Stockholders' Equity

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements.

Stockholders' Equity

14. 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, 2021 and 2020, the Bank’s liquidation account was $0.4 million for both periods, 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, 2021, the Bank had $74.0 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 436,619 common shares at an average cost of $22.88 and 142,405 common shares at an average cost of $16.45 during the years ended December 31, 2021 and 2020, respectively. At December 31, 2021, 848,187 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, 2021	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	1,290	$	(17,521)	$	(1,884)	$	1,849	$	(16,266)
Other comprehensive income before reclassifications, net of tax		(7,484)		8,819		319		427		2,081
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		(78)		7,296		283		—		7,501
Net current period other comprehensive income, net of tax		(7,562)		16,115		602		427		9,582
Ending balance, net of tax	$	(6,272)	$	(1,406)	$	(1,282)	$	2,276	$	(6,684)

	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on				Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
December 31, 2020	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(3,982)	$	(5,863)	$	(983)	$	1,021	$	(9,807)
Other comprehensive income before reclassifications, net of tax		4,787		(14,924)		(1,112)		828		(10,421)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		485		3,266		211		—		3,962
Net current period other comprehensive income, net of tax		5,272		(11,658)		(901)		828		(6,459)
Ending balance, net of tax	$	1,290	$	(17,521)	$	(1,884)	$	1,849	$	(16,266)

	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)

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, 2021
	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:	$	113		Net gain (loss) on sale of securities
		(35)		Tax expense
	$	78		Net of tax
Cash flow hedges:
Interest rate swaps	$	(10,623)		Interest (expense)
		3,327		Tax benefit
	$	(7,296)		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(500)	(1)	Other operating expense
Prior service credits		85	(1)	Other operating expense
		(415)		Total before tax
		132		Tax benefit
	$	(283)		Net of tax

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 13 (“Pension and Other Postretirement Benefit Plan”) of the Notes to Consolidated Financial Statements “Pension and Other Postretirement Benefit Plans”

For the Year Ended December 31, 2020
	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:	$	(701)		Net loss on sale of securities
		216		Tax expense
	$	(485)		Net of tax
Cash flow hedges:
Interest rate swaps	$	(4,732)		Interest expense
		1,466		Tax expense
	$	(3,266)		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(390)	(1)	Other operating expenses
Prior service credits		85	(1)	Other operating expenses
		(305)		Total before tax
		94		Tax expense
	$	(211)		Net of tax

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 13 (“Pension and Other Postretirement Benefit Plan”) of the Notes to Consolidated Financial Statements “Pension and Other Postretirement Benefit Plans”)

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 13 (“Pension and Other Postretirement Benefit Plan”) of the Notes to Consolidated Financial Statements “Pension and Other Postretirement Benefit Plans”).