x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended
|
March 31, 2014
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
|
to
|
THE FIRST OF LONG ISLAND CORPORATION
|
(Exact name of registrant as specified in its charter)
|
New York
|
|
11-2672906
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
10 Glen Head Road, Glen Head, NY
|
|
11545
|
(Address of principal executive offices)
|
|
(Zip Code)
|
(516) 671-4900
|
(Registrant's telephone number, including area code)
|
Not Applicable
|
(Former name, former address and former fiscal year, if changed since last report)
|
|
Large accelerated filer
o
|
|
Accelerated filer
x
|
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
Title of Each Class
|
|
Outstanding at April 30, 2014
|
Common stock, $.10 par value per share
|
|
9,193,451
|
PART I.
|
FINANCIAL INFORMATION
|
|
ITEM 1.
|
Financial Statements
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
ITEM 2.
|
20
|
|
ITEM 3.
|
29
|
|
ITEM 4.
|
31
|
|
PART II.
|
OTHER INFORMATION
|
|
ITEM 1.
|
31
|
|
ITEM 1A.
|
31
|
|
ITEM 2.
|
31
|
|
ITEM 3.
|
31
|
|
ITEM 4.
|
31
|
|
ITEM 5.
|
31
|
|
ITEM 6.
|
31
|
|
|
33
|
|
March 31,
|
December 31,
|
||||||
(dollars in thousands)
|
2014
|
2013
|
||||||
|
|
|
||||||
Assets:
|
|
|
||||||
Cash and due from banks
|
$
|
47,133
|
$
|
35,034
|
||||
Temporary investments
|
547
|
463
|
||||||
Cash and cash equivalents
|
47,680
|
35,497
|
||||||
|
||||||||
Investment securities:
|
||||||||
Held-to-maturity, at amortized cost (fair value of $29,865 and $33,548)
|
28,559
|
32,104
|
||||||
Available-for-sale, at fair value
|
776,701
|
784,793
|
||||||
|
805,260
|
816,897
|
||||||
|
||||||||
Loans held-for-sale
|
400
|
900
|
||||||
|
||||||||
Loans:
|
||||||||
Commercial and industrial
|
69,700
|
71,818
|
||||||
Secured by real estate:
|
||||||||
Commercial mortgages
|
713,088
|
716,011
|
||||||
Residential mortgages
|
621,813
|
605,343
|
||||||
Home equity lines
|
77,610
|
77,581
|
||||||
Consumer
|
6,472
|
7,184
|
||||||
|
1,488,683
|
1,477,937
|
||||||
Allowance for loan losses
|
(20,555
|
)
|
(20,848
|
)
|
||||
|
1,468,128
|
1,457,089
|
||||||
|
||||||||
Restricted stock, at cost
|
15,819
|
19,869
|
||||||
Bank premises and equipment, net
|
25,328
|
24,463
|
||||||
Bank-owned life insurance
|
14,316
|
14,185
|
||||||
Pension plan assets, net
|
18,653
|
18,532
|
||||||
Other assets
|
11,531
|
12,460
|
||||||
|
$
|
2,407,115
|
$
|
2,399,892
|
||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Checking
|
$
|
632,839
|
$
|
599,114
|
||||
Savings, NOW and money market
|
933,514
|
917,974
|
||||||
Time, $100,000 and over
|
192,464
|
173,379
|
||||||
Time, other
|
109,187
|
91,661
|
||||||
|
1,868,004
|
1,782,128
|
||||||
|
||||||||
Short-term borrowings
|
9,778
|
110,463
|
||||||
Long-term debt
|
295,000
|
285,000
|
||||||
Accrued expenses and other liabilities
|
9,592
|
13,141
|
||||||
Deferred income taxes payable
|
6,679
|
2,604
|
||||||
|
2,189,053
|
2,193,336
|
||||||
|
||||||||
Stockholders' Equity:
|
||||||||
Common stock, par value $.10 per share: Authorized, 20,000,000 shares;
|
||||||||
Issued and outstanding, 9,193,251 and 9,141,767 shares |
919
|
914
|
||||||
Surplus
|
48,772
|
46,873
|
||||||
Retained earnings
|
160,678
|
157,107
|
||||||
|
210,369
|
204,894
|
||||||
Accumulated other comprehensive income, net of tax
|
7,693
|
1,662
|
||||||
|
218,062
|
206,556
|
||||||
|
$
|
2,407,115
|
$
|
2,399,892
|
|
Three Months Ended March 31,
|
|||||||
(dollars in thousands, except per share data)
|
2014
|
2013
|
||||||
|
|
|
||||||
Interest and dividend income:
|
|
|
||||||
Loans
|
$
|
14,059
|
$
|
12,332
|
||||
Investment securities:
|
||||||||
Taxable
|
2,372
|
2,629
|
||||||
Nontaxable
|
3,261
|
3,158
|
||||||
|
19,692
|
18,119
|
||||||
Interest expense:
|
||||||||
Savings, NOW and money market deposits
|
493
|
609
|
||||||
Time deposits
|
1,417
|
1,282
|
||||||
Short-term borrowings
|
50
|
67
|
||||||
Long-term debt
|
1,637
|
991
|
||||||
|
3,597
|
2,949
|
||||||
Net interest income
|
16,095
|
15,170
|
||||||
Provision for loan losses (credit)
|
(59
|
)
|
(192
|
)
|
||||
Net interest income after provision for loan losses (credit)
|
16,154
|
15,362
|
||||||
|
||||||||
Noninterest income:
|
||||||||
Investment Management Division income
|
500
|
411
|
||||||
Service charges on deposit accounts
|
803
|
709
|
||||||
Net gains on sales of securities
|
69
|
4
|
||||||
Other
|
475
|
550
|
||||||
|
1,847
|
1,674
|
||||||
Noninterest expense:
|
||||||||
Salaries
|
4,430
|
4,201
|
||||||
Employee benefits
|
1,213
|
1,412
|
||||||
Occupancy and equipment
|
2,237
|
1,998
|
||||||
Other
|
2,310
|
2,169
|
||||||
|
10,190
|
9,780
|
||||||
|
||||||||
Income before income taxes
|
7,811
|
7,256
|
||||||
Income tax expense
|
1,854
|
1,617
|
||||||
Net income
|
$
|
5,957
|
$
|
5,639
|
||||
|
||||||||
Weighted average:
|
||||||||
Common shares
|
9,167,351
|
9,039,035
|
||||||
Dilutive stock options and restricted stock units
|
96,155
|
69,301
|
||||||
|
9,263,506
|
9,108,336
|
||||||
Earnings per share:
|
||||||||
Basic
|
|
$.65
|
|
$.62
|
||||
Diluted
|
|
$.64
|
|
$.62
|
||||
|
||||||||
Cash dividends declared per share
|
|
$.26
|
|
$.25
|
|
Three Months Ended March 31,
|
|||||||
(dollars in thousands)
|
2014
|
2013
|
||||||
|
|
|
||||||
Net income
|
$
|
5,957
|
$
|
5,639
|
||||
|
||||||||
Other comprehensive income (loss):
|
||||||||
Change in net unrealized holding gains on available-for-sale securities
|
10,193
|
(7,403
|
)
|
|||||
Change in funded status of pension plan
|
4
|
163
|
||||||
Other comprehensive income (loss) before income taxes
|
10,197
|
(7,240
|
)
|
|||||
Income tax expense (benefit)
|
4,166
|
(2,874
|
)
|
|||||
Other comprehensive income (loss)
|
6,031
|
(4,366
|
)
|
|||||
Comprehensive Income
|
$
|
11,988
|
$
|
1,273
|
|
Three Months Ended March 31, 2014
|
|||||||||||||||||||||||
|
Common Stock
|
|
Retained
|
Accumulated
Other
Comprehensive
|
|
|||||||||||||||||||
(dollars in thousands)
|
Shares
|
Amount
|
Surplus
|
Earnings
|
Income
|
Total
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Balance, January 1, 2014
|
9,141,767
|
$
|
914
|
$
|
46,873
|
$
|
157,107
|
$
|
1,662
|
$
|
206,556
|
|||||||||||||
Net income
|
5,957
|
5,957
|
||||||||||||||||||||||
Other comprehensive income
|
6,031
|
6,031
|
||||||||||||||||||||||
Repurchase of common stock
|
(2,902
|
)
|
-
|
(121
|
)
|
(121
|
)
|
|||||||||||||||||
Common stock issued under stock compensation plans, including tax benefit
|
26,150
|
2
|
557
|
559
|
||||||||||||||||||||
Common stock issued under dividend reinvestment and stock purchase plan
|
28,236
|
3
|
1,114
|
1,117
|
||||||||||||||||||||
Stock-based compensation
|
349
|
349
|
||||||||||||||||||||||
Cash dividends declared
|
(2,386
|
)
|
(2,386
|
)
|
||||||||||||||||||||
Balance, March 31, 2014
|
9,193,251
|
$
|
919
|
$
|
48,772
|
$
|
160,678
|
$
|
7,693
|
$
|
218,062
|
|
Three Months Ended March 31, 2013
|
|||||||||||||||||||||||
|
Common Stock
|
Retained
|
Accumulated
Other
Comprehensive
|
|||||||||||||||||||||
(dollars in thousands)
|
Shares
|
Amount
|
Surplus
|
Earnings
|
Income
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Balance, January 1, 2013
|
9,001,686
|
$
|
900
|
$
|
42,643
|
$
|
145,087
|
$
|
16,740
|
$
|
205,370
|
|||||||||||||
Net income
|
5,639
|
5,639
|
||||||||||||||||||||||
Other comprehensive loss
|
(4,366
|
)
|
(4,366
|
)
|
||||||||||||||||||||
Repurchase of common stock
|
(3,211
|
)
|
(95
|
)
|
(95
|
)
|
||||||||||||||||||
Common stock issued under stock compensation plans, including tax benefit
|
40,838
|
4
|
716
|
720
|
||||||||||||||||||||
Common stock issued under dividend reinvestment and stock purchase plan
|
36,240
|
4
|
1,005
|
1,009
|
||||||||||||||||||||
Stock-based compensation
|
136
|
136
|
||||||||||||||||||||||
Cash dividends declared
|
(2,264
|
)
|
(2,264
|
)
|
||||||||||||||||||||
Balance, March 31, 2013
|
9,075,553
|
$
|
908
|
$
|
44,405
|
$
|
148,462
|
$
|
12,374
|
$
|
206,149
|
|
Three Months Ended March 31,
|
|||||||
(dollars in thousands)
|
2014
|
2013
|
||||||
|
|
|
||||||
Cash Flows From Operating Activities:
|
|
|
||||||
Net income
|
$
|
5,957
|
$
|
5,639
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for loan losses (credit)
|
(59
|
)
|
(192
|
)
|
||||
Deferred income tax provision (credit)
|
(91
|
)
|
187
|
|||||
Depreciation and amortization
|
746
|
711
|
||||||
Premium amortization on investment securities, net
|
1,836
|
2,233
|
||||||
Net gains on sales of securities
|
(69
|
)
|
(4
|
)
|
||||
Stock-based compensation expense
|
349
|
136
|
||||||
Accretion of cash surrender value on bank owned life insurance
|
(131
|
)
|
(129
|
)
|
||||
Decrease in prepaid FDIC assessment
|
-
|
238
|
||||||
Pension expense (credit)
|
(117
|
)
|
106
|
|||||
Decrease in other assets
|
929
|
949
|
||||||
Increase (decrease) in accrued expenses and other liabilities
|
(1,173
|
)
|
15
|
|||||
Net cash provided by operating activities
|
8,177
|
9,889
|
||||||
|
||||||||
Cash Flows From Investing Activities:
|
||||||||
Proceeds from sales of held-to-maturity securities
|
1,227
|
722
|
||||||
Proceeds from sales of available-for-sale securities
|
2,653
|
1,376
|
||||||
Proceeds from maturities and redemptions of investment securities:
|
||||||||
Held-to-maturity
|
2,496
|
2,456
|
||||||
Available-for-sale
|
23,787
|
36,868
|
||||||
Purchases of investment securities:
|
||||||||
Held-to-maturity
|
(100
|
)
|
(273
|
)
|
||||
Available-for-sale
|
(10,000
|
)
|
(81,887
|
)
|
||||
Proceeds from sale of loan held-for-sale
|
900
|
-
|
||||||
Net increase in loans
|
(11,380
|
)
|
(17,298
|
)
|
||||
Net decrease in restricted stock
|
4,050
|
90
|
||||||
Purchases of premises and equipment, net
|
(1,611
|
)
|
(770
|
)
|
||||
Net cash provided by (used in) investing activities
|
12,022
|
(58,716
|
)
|
|||||
|
||||||||
Cash Flows From Financing Activities:
|
||||||||
Net increase in deposits
|
85,876
|
32,428
|
||||||
Net increase (decrease) in short-term borrowings
|
(100,685
|
)
|
1,846
|
|||||
Proceeds from long-term debt
|
10,000
|
-
|
||||||
Proceeds from issuance of common stock under dividend reinvestment and stock purchase plan
|
1,117
|
1,009
|
||||||
Proceeds from exercise of stock options
|
416
|
669
|
||||||
Tax benefit from stock compensation plans
|
143
|
51
|
||||||
Repurchase and retirement of common stock
|
(121
|
)
|
(95
|
)
|
||||
Cash dividends paid
|
(4,762
|
)
|
(2,264
|
)
|
||||
Net cash provided by (used in) financing activities
|
(8,016
|
)
|
33,644
|
|||||
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
12,183
|
(15,183
|
)
|
|||||
Cash and cash equivalents, beginning of year
|
35,497
|
42,191
|
||||||
Cash and cash equivalents, end of period
|
$
|
47,680
|
$
|
27,008
|
||||
|
||||||||
Supplemental Information:
|
||||||||
Cash paid for:
|
||||||||
Interest
|
$
|
4,419
|
$
|
2,522
|
||||
Income taxes
|
444
|
124
|
||||||
Noncash investing and financing activities:
|
||||||||
Loans transferred from portfolio to other real estate owned and held-for-sale
|
400
|
425
|
|
Three Months Ended March 31,
|
|||||||
|
2014
|
2013
|
||||||
|
|
|||||||
Change in net unrealized holding gains on available-for-sale securities:
|
|
|
||||||
Change arising during period
|
$
|
10,196
|
$
|
(7,416
|
)
|
|||
Reclassification adjustment for (gains) losses included in net income (1)
|
(3
|
)
|
13
|
|||||
Change in net unrealized gains on available-for-sale securities
|
10,193
|
(7,403
|
)
|
|||||
Tax effect
|
4,180
|
(2,939
|
)
|
|||||
|
6,013
|
(4,464
|
)
|
|||||
|
||||||||
Change in funded status of pension plan:
|
||||||||
Amortization of prior service cost included in pension expense (2)
|
4
|
6
|
||||||
Amortization of net actuarial loss included in pension expense (2)
|
-
|
157
|
||||||
|
4
|
163
|
||||||
Tax effect
|
(14
|
)
|
65
|
|||||
|
18
|
98
|
||||||
|
||||||||
Other comprehensive income (loss)
|
$
|
6,031
|
$
|
(4,366
|
)
|
|
|
Current
|
|
|||||||||
|
Balance
|
Period
|
Balance
|
|||||||||
|
12/31/13
|
Change
|
3/31/14
|
|||||||||
|
(in thousands)
|
|||||||||||
Unrealized holding gains on available-for-sale securities
|
$
|
2,783
|
$
|
6,013
|
$
|
8,796
|
||||||
Unrealized actuarial loss and prior service cost on pension plan
|
(1,121
|
)
|
18
|
(1,103
|
)
|
|||||||
Accumulated other comprehensive income, net of tax
|
$
|
1,662
|
$
|
6,031
|
$
|
7,693
|
|
March 31, 2014
|
|||||||||||||||
|
Amortized
Cost
|
Gross
Unrealized
|
Gross
Unrealized
|
Fair
Value
|
||||||||||||
Held-to-Maturity Securities:
|
|
|||||||||||||||
State and municipals
|
$
|
25,845
|
$
|
1,060
|
$
|
-
|
$
|
26,905
|
||||||||
Pass-through mortgage securities
|
1,327
|
137
|
-
|
1,464
|
||||||||||||
Collateralized mortgage obligations
|
1,387
|
109
|
-
|
1,496
|
||||||||||||
|
$
|
28,559
|
$
|
1,306
|
$
|
-
|
$
|
29,865
|
||||||||
Available-for-Sale Securities:
|
||||||||||||||||
State and municipals
|
$
|
360,783
|
$
|
12,798
|
$
|
(2,170
|
)
|
$
|
371,411
|
|||||||
Pass-through mortgage securities
|
148,495
|
1,262
|
(2,695
|
)
|
147,062
|
|||||||||||
Collateralized mortgage obligations
|
252,613
|
6,380
|
(765
|
)
|
258,228
|
|||||||||||
|
$
|
761,891
|
$
|
20,440
|
$
|
(5,630
|
)
|
$
|
776,701
|
|||||||
|
||||||||||||||||
|
December 31, 2013
|
|||||||||||||||
|
Amortized
Cost
|
Gross
Unrealized
|
Gross
Unrealized
|
Fair
Value
|
||||||||||||
Held-to-Maturity Securities:
|
(in thousands) | |||||||||||||||
State and municipals
|
$
|
27,968
|
$
|
1,087
|
$
|
-
|
$
|
29,055
|
||||||||
Pass-through mortgage securities
|
1,878
|
181
|
-
|
2,059
|
||||||||||||
Collateralized mortgage obligations
|
2,258
|
176
|
-
|
2,434
|
||||||||||||
|
$
|
32,104
|
$
|
1,444
|
$
|
-
|
$
|
33,548
|
||||||||
Available-for-Sale Securities:
|
||||||||||||||||
State and municipals
|
$
|
353,333
|
$
|
8,250
|
$
|
(5,030
|
)
|
$
|
356,553
|
|||||||
Pass-through mortgage securities
|
154,760
|
1,040
|
(3,982
|
)
|
151,818
|
|||||||||||
Collateralized mortgage obligations
|
272,083
|
6,190
|
(1,851
|
)
|
276,422
|
|||||||||||
|
$
|
780,176
|
$
|
15,480
|
$
|
(10,863
|
)
|
$
|
784,793
|
|
March 31, 2014
|
|||||||||||||||||||||||
|
Less than
12 Months
|
12 Months
or More
|
Total
|
|||||||||||||||||||||
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||
|
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||||||
|
(in thousands) | |||||||||||||||||||||||
State and municipals
|
$
|
66,786
|
$
|
(1,663
|
)
|
$
|
12,276
|
$
|
(507
|
)
|
$
|
79,062
|
$
|
(2,170
|
)
|
|||||||||
Pass-through mortgage securities
|
86,212
|
(1,562
|
)
|
37,561
|
(1,133
|
)
|
123,773
|
(2,695
|
)
|
|||||||||||||||
Collateralized mortgage obligations
|
29,731
|
(322
|
)
|
17,712
|
(443
|
)
|
47,443
|
(765
|
)
|
|||||||||||||||
Total temporarily impaired
|
$
|
182,729
|
$
|
(3,547
|
)
|
$
|
67,549
|
$
|
(2,083
|
)
|
$
|
250,278
|
$
|
(5,630
|
)
|
|||||||||
|
||||||||||||||||||||||||
|
December 31, 2013
|
|||||||||||||||||||||||
|
Less than
12 Months
|
12 Months
or More
|
Total
|
|||||||||||||||||||||
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||
|
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||||||
|
(in thousands) | |||||||||||||||||||||||
State and municipals
|
$
|
103,010
|
$
|
(4,549
|
)
|
$
|
7,729
|
$
|
(481
|
)
|
$
|
110,739
|
$
|
(5,030
|
)
|
|||||||||
Pass-through mortgage securities
|
89,092
|
(2,279
|
)
|
38,237
|
(1,703
|
)
|
127,329
|
(3,982
|
)
|
|||||||||||||||
Collateralized mortgage obligations
|
36,652
|
(652
|
)
|
54,660
|
(1,199
|
)
|
91,312
|
(1,851
|
)
|
|||||||||||||||
Total temporarily impaired
|
$
|
228,754
|
$
|
(7,480
|
)
|
$
|
100,626
|
$
|
(3,383
|
)
|
$
|
329,380
|
$
|
(10,863
|
)
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2014
|
2013
|
||||||
|
(in thousands)
|
|||||||
Proceeds
|
$
|
2,653
|
$
|
1,376
|
||||
|
||||||||
Gross gains
|
$
|
19
|
$
|
36
|
||||
Gross losses
|
(16
|
)
|
(49
|
)
|
||||
Net gain (loss)
|
$
|
3
|
$
|
(13
|
)
|
|
Amortized Cost
|
Fair Value
|
||||||
Held-to-Maturity Securities:
|
|
|||||||
Within one year
|
$
|
4,238
|
$
|
4,289
|
||||
After 1 through 5 years
|
12,514
|
13,087
|
||||||
After 5 through 10 years
|
8,260
|
8,660
|
||||||
After 10 years
|
833
|
869
|
||||||
Mortgage-backed securities
|
2,714
|
2,960
|
||||||
|
$
|
28,559
|
$
|
29,865
|
||||
Available-for-Sale Securities:
|
||||||||
Within one year
|
$
|
6,531
|
$
|
6,688
|
||||
After 1 through 5 years
|
10,370
|
10,660
|
||||||
After 5 through 10 years
|
87,316
|
87,834
|
||||||
After 10 years
|
256,566
|
266,229
|
||||||
Mortgage-backed securities
|
401,108
|
405,290
|
||||||
|
$
|
761,891
|
$
|
776,701
|
|
2014
|
|||||||||||||||||||||||||||||||
|
|
Commercial Mortgages
|
Residential Mortgages
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
Revolving
|
|
|
||||||||||||||||||||||||
|
Commercial
|
|
|
Owner
|
Closed
|
Home
|
|
|
||||||||||||||||||||||||
|
& Industrial
|
Multifamily
|
Other
|
Occupied
|
End
|
Equity
|
Consumer
|
Total
|
||||||||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
30
|
$
|
340
|
$
|
38
|
$
|
655
|
$
|
1,146
|
$
|
-
|
$
|
-
|
$
|
2,209
|
||||||||||||||||
Collectively evaluated for impairment
|
69,670
|
452,827
|
155,163
|
104,065
|
620,667
|
77,610
|
6,472
|
1,486,474
|
||||||||||||||||||||||||
|
$
|
69,700
|
$
|
453,167
|
$
|
155,201
|
$
|
104,720
|
$
|
621,813
|
$
|
77,610
|
$
|
6,472
|
$
|
1,488,683
|
||||||||||||||||
Allocation of allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
1
|
$
|
-
|
$
|
-
|
$
|
47
|
$
|
78
|
$
|
-
|
$
|
-
|
$
|
126
|
||||||||||||||||
Collectively evaluated for impairment
|
760
|
6,938
|
1,492
|
1,269
|
8,639
|
1,203
|
128
|
20,429
|
||||||||||||||||||||||||
|
$
|
761
|
$
|
6,938
|
$
|
1,492
|
$
|
1,316
|
$
|
8,717
|
$
|
1,203
|
$
|
128
|
$
|
20,555
|
||||||||||||||||
Activity in allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Beginning balance at 1/1/14
|
$
|
808
|
$
|
7,348
|
$
|
1,501
|
$
|
1,191
|
$
|
8,607
|
$
|
1,240
|
$
|
153
|
$
|
20,848
|
||||||||||||||||
Chargeoffs
|
-
|
-
|
-
|
-
|
121
|
114
|
-
|
235
|
||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
1
|
||||||||||||||||||||||||
Provision for loan losses (credit)
|
(47
|
)
|
(410
|
)
|
(9
|
)
|
125
|
231
|
77
|
(26
|
)
|
(59
|
)
|
|||||||||||||||||||
Ending balance at 3/31/14
|
$
|
761
|
$
|
6,938
|
$
|
1,492
|
$
|
1,316
|
$
|
8,717
|
$
|
1,203
|
$
|
128
|
$
|
20,555
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
2013
|
|||||||||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
34
|
$
|
347
|
$
|
3,037
|
$
|
657
|
$
|
1,539
|
$
|
211
|
$
|
-
|
$
|
5,825
|
||||||||||||||||
Collectively evaluated for impairment
|
71,784
|
469,139
|
159,837
|
82,994
|
603,804
|
77,370
|
7,184
|
1,472,112
|
||||||||||||||||||||||||
|
$
|
71,818
|
$
|
469,486
|
$
|
162,874
|
$
|
83,651
|
$
|
605,343
|
$
|
77,581
|
$
|
7,184
|
$
|
1,477,937
|
||||||||||||||||
Allocation of allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
1
|
$
|
-
|
$
|
-
|
$
|
127
|
$
|
149
|
$
|
-
|
$
|
-
|
$
|
277
|
||||||||||||||||
Collectively evaluated for impairment
|
807
|
7,348
|
1,501
|
1,064
|
8,458
|
1,240
|
153
|
20,571
|
||||||||||||||||||||||||
|
$
|
808
|
$
|
7,348
|
$
|
1,501
|
$
|
1,191
|
$
|
8,607
|
$
|
1,240
|
$
|
153
|
$
|
20,848
|
||||||||||||||||
Activity in allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Beginning balance at 1/1/13
|
$
|
834
|
$
|
5,342
|
$
|
1,978
|
$
|
1,163
|
$
|
7,729
|
$
|
1,453
|
$
|
125
|
$
|
18,624
|
||||||||||||||||
Chargeoffs
|
-
|
-
|
-
|
-
|
-
|
-
|
3
|
3
|
||||||||||||||||||||||||
Recoveries
|
18
|
-
|
113
|
-
|
-
|
-
|
4
|
135
|
||||||||||||||||||||||||
Provision for loan losses (credit)
|
89
|
140
|
(324
|
)
|
(11
|
)
|
(298
|
)
|
187
|
25
|
(192
|
)
|
||||||||||||||||||||
Ending balance at 3/31/13
|
$
|
941
|
$
|
5,482
|
$
|
1,767
|
$
|
1,152
|
$
|
7,431
|
$
|
1,640
|
$
|
151
|
$
|
18,564
|
|
|
|
|
Three Months Ended
|
||||||||||||||||
|
March 31, 2014
|
March 31, 2014
|
||||||||||||||||||
|
|
Unpaid
|
|
Average
|
Interest
|
|||||||||||||||
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|||||||||||||||
|
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
|||||||||||||||
|
(in thousands)
|
|||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|||||||||||||||
Commercial mortgages:
|
|
|
|
|
|
|||||||||||||||
Multifamily
|
$
|
340
|
$
|
400
|
$
|
-
|
$
|
342
|
$
|
-
|
||||||||||
Other
|
38
|
38
|
-
|
38
|
1
|
|||||||||||||||
Owner-occupied
|
406
|
411
|
-
|
407
|
-
|
|||||||||||||||
Residential mortgages - closed end
|
240
|
283
|
-
|
243
|
-
|
|||||||||||||||
|
||||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
30
|
30
|
1
|
32
|
-
|
|||||||||||||||
Commercial mortgages - owner-occupied
|
249
|
254
|
47
|
249
|
-
|
|||||||||||||||
Residential mortgages - closed end
|
906
|
917
|
78
|
912
|
6
|
|||||||||||||||
|
||||||||||||||||||||
Total:
|
||||||||||||||||||||
Commercial and industrial
|
30
|
30
|
1
|
32
|
-
|
|||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||
Multifamily
|
340
|
400
|
-
|
342
|
-
|
|||||||||||||||
Other
|
38
|
38
|
-
|
38
|
1
|
|||||||||||||||
Owner-occupied
|
655
|
665
|
47
|
656
|
-
|
|||||||||||||||
Residential mortgages - closed end
|
1,146
|
1,200
|
78
|
1,155
|
6
|
|||||||||||||||
|
$
|
2,209
|
$
|
2,333
|
$
|
126
|
$
|
2,223
|
$
|
7
|
||||||||||
|
||||||||||||||||||||
|
Three Months Ended
|
|||||||||||||||||||
|
December 31, 2013
|
March 31, 2013
|
||||||||||||||||||
|
Recorded
Investment
|
Unpaid
Principal
|
Related
Allowance
|
Average
Recorded
|
Interest
Income
|
|||||||||||||||
|
(in thousands)
|
|||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
46
|
$
|
1
|
||||||||||
Commercial mortgages:
|
||||||||||||||||||||
Multifamily
|
347
|
400
|
-
|
1,101
|
10
|
|||||||||||||||
Other
|
3,037
|
3,084
|
-
|
1,764
|
25
|
|||||||||||||||
Owner-occupied
|
-
|
-
|
-
|
174
|
-
|
|||||||||||||||
Residential mortgages:
|
||||||||||||||||||||
Closed end
|
580
|
617
|
-
|
577
|
-
|
|||||||||||||||
Revolving home equity
|
211
|
213
|
-
|
380
|
-
|
|||||||||||||||
|
||||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
34
|
34
|
1
|
-
|
-
|
|||||||||||||||
Commercial mortgages - owner-occupied
|
657
|
666
|
127
|
-
|
-
|
|||||||||||||||
Residential mortgages - closed end
|
959
|
969
|
149
|
3,840
|
21
|
|||||||||||||||
|
||||||||||||||||||||
Total:
|
||||||||||||||||||||
Commercial and industrial
|
34
|
34
|
1
|
46
|
1
|
|||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||
Multifamily
|
347
|
400
|
-
|
1,101
|
10
|
|||||||||||||||
Other
|
3,037
|
3,084
|
-
|
1,764
|
25
|
|||||||||||||||
Owner-occupied
|
657
|
666
|
127
|
174
|
-
|
|||||||||||||||
Residential mortgages:
|
||||||||||||||||||||
Closed end
|
1,539
|
1,586
|
149
|
4,417
|
21
|
|||||||||||||||
Revolving home equity
|
211
|
213
|
-
|
380
|
-
|
|||||||||||||||
|
$
|
5,825
|
$
|
5,983
|
$
|
277
|
$
|
7,882
|
$
|
57
|
|
March 31, 2014
|
|||||||||||||||||||||||||||
|
30-59 Days
|
60-89 Days
|
Past Due
90 Days or
More and
|
Nonaccrual
|
Total Past
Due Loans &
Nonaccrual
|
|
Total
|
|||||||||||||||||||||
|
Past Due
|
Past Due
|
Still Accruing
|
Loans
|
Loans
|
Current
|
Loans
|
|||||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||
Commercial and industrial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
69,700
|
$
|
69,700
|
||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||||||
Multifamily
|
-
|
-
|
-
|
339
|
339
|
452,828
|
453,167
|
|||||||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
-
|
155,201
|
155,201
|
|||||||||||||||||||||
Owner-occupied
|
-
|
-
|
-
|
655
|
655
|
104,065
|
104,720
|
|||||||||||||||||||||
Residential mortgages:
|
||||||||||||||||||||||||||||
Closed end
|
1,243
|
-
|
-
|
683
|
1,926
|
619,887
|
621,813
|
|||||||||||||||||||||
Revolving home equity
|
380
|
-
|
-
|
-
|
380
|
77,230
|
77,610
|
|||||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
6,472
|
6,472
|
|||||||||||||||||||||
|
$
|
1,623
|
$
|
-
|
$
|
-
|
$
|
1,677
|
$
|
3,300
|
$
|
1,485,383
|
$
|
1,488,683
|
||||||||||||||
|
||||||||||||||||||||||||||||
|
December 31, 2013
|
|||||||||||||||||||||||||||
|
30-59 Days
|
60-89 Days
|
Past Due
90 Days or
More and
|
Nonaccrual
|
Total Past
Due Loans &
Nonaccrual
|
Total
|
||||||||||||||||||||||
|
Past Due
|
Past Due
|
Still Accruing
|
Loans
|
Loans
|
Current
|
Loans
|
|||||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||
Commercial and industrial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
71,818
|
$
|
71,818
|
||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||||||
Multifamily
|
-
|
-
|
-
|
347
|
347
|
469,139
|
469,486
|
|||||||||||||||||||||
Other
|
-
|
-
|
-
|
1,311
|
1,311
|
161,563
|
162,874
|
|||||||||||||||||||||
Owner-occupied
|
-
|
-
|
-
|
657
|
657
|
82,994
|
83,651
|
|||||||||||||||||||||
Residential mortgages:
|
||||||||||||||||||||||||||||
Closed end
|
67
|
-
|
-
|
1,070
|
1,137
|
604,206
|
605,343
|
|||||||||||||||||||||
Revolving home equity
|
112
|
-
|
-
|
211
|
323
|
77,258
|
77,581
|
|||||||||||||||||||||
Consumer
|
5
|
-
|
-
|
-
|
5
|
7,179
|
7,184
|
|||||||||||||||||||||
|
$
|
184
|
$
|
-
|
$
|
-
|
$
|
3,596
|
$
|
3,780
|
$
|
1,474,157
|
$
|
1,477,937
|
Internally
Assigned
Risk Rating
|
|
|
|
1 – 2
|
Cash flow is of high quality and stable. Borrower has very good liquidity and ready access to traditional sources of credit. This category also includes loans to borrowers secured by cash and/or marketable securities within approved margin requirements.
|
3 – 4
|
Cash flow quality is strong, but shows some variability. Borrower has good liquidity and asset quality. Borrower has access to traditional sources of credit with minimal restrictions.
|
5 – 6
|
Cash flow quality is acceptable but shows some variability. Liquidity varies with operating cycle and assets provide an adequate margin of protection. Borrower has access to traditional sources of credit, but generally on a secured basis.
|
7
|
Watch - Cash flow has a high degree of variability and subject to economic downturns. Liquidity is strained and the ability of the borrower to access traditional sources of credit is diminished.
|
8
|
Special Mention - The borrower has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Bank’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Bank to risk sufficient to warrant adverse classification.
|
9
|
Substandard - Loans are inadequately protected by the current sound worth and paying capacity of the borrower or the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
|
10
|
Doubtful - Loans have all the inherent weaknesses of those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.
|
Internally
Assigned
Risk Rating
|
|
1
|
Credit score is equal to or greater than 680.
|
2
|
Credit score is 635 to 679.
|
3
|
Credit score is below 635 or the loan has been classified, criticized or placed on watch.
|
|
March 31, 2014
|
|||||||||||||||||||||||||||||||
|
Internally Assigned Risk Rating
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
Special
|
|
|
|
||||||||||||||||||||||||
|
1 - 2 | 3 - 4 | 5 - 6 |
Watch
|
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Commercial and industrial
|
$
|
4,283
|
$
|
2,261
|
$
|
61,927
|
$
|
722
|
$
|
477
|
$
|
30
|
$
|
-
|
$
|
69,700
|
||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||||||||||
Multifamily
|
-
|
30,599
|
412,000
|
10,229
|
-
|
339
|
-
|
453,167
|
||||||||||||||||||||||||
Other
|
-
|
7,617
|
143,428
|
1,157
|
2,961
|
38
|
155,201
|
|||||||||||||||||||||||||
Owner-occupied
|
-
|
3,650
|
93,071
|
5,029
|
-
|
2,970
|
-
|
104,720
|
||||||||||||||||||||||||
|
$
|
4,283
|
$
|
44,127
|
$
|
710,426
|
$
|
17,137
|
$
|
3,438
|
$
|
3,377
|
$
|
-
|
$
|
782,788
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
December 31, 2013
|
|||||||||||||||||||||||||||||||
|
Internally Assigned Risk Rating
|
|||||||||||||||||||||||||||||||
|
Special
|
|||||||||||||||||||||||||||||||
|
1 - 2 | 3 - 4 | 5 - 6 |
Watch
|
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Commercial and industrial
|
$
|
6,021
|
$
|
6,208
|
$
|
58,120
|
$
|
280
|
$
|
1,155
|
$
|
34
|
$
|
-
|
$
|
71,818
|
||||||||||||||||
Commercial mortgages:
|
||||||||||||||||||||||||||||||||
Multifamily
|
-
|
31,211
|
428,459
|
9,470
|
-
|
346
|
-
|
469,486
|
||||||||||||||||||||||||
Other
|
-
|
10,424
|
148,812
|
601
|
-
|
3,037
|
-
|
162,874
|
||||||||||||||||||||||||
Owner-occupied
|
-
|
3,871
|
71,810
|
4,161
|
837
|
2,972
|
-
|
83,651
|
||||||||||||||||||||||||
|
$
|
6,021
|
$
|
51,714
|
$
|
707,201
|
$
|
14,512
|
$
|
1,992
|
$
|
6,389
|
$
|
-
|
$
|
787,829
|
|
March 31, 2014
|
|||||||||||||||||||||||||||||||
|
Internally Assigned Risk Rating
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
Special
|
|
|
|
||||||||||||||||||||||||
|
1 | 2 | 3 |
Watch
|
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Residential mortgages:
|
|
|
|
|
|
|||||||||||||||||||||||||||
Closed end
|
$
|
567,103
|
$
|
35,098
|
$
|
16,710
|
$
|
1,756
|
$
|
-
|
$
|
1,146
|
$
|
-
|
$
|
621,813
|
||||||||||||||||
Revolving home equity
|
64,388
|
7,642
|
5,580
|
-
|
-
|
-
|
-
|
77,610
|
||||||||||||||||||||||||
Consumer
|
5,411
|
551
|
197
|
-
|
-
|
-
|
-
|
6,159
|
||||||||||||||||||||||||
|
$
|
636,902
|
$
|
43,291
|
$
|
22,487
|
$
|
1,756
|
$
|
-
|
$
|
1,146
|
$
|
-
|
$
|
705,582
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
December 31, 2013
|
|||||||||||||||||||||||||||||||
|
Internally Assigned Risk Rating
|
|||||||||||||||||||||||||||||||
|
Special
|
|||||||||||||||||||||||||||||||
|
1 | 2 | 3 |
Watch
|
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||||||
Residential mortgages:
|
||||||||||||||||||||||||||||||||
Closed end
|
$
|
554,579
|
$
|
30,530
|
$
|
16,916
|
$
|
1,779
|
$
|
-
|
$
|
1,539
|
$
|
-
|
$
|
605,343
|
||||||||||||||||
Revolving home equity
|
64,135
|
7,324
|
5,559
|
352
|
-
|
211
|
-
|
77,581
|
||||||||||||||||||||||||
Consumer
|
5,068
|
520
|
214
|
-
|
-
|
-
|
-
|
5,802
|
||||||||||||||||||||||||
|
$
|
623,782
|
$
|
38,374
|
$
|
22,689
|
$
|
2,131
|
$
|
-
|
$
|
1,750
|
$
|
-
|
$
|
688,726
|
|
Number of
Options
|
Weighted-
Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term (yrs.)
|
Aggregate
Intrinsic
Value
(in thousands)
|
||||||||||||
Outstanding at January 1, 2014
|
232,534
|
$
|
23.46
|
|
|
|||||||||||
Exercised
|
(17,874
|
)
|
23.25
|
|
|
|||||||||||
Forfeited or expired
|
-
|
-
|
|
|
||||||||||||
Outstanding at March 31, 2014
|
214,660
|
$
|
23.48
|
4.34
|
$
|
3,677
|
||||||||||
Exercisable at March 31, 2014
|
188,064
|
$
|
22.88
|
4.04
|
$
|
3,335
|
|
Number of
RSUs
|
Weighted-
Average
Grant-Date
Fair Value
|
Weighted-
Average
Remaining
Contractual
Term (yrs.)
|
Aggregate
Intrinsic
Value
(in thousands)
|
||||||||||||
Outstanding at January 1, 2014
|
64,610
|
$
|
25.54
|
|
|
|||||||||||
Granted
|
33,424
|
39.16
|
|
|
||||||||||||
Converted
|
(8,276
|
)
|
26.40
|
|
|
|||||||||||
Forfeited
|
-
|
-
|
|
|
||||||||||||
Outstanding at March 31, 2014
|
89,758
|
$
|
30.53
|
2.1
|
$
|
3,645
|
||||||||||
Vested and Convertible at March 31, 2014
|
-
|
$
|
-
|
-
|
$
|
-
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2014
|
2013
|
||||||
|
(in thousands)
|
|||||||
Service cost, net of plan participant contributions
|
$
|
279
|
$
|
303
|
||||
Interest cost
|
352
|
304
|
||||||
Expected return on plan assets
|
(752
|
)
|
(664
|
)
|
||||
Amortization of prior service cost
|
4
|
6
|
||||||
Amortization of net actuarial loss
|
-
|
157
|
||||||
Net pension cost
|
$
|
(117
|
)
|
$
|
106
|
|
|
Fair Value Measurements Using:
|
||||||||||||||
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
March 31, 2014:
|
|
|
|
|
||||||||||||
Residential mortgages held-for-sale:
|
|
|
|
|
||||||||||||
Closed end
|
$
|
305
|
$
|
-
|
$
|
-
|
$
|
305
|
||||||||
Revolving home equity
|
95
|
-
|
-
|
95
|
||||||||||||
|
$
|
400
|
$
|
-
|
$
|
-
|
$
|
400
|
||||||||
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Commercial mortgages - owner-occupied
|
$
|
202
|
$
|
-
|
$
|
-
|
$
|
202
|
||||||||
Residential mortgages - closed end
|
176
|
-
|
-
|
176
|
||||||||||||
|
$
|
378
|
$
|
-
|
$
|
-
|
$
|
378
|
||||||||
|
||||||||||||||||
December 31, 2013:
|
||||||||||||||||
Residential mortgages held-for-sale:
|
||||||||||||||||
Closed end
|
$
|
900
|
$
|
-
|
$
|
-
|
$
|
900
|
||||||||
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Commercial mortgages - owner-occupied
|
$
|
530
|
$
|
-
|
$
|
-
|
$
|
530
|
||||||||
Residential mortgages - closed end
|
278
|
-
|
-
|
278
|
||||||||||||
|
$
|
808
|
$
|
-
|
$
|
-
|
$
|
808
|
Level of
|
March 31, 2014
|
December 31, 2013
|
|||||||||||||||
Fair Value
Hierarchy
|
Carrying
Amount
|
Fair Value
|
Carrying
Amount
|
Fair Value
|
|||||||||||||
(in thousands)
|
|||||||||||||||||
Financial Assets:
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
Level 1
|
$
|
47,680
|
$
|
47,680
|
$
|
35,497
|
$
|
35,497
|
||||||||
Held-to-maturity securities
|
Level 2
|
27,943
|
29,249
|
31,315
|
32,759
|
||||||||||||
Held-to-maturity securities
|
Level 3
|
616
|
616
|
789
|
789
|
||||||||||||
Loans
|
Level 3
|
1,467,750
|
1,456,582
|
1,456,281
|
1,447,199
|
||||||||||||
Restricted stock
|
Level 1
|
15,819
|
15,819
|
19,869
|
19,869
|
||||||||||||
Accrued interest receivable:
|
|
||||||||||||||||
Investment securities
|
Level 2
|
4,941
|
4,941
|
4,766
|
4,766
|
||||||||||||
Loans
|
Level 3
|
3,905
|
3,905
|
3,819
|
3,819
|
||||||||||||
|
|
||||||||||||||||
Financial Liabilities:
|
|
||||||||||||||||
Checking deposits
|
Level 1
|
632,839
|
632,839
|
599,114
|
599,114
|
||||||||||||
Savings, NOW and money market deposits |
Level 1
|
933,514
|
933,514 | 917,974 | 917,974 | ||||||||||||
Time deposits
|
Level 2
|
301,651
|
307,088
|
265,040
|
270,545
|
||||||||||||
Short-term borrowings
|
Level 1
|
9,778
|
9,778
|
110,463
|
110,463
|
||||||||||||
Long-term debt
|
Level 2
|
295,000
|
295,196
|
285,000
|
285,502
|
||||||||||||
Accrued interest payable:
|
|
||||||||||||||||
Checking, savings, NOW and money market deposits
|
Level 1
|
26
|
26
|
33
|
33
|
||||||||||||
Time deposits
|
Level 2
|
4,959
|
4,959
|
5,802
|
5,802
|
||||||||||||
Short-term borrowings
|
Level 1
|
-
|
-
|
1
|
1
|
||||||||||||
Long-term debt
|
Level 2
|
600
|
600
|
571
|
571
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
|
2014
|
2013
|
||||||||||||||||||||||
|
Average
|
Interest/
|
Average
|
Average
|
Interest/
|
Average
|
||||||||||||||||||
|
Balance
|
Dividends
|
Rate
|
Balance
|
Dividends
|
Rate
|
||||||||||||||||||
Assets
|
(dollars in thousands)
|
|||||||||||||||||||||||
Interest-bearing bank balances
|
$
|
16,338
|
$
|
8
|
.20
|
%
|
$
|
11,274
|
$
|
6
|
.22
|
%
|
||||||||||||
Investment Securities:
|
||||||||||||||||||||||||
Taxable
|
440,186
|
2,364
|
2.15
|
495,964
|
2,623
|
2.12
|
||||||||||||||||||
Nontaxable
(1)
|
390,913
|
4,941
|
5.06
|
374,766
|
4,785
|
5.11
|
||||||||||||||||||
Loans
(1) (2)
|
1,481,098
|
14,063
|
3.80
|
1,146,630
|
12,338
|
4.31
|
||||||||||||||||||
Total interest-earning assets
|
2,328,535
|
21,376
|
3.67
|
2,028,634
|
19,752
|
3.90
|
||||||||||||||||||
Allowance for loan losses
|
(21,197
|
)
|
(18,982
|
)
|
||||||||||||||||||||
Net interest-earning assets
|
2,307,338
|
2,009,652
|
||||||||||||||||||||||
Cash and due from banks
|
26,885
|
28,284
|
||||||||||||||||||||||
Premises and equipment, net
|
25,098
|
24,690
|
||||||||||||||||||||||
Other assets
|
42,746
|
36,061
|
||||||||||||||||||||||
|
$
|
2,402,067
|
$
|
2,098,687
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||
Savings, NOW & money market deposits
|
$
|
931,416
|
493
|
.21
|
$
|
878,125
|
609
|
.28
|
||||||||||||||||
Time deposits
|
282,362
|
1,417
|
2.04
|
253,761
|
1,282
|
2.05
|
||||||||||||||||||
Total interest-bearing deposits
|
1,213,778
|
1,910
|
.64
|
1,131,886
|
1,891
|
.68
|
||||||||||||||||||
Short-term borrowings
|
58,129
|
50
|
.35
|
80,420
|
67
|
.34
|
||||||||||||||||||
Long-term debt
|
292,444
|
1,637
|
2.27
|
145,000
|
991
|
2.77
|
||||||||||||||||||
Total interest-bearing liabilities
|
1,564,351
|
3,597
|
.93
|
1,357,306
|
2,949
|
.88
|
||||||||||||||||||
Checking deposits
|
608,138
|
514,177
|
||||||||||||||||||||||
Other liabilities
|
16,929
|
21,122
|
||||||||||||||||||||||
|
2,189,418
|
1,892,605
|
||||||||||||||||||||||
Stockholders' equity
|
212,649
|
206,082
|
||||||||||||||||||||||
|
$
|
2,402,067
|
$
|
2,098,687
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Net interest income
(1)
|
$
|
17,779
|
$
|
16,803
|
||||||||||||||||||||
Net interest spread
(1)
|
2.74
|
%
|
3.02
|
%
|
||||||||||||||||||||
Net interest margin
(1)
|
3.05
|
%
|
3.31
|
%
|
(1)
|
Tax-equivalent basis. Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation's investment in tax-exempt loans and investment securities had been made in loans and investment securities subject to Federal income taxes yielding the same after-tax income. The tax-equivalent amount of $1.00 of nontaxable income was $1.52 in each period presented, based on a Federal income tax rate of 34%.
|
(2)
|
For the purpose of these computations, nonaccruing loans are included in the daily average loan amounts outstanding.
|
|
Three Months Ended March 31,
|
|||||||||||||||
|
2014 Versus 2013
|
|||||||||||||||
|
Increase (decrease) due to changes in:
|
|||||||||||||||
|
|
|
Rate/
|
Net
|
||||||||||||
|
Volume
|
Rate
|
Volume
(1)
|
Change
|
||||||||||||
|
(in thousands)
|
|||||||||||||||
Interest Income:
|
|
|
|
|
||||||||||||
Interest-bearing bank balances
|
$
|
3
|
$
|
(1
|
)
|
$
|
-
|
$
|
2
|
|||||||
Investment securities:
|
||||||||||||||||
Taxable
|
(295
|
)
|
41
|
(5
|
)
|
(259
|
)
|
|||||||||
Nontaxable
|
206
|
(48
|
)
|
(2
|
)
|
156
|
||||||||||
Loans
|
3,604
|
(1,454
|
)
|
(425
|
)
|
1,725
|
||||||||||
Total interest income
|
3,518
|
(1,462
|
)
|
(432
|
)
|
1,624
|
||||||||||
|
||||||||||||||||
Interest Expense:
|
||||||||||||||||
Savings, NOW & money market deposits
|
37
|
(144
|
)
|
(9
|
)
|
(116
|
)
|
|||||||||
Time deposits
|
144
|
(9
|
)
|
-
|
135
|
|||||||||||
Short-term borrowings
|
(19
|
)
|
2
|
-
|
(17
|
)
|
||||||||||
Long-term debt
|
1,008
|
(179
|
)
|
(183
|
)
|
646
|
||||||||||
Total interest expense
|
1,170
|
(330
|
)
|
(192
|
)
|
648
|
||||||||||
|
||||||||||||||||
Increase (decrease) in net interest income
|
$
|
2,348
|
$
|
(1,132
|
)
|
$
|
(240
|
)
|
$
|
976
|
(1)
|
Represents the change not solely attributable to change in rate or change in volume but a combination of these two factors. The rate/volume variance could be allocated between the volume and rate variances shown in the table based on the absolute value of each to the total for both.
|
|
March 31,
|
December 31,
|
||||||
|
2014
|
2013
|
||||||
|
(dollars in thousands)
|
|||||||
Nonaccrual loans (1):
|
|
|
||||||
Troubled debt restructurings
|
$
|
1,624
|
$
|
2,548
|
||||
Other
|
453
|
1,948
|
||||||
Total nonaccrual loans
|
2,077
|
4,496
|
||||||
Loans past due 90 days or more and still accruing
|
-
|
-
|
||||||
Other real estate owned
|
-
|
-
|
||||||
Total nonperforming assets
|
2,077
|
4,496
|
||||||
Troubled debt restructurings - performing
|
532
|
541
|
||||||
Total risk elements
|
$
|
2,609
|
$
|
5,037
|
||||
|
||||||||
Nonaccrual loans as a percentage of total loans
|
.14
|
%
|
.30
|
%
|
||||
Nonperforming assets as a percentage of total loans and other real estate owned
|
.14
|
%
|
.30
|
%
|
||||
Risk elements as a percentage of total loans and other real estate owned
|
.18
|
%
|
.34
|
%
|
(1)
|
Includes loans held-for-sale.
|
|
|
Total RBC
|
|
Tier 1 RBC
|
|
Common Equity
Tier 1 RBC
|
|
Leverage
|
Requirement
|
|
Measure (%)
|
|
Measure (%)
|
|
Measure (%)
|
|
Measure (%)
|
|
|
|
|
|
|
|
|
|
Well Capitalized
|
|
≥ 10
|
|
≥ 8
|
|
≥ 6.5
|
|
≥ 5
|
Adequately Capitalized
|
|
≥ 8
|
|
≥ 6
|
|
≥ 4.5
|
|
≥ 4
|
Undercapitalized
|
|
< 8
|
|
< 6
|
|
< 4.5
|
|
< 4
|
Significantly Undercapitalized
|
|
< 6
|
|
< 4
|
|
< 3
|
|
< 3
|
Critically Undercapitalized | Tangible equity to total assets ≤ 2 |
January 1,
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||
|
|
|
|
|
|
||||||||||||||
Minimum Leverage Measure (%)
|
4.0
|
4.0
|
4.0
|
4.0
|
4.0
|
||||||||||||||
Minimum Common Equity Tier 1 RBC (%)
|
4.5
|
4.5
|
4.5
|
4.5
|
4.5
|
||||||||||||||
Capital Conservation Buffer (%)
(1)
|
N/A
|
.625
|
1.25
|
1.875
|
2.5
|
||||||||||||||
Minimum Common Equity Tier 1 RBC with Capital Conservation Buffer (%)
|
4.5
|
5.125
|
5.75
|
6.375
|
7.0
|
||||||||||||||
Minimum Tier 1 RBC (%)
|
6.0
|
6.0
|
6.0
|
6.0
|
6.0
|
||||||||||||||
Minimum Tier 1 RBC with Capital Conservation Buffer (%)
|
6.0
|
6.625
|
7.25
|
7.875
|
8.5
|
||||||||||||||
Minimum Total RBC (%)
|
8.0
|
8.0
|
8.0
|
8.0
|
8.0
|
||||||||||||||
Minimum Total RBC with Capital Conservation Buffer (%)
|
8.0
|
8.625
|
9.25
|
9.875
|
10.5
|
(1)
|
The capital conservation buffer must be maintained in order for a banking organization to avoid being subject to limitations on capital distributions, including dividend payments, and discretionary bonus payments to executive officers.
|
|
Economic Value of Equity
at March 31, 2014
|
Net Interest Income
for Year Ending 3/31/15
|
||||||||||||||
|
|
Percent
Change
From
|
|
Percent
Change
From
|
||||||||||||
Rate Change Scenario (dollars in thousands)
|
Amount
|
Base Case
|
Amount
|
Base Case
|
||||||||||||
+ 300 basis point rate shock
|
$
|
206,184
|
-23.4
|
%
|
$
|
68,219
|
-4.8
|
%
|
||||||||
+ 200 basis point rate shock
|
241,432
|
-10.3
|
%
|
73,747
|
2.9
|
%
|
||||||||||
+ 100 basis point rate shock
|
264,640
|
-1.7
|
%
|
74,613
|
4.1
|
%
|
||||||||||
Base case (no rate change)
|
269,229
|
-
|
71,641
|
-
|
||||||||||||
- 100 basis point rate shock
|
252,902
|
-6.1
|
%
|
68,230
|
-4.8
|
%
|
PART II.
|
OTHER INFORMATION
|
Exhibit No.
|
Description of Exhibit
|
Certificate of Amendment of Certificate of Incorporation dated May 1, 2014
|
|
Special Severance Agreement dated as of February 17, 2014 between The First of Long Island Corporation and Richard P. Perro, Executive Vice President
|
|
10.2
|
The First of Long Island Corporation 2014 Equity Incentive Plan (incorporated by reference to Appendix A of Registrant’s Proxy Statement filed March 17, 2014)
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a)
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a)
|
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) and U.S.C. Section 1350
|
|
101
|
The following materials from the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to the Consolidated Financial Statements.
|
|
THE FIRST OF LONG ISLAND CORPORATION
|
|
(Registrant)
|
|
|
Dated: May 12, 2014
|
By /s/ MICHAEL N. VITTORIO
|
|
MICHAEL N. VITTORIO, President & Chief Executive Officer
|
|
(principal executive officer)
|
|
|
|
By /s/ MARK D. CURTIS
|
|
MARK D. CURTIS, Executive Vice President, Chief Financial
|
|
Officer and Treasurer
|
|
(principal financial officer)
|
|
|
|
By /s/ WILLIAM APRIGLIANO
|
|
WILLIAM APRIGLIANO, Senior Vice President & Chief
|
|
Accounting Officer
|
|
(principal accounting officer)
|
Dated:
|
May 1, 2014 |
|
|
|
|
By /s
/ MARK D. CURTIS
|
|
|
Mark D. Curtis, Executive Vice President
|
|
Very truly yours,
|
|
|
|
|
|
THE FIRST OF LONG ISLAND CORPORATION
|
|
|
|
|
|
By:
|
/s/ MARK D. CURTIS
|
|
|
Mark D. Curtis, Senior Vice President
|
|
|
|
|
|
/
s/ RICHARD P. PERRO
|
|
|
Richard P. Perro
|
|
1) | I have reviewed this Form 10-Q of The First of Long Island Corporation (“Registrant”); |
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 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 (or persons performing the equivalent functions): |
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. |
Date: May 12, 2014
|
|
|
|
By /s/ MICHAEL N. VITTORIO
|
|
MICHAEL N. VITTORIO
|
|
PRESIDENT & CHIEF EXECUTIVE OFFICER
|
|
(principal executive officer)
|
|
1) | I have reviewed this Form 10-Q of The First of Long Island Corporation (“Registrant”); |
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 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 (or persons performing the equivalent functions): |
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. |
Date: May 12, 2014
|
|
|
|
By /s/ MARK D. CURTIS
|
|
MARK D. CURTIS
|
|
EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL
|
|
OFFICER AND TREASURER
|
|
(principal financial officer)
|
|
Date: May 12, 2014
|
|
|
|
By /s/ MICHAEL N. VITTORIO
|
|
MICHAEL N. VITTORIO
|
|
PRESIDENT & CHIEF EXECUTIVE OFFICER
|
|
(principal executive officer)
|
|
By /s/ MARK D. CURTIS
|
|
MARK D. CURTIS
|
|
EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL
|
|
OFFICER AND TREASURER
|
|
(principal financial officer)
|
|