Note 13 - Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

13.

Stockholders’ Equity

Dividend Restrictions on the Bank:

In connection with the Bank’s conversion from mutual to stock form in

November

1995,

a special liquidation account was established at the time of conversion, in accordance with the requirements of its primary regulator, which was equal to its capital as of

June

30,

1995.

The liquidation account is reduced as and to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases in deposits do not restore an eligible account holder’s interest in the liquidation account. In the event of a complete liquidation of the Bank, each eligible account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the current adjusted qualifying balances for accounts then held. As of

December

31,

2016,

the Bank’s liquidation account was

$0.7

million, and was presented within retained earnings.

In addition to the restriction described above, New York State and Federal banking regulations place certain restrictions on dividends paid by the Bank to the Holding Company. The total amount of dividends which

may

be paid at any date is generally limited to the net income of the Bank for the current year and prior

two

years, less any dividends previously paid from those earnings. As of

December

31,

2016,

the Bank had

$91.2

million in retained earnings available to distribute to the Holding Company in the form of cash dividends.

In addition, dividends paid by the Bank to the Holding Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements.

As a bank holding company, the Holding Company is subject to similar dividend restrictions.

Treasury Stock Transactions:

The Holding Company repurchased

403,695

common shares at an average cost of

$19.89

and

735,599

common shares at an average cost of

$19.51

during the years ended

December

31,

2016

and

2015,

respectively. At

December

31,

2016,

495,905

shares remain to be repurchased under the current stock repurchase program. Stock will be purchased under the current stock repurchase program from time to time, in the open market or through private transactions, subject to market conditions and at the discretion of the management of the Company. There is no expiration or maximum dollar amount under this authorization.

Accumulated Other Comprehensive Loss:

The following are changes in accumulated other comprehensive loss by component, net of tax, for the years ended

December

31,

2016,

2015

and

2014:

	Unrealized Gains
	(Losses) on
	Available for Sale			Defined Benefit
December 31, 2016	Securities			Pension Items			Total
	(In thousands)
Beginning balance, net of tax	$	(521	)	$	(5,041	)	$	(5,562	)
Other comprehensive income (loss) before reclassifications, net of tax		(2,452	)		235			(2,217	)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		(886	)		303			(583	)
Net current period other comprehensive income (loss), net of tax		(3,338	)		538			(2,800	)
Ending balance, net of tax	$	(3,859	)	$	(4,503	)	$	(8,362	)

	Unrealized Gains
	(Losses) on
	Available for Sale			Defined Benefit
December 31, 2015	Securities			Pension Items			Total
	(In thousands)
Beginning balance, net of tax	$	3,392		$	(6,299	)	$	(2,907	)
Other comprehensive income (loss) before reclassifications, net of tax		(3,818	)		615			(3,203	)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		(95	)		643			548
Net current period other comprehensive income (loss), net of tax		(3,913	)		1,258			(2,655	)
Ending balance, net of tax	$	(521	)	$	(5,041	)	$	(5,562	)

	Unrealized Gains
	(Losses) on
	Available for Sale			Defined Benefit
December 31, 2014	Securities			Pension Items			Total
	(In thousands)
Beginning balance, net of tax	$	(8,522	)	$	(2,853	)	$	(11,375	)
Other comprehensive income (loss) before reclassifications, net of tax		13,548			(3,790	)		9,758
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		(1,634	)		344			(1,290	)
Net current period other comprehensive income (loss), net of tax		11,914			(3,446	)		8,468
Ending balance, net of tax	$	3,392		$	(6,299	)	$	(2,907	)

The following tables set forth significant amounts reclassified out of accumulated other comprehensive loss by component for the periods indicated:

For the year ended December 31, 2016
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income			Where Net Income is Presented
(Dollars in thousands)
Unrealized gains (losses) on available
for sale securities:	$	1,524			Net gain on sale of securities
		(638	)		Tax expense
	$	886			Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(568	)(1)		Other operating expenses
Prior service credits		45	(1)		Other operating expenses
		(523	)		Total before tax
		220			Tax benefit
	$	(303	)		Net of tax

For the year ended December 31, 2015
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income			Where Net Income is Presented
(Dollars in thousands)
Unrealized gains (losses) on available
for sale securities:	$	167			Net gain on sale of securities
		(72	)		Tax expense
	$	95			Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(1,178	)(1)		Other operating expenses
Prior service credits		46	(1)		Other operating expenses
		(1,132	)		Total before tax
		489			Tax benefit
	$	(643	)		Net of tax

For the year ended December 31, 2014
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income			Where Net Income is Presented
(Dollars in thousands)
Unrealized gains (losses) on available
for sale securities:	$	2,875			Net gain on sale of securities
		(1,241	)		Tax expense
	$	1,634			Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(700	)(1)		Other operating expenses
Prior service credits		45	(1)		Other operating expenses
		(655	)		Total before tax
		311			Tax benefit
	$	(344	)		Net of tax

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12 of the Notes to Consolidated Financial Statements “Pension and Other Postretirement Benefit Plans”).