Stockholders' Equity

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018, the Bank’s liquidation account was $0.5 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, 2019, the Bank had $70.0 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 40,000 common shares at an average cost of $19.28 and 787,069 common shares at an average cost of $25.97 during the years ended December 31, 2019 and 2018, respectively. At December 31, 2019, 427,211 shares remained subject to repurchase under the authorized stock repurchase program. Stock will be purchased under the authorized 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:

	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on				Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
December 31, 2019	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(15,649)	$	3,704	$	(1,673)	$	866	$	(12,752)
Other comprehensive income before reclassifications, net of tax		11,657		(8,606)		661		155		3,867
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		10		(961)		29		—		(922)
Net current period other comprehensive income, net of tax		11,667		(9,567)		690		155		2,945
Ending balance, net of tax	$	(3,982)	$	(5,863)	$	(983)	$	1,021	$	(9,807)

	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on				Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
December 31, 2018	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(5,522)	$	231	$	(3,695)	$	—	$	(8,986)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act to Retained Earnings		(1,325)		50		(798)		—		(2,073)
Impact of adoption of Accounting Standard Update 2016-01		—		—		—		779		779
Other comprehensive income before reclassifications, net of tax		(10,127)		3,351		2,484		87		(4,205)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		1,325		72		336		—		1,733
Net current period other comprehensive income, net of tax		(8,802)		3,423		2,820		87		(2,472)
Ending balance, net of tax	$	(15,649)	$	3,704	$	(1,673)	$	866	$	(12,752)

	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on
	Available for Sale		Cash flow		Defined Benefit
December 31, 2017	Securities		Hedges		Pension Items		Total
	(In thousands)
Beginning balance, net of tax	$	(3,859)	$	—	$	(4,503)	$	(8,362)
Other comprehensive income (loss) before reclassifications, net of tax		(1,771)		105		485		(1,181)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		108		126		323		557
Net current period other comprehensive income (loss), net of tax		(1,663)		231		808		(624)
Ending balance, net of tax	$	(5,522)	$	231	$	(3,695)	$	(8,986)

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, 2019
	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:	$	(15)		Net loss on sale of securities
		5		Tax expense
	$	(10)		Net of tax
Cash flow hedges:
Interest rate swaps	$	1,392		Interest expense
		(431)		Tax expense
	$	961		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(128)	(1)	Other operating expenses
Prior service credits		85	(1)	Other operating expenses
		(43)		Total before tax
		14		Tax expense
	$	(29)		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”).

For the Year Ended December 31, 2018
	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:	$	(1,920)		Net loss on sale of securities
		595		Tax expense
	$	(1,325)		Net of tax
Cash flow hedges:
Interest rate swaps	$	(104)		Interest expense
		32		Tax expense
	$	(72)		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(530)	(1)	Other operating expenses
Prior service credits		39	(1)	Other operating expenses
		(491)		Total before tax
		155		Tax expense
	$	(336)		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”).

For the Year Ended December 31, 2017
	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:	$	(186)		Net loss on sale of securities
		78		Tax expense
	$	(108)		Net of tax
Cash flow hedges:
Interest rate swaps	$	(184)		Interest expense
		58		Tax expense
	$	(126)		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(605)	(1)	Other operating expenses
Prior service credits		45	(1)	Other operating expenses
		(560)		Total before tax
		237		Tax expense
	$	(323)		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”).