LOANS (Tables)

3 Months Ended

Mar. 31, 2017

LOANS

Schedule of the major classifications of loans

(In thousands)	March 31, 2017			December 31, 2016
Commercial real estate mortgage loans	$	1,030,094		$	1,016,983
Multi-family mortgage loans		535,295			518,146
Residential real estate mortgage loans		443,062			439,653
Commercial, industrial and agricultural loans		541,940			524,450
Real estate construction and land loans		85,704			80,605
Installment/consumer loans		16,863			16,368
Total loans		2,652,958			2,596,205
Net deferred loan costs and fees		4,561			4,235
Total loans held for investment		2,657,519			2,600,440
Allowance for loan losses		(26,618	)		(25,904	)
Net loans	$	2,630,901		$	2,574,536

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

	March 31, 2017
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate:
Owner occupied	$	408,052	$	19,243	$	744	$	-	$	428,039
Non-owner occupied		578,081		21,141		2,833		-		602,055
Multi-family		535,295		-		-		-		535,295
Residential real estate:
Residential mortgage		366,217		7,765		1,932		-		375,914
Home equity		66,084		484		580		-		67,148
Commercial and industrial:
Secured		75,837		31,190		1,870		-		108,897
Unsecured		425,546		4,651		2,846		-		433,043
Real estate construction and land loans		85,374		-		330		-		85,704
Installment/consumer loans		16,763		-		100		-		16,863
Total loans	$	2,557,249	$	84,474	$	11,235	$	-	$	2,652,958

	December 31, 2016
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate:
Owner occupied	$	404,584	$	18,909	$	722	$	-	$	424,215
Non-owner occupied		569,870		20,035		2,863		-		592,768
Multi-family		518,146		-		-		-		518,146
Residential real estate:
Residential mortgage		372,853		82		1,583		-		374,518
Home equity		64,195		563		377		-		65,135
Commercial and industrial:
Secured		75,837		31,143		2,254		-		109,234
Unsecured		409,879		2,493		2,844		-		415,216
Real estate construction and land loans		80,272		-		333		-		80,605
Installment/consumer loans		16,268		-		100		-		16,368
Total loans	$	2,511,904	$	73,225	$	11,076	$	-	$	2,596,205

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

	March 31, 2017
(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	$	881	$	-	$	507	$	171	$	1,559	$	426,480	$	428,039
Non-owner occupied		1,191		-		-		-		1,191		600,864		602,055
Multi-family		443		-		-		-		443		534,852		535,295
Residential real estate:
Residential mortgages		975		-		-		758		1,733		374,181		375,914
Home equity		249		-		246		262		757		66,391		67,148
Commercial and industrial:
Secured		291		-		209		-		500		108,397		108,897
Unsecured		586		45		110		65		806		432,237		433,043
Real estate construction and land loans		-		-		-		-		-		85,704		85,704
Installment/consumer loans		15		-		-		1		16		16,847		16,863
Total loans	$	4,631	$	45	$	1,072	$	1,257	$	7,005	$	2,645,953	$	2,652,958
	December 31, 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	$	222	$	-	$	467	$	184	$	873	$	423,342	$	424,215
Non-owner occupied		-		-		-		-		-		592,768		592,768
Multi-family		-		-		-		-		-		518,146		518,146
Residential real estate:
Residential mortgages		1,232		-		-		770		2,002		372,516		374,518
Home equity		532		-		238		265		1,035		64,100		65,135
Commercial and industrial:
Secured		27		-		204		-		231		109,003		109,234
Unsecured		115		-		118		22		255		414,961		415,216
Real estate construction and land loans		-		-		-		-		-		80,605		80,605
Installment/consumer loans		28		-		-		-		28		16,340		16,368
Total loans	$	2,156	$	-	$	1,027	$	1,241	$	4,424	$	2,591,781	$	2,596,205

Schedule of individually impaired loans by class

							Three Months Ended
	March 31, 2017						March 31, 2017
	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	$	311	$	529	$	-	$	158	$	2
Non-owner occupied		1,205		1,205		-		604		18
Residential real estate:
Residential mortgages		8,273		8,319		-		4,139		79
Home equity		261		284		-		131		-
Commercial and industrial:
Secured		543		543		-		270		8
Unsecured		384		384		-		196		5
Total with no related allowance recorded	$	10,977	$	11,264	$	-	$	5,498	$	112
With an allowance recorded:
Commercial real estate:
Owner occupied	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-
Residential real estate:
Residential mortgages		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial and industrial:
Secured		-		-		-		-		-
Unsecured		62		62		4		32		1
Total with an allowance recorded	$	62	$	62	$	4	$	32	$	1
Total:
Commercial real estate:
Owner occupied	$	311	$	529	$	-	$	158	$	2
Non-owner occupied		1,205		1,205		-		604		18
Residential real estate:
Residential mortgages		8,273		8,319		-		4,139		79
Home equity		261		284		-		131		-
Commercial and industrial:
Secured		543		543		-		270		8
Unsecured		446		446		4		228		6
Total	$	11,039	$	11,326	$	4	$	5,530	$	113

							Three Months Ended
	December 31, 2016						March 31, 2016
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related  Allocated Allowance		Average  Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	326	$	538	$	-	$	376	$	2
Non-owner occupied		1,213		1,213		-		1,240		19
Residential real estate:
Residential mortgages		520		558		-		198		-
Home equity		264		285		-		674		-
Commercial and industrial:
Secured		556		556		-		129		3
Unsecured		408		408		-		492		4
Total with no related allowance recorded	$	3,287	$	3,558	$	-	$	3,109	$	28
With an allowance recorded:
Commercial real estate:
Owner occupied	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-
Residential real estate:
Residential mortgages		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial and industrial:
Secured		-		-		-		-		-
Unsecured		66		66		1		188		2
Total with an allowance recorded	$	66	$	66	$	1	$	188	$	2
Total:
Commercial real estate:
Owner occupied	$	326	$	538	$	-	$	376	$	2
Non-owner occupied		1,213		1,213		-		1,240		19
Residential real estate:
Residential mortgages		520		558		-		198		-
Home equity		264		285		-		674		-
Commercial and industrial:
Secured		556		556		-		129		3
Unsecured		474		474		1		680		6
Total	$	3,353	$	3,624	$	1	$	3,297	$	30

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

	Three Months Ended March 31,
(In thousands)	2017			2016
Balance at beginning of period	$	6,915		$	7,113
Accretion		(1,857	)		(792	)
Reclassification from nonaccretable difference during the period		275			133
Other		-			418
Accretable discount at end of period	$	5,333		$	6,872