance recorded	$	2,079	$	2,361	$	-	$	2,548	$	20	$	2,456	$	58
With an allowance recorded:
Commercial real estate:
Owner occupied	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		318		318		20		319		4		321		11
Residential real estate:
Residential mortgages		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-
Commercial and industrial:
Secured		-		-		-		-		-		-		-
Unsecured		194		194		9		211		4		231		13
Total with an allowance recorded	$	512	$	512	$	29	$	530	$	8	$	552	$	24
Total:
Commercial real estate:
Owner occupied	$	384	$	564	$	-	$	702	$	3	$	720		8
Non-owner occupied		1,245		1,246		20		1,255		19		1,263		57
Residential real estate:
Residential mortgages		62		73		-		65		-		67		-
Home equity		610		700		-		734		-		636		-
Commercial and industrial:
Secured		96		96		-		111		2		91		4
Unsecured		194		194		9		211		4		231		13
Total	$	2,591	$	2,873	$	29	$	3,078	$	28	$	3,008	$	82

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands)	2016			2015			2016			2015
Balance at beginning of period	$	5,963		$	7,530		$	7,113		$	8,432
Accretable discount arising from acquisition of PCI loans		-			-			-			259
Accretion		(559	)		(658	)		(3,217	)		(3,316	)
Reclassification from nonaccretable difference during the period		46			654			1,138			2,151
Other		-			-			416			-
Accretable discount at end of period	$	5,450		$	7,526		$	5,450		$	7,526