UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
|
|||||
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
||||
|
|||||
For Quarterly period ended March 31, 2015
|
|||||
Or
|
|||||
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
||||
Commission File No. 0-13888
|
|||||
CHEMUNG FINANCIAL CORPORATION
|
|||||
(Exact name of registrant as specified in its charter)
|
|||||
New York
|
16-1237038
|
||||
(State or other jurisdiction of incorporation or organization)
|
I.R.S. Employer Identification No.
|
||||
One Chemung Canal Plaza, P.O. Box 1522, Elmira, NY
|
14902
|
||||
(Address of principal executive offices)
|
(Zip Code)
|
||||
(607) 737-3711 or (800) 836-3711
|
|||||
(Registrant's telephone number, including area code)
|
|||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
|
|||||
YES: X NO:____
|
|||||
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
|
|||||
YES: X NO:____
|
|||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
|
|||||
Large accelerated filer
|
[ ]
|
Non-accelerated filer
|
[ ]
|
||
Accelerated filer
|
[X]
|
Smaller reporting company
|
[ ]
|
||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):
|
|||||
YES: NO: X
|
|||||
The number of shares of the registrant's common stock, $.01 par value, outstanding on May 7, 2015 was 4,650,073.
|
PAGES
|
||
Glossary of Abbreviations and Terms
|
3
|
|
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1:
|
Financial Statements – Unaudited
|
|
Consolidated Balance Sheets
|
6
|
|
Consolidated Statements of Income
|
7
|
|
Consolidated Statements of Comprehensive Income
|
8
|
|
Consolidated Statements of Shareholders’ Equity
|
9
|
|
Consolidated Statements of Cash Flows
|
10
|
|
Notes to Unaudited Consolidated Financial Statements
|
12
|
|
Item 2:
|
Management's Discussion and Analysis of Financial Condition
and Results of Operations
|
34
|
Item 3:
|
Quantitative and Qualitative Disclosures About Market Risk
|
55
|
Item 4:
|
Controls and Procedures
|
56
|
PART II.
|
OTHER INFORMATION
|
|
Item 1:
|
Legal Proceedings
|
57
|
Item 1A:
|
Risk Factors
|
57
|
Item 2:
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
57
|
Item 3:
|
Defaults Upon Senior Securities
|
57
|
Item 4:
|
Mine Safety Disclosures
|
57
|
Item 5:
|
Other Information
|
57
|
Item 6:
|
Exhibits
|
58
|
SIGNATURES
|
59
|
|
EXHIBIT INDEX
|
GLOSSARY OF ABBREVIATIONS AND TERMS
|
|
To assist the reader the Corporation has provided the following list of commonly used abbreviations and terms included in the Notes to the Unaudited Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
|
Abbreviations
|
|
ALCO
|
Asset-Liability Committee
|
ASU
|
Accounting Standards Update
|
Bank
|
Chemung Canal Trust Company
|
CDARS
|
Certificate of Deposit Account Registry Service
|
CDO
|
Collateralized Debt Obligation
|
CFS
|
CFS Group, Inc.
|
Corporation
|
Chemung Financial Corporation
|
Dodd-Frank Act
|
The Dodd-Frank Wall Street Reform and Consumer Protection Act
|
EPS
|
Earnings per share
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLBNY
|
Federal Home Loan Bank New York
|
FRB
|
Board of Governors of the Federal Reserve System
|
FRBNY
|
Federal Reserve Bank of New York
|
Freddie Mac
|
Federal Home Loan Mortgage Corporation
|
GAAP
|
U.S. Generally Accepted Accounting Principles
|
ICS
|
Insured Cash Sweep Service
|
MD&A
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
NAICS
|
North American Industry Classification System
|
OPEB
|
Other postemployment benefits
|
OREO
|
Other real estate owned
|
OTTI
|
Other-than-temporary impairment
|
PCI
|
Purchased credit impaired
|
ROA
|
Return on average assets
|
ROE
|
Return on average equity
|
RWA
|
Risk-weighted assets
|
SBA
|
Small Business Administration
|
SEC
|
Securities and Exchange Commission
|
TDRs
|
Troubled debt restructurings
|
WMG
|
Wealth Management Group
|
Terms
|
|
Allowance for loan losses to total loans
|
Represents period-end allowance for loan losses divided by retained loans.
|
Assets under administration
|
Represents assets that are beneficially owned by clients and all investment decisions pertaining to these assets are also made by clients.
|
Assets under management
|
Represents assets that are managed on behalf of clients.
|
Basel III
|
A comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector.
|
Benefit obligation
|
Refers to the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for OPEB plans.
|
Capital Bank
|
Division of Chemung Canal Trust Company located in the “Capital Region” of New York State and includes the counties of Albany and Saratoga.
|
CDARS
|
Program involving a network of financial institutions that exchange certificates of deposits among members in order to ensure FDIC insurance coverage on customer deposits above the single institution limit. Using a sophisticated matching system, funds are exchanged on a dollar-for-dollar basis, so that the equivalent of an original deposit comes back to the originating institution.
|
Collateralized debt obligation
|
A structured financial product that pools together cash flow-generating assets, such as mortgages, bonds, and loans.
|
Collateralized mortgage obligations
|
A type of mortgage-backed security with principal repayments organized according to their maturities and into different classes based on risk. The mortgages serve as collateral and are organized into classes based on their risk profile.
|
Dodd-Frank Act
|
The Dodd-Frank Act was enacted on July 21, 2010 and significantly changed the bank regulatory landscape and has impacted and will continue to impact the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies. The Dodd-Frank Act requires various federal agencies to adopt a broad range of new rules and regulations, and to prepare various studies and reports for Congress.
|
Fully taxable equivalent basis
|
Represents revenue from investments that receive tax credits and tax-exempt securities are presented on a basis comparable to taxable investments and securities; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense.
|
GAAP
|
Accounting principles generally accepted in the United States of America.
|
Holding company and other
|
Consists of the operations for Chemung Financial Corporation (parent only) and CFS.
|
ICS
|
Program involving a network of financial institutions that exchange interest-bearing money market deposits among members in order to ensure FDIC insurance coverage on customer deposits above the single institution limit. Using a sophisticated matching system, funds are exchanged on a dollar-for-dollar basis, so that the equivalent of an original deposit comes back to the originating institution.
|
Loans held for sale
|
Residential real estate originated for sale on the secondary market with maturities from 15-30 years.
|
Mortgage-backed securities
|
A type of asset-backed security that is secured by a collection of mortgages.
|
Municipal clients
|
A political unit, such as a city, town, or village, incorporated for local self-government.
|
N/A
|
Data is not applicable or available for the period presented.
|
N/M
|
Not meaningful.
|
Non-GAAP
|
A calculation not made according to GAAP.
|
Obligations of state and political subdivisions
|
An obligation that is guaranteed by the full faith and credit of a state or political subdivision that has the power to tax.
|
Obligations of U.S. Government
|
A federally guaranteed obligation backed by the full power of the U.S. government, including Treasury bills, treasury notes and treasury bonds.
|
Obligations of U.S. Government sponsored enterprise obligations
|
Obligations of agencies originally established or chartered by the U.S. government to serve public purposes as specified by the U.S. Congress; these obligations are not explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government.
|
Other real estate owned
|
Represents real property owned by the Corporation, which is not directly related to its business and is most frequently the result of a foreclosure on real property.
|
OTTI
|
Impairment charge taken on a security whose fair value has fallen below the carrying value on the balance sheet and whose value is not expected to recover through the holding period of the security.
|
PCI loans
|
Represents loans that were acquired in the Fort Orange Financial Corp. transaction and deemed to be credit-impaired on the acquisition date in accordance with the guidance of FASB.
|
Political subdivision
|
A county, city, town, or other municipal corporation, a public authority, or a publicly-owned entity that is an instrumentality of a state or a municipal corporation.
|
Pre-provision profit/(loss)
|
Represents total net revenue less noninterest expense. The Corporation believes that this financial measure is useful in assessing the ability of a bank to generate income in excess of its provision for credit losses.
|
RWA
|
Risk-weighted assets consist of on- and off-balance sheet assets that are assigned to one of several broad risk categories and weighted by factors representing their risk and potential for default. On-balance sheet assets are risk-weighted based on the perceived credit risk associated with the obligor or counterparty, the nature of any collateral, and the guarantor, if any. Off-balance sheet assets such as lending-related commitments, guarantees, derivatives and other applicable off-balance sheet positions are risk-weighted by multiplying the contractual amount by the appropriate credit conversion factor to determine the on-balance sheet credit equivalent amount, which is then risk-weighted based on the same factors used for on-balance sheet assets. Risk-weighted assets also incorporate a measure for market risk related to applicable trading assets-debt and equity instruments. The resulting risk-weighted values for each of the risk categories are then aggregated to determine total risk-weighted assets.
|
SBA loan pools
|
Business loans partially guaranteed by the SBA
|
Securities sold under agreements to repurchase
|
Sale of securities together with an agreement for the seller to buy back the securities at a later date.
|
TDR
|
A TDR is deemed to occur when the Corporation modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty.
|
Trust preferred securities
|
A hybrid security with characteristics of both subordinated debt and preferred stock which allows for early redemption by the issuer, makes fixed or variable payments, and matures at face value.
|
Unaudited
|
Financial statements and information that have not been subjected to auditing procedures sufficient to permit an independent certified public accountant to express an opinion.
|
Wealth Management Group
|
Provides services as executor and trustee under wills and agreements, and guardian, custodian, trustee and agent for pension, profit-sharing and other employee benefit trusts, as well as various investment, financial planning, pension, estate planning and employee benefit administration services.
|
CHEMUNG FINANCIAL CORPORATION AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
UNAUDITED
|
||||||||
(in thousands, except share and per share data)
|
March 31,
2015
|
December 31,
2014
|
||||||
ASSETS
|
||||||||
Cash and due from financial institutions
|
$
|
29,643
|
$
|
28,130
|
||||
Interest-bearing deposits in other financial institutions
|
55,230
|
1,033
|
||||||
Total cash and cash equivalents
|
84,873
|
29,163
|
||||||
Trading assets, at fair value
|
601
|
549
|
||||||
Securities available for sale, at estimated fair value
|
266,307
|
280,507
|
||||||
Securities held to maturity, estimated fair value of $6,076 at March 31, 2015
and $6,197 at December 31, 2014
|
5,693
|
5,831
|
||||||
FHLBNY and FRBNY Stock, at cost
|
4,148
|
5,535
|
||||||
Loans, net of deferred loan fees
|
1,143,572
|
1,121,574
|
||||||
Allowance for loan losses
|
(13,892
|
)
|
(13,686
|
)
|
||||
Loans, net
|
1,129,680
|
1,107,888
|
||||||
Loans held for sale
|
628
|
665
|
||||||
Premises and equipment, net
|
31,548
|
32,287
|
||||||
Goodwill
|
21,824
|
21,824
|
||||||
Other intangible assets, net
|
4,763
|
5,067
|
||||||
Bank owned life insurance
|
2,782
|
2,764
|
||||||
Accrued interest receivable and other assets
|
31,925
|
32,459
|
||||||
Total assets
|
$
|
1,584,772
|
$
|
1,524,539
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Deposits:
|
||||||||
Non-interest-bearing
|
$
|
376,773
|
$
|
366,298
|
||||
Interest-bearing
|
991,357
|
913,716
|
||||||
Total deposits
|
1,368,130
|
1,280,014
|
||||||
FHLBNY overnight advances
|
-
|
30,830
|
||||||
Securities sold under agreements to repurchase
|
31,084
|
29,652
|
||||||
FHLBNY term advances
|
19,283
|
19,310
|
||||||
Long term capital lease obligation
|
2,976
|
2,976
|
||||||
Dividends payable
|
1,209
|
1,204
|
||||||
Accrued interest payable and other liabilities
|
25,797
|
26,925
|
||||||
Total liabilities
|
1,448,479
|
1,390,911
|
||||||
Shareholders' equity:
|
||||||||
Common stock, $0.01 par value per share, 10,000,000 shares authorized;
5,310,076 issued at March 31, 2015 and December 31, 2014
|
53
|
53
|
||||||
Additional-paid-in-capital
|
45,477
|
45,355
|
||||||
Retained earnings
|
115,450
|
114,383
|
||||||
Treasury stock, at cost (662,244 shares at March 31, 2015; 680,948
shares at December 31, 2014)
|
(16,900
|
)
|
(17,378
|
)
|
||||
Accumulated other comprehensive loss
|
(7,787
|
)
|
(8,785
|
)
|
||||
Total shareholders' equity
|
136,293
|
133,628
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,584,772
|
$
|
1,524,539
|
||||
See accompanying notes to unaudited consolidated financial statements.
|
THREE MONTHS ENDED
MARCH 31,
|
||||||||
(in thousands, except per share data)
|
2015
|
2014
|
||||||
Interest and dividend income:
|
||||||||
Loans, including fees
|
$
|
11,903
|
$
|
11,168
|
||||
Taxable securities
|
1,089
|
1,503
|
||||||
Tax exempt securities
|
219
|
264
|
||||||
Interest-bearing deposits
|
23
|
19
|
||||||
Total interest and dividend income
|
13,234
|
12,954
|
||||||
Interest expense
|
||||||||
Deposits
|
486
|
522
|
||||||
Securities sold under agreements to repurchase
|
209
|
209
|
||||||
Borrowed funds
|
197
|
190
|
||||||
Total interest expense
|
892
|
921
|
||||||
Net interest income
|
12,342
|
12,033
|
||||||
Provision for loan losses
|
390
|
639
|
||||||
Net interest income after provision for loan losses
|
11,952
|
11,394
|
||||||
Other non-interest income:
|
||||||||
WMG fee income
|
2,126
|
1,883
|
||||||
Service charges on deposit accounts
|
1,138
|
1,232
|
||||||
Net gain on security transactions
|
50
|
-
|
||||||
Net gain on sales of loans held for sale
|
52
|
41
|
||||||
Net gains (losses) on sales of other real estate owned
|
78
|
(30
|
)
|
|||||
Income from bank owned life insurance
|
18
|
19
|
||||||
Other
|
1,724
|
1,819
|
||||||
Total other non-interest income
|
5,186
|
4,964
|
||||||
Other non-interest expense:
|
||||||||
Salaries and wages
|
5,100
|
5,153
|
||||||
Pension and other employee benefits
|
1,729
|
1,359
|
||||||
Net occupancy expenses
|
1,850
|
1,793
|
||||||
Furniture and equipment expenses
|
733
|
630
|
||||||
Data processing expense
|
1,561
|
1,481
|
||||||
Professional services
|
269
|
222
|
||||||
Amortization of intangible assets
|
304
|
344
|
||||||
Marketing and advertising expenses
|
235
|
293
|
||||||
Other real estate owned expenses
|
84
|
87
|
||||||
FDIC insurance
|
286
|
269
|
||||||
Loan expense
|
140
|
149
|
||||||
Merger and acquisition related expenses
|
-
|
86
|
||||||
Other
|
1,445
|
1,477
|
||||||
Total other non-interest expenses
|
13,736
|
13,343
|
||||||
Income before income tax expense
|
3,402
|
3,015
|
||||||
Income tax expense
|
1,126
|
951
|
||||||
Net income
|
$
|
2,276
|
$
|
2,064
|
||||
Weighted average shares outstanding
|
4,707
|
4,677
|
||||||
Basic and diluted earnings per share
|
$
|
0.48
|
$
|
0.44
|
Three Months Ended March 31,
|
||||||||
(in thousands)
|
2015
|
2014
|
||||||
Net income
|
$
|
2,276
|
$
|
2,064
|
||||
Other comprehensive income:
|
||||||||
Unrealized holding gains on securities available for sale
|
1,265
|
884
|
||||||
Reclassification adjustment for gains realized in net income
|
(50
|
)
|
-
|
|||||
Net unrealized gains
|
1,215
|
884
|
||||||
Tax effect
|
441
|
340
|
||||||
Net of tax amount
|
774
|
544
|
||||||
Change in funded status of defined benefit pension plan and other benefit plans:
|
||||||||
Net gain (loss) arising during the period
|
-
|
-
|
||||||
Reclassification adjustment for amortization of prior service costs
|
(22
|
)
|
(22
|
)
|
||||
Reclassification adjustment for amortization of net actuarial loss
|
383
|
165
|
||||||
Total before tax effect
|
361
|
143
|
||||||
Tax effect
|
137
|
55
|
||||||
Net of tax amount
|
224
|
88
|
||||||
Total other comprehensive income
|
998
|
632
|
||||||
Comprehensive income
|
$
|
3,274
|
$
|
2,696
|
||||
(in thousands, except share data)
|
Common Stock
|
Additional Paid-in Capital
|
Retained Earnings
|
Treasury Stock
|
Accumulated Other Comprehensive Income (Loss)
|
Total
|
||||||||||||||||||
Balances at January 1, 2014
|
$
|
53
|
$
|
45,399
|
$
|
111,031
|
$
|
(18,060
|
)
|
$
|
155
|
$
|
138,578
|
|||||||||||
Net income
|
-
|
-
|
2,064
|
-
|
-
|
2,064
|
||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
632
|
632
|
||||||||||||||||||
Restricted stock awards
|
-
|
36
|
-
|
-
|
-
|
36
|
||||||||||||||||||
Restricted stock units for directors' deferred compensation plan
|
-
|
23
|
-
|
-
|
-
|
23
|
||||||||||||||||||
Cash dividends declared ($0.26 per share)
|
-
|
-
|
(1,200
|
)
|
-
|
-
|
(1,200
|
)
|
||||||||||||||||
Distribution of 8,385 shares of treasury stock for directors'
compensation
|
-
|
59
|
-
|
214
|
-
|
273
|
||||||||||||||||||
Distribution of 990 shares of treasury stock for employee
restricted stock awards, net
|
-
|
(26
|
)
|
-
|
26
|
-
|
-
|
|||||||||||||||||
Distribution of 3,595 shares of treasury stock for employee
compensation
|
-
|
25
|
-
|
92
|
-
|
117
|
||||||||||||||||||
Balances at March 31, 2014
|
$
|
53
|
$
|
45,516
|
$
|
111,895
|
$
|
(17,728
|
)
|
$
|
787
|
$
|
140,523
|
|||||||||||
Balances at January 1, 2015
|
$
|
53
|
$
|
45,355
|
$
|
114,383
|
$
|
(17,378
|
)
|
$
|
(8,785
|
)
|
$
|
133,628
|
||||||||||
Net income
|
-
|
-
|
2,276
|
-
|
-
|
2,276
|
||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
998
|
998
|
||||||||||||||||||
Restricted stock awards
|
-
|
52
|
-
|
-
|
-
|
52
|
||||||||||||||||||
Restricted stock units for directors' deferred compensation plan
|
-
|
25
|
-
|
-
|
-
|
25
|
||||||||||||||||||
Cash dividends declared ($0.26 per share)
|
-
|
-
|
(1,209
|
)
|
-
|
-
|
(1,209
|
)
|
||||||||||||||||
Distribution of 9,673 shares of treasury stock for directors'
compensation
|
-
|
24
|
-
|
247
|
-
|
271
|
||||||||||||||||||
Distribution of 3,303 shares of treasury stock for employee
compensation
|
-
|
8
|
-
|
85
|
-
|
93
|
||||||||||||||||||
Sale of 5,728 shares of treasury stock
|
-
|
13
|
-
|
146
|
-
|
159
|
||||||||||||||||||
Balances at March 31, 2015
|
$
|
53
|
$
|
45,477
|
$
|
115,450
|
$
|
(16,900
|
)
|
$
|
(7,787
|
)
|
$
|
136,293
|
||||||||||
(in thousands)
|
THREE MONTHS ENDED
MARCH 31,
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
2015
|
2014
|
||||||
Net income
|
$
|
2,276
|
$
|
2,064
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization of intangible assets
|
304
|
344
|
||||||
Provision for loan losses
|
390
|
639
|
||||||
Gain on disposal of fixed assets
|
(9
|
)
|
(7
|
)
|
||||
Depreciation and amortization of fixed assets
|
1,024
|
886
|
||||||
Amortization of premiums on securities, net
|
549
|
614
|
||||||
Gains on sales of loans held for sale, net
|
(52
|
)
|
(41
|
)
|
||||
Proceeds from sales of loans held for sale
|
2,341
|
1,804
|
||||||
Loans originated and held for sale
|
(2,252
|
)
|
(1,143
|
)
|
||||
Net gains on trading assets
|
(10
|
)
|
(12
|
)
|
||||
Net gains on securities transactions
|
(50
|
)
|
-
|
|||||
Net (gains) losses on sales of other real estate owned
|
(78
|
)
|
30
|
|||||
Purchase of trading assets
|
(42
|
)
|
(35
|
)
|
||||
(Increase) decrease in other assets
|
(25
|
)
|
1,354
|
|||||
Decrease in accrued interest payable
|
(12
|
)
|
(46
|
)
|
||||
Expense related to restricted stock units for directors' deferred compensation plan
|
25
|
23
|
||||||
Expense related to employee stock compensation
|
93
|
117
|
||||||
Expense related to employee stock awards
|
52
|
36
|
||||||
Decrease in other liabilities
|
(1,062
|
)
|
(4,021
|
)
|
||||
Income from bank owned life insurance
|
(18
|
)
|
(19
|
)
|
||||
Net cash provided by operating activities
|
3,444
|
2,587
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from sales and calls of securities available for sale
|
5,751
|
5,000
|
||||||
Proceeds from maturities and principal collected on securities available for sale
|
9,165
|
5,027
|
||||||
Proceeds from maturities and principal collected on securities held to maturity
|
598
|
630
|
||||||
Purchases of securities available for sale
|
-
|
(875
|
)
|
|||||
Purchases of securities held to maturity
|
(460
|
)
|
(261
|
)
|
||||
Purchase of FHLBNY and FRBNY stock
|
(2,391
|
)
|
-
|
|||||
Redemption of FHLBNY and FRBNY stock
|
3,778
|
-
|
||||||
Proceeds from sale of equipment
|
9
|
7
|
||||||
Purchases of premises and equipment
|
(285
|
)
|
(198
|
)
|
||||
Proceeds from sales of other real estate owned
|
647
|
249
|
||||||
Net increase in loans
|
(22,192
|
)
|
(28,958
|
)
|
||||
Net cash used by investing activities
|
(5,380
|
)
|
(19,379
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net increase in demand deposits, interest-bearing demand accounts,
savings accounts, and insured money market accounts
|
112,008
|
34,257
|
||||||
Net decrease in time deposits
|
(23,892
|
)
|
(8,623
|
)
|
||||
Net increase (decrease) in securities sold under agreements to repurchase
|
1,432
|
(2,055
|
)
|
|||||
Repayments of FHLBNY long term advances
|
(27
|
)
|
(54
|
)
|
||||
Repayments of FHLBNY overnight advances, net
|
(30,830
|
)
|
-
|
|||||
Sale of treasury stock
|
159
|
-
|
||||||
Cash dividends paid
|
(1,204
|
)
|
(1,194
|
)
|
||||
Net cash provided by financing activities
|
57,646
|
22,331
|
||||||
Net increase in cash and cash equivalents
|
55,710
|
5,539
|
||||||
Cash and cash equivalents, beginning of period
|
29,163
|
51,609
|
||||||
Cash and cash equivalents, end of period
|
$
|
84,873
|
$
|
57,148
|
THREE MONTHS ENDED MARCH 31,
|
||||||||
Supplemental disclosure of cash flow information:
|
2015
|
2014
|
||||||
Cash paid for:
|
||||||||
Interest
|
$
|
904
|
$
|
967
|
||||
Income taxes
|
$
|
1,546
|
$
|
68
|
||||
Supplemental disclosure of non-cash activity:
|
||||||||
Transfer of loans to other real estate owned
|
$
|
10
|
$
|
-
|
||||
Dividends declared, not yet paid
|
$
|
1,209
|
$
|
1,200
|
||||
See accompanying notes to unaudited consolidated financial statements.
|
March 31, 2015
|
||||||||||||||||
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||
Obligations of U.S. Government and U.S.
Government sponsored enterprises
|
$
|
168,426
|
$
|
2,021
|
$
|
-
|
$
|
170,447
|
||||||||
Mortgage-backed securities, residential
|
57,951
|
1,231
|
-
|
59,182
|
||||||||||||
Collateralized mortgage obligations
|
229
|
2
|
-
|
231
|
||||||||||||
Obligations of states and political subdivisions
|
30,356
|
808
|
12
|
31,152
|
||||||||||||
Corporate bonds and notes
|
1,500
|
28
|
-
|
1,528
|
||||||||||||
SBA loan pools
|
1,253
|
10
|
3
|
1,260
|
||||||||||||
Trust Preferred securities
|
1,908
|
116
|
-
|
2,024
|
||||||||||||
Corporate stocks
|
285
|
198
|
-
|
483
|
||||||||||||
Total
|
$
|
261,908
|
$
|
4,414
|
$
|
15
|
$
|
266,307
|
December 31, 2014
|
||||||||||||||||
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||
Obligations of U.S. Government and U.S.
Government sponsored enterprises
|
$
|
180,535
|
$
|
1,300
|
$
|
162
|
$
|
181,673
|
||||||||
Mortgage-backed securities, residential
|
60,787
|
892
|
19
|
61,660
|
||||||||||||
Collateralized mortgage obligations
|
335
|
3
|
-
|
338
|
||||||||||||
Obligations of states and political subdivisions
|
30,677
|
802
|
28
|
31,451
|
||||||||||||
Corporate bonds and notes
|
1,502
|
35
|
4
|
1,533
|
||||||||||||
SBA loan pools
|
1,296
|
11
|
3
|
1,304
|
||||||||||||
Trust preferred securities
|
1,906
|
122
|
-
|
2,028
|
||||||||||||
Corporate stocks
|
285
|
235
|
-
|
520
|
||||||||||||
Total
|
$
|
277,323
|
$
|
3,400
|
$
|
216
|
$
|
280,507
|
March 31, 2015
|
||||||||||||||||
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||
Obligations of states and political subdivisions
|
$
|
5,253
|
$
|
379
|
$
|
-
|
$
|
5,632
|
||||||||
Time deposits with other financial institutions
|
440
|
4
|
-
|
444
|
||||||||||||
Total
|
$
|
5,693
|
$
|
383
|
$
|
-
|
$
|
6,076
|
December 31, 2014
|
||||||||||||||||
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||
Obligations of states and political subdivisions
|
$
|
5,175
|
$
|
360
|
$
|
-
|
$
|
5,535
|
||||||||
Time deposits with other financial institutions
|
656
|
6
|
-
|
662
|
||||||||||||
Total
|
$
|
5,831
|
$
|
366
|
$
|
-
|
$
|
6,197
|
March 31, 2015
|
||||||||||||||||
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Within one year
|
$
|
33,780
|
$
|
34,151
|
$
|
2,639
|
$
|
2,667
|
||||||||
After one, but within five years
|
162,966
|
165,245
|
2,051
|
2,243
|
||||||||||||
After five, but within ten years
|
5,444
|
5,755
|
1,003
|
1,166
|
||||||||||||
After ten years
|
-
|
-
|
-
|
-
|
||||||||||||
202,190
|
205,151
|
5,693
|
6,076
|
|||||||||||||
Mortgage-backed securities, residential
|
57,951
|
59,182
|
-
|
-
|
||||||||||||
Collateralized mortgage obligations
|
229
|
231
|
-
|
-
|
||||||||||||
SBA loan pools
|
1,253
|
1,260
|
-
|
-
|
||||||||||||
Total
|
$
|
261,623
|
$
|
265,824
|
$
|
5,693
|
$
|
6,076
|
2015
|
2014
|
|||||||
Proceeds
|
$
|
51
|
$
|
-
|
||||
Gross gains
|
$
|
50
|
$
|
-
|
||||
Tax expense
|
$
|
19
|
$
|
-
|
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
March 31, 2015
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
||||||||||||||||||
Obligations of states and
political subdivisions
|
$
|
1,850
|
$
|
10
|
$
|
740
|
$
|
2
|
$
|
2,590
|
$
|
12
|
||||||||||||
SBA loan pools
|
-
|
-
|
579
|
3
|
579
|
3
|
||||||||||||||||||
Total temporarily
impaired securities
|
$
|
1,850
|
$
|
10
|
$
|
1,319
|
$
|
5
|
$
|
3,169
|
$
|
15
|
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
December 31, 2014
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
||||||||||||||||||
Obligations of U.S.
Government and U.S.
Government sponsored
enterprises
|
$
|
57,512
|
$
|
108
|
$
|
4,945
|
$
|
54
|
$
|
62,457
|
$
|
162
|
||||||||||||
Mortgage-backed securities,
residential
|
11,051
|
19
|
-
|
-
|
11,051
|
19
|
||||||||||||||||||
Obligations of states and
political subdivisions
|
4,625
|
22
|
1,056
|
6
|
5,681
|
28
|
||||||||||||||||||
Corporate bonds and notes
|
-
|
-
|
243
|
4
|
243
|
4
|
||||||||||||||||||
Corporate stocks
|
276
|
1
|
316
|
2
|
592
|
3
|
||||||||||||||||||
Total temporarily
impaired securities
|
$
|
73,464
|
$
|
150
|
$
|
6,560
|
$
|
66
|
$
|
80,024
|
$
|
216
|
2015
|
2014
|
|||||||
Beginning balance, January 1,
|
$
|
-
|
$
|
1,939
|
||||
Amounts related to credit loss for which an other-than-temporary
impairment was not previously recognized
|
-
|
-
|
||||||
Additions/Subtractions:
|
||||||||
Amounts realized for securities sold during the period
|
-
|
-
|
||||||
Amounts related to securities for which the Corporation intends to sell
or that it will be more likely than not that the Corporation will be required to
sell prior to recovery of amortized cost basis
|
-
|
-
|
||||||
Reductions for increase in cash flows expected to be collected that are
recognized over the remaining life of the security
|
-
|
-
|
||||||
Reductions for previous credit losses realized in securities liquidated during the period
|
-
|
(1,939
|
)
|
|||||
Increases to the amount related to the credit loss for which other-than-temporary
impairment was previously recognized
|
-
|
-
|
||||||
Ending balance, March 31,
|
$
|
-
|
$
|
-
|
March 31,
2015
|
December 31,
2014
|
|||||||
Commercial and agricultural:
|
||||||||
Commercial and industrial
|
$
|
170,677
|
$
|
165,385
|
||||
Agricultural
|
1,155
|
1,021
|
||||||
Commercial mortgages:
|
||||||||
Construction
|
49,392
|
54,831
|
||||||
Commercial mortgages
|
430,993
|
397,762
|
||||||
Residential mortgages
|
198,628
|
196,809
|
||||||
Consumer loans:
|
||||||||
Credit cards
|
1,526
|
1,654
|
||||||
Home equity lines and loans
|
98,706
|
99,354
|
||||||
Indirect consumer loans
|
173,722
|
184,763
|
||||||
Direct consumer loans
|
18,773
|
19,995
|
||||||
Total loans, net of deferred loan fees
|
$
|
1,143,572
|
$
|
1,121,574
|
||||
Interest receivable on loans
|
2,673
|
2,780
|
||||||
Total recorded investment in loans
|
$
|
1,146,245
|
$
|
1,124,354
|
Three Months Ended
|
||||||||||||||||||||
March 31, 2015
|
||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial Mortgages
|
Residential
Mortgages
|
Consumer
Loans
|
Total
|
|||||||||||||||
Beginning balance:
|
$
|
1,460
|
$
|
6,326
|
$
|
1,572
|
$
|
4,328
|
$
|
13,686
|
||||||||||
Charge-offs:
|
-
|
-
|
(21
|
)
|
(369
|
)
|
(390
|
)
|
||||||||||||
Recoveries:
|
15
|
67
|
-
|
124
|
206
|
|||||||||||||||
Net recoveries (charge-offs)
|
15
|
67
|
(21
|
)
|
(245
|
)
|
(184
|
)
|
||||||||||||
Provision
|
196
|
137
|
43
|
14
|
390
|
|||||||||||||||
Ending balance
|
$
|
1,671
|
$
|
6,530
|
$
|
1,594
|
$
|
4,097
|
$
|
13,892
|
Three Months Ended
|
||||||||||||||||||||
March 31, 2014
|
||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial Mortgages
|
Residential
Mortgages
|
Consumer
Loans
|
Total
|
|||||||||||||||
Beginning balance:
|
$
|
1,979
|
$
|
6,243
|
$
|
1,517
|
$
|
3,037
|
$
|
12,776
|
||||||||||
Charge-offs:
|
(55
|
)
|
(44
|
)
|
(7
|
)
|
(467
|
)
|
(573
|
)
|
||||||||||
Recoveries:
|
92
|
38
|
-
|
183
|
313
|
|||||||||||||||
Net recoveries (charge-offs)
|
37
|
(6
|
)
|
(7
|
)
|
(284
|
)
|
(260
|
)
|
|||||||||||
Provision
|
(71
|
)
|
247
|
42
|
421
|
639
|
||||||||||||||
Ending balance
|
$
|
1,945
|
$
|
6,484
|
$
|
1,552
|
$
|
3,174
|
$
|
13,155
|
March 31, 2015
|
||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial
Mortgages
|
Residential
Mortgages
|
Consumer
Loans
|
Total
|
|||||||||||||||
Ending allowance balance
attributable to loans:
|
||||||||||||||||||||
Individually evaluated for
impairment
|
$
|
301
|
$
|
1,280
|
$
|
-
|
$
|
-
|
$
|
1,581
|
||||||||||
Collectively evaluated for
impairment
|
1,370
|
5,214
|
1,572
|
4,097
|
12,253
|
|||||||||||||||
Loans acquired with
deteriorated credit quality
|
-
|
36
|
22
|
-
|
58
|
|||||||||||||||
Total ending allowance balance
|
$
|
1,671
|
$
|
6,530
|
$
|
1,594
|
$
|
4,097
|
$
|
13,892
|
December 31, 2014
|
||||||||||||||||||||
Allowance for loan losses
|
Commercial and Agricultural
|
Commercial
Mortgages
|
Residential
Mortgages
|
Consumer
Loans
|
Total
|
|||||||||||||||
Ending allowance balance
attributable to loans:
|
||||||||||||||||||||
Individually evaluated for
impairment
|
$
|
89
|
$
|
1,145
|
$
|
-
|
$
|
1
|
$
|
1,235
|
||||||||||
Collectively evaluated for
impairment
|
1,335
|
5,145
|
1,550
|
4,327
|
12,357
|
|||||||||||||||
Loans acquired with
deteriorated credit quality
|
36
|
36
|
22
|
-
|
94
|
|||||||||||||||
Total ending allowance balance
|
$
|
1,460
|
$
|
6,326
|
$
|
1,572
|
$
|
4,328
|
$
|
13,686
|
March 31, 2015
|
||||||||||||||||||||
Loans:
|
Commercial and
Agricultural
|
Commercial Mortgages
|
Residential
Mortgages
|
Consumer
Loans
|
Total
|
|||||||||||||||
Loans individually
evaluated for impairment
|
$
|
1,973
|
$
|
13,767
|
$
|
249
|
$
|
483
|
$
|
16,472
|
||||||||||
Loans collectively
evaluated for impairment
|
170,254
|
465,960
|
198,622
|
292,920
|
1,127,756
|
|||||||||||||||
Loans acquired with
deteriorated credit quality
|
-
|
1,761
|
256
|
-
|
2,017
|
|||||||||||||||
Total ending loans balance
|
$
|
172,227
|
$
|
481,488
|
$
|
199,127
|
$
|
293,403
|
$
|
1,146,245
|
December 31, 2014
|
||||||||||||||||||||
Loans:
|
Commercial and
Agricultural
|
Commercial Mortgages
|
Residential
Mortgages
|
Consumer
Loans
|
Total
|
|||||||||||||||
Loans individually
evaluated for impairment
|
$
|
1,452
|
$
|
13,712
|
$
|
254
|
$
|
486
|
$
|
15,904
|
||||||||||
Loans collectively
evaluated for impairment
|
164,748
|
438,246
|
196,783
|
306,042
|
1,105,819
|
|||||||||||||||
Loans acquired with
deteriorated credit quality
|
620
|
1,761
|
250
|
-
|
2,631
|
|||||||||||||||
Total ending loans balance
|
$
|
166,820
|
$
|
453,719
|
$
|
197,287
|
$
|
306,528
|
$
|
1,124,354
|
March 31, 2015
|
December 31, 2014
|
|||||||||||||||||||||||
With no related allowance recorded:
|
Unpaid Principal Balance
|
Recorded
Investment
|
Allowance for Loan Losses Allocated
|
Unpaid Principal Balance
|
Recorded
Investment
|
Allowance for Loan Losses Allocated
|
||||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
1,668
|
$
|
1,670
|
$
|
-
|
$
|
1,359
|
$
|
1,364
|
$
|
-
|
||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||
Construction
|
1,919
|
1,899
|
-
|
1,927
|
1,910
|
-
|
||||||||||||||||||
Commercial mortgages other
|
7,686
|
7,593
|
-
|
7,803
|
7,708
|
-
|
||||||||||||||||||
Residential mortgages
|
249
|
249
|
-
|
253
|
253
|
-
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity lines and loans
|
480
|
483
|
-
|
429
|
432
|
-
|
||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||||||||||
Commercial and industrial
|
301
|
303
|
301
|
89
|
89
|
89
|
||||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||
Commercial mortgages other
|
4,394
|
4,275
|
1,280
|
4,210
|
4,094
|
1,145
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity lines and loans
|
-
|
-
|
-
|
54
|
54
|
1
|
||||||||||||||||||
Total
|
$
|
16,697
|
$
|
16,472
|
$
|
1,581
|
$
|
16,124
|
$
|
15,904
|
$
|
1,235
|
Three Months Ended March 31, 2015
|
Three Months Ended March 31, 2014
|
|||||||||||||||
With no related allowance recorded:
|
Average Recorded Investment
|
Interest Income Recognized (1)
|
Average Recorded Investment
|
Interest Income Recognized (1)
|
||||||||||||
Commercial and agricultural:
|
||||||||||||||||
Commercial and industrial
|
$
|
1,517
|
$
|
15
|
$
|
1,656
|
$
|
14
|
||||||||
Commercial mortgages:
|
||||||||||||||||
Construction
|
1,904
|
25
|
2,296
|
25
|
||||||||||||
Commercial mortgages other
|
7,674
|
63
|
7,005
|
63
|
||||||||||||
Residential mortgages
|
252
|
1
|
115
|
-
|
||||||||||||
Consumer loans:
|
||||||||||||||||
Home equity lines & loans
|
458
|
6
|
72
|
1
|
||||||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||
Commercial and industrial
|
196
|
3
|
921
|
-
|
||||||||||||
Commercial mortgages:
|
||||||||||||||||
Commercial mortgages other
|
4,184
|
23
|
863
|
-
|
||||||||||||
Consumer loans:
|
||||||||||||||||
Home equity lines and loans
|
27
|
-
|
58
|
1
|
||||||||||||
Total
|
$
|
16,212
|
$
|
136
|
$
|
12,986
|
$
|
104
|
(1)
|
Cash basis interest income approximates interest income recognized.
|
March 31, 2015
|
Current
|
30-89 Days Past Due
|
90 Days or more Past Due and accruing
|
Loans acquired with deteriorated credit quality
|
Non-Accrual (1)
|
Total
|
||||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
170,397
|
$
|
317
|
$
|
24
|
$
|
-
|
$
|
331
|
$
|
171,069
|
||||||||||||
Agricultural
|
1,158
|
-
|
-
|
-
|
-
|
1,158
|
||||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||
Construction
|
47,913
|
-
|
1,444
|
-
|
148
|
49,505
|
||||||||||||||||||
Commercial mortgages
|
424,367
|
536
|
-
|
1,761
|
5,319
|
431,983
|
||||||||||||||||||
Residential mortgages
|
193,684
|
1,482
|
-
|
256
|
3,705
|
199,127
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Credit cards
|
1,505
|
13
|
8
|
-
|
-
|
1,526
|
||||||||||||||||||
Home equity lines and loans
|
97,626
|
672
|
-
|
-
|
655
|
98,953
|
||||||||||||||||||
Indirect consumer loans
|
172,573
|
1,266
|
-
|
-
|
249
|
174,088
|
||||||||||||||||||
Direct consumer loans
|
18,781
|
43
|
-
|
-
|
12
|
18,836
|
||||||||||||||||||
Total
|
$
|
1,128,004
|
$
|
4,329
|
$
|
1,476
|
$
|
2,017
|
$
|
10,419
|
$
|
1,146,245
|
December 31, 2014
|
Current
|
30-89 Days Past Due
|
90 Days or more Past Due and accruing
|
Loans acquired with deteriorated credit quality
|
Non-Accrual (1)
|
Total
|
||||||||||||||||||
Commercial and agricultural:
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
164,109
|
$
|
756
|
$
|
-
|
$
|
620
|
$
|
312
|
$
|
165,797
|
||||||||||||
Agricultural
|
1,023
|
-
|
-
|
-
|
-
|
1,023
|
||||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||
Construction
|
53,371
|
-
|
1,446
|
-
|
150
|
54,967
|
||||||||||||||||||
Commercial mortgages
|
391,096
|
3,064
|
-
|
1,761
|
2,831
|
398,752
|
||||||||||||||||||
Residential mortgages
|
191,089
|
2,333
|
-
|
250
|
3,615
|
197,287
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Credit cards
|
1,641
|
5
|
8
|
-
|
-
|
1,654
|
||||||||||||||||||
Home equity lines and loans
|
98,340
|
736
|
-
|
-
|
515
|
99,591
|
||||||||||||||||||
Indirect consumer loans
|
183,103
|
1,789
|
-
|
-
|
325
|
185,217
|
||||||||||||||||||
Direct consumer loans
|
19,988
|
48
|
-
|
-
|
30
|
20,066
|
||||||||||||||||||
Total
|
$
|
1,103,760
|
$
|
8,731
|
$
|
1,454
|
$
|
2,631
|
$
|
7,778
|
$
|
1,124,354
|
March 31, 2015
|
Number of Loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
|||||||||
Troubled debt restructurings:
|
||||||||||||
Commercial and agricultural:
|
||||||||||||
Commercial and industrial
|
1
|
$
|
477
|
$
|
477
|
|||||||
Total
|
1
|
$
|
477
|
$
|
477
|
March 31, 2014
|
Number of Loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
|||||||||
Troubled debt restructurings:
|
||||||||||||
Commercial and agricultural:
|
||||||||||||
Commercial and industrial
|
1
|
$
|
503
|
$
|
503
|
|||||||
Commercial mortgages:
|
||||||||||||
Commercial mortgages
|
2
|
367
|
323
|
|||||||||
Total
|
3
|
$
|
870
|
$
|
826
|
March 31, 2015
|
||||||||||||||||||||||||||||
Not Rated
|
Pass
|
Loans acquired with deteriorated credit quality
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||||||
Commercial and
agricultural:
|
||||||||||||||||||||||||||||
Commercial and
industrial
|
$
|
-
|
$
|
164,385
|
$
|
-
|
$
|
4,220
|
$
|
2,285
|
$
|
179
|
$
|
171,069
|
||||||||||||||
Agricultural
|
-
|
1,158
|
-
|
-
|
-
|
-
|
1,158
|
|||||||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||||||
Construction
|
-
|
47,607
|
-
|
1,750
|
148
|
-
|
49,505
|
|||||||||||||||||||||
Commercial mortgages
|
-
|
403,633
|
1,761
|
9,021
|
13,368
|
4,200
|
431,983
|
|||||||||||||||||||||
Residential mortgages
|
195,166
|
-
|
256
|
-
|
3,705
|
-
|
199,127
|
|||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||
Credit cards
|
1,526
|
-
|
-
|
-
|
-
|
-
|
1,526
|
|||||||||||||||||||||
Home equity lines and
loans
|
98,298
|
-
|
-
|
-
|
655
|
-
|
98,953
|
|||||||||||||||||||||
Indirect consumer loans
|
173,835
|
-
|
-
|
-
|
253
|
-
|
174,088
|
|||||||||||||||||||||
Direct consumer loans
|
18,824
|
-
|
-
|
-
|
12
|
-
|
18,836
|
|||||||||||||||||||||
Total
|
$
|
487,649
|
$
|
616,783
|
$
|
2,017
|
$
|
14,991
|
$
|
20,426
|
$
|
4,379
|
$
|
1,146,245
|
December 31, 2014
|
||||||||||||||||||||||||||||
Not Rated
|
Pass
|
Loans acquired with deteriorated credit quality
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||||||
Commercial and
agricultural:
|
||||||||||||||||||||||||||||
Commercial and
industrial
|
$
|
-
|
$
|
158,140
|
$
|
620
|
$
|
3,695
|
$
|
3,306
|
$
|
36
|
$
|
165,797
|
||||||||||||||
Agricultural
|
-
|
1,023
|
-
|
-
|
-
|
-
|
1,023
|
|||||||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||||||
Construction
|
-
|
51,525
|
-
|
3,292
|
150
|
-
|
54,967
|
|||||||||||||||||||||
Commercial mortgages
|
-
|
365,448
|
1,761
|
20,871
|
10,266
|
406
|
398,752
|
|||||||||||||||||||||
Residential mortgages
|
193,422
|
-
|
250
|
-
|
3,615
|
-
|
197,287
|
|||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||
Credit cards
|
1,654
|
-
|
-
|
-
|
-
|
-
|
1,654
|
|||||||||||||||||||||
Home equity lines and
loans
|
99,076
|
-
|
-
|
-
|
515
|
-
|
99,591
|
|||||||||||||||||||||
Indirect consumer loans
|
184,940
|
-
|
-
|
-
|
277
|
-
|
185,217
|
|||||||||||||||||||||
Direct consumer loans
|
20,045
|
-
|
-
|
-
|
21
|
-
|
20,066
|
|||||||||||||||||||||
Total
|
$
|
499,137
|
$
|
576,136
|
$
|
2,631
|
$
|
27,858
|
$
|
18,150
|
$
|
442
|
$
|
1,124,354
|
March 31, 2015
|
||||||||||||||||||||
|
Consumer Loans
|
|||||||||||||||||||
Residential Mortgages
|
Credit Card
|
Home Equity Lines
and Loans
|
Indirect
Consumer Loans
|
Other Direct
Consumer Loans
|
||||||||||||||||
Performing
|
$
|
195,422
|
$
|
1,526
|
$
|
98,298
|
$
|
173,839
|
$
|
18,824
|
||||||||||
Non-Performing
|
3,705
|
-
|
655
|
249
|
12
|
|||||||||||||||
$
|
199,127
|
$
|
1,526
|
$
|
98,953
|
$
|
174,088
|
$
|
18,836
|
December 31, 2014
|
||||||||||||||||||||
|
Consumer Loans
|
|||||||||||||||||||
Residential Mortgages
|
Credit Card
|
Home Equity Lines
and Loans
|
Indirect
Consumer Loans
|
Other Direct
Consumer Loans
|
||||||||||||||||
Performing
|
$
|
193,672
|
$
|
1,654
|
$
|
99,076
|
$
|
184,892
|
$
|
20,036
|
||||||||||
Non-Performing
|
3,615
|
-
|
515
|
325
|
30
|
|||||||||||||||
$
|
197,287
|
$
|
1,654
|
$
|
99,591
|
$
|
185,217
|
$
|
20,066
|
Balance at
December 31, 2014
|
Income Accretion
|
All Other Adjustments
|
Balance at
March 31, 2015
|
|||||||||||||
Contractually required principal and interest
|
$
|
3,621
|
$
|
-
|
$
|
(676
|
)
|
$
|
2,945
|
|||||||
Contractual cash flows not expected to be collected
(nonaccretable discount)
|
(570
|
)
|
-
|
(25
|
)
|
(595
|
)
|
|||||||||
Cash flows expected to be collected
|
3,051
|
-
|
(701
|
)
|
2,350
|
|||||||||||
Interest component of expected cash flows (accretable yield)
|
(420
|
)
|
63
|
(24
|
)
|
(333
|
)
|
|||||||||
Fair value of loans acquired with deteriorating credit quality
|
$
|
2,631
|
$
|
63
|
$
|
(677
|
)
|
$
|
2,017
|
Fair Value Measurement at March 31, 2015 Using
|
||||||||||||||||
Financial Assets:
|
Fair Value
|
Quoted Prices
in Active Markets for Identical Assets
(Level 1)
|
Significant
Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Obligations of U.S. Government and U.S.
Government sponsored enterprises
|
$
|
170,447
|
$
|
31,266
|
$
|
139,181
|
$
|
-
|
||||||||
Mortgage-backed securities, residential
|
59,182
|
-
|
59,182
|
-
|
||||||||||||
Collateralized mortgage obligations
|
231
|
-
|
231
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
31,152
|
-
|
31,152
|
-
|
||||||||||||
Corporate bonds and notes
|
1,528
|
-
|
1,528
|
-
|
||||||||||||
SBA loan pools
|
1,260
|
-
|
1,260
|
-
|
||||||||||||
Trust Preferred securities
|
2,024
|
-
|
2,024
|
-
|
||||||||||||
Corporate stocks
|
483
|
55
|
428
|
-
|
||||||||||||
Total available for sale securities
|
$
|
266,307
|
$
|
31,321
|
$
|
234,986
|
$
|
-
|
||||||||
Trading assets
|
$
|
601
|
$
|
601
|
$
|
-
|
$
|
-
|
Fair Value Measurement at December 31, 2014 Using
|
||||||||||||||||
Financial Assets:
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Obligations of U.S. Government and U.S.
Government sponsored enterprises
|
$
|
181,673
|
$
|
31,115
|
$
|
150,558
|
$
|
-
|
||||||||
Mortgage-backed securities, residential
|
61,660
|
-
|
61,660
|
-
|
||||||||||||
Collateralized mortgage obligations
|
338
|
-
|
338
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
31,451
|
-
|
31,451
|
-
|
||||||||||||
Corporate bonds and notes
|
1,533
|
-
|
1,533
|
-
|
||||||||||||
SBA loan pools
|
1,304
|
-
|
1,304
|
-
|
||||||||||||
Trust Preferred securities
|
2,028
|
-
|
2,028
|
-
|
||||||||||||
Corporate stocks
|
520
|
104
|
416
|
-
|
||||||||||||
Total available for sale securities
|
$
|
280,507
|
$
|
31,219
|
$
|
249,288
|
$
|
-
|
||||||||
Trading assets
|
$
|
549
|
$
|
549
|
$
|
-
|
$
|
-
|
Fair Value Measurement at March 31, 2015 Using
|
||||||||||||||||
Financial Assets:
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Impaired Loans:
|
||||||||||||||||
Commercial mortgages:
|
||||||||||||||||
Commercial mortgages
|
$
|
2,993
|
$
|
-
|
$
|
-
|
$
|
2,993
|
||||||||
Total impaired loans
|
$
|
2,993
|
$
|
-
|
$
|
-
|
$
|
2,993
|
||||||||
Other real estate owned:
|
||||||||||||||||
Commercial mortgages:
|
||||||||||||||||
Commercial mortgages
|
$
|
2,496
|
$
|
-
|
$
|
-
|
$
|
2,496
|
||||||||
Residential mortgages
|
10
|
-
|
-
|
10
|
||||||||||||
Total other real estate owned, net
|
$
|
2,506
|
$
|
-
|
$
|
-
|
$
|
2,506
|
Fair Value Measurement at December 31, 2014 Using
|
||||||||||||||||
Financial Assets:
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Impaired Loans:
|
||||||||||||||||
Commercial mortgages:
|
||||||||||||||||
Commercial mortgages
|
$
|
3,593
|
$
|
-
|
$
|
-
|
$
|
3,593
|
||||||||
Consumer loans:
|
||||||||||||||||
Home equity lines and loans
|
52
|
-
|
-
|
52
|
||||||||||||
Total impaired loans
|
$
|
3,645
|
$
|
-
|
$
|
-
|
$
|
3,645
|
||||||||
Other real estate owned:
|
||||||||||||||||
Commercial mortgages:
|
||||||||||||||||
Commercial mortgages
|
$
|
3,063
|
$
|
-
|
$
|
-
|
$
|
3,063
|
||||||||
Consumer loans:
|
||||||||||||||||
Home equity lines and loans
|
2
|
-
|
-
|
2
|
||||||||||||
Total other real estate owned, net
|
$
|
3,065
|
$
|
-
|
$
|
-
|
$
|
3,065
|
Description
|
Fair Value at
March 31, 2015
|
Technique
|
Unobservable Inputs
|
|||||||
Impaired loans
|
$
|
2,993
|
Third party appraisals
|
1
|
Management discount based on underlying collateral characteristics and market conditions
|
|||||
Other real estate owned
|
$
|
2,506
|
Third party appraisals
|
1
|
Estimated holding period
|
|||||
2
|
Estimated closing costs
|
Description
|
Fair Value at December 31, 2014
|
Technique
|
Unobservable Inputs
|
|||||||
Impaired loans
|
$
|
3,645
|
Third party appraisals
|
1
|
Management discount based on underlying collateral characteristics and market conditions
|
|||||
Other real estate owned
|
$
|
3,065
|
Third party appraisals
|
1
|
Estimated holding period
|
|||||
2
|
Estimated closing costs
|
Fair Value Measurements at March 31, 2015 Using
|
||||||||||||||||||||
Financial assets:
|
Carrying Amount
|
Quoted Prices
in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Estimated Fair Value (1)
|
|||||||||||||||
Cash and due from financial
institutions
|
$
|
29,643
|
$
|
29,643
|
$
|
-
|
$
|
-
|
$
|
29,643
|
||||||||||
Interest-bearing deposits in other
financial institutions
|
55,230
|
55,230
|
-
|
-
|
55,230
|
|||||||||||||||
Trading assets
|
601
|
601
|
-
|
-
|
601
|
|||||||||||||||
Securities available for sale
|
266,307
|
31,321
|
234,986
|
-
|
266,307
|
|||||||||||||||
Securities held to maturity
|
5,693
|
-
|
6,076
|
-
|
6,076
|
|||||||||||||||
FHLBNY and FRBNY stock
|
4,148
|
-
|
-
|
-
|
N/
|
A
|
||||||||||||||
Loans, net
|
1,129,680
|
-
|
-
|
1,155,496
|
1,155,496
|
|||||||||||||||
Loans held for sale
|
628
|
-
|
628
|
-
|
628
|
|||||||||||||||
Accrued interest receivable
|
4,482
|
361
|
1,488
|
2,633
|
4,482
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits:
|
||||||||||||||||||||
Demand, savings, and insured
money market accounts
|
$
|
1,180,179
|
$
|
1,180,179
|
$
|
-
|
$
|
-
|
$
|
1,180,179
|
||||||||||
Time deposits
|
187,951
|
-
|
188,436
|
-
|
188,436
|
|||||||||||||||
Securities sold under agreements
to repurchase
|
31,084
|
-
|
32,285
|
-
|
32,285
|
|||||||||||||||
FHLBNY term advances
|
19,283
|
-
|
20,239
|
-
|
20,239
|
|||||||||||||||
Accrued interest payable
|
225
|
17
|
208
|
-
|
225
|
Fair Value Measurements at December 31, 2014 Using
|
||||||||||||||||||||
Financial assets:
|
Carrying Amount
|
Quoted Prices
in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Estimated Fair Value (1)
|
|||||||||||||||
Cash and due from financial
institutions
|
$
|
28,130
|
$
|
28,130
|
$
|
-
|
$
|
-
|
$
|
28,130
|
||||||||||
Interest-bearing deposits in other
financial institutions
|
1,033
|
1,033
|
-
|
-
|
1,033
|
|||||||||||||||
Trading assets
|
549
|
549
|
-
|
-
|
549
|
|||||||||||||||
Securities available for sale
|
280,507
|
31,219
|
249,288
|
-
|
280,507
|
|||||||||||||||
Securities held to maturity
|
5,831
|
-
|
6,197
|
-
|
6,197
|
|||||||||||||||
FHLBNY and FRBNY stock
|
5,535
|
-
|
-
|
-
|
N/
|
A
|
||||||||||||||
Loans, net
|
1,107,888
|
-
|
-
|
1,135,590
|
1,135,590
|
|||||||||||||||
Loans held for sale
|
665
|
-
|
665
|
-
|
665
|
|||||||||||||||
Accrued interest receivable
|
4,185
|
145
|
1,295
|
2,745
|
4,185
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits:
|
||||||||||||||||||||
Demand, savings, and insured
money market accounts
|
$
|
1,068,171
|
$
|
1,068,171
|
$
|
-
|
$
|
-
|
$
|
1,068,171
|
||||||||||
Time deposits
|
211,843
|
-
|
212,397
|
-
|
212,397
|
|||||||||||||||
Securities sold under agreements
to repurchase
|
29,652
|
-
|
30,853
|
-
|
30,853
|
|||||||||||||||
FHLBNY overnight advances
|
30,830
|
-
|
30,832
|
-
|
30,832
|
|||||||||||||||
FHLBNY term advances
|
19,310
|
-
|
20,235
|
-
|
20,235
|
|||||||||||||||
Accrued interest payable
|
237
|
15
|
222
|
-
|
237
|
2015
|
2014
|
|||||||
Beginning of year
|
$
|
21,824
|
$
|
21,824
|
||||
Acquired goodwill
|
-
|
-
|
||||||
End balance March 31,
|
$
|
21,824
|
$
|
21,824
|
At March 31, 2015
|
At December 31, 2014
|
|||||||||||||||
Balance Acquired
|
Accumulated Amortization
|
Balance Acquired
|
Accumulated Amortization
|
|||||||||||||
Core deposit intangibles
|
$
|
5,975
|
$
|
3,491
|
$
|
5,975
|
$
|
3,279
|
||||||||
Other customer relationship intangibles
|
5,633
|
3,354
|
5,633
|
3,262
|
||||||||||||
Total
|
$
|
11,608
|
$
|
6,845
|
$
|
11,608
|
$
|
6,541
|
Year
|
Estimated Expense
|
|||
2015
|
$
|
833
|
||
2016
|
986
|
|||
2017
|
859
|
|||
2018
|
734
|
|||
2019
|
609
|
|||
2020 and thereafter
|
742
|
|||
Total
|
$
|
4,763
|
Unrealized Gains and Losses on Securities Available for Sale
|
Defined Benefit and Other Benefit Plans
|
Total
|
||||||||||
Balance at January 1, 2015
|
$
|
1,960
|
$
|
(10,745
|
)
|
$
|
(8,785
|
)
|
||||
Other comprehensive income before reclassification
|
805
|
-
|
805
|
|||||||||
Amounts reclassified from accumulated other
comprehensive income
|
(31
|
)
|
224
|
193
|
||||||||
Net current period other comprehensive gain
|
774
|
224
|
998
|
|||||||||
Balance at March 31, 2015
|
$
|
2,734
|
$
|
(10,521
|
)
|
$
|
(7,787
|
)
|
Unrealized Gains and Losses on Securities Available for Sale
|
Defined Benefit and Other Benefit Plans
|
Total
|
||||||||||
Balance at January 1, 2014
|
$
|
6,043
|
$
|
(5,888
|
)
|
$
|
155
|
|||||
Other comprehensive income before
reclassification
|
544
|
-
|
544
|
|||||||||
Amounts reclassified from accumulated other
comprehensive income
|
-
|
88
|
88
|
|||||||||
Net current period other comprehensive gain
|
544
|
88
|
632
|
|||||||||
Balance at March 31, 2014
|
$
|
6,587
|
$
|
(5,800
|
)
|
$
|
787
|
Details about Accumulated Other Comprehensive Income Components
|
Three Months Ended March 31,
|
Affected Line Item
in the Statement Where
Net Income is Presented
|
|||||||
2015
|
2014
|
||||||||
Unrealized gains and losses on securities
available for sale:
|
|||||||||
Reclassification adjustment for other-than-
temporary gains (losses) realized in income
|
$
|
-
|
$
|
-
|
|||||
Realized gains on securities available for sale
|
50
|
-
|
Net gains on securities transactions
|
||||||
Tax effect
|
(19
|
)
|
-
|
Income tax expense
|
|||||
Net of tax
|
31
|
-
|
|||||||
Amortization of defined pension plan
and other benefit plan items:
|
|||||||||
Prior service costs (a)
|
(22
|
)
|
(22
|
)
|
Pension and other employee benefits
|
||||
Actuarial losses (a)
|
383
|
165
|
Pension and other employee benefits
|
||||||
Tax effect
|
(137
|
)
|
(55
|
)
|
Income tax expense
|
||||
Net of tax
|
224
|
88
|
|||||||
Total reclassification for the period, net of tax
|
$
|
224
|
$
|
88
|
|
March 31, 2015
|
December 31, 2014
|
||||||||||||||
|
Fixed Rate
|
Variable Rate
|
Fixed Rate
|
Variable Rate
|
||||||||||||
Commitments to make loans
|
$
|
27,618
|
$
|
10,415
|
$
|
23,756
|
$
|
11,082
|
||||||||
Unused lines of credit
|
$
|
1,120
|
$
|
177,007
|
$
|
812
|
$
|
185,235
|
||||||||
Standby letters of credit
|
$
|
-
|
$
|
17,053
|
$
|
-
|
$
|
16,747
|
NOTE 9 | COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS |
Three Months Ended March 31,
|
||||||||
2015
|
2014
|
|||||||
Qualified Pension Plan
|
||||||||
Service cost, benefits earned during the period
|
$
|
354
|
$
|
271
|
||||
Interest cost on projected benefit obligation
|
457
|
435
|
||||||
Expected return on plan assets
|
(823
|
)
|
(793
|
)
|
||||
Amortization of unrecognized transition obligation
|
-
|
-
|
||||||
Amortization of unrecognized prior service cost
|
2
|
2
|
||||||
Amortization of unrecognized net loss
|
368
|
160
|
||||||
Net periodic pension cost
|
$
|
358
|
$
|
75
|
||||
Supplemental Pension Plan
|
||||||||
Service cost, benefits earned during the period
|
$
|
11
|
$
|
10
|
||||
Interest cost on projected benefit obligation
|
12
|
13
|
||||||
Expected return on plan assets
|
-
|
-
|
||||||
Amortization of unrecognized prior service cost
|
-
|
-
|
||||||
Amortization of unrecognized net loss
|
13
|
5
|
||||||
Net periodic supplemental pension cost
|
$
|
36
|
$
|
28
|
||||
Postretirement Plan, Medical and Life
|
||||||||
Service cost, benefits earned during the period
|
$
|
12
|
$
|
11
|
||||
Interest cost on projected benefit obligation
|
16
|
18
|
||||||
Expected return on plan assets
|
-
|
-
|
||||||
Amortization of unrecognized prior service cost
|
(24
|
)
|
(24
|
)
|
||||
Amortization of unrecognized net loss
|
2
|
-
|
||||||
Net periodic postretirement, medical and life cost
|
$
|
6
|
$
|
5
|
Three Months Ended March 31, 2015
|
||||||||||||||||
Core Banking
|
WMG
|
Holding Company And Other
|
Consolidated Totals
|
|||||||||||||
Net interest income
|
$
|
12,339
|
$
|
-
|
$
|
3
|
$
|
12,342
|
||||||||
Provision for loan losses
|
390
|
-
|
-
|
390
|
||||||||||||
Net interest income after provision for loan losses
|
11,949
|
-
|
3
|
11,952
|
||||||||||||
Other non-interest income
|
2,738
|
2,102
|
346
|
5,186
|
||||||||||||
Other non-interest expenses
|
12,148
|
1,304
|
284
|
13,736
|
||||||||||||
Income before income tax expense
|
2,539
|
798
|
65
|
3,402
|
||||||||||||
Income tax expense
|
815
|
302
|
9
|
1,126
|
||||||||||||
Segment net income
|
$
|
1,724
|
$
|
496
|
$
|
56
|
$
|
2,276
|
||||||||
Segment assets
|
$
|
1,578,386
|
$
|
4,707
|
$
|
1,679
|
$
|
1,584,772
|
Three Months Ended March 31, 2014
|
||||||||||||||||
|
Core Banking
|
WMG
|
Holding Company And Other
|
Consolidated Totals
|
||||||||||||
Net interest income
|
$
|
12,030
|
$
|
-
|
$
|
3
|
$
|
12,033
|
||||||||
Provision for loan losses
|
639
|
-
|
-
|
639
|
||||||||||||
Net interest income after provision for loan losses
|
11,391
|
-
|
3
|
11,394
|
||||||||||||
Other non-interest income
|
2,888
|
1,883
|
193
|
4,964
|
||||||||||||
Other non-interest expenses
|
11,812
|
1,318
|
213
|
13,343
|
||||||||||||
Income before income tax expense
|
2,467
|
565
|
(17
|
)
|
3,015
|
|||||||||||
Income tax expense (benefit)
|
758
|
217
|
(24
|
)
|
951
|
|||||||||||
Segment net income
|
$
|
1,709
|
$
|
348
|
$
|
7
|
$
|
2,064
|
||||||||
Segment assets
|
$
|
1,490,857
|
$
|
4,878
|
$
|
1,796
|
$
|
1,497,531
|
|
Shares
|
Weighted–Average Grant Date Fair Value
|
||||||
Nonvested at January 1, 2015
|
26,428
|
$
|
27.92
|
|||||
Granted
|
-
|
$
|
-
|
|||||
Vested
|
(413
|
)
|
$
|
26.61
|
||||
Forfeited or cancelled
|
-
|
$
|
-
|
|||||
Nonvested at March 31, 2015
|
26,015
|
$
|
27.94
|
As of or for the Three Months Ended
|
||||||||||||||||||||
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
||||||||||||||||
(in thousands, except share and per share data)
|
2015
|
2014
|
2014
|
2014
|
2014
|
|||||||||||||||
RESULTS OF OPERATIONS
|
||||||||||||||||||||
Interest income
|
$
|
13,234
|
$
|
13,922
|
$
|
13,341
|
$
|
12,996
|
$
|
12,954
|
||||||||||
Interest expense
|
892
|
888
|
915
|
921
|
921
|
|||||||||||||||
Net interest income
|
12,342
|
13,034
|
12,426
|
12,075
|
12,033
|
|||||||||||||||
Provision for loan losses
|
390
|
1,650
|
589
|
1,103
|
639
|
|||||||||||||||
Net interest income after provision for loan losses
|
11,952
|
11,384
|
11,837
|
10,972
|
11,394
|
|||||||||||||||
Non-interest income
|
5,186
|
11,400
|
4,986
|
5,406
|
4,964
|
|||||||||||||||
Non-interest expense
|
13,736
|
15,792
|
17,763
|
13,579
|
13,343
|
|||||||||||||||
Income (loss) before income tax expense (benefit)
|
3,402
|
6,992
|
(940
|
)
|
2,799
|
3,015
|
||||||||||||||
Income tax expense (benefit)
|
1,126
|
2,510
|
(621
|
)
|
869
|
951
|
||||||||||||||
Net income (loss)
|
$
|
2,276
|
$
|
4,482
|
$
|
(319
|
)
|
$
|
1,930
|
$
|
2,064
|
|||||||||
Basic and diluted earnings (loss) per share
|
$
|
0.48
|
$
|
0.96
|
$
|
(0.07
|
)
|
$
|
0.41
|
$
|
0.44
|
|||||||||
Average basic and diluted shares outstanding
|
4,706,774
|
4,690,519
|
4,683,797
|
4,680,776
|
4,677,178
|
|||||||||||||||
PERFORMANCE RATIOS
|
||||||||||||||||||||
Return on average assets
|
0.59
|
%
|
1.17
|
%
|
(0.08
|
)%
|
0.51
|
%
|
0.56
|
%
|
||||||||||
Return on average equity
|
6.79
|
%
|
12.54
|
%
|
(0.90
|
)%
|
5.44
|
%
|
5.93
|
%
|
||||||||||
Return on average tangible equity (a)
|
8.45
|
%
|
15.49
|
%
|
(1.11
|
)%
|
6.75
|
%
|
7.41
|
%
|
||||||||||
Efficiency ratio (b)
|
76.26
|
%
|
85.10
|
%
|
75.07
|
%
|
77.21
|
%
|
77.28
|
%
|
||||||||||
Non-interest expense to average assets (c)
|
3.57
|
%
|
4.11
|
%
|
3.55
|
%
|
3.62
|
%
|
3.64
|
%
|
||||||||||
Loans to deposits
|
83.59
|
%
|
87.62
|
%
|
84.99
|
%
|
82.87
|
%
|
79.31
|
%
|
||||||||||
YIELDS / RATES - Fully Taxable Equivalent
|
||||||||||||||||||||
Yield on loans
|
4.28
|
%
|
4.49
|
%
|
4.33
|
%
|
4.40
|
%
|
4.51
|
%
|
||||||||||
Yield on investments
|
1.83
|
%
|
1.98
|
%
|
1.95
|
%
|
1.91
|
%
|
2.09
|
%
|
||||||||||
Yield on interest-earning assets
|
3.74
|
%
|
3.96
|
%
|
3.82
|
%
|
3.77
|
%
|
3.85
|
%
|
||||||||||
Cost of interest-bearing deposits
|
0.20
|
%
|
0.21
|
%
|
0.22
|
%
|
0.22
|
%
|
0.23
|
%
|
||||||||||
Cost of borrowings
|
2.74
|
%
|
2.65
|
%
|
2.85
|
%
|
2.93
|
%
|
2.91
|
%
|
||||||||||
Cost of interest-bearing liabilities
|
0.35
|
%
|
0.36
|
%
|
0.37
|
%
|
0.37
|
%
|
0.38
|
%
|
||||||||||
Interest rate spread
|
3.39
|
%
|
3.60
|
%
|
3.45
|
%
|
3.40
|
%
|
3.47
|
%
|
||||||||||
Net interest margin, fully taxable equivalent
|
3.49
|
%
|
3.71
|
%
|
3.55
|
%
|
3.51
|
%
|
3.58
|
%
|
||||||||||
CAPITAL
|
||||||||||||||||||||
Total equity to total assets at end of period
|
8.60
|
%
|
8.77
|
%
|
9.16
|
%
|
9.35
|
%
|
9.38
|
%
|
||||||||||
Tangible equity to tangible assets at end of period (a)
|
7.04
|
%
|
7.13
|
%
|
7.51
|
%
|
7.68
|
%
|
7.67
|
%
|
||||||||||
Book value per share
|
$
|
28.92
|
$
|
28.44
|
$
|
29.78
|
$
|
30.28
|
$
|
30.03
|
||||||||||
Tangible book value per share
|
23.28
|
22.71
|
23.98
|
24.40
|
24.08
|
|||||||||||||||
Period-end market value per share
|
28.30
|
27.66
|
28.09
|
29.54
|
27.12
|
|||||||||||||||
Dividends declared per share
|
0.26
|
0.26
|
0.26
|
0.26
|
0.26
|
|||||||||||||||
AVERAGE BALANCES
|
||||||||||||||||||||
Loans (d)
|
$
|
1,132,473
|
$
|
1,112,297
|
$
|
1,097,133
|
$
|
1,047,181
|
$
|
1,007,415
|
||||||||||
Earning assets
|
1,450,249
|
1,410,804
|
1,404,165
|
1,400,174
|
1,381,604
|
|||||||||||||||
Total assets
|
1,558,919
|
1,522,834
|
1,509,315
|
1,504,153
|
1,488,577
|
|||||||||||||||
Deposits
|
1,338,913
|
1,307,305
|
1,301,083
|
1,298,159
|
1,282,917
|
|||||||||||||||
Total equity
|
135,974
|
141,845
|
142,944
|
142,318
|
141,061
|
|||||||||||||||
Tangible equity (a)
|
109,219
|
114,786
|
115,553
|
114,603
|
112,996
|
|||||||||||||||
ASSET QUALITY
|
||||||||||||||||||||
Net charge-offs
|
$
|
184
|
$
|
1,116
|
$
|
1,070
|
$
|
625
|
$
|
260
|
||||||||||
Non-performing loans (e)
|
10,419
|
7,778
|
7,209
|
7,712
|
8,567
|
|||||||||||||||
Non-performing assets (f)
|
12,925
|
10,843
|
10,328
|
8,345
|
8,808
|
|||||||||||||||
Allowance for loan losses
|
13,892
|
13,686
|
13,151
|
13,632
|
13,155
|
|||||||||||||||
Annualized net charge-offs to average loans
|
0.07
|
%
|
0.40
|
%
|
0.39
|
%
|
0.24
|
%
|
0.10
|
%
|
||||||||||
Non-performing loans to total loans
|
0.91
|
%
|
0.69
|
%
|
0.65
|
%
|
0.71
|
%
|
0.84
|
%
|
||||||||||
Non-performing assets to total assets
|
0.82
|
%
|
0.71
|
%
|
0.68
|
%
|
0.55
|
%
|
0.59
|
%
|
||||||||||
Allowance for loan losses to total loans
|
1.21
|
%
|
1.22
|
%
|
1.18
|
%
|
1.26
|
%
|
1.28
|
%
|
||||||||||
Allowance for loan losses to non-performing loans
|
133.33
|
%
|
175.96
|
%
|
182.42
|
%
|
176.76
|
%
|
153.55
|
%
|
||||||||||
(a) See the GAAP to Non-GAAP reconciliations on pages 52 to 54.
|
||||||||||||||||||||
(b) Efficiency ratio is non-interest expense less merger and acquisition expenses less amortization of intangible assets less legal settlement divided by the total of fully taxable equivalent net interest income plus non-interest income less net gain on securities transactions less gain from bargain purchase less gain on liquidation of trust preferred securities.
|
||||||||||||||||||||
(c) For the non-interest expense to average assets ratio, non-interest expense does not include legal settlement expense.
|
||||||||||||||||||||
(d) Loans include loans held for sale. Loans do not reflect the allowance for loan losses.
|
||||||||||||||||||||
(e) Non-performing loans include non-accrual loans only.
|
||||||||||||||||||||
(f) Non-performing assets include non-performing loans plus other real estate owned.
|
||||||||||||||||||||
Three Months Ended
March 31,
|
||||||||||||||||
2015
|
2014
|
Change
|
Percentage Change
|
|||||||||||||
Net interest income
|
$
|
12,342
|
$
|
12,033
|
$
|
309
|
2.6
|
%
|
||||||||
Non-interest income
|
5,186
|
4,964
|
222
|
4.5
|
%
|
|||||||||||
Non-interest expense
|
13,736
|
13,343
|
393
|
2.9
|
%
|
|||||||||||
Pre-provision income
|
3,792
|
3,654
|
138
|
3.8
|
%
|
|||||||||||
Provision for loan losses
|
390
|
639
|
(249
|
)
|
(39.0
|
)%
|
||||||||||
Income tax expense
|
1,126
|
951
|
175
|
18.4
|
%
|
|||||||||||
Net income
|
$
|
2,276
|
$
|
2,064
|
$
|
212
|
10.3
|
%
|
||||||||
Basic and diluted earnings per share
|
$
|
0.48
|
$
|
0.44
|
$
|
0.04
|
9.1
|
%
|
||||||||
Selected financial ratios
|
||||||||||||||||
Return on average assets
|
0.59
|
%
|
0.56
|
%
|
||||||||||||
Return on average equity
|
6.79
|
%
|
5.93
|
%
|
||||||||||||
Net interest margin, fully taxable equivalent
|
3.49
|
%
|
3.58
|
%
|
||||||||||||
Efficiency ratio
|
76.26
|
%
|
77.28
|
%
|
||||||||||||
Non-interest expense to average assets
|
3.57
|
%
|
3.64
|
%
|
Three Months Ended
March 31,
|
||||||||||||||||
2015
|
2014
|
Change
|
Percentage Change
|
|||||||||||||
Interest and dividend income
|
$
|
13,234
|
$
|
12,954
|
$
|
280
|
2.2
|
%
|
||||||||
Interest expense
|
892
|
921
|
(29
|
)
|
(3.1
|
)%
|
||||||||||
Net interest income
|
$
|
12,342
|
$
|
12,033
|
$
|
309
|
2.6
|
%
|
AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
(in thousands)
|
Three Months Ended
March 31, 2015
|
Three Months Ended
March 31, 2014
|
||||||||||||||||||||||
Average Balance
|
Interest
|
Yield/
Rate
|
Average Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Commercial loans
|
$
|
635,416
|
$
|
7,298
|
4.66
|
%
|
$
|
527,913
|
$
|
6,516
|
5.01
|
%
|
||||||||||||
Mortgage loans
|
197,520
|
2,014
|
4.14
|
%
|
195,825
|
2,018
|
4.18
|
%
|
||||||||||||||||
Consumer loans
|
299,537
|
2,621
|
3.55
|
%
|
283,677
|
2,665
|
3.81
|
%
|
||||||||||||||||
Taxable securities
|
245,019
|
1,093
|
1.81
|
%
|
301,507
|
1,525
|
2.05
|
%
|
||||||||||||||||
Tax-exempt securities
|
35,692
|
321
|
3.65
|
%
|
42,857
|
386
|
3.65
|
%
|
||||||||||||||||
Interest-bearing deposits
|
37,065
|
23
|
0.25
|
%
|
29,825
|
19
|
0.26
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,450,249
|
13,370
|
3.74
|
%
|
1,381,604
|
13,129
|
3.85
|
%
|
||||||||||||||||
|
||||||||||||||||||||||||
Non-earning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
27,449
|
27,353
|
||||||||||||||||||||||
Premises and equipment, net
|
32,026
|
29,781
|
||||||||||||||||||||||
Other assets
|
58,920
|
51,687
|
||||||||||||||||||||||
Allowance for loan losses
|
(13,846
|
)
|
(12,881
|
)
|
||||||||||||||||||||
AFS valuation allowance
|
4,121
|
11,033
|
||||||||||||||||||||||
Total assets
|
$
|
1,558,919
|
$
|
1,488,577
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
$
|
127,729
|
27
|
0.09
|
%
|
$
|
126,500
|
25
|
0.08
|
%
|
||||||||||||||
Savings and insured money
market deposits
|
638,855
|
273
|
0.17
|
%
|
569,504
|
229
|
0.16
|
%
|
||||||||||||||||
Time deposits
|
199,531
|
186
|
0.38
|
%
|
238,874
|
268
|
0.46
|
%
|
||||||||||||||||
FHLBNY advances, securities sold under
agreements to repurchase, and other debt
|
60,133
|
406
|
2.74
|
%
|
55,611
|
399
|
2.91
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
1,026,248
|
892
|
0.35
|
%
|
990,489
|
921
|
0.38
|
%
|
||||||||||||||||
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
372,798
|
348,039
|
||||||||||||||||||||||
Other liabilities
|
23,899
|
8,988
|
||||||||||||||||||||||
Total liabilities
|
1,422,945
|
1,347,516
|
||||||||||||||||||||||
Shareholders' equity
|
135,974
|
141,061
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
1,558,919
|
$
|
1,488,577
|
||||||||||||||||||||
Fully taxable equivalent net interest
income
|
12,478
|
12,208
|
||||||||||||||||||||||
Net interest rate spread(1)
|
3.39
|
%
|
3.47
|
%
|
||||||||||||||||||||
Net interest margin, fully taxable equivalent (2)
|
3.49
|
%
|
3.58
|
%
|
||||||||||||||||||||
Taxable equivalent adjustment
|
(136
|
)
|
(175
|
)
|
||||||||||||||||||||
Net interest income
|
$
|
12,342
|
$
|
12,033
|
RATE/VOLUME ANALYSIS OF NET INTEREST INCOME
|
|||||||||||||||
Three Months Ended
March 31, 2015 vs. 2014
|
|||||||||||||||
Increase/(Decrease)
|
|||||||||||||||
Total
Change
|
Due to
Volume
|
Due to
Rate
|
|||||||||||||
(in thousands)
|
|||||||||||||||
Interest and dividend income on:
|
|||||||||||||||
Commercial loans
|
|
$
|
782
|
|
$
|
1,261
|
|
$
|
(479
|
)
|
|||||
Mortgage loans
|
(4
|
)
|
16
|
(20
|
)
|
||||||||||
Consumer loans
|
(44
|
)
|
144
|
(188
|
)
|
||||||||||
Taxable investment securities
|
(432
|
)
|
(266
|
)
|
(166
|
)
|
|||||||||
Tax-exempt investment securities
|
(65
|
)
|
(65
|
)
|
-
|
||||||||||
Interest-bearing deposits
|
4
|
5
|
(1
|
)
|
|||||||||||
Total interest and dividend income
|
|
$
|
241
|
|
$
|
1,095
|
|
$
|
(854
|
)
|
|||||
Interest expense on:
|
|||||||||||||||
Interest-bearing demand deposits
|
|
$
|
2
|
|
$
|
-
|
|
$
|
2
|
||||||
Savings and insured money market deposits
|
44
|
29
|
15
|
||||||||||||
Time deposits
|
(82
|
)
|
(40
|
)
|
(42
|
)
|
|||||||||
FHLBNY advances, securities sold under agreements to repurchase and other debt
|
(7
|
)
|
31
|
(24
|
)
|
||||||||||
Total interest expense
|
(29
|
)
|
20
|
(49
|
)
|
||||||||||
Net interest income
|
|
$
|
270
|
|
$
|
1,075
|
|
$
|
(805
|
)
|
Three Months Ended
March 31,
|
||||||||||||||||
2015
|
2014
|
Change
|
Percentage Change
|
|||||||||||||
WMG fee income
|
$
|
2,126
|
$
|
1,883
|
$
|
243
|
12.9
|
%
|
||||||||
Service charges on deposit accounts
|
1,138
|
1,232
|
(94
|
)
|
(7.6
|
)%
|
||||||||||
Net gains on securities transactions
|
50
|
-
|
50
|
N/M
|
|
|||||||||||
Net gains on sales of loans held for sale
|
52
|
41
|
11
|
26.8
|
%
|
|||||||||||
Net gains (losses) on sales of other real estate owned
|
78
|
(30
|
)
|
108
|
N/M
|
|
||||||||||
CFS fee and commission income
|
348
|
194
|
154
|
79.4
|
%
|
|||||||||||
Check card interchange income
|
809
|
814
|
(5
|
)
|
(0.6
|
)%
|
||||||||||
Income from bank owned life insurance
|
18
|
19
|
(1
|
)
|
(5.3
|
)%
|
||||||||||
Other
|
567
|
811
|
(244
|
)
|
(30.1
|
)%
|
||||||||||
Total non-interest income
|
$
|
5,186
|
$
|
4,964
|
$
|
222
|
4.5
|
%
|
Three Months Ended
March 31,
|
||||||||||||||||
2015
|
2014
|
Change
|
Percentage Change
|
|||||||||||||
Compensation expense:
|
||||||||||||||||
Salaries and wages
|
$
|
5,100
|
$
|
5,153
|
$
|
(53
|
)
|
(1.0
|
)%
|
|||||||
Pension and other employee benefits
|
1,729
|
1,359
|
370
|
27.2
|
%
|
|||||||||||
Total compensation expense
|
6,829
|
6,512
|
317
|
4.9
|
%
|
|||||||||||
Non-compensation expense:
|
||||||||||||||||
Net occupancy
|
1,850
|
1,793
|
57
|
3.2
|
%
|
|||||||||||
Furniture and equipment
|
733
|
630
|
103
|
16.3
|
%
|
|||||||||||
Data processing
|
1,561
|
1,481
|
80
|
5.4
|
%
|
|||||||||||
Professional services
|
269
|
222
|
47
|
21.2
|
%
|
|||||||||||
Amortization of intangible assets
|
304
|
344
|
(40
|
)
|
(11.6
|
)%
|
||||||||||
Marketing and advertising
|
235
|
293
|
(58
|
)
|
(19.8
|
)%
|
||||||||||
Other real estate owned expense
|
84
|
87
|
(3
|
)
|
(3.4
|
)%
|
||||||||||
FDIC insurance
|
286
|
269
|
17
|
6.3
|
%
|
|||||||||||
Loan expense
|
140
|
149
|
(9
|
)
|
(6.0
|
)%
|
||||||||||
Merger and acquisition expenses
|
-
|
86
|
(86
|
)
|
(100.0
|
)%
|
||||||||||
Other
|
1,445
|
1,477
|
(32
|
)
|
(2.2
|
)%
|
||||||||||
Total non-compensation expense
|
6,907
|
6,831
|
76
|
1.1
|
%
|
|||||||||||
Total non-interest expense
|
$
|
13,736
|
$
|
13,343
|
$
|
393
|
2.9
|
%
|
Three Months Ended
March 31,
|
||||||||||||||||
2015
|
2014
|
Change
|
Percentage Change
|
|||||||||||||
Income before income tax expense
|
$
|
3,402
|
$
|
3,015
|
$
|
387
|
12.8
|
%
|
||||||||
Income tax expense
|
1,126
|
951
|
175
|
18.4
|
%
|
|||||||||||
Effective tax rate
|
33.1
|
%
|
31.5
|
%
|
Three Months Ended
March 31,
|
||||||||||||||||
2015
|
2014
|
Change
|
Percentage Change
|
|||||||||||||
ASSETS
|
||||||||||||||||
Total cash and cash equivalents
|
$
|
84,873
|
$
|
29,163
|
$
|
55,710
|
191.0
|
%
|
||||||||
Total investment securities
|
276,148
|
291,873
|
(15,725
|
)
|
(5.4
|
)%
|
||||||||||
Loans, net of deferred loan fees
|
1,143,572
|
1,121,574
|
21,998
|
2.0
|
%
|
|||||||||||
Allowance for loan losses
|
(13,892
|
)
|
(13,686
|
)
|
(206
|
)
|
1.5
|
%
|
||||||||
Loans, net
|
1,129,680
|
1,107,888
|
21,792
|
2.0
|
%
|
|||||||||||
Goodwill and other intangible assets, net
|
26,587
|
26,891
|
(304
|
)
|
(1.1
|
)%
|
||||||||||
Other assets
|
67,484
|
68,724
|
(1,240
|
)
|
(1.8
|
)%
|
||||||||||
Total assets
|
$
|
1,584,772
|
$
|
1,524,539
|
$
|
60,233
|
4.0
|
%
|
||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||
Total deposits
|
1,368,130
|
1,280,014
|
88,116
|
6.9
|
%
|
|||||||||||
FHLBNY advances and other debt
|
53,343
|
82,768
|
(29,425
|
)
|
(35.6
|
)%
|
||||||||||
Other liabilities
|
27,006
|
28,129
|
(1,123
|
)
|
(4.0
|
)%
|
||||||||||
Total liabilities
|
1,448,479
|
1,390,911
|
57,568
|
4.1
|
%
|
|||||||||||
Total shareholders’ equity
|
136,293
|
133,628
|
2,665
|
2.0
|
%
|
|||||||||||
Total liabilities and shareholders’ equity
|
$
|
1,584,772
|
$
|
1,524,539
|
$
|
60,233
|
4.0
|
%
|
SECURITIES AVAILABLE FOR SALE
|
||||||||||||||||||||||||
March 31, 2015
|
December 31, 2014
|
|||||||||||||||||||||||
Amortized Cost
|
Estimated Fair Value
|
Percent of Total Estimated Fair Value
|
Amortized Cost
|
Estimated Fair Value
|
Percent of Total Estimated Fair Value
|
|||||||||||||||||||
Obligations of U.S. Government
|
$
|
30,730
|
$
|
31,267
|
11.7
|
%
|
$
|
30,841
|
$
|
31,115
|
11.1
|
%
|
||||||||||||
Obligations of U.S Government sponsored enterprises
|
137,696
|
139,180
|
52.3
|
%
|
149,694
|
150,558
|
53.7
|
%
|
||||||||||||||||
Mortgage-backed securities, residential and collateralized mortgage obligations
|
58,180
|
59,413
|
22.3
|
%
|
61,122
|
61,998
|
22.1
|
%
|
||||||||||||||||
Obligations of states and political
subdivisions
|
30,356
|
31,152
|
11.7
|
%
|
30,677
|
31,451
|
11.2
|
%
|
||||||||||||||||
Other securities
|
4,946
|
5,295
|
2.0
|
%
|
4,989
|
5,385
|
1.9
|
%
|
||||||||||||||||
Totals
|
$
|
261,908
|
$
|
266,307
|
100.0
|
%
|
$
|
277,323
|
$
|
280,507
|
100.0
|
%
|
LOANS
|
||||||||||||||||
March 31, 2015
|
December 31, 2014
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Commercial and agricultural
|
$
|
171,832
|
$
|
166,406
|
$
|
5,426
|
3.3
|
%
|
||||||||
Commercial mortgages
|
480,385
|
452,593
|
27,792
|
6.1
|
%
|
|||||||||||
Residential mortgages
|
198,628
|
196,809
|
1,819
|
0.9
|
%
|
|||||||||||
Indirect consumer loans
|
173,722
|
184,763
|
(11,041
|
)
|
(6.0
|
)%
|
||||||||||
Consumer loans
|
119,005
|
121,003
|
(1,998
|
)
|
(1.7
|
)%
|
||||||||||
Loans, net
|
$
|
1,143,572
|
$
|
1,121,574
|
$
|
21,998
|
2.0
|
%
|
NON-PERFORMING ASSETS
|
||||||||
March 31, 2015
|
December 31, 2014
|
|||||||
Non-accrual loans
|
$
|
9,470
|
$
|
6,798
|
||||
Non-accrual troubled debt restructurings
|
949
|
980
|
||||||
Total non-performing loans
|
$
|
10,419
|
$
|
7,778
|
||||
Other real estate owned
|
2,506
|
3,065
|
||||||
Total non-performing assets
|
$
|
12,925
|
$
|
10,843
|
Ratio of non-performing loans to total loans
|
0.91
|
%
|
0.69
|
%
|
||||
Ratio of non-performing assets to total assets
|
0.82
|
%
|
0.71
|
%
|
||||
Ratio of allowance for loan losses to non-performing loans
|
133.33
|
%
|
175.96
|
%
|
||||
Accruing loans past due 90 days or more (1)
|
$
|
1,476
|
$
|
1,454
|
||||
Accruing troubled debt restructurings (1)
|
$
|
9,105
|
$
|
8,705
|
||||
(1) These loans are not included in non-performing assets above.
|
SUMMARY OF LOAN LOSS EXPERIENCE
|
||||||||
Three Months Ended
|
||||||||
March 31, 2015
|
March 31, 2014
|
|||||||
Balance at beginning of period
|
$
|
13,686
|
$
|
12,776
|
||||
Charge-offs:
|
||||||||
Commercial and agricultural
|
-
|
55
|
||||||
Commercial mortgages
|
-
|
44
|
||||||
Residential mortgages
|
21
|
7
|
||||||
Consumer loans
|
369
|
467
|
||||||
Total charge-offs
|
390
|
573
|
||||||
Recoveries:
|
||||||||
Commercial and agricultural
|
15
|
92
|
||||||
Commercial mortgages
|
67
|
38
|
||||||
Consumer loans
|
124
|
183
|
||||||
Total recoveries
|
206
|
313
|
||||||
Net charge-offs
|
184
|
260
|
||||||
Provision charged to operations
|
390
|
639
|
||||||
Balance at end of period
|
$
|
13,892
|
$
|
13,155
|
||||
Ratio of net charge-offs to average loans outstanding
|
0.07
|
%
|
0.10
|
%
|
||||
Ratio of allowance for loan losses to total loans outstanding
|
1.21
|
%
|
1.28
|
%
|
DEPOSITS
|
||||||||||||||||
March 31, 2015
|
December 31, 2014
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Non-interest-bearing demand deposits
|
$
|
376,773
|
$
|
366,298
|
$
|
10,475
|
2.9
|
%
|
||||||||
Interest-bearing demand deposits
|
127,593
|
110,819
|
16,774
|
15.1
|
%
|
|||||||||||
Insured money market accounts
|
476,464
|
392,871
|
83,593
|
21.3
|
%
|
|||||||||||
Savings deposits
|
199,349
|
198,183
|
1,166
|
0.6
|
%
|
|||||||||||
Time deposits
|
187,951
|
211,843
|
(23,892
|
)
|
(11.3
|
)%
|
||||||||||
Total
|
$
|
1,368,130
|
$
|
1,280,014
|
$
|
88,116
|
6.9
|
%
|
(in thousands)
|
MARCH 31,
|
|||||||
2015
|
2014
|
|||||||
Net cash provided by operation activities
|
$
|
3,443
|
$
|
2,587
|
||||
Net cash used by investing activities
|
(5,379
|
)
|
(19,379
|
)
|
||||
Net cash provided by financing activities
|
57,646
|
22,331
|
||||||
Net increase in cash and cash equivalents
|
$
|
55,710
|
$
|
5,539
|
Actual
|
Required To Be Adequately Capitalized
|
Required To Be Well
Capitalized
|
||||||||||||||||||||||
As of March 31, 2015
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
134,088
|
11.95
|
%
|
$
|
89,831
|
8.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Bank
|
$
|
129,508
|
11.55
|
%
|
$
|
89,669
|
8.00
|
%
|
$
|
112,086
|
10.00
|
%
|
||||||||||||
Tier 1 Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
120,311
|
10.72
|
%
|
$
|
67,373
|
6.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Bank
|
$
|
115,470
|
10.30
|
%
|
$
|
67,252
|
6.00
|
%
|
$
|
89,669
|
8.00
|
%
|
||||||||||||
Common Equity Tier 1 Capital (to Risk
Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
120,311
|
10.72
|
%
|
$
|
50,530
|
4.50
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Bank
|
$
|
115,470
|
10.30
|
%
|
$
|
50,439
|
4.50
|
%
|
$
|
72,856
|
6.50
|
%
|
||||||||||||
Tier 1 Capital (to Average Assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
120,311
|
7.85
|
%
|
$
|
61,339
|
4.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Bank
|
$
|
115,470
|
7.54
|
%
|
$
|
61,279
|
4.00
|
%
|
$
|
76,598
|
5.00
|
%
|
Actual
|
Required To Be Adequately Capitalized
|
Required To Be Well
Capitalized
|
||||||||||||||||||||||
As of December 31, 2014
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
129,211
|
11.84
|
%
|
$
|
87,271
|
8.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Bank
|
$
|
123,685
|
11.35
|
%
|
$
|
87,178
|
8.00
|
%
|
$
|
108,972
|
10.00
|
%
|
||||||||||||
Tier 1 Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
115,483
|
10.59
|
%
|
$
|
43,636
|
4.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Bank
|
$
|
110,014
|
10.10
|
%
|
$
|
43,589
|
4.00
|
%
|
$
|
65,383
|
6.00
|
%
|
||||||||||||
Tier 1 Capital (to Average Assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
115,483
|
7.78
|
%
|
$
|
44,556
|
3.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Bank
|
$
|
110,014
|
7.41
|
%
|
$
|
44,512
|
3.00
|
%
|
$
|
74,187
|
5.00
|
%
|
As of or for the Three Months Ended
|
||||||||||||||||||||
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
||||||||||||||||
(in thousands, except ratio data)
|
2015
|
2014
|
2014
|
2014
|
2014
|
|||||||||||||||
NET INTEREST MARGIN - FULLY TAXABLE EQUIVALENT
|
||||||||||||||||||||
AND EFFICIENCY RATIO
|
||||||||||||||||||||
Net interest income (GAAP)
|
$
|
12,342
|
$
|
13,034
|
$
|
12,426
|
$
|
12,075
|
$
|
12,033
|
||||||||||
Fully taxable equivalent adjustment
|
136
|
148
|
156
|
171
|
175
|
|||||||||||||||
Fully taxable equivalent net interest income (non-GAAP)
|
$
|
12,478
|
$
|
13,182
|
$
|
12,582
|
$
|
12,246
|
$
|
12,208
|
||||||||||
Non-interest income (GAAP)
|
$
|
5,186
|
$
|
11,400
|
$
|
4,986
|
$
|
5,406
|
$
|
4,964
|
||||||||||
Less: net gain on security transactions
|
(50
|
)
|
(6,347
|
)
|
-
|
(522
|
)
|
-
|
||||||||||||
Less: recoveries from other than tempoary impairments
|
-
|
(50
|
)
|
-
|
-
|
(465
|
)
|
|||||||||||||
Adjusted non-interest income (non-GAAP)
|
$
|
5,136
|
$
|
5,003
|
$
|
4,986
|
$
|
4,884
|
$
|
4,499
|
||||||||||
Non-interest expense (GAAP)
|
$
|
13,736
|
$
|
15,792
|
$
|
17,763
|
$
|
13,579
|
$
|
13,343
|
||||||||||
Less: merger and acquisition related expenses
|
-
|
-
|
-
|
(29
|
)
|
(86
|
)
|
|||||||||||||
Less: amortization of intangible assets
|
(304
|
)
|
(317
|
)
|
(324
|
)
|
(324
|
)
|
(345
|
)
|
||||||||||
Less: legal settlements
|
-
|
-
|
(4,250
|
)
|
||||||||||||||||
Adjusted non-interest expense (non-GAAP)
|
$
|
13,432
|
$
|
15,475
|
$
|
13,189
|
$
|
13,226
|
$
|
12,912
|
||||||||||
Average interest-earning assets (GAAP)
|
$
|
1,450,249
|
$
|
1,410,804
|
$
|
1,404,165
|
$
|
1,400,174
|
$
|
1,381,604
|
||||||||||
Net interest margin (non-GAAP)
|
3.49
|
%
|
3.71
|
%
|
3.55
|
%
|
3.51
|
%
|
3.58
|
%
|
||||||||||
Efficiency ratio (non-GAAP)
|
76.26
|
%
|
85.10
|
%
|
75.07
|
%
|
77.21
|
%
|
77.28
|
%
|
As of or for the Three Months Ended
|
||||||||||||||||||||
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
||||||||||||||||
(in thousands, except per share and ratio data)
|
2015
|
2014
|
2014
|
2014
|
2014
|
|||||||||||||||
TANGIBLE EQUITY AND TANGIBLE ASSETS
|
||||||||||||||||||||
(PERIOD END)
|
||||||||||||||||||||
Total shareholders' equity (GAAP)
|
$
|
136,293
|
$
|
133,628
|
$
|
139,561
|
$
|
141,781
|
$
|
140,523
|
||||||||||
Less: intangible assets
|
(26,587
|
)
|
(26,891
|
)
|
(27,208
|
)
|
(27,532
|
)
|
(27,857
|
)
|
||||||||||
Tangible equity (non-GAAP)
|
$
|
109,706
|
$
|
106,737
|
$
|
112,353
|
$
|
114,249
|
$
|
112,666
|
||||||||||
Total assets (GAAP)
|
$
|
1,584,772
|
$
|
1,524,539
|
$
|
1,523,557
|
$
|
1,515,881
|
$
|
1,497,531
|
||||||||||
Less: intangible assets
|
(26,587
|
)
|
(26,891
|
)
|
(27,208
|
)
|
(27,532
|
)
|
(27,857
|
)
|
||||||||||
Tangible assets (non-GAAP)
|
$
|
1,558,185
|
$
|
1,497,648
|
$
|
1,496,349
|
$
|
1,488,349
|
$
|
1,469,674
|
||||||||||
Total equity to total assets at end of period (GAAP)
|
8.60
|
%
|
8.77
|
%
|
9.16
|
%
|
9.35
|
%
|
9.38
|
%
|
||||||||||
Book value per share (GAAP)
|
$
|
28.92
|
$
|
28.44
|
$
|
29.78
|
$
|
30.28
|
$
|
30.03
|
||||||||||
Tangible equity to tangible assets at
|
||||||||||||||||||||
end of period (non-GAAP)
|
7.04
|
%
|
7.13
|
%
|
7.51
|
%
|
7.68
|
%
|
7.67
|
%
|
||||||||||
Tangible book value per share (non-GAAP)
|
$
|
23.28
|
$
|
22.71
|
$
|
23.98
|
$
|
24.40
|
$
|
24.08
|
As of or for the Three Months Ended
|
||||||||||||||||||||
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
||||||||||||||||
(in thousands, except ratio data)
|
2015
|
2014
|
2014
|
2014
|
2014
|
|||||||||||||||
TANGIBLE EQUITY
|
||||||||||||||||||||
(AVERAGE)
|
||||||||||||||||||||
Total shareholders' equity (GAAP)
|
$
|
135,974
|
$
|
141,845
|
$
|
142,944
|
$
|
142,318
|
$
|
141,061
|
||||||||||
Less: intangible assets
|
(26,755
|
)
|
(27,059
|
)
|
(27,391
|
)
|
(27,715
|
)
|
(28,065
|
)
|
||||||||||
Tangible equity (non-GAAP)
|
$
|
109,219
|
$
|
114,786
|
$
|
115,553
|
$
|
114,603
|
$
|
112,996
|
||||||||||
Return on average equity (GAAP)
|
6.79
|
%
|
12.54
|
%
|
(0.90
|
)%
|
5.44
|
%
|
5.93
|
%
|
||||||||||
Return on average tangible equity (non-GAAP)
|
8.45
|
%
|
15.49
|
%
|
(1.11
|
)%
|
6.75
|
%
|
7.41
|
%
|
As of or for the Three Months Ended
|
||||||||||||||||||||
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
||||||||||||||||
(in thousands, except share, per share and ratio data)
|
2015
|
2014
|
2014
|
2014
|
2014
|
|||||||||||||||
CORE NET INCOME
|
||||||||||||||||||||
Reported net income (loss) (GAAP)
|
$
|
2,276
|
$
|
4,482
|
$
|
(319
|
)
|
$
|
1,930
|
$
|
2,064
|
|||||||||
Net gain on security transactions (net of tax)
|
(31
|
)
|
(3,907
|
)
|
-
|
(322
|
)
|
-
|
||||||||||||
Legal settlements (net of tax)
|
-
|
-
|
2,617
|
-
|
-
|
|||||||||||||||
Merger and acquisition related expenses (net of tax)
|
-
|
-
|
-
|
18
|
53
|
|||||||||||||||
Core net income (non-GAAP)
|
$
|
2,245
|
$
|
575
|
$
|
2,298
|
$
|
1,626
|
$
|
2,117
|
||||||||||
Average basic and diluted shares outstanding
|
4,706,774
|
4,690,519
|
4,683,797
|
4,680,776
|
4,677,178
|
|||||||||||||||
Reported basic and diluted earnings (loss) per share (GAAP)
|
$
|
0.48
|
$
|
0.96
|
$
|
(0.07
|
)
|
$
|
0.41
|
$
|
0.44
|
|||||||||
Reported return on average assets (GAAP)
|
0.59
|
%
|
1.17
|
%
|
(0.08
|
)%
|
0.51
|
%
|
0.56
|
%
|
||||||||||
Reported return on average equity (GAAP)
|
6.79
|
%
|
12.54
|
%
|
(0.90
|
)%
|
5.44
|
%
|
5.93
|
%
|
||||||||||
Core basic and diluted earnings per share (non-GAAP)
|
$
|
0.48
|
$
|
0.12
|
$
|
0.49
|
$
|
0.35
|
$
|
0.45
|
||||||||||
Core return on average assets (non-GAAP)
|
0.58
|
%
|
0.15
|
%
|
0.60
|
%
|
0.43
|
%
|
0.58
|
%
|
||||||||||
Core return on average equity (non-GAAP)
|
6.70
|
%
|
1.61
|
%
|
6.38
|
%
|
4.58
|
%
|
6.09
|
%
|
||||||||||
PART II.
|
OTHER INFORMATION
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
For information related to this item, please see Note 8 to the Corporation’s financial statements included herein.
|
|
ITEM 1A.
|
RISK FACTORS
|
|
There have been no material changes in the risk factors set forth in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on March 13, 2015.
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
(c)
|
Issuer Purchases of Equity Securities (1)
|
Period
|
Total number of shares purchased
|
Average price paid per share
|
Total number of shares purchased as part of publicly announced plans or programs
|
Maximum number of shares that may yet be purchased under the plans or programs
|
||||||||||||
1/1/15-1/31/15
|
-
|
$
|
-
|
-
|
121,906
|
|||||||||||
2/1/15-2/28/15
|
-
|
$
|
-
|
-
|
121,906
|
|||||||||||
3/1/15-3/31/15
|
-
|
$
|
-
|
-
|
121,906
|
|||||||||||
Quarter ended 3/31/15
|
-
|
$
|
-
|
-
|
121,906
|
|||||||||||
(1) On December 19, 2012, the Corporation’s Board of Directors approved a stock repurchase plan authorizing the purchase of up to 125,000 shares of the Corporation's outstanding common stock. Purchases may be made from time to time on the open market or in private negotiated transactions and will be at the discretion of management. For the year ending December 31, 2014, no shares had been purchased under this plan. Since inception of the plan, a total of 3,094 shares have been purchased under the plan.
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
|
Not applicable
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
|
Not applicable
|
ITEM 5.
|
OTHER INFORMATION
|
|
Not applicable
|
ITEM 6.
|
EXHIBITS
|
The following exhibits are either filed with this Form 10-Q or are incorporated herein by reference. The Corporation’s Securities Exchange Act File number is 000-13888.
|
|
3.1
|
Certificate of Incorporation of Chemung Financial Corporation dated December 20, 1984 (as incorporated by reference to Exhibit 3.1 to Registrant's Form 10-K for the year ended December 31, 2007 filed with the Commission on March 13, 2008).
|
3.2
|
Certificate of Amendment to the Certificate of Incorporation of Chemung Financial Corporation, dated March 28, 1988 (as incorporated by reference to Exhibit 3.2 to Registrant's Form 10-K for the year ended December 31, 2007 filed with the Commission on March 13, 2008).
|
3.3
|
Certificate of Amendment to the Certificate of Incorporation of Chemung Financial Corporation, dated May 13, 1998 (as incorporated by reference to Exhibit 3.4 to Registrant’s Form 10-K for the year ended December 31, 2005 and filed with the Commission on March 15, 2006).
|
3.4
|
Amended and Restated Bylaws of Chemung Financial Corporation, as amended to December 17, 2014 (as incorporated by reference to Exhibit 3.1 to Registrant’s Form 8-K filed with the Commission on December 19, 2014).
|
31.1
|
Certification of President and Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*
|
31.2
|
Certification of Chief Financial Officer and Treasurer of the Registrant pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*
|
32.1
|
Certification of President and Chief Executive Officer of the Registrant pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. §1350.*
|
32.2
|
Certification of Chief Financial Officer and Treasurer of the Registrant pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. §1350.*
|
101.INS
|
Instance Document*
|
101.SCH
|
XBRL Taxonomy Schema*
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase*
|
101.DEF
|
XBRL Taxonomy Definition Linkbase*
|
101.LAB
|
XBRL Taxonomy Label Linkbase*
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase*
|
*
|
Filed herewith.
|
DATED: May 8, 2015
|
By: /s/ Ronald M. Bentley
|
Ronald M. Bentley
President and Chief Executive Officer
(Principal Executive Officer)
|
DATED: May 8, 2015
|
By: /s/ Karl F. Krebs
|
Karl F. Krebs
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|
3.1
|
Certificate of Incorporation of Chemung Financial Corporation dated December 20, 1984 (as incorporated by reference to Exhibit 3.1 to Registrant's Form 10-K for the year ended December 31, 2007 filed with the Commission on March 13, 2008).
|
3.2
|
Certificate of Amendment to the Certificate of Incorporation of Chemung Financial Corporation, dated March 28, 1988 (as incorporated by reference to Exhibit 3.2 to Registrant's Form 10-K for the year ended December 31, 2007 filed with the Commission on March 13, 2008).
|
3.3
|
Certificate of Amendment to the Certificate of Incorporation of Chemung Financial Corporation, dated May 13, 1998 (as incorporated by reference to Exhibit 3.4 to Registrant’s Form 10-K for the year ended December 31, 2005 and filed with the Commission on March 15, 2006).
|
3.4
|
Amended and Restated Bylaws of Chemung Financial Corporation, as amended to December 17, 2014 (as incorporated by reference to Exhibit 3.1 to Registrant’s Form 8-K filed with the Commission on December 19, 2014).
|
31.1
|
Certification of President and Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*
|
31.2
|
Certification of Chief Financial Officer and Treasurer of the Registrant pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*
|
32.1
|
Certification of President and Chief Executive Officer of the Registrant pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. §1350.*
|
32.2
|
Certification of Chief Financial Officer and Treasurer of the Registrant pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. §1350.*
|
101.INS
|
Instance Document*
|
101.SCH
|
XBRL Taxonomy Schema*
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase*
|
101.DEF
|
XBRL Taxonomy Definition Linkbase*
|
101.LAB
|
XBRL Taxonomy Label Linkbase*
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase*
|
*
|
Filed herewith.
|