Maryland
(State of Other Jurisdiction of Incorporation)
|
001-36695
(Commission File No.)
|
38-3941859
(I.R.S. Employer Identification No.)
|
PART I - FINANCIAL INFORMATION
|
PAGE NO.
|
||
Item 1.
|
Consolidated Financial Statements (Unaudited)
|
||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
8
|
|||
Item 2.
|
32
|
||
and Results of Operations (Unaudited)
|
|||
Item 3.
|
48
|
||
Item 4.
|
49
|
||
50
|
|||
Item 1.
|
Legal Proceedings
|
||
Item 1A.
|
Risk Factors
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
||
Item 3.
|
Defaults upon Senior Securities
|
||
Item 4.
|
Mine Safety Disclosures
|
||
Item 5.
|
Other information
|
||
Item 6.
|
Exhibits
|
||
51
|
|||
June 30,
|
December 31,
|
|||||||
(In thousands, except share and per share data)
|
2015
|
2014
|
||||||
ASSETS:
|
||||||||
Cash and due from banks
|
$
|
7,182
|
$
|
6,822
|
||||
Interest earning deposits
|
10,228
|
4,534
|
||||||
Total cash and cash equivalents
|
17,410
|
11,356
|
||||||
Available-for-sale securities, at fair value
|
102,361
|
88,073
|
||||||
Held-to-maturity securities, at amortized cost (fair value of $44,875 and $42,139, respectively)
|
43,893
|
40,875
|
||||||
Federal Home Loan Bank stock, at cost
|
3,356
|
3,454
|
||||||
Loans
|
403,411
|
387,538
|
||||||
Less: Allowance for loan losses
|
5,900
|
5,349
|
||||||
Loans receivable, net
|
397,511
|
382,189
|
||||||
Premises and equipment, net
|
13,238
|
13,200
|
||||||
Accrued interest receivable
|
1,966
|
1,849
|
||||||
Foreclosed real estate
|
361
|
261
|
||||||
Intangible assets, net
|
222
|
175
|
||||||
Goodwill
|
4,536
|
4,367
|
||||||
Bank owned life insurance
|
10,506
|
10,356
|
||||||
Other assets
|
4,965
|
4,869
|
||||||
Total assets
|
$
|
600,325
|
$
|
561,024
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY:
|
||||||||
Deposits:
|
||||||||
Interest-bearing
|
$
|
397,923
|
$
|
360,906
|
||||
Noninterest-bearing
|
59,652
|
54,662
|
||||||
Total deposits
|
457,575
|
415,568
|
||||||
Short-term borrowings
|
48,000
|
55,100
|
||||||
Long-term borrowings
|
14,000
|
11,000
|
||||||
Junior subordinated debentures
|
5,155
|
5,155
|
||||||
Accrued interest payable
|
60
|
63
|
||||||
Other liabilities
|
5,461
|
4,934
|
||||||
Total liabilities
|
530,251
|
491,820
|
||||||
Shareholders' equity:
|
||||||||
Preferred stock - SBLF, par value $0.01 per share; $1,000 liquidation preference;
|
||||||||
13,000 shares authorized; 13,000 shares issued and outstanding
|
13,000
|
13,000
|
||||||
Common stock, par value $0.01; 25,000,000 authorized shares;
|
||||||||
4,352,203 shares issued and shares outstanding
|
44
|
44
|
||||||
Additional paid in capital
|
28,614
|
28,534
|
||||||
Retained earnings
|
31,996
|
31,085
|
||||||
Accumulated other comprehensive loss
|
(2,319
|
)
|
(2,119
|
)
|
||||
Unearned ESOP
|
(1,664
|
)
|
(1,754
|
)
|
||||
Total Pathfinder Bancorp, Inc. shareholders' equity
|
69,671
|
68,790
|
||||||
Noncontrolling interest
|
403
|
414
|
||||||
Total equity
|
70,074
|
69,204
|
||||||
Total liabilities and shareholders' equity
|
$
|
600,325
|
$
|
561,024
|
||||
The accompanying notes are an integral part of the consolidated financial statements.
|
For the three
|
For the three
|
For the six
|
For the six
|
|||||||||||||
months ended
|
months ended
|
months ended
|
months ended
|
|||||||||||||
(In thousands, except per share data)
|
June 30, 2015
|
June 30, 2014
|
June 30, 2015
|
June 30, 2014
|
||||||||||||
Interest and dividend income:
|
||||||||||||||||
Loans, including fees
|
$
|
4,551
|
$
|
4,104
|
$
|
8,950
|
$
|
8,168
|
||||||||
Debt securities:
|
||||||||||||||||
Taxable
|
516
|
466
|
975
|
886
|
||||||||||||
Tax-exempt
|
190
|
194
|
387
|
389
|
||||||||||||
Dividends
|
40
|
17
|
69
|
50
|
||||||||||||
Interest earning time deposits
|
-
|
2
|
-
|
4
|
||||||||||||
Federal funds sold and interest earning deposits
|
5
|
1
|
7
|
2
|
||||||||||||
Total interest income
|
5,302
|
4,784
|
10,388
|
9,499
|
||||||||||||
Interest expense:
|
||||||||||||||||
Interest on deposits
|
483
|
497
|
928
|
1,026
|
||||||||||||
Interest on short-term borrowings
|
35
|
21
|
72
|
39
|
||||||||||||
Interest on long-term borrowings
|
105
|
148
|
206
|
295
|
||||||||||||
Total interest expense
|
623
|
666
|
1,206
|
1,360
|
||||||||||||
Net interest income
|
4,679
|
4,118
|
9,182
|
8,139
|
||||||||||||
Provision for loan losses
|
401
|
275
|
784
|
520
|
||||||||||||
Net interest income after provision for loan losses
|
4,278
|
3,843
|
8,398
|
7,619
|
||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges on deposit accounts
|
288
|
305
|
554
|
584
|
||||||||||||
Earnings and gain on bank owned life insurance
|
65
|
66
|
149
|
126
|
||||||||||||
Loan servicing fees
|
41
|
67
|
93
|
120
|
||||||||||||
Net gains on sales and redemptions of investment securities
|
49
|
24
|
101
|
26
|
||||||||||||
Net (losses)/gains on sales of loans and foreclosed real estate
|
(4
|
)
|
26
|
(4
|
)
|
30
|
||||||||||
Debit card interchange fees
|
136
|
129
|
259
|
243
|
||||||||||||
Other charges, commissions & fees
|
377
|
261
|
665
|
575
|
||||||||||||
Total noninterest income
|
952
|
878
|
1,817
|
1,704
|
||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
2,356
|
2,187
|
4,738
|
4,384
|
||||||||||||
Building occupancy
|
441
|
364
|
944
|
771
|
||||||||||||
Data processing
|
354
|
399
|
742
|
764
|
||||||||||||
Professional and other services
|
229
|
173
|
449
|
348
|
||||||||||||
Advertising
|
114
|
99
|
236
|
231
|
||||||||||||
FDIC assessments
|
102
|
100
|
197
|
195
|
||||||||||||
Audits and exams
|
59
|
61
|
120
|
125
|
||||||||||||
Other expenses
|
577
|
380
|
1,030
|
852
|
||||||||||||
Total noninterest expenses
|
4,232
|
3,763
|
8,456
|
7,670
|
||||||||||||
Income before income taxes
|
998
|
958
|
1,759
|
1,653
|
||||||||||||
Provision for income taxes
|
290
|
275
|
514
|
451
|
||||||||||||
Net income attributable to noncontrolling interest and Pathfinder Bancorp, Inc.
|
708
|
683
|
1,245
|
1,202
|
||||||||||||
Net income attributable to noncontrolling interest
|
14
|
7
|
22
|
37
|
||||||||||||
Net income attributable to Pathfinder Bancorp Inc.
|
694
|
676
|
1,223
|
1,165
|
||||||||||||
Preferred stock dividends
|
33
|
30
|
65
|
30
|
||||||||||||
Net income available to common shareholders
|
$
|
661
|
$
|
646
|
$
|
1,158
|
$
|
1,135
|
||||||||
Earnings per common share - basic
|
$
|
0.16
|
$
|
0.15
|
$
|
0.28
|
$
|
0.27
|
||||||||
Earnings per common share - diluted
|
$
|
0.16
|
$
|
0.15
|
$
|
0.28
|
$
|
0.27
|
||||||||
Dividends per common share
|
$
|
0.03
|
$
|
0.03
|
$
|
0.06
|
$
|
0.06
|
Pathfinder Bancorp, Inc.
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
For the three months ended
|
For the six months ended
|
|||||||||||||||
(In thousands)
|
June 30, 2015
|
June 30, 2014
|
June 30, 2015
|
June 30, 2014
|
||||||||||||
Net Income
|
$
|
708
|
$
|
683
|
$
|
1,245
|
$
|
1,202
|
||||||||
Other Comprehensive Income (Loss)
|
||||||||||||||||
Retirement Plans:
|
||||||||||||||||
Net unrealized gain on retirement plans
|
45
|
11
|
90
|
22
|
||||||||||||
Unrealized holding gains on financial derivative:
|
||||||||||||||||
Change in unrealized holding losses on financial derivative
|
(5
|
)
|
(4
|
)
|
(6
|
)
|
(7
|
)
|
||||||||
Reclassification adjustment for interest expense included in net income
|
15
|
15
|
31
|
30
|
||||||||||||
Net unrealized gain on financial derivative
|
10
|
11
|
25
|
23
|
||||||||||||
Unrealized holding (losses) gains on available for sale securities
|
||||||||||||||||
Unrealized holding (losses) gains arising during the period
|
(878
|
)
|
310
|
(413
|
)
|
631
|
||||||||||
Reclassification adjustment for net (losses) gains included in net income
|
(49
|
)
|
(24
|
)
|
(101
|
)
|
(26
|
)
|
||||||||
Net unrealized (loss) gain on available for sale securities
|
(927
|
)
|
286
|
(514
|
)
|
605
|
||||||||||
Accretion of net unrealized loss on securities transferred to held-to-maturity
(1)
|
32
|
29
|
65
|
59
|
||||||||||||
Other comprehensive (loss) income, before tax
|
(840
|
)
|
337
|
(334
|
)
|
709
|
||||||||||
Tax effect
|
336
|
(135
|
)
|
134
|
(284
|
)
|
||||||||||
Other comprehensive (loss) income, net of tax
|
(504
|
)
|
202
|
(200
|
)
|
425
|
||||||||||
Comprehensive income
|
$
|
204
|
$
|
885
|
$
|
1,045
|
$
|
1,627
|
||||||||
Comprehensive income attributable to noncontrolling interest
|
$
|
14
|
$
|
7
|
$
|
22
|
$
|
37
|
||||||||
Comprehensive income attributable to Pathfinder Bancorp, Inc.
|
$
|
190
|
$
|
878
|
$
|
1,023
|
$
|
1,590
|
||||||||
Tax Effect Allocated to Each Component of Other Comprehensive Loss
|
||||||||||||||||
Retirement plan net losses recognized in plan expenses
|
$
|
(18
|
)
|
$
|
(5
|
)
|
$
|
(36
|
)
|
$
|
(9
|
)
|
||||
Change in unrealized holding losses on financial derivative
|
2
|
2
|
2
|
3
|
||||||||||||
Reclassification adjustment for interest expense included in net income
|
(6
|
)
|
(6
|
)
|
(12
|
)
|
(12
|
)
|
||||||||
Unrealized holding gains (losses) arising during the period
|
351
|
(124
|
)
|
165
|
(253
|
)
|
||||||||||
Reclassification adjustment for net gains included in net income
|
20
|
10
|
41
|
10
|
||||||||||||
Accretion of net unrealized loss on securities transferred to held-to-maturity
(1)
|
(13
|
)
|
(12
|
)
|
(26
|
)
|
(23
|
)
|
||||||||
Income tax effect related to other comprehensive income
|
$
|
336
|
$
|
(135
|
)
|
$
|
134
|
(284
|
)
|
|||||||
(1) The accretion of the unrealized holding losses in accumulated other comprehensive loss at the date of transfer at September 30, 2013 partially offsets the amortization of the difference between the par value and the fair value of the investment securities at the date of transfer, and is an adjustment of yield.
|
||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Pathfinder Bancorp, Inc.
|
||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2015 and June 30, 2014
|
||||||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||||||
Additional
|
Other Com-
|
Non-
|
||||||||||||||||||||||||||||||||||
Preferred
|
Common
|
Paid in
|
Retained
|
prehensive
|
Unearned
|
Treasury
|
controlling
|
|||||||||||||||||||||||||||||
(In thousands, except share and per share data)
|
Stock
|
Stock
|
Capital
|
Earnings
|
Loss
|
ESOP
|
Stock
|
Interest
|
Total
|
|||||||||||||||||||||||||||
Balance, January 1, 2015
|
$
|
13,000
|
$
|
44
|
$
|
28,534
|
$
|
31,085
|
$
|
(2,119
|
)
|
$
|
(1,754
|
)
|
$
|
-
|
$
|
414
|
$
|
69,204
|
||||||||||||||||
Net income
|
-
|
-
|
-
|
1,223
|
-
|
-
|
-
|
22
|
1,245
|
|||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
-
|
-
|
-
|
-
|
(200
|
)
|
-
|
-
|
-
|
(200
|
)
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Preferred stock dividends - SBLF
|
-
|
-
|
-
|
(65
|
)
|
-
|
-
|
-
|
-
|
(65
|
)
|
|||||||||||||||||||||||||
ESOP shares earned (12,222 shares)
|
-
|
-
|
38
|
-
|
-
|
90
|
-
|
-
|
128
|
|||||||||||||||||||||||||||
Stock based compensation
|
-
|
-
|
42
|
-
|
-
|
-
|
-
|
-
|
42
|
|||||||||||||||||||||||||||
Common stock dividends declared ($0.06 per share)
|
-
|
-
|
-
|
(247
|
)
|
-
|
-
|
-
|
-
|
(247
|
)
|
|||||||||||||||||||||||||
Distributions from affiliates
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(33
|
)
|
(33
|
)
|
|||||||||||||||||||||||||
Balance, June 30, 2015
|
$
|
13,000
|
$
|
44
|
$
|
28,614
|
$
|
31,996
|
$
|
(2,319
|
)
|
$
|
(1,664
|
)
|
$
|
-
|
$
|
403
|
$
|
70,074
|
||||||||||||||||
Balance, January 1, 2014
|
$
|
13,000
|
$
|
30
|
$
|
8,226
|
$
|
28,788
|
$
|
(1,745
|
)
|
$
|
(826
|
)
|
$
|
(4,761
|
)
|
$
|
358
|
$
|
43,070
|
|||||||||||||||
Net income
|
-
|
-
|
-
|
1,165
|
-
|
-
|
-
|
37
|
1,202
|
|||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
-
|
-
|
-
|
-
|
425
|
-
|
-
|
-
|
425
|
|||||||||||||||||||||||||||
Preferred stock dividends - SBLF
|
-
|
-
|
-
|
(30
|
)
|
-
|
-
|
-
|
-
|
(30
|
)
|
|||||||||||||||||||||||||
ESOP shares earned (6,250 shares)
|
-
|
-
|
36
|
-
|
-
|
55
|
-
|
-
|
91
|
|||||||||||||||||||||||||||
Stock based compensation
|
-
|
-
|
42
|
-
|
-
|
-
|
-
|
-
|
42
|
|||||||||||||||||||||||||||
Common stock dividends declared ($0.06 per share)
|
-
|
-
|
-
|
(152
|
)
|
-
|
-
|
-
|
-
|
(152
|
)
|
|||||||||||||||||||||||||
Balance, June 30, 2014
|
$
|
13,000
|
$
|
30
|
$
|
8,304
|
$
|
29,771
|
$
|
(1,320
|
)
|
$
|
(771
|
)
|
$
|
(4,761
|
)
|
$
|
395
|
$
|
44,648
|
|||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Pathfinder Bancorp, Inc.
|
||||||||
(Unaudited)
|
||||||||
For the six months ended June 30,
|
||||||||
(In thousands)
|
2015
|
2014
|
||||||
OPERATING ACTIVITIES
|
||||||||
Net income attributable to Pathfinder Bancorp, Inc.
|
$
|
1,223
|
$
|
1,165
|
||||
Adjustments to reconcile net income to net cash flows from operating activities:
|
||||||||
Provision for loan losses
|
784
|
520
|
||||||
Realized losses (gains) on sales, redemptions and calls of:
|
||||||||
Real estate acquired through foreclosure
|
4
|
(30
|
)
|
|||||
Loans
|
(4
|
)
|
-
|
|||||
Available-for-sale investment securities
|
(101
|
)
|
(26
|
)
|
||||
Depreciation
|
465
|
399
|
||||||
Amortization of mortgage servicing rights
|
7
|
7
|
||||||
Amortization of deferred loan costs
|
82
|
59
|
||||||
Earnings on bank owned life insurance
|
(149
|
)
|
(126
|
)
|
||||
Net amortization of premiums and discounts on investment securities
|
436
|
339
|
||||||
Amortization of intangible assets
|
9
|
6
|
||||||
Stock based compensation and ESOP expense
|
170
|
133
|
||||||
Net change in accrued interest receivable
|
(117
|
)
|
(60
|
)
|
||||
Net change in other assets and liabilities
|
687
|
(840
|
)
|
|||||
Net cash flows from operating activities
|
3,496
|
1,546
|
||||||
INVESTING ACTIVITIES
|
||||||||
Purchase of investment securities available-for-sale
|
(47,485
|
)
|
(25,688
|
)
|
||||
Purchase of investment securities held-to-maturity
|
(5,034
|
)
|
(8,767
|
)
|
||||
Net proceeds from (purchases of) Federal Home Loan Bank stock
|
98
|
(44
|
)
|
|||||
Proceeds from maturities and principal reductions of
|
||||||||
investment securities available-for-sale
|
15,933
|
7,378
|
||||||
Proceeds from maturities and principal reductions of
|
||||||||
investment securities held-to-maturity
|
2,015
|
399
|
||||||
Proceeds from sales, redemptions and calls of:
|
||||||||
Available-for-sale investment securities
|
16,481
|
506
|
||||||
Real estate acquired through foreclosure
|
171
|
273
|
||||||
Acquisition of insurance agency
|
(225
|
)
|
-
|
|||||
Purchase of bank owned life insurance
|
-
|
(1,780
|
)
|
|||||
Net change in loans
|
(16,463
|
)
|
(17,989
|
)
|
||||
Purchase of premises and equipment
|
(503
|
)
|
(1,051
|
)
|
||||
Net cash flows from investing activities
|
(35,012
|
)
|
(46,763
|
)
|
||||
FINANCING ACTIVITIES
|
||||||||
Net change in demand deposits, NOW accounts, savings accounts,
|
||||||||
money management deposit accounts, MMDA accounts and escrow deposits
|
45,933
|
29,707
|
||||||
Net change in time deposits and brokered deposits
|
(3,926
|
)
|
8,316
|
|||||
Net change in short-term borrowings
|
(7,100
|
)
|
1,000
|
|||||
Proceeds from (repayments of) long-term borrowings
|
3,000
|
(55
|
)
|
|||||
Cash dividends paid to preferred shareholder - SBLF
|
(65
|
)
|
(30
|
)
|
||||
Cash dividends paid to common shareholders
|
(261
|
)
|
(157
|
)
|
||||
Change in noncontrolling interest, net
|
(11
|
)
|
37
|
|||||
Net cash flows from financing activities
|
37,570
|
38,818
|
||||||
Change in cash and cash equivalents
|
6,054
|
(6,399
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
11,356
|
16,575
|
||||||
Cash and cash equivalents at end of period
|
$
|
17,410
|
$
|
10,176
|
||||
CASH PAID DURING THE PERIOD FOR:
|
||||||||
Interest
|
$
|
1,209
|
$
|
1,379
|
||||
Income taxes
|
462
|
331
|
||||||
NON-CASH INVESTING ACTIVITY
|
||||||||
Real estate acquired in exchange for loans
|
275
|
392
|
||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
(In thousands, except per share data)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Basic Earnings Per Common Share
|
||||||||||||||||
Net income available to common shareholders
|
$
|
661
|
$
|
646
|
$
|
1,158
|
$
|
1,135
|
||||||||
Weighted average common shares outstanding
|
4,120
|
4,172
|
4,117
|
4,169
|
||||||||||||
Basic earnings per common share
|
$
|
0.16
|
$
|
0.15
|
$
|
0.28
|
$
|
0.27
|
||||||||
Diluted Earnings Per Common Share
|
||||||||||||||||
Net income available to common shareholders
|
$
|
661
|
$
|
646
|
$
|
1,158
|
$
|
1,135
|
||||||||
Weighted average common shares outstanding
|
4,120
|
4,172
|
4,117
|
4,169
|
||||||||||||
Effect of assumed exercise of stock options
|
67
|
43
|
62
|
40
|
||||||||||||
Diluted weighted average common shares outstanding
|
4,187
|
4,215
|
4,179
|
4,209
|
||||||||||||
Diluted earnings per common share
|
$
|
0.16
|
$
|
0.15
|
$
|
0.28
|
$
|
0.27
|
|
June 30, 2015
|
|||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(In thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available-for-Sale Portfolio
|
||||||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$
|
28,889
|
$
|
12
|
$
|
(161
|
)
|
$
|
28,740
|
|||||||
State and political subdivisions
|
8,137
|
91
|
(10
|
)
|
8,218
|
|||||||||||
Corporate
|
18,342
|
85
|
(147
|
)
|
18,280
|
|||||||||||
Residential mortgage-backed - US agency
|
29,336
|
236
|
(271
|
)
|
29,301
|
|||||||||||
Collateralized mortgage obligations - US agency
|
15,856
|
152
|
(156
|
)
|
15,852
|
|||||||||||
Total
|
100,560
|
576
|
(745
|
)
|
100,391
|
|||||||||||
Equity investment securities:
|
||||||||||||||||
Mutual funds:
|
||||||||||||||||
Ultra short mortgage fund
|
643
|
2
|
-
|
645
|
||||||||||||
Large cap equity fund
|
456
|
168
|
-
|
624
|
||||||||||||
Other mutual funds
|
183
|
226
|
-
|
409
|
||||||||||||
Common stock - financial services industry
|
270
|
22
|
-
|
292
|
||||||||||||
Total
|
1,552
|
418
|
-
|
1,970
|
||||||||||||
Total available-for-sale
|
$
|
102,112
|
$
|
994
|
$
|
(745
|
)
|
$
|
102,361
|
|||||||
Held-to-Maturity Portfolio
|
||||||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$
|
7,846
|
$
|
81
|
$
|
(53
|
)
|
$
|
7,874
|
|||||||
State and political subdivisions
|
21,260
|
690
|
-
|
21,950
|
||||||||||||
Corporate
|
3,420
|
61
|
-
|
3,481
|
||||||||||||
Residential mortgage-backed - US agency
|
8,460
|
94
|
(4
|
)
|
8,550
|
|||||||||||
Collateralized mortgage obligations - US agency
|
2,907
|
113
|
-
|
3,020
|
||||||||||||
Total held-to-maturity
|
$
|
43,893
|
$
|
1,039
|
$
|
(57
|
)
|
$
|
44,875
|
|
December 31, 2014
|
|||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(In thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available-for-Sale Portfolio
|
||||||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$
|
17,896
|
$
|
3
|
$
|
(149
|
)
|
$
|
17,750
|
|||||||
State and political subdivisions
|
8,346
|
110
|
(13
|
)
|
8,443
|
|||||||||||
Corporate
|
13,763
|
116
|
(19
|
)
|
13,860
|
|||||||||||
Residential mortgage-backed - US agency
|
30,321
|
403
|
(149
|
)
|
30,575
|
|||||||||||
Collateralized mortgage obligations - US agency
|
15,432
|
168
|
(124
|
)
|
15,476
|
|||||||||||
Total
|
85,758
|
800
|
(454
|
)
|
86,104
|
|||||||||||
Equity investment securities:
|
||||||||||||||||
Mutual funds:
|
||||||||||||||||
Ultra short mortgage fund
|
643
|
5
|
-
|
648
|
||||||||||||
Large cap equity fund
|
456
|
193
|
-
|
649
|
||||||||||||
Other mutual funds
|
183
|
196
|
-
|
379
|
||||||||||||
Common stock - financial services industry
|
270
|
23
|
-
|
293
|
||||||||||||
Total
|
1,552
|
417
|
-
|
1,969
|
||||||||||||
Total available-for-sale
|
$
|
87,310
|
$
|
1,217
|
$
|
(454
|
)
|
$
|
88,073
|
|||||||
Held-to-Maturity Portfolio
|
||||||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$
|
4,834
|
$
|
58
|
$
|
-
|
$
|
4,892
|
||||||||
State and political subdivisions
|
22,610
|
824
|
(9
|
)
|
23,425
|
|||||||||||
Corporate
|
2,487
|
33
|
(17
|
)
|
2,503
|
|||||||||||
Residential mortgage-backed - US agency
|
8,043
|
242
|
-
|
8,285
|
||||||||||||
Collateralized mortgage obligations - US agency
|
2,901
|
133
|
-
|
3,034
|
||||||||||||
Total held-to-maturity
|
$
|
40,875
|
$
|
1,290
|
$
|
(26
|
)
|
$
|
42,139
|
Available-for-Sale
|
Held-to-Maturity
|
|||||||||||||||
Amortized
|
Estimated
|
Amortized
|
Estimated
|
|||||||||||||
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
||||||||||||
(In thousands)
|
||||||||||||||||
Due in one year or less
|
$
|
6,881
|
$
|
6,925
|
$
|
196
|
$
|
196
|
||||||||
Due after one year through five years
|
39,480
|
39,450
|
8,382
|
8,428
|
||||||||||||
Due after five years through ten years
|
8,027
|
7,901
|
16,516
|
16,888
|
||||||||||||
Due after ten years
|
980
|
962
|
7,432
|
7,793
|
||||||||||||
Sub-total
|
55,368
|
55,238
|
32,526
|
33,305
|
||||||||||||
Residential mortgage-backed - US agency
|
29,336
|
29,301
|
8,460
|
8,550
|
||||||||||||
Collateralized mortgage obligations - US agency
|
15,856
|
15,852
|
2,907
|
3,020
|
||||||||||||
Totals
|
$
|
100,560
|
$
|
100,391
|
$
|
43,893
|
$
|
44,875
|
June 30, 2015
|
||||||||||||||||||||||||||||||||||||
Less than twelve months
|
Twelve months or more
|
Total
|
||||||||||||||||||||||||||||||||||
Number of
|
Number of
|
Number of
|
||||||||||||||||||||||||||||||||||
Individual
|
Unrealized
|
Fair
|
Individual
|
Unrealized
|
Fair
|
Individual
|
Unrealized
|
Fair
|
||||||||||||||||||||||||||||
|
Securities
|
Losses
|
Value
|
Securities
|
Losses
|
Value
|
Securities
|
Losses
|
Value
|
|||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Available-for-Sale
|
||||||||||||||||||||||||||||||||||||
US Treasury, agencies and GSE's
|
11
|
$
|
(106
|
)
|
$
|
14,844
|
5
|
$
|
(55
|
)
|
$
|
5,941
|
16
|
(161
|
)
|
$
|
20,785
|
|||||||||||||||||||
State and political subdivisions
|
15
|
(9
|
)
|
2,200
|
2
|
(1
|
)
|
504
|
17
|
(10
|
)
|
2,704
|
||||||||||||||||||||||||
Corporate
|
13
|
(147
|
)
|
11,513
|
-
|
-
|
-
|
13
|
(147
|
)
|
11,513
|
|||||||||||||||||||||||||
Residential mortgage-backed - US agency
|
7
|
(115
|
)
|
9,705
|
5
|
(156
|
)
|
5,169
|
12
|
(271
|
)
|
14,874
|
||||||||||||||||||||||||
Collateralized mortgage obligations - US agency
|
4
|
(83
|
)
|
5,925
|
3
|
(73
|
)
|
1,971
|
7
|
(156
|
)
|
7,896
|
||||||||||||||||||||||||
Totals
|
50
|
$
|
(460
|
)
|
$
|
44,187
|
15
|
$
|
(285
|
)
|
$
|
13,585
|
65
|
$
|
(745
|
)
|
$
|
57,772
|
||||||||||||||||||
Held-to-Maturity
|
||||||||||||||||||||||||||||||||||||
US Treasury, agencies and GSE's
|
2
|
$
|
(53
|
)
|
$
|
2,946
|
-
|
$
|
-
|
$
|
-
|
2
|
$
|
(53
|
)
|
$
|
2,946
|
|||||||||||||||||||
State and political subdivisions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Corporate
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Residential mortgage-backed - US agency
|
2
|
(4
|
)
|
1,705
|
-
|
-
|
-
|
2
|
(4
|
)
|
1,705
|
|||||||||||||||||||||||||
Collateralized mortgage obligations - US agency
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Totals
|
4
|
$
|
(57
|
)
|
$
|
4,651
|
-
|
$
|
-
|
$
|
-
|
4
|
$
|
(57
|
)
|
$
|
4,651
|
|||||||||||||||||||
December 31, 2014
|
||||||||||||||||||||||||||||||||||||
Less than twelve months
|
Twelve months or more
|
Total
|
||||||||||||||||||||||||||||||||||
Number of
|
Number of
|
Number of
|
||||||||||||||||||||||||||||||||||
Individual
|
Unrealized
|
Fair
|
Individual
|
Unrealized
|
Fair
|
Individual
|
Unrealized
|
Fair
|
||||||||||||||||||||||||||||
|
Securities
|
Losses
|
Value
|
Securities
|
Losses
|
Value
|
Securities
|
Losses
|
Value
|
|||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Available-for-Sale
|
||||||||||||||||||||||||||||||||||||
US Treasury, agencies and GSE's
|
7
|
$
|
(18
|
)
|
$
|
7,991
|
7
|
$
|
(131
|
)
|
$
|
7,856
|
14
|
$
|
(149
|
)
|
$
|
15,847
|
||||||||||||||||||
State and political subdivisions
|
19
|
(13
|
)
|
3,047
|
1
|
-
|
90
|
20
|
(13
|
)
|
3,137
|
|||||||||||||||||||||||||
Corporate
|
7
|
(19
|
)
|
4,520
|
-
|
-
|
-
|
7
|
(19
|
)
|
4,520
|
|||||||||||||||||||||||||
Residential mortgage-backed - US agency
|
2
|
(8
|
)
|
1,424
|
6
|
(141
|
)
|
6,256
|
8
|
(149
|
)
|
7,680
|
||||||||||||||||||||||||
Collateralized mortgage obligations - US agency
|
3
|
(22
|
)
|
2,692
|
5
|
(102
|
)
|
3,963
|
8
|
(124
|
)
|
6,655
|
||||||||||||||||||||||||
Totals
|
38
|
$
|
(80
|
)
|
$
|
19,674
|
19
|
$
|
(374
|
)
|
$
|
18,165
|
57
|
$
|
(454
|
)
|
$
|
37,839
|
||||||||||||||||||
Held-to-Maturity
|
||||||||||||||||||||||||||||||||||||
US Treasury, agencies and GSE's
|
-
|
$
|
-
|
$
|
-
|
-
|
$
|
-
|
$
|
-
|
-
|
$
|
-
|
$
|
-
|
|||||||||||||||||||||
State and political subdivisions
|
1
|
(9
|
)
|
1,463
|
-
|
-
|
-
|
1
|
(9
|
)
|
1,463
|
|||||||||||||||||||||||||
Corporate
|
2
|
(17
|
)
|
1,108
|
-
|
-
|
-
|
2
|
(17
|
)
|
1,108
|
|||||||||||||||||||||||||
Residential mortgage-backed - US agency
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Collateralized mortgage obligations - US agency
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Totals
|
3
|
$
|
(26
|
)
|
$
|
2,571
|
-
|
$
|
-
|
$
|
-
|
3
|
$
|
(26
|
)
|
$
|
2,571
|
For the three months
|
For the six months
|
|||||||||||||||
ended June 30,
|
ended June 30,
|
|||||||||||||||
(In thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Realized gains
|
$
|
53
|
$
|
24
|
$
|
110
|
$
|
26
|
||||||||
Realized losses
|
(4
|
)
|
-
|
(9
|
)
|
-
|
||||||||||
|
$
|
49
|
$
|
24
|
$
|
101
|
$
|
26
|
Pension Benefits
|
Postretirement Benefits
|
Pension Benefits
|
Postretirement Benefits
|
|||||||||||||||||||||||||||||
For the three months ended June 30,
|
For the six months ended June 30,
|
|||||||||||||||||||||||||||||||
(In thousands)
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||||||||||
Service cost
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||
Interest cost
|
117
|
102
|
5
|
4
|
234
|
203
|
9
|
9
|
||||||||||||||||||||||||
Expected return on plan assets
|
(243
|
)
|
(235
|
)
|
-
|
-
|
(487
|
)
|
(471
|
)
|
-
|
-
|
||||||||||||||||||||
Amortization of net losses
|
45
|
7
|
-
|
4
|
90
|
15
|
-
|
7
|
||||||||||||||||||||||||
Net periodic benefit plan (benefit) cost
|
$
|
(81
|
)
|
$
|
(126
|
)
|
$
|
5
|
$
|
8
|
$
|
(163
|
)
|
$
|
(253
|
)
|
$
|
9
|
$
|
16
|
June 30,
|
December 31,
|
|||||||
(In thousands)
|
2015
|
2014
|
||||||
Residential mortgage loans:
|
||||||||
1-4 family first-lien residential mortgages
|
$
|
175,978
|
$
|
172,159
|
||||
Construction
|
3,934
|
3,209
|
||||||
Total residential mortgage loans
|
179,912
|
175,368
|
||||||
Commercial loans:
|
||||||||
Real estate
|
126,349
|
125,952
|
||||||
Lines of credit
|
18,119
|
17,407
|
||||||
Other commercial and industrial
|
42,290
|
34,660
|
||||||
Tax exempt loans
|
9,606
|
7,201
|
||||||
Total commercial loans
|
196,364
|
185,220
|
||||||
Consumer loans:
|
||||||||
Home equity and junior liens
|
22,591
|
22,713
|
||||||
Other consumer
|
4,610
|
4,160
|
||||||
Total consumer loans
|
27,201
|
26,873
|
||||||
|
||||||||
Total loans
|
403,477
|
387,461
|
||||||
Net deferred loan (fees) costs
|
(66
|
)
|
77
|
|||||
Less allowance for loan losses
|
(5,900
|
)
|
(5,349
|
)
|
||||
Loans receivable, net
|
$
|
397,511
|
$
|
382,189
|
Portfolio Segment
|
Class
|
Residential Mortgage Loans
|
1-4 family first-lien residential mortgages
|
Construction
|
|
Commercial Loans
|
Real estate
|
Lines of credit
|
|
Other commercial and industrial
|
|
Tax exempt loans
|
|
Consumer Loans
|
Home equity and junior liens
|
Other consumer
|
|
As of June 30, 2015
|
|||||||||||||||||||
Special
|
||||||||||||||||||||
(In thousands)
|
Pass
|
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$
|
170,628
|
$
|
1,148
|
$
|
3,461
|
$
|
741
|
$
|
175,978
|
||||||||||
Construction
|
3,934
|
-
|
-
|
-
|
3,934
|
|||||||||||||||
Total residential mortgage loans
|
174,562
|
1,148
|
3,461
|
741
|
179,912
|
|||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Real estate
|
117,552
|
2,965
|
5,257
|
575
|
126,349
|
|||||||||||||||
Lines of credit
|
16,444
|
693
|
750
|
232
|
18,119
|
|||||||||||||||
Other commercial and industrial
|
40,320
|
832
|
830
|
308
|
42,290
|
|||||||||||||||
Tax exempt loans
|
9,606
|
-
|
-
|
-
|
9,606
|
|||||||||||||||
Total commercial loans
|
183,922
|
4,490
|
6,837
|
1,115
|
196,364
|
|||||||||||||||
Consumer loans:
|
||||||||||||||||||||
Home equity and junior liens
|
21,916
|
66
|
502
|
107
|
22,591
|
|||||||||||||||
Other consumer
|
4,559
|
32
|
19
|
-
|
4,610
|
|||||||||||||||
Total consumer loans
|
26,475
|
98
|
521
|
107
|
27,201
|
|||||||||||||||
Total loans
|
$
|
384,959
|
$
|
5,736
|
$
|
10,819
|
$
|
1,963
|
$
|
403,477
|
|
As of December 31, 2014
|
|||||||||||||||||||
Special
|
||||||||||||||||||||
(In thousands)
|
Pass
|
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$
|
166,352
|
$
|
1,384
|
$
|
3,370
|
$
|
1,053
|
$
|
172,159
|
||||||||||
Construction
|
3,209
|
-
|
-
|
-
|
3,209
|
|||||||||||||||
Total residential mortgage loans
|
169,561
|
1,384
|
3,370
|
1,053
|
175,368
|
|||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Real estate
|
119,521
|
1,157
|
5,132
|
142
|
125,952
|
|||||||||||||||
Lines of credit
|
16,310
|
451
|
646
|
-
|
17,407
|
|||||||||||||||
Other commercial and industrial
|
33,258
|
434
|
941
|
27
|
34,660
|
|||||||||||||||
Tax exempt loans
|
7,201
|
-
|
-
|
-
|
7,201
|
|||||||||||||||
Total commercial loans
|
176,290
|
2,042
|
6,719
|
169
|
185,220
|
|||||||||||||||
Consumer loans:
|
||||||||||||||||||||
Home equity and junior liens
|
21,722
|
333
|
574
|
84
|
22,713
|
|||||||||||||||
Other consumer
|
4,113
|
10
|
37
|
-
|
4,160
|
|||||||||||||||
Total consumer loans
|
25,835
|
343
|
611
|
84
|
26,873
|
|||||||||||||||
Total loans
|
$
|
371,686
|
$
|
3,769
|
$
|
10,700
|
$
|
1,306
|
$
|
387,461
|
|
As of June 30,2015
|
|||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
90 Days
|
||||||||||||||||||||||
Past Due
|
Past Due
|
and Over
|
Total
|
Total Loans
|
||||||||||||||||||||
(In thousands)
|
And Accruing
|
And Accruing
|
|
Past Due
|
Current
|
Receivable
|
||||||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$
|
1,398
|
$
|
637
|
$
|
1,088
|
$
|
3,123
|
$
|
172,855
|
$
|
175,978
|
||||||||||||
Construction
|
-
|
-
|
-
|
-
|
3,934
|
3,934
|
||||||||||||||||||
Total residential mortgage loans
|
1,398
|
637
|
1,088
|
3,123
|
176,789
|
179,912
|
||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Real estate
|
1,082
|
-
|
3,809
|
4,891
|
121,458
|
126,349
|
||||||||||||||||||
Lines of credit
|
705
|
-
|
412
|
1,117
|
17,002
|
18,119
|
||||||||||||||||||
Other commercial and industrial
|
170
|
-
|
650
|
820
|
41,470
|
42,290
|
||||||||||||||||||
Tax exempt loans
|
-
|
-
|
-
|
-
|
9,606
|
9,606
|
||||||||||||||||||
Total commercial loans
|
1,957
|
-
|
4,871
|
6,828
|
189,536
|
196,364
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity and junior liens
|
154
|
-
|
313
|
467
|
22,124
|
22,591
|
||||||||||||||||||
Other consumer
|
33
|
11
|
7
|
51
|
4,559
|
4,610
|
||||||||||||||||||
Total consumer loans
|
187
|
11
|
320
|
518
|
26,683
|
27,201
|
||||||||||||||||||
Total loans
|
$
|
3,542
|
$
|
648
|
$
|
6,279
|
$
|
10,469
|
$
|
393,008
|
$
|
403,477
|
||||||||||||
|
As of December 31, 2014
|
|||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
90 Days
|
||||||||||||||||||||||
Past Due
|
Past Due
|
and Over
|
Total
|
Total Loans
|
||||||||||||||||||||
(In thousands)
|
And Accruing
|
And Accruing
|
Past Due
|
Current
|
Receivable
|
|||||||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$
|
1,455
|
$
|
687
|
$
|
1,902
|
$
|
4,044
|
$
|
168,115
|
$
|
172,159
|
||||||||||||
Construction
|
-
|
-
|
-
|
-
|
3,209
|
3,209
|
||||||||||||||||||
Total residential mortgage loans
|
1,455
|
687
|
1,902
|
4,044
|
171,324
|
175,368
|
||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Real estate
|
1,462
|
32
|
3,547
|
5,041
|
120,911
|
125,952
|
||||||||||||||||||
Lines of credit
|
10
|
-
|
278
|
288
|
17,119
|
17,407
|
||||||||||||||||||
Other commercial and industrial
|
445
|
982
|
205
|
1,632
|
33,028
|
34,660
|
||||||||||||||||||
Tax exempt loans
|
-
|
-
|
-
|
-
|
7,201
|
7,201
|
||||||||||||||||||
Total commercial loans
|
1,917
|
1,014
|
4,030
|
6,961
|
178,259
|
185,220
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity and junior liens
|
120
|
17
|
313
|
450
|
22,263
|
22,713
|
||||||||||||||||||
Other consumer
|
6
|
17
|
11
|
34
|
4,126
|
4,160
|
||||||||||||||||||
Total consumer loans
|
126
|
34
|
324
|
484
|
26,389
|
26,873
|
||||||||||||||||||
Total loans
|
$
|
3,498
|
$
|
1,735
|
$
|
6,256
|
$
|
11,489
|
$
|
375,972
|
$
|
387,461
|
June 30,
|
December 31,
|
|||||||
(In thousands)
|
2015
|
2014
|
||||||
Residential mortgage loans:
|
||||||||
1-4 family first-lien residential mortgages
|
$
|
1,088
|
$
|
1,902
|
||||
|
1,088
|
1,902
|
||||||
Commercial loans:
|
||||||||
Real estate
|
3,809
|
3,547
|
||||||
Lines of credit
|
412
|
278
|
||||||
Other commercial and industrial
|
650
|
205
|
||||||
|
4,871
|
4,030
|
||||||
Consumer loans:
|
||||||||
Home equity and junior liens
|
313
|
313
|
||||||
Other consumer
|
7
|
11
|
||||||
|
320
|
324
|
||||||
Total nonaccrual loans
|
$
|
6,279
|
$
|
6,256
|
�
|
The modification made within the commercial real estate loan class resulted in a pre-modification and post-modification recorded investment of $678,000 and $324,000, respectively. Economic concessions granted included extended payment terms without an associated increase in collateral. The Company was required to increase the specific reserve against this loan by an additional $354,000 which was a component of the provision of loan losses.
|
June 30, 2015
|
December 31, 2014
|
|||||||||||||||||||||||
Unpaid
|
Unpaid
|
|||||||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Principal
|
Related
|
|||||||||||||||||||
(In thousands)
|
Investment
|
Balance
|
Allowance
|
Investment
|
Balance
|
Allowance
|
||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$
|
479
|
$
|
479
|
$
|
-
|
$
|
1,138
|
$
|
1,163
|
$
|
-
|
||||||||||||
Commercial real estate
|
2,148
|
2,233
|
-
|
2,083
|
2,154
|
-
|
||||||||||||||||||
Commercial lines of credit
|
380
|
397
|
-
|
185
|
197
|
-
|
||||||||||||||||||
Other commercial and industrial
|
702
|
727
|
-
|
335
|
356
|
-
|
||||||||||||||||||
Home equity and junior liens
|
-
|
-
|
-
|
21
|
21
|
-
|
||||||||||||||||||
Other consumer
|
7
|
7
|
-
|
-
|
-
|
-
|
||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
2,670
|
2,743
|
1,064
|
2,927
|
2,972
|
552
|
||||||||||||||||||
Commercial lines of credit
|
232
|
232
|
150
|
93
|
99
|
93
|
||||||||||||||||||
Other commercial and industrial
|
250
|
250
|
220
|
268
|
268
|
238
|
||||||||||||||||||
Home equity and junior liens
|
294
|
294
|
5
|
340
|
340
|
31
|
||||||||||||||||||
Other consumer
|
-
|
-
|
-
|
11
|
11
|
3
|
||||||||||||||||||
Total:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
479
|
479
|
-
|
1,138
|
1,163
|
-
|
||||||||||||||||||
Commercial real estate
|
4,818
|
4,976
|
1,064
|
5,010
|
5,126
|
552
|
||||||||||||||||||
Commercial lines of credit
|
612
|
629
|
150
|
278
|
296
|
93
|
||||||||||||||||||
Other commercial and industrial
|
952
|
977
|
220
|
603
|
624
|
238
|
||||||||||||||||||
Home equity and junior liens
|
294
|
294
|
5
|
361
|
361
|
31
|
||||||||||||||||||
Other consumer
|
7
|
7
|
-
|
11
|
11
|
3
|
||||||||||||||||||
Totals
|
$
|
7,162
|
$
|
7,362
|
$
|
1,439
|
$
|
7,401
|
$
|
7,581
|
$
|
917
|
For the three months ended
|
For the six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
(In thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
1-4 family first-lien residential mortgages
|
$
|
633
|
$
|
1,333
|
$
|
801
|
$
|
1,206
|
||||||||
Commercial real estate
|
4,875
|
5,330
|
4,920
|
4,733
|
||||||||||||
Commercial lines of credit
|
543
|
472
|
455
|
442
|
||||||||||||
Other commercial and industrial
|
861
|
555
|
775
|
505
|
||||||||||||
Home equity and junior liens
|
295
|
413
|
317
|
428
|
||||||||||||
Other consumer
|
8
|
9
|
9
|
6
|
||||||||||||
Total
|
$
|
7,215
|
$
|
8,112
|
$
|
7,277
|
$
|
7,320
|
For the three months ended
|
For the six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
(In thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
1-4 family first-lien residential mortgages
|
$
|
5
|
$
|
4
|
$
|
9
|
$
|
9
|
||||||||
Commercial real estate
|
34
|
27
|
50
|
55
|
||||||||||||
Commercial lines of credit
|
7
|
-
|
7
|
1
|
||||||||||||
Other commercial and industrial
|
13
|
7
|
18
|
20
|
||||||||||||
Home equity and junior liens
|
-
|
3
|
10
|
6
|
||||||||||||
Other consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Total
|
$
|
59
|
$
|
41
|
$
|
94
|
$
|
91
|
|
For the three months ended June 30, 2015
|
|||||||||||||||||||
1-4 family
|
||||||||||||||||||||
first-lien
|
Residential
|
Other
|
||||||||||||||||||
residential
|
construction
|
Commercial
|
Commercial
|
commercial
|
||||||||||||||||
(In thousands)
|
mortgage
|
mortgage
|
real estate
|
lines of credit
|
and industrial
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning Balance
|
$
|
498
|
$
|
-
|
$
|
3,165
|
$
|
441
|
$
|
938
|
||||||||||
Charge-offs
|
(27
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||
Recoveries
|
38
|
-
|
-
|
25
|
3
|
|||||||||||||||
Provisions
|
35
|
-
|
123
|
51
|
169
|
|||||||||||||||
Ending balance
|
$
|
544
|
$
|
-
|
$
|
3,288
|
$
|
517
|
$
|
1,110
|
||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
individually evaluated for impairment
|
-
|
-
|
1,064
|
150
|
220
|
|||||||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$
|
544
|
$
|
-
|
$
|
2,224
|
$
|
367
|
$
|
890
|
||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$
|
175,978
|
$
|
3,934
|
$
|
126,349
|
$
|
18,119
|
$
|
42,290
|
||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
479
|
-
|
4,818
|
612
|
952
|
|||||||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$
|
175,499
|
$
|
3,934
|
$
|
121,530
|
$
|
17,508
|
$
|
41,337
|
||||||||||
Home equity
|
Other
|
|||||||||||||||||||
|
Municipal
|
and junior liens
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning Balance
|
$
|
4
|
$
|
329
|
$
|
87
|
$
|
-
|
$
|
5,462
|
||||||||||
Charge-offs
|
-
|
-
|
(12
|
)
|
-
|
(39
|
)
|
|||||||||||||
Recoveries
|
-
|
-
|
10
|
-
|
76
|
|||||||||||||||
Provisions
|
1
|
2
|
20
|
-
|
401
|
|||||||||||||||
Ending balance
|
$
|
5
|
$
|
331
|
$
|
105
|
$
|
-
|
$
|
5,900
|
||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
individually evaluated for impairment
|
-
|
5
|
-
|
-
|
1,439
|
|||||||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$
|
5
|
$
|
326
|
$
|
105
|
$
|
-
|
$
|
4,461
|
||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$
|
9,606
|
$
|
22,591
|
$
|
4,610
|
$
|
403,477
|
||||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
-
|
294
|
7
|
7,162
|
||||||||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$
|
9,606
|
$
|
22,298
|
$
|
4,603
|
$
|
396,315
|
|
For the six months ended June 30, 2015
|
|||||||||||||||||||
1-4 family
|
||||||||||||||||||||
first-lien
|
Residential
|
Other
|
||||||||||||||||||
residential
|
construction
|
Commercial
|
Commercial
|
commercial
|
||||||||||||||||
(In thousands)
|
mortgage
|
mortgage
|
real estate
|
lines of credit
|
and industrial
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning Balance
|
$
|
509
|
$
|
-
|
$
|
2,801
|
$
|
460
|
$
|
1,034
|
||||||||||
Charge-offs
|
(165
|
)
|
-
|
(29
|
)
|
(10
|
)
|
(108
|
)
|
|||||||||||
Recoveries
|
38
|
-
|
-
|
36
|
5
|
|||||||||||||||
Provisions
|
162
|
-
|
516
|
31
|
179
|
|||||||||||||||
Ending balance
|
$
|
544
|
$
|
-
|
$
|
3,288
|
$
|
517
|
$
|
1,110
|
||||||||||
Home equity
|
Other
|
|||||||||||||||||||
|
Tax exempt
|
and junior liens
|
consumer
|
Unallocated
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning Balance
|
$
|
3
|
$
|
388
|
$
|
98
|
$
|
56
|
$
|
5,349
|
||||||||||
Charge-offs
|
-
|
-
|
(32
|
)
|
-
|
(344
|
)
|
|||||||||||||
Recoveries
|
-
|
7
|
25
|
-
|
111
|
|||||||||||||||
Provisions
|
2
|
(64
|
)
|
14
|
(56
|
)
|
784
|
|||||||||||||
Ending balance
|
$
|
5
|
$
|
331
|
$
|
105
|
$
|
-
|
$
|
5,900
|
|
For the three months ended June 30, 2014
|
|||||||||||||||||||
1-4 family
|
||||||||||||||||||||
first-lien
|
Residential
|
Other
|
||||||||||||||||||
residential
|
construction
|
Commercial
|
Commercial
|
commercial
|
||||||||||||||||
(In thousands)
|
mortgage
|
mortgage
|
real estate
|
lines of credit
|
and industrial
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning Balance
|
$
|
604
|
$
|
-
|
$
|
2,436
|
$
|
523
|
$
|
974
|
||||||||||
Charge-offs
|
(30
|
)
|
-
|
-
|
-
|
(95
|
)
|
|||||||||||||
Recoveries
|
1
|
-
|
-
|
1
|
2
|
|||||||||||||||
Provisions
|
(84
|
)
|
-
|
188
|
30
|
(30
|
)
|
|||||||||||||
Ending balance
|
$
|
491
|
$
|
-
|
$
|
2,624
|
$
|
554
|
$
|
851
|
||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
individually evaluated for impairment
|
-
|
-
|
681
|
229
|
118
|
|||||||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$
|
491
|
$
|
-
|
$
|
1,943
|
$
|
325
|
$
|
733
|
||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$
|
169,095
|
$
|
1,444
|
$
|
109,381
|
$
|
16,127
|
$
|
33,674
|
||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
1,312
|
-
|
5,260
|
468
|
505
|
|||||||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$
|
167,783
|
$
|
1,444
|
$
|
104,121
|
$
|
15,659
|
$
|
33,169
|
||||||||||
Home equity
|
Other
|
|||||||||||||||||||
|
Municipal
|
and junior liens
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning Balance
|
$
|
1
|
$
|
432
|
$
|
102
|
$
|
(73
|
)
|
$
|
4,999
|
|||||||||
Charge-offs
|
-
|
-
|
(9
|
)
|
-
|
(134
|
)
|
|||||||||||||
Recoveries
|
-
|
-
|
22
|
-
|
26
|
|||||||||||||||
Provisions
|
-
|
(10
|
)
|
(6
|
)
|
187
|
275
|
|||||||||||||
Ending balance
|
$
|
1
|
$
|
422
|
$
|
109
|
$
|
114
|
$
|
5,166
|
||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
individually evaluated for impairment
|
-
|
34
|
7
|
-
|
1,069
|
|||||||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$
|
1
|
$
|
388
|
$
|
102
|
$
|
114
|
$
|
4,097
|
||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$
|
3,122
|
$
|
21,554
|
$
|
4,144
|
$
|
358,541
|
||||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
-
|
371
|
15
|
7,931
|
||||||||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$
|
3,122
|
$
|
21,183
|
$
|
4,129
|
$
|
350,610
|
|
For the six months ended June 30, 2014
|
|||||||||||||||||||
1-4 family
|
||||||||||||||||||||
first-lien
|
Residential
|
Other
|
||||||||||||||||||
residential
|
construction
|
Commercial
|
Commercial
|
commercial
|
||||||||||||||||
(In thousands)
|
mortgage
|
mortgage
|
real estate
|
lines of credit
|
and industrial
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning Balance
|
$
|
649
|
$
|
-
|
$
|
2,302
|
$
|
397
|
$
|
834
|
||||||||||
Charge-offs
|
(42
|
)
|
-
|
(47
|
)
|
(85
|
)
|
(153
|
)
|
|||||||||||
Recoveries
|
1
|
-
|
-
|
3
|
3
|
|||||||||||||||
Provisions
|
(117
|
)
|
-
|
369
|
239
|
167
|
||||||||||||||
Ending balance
|
$
|
491
|
$
|
-
|
$
|
2,624
|
$
|
554
|
$
|
851
|
||||||||||
Home equity
|
Other
|
|||||||||||||||||||
|
Municipal
|
and junior liens
|
consumer
|
Unallocated
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning Balance
|
$
|
2
|
$
|
433
|
$
|
136
|
$
|
288
|
$
|
5,041
|
||||||||||
Charge-offs
|
-
|
(50
|
)
|
(60
|
)
|
-
|
(437
|
)
|
||||||||||||
Recoveries
|
-
|
-
|
35
|
-
|
42
|
|||||||||||||||
Provisions
|
(1
|
)
|
39
|
(2
|
)
|
(174
|
)
|
520
|
||||||||||||
Ending balance
|
$
|
1
|
$
|
422
|
$
|
109
|
$
|
114
|
$
|
5,166
|
June 30,
|
December 31,
|
|||||||||||||||
(Dollars in thousands)
|
Number of properties
|
2015
|
Number of properties
|
2014
|
||||||||||||
Foreclosed real estate
|
||||||||||||||||
Foreclosed residential mortgage loans
|
5
|
$
|
361
|
4
|
$
|
261
|
June 30, 2015
|
||||||||||||||||
Total Fair
|
||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Value
|
||||||||||||
Available-for-sale portfolio
|
||||||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$
|
-
|
$
|
28,740
|
$
|
-
|
$
|
28,740
|
||||||||
State and political subdivisions
|
-
|
8,218
|
-
|
8,218
|
||||||||||||
Corporate
|
-
|
18,280
|
-
|
18,280
|
||||||||||||
Residential mortgage-backed - US agency
|
-
|
29,301
|
-
|
29,301
|
||||||||||||
Collateralized mortgage obligations - US agency
|
-
|
15,852
|
-
|
15,852
|
||||||||||||
Equity investment securities:
|
||||||||||||||||
Mutual funds:
|
||||||||||||||||
Ultra short mortgage fund
|
645
|
-
|
-
|
645
|
||||||||||||
Large cap equity fund
|
624
|
-
|
-
|
624
|
||||||||||||
Other mutual funds
|
-
|
409
|
-
|
409
|
||||||||||||
Common stock - financial services industry
|
43
|
249
|
-
|
292
|
||||||||||||
Total available-for-sale securities
|
$
|
1,312
|
$
|
101,049
|
$
|
-
|
$
|
102,361
|
||||||||
Interest rate swap derivative
|
$
|
-
|
$
|
(57
|
)
|
$
|
-
|
$
|
(57
|
)
|
||||||
December 31, 2014
|
||||||||||||||||
Total Fair
|
||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Value
|
||||||||||||
Available-for-sale portfolio
|
||||||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$
|
-
|
$
|
17,750
|
$
|
-
|
$
|
17,750
|
||||||||
State and political subdivisions
|
-
|
8,443
|
-
|
8,443
|
||||||||||||
Corporate
|
-
|
13,860
|
-
|
13,860
|
||||||||||||
Residential mortgage-backed - US agency
|
-
|
30,575
|
-
|
30,575
|
||||||||||||
Collateralized mortgage obligations - US agency
|
-
|
15,476
|
-
|
15,476
|
||||||||||||
Equity investment securities:
|
||||||||||||||||
Mutual funds:
|
||||||||||||||||
Ultra short mortgage fund
|
648
|
-
|
-
|
648
|
||||||||||||
Large cap equity fund
|
649
|
-
|
-
|
649
|
||||||||||||
Other mutual funds
|
-
|
379
|
-
|
379
|
||||||||||||
Common stock - financial services industry
|
43
|
250
|
-
|
293
|
||||||||||||
Total available-for-sale securities
|
$
|
1,340
|
$
|
86,733
|
$
|
-
|
$
|
88,073
|
||||||||
Interest rate swap derivative
|
$
|
-
|
$
|
(82
|
)
|
$
|
-
|
$
|
(82
|
)
|
June 30, 2015
|
||||||||||||||||
Total Fair
|
||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Value
|
||||||||||||
Impaired loans
|
$
|
-
|
$
|
-
|
$
|
1,794
|
$
|
1,794
|
||||||||
Foreclosed real estate
|
$
|
-
|
$
|
-
|
$
|
52
|
$
|
52
|
||||||||
December 31, 2014
|
||||||||||||||||
Total Fair
|
||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Value
|
||||||||||||
Impaired loans
|
$
|
-
|
$
|
-
|
$
|
1,277
|
$
|
1,277
|
||||||||
Foreclosed real estate
|
$
|
-
|
$
|
-
|
$
|
105
|
$
|
105
|
Quantitative Information about Level 3 Fair Value Measurements
|
|
||
Valuation
|
Unobservable
|
Range
|
|
Techniques
|
Input
|
(Weighted Avg.)
|
|
At June 30,2015
|
|||
Impaired loans
|
Appraisal of collateral
|
Appraisal Adjustments
|
5% - 20% (11%)
|
(Sales Approach)
|
Costs to Sell
|
7% - 15% (12%)
|
|
Discounted Cash Flow
|
|||
Foreclosed real estate
|
Appraisal of collateral
|
Appraisal Adjustments
|
15% - 15% (15%)
|
(Sales Approach)
|
Costs to Sell
|
6% - 8% (7%)
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||
Valuation
|
Unobservable
|
Range
|
|
Techniques
|
Input
|
(Weighted Avg.)
|
|
At December 31, 2014
|
|||
Impaired loans
|
Appraisal of collateral
|
Appraisal Adjustments
|
5% - 25% (13%)
|
(Sales Approach)
|
Costs to Sell
|
6% - 50% (13%)
|
|
Discounted Cash Flow
|
|||
Foreclosed real estate
|
Appraisal of collateral
|
Appraisal Adjustments
|
15% - 15% (15%)
|
(Sales Approach)
|
Costs to Sell
|
6% - 8% (7%)
|
|
June 30, 2015
|
December 31, 2014
|
|||||||||||||||||||
Fair Value
|
Carrying
|
Estimated
|
Carrying
|
Estimated
|
||||||||||||||||
(Dollars In thousands)
|
Hierarchy
|
Amounts
|
Fair Values
|
Amounts
|
Fair Values
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
1
|
$
|
17,410
|
$
|
17,410
|
$
|
11,356
|
$
|
11,356
|
|||||||||||
Investment securities - available-for-sale
|
1
|
1,312
|
1,312
|
1,340
|
1,340
|
|||||||||||||||
Investment securities - available-for-sale
|
2
|
101,049
|
101,049
|
86,733
|
86,733
|
|||||||||||||||
Investment securities - held-to-maturity
|
2
|
43,893
|
44,875
|
40,875
|
42,139
|
|||||||||||||||
Federal Home Loan Bank stock
|
2
|
3,356
|
3,356
|
3,454
|
3,454
|
|||||||||||||||
Net loans
|
3
|
397,511
|
402,856
|
382,189
|
388,151
|
|||||||||||||||
Accrued interest receivable
|
1
|
1,966
|
1,966
|
1,849
|
1,849
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Demand Deposits, Savings, NOW and MMDA
|
1
|
$
|
308,938
|
$
|
308,938
|
$
|
263,004
|
$
|
263,004
|
|||||||||||
Time Deposits
|
2
|
148,637
|
148,543
|
152,564
|
152,457
|
|||||||||||||||
Borrowings
|
2
|
62,000
|
62,078
|
66,100
|
66,282
|
|||||||||||||||
Junior subordinated debentures
|
2
|
5,155
|
4,576
|
5,155
|
4,799
|
|||||||||||||||
Accrued interest payable
|
1
|
60
|
60
|
63
|
63
|
|||||||||||||||
Interest rate swap derivative
|
2
|
57
|
57
|
82
|
82
|
June 30,
|
December 31,
|
|||||||
(In thousands)
|
2015
|
2014
|
||||||
Cash flow hedge:
|
||||||||
Other liabilities
|
$
|
57
|
$
|
82
|
Three months ended June 30,
|
||||||||
(In thousands)
|
2015
|
2014
|
||||||
Balance as of March 31:
|
$
|
(67
|
)
|
$
|
(123
|
)
|
||
Amount of (gains) recognized in other comprehensive income
|
(5
|
)
|
(4
|
)
|
||||
Amount of loss reclassified from other comprehensive income
|
||||||||
and recognized as interest expense
|
15
|
15
|
||||||
Balance as of June 30:
|
$
|
(57
|
)
|
$
|
(112
|
)
|
||
Six months ended June 30,
|
||||||||
(In thousands)
|
2014
|
2014
|
||||||
Balance as of December 31:
|
$
|
(82
|
)
|
$
|
(135
|
)
|
||
Amount of losses recognized in other comprehensive income
|
(6
|
)
|
(7
|
)
|
||||
Amount of loss reclassified from other comprehensive income
|
||||||||
and recognized as interest expense
|
31
|
30
|
||||||
Balance as of June 30:
|
$
|
(57
|
)
|
$
|
(112
|
)
|
For the three months ended June 30, 2015
|
||||||||||||||||||||
(In thousands)
|
Retirement Plans
|
Unrealized Gains and Losses on Financial Derivative
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
Unrealized Loss on Securities Transferred to Held-to-Maturity
|
Total
|
|||||||||||||||
Beginning balance
|
$
|
(1,767
|
)
|
$
|
(40
|
)
|
$
|
705
|
$
|
(713
|
)
|
$
|
(1,815
|
)
|
||||||
Other comprehensive (loss) income before reclassifications
|
-
|
(3
|
)
|
(527
|
)
|
19
|
(511
|
)
|
||||||||||||
Amounts reclassified from AOCI
|
27
|
9
|
(29
|
)
|
-
|
7
|
||||||||||||||
Ending balance
|
$
|
(1,740
|
)
|
$
|
(34
|
)
|
$
|
149
|
$
|
(694
|
)
|
$
|
(2,319
|
)
|
||||||
For the six months ended June 30, 2015
|
||||||||||||||||||||
(In thousands)
|
Retirement Plans
|
Unrealized Gains and Losses on Financial derivative
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
Unrealized Loss on Securities Transferred to Held-to-Maturity
|
Total
|
|||||||||||||||
Beginning balance
|
$
|
(1,794
|
)
|
$
|
(49
|
)
|
$
|
457
|
$
|
(733
|
)
|
$
|
(2,119
|
)
|
||||||
Other comprehensive (loss) income before reclassifications
|
-
|
(4
|
)
|
(248
|
)
|
39
|
(213
|
)
|
||||||||||||
Amounts reclassified from AOCI
|
54
|
19
|
(60
|
)
|
-
|
13
|
||||||||||||||
Ending balance
|
$
|
(1,740
|
)
|
$
|
(34
|
)
|
$
|
149
|
$
|
(694
|
)
|
$
|
(2,319
|
)
|
For the three months ended June 30, 2014
|
||||||||||||||||||||
(In thousands)
|
Retirement Plans
|
Unrealized Gains and Losses on Financial derivative
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
Unrealized Loss on Securities Transferred to Held-to-Maturity
|
Total
|
|||||||||||||||
Beginning balance
|
$
|
(975
|
)
|
$
|
(74
|
)
|
$
|
290
|
$
|
(763
|
)
|
$
|
(1,522
|
)
|
||||||
Other comprehensive (loss) income before reclassifications
|
-
|
(2
|
)
|
185
|
18
|
201
|
||||||||||||||
Amounts reclassified from AOCI
|
6
|
9
|
(14
|
)
|
-
|
1
|
||||||||||||||
Ending balance
|
$
|
(969
|
)
|
$
|
(67
|
)
|
$
|
461
|
$
|
(745
|
)
|
$
|
(1,320
|
)
|
||||||
For the six months ended June 30, 2014
|
||||||||||||||||||||
(In thousands)
|
Retirement Plans
|
Unrealized Gains and Losses on Financial derivative
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
Securities reclassified from AFS to HTM
|
Total
|
|||||||||||||||
Beginning balance
|
$
|
(982
|
)
|
$
|
(81
|
)
|
$
|
99
|
$
|
(781
|
)
|
(1,745
|
)
|
|||||||
Other comprehensive (loss) income before reclassifications
|
-
|
(4
|
)
|
378
|
36
|
410
|
||||||||||||||
Amounts reclassified from AOCI
|
13
|
18
|
(16
|
)
|
-
|
15
|
||||||||||||||
Ending balance
|
$
|
(969
|
)
|
$
|
(67
|
)
|
$
|
461
|
$
|
(745
|
)
|
$
|
(1,320
|
)
|
Amount Reclassified
|
Amount Reclassified
|
||||||||||||||||
from AOCI
1
|
from AOCI
1
|
||||||||||||||||
(Unaudited)
|
|
|
|||||||||||||||
(In thousands)
|
For the three months ended
|
For the six months ended
|
|||||||||||||||
Details about AOCI
1
components
|
June 30, 2015
|
June 30, 2014
|
Affected Line Item in the Statement of Income
|
June 30, 2015
|
June 30, 2014
|
||||||||||||
|
|
|
|
|
|||||||||||||
Unrealized holding gain on financial derivative:
|
|||||||||||||||||
Reclassification adjustment for
|
|||||||||||||||||
interest expense included in net income
|
$
|
(15
|
)
|
$
|
(15
|
)
|
Interest on long term borrowings
|
$
|
(31
|
)
|
$
|
(30
|
)
|
||||
6
|
6
|
Provision for income taxes
|
12
|
12
|
|||||||||||||
$
|
(9
|
)
|
$
|
(9
|
)
|
Net Income
|
$
|
(19
|
)
|
$
|
(18
|
)
|
|||||
Retirement plan items
|
|||||||||||||||||
Retirement plan net losses
|
|||||||||||||||||
recognized in plan expenses
2
|
$
|
(45
|
)
|
$
|
(11
|
)
|
Salaries and employee benefits
|
$
|
(90
|
)
|
$
|
(22
|
)
|
||||
18
|
5
|
Provision for income taxes
|
36
|
9
|
|||||||||||||
$
|
(27
|
)
|
$
|
(6
|
)
|
Net Income
|
$
|
(54
|
)
|
$
|
(13
|
)
|
|||||
Available-for-sale securities
|
|||||||||||||||||
Realized gain on sale of securities
|
$
|
49
|
$
|
24
|
Net gains on sales and redemptions of investment securities
|
$
|
101
|
$
|
26
|
||||||||
(20
|
)
|
(10
|
)
|
Provision for income taxes
|
(41
|
)
|
(10
|
)
|
|||||||||
$
|
29
|
$
|
14
|
Net Income
|
$
|
60
|
$
|
16
|
|||||||||
1
Amounts in parentheses indicates debits in net income.
|
|||||||||||||||||
2
These items are included in net periodic pension cost.
|
|||||||||||||||||
See Note 5 for additional information.
|
�
|
general economic conditions, either nationally or in our market area, that are worse than expected;
|
�
|
inflation and changes in the interest rate environment that reduce our interest margins or reduce the fair value of financial instruments;
|
�
|
increased competitive pressures among financial services companies;
|
�
|
changes in consumer spending, borrowing and savings habits;
|
�
|
our ability to enter new markets successfully and take advantage of growth opportunities, and the possible dilutive effect of potential acquisitions or
de novo
branches, if any;
|
�
|
legislative or regulatory changes that may adversely affect our business;
|
�
|
adverse changes in the securities markets;
|
�
|
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board or the Securities and Exchange Commission;
|
�
|
inability of third-party providers to perform their obligations to us; and
|
�
|
changes in our organization, compensation and benefit plans.
|
�
|
The Company establishes a specific allowance for all commercial loans in excess of the total related credit threshold of $100,000 and single borrower residential mortgage loans in excess of the total related credit threshold of $300,000 identified as being impaired which are on nonaccrual and have been risk rated under the Company's risk rating system as substandard, doubtful, or loss. In addition, an accruing substandard loan could be identified as being impaired. Impairment is measured by either the present value of the expected future cash flows discounted at the loan's effective interest rate or the fair value of the underlying collateral if the loan is collateral dependent. The majority of the Company's impaired loans and leases utilize the fair value of the underlying collateral.
|
�
|
For all other loans and leases, the Company uses the general allocation methodology that establishes an allowance to estimate the probable incurred loss for each risk-rating category.
|
�
|
Net income improved by 2.7% to $694,000.
|
�
|
Basic and diluted earnings per share improved by $0.01 to $0.16 per share due to the increase in earnings. Return on average assets decreased 3 basis points to 0.46%.
|
�
|
Net interest income increased 13.6% to $4.7 million due to our increase in asset size. Net interest margin decreased slightly by 1 basis point to 3.33%, but was offset by the increase in average balances of interest earning assets and the decrease in average rates paid on time deposits and borrowings.
|
�
|
Net income improved by 5.0% to $1.2 million.
|
�
|
Basic and diluted earnings per share improved by $0.01 to $0.28 per share. Return on average assets decreased by 3 basis points to 0.41% as the increase in average assets outpaced the increased in net income.
|
�
|
Net interest income increased 12.8% to $9.2 million. Net interest margin decreased by 5 basis points to 3.31% as the decrease in average yield on interest earning assets was greater than the decrease in average rates paid on time deposits and borrowings.
|
�
|
Asset quality exhibited signs of improvement between December 31, 2014 and June 30, 2015. Delinquencies decreased, the ratio of annualized net loan charge-offs to average loans decreased by 13 basis points to 0.12%, and the ratio of nonperforming loans to period end loans decreased by 5 basis points to 1.56%. Offsetting these improvements was the need for an increase in specific reserves on impaired loans from $917,000 to $1.4 million due to two large commercial relationships.
|
�
|
Total assets increased 7.0% to $600.3 million. Increases were recorded in investment securities, loans, and cash and equivalents. This was funded largely by the increases in Money Market Deposit Accounts ("MMDA") and business and municipal demand deposits.
|
�
|
Gross loans reported an increase of 4.1% to $403.4 million.
|
For the three months ended June 30,
|
||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Average
|
Yield /
|
Average
|
Yield /
|
|||||||||||||||||||||
(Dollars in thousands)
|
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$
|
395,934
|
$
|
4,551
|
4.60
|
%
|
$
|
352,280
|
$
|
4,104
|
4.66
|
%
|
||||||||||||
Taxable investment securities
|
124,068
|
556
|
1.79
|
%
|
106,602
|
483
|
1.81
|
%
|
||||||||||||||||
Tax-exempt investment securities
|
27,906
|
190
|
2.72
|
%
|
26,960
|
194
|
2.88
|
%
|
||||||||||||||||
Interest-earning time deposit
|
-
|
-
|
0.00
|
%
|
500
|
2
|
1.60
|
%
|
||||||||||||||||
Fed funds sold and Interest-earning deposits
|
14,330
|
5
|
0.14
|
%
|
6,223
|
1
|
0.06
|
%
|
||||||||||||||||
Total interest-earning assets
|
562,238
|
5,302
|
3.77
|
%
|
492,565
|
4,784
|
3.88
|
%
|
||||||||||||||||
Noninterest-earning assets:
|
||||||||||||||||||||||||
Other assets
|
40,535
|
39,106
|
||||||||||||||||||||||
Allowance for loan losses
|
(5,605
|
)
|
(5,077
|
)
|
||||||||||||||||||||
Net unrealized gains
|
||||||||||||||||||||||||
on available-for sale-securities
|
1,075
|
723
|
||||||||||||||||||||||
Total assets
|
$
|
598,243
|
$
|
527,317
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$
|
48,655
|
$
|
21
|
0.17
|
%
|
$
|
37,342
|
$
|
16
|
0.17
|
%
|
||||||||||||
Money management accounts
|
13,184
|
5
|
0.15
|
%
|
13,342
|
5
|
0.15
|
%
|
||||||||||||||||
MMDA accounts
|
128,883
|
160
|
0.50
|
%
|
98,551
|
96
|
0.39
|
%
|
||||||||||||||||
Savings and club accounts
|
76,095
|
16
|
0.08
|
%
|
74,793
|
16
|
0.09
|
%
|
||||||||||||||||
Time deposits
|
148,358
|
281
|
0.76
|
%
|
159,982
|
364
|
0.91
|
%
|
||||||||||||||||
Junior subordinated debentures
|
5,155
|
40
|
3.10
|
%
|
5,155
|
41
|
3.18
|
%
|
||||||||||||||||
Borrowings
|
42,140
|
100
|
0.95
|
%
|
35,842
|
128
|
1.43
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
462,470
|
623
|
0.54
|
%
|
425,007
|
666
|
0.63
|
%
|
||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
60,970
|
54,269
|
||||||||||||||||||||||
Other liabilities
|
4,241
|
3,602
|
||||||||||||||||||||||
Total liabilities
|
527,681
|
482,878
|
||||||||||||||||||||||
Shareholders' equity
|
70,562
|
44,439
|
||||||||||||||||||||||
Total liabilities & shareholders' equity
|
$
|
598,243
|
$
|
527,317
|
||||||||||||||||||||
Net interest income
|
$
|
4,679
|
$
|
4,118
|
||||||||||||||||||||
Net interest rate spread
|
3.23
|
%
|
3.25
|
%
|
||||||||||||||||||||
Net interest margin
|
3.33
|
%
|
3.34
|
%
|
||||||||||||||||||||
Ratio of average interest-earning assets
|
||||||||||||||||||||||||
to average interest-bearing liabilities
|
121.57
|
%
|
115.90
|
%
|
For the six months ended June 30,
|
||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Average
|
Yield /
|
Average
|
Yield /
|
|||||||||||||||||||||
(Dollars in thousands)
|
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$
|
392,636
|
$
|
8,950
|
4.56
|
%
|
$
|
349,003
|
$
|
8,168
|
4.68
|
%
|
||||||||||||
Taxable investment securities
|
121,398
|
1,044
|
1.72
|
%
|
100,514
|
936
|
1.86
|
%
|
||||||||||||||||
Tax-exempt investment securities
|
28,327
|
387
|
2.73
|
%
|
27,053
|
389
|
2.88
|
%
|
||||||||||||||||
Interest-earning time deposit
|
-
|
-
|
0.00
|
%
|
500
|
4
|
1.60
|
%
|
||||||||||||||||
Fed funds sold and interest-earning deposits
|
13,239
|
7
|
0.11
|
%
|
7,012
|
2
|
0.06
|
%
|
||||||||||||||||
Total interest-earning assets
|
555,600
|
10,388
|
3.74
|
%
|
484,082
|
9,499
|
3.92
|
%
|
||||||||||||||||
Noninterest-earning assets:
|
||||||||||||||||||||||||
Other assets
|
39,889
|
38,964
|
||||||||||||||||||||||
Allowance for loan losses
|
(5,490
|
)
|
(5,082
|
)
|
||||||||||||||||||||
Net unrealized gains
|
||||||||||||||||||||||||
on available for sale securities
|
977
|
590
|
||||||||||||||||||||||
Total assets
|
$
|
590,976
|
$
|
518,554
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$
|
46,724
|
$
|
39
|
0.17
|
%
|
$
|
39,086
|
$
|
33
|
0.17
|
%
|
||||||||||||
Money management accounts
|
13,066
|
10
|
0.15
|
%
|
13,327
|
10
|
0.15
|
%
|
||||||||||||||||
MMDA accounts
|
115,287
|
270
|
0.47
|
%
|
94,529
|
190
|
0.40
|
%
|
||||||||||||||||
Savings and club accounts
|
75,351
|
31
|
0.08
|
%
|
74,865
|
31
|
0.08
|
%
|
||||||||||||||||
Time deposits
|
156,049
|
578
|
0.74
|
%
|
155,946
|
762
|
0.98
|
%
|
||||||||||||||||
Junior subordinated debentures
|
5,155
|
80
|
3.10
|
%
|
5,155
|
80
|
3.10
|
%
|
||||||||||||||||
Borrowings
|
44,844
|
198
|
0.88
|
%
|
35,055
|
254
|
1.45
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
456,476
|
1,206
|
0.53
|
%
|
417,963
|
1,360
|
0.65
|
%
|
||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
61,061
|
53,167
|
||||||||||||||||||||||
Other liabilities
|
3,248
|
3,563
|
||||||||||||||||||||||
Total liabilities
|
520,785
|
474,693
|
||||||||||||||||||||||
Shareholders' equity
|
70,191
|
43,861
|
||||||||||||||||||||||
Total liabilities & shareholders' equity
|
$
|
590,976
|
$
|
518,554
|
||||||||||||||||||||
Net interest income
|
$
|
9,182
|
$
|
8,139
|
||||||||||||||||||||
Net interest rate spread
|
3.21
|
%
|
3.27
|
%
|
||||||||||||||||||||
Net interest margin
|
3.31
|
%
|
3.36
|
%
|
||||||||||||||||||||
Ratio of average interest-earning assets
|
||||||||||||||||||||||||
to average interest-bearing liabilities
|
121.72
|
%
|
115.82
|
%
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||||||||||
2015 vs. 2014
|
2015 vs. 2014
|
|||||||||||||||||||||||
Increase/(Decrease) Due to
|
Increase/(Decrease) Due to
|
|||||||||||||||||||||||
Total
|
Total
|
|||||||||||||||||||||||
Increase
|
Increase
|
|||||||||||||||||||||||
(In thousands)
|
Volume
|
Rate
|
(Decrease)
|
Volume
|
Rate
|
(Decrease)
|
||||||||||||||||||
Interest Income:
|
||||||||||||||||||||||||
Loans
|
$
|
799
|
$
|
(352
|
)
|
$
|
447
|
$
|
1,351
|
$
|
(569
|
)
|
$
|
782
|
||||||||||
Taxable investment securities
|
108
|
(35
|
)
|
73
|
288
|
(180
|
)
|
108
|
||||||||||||||||
Tax-exempt investment securities
|
31
|
(35
|
)
|
(4
|
)
|
37
|
(39
|
)
|
(2
|
)
|
||||||||||||||
Interest-earning time deposits
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
(2
|
)
|
(2
|
)
|
(4
|
)
|
||||||||||||
Interest-earning deposits
|
2
|
2
|
4
|
3
|
2
|
5
|
||||||||||||||||||
Total interest income
|
939
|
(421
|
)
|
518
|
1,677
|
(788
|
)
|
889
|
||||||||||||||||
Interest Expense:
|
||||||||||||||||||||||||
NOW accounts
|
5
|
-
|
5
|
7
|
(1
|
)
|
6
|
|||||||||||||||||
Money management accounts
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
MMDA accounts
|
34
|
30
|
64
|
46
|
34
|
80
|
||||||||||||||||||
Savings and club accounts
|
1
|
(1
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Time deposits
|
(25
|
)
|
(58
|
)
|
(83
|
)
|
2
|
(186
|
)
|
(184
|
)
|
|||||||||||||
Junior subordinated debentures
|
-
|
(1
|
)
|
(1
|
)
|
-
|
-
|
-
|
||||||||||||||||
Borrowings
|
108
|
(136
|
)
|
(28
|
)
|
142
|
(198
|
)
|
(56
|
)
|
||||||||||||||
Total interest expense
|
123
|
(166
|
)
|
(43
|
)
|
197
|
(351
|
)
|
(154
|
)
|
||||||||||||||
Net change in net interest income
|
$
|
816
|
$
|
(255
|
)
|
$
|
561
|
$
|
1,480
|
$
|
(437
|
)
|
$
|
1,043
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
||||||||||||||||||||||||||
Service charges on deposit accounts
|
$
|
288
|
$
|
305
|
$
|
(17
|
)
|
-5.6
|
%
|
$
|
554
|
$
|
584
|
$
|
(30
|
)
|
-5.1
|
%
|
||||||||||||||
Earnings and gain on bank owned life insurance
|
65
|
66
|
(1
|
)
|
-1.5
|
%
|
149
|
126
|
23
|
18.3
|
%
|
|||||||||||||||||||||
Loan servicing fees
|
41
|
67
|
(26
|
)
|
-38.8
|
%
|
93
|
120
|
(27
|
)
|
-22.5
|
%
|
||||||||||||||||||||
Debit card interchange fees
|
136
|
129
|
7
|
5.4
|
%
|
259
|
243
|
16
|
6.6
|
%
|
||||||||||||||||||||||
Other charges, commissions and fees
|
377
|
261
|
116
|
44.4
|
%
|
665
|
575
|
90
|
15.7
|
%
|
||||||||||||||||||||||
Noninterest income before gains
|
907
|
828
|
79
|
9.5
|
%
|
1,720
|
1,648
|
72
|
4.4
|
%
|
||||||||||||||||||||||
Net gains on sales and redemptions of investment securities
|
49
|
24
|
25
|
104.2
|
%
|
101
|
26
|
75
|
288.5
|
%
|
||||||||||||||||||||||
Net (losses)/gains on sales of loans and foreclosed real estate
|
(4
|
)
|
26
|
(30
|
)
|
-115.4
|
%
|
(4
|
)
|
30
|
(34
|
)
|
-113.3
|
%
|
||||||||||||||||||
Total noninterest income
|
$
|
952
|
$
|
878
|
$
|
74
|
8.4
|
%
|
$
|
1,817
|
$
|
1,704
|
$
|
113
|
6.6
|
%
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
||||||||||||||||||||||||||
Salaries and employee benefits
|
$
|
2,356
|
$
|
2,187
|
$
|
169
|
7.7
|
%
|
$
|
4,738
|
$
|
4,384
|
$
|
354
|
8.1
|
%
|
||||||||||||||||
Building occupancy
|
441
|
364
|
77
|
21.2
|
%
|
944
|
771
|
173
|
22.4
|
%
|
||||||||||||||||||||||
Data processing
|
354
|
399
|
(45
|
)
|
-11.3
|
%
|
742
|
764
|
(22
|
)
|
-2.9
|
%
|
||||||||||||||||||||
Professional and other services
|
229
|
173
|
56
|
32.4
|
%
|
449
|
348
|
101
|
29.0
|
%
|
||||||||||||||||||||||
Advertising
|
114
|
99
|
15
|
15.2
|
%
|
236
|
231
|
5
|
2.2
|
%
|
||||||||||||||||||||||
FDIC assessments
|
102
|
100
|
2
|
2.0
|
%
|
197
|
195
|
2
|
1.0
|
%
|
||||||||||||||||||||||
Audits and exams
|
59
|
61
|
(2
|
)
|
-3.3
|
%
|
120
|
125
|
(5
|
)
|
-4.0
|
%
|
||||||||||||||||||||
Other expenses
|
577
|
380
|
197
|
51.8
|
%
|
1,030
|
852
|
178
|
20.9
|
%
|
||||||||||||||||||||||
Total noninterest expenses
|
$
|
4,232
|
$
|
3,763
|
$
|
469
|
12.5
|
%
|
$
|
8,456
|
$
|
7,670
|
$
|
786
|
10.2
|
%
|
�
|
The increase in salaries and employee benefits between the year over year second quarter periods was principally due to wage increases and the operation of the new Syracuse business banking office which opened in the third quarter of 2014.
|
�
|
The increase in building occupancy expenses was principally due to $31,000 in additional property taxes, $15,000 in additional building maintenance, and $19,000 in additional lease expense due to the new Syracuse business banking office.
|
�
|
The increase in professional and other services expenses was due largely to additional legal and consulting fees.
|
�
|
Other expenses increased in the year over year second quarter periods due principally to community service donations, foreclosure loss accruals, and differences in non-recurring other expenses as the latter recorded a credit in the second quarter of 2014 from the recapture of the prior year's fraud losses.
|
�
|
The increase in salaries and employee benefits between these two time periods was due to wage and merit increases and personnel expenses related to the operation of the new Syracuse business banking office, ESOP compensation expenses driven by the increase in market value of our common stock shares, and employee benefits.
|
�
|
The increase in building occupancy expenses related to a $62,000 increase in property taxes, $34,000 related to the lease on the new Syracuse business banking office, and $42,000 related to the increase in building maintenance driven by the unusually harsh winter.
|
�
|
Other expenses increased due to an additional $87,000 in community service donations, an additional $14,000 in debit rewards expenses and $31,000 in meals and entertainment.
|
Minimum
|
||||||||||||||||||||||||
To Be "Well-
|
||||||||||||||||||||||||
Minimum
|
Capitalized"
|
|||||||||||||||||||||||
For Capital
|
Under Prompt
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes
|
Corrective Provisions
|
||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of June 30, 2015
|
||||||||||||||||||||||||
Total Core Capital (to Risk-Weighted Assets)
|
$
|
65,169
|
16.75
|
%
|
$
|
31,122
|
8.00
|
%
|
$
|
38,902
|
10.00
|
%
|
||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
$
|
60,115
|
15.45
|
%
|
$
|
23,341
|
6.00
|
%
|
$
|
31,122
|
8.00
|
%
|
||||||||||||
Tier 1 Common Equity (to Risk-Weighted Assets)
|
$
|
60,115
|
15.45
|
%
|
$
|
17,506
|
4.50
|
%
|
$
|
25,286
|
6.50
|
%
|
||||||||||||
Tier 1 Capital (to Assets)
|
$
|
60,115
|
10.12
|
%
|
$
|
23,749
|
4.00
|
%
|
$
|
29,687
|
5.00
|
%
|
||||||||||||
As of December 31, 2014:
|
||||||||||||||||||||||||
Total Core Capital (to Risk-Weighted Assets)
|
$
|
63,831
|
16.60
|
%
|
$
|
30,754
|
8.00
|
%
|
$
|
38,443
|
10.00
|
%
|
||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
$
|
58,842
|
15.31
|
%
|
$
|
15,377
|
4.00
|
%
|
$
|
23,066
|
6.00
|
%
|
||||||||||||
Tier 1 Capital (to Assets)
|
$
|
58,842
|
10.55
|
%
|
$
|
22,302
|
4.00
|
%
|
$
|
27,878
|
5.00
|
%
|
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
(Dollars In thousands)
|
2015
|
2014
|
2014
|
|||||||||
Nonaccrual loans:
|
||||||||||||
Commercial loans
|
$
|
4,871
|
$
|
4,030
|
$
|
3,658
|
||||||
Consumer
|
320
|
324
|
316
|
|||||||||
Residential mortgage loans
|
1,088
|
1,902
|
2,475
|
|||||||||
Total nonaccrual loans
|
6,279
|
6,256
|
6,449
|
|||||||||
Total nonperforming loans
|
6,279
|
6,256
|
6,449
|
|||||||||
Foreclosed real estate
|
361
|
261
|
770
|
|||||||||
Total nonperforming assets
|
$
|
6,640
|
$
|
6,517
|
$
|
7,219
|
||||||
Troubled debt restructurings not included above
|
$
|
1,963
|
$
|
2,219
|
$
|
1,949
|
||||||
Nonperforming loans to total loans
|
1.56
|
%
|
1.61
|
%
|
1.80
|
%
|
||||||
Nonperforming assets to total assets
|
1.11
|
%
|
1.16
|
%
|
1.33
|
%
|
101 | The following materials from Pathfinder Bancorp, Inc. Form 10-Q for the quarter ended June 30, 2015, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Financial Condition, (iii) Consolidated Statements of Cash Flows, and (iv) related notes |
Certification of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|||
I, Thomas W. Schneider, certify that:
|
|||
1.
I have reviewed this Quarterly Report on Form 10-Q of Pathfinder Bancorp, Inc.;
|
|||
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|||
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|||
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|||
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting, to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|||
(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|||
(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|||
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
|
|||
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|||
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|||
August 13, 2015
|
/s/ Thomas W. Schneider
Thomas W. Schneider
President and Chief Executive Officer
|
Certification of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|||
I, James A. Dowd, certify that:
|
|||
1.
I have reviewed this Quarterly Report on Form 10-Q of Pathfinder Bancorp, Inc.;
|
|||
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|||
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|||
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|||
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting, to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
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(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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August 13, 2015
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/s/ James A. Dowd
James A. Dowd
Senior Vice President and Chief Financial Officer
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Certification pursuant to 18 U.S.C. �1350, as adopted pursuant to �906 of the Sarbanes-Oxley Act of 2002
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In connection with the Quarterly Report of Pathfinder Bancorp, Inc. (the "Company") on Form 10-Q for the period ended June 30, 2015 as filed with the Securities and Exchange Commission (the "Report"), the undersigned hereby certify, pursuant to 18 U.S.C. �1350, as adopted pursuant to �906 of the Sarbanes-Oxley Act of 2002, that:
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1.
The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.
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The purpose of this statement is solely to comply with Title 18, Chapter 63, Section 1350 of the United States Code, as amended by Section 906 of the Sarbanes-Oxley Act of 2002.
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August 13, 2015
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/s/ Thomas W. Schneider
Thomas W. Schneider
President and Chief Executive Officer
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August 13, 2015
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/s/ James A. Dowd
James A. Dowd
Senior Vice President and Chief Financial Officer
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