Delaware
(State or other jurisdiction of incorporation or organization)
|
11-3209278
(I.R.S. Employer Identification No.)
|
Common Stock $0.01 par value (and
associated Preferred Stock Purchase Rights)
(Title of each class)
|
NASDAQ Global Select Market
(Name of exchange on which registered)
|
Large accelerated filer___
Non-accelerated filer____
|
Accelerated filer
X
Smaller reporting company __
|
§
|
When borrowers requested a refinance of an existing mortgage loan when they had acquired the property or obtained their existing loan within two years of the request, we generally required evidence of improvements to the property that increased the property value to support the additional funds and generally restricted the loan-to-value ratio for the new loan to 65% of the appraised value.
|
§
|
The debt coverage ratio was increased and the loan-to-value ratio decreased for income producing properties with fewer than ten units. This required the borrower to have an additional investment in the property than previously required and provided additional protection should rental units become vacant.
|
§
|
Borrowers who owned multiple properties were required to provide detail on all their properties to allow us to evaluate their total cash flow requirements. Based on this review, we may decline the loan application, or require a lower loan-to-value ratio and a higher debt coverage ratio.
|
§
|
Income producing properties with existing rents that were at or above the current market rent for similar properties were required to have a higher debt coverage ratio to provide protection should rents decline.
|
§
|
Borrowers purchasing properties were required to demonstrate they had satisfactory liquidity and management ability to carry the property should vacancies occur or increase.
|
§
|
We discontinued originating home equity lines of credit without verifying the borrower’s income. This was done in two stages. Beginning in May 2008, we began verifying the borrower’s income when the home equity line of credit exceeded $100,000. Beginning in October 2009, we verified the income of all borrowers applying for a home equity line of credit.
|
§
|
We discontinued offering one-to-four family residential property mortgage loans to self-employed individuals based on stated income and verifiable assets in June 2010.
|
§
|
All borrowers obtaining a business loan were required to submit a complete financial information package, regardless of the amount of the loan. Previously, borrowers for SBA Express loans and other loans under $150,000 had been exempt from this requirement.
|
§
|
Background checks on all borrowers and guarantors for business loans were expanded to identify and review information in more public records, including a search for judgments, liens, negative press articles, and affiliations with other entities.
|
§
|
The guarantee of related business entities providing cash flow to the borrowing entity became required for business loans.
|
§
|
The allowable percentage of inventory and accounts receivable pledged as collateral for a business loan was reduced.
|
§
|
We established specific risk acceptance criteria for private not for profit schools.
|
At December 31,
|
||||||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||||||||||
Percent
|
Percent
|
Percent
|
Percent
|
Percent
|
||||||||||||||||||||||||||||||||||||
Amount
|
of Total
|
Amount
|
of Total
|
Amount
|
of Total
|
Amount
|
of Total
|
Amount
|
of Total
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Mortgage Loans:
|
||||||||||||||||||||||||||||||||||||||||
Multi-family residential
|
$ | 1,391,221 | 43.28 | % | $ | 1,252,176 | 38.41 | % | $ | 1,158,700 | 36.16 | % | $ | 999,185 | 33.80 | % | $ | 964,455 | 35.79 | % | ||||||||||||||||||||
Commercial real estate
|
580,783 | 18.07 | 662,794 | 20.33 | 686,210 | 21.42 | 686,630 | 23.24 | 586,598 | 21.77 | ||||||||||||||||||||||||||||||
One-to-four family -
mixed-use property
|
693,932 | 21.59 | 728,810 | 22.36 | 744,560 | 23.24 | 751,952 | 25.45 | 686,921 | 25.49 | ||||||||||||||||||||||||||||||
One-to-four family -
residential (1)
|
220,431 | 6.86 | 241,376 | 7.40 | 249,920 | 7.81 | 238,711 | 8.09 | 161,666 | 6.01 | ||||||||||||||||||||||||||||||
Co-operative apartment (2)
|
5,505 | 0.17 | 6,215 | 0.19 | 6,553 | 0.20 | 6,566 | 0.22 | 7,070 | 0.26 | ||||||||||||||||||||||||||||||
Construction
|
47,140 | 1.47 | 75,519 | 2.32 | 97,270 | 3.04 | 103,626 | 3.51 | 119,745 | 4.44 | ||||||||||||||||||||||||||||||
Gross mortgage loans
|
2,939,012 | 91.44 | 2,966,890 | 91.01 | 2,943,213 | 91.87 | 2,786,670 | 94.31 | 2,526,455 | 93.76 | ||||||||||||||||||||||||||||||
Non-mortgage loans:
|
||||||||||||||||||||||||||||||||||||||||
Small Business Administration
|
14,039 | 0.44 | 17,511 | 0.54 | 17,496 | 0.55 | 19,671 | 0.67 | 18,922 | 0.70 | ||||||||||||||||||||||||||||||
Taxi medallion
|
54,328 | 1.69 | 88,264 | 2.71 | 61,424 | 1.92 | 12,979 | 0.44 | 68,250 | 2.53 | ||||||||||||||||||||||||||||||
Commercial business and other
|
206,614 | 6.43 | 187,161 | 5.74 | 181,240 | 5.66 | 135,249 | 4.58 | 81,041 | 3.01 | ||||||||||||||||||||||||||||||
Gross non-mortgage loans
|
274,981 | 8.56 | 292,936 | 8.99 | 260,160 | 8.13 | 167,899 | 5.69 | 168,213 | 6.24 | ||||||||||||||||||||||||||||||
Gross loans
|
3,213,993 | 100.00 | % | 3,259,826 | 100.00 | % | 3,203,373 | 100.00 | % | 2,954,569 | 100.00 | % | 2,694,668 | 100.00 | % | |||||||||||||||||||||||||
Unearned loan fees and deferred
costs, net
|
14,888 | 16,503 | 17,110 | 17,121 | 14,083 | |||||||||||||||||||||||||||||||||||
Less: Allowance for loan losses
|
(30,344 | ) | (27,699 | ) | (20,324 | ) | (11,028 | ) | (6,633 | ) | ||||||||||||||||||||||||||||||
Loans, net
|
$ | 3,198,537 | $ | 3,248,630 | $ | 3,200,159 | $ | 2,960,662 | $ | 2,702,118 |
(1)
|
One-to-four family residential mortgage loans also include home equity and condominium loans. At December 31, 2011, gross home equity loans totaled $70.2 million and condominium loans totaled $28.5 million.
|
(2)
|
Consists of loans secured by shares representing interests in individual co-operative units that are generally owner occupied.
|
For the years ended December 31,
|
||||||||||||
(In thousands)
|
2011
|
2010
|
2009
|
|||||||||
Mortgage Loans
|
||||||||||||
At beginning of year
|
$ | 2,966,890 | $ | 2,943,213 | $ | 2,786,670 | ||||||
Mortgage loans originated:
|
||||||||||||
Multi-family residential
|
249,010 | 171,238 | 212,274 | |||||||||
Commercial real estate
|
7,070 | 33,697 | 32,557 | |||||||||
One-to-four family mixed-use property
|
23,754 | 29,415 | 33,053 | |||||||||
One-to-four family residential
|
24,075 | 34,694 | 54,669 | |||||||||
Co-operative apartment
|
- | 407 | 534 | |||||||||
Construction
|
1,723 | 10,493 | 18,263 | |||||||||
Total mortgage loans originated
|
305,632 | 279,944 | 351,350 | |||||||||
Mortgage loans purchased:
|
||||||||||||
Commercial real estate
|
- | - | 2,917 | |||||||||
Total mortgage loans purchased
|
- | - | 2,917 | |||||||||
Less:
|
||||||||||||
Principal reductions
|
284,327 | 229,951 | 183,712 | |||||||||
Mortgage loan sales
|
24,832 | 8,755 | 6,233 | |||||||||
Charge-offs
|
17,845 | 13,170 | 5,359 | |||||||||
Mortgage loan foreclosures
|
6,506 | 4,391 | 2,420 | |||||||||
At end of year
|
$ | 2,939,012 | $ | 2,966,890 | $ | 2,943,213 | ||||||
Non-mortgage loans
|
||||||||||||
At beginning of year
|
$ | 292,936 | $ | 260,160 | $ | 167,899 | ||||||
Loans originated:
|
||||||||||||
Small Business Administration
|
3,528 | 3,869 | 4,457 | |||||||||
Taxi Medallion
|
11,779 | 59,551 | 20,702 | |||||||||
Commercial business
|
66,352 | 52,505 | 76,161 | |||||||||
Other
|
4,859 | 5,991 | 4,656 | |||||||||
Total other loans originated
|
86,518 | 121,916 | 105,976 | |||||||||
Non-mortgage loans purchased:
|
||||||||||||
Taxi Medallion
|
19,053 | 14,675 | 40,347 | |||||||||
Less:
|
||||||||||||
Sales of Small Business Administration loans
|
4,104 | - | 2,005 | |||||||||
Principal reductions
|
118,032 | 102,617 | 47,237 | |||||||||
Charge-offs
|
1,390 | 1,198 | 4,820 | |||||||||
At end of year
|
$ | 274,981 | $ | 292,936 | $ | 260,160 |
Mortgage loans
|
Non-mortgage loans
|
|
||||||||||||||||||||||||||||||||||||||
(In thousands)
|
Multi-family
residential
|
Commercial
real estate
|
One-to-four
family
|
One-to-four
family
|
Co-operative
apartment
|
Construction
|
Small Business
Administration
|
Taxi
Medallion
|
Commercial
business
|
Total loans
|
||||||||||||||||||||||||||||||
Amounts due within one year
|
$ | 120,814 | $ | 94,882 | $ | 31,696 | $ | 5,640 | $ | 310 | $ | 47,140 | $ | 4,294 | $ | 32,251 | $ | 59,338 | $ | 396,365 | ||||||||||||||||||||
Amounts due after one year:
|
||||||||||||||||||||||||||||||||||||||||
One to two years
|
101,990 | 70,740 | 32,189 | 5,489 | 215 | - | 2,745 | 17,245 | 14,741 | 245,354 | ||||||||||||||||||||||||||||||
Two to three years
|
95,801 | 68,904 | 32,345 | 5,363 | 211 | - | 1,496 | 3,656 | 13,359 | 221,135 | ||||||||||||||||||||||||||||||
Three to five years
|
180,297 | 118,404 | 64,969 | 10,714 | 443 | - | 1,860 | 1,176 | 26,546 | 404,409 | ||||||||||||||||||||||||||||||
Over five years
|
892,319 | 227,853 | 532,733 | 193,225 | 4,326 | - | 3,644 | - | 92,630 | 1,946,730 | ||||||||||||||||||||||||||||||
Total due after one year
|
1,270,407 | 485,901 | 662,236 | 214,791 | 5,195 | - | 9,745 | 22,077 | 147,276 | 2,817,628 | ||||||||||||||||||||||||||||||
Total amounts due
|
$ | 1,391,221 | $ | 580,783 | $ | 693,932 | $ | 220,431 | $ | 5,505 | $ | 47,140 | $ | 14,039 | $ | 54,328 | $ | 206,614 | $ | 3,213,993 | ||||||||||||||||||||
Sensitivity of loans to changes in
interest rates -
loans due
after one year:
|
||||||||||||||||||||||||||||||||||||||||
Fixed rate loans
|
$ | 198,350 | $ | 56,428 | $ | 129,003 | $ | 60,920 | $ | 104 | $ | - | $ | 290 | $ | 20,048 | $ | 46,483 | $ | 511,626 | ||||||||||||||||||||
Adjustable rate loans
|
1,072,057 | 429,473 | 533,233 | 153,871 | 5,091 | - | 9,455 | 2,029 | 100,793 | 2,306,002 | ||||||||||||||||||||||||||||||
Total loans due after one year
|
$ | 1,270,407 | $ | 485,901 | $ | 662,236 | $ | 214,791 | $ | 5,195 | $ | - | $ | 9,745 | $ | 22,077 | $ | 147,276 | $ | 2,817,628 |
At December 31,
|
||||||||||||||||||||
(Dollars in thousands)
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Multi-family residential
|
$ | 9,412 | $ | 7,946 | $ | 478 | $ | - | $ | - | ||||||||||
Commercial real estate
|
2,499 | 5,815 | 1,441 | - | - | |||||||||||||||
One-to-four family mixed-use property
|
795 | 206 | 575 | - | - | |||||||||||||||
Construction
|
5,888 | - | - | - | - | |||||||||||||||
Commercial business and other
|
2,000 | - | - | - | - | |||||||||||||||
Total performing troubled debt restructered
|
$ | 20,594 | $ | 13,967 | $ | 2,494 | $ | - | $ | - |
At December 31,
|
||||||||||||||||||||
(Dollars in thousands)
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Loans 90 days or more past due and still accruing:
|
||||||||||||||||||||
Multi-family residential
|
$ | 6,287 | $ | 103 | $ | - | $ | - | $ | - | ||||||||||
Commercial real estate
|
92 | 3,328 | 471 | 425 | - | |||||||||||||||
One-to-four family - residential
|
- | - | 2,784 | 889 | - | |||||||||||||||
Construction
|
- | - | - | - | 753 | |||||||||||||||
Commercial Business and other
|
- | 6 | - | - | - | |||||||||||||||
Total
|
6,379 | 3,437 | 3,255 | 1,314 | 753 | |||||||||||||||
Non-accrual mortgage loans:
|
||||||||||||||||||||
Multi-family residential
|
19,946 | 35,633 | 27,483 | 12,011 | 2,477 | |||||||||||||||
Commercial real estate
|
19,895 | 22,806 | 18,153 | 7,251 | 90 | |||||||||||||||
One-to-four family mixed-use property
|
28,429 | 30,478 | 23,422 | 10,639 | 2,204 | |||||||||||||||
One-to-four family residential
|
12,766 | 10,695 | 4,959 | 1,121 | - | |||||||||||||||
Co-operative apartments
|
152 | - | 78 | - | - | |||||||||||||||
Construction
|
14,721 | 4,465 | 1,639 | 4,457 | - | |||||||||||||||
Total
|
95,909 | 104,077 | 75,734 | 35,479 | 4,771 | |||||||||||||||
Non-accrual non-mortgage loans:
|
||||||||||||||||||||
Small Business Administration
|
493 | 1,159 | 1,232 | 354 | 366 | |||||||||||||||
Commercial Business and other
|
14,660 | 3,419 | 3,151 | 2,825 | 3 | |||||||||||||||
Total
|
15,153 | 4,578 | 4,383 | 3,179 | 369 | |||||||||||||||
Total non-accrual loans
|
111,062 | 108,655 | 80,117 | 38,658 | 5,140 | |||||||||||||||
Total non-performing loans
|
117,441 | 112,092 | 83,372 | 39,972 | 5,893 | |||||||||||||||
Other non-performing assets:
|
||||||||||||||||||||
Real Estate Owned
|
3,179 | 1,588 | 2,262 | 125 | - | |||||||||||||||
Investment securities
|
2,562 | 5,134 | 5,134 | 607 | - | |||||||||||||||
Total
|
5,741 | 6,722 | 7,396 | 732 | - | |||||||||||||||
Total non-performing assets
|
$ | 123,182 | $ | 118,814 | $ | 90,768 | $ | 40,704 | $ | 5,893 | ||||||||||
Non-performing loans to gross loans
|
3.65 | % | 3.44 | % | 2.60 | % | 1.35 | % | 0.22 | % | ||||||||||
Non-performing assets to total assets
|
2.87 | % | 2.75 | % | 2.19 | % | 1.03 | % | 0.18 | % |
December 31, 2011
|
December 31, 2010
|
|||||||||||||||
60 - 89
days
|
30 - 59
days
|
60 - 89
days
|
30 - 59
days
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Multi-family residential
|
$ | 6,341 | $ | 20,083 | $ | 7,014 | $ | 30,799 | ||||||||
Commercial real estate
|
1,797 | 10,712 | 2,181 | 17,167 | ||||||||||||
One-to-four family - mixed-use property
|
3,027 | 20,480 | 6,376 | 19,596 | ||||||||||||
One-to-four family - residential
|
1,769 | 4,699 | 1,046 | 4,959 | ||||||||||||
Co-operative apartments
|
- | - | - | - | ||||||||||||
Construction loans
|
- | 5,065 | 5,485 | 2,900 | ||||||||||||
Small Business Administration
|
- | 16 | 991 | 418 | ||||||||||||
Taxi medallion
|
- | 71 | - | - | ||||||||||||
Commercial business and other
|
966 | 1,056 | 3 | 4,534 | ||||||||||||
Total
|
$ | 13,900 | $ | 62,182 | $ | 23,096 | $ | 80,373 |
(In thousands)
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total
|
|||||||||||||||
Loans:
|
||||||||||||||||||||
Multi-family residential
|
$ | 17,135 | $ | 41,393 | $ | - | $ | - | $ | 58,528 | ||||||||||
Commercial real estate
|
12,264 | 41,247 | - | - | 53,511 | |||||||||||||||
One-to-four family - mixed-use property
|
17,393 | 33,831 | - | - | 51,224 | |||||||||||||||
One-to-four family - residential
|
3,127 | 14,343 | - | - | 17,470 | |||||||||||||||
Co-operative apartments
|
203 | 153 | - | - | 356 | |||||||||||||||
Construction loans
|
2,570 | 28,555 | - | - | 31,125 | |||||||||||||||
Small Business Administration
|
666 | 256 | 214 | - | 1,136 | |||||||||||||||
Commercial business and other
|
13,585 | 17,613 | 1,169 | - | 32,367 | |||||||||||||||
Total loans
|
66,943 | 177,391 | 1,383 | - | 245,717 | |||||||||||||||
Investment Securities:
(1)
|
||||||||||||||||||||
Pooled trust preferred securities
|
- | 15,344 | - | - | 15,344 | |||||||||||||||
Private issue CMO
|
- | 40,905 | - | - | 40,905 | |||||||||||||||
Total investment securities
|
- | 56,249 | - | - | 56,249 | |||||||||||||||
Other Real Estate Owned
|
- | 3,179 | - | - | 3,179 | |||||||||||||||
Total
|
$ | 66,943 | $ | 236,819 | $ | 1,383 | $ | - | $ | 305,145 |
(In thousands)
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total
|
|||||||||||||||
Loans:
|
||||||||||||||||||||
Multi-family residential
|
$ | 20,277 | $ | 51,626 | $ | - | $ | - | $ | 71,903 | ||||||||||
Commercial real estate
|
13,228 | 32,120 | - | - | 45,348 | |||||||||||||||
One-to-four family - mixed-use property
|
15,546 | 33,539 | - | - | 49,085 | |||||||||||||||
One-to-four family - residential
|
2,849 | 10,874 | - | - | 13,723 | |||||||||||||||
Co-operative apartments
|
- | - | - | - | - | |||||||||||||||
Construction loans
|
5,945 | 30,589 | - | - | 36,534 | |||||||||||||||
Small Business Administration
|
558 | 1,432 | - | - | 1,990 | |||||||||||||||
Commercial business and other
|
14,302 | 13,628 | 1,238 | - | 29,168 | |||||||||||||||
Total loans
|
72,705 | 173,808 | 1,238 | - | 247,751 | |||||||||||||||
Investment Securities:
(1)
|
||||||||||||||||||||
Pooled trust preferred securities
|
- | 16,457 | - | - | 16,457 | |||||||||||||||
Mutual funds
|
- | 4,082 | - | - | 4,082 | |||||||||||||||
Private issue CMO
|
- | 53,790 | - | - | 53,790 | |||||||||||||||
Total investment securities
|
- | 74,329 | - | - | 74,329 | |||||||||||||||
Other Real Estate Owned
|
- | 1,588 | - | - | 1,588 | |||||||||||||||
Total
|
$ | 72,705 | $ | 249,725 | $ | 1,238 | $ | - | $ | 323,668 |
(1)
|
Our investment securities are classified as securities available for sale and as such are carried at their fair value in our Consolidated Financial Statements. The securities above had a fair value of $41.1 million and $65.0 million at December 31, 2011 and 2010, respectively. Under current applicable regulatory guidelines, we are required to disclose the classified investment securities, as shown in the tables above, at their book values (amortized cost, or fair value for securities that are under the fair value option). Additionally, the requirement is only for the Banks’ securities. Flushing Financial Corporation had two private issue trust preferred securities classified as Substandard at December 31, 2011 and 2010 with a combined market value of $0.8 million. In addition, Flushing Financial Corporation had one mutual fund security classified as Substandard with a market value of $1.6 million at December 31, 2010.
|
At and for the years ended December 31,
|
||||||||||||||||||||
(Dollars in thousands)
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Balance at beginning of year
|
$ | 27,699 | $ | 20,324 | $ | 11,028 | $ | 6,633 | $ | 7,057 | ||||||||||
Provision for loan losses
|
21,500 | 21,000 | 19,500 | 5,600 | - | |||||||||||||||
Loans charged-off:
|
||||||||||||||||||||
Multi-family residential
|
(6,807 | ) | (5,790 | ) | (2,327 | ) | (496 | ) | - | |||||||||||
Commercial real estate
|
(5,172 | ) | (2,685 | ) | (728 | ) | - | - | ||||||||||||
One-to-four family mixed-use property
|
(2,644 | ) | (2,580 | ) | (1,009 | ) | - | - | ||||||||||||
One-to-four family residential
|
(2,226 | ) | (236 | ) | (284 | ) | - | - | ||||||||||||
Co-operative apartment
|
- | - | - | - | - | |||||||||||||||
Construction
|
(1,088 | ) | (1,879 | ) | (1,075 | ) | - | - | ||||||||||||
SBA
|
(871 | ) | (925 | ) | (1,106 | ) | (759 | ) | (470 | ) | ||||||||||
Commercial business and other loans
|
(642 | ) | (500 | ) | (3,842 | ) | (36 | ) | (2 | ) | ||||||||||
Total loans charged-off
|
(19,450 | ) | (14,595 | ) | (10,371 | ) | (1,291 | ) | (472 | ) | ||||||||||
Recoveries:
|
||||||||||||||||||||
Mortgage loans
|
523 | 183 | 1 | - | 29 | |||||||||||||||
SBA, commercial business and other loans
|
72 | 787 | 166 | 86 | 19 | |||||||||||||||
Total recoveries
|
595 | 970 | 167 | 86 | 48 | |||||||||||||||
Net charge-offs
|
(18,855 | ) | (13,625 | ) | (10,204 | ) | (1,205 | ) | (424 | ) | ||||||||||
Balance at end of year
|
$ | 30,344 | $ | 27,699 | $ | 20,324 | $ | 11,028 | $ | 6,633 | ||||||||||
Ratio of net charge-offs during the year to average loans outstanding during the year
|
0.59 | % | 0.42 | % | 0.33 | % | 0.04 | % | 0.02 | % | ||||||||||
Ratio of allowance for loan losses to gross loans at end of the year
|
0.94 | % | 0.85 | % | 0.63 | % | 0.37 | % | 0.25 | % | ||||||||||
Ratio of allowance for loan losses to non-performing loans at the end of the year
|
25.84 | % | 24.71 | % | 24.38 | % | 27.59 | % | 112.57 | % | ||||||||||
Ratio of allowance for loan losses to non-performing assets at the end of the year
|
24.63 | % | 23.31 | % | 22.39 | % | 27.09 | % | 112.57 | % |
At December 31, | ||||||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||||||||||
Loan Category
|
Amount
|
Percent
of Loans in
|
Amount
|
Percent
of Loans in
|
Amount
|
Percent
of Loans in
|
Amount
|
Percent
of Loans in
|
Amount
|
Percent
of Loans in
|
||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||||||||||||||||||||||
Multi-family residential
|
$ | 11,267 | 43.28 | % | $ | 9,007 | 38.41 | % | $ | 6,581 | 36.17 | % | $ | 3,233 | 33.80 | % | $ | 1,644 | 35.79 | % | ||||||||||||||||||||
Commercial real estate
|
5,209 | 18.07 | 4,905 | 20.33 | 4,395 | 21.42 | 1,360 | 23.24 | 933 | 21.77 | ||||||||||||||||||||||||||||||
One-to-four family
mixed-use property
|
5,314 | 21.59 | 5,997 | 22.36 | 4,339 | 23.24 | 2,904 | 25.45 | 1,223 | 25.49 | ||||||||||||||||||||||||||||||
One-to-four family
residential
|
1,649 | 6.86 | 938 | 7.40 | 844 | 7.80 | 393 | 8.09 | 251 | 6.01 | ||||||||||||||||||||||||||||||
Co-operative apartment
|
80 | 0.17 | 17 | 0.19 | 17 | 0.20 | 9 | 0.22 | 15 | 0.26 | ||||||||||||||||||||||||||||||
Construction
|
668 | 1.47 | 589 | 2.32 | 1,281 | 3.04 | 910 | 3.51 | 1,172 | 4.44 | ||||||||||||||||||||||||||||||
Gross mortgage loans
|
24,187 | 91.44 | 21,453 | 91.01 | 17,457 | 91.87 | 8,809 | 94.31 | 5,238 | 93.76 | ||||||||||||||||||||||||||||||
Non-mortgage loans:
|
||||||||||||||||||||||||||||||||||||||||
Small Business Administration
|
987 | 0.44 | 1,303 | 0.54 | 965 | 0.55 | 464 | 0.67 | 373 | 0.70 | ||||||||||||||||||||||||||||||
Taxi Medallion
|
41 | 1.69 | 639 | 2.71 | 583 | 1.92 | 91 | 0.44 | 391 | 2.53 | ||||||||||||||||||||||||||||||
Commercial business and other
|
5,129 | 6.43 | 4,304 | 5.74 | 1,319 | 5.66 | 1,664 | 4.58 | 631 | 3.01 | ||||||||||||||||||||||||||||||
Gross non-mortgage loans
|
6,157 | 8.56 | 6,246 | 8.99 | 2,867 | 8.13 | 2,219 | 5.69 | 1,395 | 6.24 | ||||||||||||||||||||||||||||||
Total loans
|
$ | 30,344 | 100.00 | % | $ | 27,699 | 100.00 | % | $ | 20,324 | 100.00 | % | $ | 11,028 | 100.00 | % | $ | 6,633 | 100.00 | % |
At December 31, | ||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||
Amortized
Cost
|
Market
Value
|
Amortized
Cost
|
Market
Value
|
Amortized
Cost
|
Market
Value
|
|||||||||||||||||||
|
(In thousands) | |||||||||||||||||||||||
Securities available for sale
|
||||||||||||||||||||||||
Bonds and other debt securities:
|
||||||||||||||||||||||||
U.S. government and agencies
|
$ | 1,980 | $ | 2,039 | $ | 10,556 | $ | 10,459 | $ | 3,277 | $ | 3,389 | ||||||||||||
Municipal securities
|
4,534 | 4,531 | 5,412 | 5,413 | 2,250 | 2,250 | ||||||||||||||||||
Corporate debentures
|
20,777 | 20,592 | 2,698 | 2,698 | 2,627 | 2,627 | ||||||||||||||||||
Total bonds and other debt securities
|
27,291 | 27,162 | 18,666 | 18,570 | 8,154 | 8,266 | ||||||||||||||||||
Mutual funds
|
21,369 | 21,369 | 10,625 | 10,625 | 6,860 | 6,860 | ||||||||||||||||||
Equity securities:
|
||||||||||||||||||||||||
Common stock
|
790 | 790 | 967 | 967 | 1,036 | 1,036 | ||||||||||||||||||
Preferred stock
|
21,233 | 15,921 | 22,346 | 19,950 | 22,805 | 19,199 | ||||||||||||||||||
Total equity securities
|
22,023 | 16,711 | 23,313 | 20,917 | 23,841 | 20,235 | ||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
FNMA
|
175,627 | 182,630 | 192,750 | 194,540 | 124,199 | 127,364 | ||||||||||||||||||
REMIC and CMO
|
460,824 | 473,639 | 456,210 | 453,465 | 388,891 | 380,325 | ||||||||||||||||||
FHLMC
|
22,556 | 23,387 | 19,561 | 20,117 | 29,201 | 29,909 | ||||||||||||||||||
GNMA
|
62,040 | 67,632 | 81,439 | 85,955 | 107,144 | 110,845 | ||||||||||||||||||
Total mortgage-backed securities
|
721,047 | 747,288 | 749,960 | 754,077 | 649,435 | 648,443 | ||||||||||||||||||
Total securities available for sale
|
791,730 | 812,530 | 802,564 | 804,189 | 688,290 | 683,804 | ||||||||||||||||||
Interest-earning deposits and
Federal funds sold
|
48,944 | 48,944 | 41,836 | 41,836 | 23,542 | 23,542 | ||||||||||||||||||
Total
|
$ | 840,674 | $ | 861,474 | $ | 844,400 | $ | 846,025 | $ | 711,832 | $ | 707,346 |
For the years ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(In thousands) | ||||||||||||
Balance at beginning of year
|
$ | 754,077 | $ | 648,443 | $ | 674,764 | ||||||
Purchases of mortgage-backed securities
|
122,530 | 345,257 | 177,036 | |||||||||
Amortization of unearned premium, net of accretion of unearned discount
|
(2,587 | ) | (2,343 | ) | (1,668 | ) | ||||||
Net change in unrealized gains (losses) on mortgage-backed securities available for sale
|
22,124 | 5,110 | 20,550 | |||||||||
Net realized gains recorded on mortgage-backed securities carried at fair value
|
(636 | ) | 730 | 3,941 | ||||||||
Net change in interest due on securities carried at fair value
|
(46 | ) | (127 | ) | (122 | ) | ||||||
Sales of mortgage-backed securities
|
- | (56,479 | ) | (44,854 | ) | |||||||
Other-than-temporary impairment charges
|
(1,578 | ) | (1,057 | ) | (3,144 | ) | ||||||
In-kind distribution of a mutual fund in the form of mortgage-backed securities
|
- | - | 11,494 | |||||||||
Principal repayments received on mortgage-backed securities
|
(146,596 | ) | (185,457 | ) | (189,554 | ) | ||||||
Net increase (decrease) in mortgage-backed securities
|
(6,789 | ) | 105,634 | (26,321 | ) | |||||||
Balance at end of year
|
$ | 747,288 | $ | 754,077 | $ | 648,443 | ||||||
One year or Less
|
One to Five Years
|
Five to Ten Years
|
More than Ten Years
|
Total Securities
|
||||||||||||||||||||||||||||||||||||||||||||
Amortized
Cost
|
Weighted
Average
|
Amortized
Cost
|
Weighted
Average
|
Amortized
Cost
|
Weighted
Average
|
Amortized
Cost
|
Weighted
Average
|
Average
Remaining
|
Amortized
Cost
|
Estimated
Fair
|
Weighted
Average
|
|||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale
|
||||||||||||||||||||||||||||||||||||||||||||||||
Bonds and other debt securities:
|
||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agencies
|
$ | - | $ | 1,980 | 4.15 | $ | - | - | $ | - | - | % | 1.16 | $ | 1,980 | $ | 2,039 | 4.15 | % | |||||||||||||||||||||||||||||
Municipal securities
|
4,534 | 0.70 | - | - | - | - | - | - | 0.39 | 4,534 | 4,531 | 0.70 | ||||||||||||||||||||||||||||||||||||
Corporate debentures
|
2,612 | 5.46 | 9,076 | 0.96 | 9,089 | 0.90 | - | - | 4.61 | 20,777 | 20,592 | 1.50 | ||||||||||||||||||||||||||||||||||||
Total bonds and other debt securities
|
7,146 | 2.44 | 11,056 | 1.53 | 9,089 | 0.90 | - | - | 3.66 | 27,291 | 27,162 | 1.56 | ||||||||||||||||||||||||||||||||||||
Mutual funds
|
21,369 | 2.97 | - | - | - | - | - | - | N/A | 21,369 | 21,369 | 2.97 | ||||||||||||||||||||||||||||||||||||
Equity securities:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Common stock
|
- | - | - | - | - | - | 790 | 16.36 | N/A | 790 | 790 | 16.36 | ||||||||||||||||||||||||||||||||||||
Preferred stock
|
5,000 | 0.25 | - | - | - | - | 16,233 | 4.15 | N/A | 21,233 | 15,921 | 3.23 | ||||||||||||||||||||||||||||||||||||
Total equity securities
|
5,000 | 0.25 | - | - | - | - | 17,023 | 4.72 | N/A | 22,023 | 16,711 | 3.70 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||||||||||||||||||||||
FNMA
|
- | - | 396 | 5.99 | 32,148 | 3.67 | 143,083 | 4.23 | 17.21 | 175,627 | 182,630 | 4.13 | ||||||||||||||||||||||||||||||||||||
REMIC and CMO
|
- | - | - | - | 34,853 | 4.52 | 425,971 | 4.45 | 22.57 | 460,824 | 473,639 | 4.46 | ||||||||||||||||||||||||||||||||||||
FHLMC
|
- | - | 147 | 6.05 | 334 | 6.08 | 22,075 | 4.55 | 16.62 | 22,556 | 23,387 | 4.58 | ||||||||||||||||||||||||||||||||||||
GNMA
|
- | - | - | - | - | - | 62,040 | 5.31 | 26.78 | 62,040 | 67,632 | 5.31 | ||||||||||||||||||||||||||||||||||||
Total mortgage-backed securities
|
- | - | 543 | 6.01 | 67,335 | 4.12 | 653,169 | 4.49 | 21.44 | 721,047 | 747,288 | 4.45 | ||||||||||||||||||||||||||||||||||||
Interest-earning deposits
|
48,944 | 0.25 | - | - | - | - | - | - | N/A | 48,944 | 48,944 | 0.25 | ||||||||||||||||||||||||||||||||||||
Total
|
$ | 82,459 | 1.14 | % | $ | 11,599 | 1.74 | % | $ | 76,424 | 3.74 | % | $ | 670,192 | 4.49 | % | 20.79 | $ | 840,674 | $ | 861,474 | 4.06 | % |
At December 31,
|
||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
||||||||||||||||||||||||||||||||||
Percent
|
Average
|
Percent
|
Average
|
Percent
|
Average
|
|||||||||||||||||||||||||||||||
of Total
|
Nominal
|
of Total
|
Nominal
|
of Total
|
Nominal
|
|||||||||||||||||||||||||||||||
Amount
|
Deposits
|
Rate
|
Amount
|
Deposits
|
Rate
|
Amount
|
Deposits
|
Rate
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Savings accounts
|
$ | 349,630 | 11.11 | 0.32 | % | $ | 388,512 | 12.17 | % | 0.53 | % | $ | 426,821 | 15.85 | % | 0.91 | % | |||||||||||||||||||
NOW accounts
|
919,029 | 29.21 | 0.67 | 786,015 | 24.63 | 0.84 | 503,159 | 18.68 | 1.26 | |||||||||||||||||||||||||||
Demand accounts
|
118,507 | 3.77 | - | 96,198 | 3.02 | - | 91,376 | 3.39 | - | |||||||||||||||||||||||||||
Mortgagors' escrow deposits
|
29,786 | 0.95 | 0.21 | 27,315 | 0.86 | 0.21 | 26,791 | 0.99 | 0.21 | |||||||||||||||||||||||||||
Total
|
1,416,952 | 45.04 | 0.52 | 1,298,040 | 40.68 | 0.67 | 1,048,147 | 38.91 | 0.98 | |||||||||||||||||||||||||||
Money market accounts
(7)
|
200,183 | 6.36 | 0.33 | 371,998 | 11.66 | 0.56 | 414,457 | 15.40 | 1.17 | |||||||||||||||||||||||||||
Certificate of deposit accounts
with original maturities of:
|
||||||||||||||||||||||||||||||||||||
Less than 6 Months
(2)
|
14,643 | 0.47 | 0.17 | 21,245 | 0.67 | 0.37 | 9,670 | 0.36 | 0.29 | |||||||||||||||||||||||||||
6 to less than 12 Months
(3)
|
22,849 | 0.73 | 0.20 | 38,959 | 1.22 | 0.59 | 54,855 | 2.04 | 0.73 | |||||||||||||||||||||||||||
12 to less than 30 Months
(4)
|
647,872 | 20.58 | 1.79 | 620,737 | 19.46 | 1.92 | 511,728 | 19.00 | 2.64 | |||||||||||||||||||||||||||
30 to less than 48 Months
(5)
|
91,702 | 2.91 | 2.21 | 88,659 | 2.78 | 2.36 | 17,479 | 0.65 | 3.03 | |||||||||||||||||||||||||||
48 to less than 72 Months
(6)
|
685,432 | 21.79 | 2.81 | 714,948 | 22.40 | 3.09 | 596,262 | 22.14 | 3.84 | |||||||||||||||||||||||||||
72 Months or more
|
66,612 | 2.12 | 3.71 | 36,024 | 1.13 | 4.68 | 40,517 | 1.50 | 4.80 | |||||||||||||||||||||||||||
Total certificate of deposit accounts
|
1,529,110 | 48.60 | 2.31 | 1,520,572 | 47.66 | 2.50 | 1,230,511 | 45.69 | 3.19 | |||||||||||||||||||||||||||
Total deposits
(1)
|
$ | 3,146,245 | 100.00 | % | 1.38 | % | $ | 3,190,610 | 100.00 | % | 1.53 | % | $ | 2,693,115 | 100.00 | % | 2.02 | % |
(1)
|
Included in the above balances are IRA and Keogh deposits totaling $168.8 million, $178.2 million and $169.3 million at December 31, 2011, 2010 and 2009, respectively.
|
(2)
|
Includes brokered deposits of $10.9 million, $15.7 million and $4.8 million at December 31, 2011, 2010 and 2009, respectively.
|
(3)
|
Includes brokered deposits of $0.5 million and $.7million at December 31, 2010 and 2009, respectively.
|
(4)
|
Includes brokered deposits of $4.2 million, $28.9 million and $90.7 million at December 31, 2011, 2010 and 2009, respectively.
|
(5)
|
Includes brokered deposits of $188.5 million, $187.3 million and $139.9 million at December 31, 2011, 2010 and 2009, respectively.
|
(6)
|
Includes brokered deposits of $241.2 million, $246.0 million and $159.6 million at December 31, 2011, 2010 and 2009, respectively.
|
(7)
|
Includes brokered deposits of $35.1 million and $35.0 million at December 31, 2010 and 2009, respectively.
|
At December 31, 2011
|
||||||||||||||||||||||||||||||||
At December 31,
|
Within
|
One to
|
||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
One Year
|
Three Years
|
Thereafter
|
Total
|
||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Interest rate:
|
||||||||||||||||||||||||||||||||
1.99% or less
|
(1 | ) | $ | 535,441 | $ | 411,507 | $ | 276,894 | $ | 351,034 | $ | 115,738 | $ | 68,669 | $ | 535,441 | ||||||||||||||||
2.00% to 2.99%
|
(2 | ) | 549,589 | 575,103 | 186,821 | 269,451 | 180,657 | 99,481 | 549,589 | |||||||||||||||||||||||
3.00% to 3.99%
|
(3 | ) | 401,650 | 414,464 | 408,580 | 31,815 | 186,910 | 182,925 | 401,650 | |||||||||||||||||||||||
4.00% to 4.99%
|
(4 | ) | 19,764 | 52,371 | 210,420 | 9,315 | 10,423 | 26 | 19,764 | |||||||||||||||||||||||
5.00% to 5.99%
|
(5 | ) | 22,666 | 67,127 | 147,796 | 995 | 18,500 | 3,171 | 22,666 | |||||||||||||||||||||||
Total
|
$ | 1,529,110 | $ | 1,520,572 | $ | 1,230,511 | $ | 662,610 | $ | 512,228 | $ | 354,272 | $ | 1,529,110 |
(1)
|
Includes brokered deposits of $104.0 million, $86.6.million and $18.6 million at December 31, 2011, 2010 and 2009, respectively.
|
(2)
|
Includes brokered deposits of $161.2 million, $156.9 million and $93.0 million at December 31, 2011, 2010 and 2009, respectively.
|
(3)
|
Includes brokered deposits of $177.8 million, $185.0 million and $178.0 million at December 31, 2011, 2010 and 2009, respectively.
|
(4)
|
Includes brokered deposits of $10.1 million and $21.9 million at December 31, 2010 and 2009 respectively.
|
(5)
|
Includes brokered deposits of $1.7 million, $39.9 million and $84.2 million at December 31, 2011, 2010 and 2009, respectively
|
Weighted
|
||||||||
Amount
|
Average Rate
|
|||||||
(Dollars in thousands)
|
||||||||
Maturity Period:
|
||||||||
Three months or less
|
$ | 66,396 | 1.38 | % | ||||
Over three through six months
|
51,008 | 1.93 | ||||||
Over six through 12 months
|
246,364 | 2.02 | ||||||
Over 12 months
|
201,897 | 2.77 | ||||||
Total
|
$ | 565,665 | 2.20 | % |
For the year ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Net deposits (withdrawls)
|
$ | (93,983 | ) | $ | 443,020 | $ | 156,696 | |||||
Amortization of premiums, net
|
1,187 | 820 | 677 | |||||||||
Interest on deposits
|
48,431 | 53,655 | 66,778 | |||||||||
Net increase (decrease) in deposits
|
$ | (44,365 | ) | $ | 497,495 | $ | 224,151 |
At December 31,
|
||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||
Percent
|
Percent
|
Percent
|
||||||||||||||||||||||||||||||||||
Average
|
of Total
|
Average
|
Average
|
of Total
|
Average
|
Average
|
of Total
|
Average
|
||||||||||||||||||||||||||||
Balance
|
Deposits
|
Cost
|
Balance
|
Deposits
|
Cost
|
Balance
|
Deposits
|
Cost
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Savings accounts
|
$ | 369,206 | 11.59 | 0.57 | % | $ | 413,657 | 13.94 | % | 0.81 | % | $ | 422,399 | 15.84 | % | 1.31 | % | |||||||||||||||||||
NOW accounts
|
838,648 | 26.33 | 0.79 | 683,390 | 23.04 | 1.10 | 373,854 | 14.02 | 1.58 | |||||||||||||||||||||||||||
Demand accounts
|
107,278 | 3.37 | - | 88,238 | 2.97 | - | 76,559 | 2.86 | - | |||||||||||||||||||||||||||
Mortgagors' escrow deposits
|
39,430 | 1.24 | 0.12 | 38,245 | 1.29 | 0.14 | 35,879 | 1.35 | 0.18 | |||||||||||||||||||||||||||
Total
|
1,354,562 | 42.53 | 0.65 | 1,223,530 | 41.24 | 0.89 | 908,691 | 34.07 | 1.27 | |||||||||||||||||||||||||||
Money market accounts
|
278,692 | 8.75 | 0.47 | 394,536 | 13.30 | 0.94 | 334,703 | 12.55 | 1.58 | |||||||||||||||||||||||||||
Certificate of deposit accounts
|
1,552,020 | 48.72 | 2.47 | 1,348,439 | 45.46 | 2.90 | 1,423,746 | 53.38 | 3.51 | |||||||||||||||||||||||||||
Total deposits
|
$ | 3,185,274 | 100.00 | % | 1.52 | % | $ | 2,966,505 | 100.00 | % | 1.81 | % | $ | 2,667,140 | 100.00 | % | 2.50 | % |
At or for the years ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Securities Sold with the Agreement to Repurchase
|
||||||||||||
Average balance outstanding
|
$ | 171,092 | $ | 174,750 | $ | 204,192 | ||||||
Maximum amount outstanding at any month
end during the period
|
185,300 | 186,900 | 222,439 | |||||||||
Balance outstanding at the end of period
|
185,300 | 166,000 | 186,900 | |||||||||
Weighted average interest rate during the period
|
4.07 | % | 4.30 | % | 4.33 | % | ||||||
Weighted average interest rate at end of period
|
3.77 | 4.35 | 4.19 | |||||||||
FHLB-NY Advances
|
||||||||||||
Average balance outstanding
|
$ | 491,017 | $ | 656,244 | $ | 804,545 | ||||||
Maximum amount outstanding at any month
end during the period
|
562,576 | 772,115 | 854,457 | |||||||||
Balance outstanding at the end of period
|
473,528 | 510,457 | 838,835 | |||||||||
Weighted average interest rate during the period
|
3.45 | % | 4.00 | % | 4.39 | % | ||||||
Weighted average interest rate at end of period
|
2.67 | 3.93 | 3.84 | |||||||||
Other Borrowings
|
||||||||||||
Average balance outstanding
|
$ | 31,299 | $ | 33,179 | $ | 34,465 | ||||||
Maximum amount outstanding at any month
end during the period
|
36,177 | 34,823 | 38,417 | |||||||||
Balance outstanding at the end of period
|
26,311 | 32,226 | 34,510 | |||||||||
Weighted average interest rate during the period
|
13.82 | % | 13.04 | % | 12.56 | % | ||||||
Weighted average interest rate at end of period
|
16.96 | 13.89 | 12.63 | |||||||||
Total Borrowings
|
||||||||||||
Average balance outstanding
|
$ | 693,408 | $ | 864,173 | $ | 1,043,202 | ||||||
Maximum amount outstanding at any month
end during the period
|
777,373 | 993,838 | 1,110,043 | |||||||||
Balance outstanding at the end of period
|
685,139 | 708,683 | 1,060,245 | |||||||||
Weighted average interest rate during the period
|
4.08 | % | 4.41 | % | 4.65 | % | ||||||
Weighted average interest rate at end of period
|
3.51 | 4.47 | 4.18 |
·
|
Limits on compensation incentives for risk taking by senior executive officers;
|
·
|
Recovery of any compensation paid based on inaccurate financial information;
|
·
|
Prohibition on “Golden Parachute Payments”;
|
·
|
Prohibition on compensation plans that would encourage manipulation of reported earnings to enhance the compensation of employees;
|
·
|
Publicly registered TARP recipients must establish a board compensation committee comprised entirely of independent directors, for the purpose of reviewing employee compensation plans;
|
·
|
Prohibition on bonuses, retention awards, or incentive compensation, except for payments of long term restricted stock;
|
·
|
Limitation on luxury expenditures;
|
·
|
TARP recipients may be required to permit a separate shareholder vote to approve the compensation of executives, as disclosed pursuant to the SEC’s compensation disclosure rules; and
|
·
|
The chief executive officer and chief financial officer of each TARP recipient will be required to provide a written certification of compliance with these standards to the SEC.
|
·
|
Amended the Housing Act of 1949 with respect to guaranteed rural housing loans to require mortgagees, upon either actual or imminent default of a guaranteed mortgage, to engage in loss mitigation actions as an alternative to foreclosure;
|
·
|
Amended the Foreclosure Prevention Act of 2008, with respect to emergency assistance for the redevelopment of abandoned and foreclosed homes;
|
·
|
Amended the Truth in Lending Act to modify the fiduciary duty requirements of servicers of pooled residential mortgages as duty requirements for any servicer of residential mortgages that agrees to enter into a qualified loss mitigation plan for residential mortgages originated before the date of enactment of the HFSTHA;
|
·
|
Amended the ESSA to extend to December 31, 2013 the temporary increase in FDIC deposit insurance;
|
·
|
Amended the FDIA to extend from five years to eight years the time period applicable to a DIF restoration plan;
|
·
|
Amended the FDIA by increasing the borrowing authority of the FDIC from $30 billion to $100 billion. Permits a temporary increase up to $500 billion, ending on December 31, 2010, in order to fund losses under TARP; and
|
·
|
Instructed the Secretary of the Treasury, when using certain ESSA funds, to prevent and mitigate foreclosures on residential properties.
|
·
|
Abolished the Company’s then primary regulator, the OTS, which was merged into the OCC on July 21, 2011.
|
·
|
Required the OCC to issue rules and conduct studies on a wide range of subjects by July 21, 2011.
|
·
|
Amends the Truth in Lending Act to impose new standards for residential mortgage loan originations on all lenders.
|
·
|
Adoption of a number of investor protection measures, including enhancing the Securities and Exchange Commission’s (“SEC”) enforcement powers and creating an expanded whistleblower program.
|
·
|
Created a new Consumer Financial Protection Bureau to write consumer-protection rules for banks and nonbank financial firms and ensure that consumers are protected from unfair, deceptive or abusive practices.
|
·
|
Directed the FDIC to base deposit-insurance assessments on assets minus tangible capital instead of on domestic deposits.
|
·
|
Permanently increased FDIC deposit-insurance coverage to $250,000.
|
·
|
Provides unlimited FDIC insurance for noninterest bearing transaction accounts in all banks effective December 31, 2010 through December 31, 2012.
|
·
|
Allows banks to pay interest on business checking accounts.
|
·
|
Establishes a Financial Stability Oversight Council to identify potential risks to the financial stability of the United States posed by the activities of or financial distress of large, interconnected financial institutions.
|
·
|
Creates greater regulatory oversight of derivatives financial markets.
|
·
|
Imposed new restrictions and established an independent office of the SEC to improve regulation of credit rating agencies.
|
·
|
Required regulatory agencies to issue new rules governing incentive compensation paid by financial institutions.
|
·
|
Imposed new executive compensation and corporate governance requirements on public companies.
|
·
|
New Primary Regulatory
. On July 21, 2011, the OTS, our then primary federal regulator, was eliminated and the OCC took over the regulation of all federal savings banks, such as the Savings Bank. The Federal Reserve acquired the OTS’s authority over all savings and loan holding companies, such as the Holding Company, and became the supervisor of all subsidiaries of savings and loan holding companies other than depository institutions. As a result, we became subject to regulation, supervision and examination by two federal banking agencies, the OCC and the Federal Reserve, rather than just by the OTS, as was previously the case. The Reform Act also provided for the creation of the Consumer Financial Protection Bureau (the “CFPB”). The CFPB has the authority to implement and enforce a variety of existing consumer protection statutes and to issue new regulations. As a new independent bureau within the FRB, it is possible that the CFPB will focus more attention on consumers and may impose requirements more severe than the previous bank regulatory agencies.
|
·
|
Consolidated Holding Company Capital Requirements.
The Reform Act requires the federal banking agencies to establish consolidated risk-based and leverage capital requirements for insured depository institutions, depository institution holding companies and systemically important nonbank financial companies. These requirements must be no less than those to which insured depository institutions are currently subject, and the new requirements will effectively eliminate the use of newly-issued trust preferred securities as a component of Tier 1 Capital for depository institution holding companies of our size. As a result, no later than the fifth anniversary of the effective date of the Reform Act, we will become subject to consolidated capital requirements to which we have not previously been subject.
|
·
|
Roll Back of Federal Preemption.
The Reform Act significantly rolls back the federal preemption of state consumer protection laws that federal savings associations and national banks currently enjoy by (1) permitting federal preemption of a state consumer financial law only if such law prevents or significantly interferes with the exercise of a federal savings association’s or national bank’s powers or such state law is preempted by another federal law, (2) mandating that any preemption decision be made on a case by case basis rather than a blanket rule and (3) ending the applicability of preemption to subsidiaries and affiliates of national banks and federal savings associations. As a result, we may now be subject to state laws in each state where we do business, and those laws may be interpreted and enforced differently in different states.
|
2011
|
2010
|
|||||||||||||||||||||||
High
|
Low
|
Dividend
|
High
|
Low
|
Dividend
|
|||||||||||||||||||
First Quarter
|
$ | 15.15 | $ | 13.57 | $ | 0.13 | $ | 13.86 | $ | 11.28 | $ | 0.13 | ||||||||||||
Second Quarter
|
15.09 | 12.02 | 0.13 | 15.00 | 11.86 | 0.13 | ||||||||||||||||||
Third Quarter
|
13.57 | 10.00 | 0.13 | 13.42 | 10.51 | 0.13 | ||||||||||||||||||
Fourth Quarter
|
13.72 | 10.70 | 0.13 | 14.68 | 11.52 | 0.13 |
Period
|
Total
Number
of Shares
Purchased
|
Average Price
Paid per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
Maximum
Number of
Shares That May
Yet Be Purchased
Under the Plans
or Programs
|
||||||||||||
October 1 to October 31, 2011
|
- | $ | - | - | 1,000,000 | |||||||||||
November 1 to November 30, 2011
|
187,438 | 12.06 | 187,438 | 812,562 | ||||||||||||
December 1 to December 31, 2011
|
74,600 | 12.38 | 74,600 | 737,962 | ||||||||||||
Total
|
262,038 | $ | 12.15 | 262,038 |
(c)
|
|||||||||||
Number of securities
|
|||||||||||
remaining available for
|
|||||||||||
(a)
|
(b)
|
future issuance under
|
|||||||||
Number of securities to
|
Weighted-average
|
equity compensation
|
|||||||||
be issued upon exercise
|
exercise price of
|
plans (excluding
|
|||||||||
of outstanding options,
|
outstanding options,
|
securities reflected in
|
|||||||||
warrants and rights
|
warrants and rights
|
column (a))
|
|||||||||
Equity compensation plans approved
by security holders
|
975,640 | $ | 15.16 | 727,377 | |||||||
Equity compensation plans not
approved by security holders
|
- | - | - | ||||||||
975,640 | $ | 15.16 | 727,377 |
(1)
|
Consists of 1,380 shares available for future non-full value awards and 725,997 shares available for future full value awards.
|
Period Ending | ||||||
Index
|
12/31/06
|
12/31/07
|
12/31/08
|
12/31/09
|
12/31/10
|
12/31/11
|
Flushing Financial Corporation
|
100.00
|
96.87
|
74.58
|
74.69
|
96.87
|
91.14
|
NASDAQ Composite
|
100.00
|
110.66
|
66.42
|
96.54
|
114.06
|
113.16
|
SNL Thrift
|
100.00
|
59.99
|
38.18
|
35.6
|
37.2
|
31.3
|
SNL Mid-Atlantic Thrift
|
100.00
|
82.33
|
68.23
|
65.08
|
74.72
|
57.65
|
At or for the years ended December 31,
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||
Selected Financial Condition Data
|
||||||||||||||||||||
Total assets
|
$ | 4,287,949 | $ | 4,324,745 | $ | 4,143,246 | $ | 3,949,471 | $ | 3,354,519 | ||||||||||
Loans, net
|
3,198,537 | 3,248,630 | 3,200,159 | 2,960,662 | 2,702,118 | |||||||||||||||
Securities available for sale
|
812,530 | 804,189 | 683,804 | 747,261 | 440,100 | |||||||||||||||
Deposits
|
3,146,245 | 3,190,610 | 2,693,115 | 2,468,834 | 2,025,447 | |||||||||||||||
Borrowed funds
|
685,139 | 708,683 | 1,060,245 | 1,138,949 | 1,072,551 | |||||||||||||||
Total stockholders' equity
|
416,911 | 390,045 | 360,144 | 301,492 | 233,654 | |||||||||||||||
Common stockholders' equity
|
416,911 | 390,045 | 360,144 | 231,492 | 233,654 | |||||||||||||||
Book value per common share
(1)
|
$ | 13.49 | $ | 12.48 | $ | 11.57 | $ | 10.70 | $ | 10.96 | ||||||||||
Selected Operating Data
|
||||||||||||||||||||
Interest and dividend income
|
$ | 224,498 | $ | 229,628 | $ | 230,061 | $ | 216,701 | $ | 193,562 | ||||||||||
Interest expense
|
76,723 | 91,767 | 115,275 | 128,972 | 122,624 | |||||||||||||||
Net interest income
|
147,775 | 137,861 | 114,786 | 87,729 | 70,938 | |||||||||||||||
Provision for loan losses
|
21,500 | 21,000 | 19,500 | 5,600 | - | |||||||||||||||
Net interest income after provision
for loan losses
|
126,275 | 116,861 | 95,286 | 82,129 | 70,938 | |||||||||||||||
Non-interest income:
|
||||||||||||||||||||
Net gains on sales of securities
and loans
|
511 | 7 | 1,613 | 354 | 700 | |||||||||||||||
Other-than-temporary credit impairment
charge on securities
|
(1,578 | ) | (2,045 | ) | (5,894 | ) | (27,575 | ) | (4,710 | ) | ||||||||||
Net gain from fair value adjustments
|
1,960 | 47 | 4,968 | 20,090 | 2,685 | |||||||||||||||
Other income
|
9,388 | 10,291 | 10,268 | 14,099 | 11,578 | |||||||||||||||
Total non-interest income
|
10,281 | 8,300 | 10,955 | 6,968 | 10,253 | |||||||||||||||
Non-interest expense
|
77,739 | 70,385 | 64,909 | 54,781 | 50,076 | |||||||||||||||
Income before income tax provision
|
58,817 | 54,776 | 41,332 | 34,316 | 31,115 | |||||||||||||||
Income tax provision
|
23,469 | 15,941 | 15,771 | 12,057 | 10,930 | |||||||||||||||
Net income
|
$ | 35,348 | $ | 38,835 | $ | 25,561 | $ | 22,259 | $ | 20,185 | ||||||||||
Basic earnings per common share
(2)
|
$ | 1.15 | $ | 1.28 | $ | 0.91 | $ | 1.10 | $ | 1.02 | ||||||||||
Diluted earnings per common share
(2)
|
$ | 1.15 | $ | 1.28 | $ | 0.91 | $ | 1.09 | $ | 1.01 | ||||||||||
Dividends declared per common share
(2)
|
$ | 0.52 | $ | 0.52 | $ | 0.52 | $ | 0.52 | $ | 0.48 | ||||||||||
Dividend payout ratio
|
45.2 | % | 40.6 | % | 57.1 | % | 47.3 | % | 47.1 | % |
(Footnotes on the following page) |
At or for the years ended December 31,
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Selected Financial Ratios and Other Data
|
||||||||||||||||||||
Performance ratios:
|
||||||||||||||||||||
Return on average assets
|
0.82
|
%
|
0.92
|
%
|
0.63
|
%
|
0.62
|
%
|
0.66
|
%
|
||||||||||
Return on average equity
|
8.76
|
10.32
|
7.80
|
9.55
|
9.15
|
|||||||||||||||
Average equity to average assets
|
9.36
|
8.89
|
8.06
|
6.54
|
7.19
|
|||||||||||||||
Equity to total assets
|
9.72
|
9.02
|
8.69
|
7.63
|
6.97
|
|||||||||||||||
Interest rate spread
|
3.46
|
3.27
|
2.76
|
2.43
|
2.23
|
|||||||||||||||
Net interest margin
|
3.61
|
3.43
|
2.96
|
2.60
|
2.44
|
|||||||||||||||
Non-interest expense to average assets
|
1.80
|
1.66
|
1.60
|
1.54
|
1.63
|
|||||||||||||||
Efficiency ratio
|
49.18
|
47.37
|
51.76
|
55.11
|
60.20
|
|||||||||||||||
Average interest-earning assets to average
interest-bearing liabilities
|
1.08
|
x
|
1.07
|
x
|
1.07
|
x
|
1.04
|
x
|
1.05
|
x
|
||||||||||
Regulatory capital ratios: (3)
|
||||||||||||||||||||
Core capital (well capitailized = 5%)
|
9.63
|
%
|
9.18
|
%
|
8.84
|
%
|
7.92
|
%
|
7.27
|
%
|
||||||||||
Tier 1 risk-based capital (well capitalized =6%)
|
14.26
|
13.07
|
12.78
|
12.57
|
10.76
|
|||||||||||||||
Total risk-based capital (well capitalized =10%)
|
15.32
|
13.98
|
13.49
|
13.02
|
11.20
|
|||||||||||||||
Asset quality ratios:
|
||||||||||||||||||||
Non-performing loans to gross loans (4)
|
3.65
|
%
|
3.44
|
%
|
2.60
|
%
|
1.35
|
%
|
0.22
|
%
|
||||||||||
Non-performing assets to total assets (5)
|
2.87
|
2.75
|
2.19
|
1.03
|
0.18
|
|||||||||||||||
Net charge-offs to average loans
|
0.59
|
0.42
|
0.33
|
0.04
|
0.02
|
|||||||||||||||
Allowance for loan losses to gross loans
|
0.94
|
0.85
|
0.63
|
0.37
|
0.25
|
|||||||||||||||
Allowance for loan losses to total
non-performing assets (5)
|
24.63
|
23.31
|
22.39
|
27.09
|
112.57
|
|||||||||||||||
Allowance for loan losses to total
non-performing loans (4)
|
25.84
|
24.71
|
24.38
|
27.59
|
112.57
|
|||||||||||||||
Full-service customer facilities
|
16
|
15
|
15
|
14
|
14
|
(1)
|
Calculated by dividing common stockholders’ equity of $416.9 million and $390.0 million at December 31, 2011 and 2010, respectively, by 30,904,177 and 31,255,934 shares outstanding at December 31, 2011 and 2010, respectively. Common stockholders’ equity is total stockholders’ equity less the liquidation preference value of preferred shares outstanding.
|
(2)
|
The shares held in the Company’s Employee Benefit Trust are not included in shares outstanding for purposes of calculating earnings per share.
|
(3)
|
Represents Flushing Savings Bank’s capital ratios, which exceeded all minimum regulatory capital requirements during the periods presented.
|
(4)
|
Non-performing loans consist of non-accrual loans and loans delinquent 90 days or more that are still accruing.
|
(5)
|
Non-performing assets consist of non-performing loans, real estate owned and non-performing investment securities.
|
·
|
continue our emphasis on the origination of multi-family residential mortgage loans;
|
·
|
transition from a traditional thrift to a more ‘commercial-like’ banking institution;
|
·
|
increase our commitment to the multi-cultural marketplace, with a particular focus on the Asian community in Queens;
|
·
|
maintain asset quality;
|
·
|
manage deposit growth and maintain a low cost of funds through
|
§
|
business banking deposits,
|
§
|
municipal deposits through government banking, and
|
§
|
new customer relationships via iGObanking.com®;
|
·
|
cross sell to lending and deposit customers;
|
·
|
take advantage of market disruptions to attract talent and customers from competitors;
|
·
|
manage interest rate risk and capital: and
|
·
|
manage enterprise-wide risk.
|
Loan
|
Loan Balances
|
|||||||||||
Originations and
|
December 31,
|
Percent of
|
||||||||||
Purchases
|
2011
|
Gross Loans
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Multi-family residential
|
$ | 249,010 | $ | 1,391,221 | 43.28 | % | ||||||
Commercial real estate
|
7,070 | 580,783 | 18.07 | |||||||||
One-to-four family ―
mixed-use property
|
23,754 | 693,932 | 21.59 | |||||||||
One-to-four family ― residential
|
24,075 | 220,431 | 6.86 | |||||||||
Co-operative apartment
|
- | 5,505 | 0.17 | |||||||||
Construction
|
1,723 | 47,140 | 1.47 | |||||||||
Small Business Administration
|
3,528 | 14,039 | 0.44 | |||||||||
Taxi Medallion
|
30,832 | 54,328 | 1.69 | |||||||||
Commercial Business and Other
|
71,211 | 206,614 | 6.43 | |||||||||
Total
|
$ | 411,203 | $ | 3,213,993 | 100.00 | % |
§
|
When borrowers requested a refinance of an existing mortgage loan when they had acquired the property or obtained their existing loan within two years of the request, we generally required evidence of improvements to the property that increased the property value to support the additional funds and generally restricted the loan-to-value ratio for the new loan to 65% of the appraised value.
|
§
|
The debt coverage ratio was increased and the loan-to-value ratio decreased for income producing properties with fewer than ten units. This required the borrower to have an additional investment in the property than previously required and provided additional protection should rental units become vacant.
|
§
|
Borrowers who owned multiple properties were required to provide detail on all their properties to allow us to evaluate their total cash flow requirements. Based on this review, we may decline the loan application, or require a lower loan-to-value ratio and a higher debt coverage ratio.
|
§
|
Income producing properties with existing rents that were at or above the current market rent for similar properties were required to have a higher debt coverage ratio to provide protection should rents decline.
|
§
|
Borrowers purchasing properties were required to demonstrate they had satisfactory liquidity and management ability to carry the property should vacancies occur or increase.
|
§
|
We discontinued originating home equity lines of credit without verifying the borrower’s income. This was done in two stages. Beginning in May 2008, we began verifying the borrower’s income when the home equity line of credit exceeded $100,000. Beginning in October 2009, we verified the income of all borrowers applying for a home equity line of credit.
|
§
|
We discontinued offering one-to-four family residential property mortgage loans to self-employed individuals based on stated income and verifiable assets in June 2010.
|
§
|
All borrowers obtaining a business loan were required to submit a complete financial information package, regardless of the amount of the loan. Previously, borrowers for SBA Express loans and other loans under $150,000 had been exempt from this requirement.
|
§
|
Background checks on all borrowers and guarantors for business loans were expanded to identify and review information in more public records, including a search for judgments, liens, negative press articles, and affiliations with other entities.
|
§
|
The guarantee of related business entities providing cash flow to the borrowing entity became required for business loans.
|
§
|
The allowable percentage of inventory and accounts receivable pledged as collateral for a business loan was reduced.
|
§
|
We established specific risk acceptance criteria for private not for profit schools.
|
Interest Rate Sensitivity Gap Analysis at December 31, 2011
|
||||||||||||||||||||||||||||
More Than
|
More Than
|
More Than
|
More Than
|
|||||||||||||||||||||||||
Three
|
Three
|
One Year
|
Three Years
|
Five Years
|
||||||||||||||||||||||||
Months
|
Months To
|
To Three
|
To Five
|
To Ten
|
More Than
|
|||||||||||||||||||||||
And Less
|
One Year
|
Years
|
Years
|
Years
|
Ten Years
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Interest-Earning Assets
|
||||||||||||||||||||||||||||
Mortgage loans
|
$ | 240,004 | $ | 406,854 | $ | 1,099,785 | $ | 800,105 | $ | 294,599 | $ | 97,665 | $ | 2,939,012 | ||||||||||||||
Other loans
|
73,891 | 35,050 | 41,933 | 20,545 | 62,438 | 41,124 | 274,981 | |||||||||||||||||||||
Short-term securities
(1)
|
49,784 | - | - | - | - | - | 49,784 | |||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||
Mortgage-backed securities
|
35,728 | 64,961 | 111,638 | 92,777 | 226,964 | 215,220 | 747,288 | |||||||||||||||||||||
Other
|
22,369 | 11,144 | 2,039 | 8,959 | 9,021 | 11,710 | 65,242 | |||||||||||||||||||||
Total interest-earning assets
|
421,776 | 518,009 | 1,255,395 | 922,386 | 593,022 | 365,719 | 4,076,307 | |||||||||||||||||||||
Interest-Bearing Liabilities
|
||||||||||||||||||||||||||||
Savings accounts
|
26,222 | 78,666 | 209,776 | 17,483 | 17,483 | - | 349,630 | |||||||||||||||||||||
NOW accounts
|
- | - | - | - | - | 919,029 | 919,029 | |||||||||||||||||||||
Money market accounts
|
26,024 | 78,072 | 96,087 | - | - | - | 200,183 | |||||||||||||||||||||
Certificate of deposit accounts
|
159,692 | 502,918 | 512,228 | 311,542 | 42,730 | - | 1,529,110 | |||||||||||||||||||||
Mortgagors' escrow deposits
|
- | - | - | - | - | 29,786 | 29,786 | |||||||||||||||||||||
Borrowings
|
62,000 | 44,311 | 129,211 | 282,883 | 166,734 | - | 685,139 | |||||||||||||||||||||
Total interest-bearing liabilities
(2)
|
$ | 273,938 | $ | 703,967 | $ | 947,302 | $ | 611,908 | $ | 226,947 | $ | 948,815 | $ | 3,712,877 | ||||||||||||||
Interest rate sensitivity gap
|
$ | 147,838 | $ | (185,958 | ) | $ | 308,093 | $ | 310,478 | $ | 366,075 | $ | (583,096 | ) | $ | 363,430 | ||||||||||||
Cumulative interest-rate sensitivity gap
|
$ | 147,838 | $ | (38,120 | ) | $ | 269,973 | $ | 580,451 | $ | 946,526 | $ | 363,430 | |||||||||||||||
Cumulative interest-rate sensitivity gap
as a percentage of total assets
|
3.45 | % | -0.89 | % | 6.30 | % | 13.54 | % | 22.07 | % | 8.48 | % | ||||||||||||||||
Cumulative net interest-earning assets
as a percentage of interest-bearing
liabilities
|
153.97 | % | 96.10 | % | 114.02 | % | 122.88 | % | 134.24 | % | 109.79 | % |
(1)
|
Consists of interest-earning deposits.
|
(2)
|
Does not include non-interest bearing demand accounts totaling $118.5 million at December 31, 2011.
|
Projected Percentage Change In
|
Net Portfolio
|
|||||||||||
Change in Interest Rate
|
Net Interest Income
|
Net Portfolio Value
|
Value Ratio
|
|||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||
-200 basis points
|
-1.24
|
%
|
-4.64
|
%
|
36.55
|
%
|
7.37
|
%
|
15.74
|
%
|
10.93
|
%
|
-100 basis points
|
-1.22
|
-2.13
|
18.28
|
5.49
|
13.97
|
10.79
|
||||||
Base interest rate
|
―
|
―
|
―
|
―
|
12.22
|
10.36
|
||||||
+100 basis points
|
-3.28
|
-3.21
|
-15.07
|
-14.06
|
10.76
|
9.13
|
||||||
+200 basis points
|
-6.42
|
-7.55
|
-28.79
|
-31.78
|
9.34
|
7.47
|
For the year ended December 31,
|
||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||||||||||||
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
Mortgage loans, net
(1)(2)
|
$ | 2,929,647 | $ | 176,777 | 6.03 |
%
|
$ | 2,956,514 | $ | 182,086 | 6.16 |
%
|
$ | 2,865,591 | $ | 182,132 | 6.36 |
%
|
||||||||||||||||||
Other loans, net
(1)(2)
|
290,970 | 14,677 | 5.04 | 281,977 | 15,383 | 5.46 | 220,304 | 12,185 | 5.53 | |||||||||||||||||||||||||||
Total loans, net
|
3,220,617 | 191,454 | 5.94 | 3,238,491 | 197,469 | 6.10 | 3,085,895 | 194,317 | 6.30 | |||||||||||||||||||||||||||
Mortgage-backed
securities
|
749,347 | 30,999 | 4.14 | 673,000 | 30,246 | 4.49 | 690,181 | 33,430 | 4.84 | |||||||||||||||||||||||||||
Other securities
|
58,431 | 1,933 | 3.31 | 54,069 | 1,819 | 3.36 | 55,805 | 2,223 | 3.98 | |||||||||||||||||||||||||||
Total securities
|
807,778 | 32,932 | 4.08 | 727,069 | 32,065 | 4.41 | 745,986 | 35,653 | 4.78 | |||||||||||||||||||||||||||
Interest-earning deposits
and federal funds sold
|
62,042 | 112 | 0.18 | 51,951 | 94 | 0.18 | 47,639 | 91 | 0.19 | |||||||||||||||||||||||||||
Total interest-earning
assets
|
4,090,437 | 224,498 | 5.49 | 4,017,511 | 229,628 | 5.72 | 3,879,520 | 230,061 | 5.93 | |||||||||||||||||||||||||||
Other assets
|
220,931 | 217,039 | 186,087 | |||||||||||||||||||||||||||||||||
Total assets
|
$ | 4,311,368 | $ | 4,234,550 | $ | 4,065,607 | ||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||||
Savings accounts
|
$ | 369,206 | 2,091 | 0.57 | $ | 413,657 | 3,334 | 0.81 | $ | 422,399 | 5,529 | 1.31 | ||||||||||||||||||||||||
NOW accounts
|
838,648 | 6,610 | 0.79 | 683,390 | 7,511 | 1.10 | 373,854 | 5,906 | 1.58 | |||||||||||||||||||||||||||
Money market accounts
|
278,692 | 1,309 | 0.47 | 394,536 | 3,713 | 0.94 | 334,703 | 5,290 | 1.58 | |||||||||||||||||||||||||||
Certificate of deposit
accounts
|
1,552,020 | 38,372 | 2.47 | 1,348,439 | 39,044 | 2.90 | 1,423,746 | 49,987 | 3.51 | |||||||||||||||||||||||||||
Total due to depositors
|
3,038,566 | 48,382 | 1.59 | 2,840,022 | 53,602 | 1.89 | 2,554,702 | 66,712 | 2.61 | |||||||||||||||||||||||||||
Mortgagors' escrow
accounts
|
39,430 | 49 | 0.12 | 38,245 | 53 | 0.14 | 35,879 | 66 | 0.18 | |||||||||||||||||||||||||||
Total interest-bearing
deposits
|
3,077,996 | 48,431 | 1.57 | 2,878,267 | 53,655 | 1.86 | 2,590,581 | 66,778 | 2.58 | |||||||||||||||||||||||||||
Borrowings
|
693,408 | 28,292 | 4.08 | 864,173 | 38,112 | 4.41 | 1,043,202 | 48,497 | 4.65 | |||||||||||||||||||||||||||
Total interest-bearing
liabilities
|
3,771,404 | 76,723 | 2.03 | 3,742,440 | 91,767 | 2.45 | 3,633,783 | 115,275 | 3.17 | |||||||||||||||||||||||||||
Non interest-bearing
demand deposits
|
107,278 | 88,238 | 76,559 | |||||||||||||||||||||||||||||||||
Other liabilities
|
29,356 | 27,581 | 27,379 | |||||||||||||||||||||||||||||||||
Total liabilities
|
3,908,038 | 3,858,259 | 3,737,721 | |||||||||||||||||||||||||||||||||
Equity
|
403,330 | 376,291 | 327,886 | |||||||||||||||||||||||||||||||||
Total liabilities and
equity
|
$ | 4,311,368 | $ | 4,234,550 | $ | 4,065,607 | ||||||||||||||||||||||||||||||
Net interest income /
net interest rate spread
(3)
|
$ | 147,775 | 3.46 |
%
|
$ | 137,861 | 3.27 |
%
|
$ | 114,786 | 2.76 |
%
|
||||||||||||||||||||||||
Net interest-earning assets /
net interest margin
(4)
|
$ | 319,033 | 3.61 |
%
|
$ | 275,071 | 3.43 |
%
|
$ | 245,737 | 2.96 |
%
|
||||||||||||||||||||||||
Ratio of interest-earning
assets to interest-bearing
liabilities
|
1.08 |
X
|
1.07 |
X
|
1.07 |
X
|
(1)
|
Average balances include non-accrual loans.
|
(2)
|
Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $1.3 million, $1.2 million and $0.7 million for the years ended December 31, 2011, 2010 and 2009, respectively.
|
(3)
|
Interest rate spread represents the difference between the average rate on interest-earning assets and the average cost of interest-bearing liabilities.
|
(4)
|
Net interest margin represents net interest income before the provision for loan losses divided by average interest-earning assets.
|
Increase (Decrease) in Net Interest Income
|
||||||||||||||||||||||||
Year Ended December 31, 2011
|
Year Ended December 31, 2010
|
|||||||||||||||||||||||
Compared to
|
Compared to
|
|||||||||||||||||||||||
Year Ended December 31, 2010
|
Year Ended December 31, 2009
|
|||||||||||||||||||||||
Due to
|
Due to
|
|||||||||||||||||||||||
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Mortgage loans, net
|
$ | (1,598 | ) | $ | (3,711 | ) | $ | (5,309 | ) | $ | 5,734 | $ | (5,780 | ) | $ | (46 | ) | |||||||
Other loans, net
|
487 | (1,193 | ) | (706 | ) | 3,355 | (157 | ) | 3,198 | |||||||||||||||
Mortgage-backed securities
|
3,239 | (2,486 | ) | 753 | (816 | ) | (2,368 | ) | (3,184 | ) | ||||||||||||||
Other securities
|
142 | (28 | ) | 114 | (67 | ) | (337 | ) | (404 | ) | ||||||||||||||
Interest-earning deposits and
federal funds sold
|
18 | - | 18 | 8 | (5 | ) | 3 | |||||||||||||||||
Total interest-earning assets
|
2,288 | (7,418 | ) | (5,130 | ) | 8,214 | (8,647 | ) | (433 | ) | ||||||||||||||
Interest-Bearing Liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Savings accounts
|
(331 | ) | (912 | ) | (1,243 | ) | (113 | ) | (2,082 | ) | (2,195 | ) | ||||||||||||
NOW accounts
|
1,489 | (2,390 | ) | (901 | ) | 3,799 | (2,194 | ) | 1,605 | |||||||||||||||
Money market accounts
|
(890 | ) | (1,514 | ) | (2,404 | ) | 829 | (2,406 | ) | (1,577 | ) | |||||||||||||
Certificate of deposit accounts
|
5,511 | (6,183 | ) | (672 | ) | (2,553 | ) | (8,390 | ) | (10,943 | ) | |||||||||||||
Mortgagors' escrow accounts
|
2 | (6 | ) | (4 | ) | 3 | (16 | ) | (13 | ) | ||||||||||||||
Borrowings
|
(7,123 | ) | (2,697 | ) | (9,820 | ) | (7,984 | ) | (2,401 | ) | (10,385 | ) | ||||||||||||
Total interest-bearing liabilities
|
(1,342 | ) | (13,702 | ) | (15,044 | ) | (6,019 | ) | (17,489 | ) | (23,508 | ) | ||||||||||||
Net change in net interest income
|
$ | 3,630 | $ | 6,284 | $ | 9,914 | $ | 14,233 | $ | 8,842 | $ | 23,075 |
Payments Due By Period
|
||||||||||||||||||||
Total
|
Less Than
1 Year
|
1 - 3
Years
|
3 - 5
Years
|
More
Than
5 Years
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Borrowings
|
$ | 685,139 | $ | 314,311 | $ | 129,211 | $ | 212,883 | $ | 28,734 | ||||||||||
Deposits
|
3,146,245 | 2,279,745 | 512,228 | 311,542 | 42,730 | |||||||||||||||
Loan commitments
|
78,606 | 78,606 | - | - | - | |||||||||||||||
Capital lease obligations
|
- | - | - | - | - | |||||||||||||||
Operating lease obligations
|
35,561 | 3,565 | 7,034 | 5,851 | 19,111 | |||||||||||||||
Purchase obligations
|
13,342 | 4,420 | 4,929 | 3,993 | - | |||||||||||||||
Pension and other postretirement
benefits
|
13,693 | 913 | 956 | 1,043 | 10,781 | |||||||||||||||
Deferred compensation plans
|
8,690 | 499 | 862 | 862 | 6,467 | |||||||||||||||
Total
|
$ | 3,981,276 | $ | 2,682,059 | $ | 655,220 | $ | 536,174 | $ | 107,823 |
December 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(Dollars in thousands, except per share data)
|
||||||||
Assets
|
|
|
||||||
Cash and due from banks
|
$ | 55,721 | $ | 47,789 | ||||
Securities available for sale:
|
||||||||
Mortgage-backed securities (including assets pledged of $595,631 and
$608,890 at December 31, 2011 and 2010, respectively; $37,787 and
$51,475 at fair value pursuant to the fair value option at
December 31, 2011 and 2010, respectively)
|
747,288 | 754,077 | ||||||
Other securities ($30,942 and $21,574 at fair value pursuant to the fair
value option at December 31, 2011 and 2010, respectively)
|
65,242 | 50,112 | ||||||
Loans
|
3,228,881 | 3,276,329 | ||||||
Less: Allowance for loan losses
|
(30,344 | ) | (27,699 | ) | ||||
Net loans
|
3,198,537 | 3,248,630 | ||||||
Interest and dividends receivable
|
17,965 | 19,475 | ||||||
Bank premises and equipment, net
|
24,417 | 23,041 | ||||||
Federal Home Loan Bank of New York stock
|
30,245 | 31,606 | ||||||
Bank owned life insurance
|
83,454 | 76,129 | ||||||
Goodwill
|
16,127 | 16,127 | ||||||
Core deposit intangible, net
|
937 | 1,405 | ||||||
Other assets
|
48,016 | 56,354 | ||||||
Total assets
|
$ | 4,287,949 | $ | 4,324,745 | ||||
Liabilities
|
||||||||
Due to depositors:
|
||||||||
Non-interest bearing
|
$ | 118,507 | $ | 96,198 | ||||
Interest-bearing
|
2,997,952 | 3,067,097 | ||||||
Mortgagors' escrow deposits
|
29,786 | 27,315 | ||||||
Borrowed funds ($26,311 and $32,226 at fair value pursuant to the
fair value option at December 31, 2011 and 2010, respectively)
|
499,839 | 542,683 | ||||||
Securities sold under agreements to repurchase
|
185,300 | 166,000 | ||||||
Other liabilities
|
39,654 | 35,407 | ||||||
Total liabilities
|
3,871,038 | 3,934,700 | ||||||
Commitments and contingencies (Note 14)
|
||||||||
Stockholders' Equity
|
||||||||
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued
|
- | - | ||||||
Common stock ($0.01 par value; 100,000,000 shares authorized; 31,530,595 shares
and 31,255,934 shares issued at December 31, 2011 and 2010, respectively;
30,904,177 shares and 31,255,934 shares outstanding at December 31, 2011 and
2010, respectively)
|
315 | 313 | ||||||
Additional paid-in capital
|
195,628 | 189,348 | ||||||
Treasury stock, at average cost (626,418 shares and none at December 31, 2011
and 2010, respectively)
|
(7,355 | ) | - | |||||
Retained earnings
|
223,510 | 204,128 | ||||||
Accumulated other comprehensive income (loss), net of taxes
|
4,813 | (3,744 | ) | |||||
Total stockholders' equity
|
416,911 | 390,045 | ||||||
Total liabilities and stockholders' equity
|
$ | 4,287,949 | $ | 4,324,745 |
For the years ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(In thousands, except per share data)
|
||||||||||||
Interest and dividend income
|
||||||||||||
Interest and fees on loans
|
$ | 191,454 | $ | 197,469 | $ | 194,317 | ||||||
Interest and dividends on securities:
|
||||||||||||
Interest
|
32,121 | 31,252 | 34,523 | |||||||||
Dividends
|
811 | 813 | 1,130 | |||||||||
Other interest income
|
112 | 94 | 91 | |||||||||
Total interest and dividend income
|
224,498 | 229,628 | 230,061 | |||||||||
Interest expense
|
||||||||||||
Deposits
|
48,431 | 53,655 | 66,778 | |||||||||
Other interest expense
|
28,292 | 38,112 | 48,497 | |||||||||
Total interest expense
|
76,723 | 91,767 | 115,275 | |||||||||
Net interest income
|
147,775 | 137,861 | 114,786 | |||||||||
Provision for loan losses
|
21,500 | 21,000 | 19,500 | |||||||||
Net interest income after provision for loan losses
|
126,275 | 116,861 | 95,286 | |||||||||
Non-interest income
|
||||||||||||
Other-than-temporary impairment ("OTTI") charge
|
(9,365 | ) | (7,130 | ) | (17,454 | ) | ||||||
Less: Non-credit portion of OTTI charge recorded in
Other Comprehensive Income, before taxes
|
7,787 | 5,085 | 11,560 | |||||||||
Net OTTI charge recognized in earnings
|
(1,578 | ) | (2,045 | ) | (5,894 | ) | ||||||
Loan fee income
|
1,941 | 1,695 | 1,755 | |||||||||
Banking services fee income
|
1,699 | 1,747 | 1,755 | |||||||||
Net gain on sale of loans held for sale
|
343 | - | 208 | |||||||||
Net gain on sale of loans
|
168 | 17 | 4 | |||||||||
Net (loss) gain on sale of securities
|
- | (10 | ) | 1,401 | ||||||||
Net gain from fair value adjustments
|
1,960 | 47 | 4,968 | |||||||||
Federal Home Loan Bank of New York stock dividends
|
1,502 | 2,102 | 2,237 | |||||||||
Bank owned life insurance
|
2,769 | 2,638 | 2,476 | |||||||||
Other income
|
1,477 | 2,109 | 2,045 | |||||||||
Total non-interest income
|
10,281 | 8,300 | 10,955 | |||||||||
Non-interest expense
|
||||||||||||
Salaries and employee benefits
|
38,262 | 34,785 | 29,934 | |||||||||
Occupancy and equipment
|
7,803 | 7,246 | 6,874 | |||||||||
Professional services
|
6,697 | 6,344 | 5,716 | |||||||||
FDIC deposit insurance
|
4,378 | 4,889 | 6,407 | |||||||||
Data processing
|
4,458 | 3,996 | 4,121 | |||||||||
Depreciation and amortization of premises and equipment
|
3,185 | 2,795 | 2,663 | |||||||||
Other real estate owned / foreclosure expense
|
2,471 | 1,194 | 950 | |||||||||
Other operating expenses
|
10,485 | 9,136 | 8,244 | |||||||||
Total non-interest expense
|
77,739 | 70,385 | 64,909 | |||||||||
Income before income taxes
|
58,817 | 54,776 | 41,332 | |||||||||
Provision for income taxes
|
||||||||||||
Federal
|
17,749 | 19,343 | 12,187 | |||||||||
State and local
|
5,720 | (3,402 | ) | 3,584 | ||||||||
Total provision for income taxes
|
23,469 | 15,941 | 15,771 | |||||||||
Net income
|
$ | 35,348 | $ | 38,835 | $ | 25,561 | ||||||
Preferred dividends and amortization of issuance costs
|
$ | - | $ | - | $ | 4,443 | ||||||
Net income available to common shareholders
|
$ | 35,348 | $ | 38,835 | $ | 21,118 | ||||||
Basic earnings per common share
|
$ | 1.15 | $ | 1.28 | $ | 0.91 | ||||||
Diluted earnings per common share
|
$ | 1.15 | $ | 1.28 | $ | 0.91 |
For the years ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
Preferred Stock
|
||||||||||||
Balance, beginning of year
|
$ | - | $ | - | $ | 1 | ||||||
Preferred shares redeemed (70,000 preferred shares for the year ended
December 31, 2009)
|
- | - | (1 | ) | ||||||||
Balance, end of year
|
- | - | - | |||||||||
Common Stock
|
||||||||||||
Balance, beginning of year
|
313 | 311 | 216 | |||||||||
Shares issued upon the exercise of stock options (155,061, 37,054 and
96,742 common shares for the years ended December 31, 2011,
2010 and 2009, respectively)
|
1 | 1 | 1 | |||||||||
Shares issued upon vesting of restricted stock unit awards (119,600,
87,821 and 78,598 common shares for the years ended December 31, 2011,
2010 and 2009, respectively)
|
1 | 1 | 1 | |||||||||
Shares issued in common stock offering (9,330,010 common shares
for the year ended December 31, 2009)
|
- | - | 93 | |||||||||
Balance, end of year
|
315 | 313 | 311 | |||||||||
Additional Paid-In Capital
|
||||||||||||
Balance, beginning of year
|
189,348 | 185,842 | 150,662 | |||||||||
Amortization of preferred stock issuance costs, net
|
- | - | 109 | |||||||||
Preferred shares redeemed (70,000 preferred shares for the year ended
December 31, 2009)
|
- | - | (69,597 | ) | ||||||||
Award of common shares released from Employee Benefit Trust
(144,312, 134,124 and 169,353 common shares for the years ended
December 31, 2011, 2010 and 2009, respectively)
|
1,541 | 1,167 | 886 | |||||||||
Shares issued upon vesting of restricted stock unit awards
(127,653, 103,109 and 95,779 common shares for the years ended
December 31, 2011, 2010 and 2009, respectively)
|
1,668 | 1,394 | 1,513 | |||||||||
Options exercised (155,061, 74,340 and 97,642 common shares
for the years ended December 31, 2011, 2010 and 2009, respectively)
|
1,825 | 446 | 669 | |||||||||
Stock-based compensation activity, net
|
954 | 487 | 340 | |||||||||
Stock-based income tax (provision) benefit
|
292 | 12 | (184 | ) | ||||||||
Shares issued in common stock offering (9,330,010 common shares
for the year ended December 31, 2009)
|
- | - | 101,444 | |||||||||
Balance, end of year
|
195,628 | 189,348 | 185,842 |
For the years ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
Treasury Stock
|
||||||||||||
Balance, beginning of year
|
$ | - | $ | (36 | ) | $ | - | |||||
Purchases of common shares outstanding (624,088 common shares for
the year ended December 31, 2011)
|
(7,316 | ) | - | - | ||||||||
Issuance upon exercise of stock options (23,249, 37,266 and 26,458
common shares for the years ended December 31, 2011, 2010
and 2009, respectively)
|
326 | 515 | 268 | |||||||||
Repurchase of restricted stock awards to satisfy tax obligations
(29,838, 26,443 and 22,186 common shares for the years ended
December 31, 2011, 2010 and 2009, respectively
|
(406 | ) | (347 | ) | (232 | ) | ||||||
Shares issued upon vesting of restricted stock unit awards (8,053,
18,583 and 17,181 common shares for the years ended December 31,
2011, 2010 and 2009, respectively)
|
95 | 238 | 179 | |||||||||
Purchase of common shares to fund options exercised (3,794, 26,011
and 24,848 common shares for the years ended December 31, 2011
2010 and 2009 , respectively)
|
(54 | ) | (370 | ) | (251 | ) | ||||||
Balance, end of year
|
(7,355 | ) | - | (36 | ) | |||||||
Unearned Compensation
|
||||||||||||
Balance, beginning of year
|
- | (575 | ) | (1,300 | ) | |||||||
Release of shares from Employee Benefit Trust (168,759 and
212,314 common shares for the years ended December 31, 2010
and 2009, respectively)
|
- | 575 | 725 | |||||||||
Balance, end of year
|
- | - | (575 | ) | ||||||||
Retained Earnings
|
||||||||||||
Balance, beginning of year
|
204,128 | 181,181 | 172,216 | |||||||||
Net income
|
35,348 | 38,835 | 25,561 | |||||||||
Stock options exercised (23,129, 74,320 and 25,558 common
shares for the years ended December 31, 2011, 2010 and 2009,
respectively)
|
(50 | ) | (92 | ) | (52 | ) | ||||||
Shares issued upon vesting of restricted stock unit awards (7,853,
3,295 common shares for the years ended December 31, 2011,
and 2010, respectively)
|
(6 | ) | (8 | ) | - | |||||||
Cash dividends declared and paid on common shares ($0.52 per share for
each of the years ended December 31, 2011, 2010 and 2009, respectively)
|
(15,910 | ) | (15,788 | ) | (11,985 | ) | ||||||
Cash dividends declared and paid on preferred shares (5.00% cumulative
preferred dividends for the year ended December 31, 2009)
|
- | - | (3,004 | ) | ||||||||
Amortization of preferred stock issuance costs including deemed dividend upon
redemption of preferred shares
|
- | - | (1,555 | ) | ||||||||
Balance, end of year
|
223,510 | 204,128 | 181,181 |
For the years ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Taxes
|
||||||||||||
Balance, beginning of year
|
$ | (3,744 | ) | $ | (6,579 | ) | $ | (20,303 | ) | |||
Amortization of prior service costs (credit), net of taxes of $20, $20 and ($21)
for the years ended December 31, 2011, 2010 and 2009, respectively
|
(25 | ) | (25 | ) | 26 | |||||||
Amortization of net actuarial losses, net of taxes of ($243), ($140) and ($135) for the
years ended December 31, 2011, 2010 and 2009, respectively
|
311 | 175 | 168 | |||||||||
Unrecognized actuarial (losses) gains, net of taxes $1,932, $513 and ($178) for
years ended December 31, 2011, 2010 and 2009, respectively
|
(2,505 | ) | (715 | ) | 203 | |||||||
Unrecognized prior service credit, net of taxes ($512) for December 31, 2009
|
- | - | 641 | |||||||||
Change in net unrealized gains on securities available for sale, net of
taxes of approximately ($7,706), ($1,810) and ($8,231) for the years ended
December 31, 2011, 2010 and 2009, respectively
|
9,890 | 2,249 | 10,187 | |||||||||
Reclassification adjustment for losses included in net
income, net of taxes of approximately ($692), ($904) and ($1,994) for the
years ended December 31, 2011, 2010 and 2009, respectively
|
886 | 1,151 | 2,499 | |||||||||
Balance, end of year
|
4,813 | (3,744 | ) | (6,579 | ) | |||||||
Total Stockholders' Equity
|
$ | 416,911 | $ | 390,045 | $ | 360,144 | ||||||
Comprehensive Income
|
||||||||||||
Net income
|
$ | 35,348 | $ | 38,835 | $ | 25,561 | ||||||
Other comprehensive income, net of tax
|
||||||||||||
Unrecognized actuarial (losses) gains
|
(2,505 | ) | (715 | ) | 203 | |||||||
Unrecognized prior service credit
|
- | - | 641 | |||||||||
Amortization of actuarial losses
|
311 | 175 | 168 | |||||||||
Amortization of prior service costs (credit)
|
(25 | ) | (25 | ) | 26 | |||||||
OTTI charges included in income
|
886 | 1,145 | 3,278 | |||||||||
Reclassification adjustment for losses (gains) included in income
|
- | 6 | (779 | ) | ||||||||
Unrealized gains on securities
|
9,890 | 2,249 | 10,187 | |||||||||
Comprehensive income
|
$ | 43,905 | $ | 41,670 | $ | 39,285 |
For the years ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Operating Activities
|
||||||||||||
Net income
|
$ | 35,348 | $ | 38,835 | $ | 25,561 | ||||||
Adjustments to reconcile net income to net cash provided
by operating activities:
|
||||||||||||
Provision for loan losses
|
21,500 | 21,000 | 19,500 | |||||||||
Depreciation and amortization of premises and equipment
|
3,185 | 2,795 | 2,663 | |||||||||
Origination of loans held for sale
|
(3,865 | ) | - | (2,005 | ) | |||||||
Proceeds from sale of loans held for sale
|
4,208 | - | 2,213 | |||||||||
Net gain on sales of loans held for sale
|
(343 | ) | - | (208 | ) | |||||||
Net gain on sales of loans (including delinquent loans)
|
(168 | ) | (17 | ) | (4 | ) | ||||||
Net loss (gain) on sales of securities
|
- | 10 | (1,401 | ) | ||||||||
Other-than-temporary impairment charge on securities
|
1,578 | 2,045 | 5,894 | |||||||||
Amortization of premium, net of accretion of discount
|
5,872 | 5,212 | 4,393 | |||||||||
Fair value adjustment for financial assets and financial liabilities
|
(1,960 | ) | (47 | ) | (4,968 | ) | ||||||
Income from bank owned life insurance
|
(2,769 | ) | (2,638 | ) | (2,476 | ) | ||||||
Stock based compensation expense
|
2,686 | 2,249 | 2,067 | |||||||||
Deferred compensation
|
512 | 244 | 1 | |||||||||
Amortization of core deposit intangibles
|
468 | 469 | 468 | |||||||||
Excess tax provision (benefits) from stock-based payment arrangements
|
(292 | ) | (12 | ) | 184 | |||||||
Deferred income tax provision (benefit)
|
685 | (8,041 | ) | 7,872 | ||||||||
Net decrease (increase) in prepaid FDIC assesment
|
4,068 | 4,572 | (15,815 | ) | ||||||||
Increase in other assets
|
(1,638 | ) | (4,402 | ) | (11,662 | ) | ||||||
Increase (decrease) in other liabilities
|
(4,355 | ) | 4,913 | (4,253 | ) | |||||||
Net cash provided by operating activities
|
64,720 | 67,187 | 28,024 | |||||||||
Investing Activities
|
||||||||||||
Purchases of premises and equipment
|
(4,561 | ) | (3,006 | ) | (2,687 | ) | ||||||
Net redemption of Federal Home Loan Bank-NY shares
|
1,361 | 14,362 | 1,697 | |||||||||
Purchases of securities available for sale
|
(157,741 | ) | (397,909 | ) | (189,017 | ) | ||||||
Proceeds from sales and calls of securities available for sale
|
8,000 | 91,788 | 61,784 | |||||||||
Proceeds from maturities and prepayments of
|
||||||||||||
securities available for sale
|
154,600 | 188,700 | 207,601 | |||||||||
Net originations and repayments of loans
|
12,773 | (67,047 | ) | (225,999 | ) | |||||||
Purchases of loans
|
(19,053 | ) | (14,675 | ) | (43,264 | ) | ||||||
Proceeds from sale of delinquent loans
|
27,817 | 8,845 | 6,233 | |||||||||
Purchase of bank owned life insurance
|
(4,556 | ) | (4,260 | ) | (9,256 | ) | ||||||
Proceeds from sale of Real Estate Owned
|
4,053 | 2,283 | 114 | |||||||||
Net cash provided by (used in) investing activities
|
22,693 | (180,919 | ) | (192,794 | ) |
For the years ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Financing Activities
|
||||||||||||
Net increase in non-interest bearing deposits
|
$ | 22,309 | $ | 4,822 | $ | 21,752 | ||||||
Net (decrease) increase in interest bearing deposits
|
(70,332 | ) | 491,035 | 206,038 | ||||||||
Net increase (decrease) in mortgagors' escrow deposits
|
2,471 | 524 | (4,434 | ) | ||||||||
Net (repayments) proceeds from short-term borrowed funds
|
- | (127,000 | ) | 98,700 | ||||||||
Proceeds from long-term borrowings
|
245,447 | 50,470 | 79,911 | |||||||||
Repayment of long-term borrowings
|
(258,076 | ) | (271,091 | ) | (255,035 | ) | ||||||
Purchases of treasury stock
|
(7,722 | ) | (347 | ) | (231 | ) | ||||||
Excess tax benefits (provision) from stock-based payment arrangements
|
292 | 12 | (184 | ) | ||||||||
Proceeds from issuance of common stock upon exercise
of stock options
|
2,040 | 458 | 627 | |||||||||
Net proceeds from issuance of common shares
|
- | - | 101,537 | |||||||||
Net repayment from redemption of preferred
stock and common stock warrant
|
- | - | (70,900 | ) | ||||||||
Cash dividends paid
|
(15,910 | ) | (15,788 | ) | (14,989 | ) | ||||||
Net cash (used in) provided by financing activities
|
(79,481 | ) | 133,095 | 162,792 | ||||||||
Net (decrease) increase in cash and cash equivalents
|
7,932 | 19,363 | (1,978 | ) | ||||||||
Cash and cash equivalents, beginning of year
|
47,789 | 28,426 | 30,404 | |||||||||
Cash and cash equivalents, end of year
|
$ | 55,721 | $ | 47,789 | $ | 28,426 | ||||||
Supplemental Cash Flow Disclosure
|
||||||||||||
Interest paid
|
$ | 75,914 | $ | 91,943 | $ | 116,124 | ||||||
Income taxes paid
|
22,917 | 26,770 | 9,630 | |||||||||
Taxes paid if excess tax benefits on stock-based compensation
were not tax deductible
|
23,209 | 26,782 | 9,446 | |||||||||
Non-cash activities:
|
||||||||||||
Securities purchase transaction, not yet settled
|
- | - | 5,804 | |||||||||
Loans transferred to Real Estate Owned
|
7,286 | 4,813 | 2,612 | |||||||||
Loans provided for the sale of Real Estate Owned
|
1,655 | 3,037 | 325 |
2011
|
2010
|
2009
|
||||||||||
(In thousands, except per share data)
|
||||||||||||
Net income, as reported
|
$ | 35,348 | $ | 38,835 | $ | 25,561 | ||||||
Preferred dividends and amortization of issuance costs
|
- | - | (4,443 | ) | ||||||||
Net income available to common shareholders
|
$ | 35,348 | $ | 38,835 | $ | 21,118 | ||||||
Divided by:
|
||||||||||||
Weighted average common shares outstanding
|
30,623 | 30,336 | 23,238 | |||||||||
Weighted average common stock equivalents
|
31 | 31 | 10 | |||||||||
Total weighted average common shares outstanding and
common stock equivalents
|
30,654 | 30,367 | 23,248 | |||||||||
Basic earnings per common share
|
$ | 1.15 | $ | 1.28 | $ | 0.91 | ||||||
Diluted earnings per common share
|
$ | 1.15 | $ | 1.28 | $ | 0.91 |
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Multi-family residential
|
$ | 1,391,221 | $ | 1,252,176 | ||||
Commercial real estate
|
580,783 | 662,794 | ||||||
One-to-four family
―
mixed-use property
|
693,932 | 728,810 | ||||||
One-to-four family
―
residential
|
220,431 | 241,376 | ||||||
Co-operative apartments
|
5,505 | 6,215 | ||||||
Construction
|
47,140 | 75,519 | ||||||
Small Business Administration
|
14,039 | 17,511 | ||||||
Taxi medallion
|
54,328 | 88,264 | ||||||
Commercial business and other
|
206,614 | 187,161 | ||||||
Gross loans
|
3,213,993 | 3,259,826 | ||||||
Unearned loan fees and deferred costs, net
|
14,888 | 16,503 | ||||||
Total loans
|
$ | 3,228,881 | $ | 3,276,329 |
December 31, 2011
|
December 31, 2010
|
|||||||||||||||
(Dollars in thousands)
|
Number
of contracts
|
Recorded
investment
|
Number
of contracts
|
Recorded
investment
|
||||||||||||
Multi-family residential
|
11 | $ | 9,412 | 5 | $ | 7,946 | ||||||||||
Commercial real estate
|
2 | 2,499 | 3 | 5,815 | ||||||||||||
One-to-four family - mixed-use property
|
3 | 795 | 1 | 206 | ||||||||||||
Construction
|
1 | 5,888 | - | - | ||||||||||||
Commercial business and other
|
1 | 2,000 | - | - | ||||||||||||
Total performing troubled debt restructured
|
18 | $ | 20,594 | 9 | $ | 13,967 |
December 31, 2011
|
December 31, 2010
|
|||||||||||||||
(Dollars in thousands)
|
Number
of contracts
|
Recorded
investment
|
Number
of contracts
|
Recorded
investment
|
||||||||||||
Multi-family residential
|
- | $ | - | - | $ | - | ||||||||||
Commercial real estate
|
2 | 4,340 | 1 | 1,496 | ||||||||||||
One-to-four family - mixed-use property
|
3 | 1,193 | 3 | 1,287 | ||||||||||||
One-to-four family - residential
|
- | - | 1 | 491 | ||||||||||||
Construction
|
1 | 11,673 | - | - | ||||||||||||
Total troubled debt restructurings
that subsequently defaulted
|
6 | $ | 17,206 | 5 | $ | 3,274 |
At December 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Loans ninety days or more past due
and still accruing:
|
||||||||
Multi-family residential
|
$ | 6,287 | $ | 103 | ||||
Commercial real estate
|
92 | 3,328 | ||||||
Commercial Business and other
|
- | 6 | ||||||
Total
|
6,379 | 3,437 | ||||||
Non-accrual mortgage loans:
|
||||||||
Multi-family residential
|
19,946 | 35,633 | ||||||
Commercial real estate
|
19,895 | 22,806 | ||||||
One-to-four family mixed-use property
|
28,429 | 30,478 | ||||||
One-to-four family residential
|
12,766 | 10,695 | ||||||
Co-operative apartments
|
152 | - | ||||||
Construction
|
14,721 | 4,465 | ||||||
Total
|
95,909 | 104,077 | ||||||
Non-accrual non-mortgage loans:
|
||||||||
Small Business Administration
|
493 | 1,159 | ||||||
Commercial Business and other
|
14,660 | 3,419 | ||||||
Total
|
15,153 | 4,578 | ||||||
Total non-accrual loans
|
111,062 | 108,655 | ||||||
Total non-accrual loans and ninety days
or more past due and still accruing
|
$ | 117,441 | $ | 112,092 |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Interest income that would have been recognized had the loans performed
in accordance with their original terms
|
$ | 9,654 | $ | 9,460 | $ | 5,839 | ||||||
Less: Interest income included in the results of operations
|
2,126 | 2,018 | 960 | |||||||||
Total foregone interest
|
$ | 7,528 | $ | 7,442 | $ | 4,879 |
(in thousands)
|
30 - 59 Days
Past Due
|
60 - 89 Days
Past Due
|
Greater
than
90 Days
|
Total Past
Due
|
Current
|
Total Loans
|
||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Multi-family residential
|
$ | 20,083 | $ | 6,341 | $ | 26,233 | $ | 52,657 | $ | 1,338,564 | $ | 1,391,221 | ||||||||||||
Commercial real estate
|
10,804 | 1,797 | 19,987 | 32,588 | 548,195 | 580,783 | ||||||||||||||||||
One-to-four family - mixed-use property
|
20,480 | 3,027 | 27,950 | 51,457 | 642,475 | 693,932 | ||||||||||||||||||
One-to-four family - residential
|
4,699 | 1,769 | 12,766 | 19,234 | 201,197 | 220,431 | ||||||||||||||||||
Co-operative apartments
|
- | - | 152 | 152 | 5,353 | 5,505 | ||||||||||||||||||
Construction loans
|
5,065 | - | 14,721 | 19,786 | 27,354 | 47,140 | ||||||||||||||||||
Small Business Administration
|
16 | 41 | 452 | 509 | 13,530 | 14,039 | ||||||||||||||||||
Taxi medallion
|
71 | - | - | 71 | 54,257 | 54,328 | ||||||||||||||||||
Commercial business and other
|
5,476 | 966 | 10,241 | 16,683 | 189,931 | 206,614 | ||||||||||||||||||
Total
|
$ | 66,694 | $ | 13,941 | $ | 112,502 | $ | 193,137 | $ | 3,020,856 | $ | 3,213,993 |
(in thousands)
|
30 - 59 Days
Past Due
|
60 - 89 Days
Past Due
|
Greater
than
90 Days
|
Total Past
Due
|
Current
|
Total Loans
|
||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Multi-family residential
|
$ | 30,799 | $ | 7,014 | $ | 35,736 | $ | 73,549 | $ | 1,178,627 | $ | 1,252,176 | ||||||||||||
Commercial real estate
|
17,167 | 2,181 | 26,134 | 45,482 | 617,312 | 662,794 | ||||||||||||||||||
One-to-four family - mixed-use property
|
19,596 | 6,376 | 30,478 | 56,450 | 672,360 | 728,810 | ||||||||||||||||||
One-to-four family - residential
|
4,826 | 1,046 | 10,695 | 16,567 | 224,809 | 241,376 | ||||||||||||||||||
Co-operative apartments
|
133 | - | - | 133 | 6,082 | 6,215 | ||||||||||||||||||
Construction loans
|
2,900 | 5,485 | 4,465 | 12,850 | 62,669 | 75,519 | ||||||||||||||||||
Small Business Administration
|
418 | 991 | 1,159 | 2,568 | 14,943 | 17,511 | ||||||||||||||||||
Taxi medallion
|
- | - | - | - | 88,264 | 88,264 | ||||||||||||||||||
Commercial business and other
|
4,534 | 3 | 3,425 | 7,962 | 179,199 | 187,161 | ||||||||||||||||||
Total
|
$ | 80,373 | $ | 23,096 | $ | 112,092 | $ | 215,561 | $ | 3,044,265 | $ | 3,259,826 |
(in thousands)
|
Multi-family
residential |
Commercial
real estate |
One-to-four
family - mixed-use property |
One-to-four
family - residential |
Co-operative
apartments |
Construction
loans |
Small Business
Administration |
Taxi
medallion |
Commercial
business and other |
Total
|
||||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 9,007 | $ | 4,905 | $ | 5,997 | $ | 938 | $ | 17 | $ | 589 | $ | 1,303 | $ | 639 | $ | 4,304 | $ | 27,699 | ||||||||||||||||||||
Charge-off's
|
6,807 | 5,172 | 2,644 | 2,226 | - | 1,088 | 871 | - | 642 | 19,450 | ||||||||||||||||||||||||||||||
Recoveries
|
153 | 184 | 123 | 63 | - | - | 60 | - | 12 | 595 | ||||||||||||||||||||||||||||||
Provision
|
8,914 | 5,293 | 1,838 | 2,874 | 63 | 1,167 | 495 | (598 | ) | 1,454 | 21,500 | |||||||||||||||||||||||||||||
Ending balance
|
$ | 11,267 | $ | 5,210 | $ | 5,314 | $ | 1,649 | $ | 80 | $ | 668 | $ | 987 | $ | 41 | $ | 5,128 | $ | 30,344 | ||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 346 | $ | 189 | $ | 718 | $ | - | $ | 58 | $ | 268 | $ | 88 | $ | - | $ | 2,539 | $ | 4,206 | ||||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 10,921 | $ | 5,021 | $ | 4,596 | $ | 1,649 | $ | 22 | $ | 400 | $ | 899 | $ | 41 | $ | 2,589 | $ | 26,138 | ||||||||||||||||||||
Financing Recevables:
|
||||||||||||||||||||||||||||||||||||||||
Ending balance
|
$ | 1,391,221 | $ | 580,783 | $ | 693,932 | $ | 220,431 | $ | 5,505 | $ | 47,140 | $ | 14,039 | $ | 54,328 | $ | 206,614 | $ | 3,213,993 | ||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 58,528 | $ | 53,511 | $ | 51,527 | $ | 17,470 | $ | 356 | $ | 31,126 | $ | 470 | $ | - | $ | 29,417 | $ | 242,426 | ||||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 1,332,693 | $ | 527,272 | $ | 642,405 | $ | 202,961 | $ | 5,149 | $ | 16,014 | $ | 13,569 | $ | 54,328 | $ | 177,197 | $ | 2,971,567 |
(in thousands)
|
Multi-family
residential |
Commercial
real estate |
One-to-four
family - mixed-use property |
One-to-four
family - residential |
Co-operative
apartments |
Construction
loans |
Small Business
Administration |
Taxi
medallion |
Commercial
business and
other
|
Total
|
||||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 6,581 | $ | 4,050 | $ | 4,339 | $ | 844 | $ | 17 | $ | 1,281 | $ | 965 | $ | 583 | $ | 1,664 | $ | 20,324 | ||||||||||||||||||||
Charge-off's
|
5,790 | 2,686 | 2,580 | 236 | - | 1,879 | 925 | - | 499 | 14,595 | ||||||||||||||||||||||||||||||
Recoveries
|
17 | 51 | 115 | - | - | - | 173 | - | 614 | 970 | ||||||||||||||||||||||||||||||
Provision
|
8,199 | 3,490 | 4,123 | 330 | - | 1,187 | 1,090 | 56 | 2,525 | 21,000 | ||||||||||||||||||||||||||||||
Ending balance
|
$ | 9,007 | $ | 4,905 | $ | 5,997 | $ | 938 | $ | 17 | $ | 589 | $ | 1,303 | $ | 639 | $ | 4,304 | $ | 27,699 | ||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 5,290 | $ | 3,100 | $ | 3,960 | $ | 290 | $ | - | $ | - | $ | - | $ | - | $ | 330 | $ | 12,970 | ||||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 3,717 | $ | 1,805 | $ | 2,037 | $ | 648 | $ | 17 | $ | 589 | $ | 1,303 | $ | 639 | $ | 3,974 | $ | 14,729 | ||||||||||||||||||||
Financing Recevables:
|
||||||||||||||||||||||||||||||||||||||||
Ending balance
|
$ | 1,252,176 | $ | 662,794 | $ | 728,810 | $ | 241,376 | $ | 6,215 | $ | 75,519 | $ | 17,511 | $ | 88,264 | $ | 187,161 | $ | 3,259,826 | ||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 51,626 | $ | 32,120 | $ | 33,539 | $ | 10,874 | $ | - | $ | 30,589 | $ | 1,432 | $ | - | $ | 14,866 | $ | 175,046 | ||||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 1,200,550 | $ | 630,674 | $ | 695,271 | $ | 230,502 | $ | 6,215 | $ | 44,930 | $ | 16,079 | $ | 88,264 | $ | 172,295 | $ | 3,084,780 |
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||
Multi-family residential
|
$ | 33,046 | $ | 36,705 | $ | - | $ | 35,792 | $ | 910 | ||||||||||
Commercial real estate
|
38,748 | 42,345 | - | 37,511 | 1,355 | |||||||||||||||
One-to-four family mixed-use property
|
33,831 | 37,233 | - | 32,687 | 447 | |||||||||||||||
One-to-four family residential
|
14,343 | 16,599 | - | 11,578 | 196 | |||||||||||||||
Co-operative apartments
|
153 | 153 | - | 110 | - | |||||||||||||||
Construction
|
10,995 | 11,380 | - | 11,166 | 672 | |||||||||||||||
Non-mortgage loans:
|
||||||||||||||||||||
Small Business Administration
|
275 | 500 | - | 69 | 3 | |||||||||||||||
Taxi Medallion
|
- | - | - | - | - | |||||||||||||||
Commercial Business and other
|
11,160 | 11,162 | - | 13,801 | 339 | |||||||||||||||
Total loans with no related allowance recorded
|
142,551 | 156,077 | - | 142,714 | 3,922 | |||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||
Multi-family residential
|
13,046 | 13,110 | 346 | 12,270 | 635 | |||||||||||||||
Commercial real estate
|
3,018 | 3,018 | 189 | 3,301 | 140 | |||||||||||||||
One-to-four family mixed-use property
|
6,111 | 6,213 | 718 | 2,720 | 412 | |||||||||||||||
One-to-four family residential
|
- | - | - | 143 | - | |||||||||||||||
Co-operative apartments
|
- | - | - | - | - | |||||||||||||||
Construction
|
17,561 | 17,561 | 268 | 21,296 | 453 | |||||||||||||||
Non-mortgage loans:
|
||||||||||||||||||||
Small Business Administration
|
195 | 195 | 88 | 777 | 10 | |||||||||||||||
Taxi Medallion
|
- | - | - | - | - | |||||||||||||||
Commercial Business and other
|
7,620 | 8,353 | 2,539 | 7,905 | 209 | |||||||||||||||
Total loans with an allowance recorded
|
47,754 | 48,653 | 4,206 | 48,463 | 1,870 | |||||||||||||||
Total Impaired Loans:
|
||||||||||||||||||||
Total mortgage loans
|
$ | 171,055 | $ | 184,520 | $ | 1,579 | $ | 168,625 | $ | 5,231 | ||||||||||
Total non-mortgage loans
|
$ | 19,250 | $ | 20,210 | $ | 2,627 | $ | 22,552 | $ | 561 |
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||
Multi-family residential
|
$ | 18,403 | $ | 19,200 | $ | - | $ | 16,930 | $ | 838 | ||||||||||
Commercial real estate
|
12,474 | 12,547 | - | 10,008 | 443 | |||||||||||||||
One-to-four family mixed-use property
|
7,107 | 7,455 | - | 6,976 | 104 | |||||||||||||||
One-to-four family residential
|
8,394 | 8,394 | - | 6,556 | 97 | |||||||||||||||
Co-operative apartments
|
- | - | - | 20 | - | |||||||||||||||
Construction
|
30,589 | 32,340 | - | 22,258 | 1,116 | |||||||||||||||
Non-mortgage loans:
|
||||||||||||||||||||
Small Business Administration
|
- | - | - | - | - | |||||||||||||||
Taxi Medallion
|
- | - | - | - | - | |||||||||||||||
Commercial Business and other
|
8,745 | 8,825 | - | 4,271 | 558 | |||||||||||||||
Total loans with no related allowance recorded
|
85,712 | 88,761 | - | 67,019 | 3,156 | |||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||
Multi-family residential
|
33,223 | 37,649 | 5,290 | 27,507 | 396 | |||||||||||||||
Commercial real estate
|
19,646 | 22,443 | 3,100 | 14,799 | 401 | |||||||||||||||
One-to-four family mixed-use property
|
26,432 | 28,622 | 3,960 | 23,551 | 290 | |||||||||||||||
One-to-four family residential
|
2,480 | 2,681 | 290 | 2,041 | - | |||||||||||||||
Co-operative apartments
|
- | - | - | - | - | |||||||||||||||
Construction
|
- | - | - | 1,750 | - | |||||||||||||||
Non-mortgage loans:
|
||||||||||||||||||||
Small Business Administration
|
1,432 | 1,432 | 768 | 1,233 | 82 | |||||||||||||||
Taxi Medallion
|
- | - | - | - | - | |||||||||||||||
Commercial Business and other
|
6,121 | 6,842 | 2,449 | 4,739 | 193 | |||||||||||||||
Total loans with an allowance recorded
|
89,334 | 99,669 | 15,857 | 75,620 | 1,362 | |||||||||||||||
Total Impaired Loans:
|
||||||||||||||||||||
Total mortgage loans
|
$ | 158,748 | $ | 171,331 | $ | 12,640 | $ | 132,396 | $ | 3,685 | ||||||||||
Total non-mortgage loans
|
$ | 16,298 | $ | 17,099 | $ | 3,217 | $ | 10,243 | $ | 833 |
(In thousands)
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total
|
|||||||||||||||
Multi-family residential
|
$ | 17,135 | $ | 41,393 | $ | - | $ | - | $ | 58,528 | ||||||||||
Commercial real estate
|
12,264 | 41,247 | - | - | 53,511 | |||||||||||||||
One-to-four family - mixed-use property
|
17,393 | 33,831 | - | - | 51,224 | |||||||||||||||
One-to-four family - residential
|
3,127 | 14,343 | - | - | 17,470 | |||||||||||||||
Co-operative apartments
|
203 | 153 | - | - | 356 | |||||||||||||||
Construction loans
|
2,570 | 28,555 | - | - | 31,125 | |||||||||||||||
Small Business Administration
|
666 | 256 | 214 | - | 1,136 | |||||||||||||||
Commercial business and other
|
13,585 | 17,613 | 1,169 | - | 32,367 | |||||||||||||||
Total loans
|
$ | 66,943 | $ | 177,391 | $ | 1,383 | $ | - | $ | 245,717 |
(In thousands)
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Total
|
|||||||||||||||
Multi-family residential
|
$ | 20,277 | $ | 51,626 | $ | - | $ | - | $ | 71,903 | ||||||||||
Commercial real estate
|
13,228 | 32,120 | - | - | 45,348 | |||||||||||||||
One-to-four family - mixed-use property
|
15,546 | 33,539 | - | - | 49,085 | |||||||||||||||
One-to-four family - residential
|
2,849 | 10,874 | - | - | 13,723 | |||||||||||||||
Co-operative apartments
|
- | - | - | - | - | |||||||||||||||
Construction loans
|
5,945 | 30,589 | - | - | 36,534 | |||||||||||||||
Small Business Administration
|
558 | 1,432 | - | - | 1,990 | |||||||||||||||
Commercial business and other
|
14,302 | 13,628 | 1,238 | - | 29,168 | |||||||||||||||
Total loans
|
$ | 72,705 | $ | 173,808 | $ | 1,238 | $ | - | $ | 247,751 |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Balance, beginning of year
|
$ | 27,699 | $ | 20,324 | $ | 11,028 | ||||||
Provision for loan losses
|
21,500 | 21,000 | 19,500 | |||||||||
Charge-offs
|
(19,450 | ) | (14,595 | ) | (10,371 | ) | ||||||
Recoveries
|
595 | 970 | 167 | |||||||||
Balance, end of year
|
$ | 30,344 | $ | 27,699 | $ | 20,324 |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Multi-family residential
|
$ | 6,654 | $ | 5,773 | $ | 2,326 | ||||||
Commercial real estate
|
4,988 | 2,634 | 728 | |||||||||
One-to-four family
―
mixed-use property
|
2,521 | 2,465 | 1,009 | |||||||||
One-to-four family
―
residential
|
2,163 | 236 | 284 | |||||||||
Construction
|
1,088 | 1,879 | 1,075 | |||||||||
Small Business Administration
|
811 | 752 | 1,062 | |||||||||
Commercial business and other
|
630 | (114 | ) | 3,720 | ||||||||
Total net loan charge-offs
|
$ | 18,855 | $ | 13,625 | $ | 10,204 |
For the years ended
|
||||||||||||
December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Balance at beginning of year
|
$ | 1,588 | $ | 2,262 | $ | 125 | ||||||
Acquisitions
|
7,286 | 4,813 | 2,612 | |||||||||
Reductions to carrying value
|
(209 | ) | (75 | ) | (27 | ) | ||||||
Sales
|
(5,486 | ) | (5,412 | ) | (448 | ) | ||||||
Balance at end of year
|
$ | 3,179 | $ | 1,588 | $ | 2,262 |
Amortized
Cost
|
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. government agencies
|
$ | 1,980 | $ | 2,039 | $ | 59 | $ | - | ||||||||
Other
|
26,557 | 21,242 | 9 | 5,324 | ||||||||||||
Corporate
|
20,777 | 20,592 | - | 185 | ||||||||||||
Mutual funds
|
21,369 | 21,369 | - | - | ||||||||||||
Total other securities
|
70,683 | 65,242 | 68 | 5,509 | ||||||||||||
REMIC and CMO
|
460,824 | 473,639 | 22,796 | 9,981 | ||||||||||||
GNMA
|
62,040 | 67,632 | 5,592 | - | ||||||||||||
FNMA
|
175,627 | 182,630 | 7,003 | - | ||||||||||||
FHLMC
|
22,556 | 23,387 | 831 | - | ||||||||||||
Total mortgage-backed securities
|
721,047 | 747,288 | 36,222 | 9,981 | ||||||||||||
Total securities available for sale
|
$ | 791,730 | $ | 812,530 | $ | 36,290 | $ | 15,490 |
Total
|
Less than 12 months
|
12 months or more
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Other
|
$ | 6,238 | $ | 5,324 | $ | 1,997 | $ | 2 | $ | 4,241 | $ | 5,322 | ||||||||||||
Corporate
|
17,980 | 185 | 17,980 | 185 | - | - | ||||||||||||||||||
Total other securities
|
24,218 | 5,509 | 19,977 | 187 | 4,241 | 5,322 | ||||||||||||||||||
REMIC and CMO
|
38,684 | 9,981 | 12,560 | 124 | 26,124 | 9,857 | ||||||||||||||||||
Total securities
available for sale
|
$ | 62,902 | $ | 15,490 | $ | 32,537 | $ | 311 | $ | 30,365 | $ | 15,179 |
Deferrals/Defaults
|
||||||||||||||||||||||||||||||||
Issuer
Type
|
Class
|
Performing
Banks
|
Amortized
Cost
|
Fair
Value
|
Cumulative
Credit Related
OTTI
|
Actual as a
Percentage
of Original
Security
|
Expected
Percentage
of Performing
Collateral
|
Current
Lowest
Rating
|
||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Single issuer
|
n/a | 1 | 300 | 261 | - |
None
|
None
|
BB+
|
||||||||||||||||||||||||
Single issuer
|
n/a | 1 | 500 | 509 | - |
None
|
None
|
BB-
|
||||||||||||||||||||||||
Pooled issuer
|
B1 | 19 | 5,617 | 2,280 | 2,196 | 28.2% | 0.9% | C | ||||||||||||||||||||||||
Pooled issuer
|
C1 | 19 | 3,645 | 1,700 | 1,542 | 25.6% | 1.0% | C | ||||||||||||||||||||||||
Total
|
$ | 10,062 | $ | 4,750 | $ | 3,738 |
Amortized | Fair | Outstanding |
Cumulative
OTTI
Charges
|
Year of |
Current
Lowest
|
Collateral Located in:
|
Average
FICO
|
||||||||||||||||||||||||||||||||||||||||||
Security
|
Cost
|
Value
|
Principal
|
Recorded
|
Issuance
|
Maturity
|
Rating
|
CA
|
FL
|
VA
|
NY
|
NJ
|
MD
|
Score
|
|||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||||||||||||
1
|
$ | 11,864 | $ | 8,418 | $ | 13,184 | $ | 3,279 | 2006 |
05/25/36
|
D | 45 | % | 15 | % | 722 | |||||||||||||||||||||||||||||||||
2
|
5,290 | 3,648 | 5,605 | 447 | 2006 |
08/19/36
|
D | 54 | % | 736 | |||||||||||||||||||||||||||||||||||||||
3
|
5,287 | 3,655 | 5,794 | 954 | 2006 |
08/25/36
|
D | 37 | % | 14 | % | 714 | |||||||||||||||||||||||||||||||||||||
4
|
4,040 | 3,452 | 4,596 | 657 | 2006 |
08/25/36
|
D | 37 | % | 12 | % | 12 | % | 725 | |||||||||||||||||||||||||||||||||||
5
|
3,280 | 2,857 | 3,563 | 221 | 2006 |
03/25/36
|
CC
|
36 | % | 728 | |||||||||||||||||||||||||||||||||||||||
6
|
2,106 | 2,102 | 2,120 | - | 2005 |
12/25/35
|
B2 | 39 | % | 736 | |||||||||||||||||||||||||||||||||||||||
7
|
4,910 | 2,849 | 5,186 | 222 | 2006 |
05/25/36
|
CC
|
27 | % | 18 | % | 10 | % | 11 | % | 714 | |||||||||||||||||||||||||||||||||
8
|
1,091 | 1,088 | 1,101 | - | 2006 |
08/25/36
|
CCC
|
29 | % | 737 | |||||||||||||||||||||||||||||||||||||||
9
|
1,476 | 1,467 | 1,498 | - | 2005 |
11/25/35
|
B | 40 | % | 17 | % | 13 | % | 730 | |||||||||||||||||||||||||||||||||||
10
|
1,309 | 1,246 | 1,311 | - | 2005 |
11/25/35
|
CC
|
46 | % | 10 | % | 739 | |||||||||||||||||||||||||||||||||||||
Total
|
$ | 40,653 | $ | 30,782 | $ | 43,958 | $ | 5,780 |
(in thousands)
|
Amortized Cost
|
Fair Value
|
Gross Unrealized
Losses Recorded
In AOCI
|
Ending Credit
Loss Amount
|
||||||||||||
Private issued CMO's
(1)
|
$ | 34,672 | $ | 24,878 | $ | 9,794 | $ | 3,184 | ||||||||
Trust preferred securities
(1)
|
9,262 | 3,980 | 5,282 | 3,738 | ||||||||||||
Total
|
$ | 43,934 | $ | 28,858 | $ | 15,076 | $ | 6,922 |
(1)
|
The Company has recorded OTTI charges in the Consolidated Statements of Income on six private issue CMOs and two pooled trust preferred securities for which a portion of the OTTI is currently recorded in AOCI.
|
(in thousands)
|
For the
year ended
December 31, 2011
|
|||
Beginning balance
|
$ | 7,011 | ||
Recognition of actual losses
|
(1,667 | ) | ||
OTTI charges due to credit loss recorded in earnings
|
1,578 | |||
Securities sold during the period
|
- | |||
Securities where there is an intent to sell or requirement to sell
|
- | |||
Ending balance
|
$ | 6,922 |
Amortized
Cost
|
Fair Value
|
|||||||
(In thousands)
|
||||||||
Due in one year or less
|
$ | 33,515 | $ | 33,513 | ||||
Due after one year through five years
|
11,057 | 10,998 | ||||||
Due after five years through ten years
|
9,088 | 9,021 | ||||||
Due after ten years
|
17,023 | 11,710 | ||||||
Total other securities
|
70,683 | 65,242 | ||||||
Mortgage-backed securities
|
721,047 | 747,288 | ||||||
Total securities available for sale
|
$ | 791,730 | $ | 812,530 |
Amortized
Cost
|
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. government agencies
|
$ | 10,556 | $ | 10,459 | $ | 111 | $ | 208 | ||||||||
Other
|
28,725 | 26,330 | 6 | 2,401 | ||||||||||||
Corporate
|
2,698 | 2,698 | - | - | ||||||||||||
Mutual funds
|
10,625 | 10,625 | - | - | ||||||||||||
Total other securities
|
52,604 | 50,112 | 117 | 2,609 | ||||||||||||
REMIC and CMO
|
456,210 | 453,465 | 10,039 | 12,784 | ||||||||||||
GNMA
|
81,439 | 85,955 | 4,580 | 64 | ||||||||||||
FNMA
|
192,750 | 194,540 | 3,813 | 2,023 | ||||||||||||
FHLMC
|
19,561 | 20,117 | 556 | - | ||||||||||||
Total mortgage-backed securities
|
749,960 | 754,077 | 18,988 | 14,871 | ||||||||||||
Total securities available for sale
|
$ | 802,564 | $ | 804,189 | $ | 19,105 | $ | 17,480 |
Total
|
Less than 12 months
|
12 months or more
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
U.S. government agencies
|
$ | 7,792 | $ | 208 | $ | 7,792 | $ | 208 | $ | - | $ | - | ||||||||||||
Other
|
9,161 | 2,401 | 2,000 | 1 | 7,161 | 2,400 | ||||||||||||||||||
Total other securities
|
16,953 | 2,609 | 9,792 | 209 | 7,161 | 2,400 | ||||||||||||||||||
REMIC and CMO
|
209,682 | 12,784 | 169,356 | 5,783 | 40,326 | 7,001 | ||||||||||||||||||
GNMA
|
16,214 | 64 | 16,214 | 64 | - | - | ||||||||||||||||||
FNMA
|
97,255 | 2,023 | 97,255 | 2,023 | - | - | ||||||||||||||||||
Total mortgage-backed
securities
|
323,151 | 14,871 | 282,825 | 7,870 | 40,326 | 7,001 | ||||||||||||||||||
Total securities
available for sale
|
$ | 340,104 | $ | 17,480 | $ | 292,617 | $ | 8,079 | $ | 47,487 | $ | 9,401 |
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Land
|
$ | 3,551 | $ | 3,551 | ||||
Building and leasehold improvements
|
21,964 | 20,133 | ||||||
Equipment and furniture
|
23,128 | 21,578 | ||||||
Total
|
48,643 | 45,262 | ||||||
Less: Accumulated depreciation and amortization
|
24,226 | 22,221 | ||||||
Bank premises and equipment, net
|
$ | 24,417 | $ | 23,041 |
2011
|
2010
|
Weighted
Average
Rate
2011
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-bearing deposits:
|
||||||||||||
Certificate of deposit accounts
|
$ | 1,529,110 | $ | 1,520,572 | 2.31 | % | ||||||
Savings accounts
|
349,630 | 388,512 | 0.32 | |||||||||
Money market accounts
|
200,183 | 371,998 | 0.33 | |||||||||
NOW accounts
|
919,029 | 786,015 | 0.67 | |||||||||
Total interest-bearing deposits
|
2,997,952 | 3,067,097 | ||||||||||
Non-interest bearing demand deposits
|
118,507 | 96,198 | ||||||||||
Total due to depositors
|
3,116,459 | 3,163,295 | ||||||||||
Mortgagors' escrow deposits
|
29,786 | 27,315 | 0.21 | |||||||||
Total deposits
|
$ | 3,146,245 | $ | 3,190,610 |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Certificate of deposit accounts
|
$ | 38,372 | $ | 39,044 | $ | 49,987 | ||||||
Savings accounts
|
2,091 | 3,334 | 5,529 | |||||||||
Money market accounts
|
1,309 | 3,713 | 5,290 | |||||||||
NOW accounts
|
6,610 | 7,511 | 5,906 | |||||||||
Total due to depositors
|
48,382 | 53,602 | 66,712 | |||||||||
Mortgagors' escrow deposits
|
49 | 53 | 66 | |||||||||
Total interest expense on deposits
|
$ | 48,431 | $ | 53,655 | $ | 66,778 |
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Within 12 months
|
$ | 662,610 | $ | 362,392 | ||||
More than 12 months to 24 months
|
249,324 | 466,352 | ||||||
More than 24 months to 36 months
|
262,904 | 207,840 | ||||||
More than 36 months to 48 months
|
219,864 | 241,982 | ||||||
More than 48 months to 60 months
|
91,678 | 199,651 | ||||||
More than 60 months
|
42,730 | 42,355 | ||||||
Total certificate of deposit accounts
|
$ | 1,529,110 | $ | 1,520,572 |
2011
|
2010
|
|||||||||||||||
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Repurchase agreements - fixed rate:
|
||||||||||||||||
Due in 2011
|
$ | - | - | $ | 10,000 | 4.87 | ||||||||||
Due in 2012
|
18,000 | 4.71 | 18,000 | 4.71 | ||||||||||||
Due in 2013
|
30,000 | 2.92 | 50,000 | 3.78 | ||||||||||||
Due in 2014
|
9,300 | 1.27 | - | - | ||||||||||||
Due in 2016
|
70,000 | 3.89 | 30,000 | 4.98 | ||||||||||||
Due in 2017
|
58,000 | 4.19 | 58,000 | 4.32 | ||||||||||||
Total repurchase agreements - fixed rate
|
185,300 | 3.77 | 166,000 | 4.35 | ||||||||||||
FHLB-NY advances - fixed rate:
|
||||||||||||||||
Due in 2011
|
- | - | 141,550 | 4.48 | ||||||||||||
Due in 2012
|
62,000 | 3.59 | 136,000 | 4.37 | ||||||||||||
Due in 2013
|
10,000 | 1.30 | 42,526 | 2.99 | ||||||||||||
Due in 2014
|
79,911 | 3.02 | 79,911 | 3.02 | ||||||||||||
Due in 2015
|
115,964 | 1.45 | 12,376 | 1.74 | ||||||||||||
Due in 2016
|
96,919 | 1.99 | 18,094 | 1.95 | ||||||||||||
Due in 2017
|
108,734 | 3.93 | 80,000 | 4.41 | ||||||||||||
Total FHLB-NY advances - fixed rate
|
473,528 | 2.67 | 510,457 | 3.93 | ||||||||||||
Junior subordinated debentures - adjustable rate
Due in 2037
|
26,311 | 16.96 | 32,226 | 13.89 | ||||||||||||
Total borrowings
|
$ | 685,139 | 3.51 | % | $ | 708,683 | 4.47 | % |
Amount
|
Rate
|
Maturity Date
|
Call Date
|
||||||||||
(Dollars in thousands)
|
|||||||||||||
Repurchase agreements - fixed rate
|
$ | 18,000 | 4.28 |
10/18/2017
|
1/18/2012
|
||||||||
Repurchase agreements - fixed rate
|
18,000 | 4.71 |
4/19/2012
|
1/19/2012
|
|||||||||
Repurchase agreements - fixed rate
|
10,000 | 3.99 |
7/27/2016
|
1/27/2012
|
|||||||||
Repurchase agreements - fixed rate
|
10,000 | 4.89 |
7/28/2016
|
1/30/2012
|
|||||||||
Repurchase agreements - fixed rate
|
20,000 | 5.02 |
7/28/2016
|
1/30/2012
|
|||||||||
Repurchase agreements - fixed rate
|
10,000 | 2.81 |
5/7/2013
|
2/7/2012
|
|||||||||
Repurchase agreements - fixed rate
|
10,000 | 2.91 |
8/7/2013
|
2/7/2012
|
|||||||||
Repurchase agreements - fixed rate
|
20,000 | 4.05 |
9/19/2017
|
3/19/2012
|
|||||||||
Repurchase agreements - fixed rate
|
20,000 | 4.26 |
9/21/2017
|
3/21/2012
|
|||||||||
Repurchase agreements - fixed rate
|
10,000 | 3.88 |
6/27/2016
|
3/27/2012
|
|||||||||
Repurchase agreements - fixed rate
|
20,000 | 2.20 |
7/12/2016
|
7/14/2014
|
|||||||||
FHLB-NY advances - fixed rate
|
20,000 | 4.43 |
10/10/2017
|
1/9/2012
|
|||||||||
FHLB-NY advances - fixed rate
|
10,000 | 4.13 |
9/18/2017
|
3/19/2012
|
|||||||||
FHLB-NY advances - fixed rate
|
10,000 | 4.32 |
9/18/2017
|
3/19/2012
|
|||||||||
FHLB-NY advances - fixed rate
|
10,000 | 4.15 |
9/18/2017
|
3/19/2012
|
|||||||||
FHLB-NY advances - fixed rate
|
30,000 | 4.60 |
10/10/2017
|
10/9/2012
|
2011
|
2010
|
|||||||
(Dollars in thousands)
|
||||||||
Book value of collateral
|
$ | 236,446 | $ | 209,561 | ||||
Estimated fair value of collateral
|
236,446 | 209,561 | ||||||
Average balance of outstanding agreements during the year
|
171,092 | 174,750 | ||||||
Maximum balance of outstanding agreements at a month end during the year
|
185,300 | 186,900 | ||||||
Average interest rate of outstanding agreements during the year
|
4.07 | % | 4.30 | % |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Federal:
|
||||||||||||
Current
|
$ | 17,314 | $ | 18,205 | $ | 6,767 | ||||||
Deferred
|
435 | 1,138 | 5,420 | |||||||||
Total federal tax provision
|
17,749 | 19,343 | 12,187 | |||||||||
State and Local:
|
||||||||||||
Current
|
5,470 | 5,777 | 1,131 | |||||||||
Deferred
|
250 | (9,179 | ) | 2,453 | ||||||||
Total state and local tax provision
|
5,720 | (3,402 | ) | 3,584 | ||||||||
Total income tax provision
|
$ | 23,469 | $ | 15,941 | $ | 15,771 |
2011
|
2010
|
2009
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Taxes at federal statutory rate
|
$ | 20,586 | 35.0 | % | $ | 19,172 | 35.0 | % | $ | 14,466 | 35.0 | % | ||||||||||||
Increase (reduction) in taxes resulting from:
|
||||||||||||||||||||||||
State and local income tax, net of Federal
income tax benefit
|
3,718 | 6.3 | (2,211 | ) | (4.0 | ) | 2,330 | 5.6 | ||||||||||||||||
Other
|
(835 | ) | (1.4 | ) | (1,020 | ) | (1.9 | ) | (1,025 | ) | (2.4 | ) | ||||||||||||
Taxes at effective rate
|
$ | 23,469 | 39.9 | % | $ | 15,941 | 29.1 | % | $ | 15,771 | 38.2 | % |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Income from operations
|
$ | 23,469 | $ | 15,941 | $ | 15,771 | ||||||
Equity:
|
||||||||||||
Change in fair value of securities available for sale
|
8,398 | 2,714 | 10,225 | |||||||||
Current year actuarial losses of postretirement plans
|
(1,932 | ) | (513 | ) | (690 | ) | ||||||
Amortization of net actuarial losses and prior service credits
|
223 | 120 | 156 | |||||||||
Effect of change in measurement date of postretirement plans
|
- | - | - | |||||||||
Compensation expense for tax purposes in (excess) or less
than that recognized for financial reporting purposes
|
(292 | ) | (12 | ) | 184 | |||||||
Total income taxes
|
$ | 29,866 | $ | 18,250 | $ | 25,646 |
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Deferred tax asset:
|
||||||||
Postretirement benefits
|
$ | 3,658 | $ | 4,024 | ||||
Allowance for loan losses
|
13,305 | 12,189 | ||||||
Stock based compensation
|
1,942 | 2,010 | ||||||
Depreciation
|
1,041 | 772 | ||||||
Fair value adjustment on financial assets carried
at fair value
|
4,024 | 3,082 | ||||||
Other-than-temporary impairment charges
|
3,035 | 3,085 | ||||||
Adjustment required to recognize funded status of
postretirement pension plans
|
5,362 | 3,653 | ||||||
Other
|
1,871 | 1,951 | ||||||
Deferred tax asset
|
34,238 | 30,766 | ||||||
Deferred tax liability:
|
||||||||
Core deposit intangibles
|
411 | 618 | ||||||
Valuation differences resulting from acquired
assets and liabilities
|
2,898 | 2,949 | ||||||
Fair value adjustment on financial liabilities carried
at fair value
|
15,776 | 13,230 | ||||||
Unrealized gains on securities available for sale
|
9,120 | 722 | ||||||
Other
|
1,993 | 1,840 | ||||||
Deferred tax liability
|
30,198 | 19,359 | ||||||
Net deferred tax asset included in other assets
|
$ | 4,040 | $ | 11,407 |
Full Value Awards |
Shares
|
Weighted-Average
Grant-Date
Fair Value
|
||||||
Non-vested at December 31, 2010
|
287,004 | $ | 13.02 | |||||
Granted
|
214,095 | 14.52 | ||||||
Vested
|
(129,182 | ) | 14.06 | |||||
Forfeited
|
(8,328 | ) | 13.86 | |||||
Non-vested at December 31, 2011
|
363,589 | $ | 13.52 | |||||
Vested but unissued at December 31, 2011
|
87,904 | $ | 12.92 |
Non-Full Value Awards |
Shares
|
Weighted-
Average
Exercise
Price
|
Weighted-Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
($000)*
|
||||||||||
Outstanding at December 31, 2010
|
1,247,888 | $ | 14.51 | |||||||||||
Granted
|
- | - | ||||||||||||
Exercised
|
(178,310 | ) | 11.75 | |||||||||||
Forfeited
|
(93,938 | ) | 12.98 | |||||||||||
Outstanding at December 31, 2011
|
975,640 | $ | 15.16 |
3.4 years
|
$ | 473 | ||||||||
Exercisable shares at December 31, 2011
|
856,500 | $ | 15.51 |
3.0 years
|
$ | 189 | ||||||||
Vested but unexercisable shares at
December 31, 2011
|
3,600 | $ | 14.58 |
6.3 years
|
$ | 5 |
(In thousands, except grant date fair value)
|
2011
|
2010
|
2009
|
|||||||||
Proceeds from stock options exercised
|
$ | 2,040 | $ | 458 | $ | 627 | ||||||
Fair value of shares received upon exercise of stock options
|
54 | 370 | 251 | |||||||||
Tax benefit related to stock options exercised
|
184 | 19 | 39 | |||||||||
Intrinsic value of stock options exercised
|
427 | 182 | 177 | |||||||||
Weighted average fair value on grant date
|
n/a | n/a | 1.26 |
Phantom Stock Plan
|
Shares
|
Fair Value
|
||||||
Outstanding at December 31, 2010
|
30,970 | $ | 14.00 | |||||
Granted
|
8,510 | 13.96 | ||||||
Forfeited
|
- | - | ||||||
Distributions
|
(225 | ) | 13.28 | |||||
Outstanding at December 31, 2011
|
39,255 | $ | 12.63 | |||||
Vested at December 31, 2011
|
39,000 | $ | 12.63 |
Net Actuarial
loss (gain)
|
Prior Service
cost (credit)
|
Total
|
||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Employee Retirement Plan
|
$ | 12,223 | $ | 9,148 | $ | 8,042 | $ | - | $ | - | $ | - | $ | 12,223 | $ | 9,148 | $ | 8,042 | ||||||||||||||||||
Other Postretirement Benefit Plans
|
1,028 | 342 | 491 | (879 | ) | (964 | ) | (1,049 | ) | 149 | (622 | ) | (558 | ) | ||||||||||||||||||||||
Atlantic Liberty Retirement Plan
|
- | - | 78 | - | - | - | - | - | 78 | |||||||||||||||||||||||||||
Outside Directors Plan
|
(394 | ) | (515 | ) | (549 | ) | 250 | 290 | 330 | (144 | ) | (225 | ) | (219 | ) | |||||||||||||||||||||
Total
|
$ | 12,857 | $ | 8,975 | $ | 8,062 | $ | (629 | ) | $ | (674 | ) | $ | (719 | ) | $ | 12,228 | $ | 8,301 | $ | 7,343 |
Net Actuarial
loss (gain)
|
Prior Service
cost (credit)
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Employee Retirement Plan
|
$ | 1,050 | $ | - | $ | 1,050 | ||||||
Other Postretirement Benefit Plans
|
40 | (85 | ) | (45 | ) | |||||||
Outside Directors Plan
|
(29 | ) | 40 | 11 | ||||||||
$ | 1,061 | $ | (45 | ) | $ | 1,016 |
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Change in benefit obligation:
|
||||||||
Projected benefit obligation at beginning of year
|
$ | 17,972 | $ | 15,970 | ||||
Service cost
|
- | 63 | ||||||
Interest cost
|
919 | 892 | ||||||
Actuarial loss
|
3,101 | 1,477 | ||||||
Merger of Atlantic Liberty pension plan
|
- | 489 | ||||||
Benefits paid
|
(891 | ) | (919 | ) | ||||
Projected benefit obligation at end of year
|
21,101 | 17,972 | ||||||
Change in plan assets:
|
||||||||
Market value of assets at beginning of year
|
13,027 | 12,252 | ||||||
Actual return on plan assets
|
551 | 1,256 | ||||||
Merger of Atlantic Liberty pension plan
|
- | 400 | ||||||
Employer contributions
|
2,734 | 38 | ||||||
Benefits paid
|
(891 | ) | (919 | ) | ||||
Market value of plan assets at end of year
|
15,421 | 13,027 | ||||||
Accrued pension cost included in other liabilities
|
$ | (5,680 | ) | $ | (4,945 | ) |
2011
|
2010
|
|||||||
Weighted average discount rate
|
4.25 | % | 5.25 | % | ||||
Rate of increase in future compensation levels
|
n/a | n/a | ||||||
Expected long-term rate of return on assets
|
8.00 | % | 8.50 | % |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Service cost
|
$ | - | $ | 63 | $ | - | ||||||
Interest cost
|
919 | 892 | 911 | |||||||||
Amortization of unrecognized loss
|
639 | 362 | 318 | |||||||||
Expected return on plan assets
|
(1,164 | ) | (1,247 | ) | (1,282 | ) | ||||||
Net pension expense (benefit)
|
394 | 70 | (53 | ) | ||||||||
Current year actuarial (gain) loss
|
3,714 | 1,468 | (740 | ) | ||||||||
Amortization of actuarial loss
|
(639 | ) | (362 | ) | (318 | ) | ||||||
Total recognized in other comprehensive income
|
3,075 | 1,106 | (1,058 | ) | ||||||||
Total recognized in net pension cost (benefit) and other
comprehensive income
|
$ | 3,469 | $ | 1,176 | $ | (1,111 | ) |
2011
|
2010
|
2009
|
||||||||||
Weighted average discount rate
|
5.25 | % | 5.75 | % | 5.75 | % | ||||||
Rate of increase in future compensation levels
|
n/a | n/a | n/a | |||||||||
Expected long-term rate of return on assets
|
8.00 | % | 8.50 | % | 8.50 | % |
For the years ending December 31:
|
Future
Benefit
Payments
|
|||
(In thousands)
|
||||
2012
|
$ | 963 | ||
2013
|
1,007 | |||
2014
|
1,025 | |||
2015
|
1,080 | |||
2016
|
1,125 | |||
2017 – 2021
|
5,740 |
2011
|
2010
|
|||||||
Equity securities
|
64 | % | 67 | % | ||||
Debt securities
|
36 | % | 33 | % |
Quoted Prices
in Active
Markets for
Identical Assets
|
Significant
Other
Observable
Inputs
|
Significant
Other
Unobservable
Inputs
|
||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Mutual Funds - Equity
|
||||||||||||||||
U.S. large-cap growth (a)
|
$ | 3,363 | $ | 3,363 | $ | - | $ | - | ||||||||
U.S. large-cap value (b)
|
3,340 | 3,340 | - | - | ||||||||||||
U.S. small-cap blend (c)
|
1,700 | 1,700 | - | - | ||||||||||||
International blend (d)
|
1,422 | 1,422 | - | - | ||||||||||||
Fixed Income Securities
|
||||||||||||||||
PIMCO bond fund (e)
|
5,096 | - | 5,096 | - | ||||||||||||
Other
|
||||||||||||||||
Prudential short term (f)
|
500 | - | 500 | - | ||||||||||||
Total
|
$ | 15,421 | $ | 9,825 | $ | 5,596 | $ | - |
(a)
|
Comprised of large-cap stocks seeking to outperform, over the long term, the Russell 1000 Growth Index. The portfolio will typically hold between 55 and 70 stocks.
|
(b)
|
Comprised of large-cap stocks seeking to outperform the Russell 1000® Value benchmark over the rolling three and five year periods, or a full market cycle, whichever is longer.
|
(c)
|
Comprised of stocks with market capitalization of between $100 million and the market capitalization of the largest stock in the Russell 2000 index at the time of purchase. The portfolio will typically hold between 40 and 100 stocks.
|
(d)
|
Comprised of non-U.S. domiciled stocks. The portfolio will typically hold between 80 and 90 stocks.
|
(e)
|
Comprised of a portfolio of fixed income securities including U.S agency mortgage-backed securities and investment grade bonds.
|
(f)
|
Comprised of money market instruments with an emphasis on safety and liquidity.
|
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Change in benefit obligation:
|
||||||||
Projected benefit obligation at beginning of year
|
$ | 4,013 | $ | 3,727 | ||||
Service cost
|
313 | 271 | ||||||
Interest cost
|
207 | 210 | ||||||
Actuarial loss (gain)
|
686 | (141 | ) | |||||
Benefits paid
|
(53 | ) | (54 | ) | ||||
Projected benefit obligation at end of year
|
5,166 | 4,013 | ||||||
Change in plan assets:
|
||||||||
Market value of assets at beginning of year
|
- | - | ||||||
Employer contributions
|
53 | 54 | ||||||
Benefits paid
|
(53 | ) | (54 | ) | ||||
Market value of plan assets at end of year
|
- | - | ||||||
Accrued pension cost included in other liabilities
|
$ | (5,166 | ) | $ | (4,013 | ) |
2011
|
2010
|
|||||||
Rate of return on plan assets
|
n/a | n/a | ||||||
Discount rate
|
4.25 | % | 5.25 | % | ||||
Rate of increase in health care costs
|
||||||||
Initial | 10.50 | % | 11.50 | % | ||||
Ultimate (year 2017) | 5.50 | % | 5.50 | % | ||||
Annual rate of salary increase for life insurance
|
n/a | n/a |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Service cost
|
$ | 313 | $ | 271 | $ | 219 | ||||||
Interest cost
|
207 | 210 | 228 | |||||||||
Amortization of unrecognized (gain) loss
|
- | 8 | - | |||||||||
Amortization of past service (credit) liability
|
(85 | ) | (85 | ) | 8 | |||||||
Net postretirement benefit expense
|
435 | 404 | 455 | |||||||||
Current year actuarial (gain) loss
|
686 | (141 | ) | 571 | ||||||||
Current year prior service credit
|
- | - | (1,153 | ) | ||||||||
Amortization of actuarial gain
|
- | (8 | ) | - | ||||||||
Amortization of prior service credit (liability)
|
85 | 85 | (8 | ) | ||||||||
Total recognized in other comprehensive income
|
771 | (64 | ) | (590 | ) | |||||||
Total recognized in net postretirement expense
and other comprehensive income
|
$ | 1,206 | $ | 340 | $ | (135 | ) |
2011
|
2010
|
2009
|
||||||||||
Rate of return on plan assets
|
n/a | n/a | n/a | |||||||||
Discount rate
|
5.75 | % | 5.75 | % | 5.75 | % | ||||||
Rate of increase in health care costs
|
||||||||||||
Initial | 11.50 | % | 12.00 | % | 12.00 | % | ||||||
Ultimate (year 2017) | 5.50 | % | 5.00 | % | 5.00 | % | ||||||
Annual rate of salary increase for life insurance
|
n/a | n/a | n/a |
Increase
|
Decrease
|
|||||||
(In thousands)
|
||||||||
Effect on postretirement benefit obligation
|
$ | 828 | $ | (643 | ) | |||
Effect on total service and interest cost
|
142 | (108 | ) |
For the years ending December 31:
|
Future Benefit
Payments
|
|||
(In thousands)
|
||||
2012
|
$ | 153 | ||
2013
|
163 | |||
2014
|
177 | |||
2015
|
200 | |||
2016
|
217 | |||
2017 - 2021
|
1,416 |
2011
|
2010
|
|||||||
Shares owned by Employee Benefit Trust, beginning balance
|
1,248,575 | 1,382,699 | ||||||
Shares purchased
|
43,069 | - | ||||||
Shares released and allocated
|
(144,312 | ) | (134,124 | ) | ||||
Shares owned by Employee Benefit Trust, ending balance
|
1,147,332 | 1,248,575 | ||||||
Market value of unallocated shares.
|
$ | 14,490,803 | $ | 17,480,050 |
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Change in benefit obligation:
|
||||||||
Projected benefit obligation at beginning of year
|
$ | 2,473 | $ | 2,387 | ||||
Service cost
|
70 | 66 | ||||||
Interest cost
|
124 | 130 | ||||||
Actuarial (loss) gain
|
67 | (23 | ) | |||||
Benefits paid
|
(87 | ) | (87 | ) | ||||
Projected benefit obligation at end of year
|
2,647 | 2,473 | ||||||
Change in plan assets:
|
||||||||
Market value of assets at beginning of year
|
- | - | ||||||
Employer contributions
|
87 | 87 | ||||||
Benefits paid
|
(87 | ) | (87 | ) | ||||
Market value of plan assets at end of year
|
- | - | ||||||
Accrued pension cost included in other liabilities
|
$ | (2,647 | ) | $ | (2,473 | ) |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Service cost
|
$ | 70 | $ | 66 | $ | 80 | ||||||
Interest cost
|
124 | 130 | 138 | |||||||||
Amortization of unrecognized gain
|
(54 | ) | (58 | ) | (21 | ) | ||||||
Amortization of past service liability
|
40 | 40 | 40 | |||||||||
Net pension expense
|
180 | 178 | 237 | |||||||||
Current actuarial loss (gain)
|
67 | (23 | ) | (199 | ) | |||||||
Amortization of actuarial gain
|
54 | 58 | 21 | |||||||||
Amortization of prior service cost
|
(40 | ) | (40 | ) | (40 | ) | ||||||
Total recognized in other comprehensive income
|
81 | (5 | ) | (218 | ) | |||||||
Total recognized in net pension expense and other
comprehensive income
|
$ | 261 | $ | 173 | $ | 19 |
2011
|
2010
|
2009
|
||||||||||
Weighted average discount rate for the benefit obligation
|
4.25 | % | 5.25 | % | 5.75 | % | ||||||
Weighted average discount rate for periodic pension benefit expense
|
5.25 | % | 5.75 | % | 5.75 | % | ||||||
Rate of increase in future compensation levels
|
n/a | n/a | n/a |
For the years ending December 31:
|
Future Benefit
Payments
|
|||
(In thousands)
|
||||
2012
|
$ | 231 | ||
2013
|
256 | |||
2014
|
260 | |||
2015
|
288 | |||
2016
|
288 | |||
2017 – 2021
|
987 |
December 31,
2011
|
Other
Comprehensive
Income
|
December 31,
2010
|
||||||||||
(In thousands)
|
||||||||||||
Net unrealized gain on securities
available for sale
|
$ | 11,679 | $ | 10,776 | $ | 903 | ||||||
Net actuarial loss on pension plans and
other postretirement benefits
|
(7,216 | ) | (2,194 | ) | (5,022 | ) | ||||||
Prior service (cost) credit on pension
plans and other postretirement benefits
|
350 | (25 | ) | 375 | ||||||||
Accumulated other comprehensive loss
|
$ | 4,813 | $ | 8,557 | $ | (3,744 | ) |
December 31, 2011
|
December 31, 2010
|
|||||||||||||||
Amount
|
Percent of
Assets
|
Amount
|
Percent of
Assets
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Tier I (leverage) capital:
|
||||||||||||||||
Capital level
|
$ | 410,356 | 9.63 | % | $ | 395,284 | 9.18 | % | ||||||||
Requirement to be well capitalized
|
213,156 | 5.00 | 215,379 | 5.00 | ||||||||||||
Excess
|
197,200 | 4.63 | 179,905 | 4.18 | ||||||||||||
Tier I risk-based capital:
|
||||||||||||||||
Capital level
|
$ | 410,356 | 14.26 | % | $ | 395,284 | 13.07 | % | ||||||||
Requirement to be well capitalized
|
172,611 | 6.00 | 181,462 | 6.00 | ||||||||||||
Excess
|
237,745 | 8.26 | 213,822 | 7.07 | ||||||||||||
Total risk-based capital:
|
||||||||||||||||
Capital level
|
$ | 440,700 | 15.32 | % | $ | 422,983 | 13.98 | % | ||||||||
Requirement to be well capitalized
|
287,684 | 10.00 | 302,476 | 10.00 | ||||||||||||
Excess
|
153,016 | 5.32 | 120,507 | 3.98 |
Minimum Rental
|
||||
(In thousands)
|
||||
Years ended December 31:
|
||||
2012
|
$ | 3,565 | ||
2013
|
3,606 | |||
2014
|
3,428 | |||
2015
|
2,968 | |||
2016
|
2,883 | |||
Thereafter
|
19,111 | |||
Total minimum payments required
|
$ | 35,561 |
Fair Value
|
Fair Value
|
Changes in Fair Values For Items Measured at Fair Value
|
||||||||||||||||||
Measurements
|
Measurements
|
Pursuant to Election of the Fair Value Option
|
||||||||||||||||||
at December 31,
|
at December 31,
|
For the year ended
|
For the year ended
|
For the year ended
|
||||||||||||||||
Description
|
2011
|
2010
|
December 31, 2011
|
December 31, 2010
|
December 31, 2009
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Mortgage-backed securities
|
$ | 37,787 | $ | 51,475 | $ | (665 | ) | $ | 774 | $ | 3,933 | |||||||||
Other securities
|
30,942 | 21,574 | (1,138 | ) | 618 | 659 | ||||||||||||||
Borrowed funds
|
26,311 | 32,226 | 5,916 | 3,549 | 1,523 | |||||||||||||||
Securities sold under
agreements to repurchase
|
- | - | - | - | 485 | |||||||||||||||
Net gain from fair value adjustments *
|
$ | 4,113 | $ | 4,941 | $ | 6,600 |
For the year ended
December 31, 2011
|
For the year ended
December 31, 2010
|
|||||||||||||||
Trust preferred
securities
|
Junior subordinated
debentures
|
Trust preferred
securities
|
Junior subordinated
debentures
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Beginning balance
|
$ | 10,144 | $ | 32,226 | $ | 10,153 | $ | 34,510 | ||||||||
Transfer into Level 3
|
- | - | - | - | ||||||||||||
Net loss from fair value adjustment
of financial assets
|
(1,577 | ) | - | (224 | ) | - | ||||||||||
Net gain from fair value
adjustment of financial liabilities
|
- | (5,915 | ) | - | (2,284 | ) | ||||||||||
Increase in accrued interest
|
- | - | ||||||||||||||
Other-than-temporary impairment
|
- | - | (988 | ) | - | |||||||||||
Change in unrealized gains(losses) included
in other comprehensive income
|
(2,935 | ) | - | 1,203 | - | |||||||||||
Ending balance
|
$ | 5,632 | $ | 26,311 | $ | 10,144 | $ | 32,226 |
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant Other
Unobservable Inputs
(Level 3)
|
Total carried at fair value
on a recurring basis
|
|||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||
Securities available for sale
|
||||||||||||||||||||||||||||||||
Mortgage-backed
Securities
|
$ | - | $ | - | $ | 747,288 | $ | 754,077 | $ | - | $ | - | $ | 747,288 | $ | 754,077 | ||||||||||||||||
Other securities
|
- | - | 59,610 | 39,968 | 5,632 | 10,144 | 65,242 | 50,112 | ||||||||||||||||||||||||
Interest rate caps
|
- | - | 356 | 2,509 | - | - | 356 | 2,509 | ||||||||||||||||||||||||
Total assets
|
$ | - | $ | - | $ | 807,254 | $ | 796,554 | $ | 5,632 | $ | 10,144 | $ | 812,886 | $ | 806,698 | ||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||||||||||
Borrowings
|
$ | - | $ | - | $ | - | $ | - | $ | 26,311 | $ | 32,226 | $ | 26,311 | $ | 32,226 | ||||||||||||||||
Total liabilities
|
$ | - | $ | - | $ | - | $ | - | $ | 26,311 | $ | 32,226 | $ | 26,311 | $ | 32,226 |
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant Other
Unobservable Inputs
(Level 3)
|
Total carried at fair value
on a recurring basis
|
|||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | - | $ | - | $ | 48,555 | $ | 51,615 | $ | 48,555 | $ | 51,615 | ||||||||||||||||
Real estate owned
|
- | - | - | - | 3,179 | 1,588 | 3,179 | 1,588 | ||||||||||||||||||||||||
Total assets
|
$ | - | $ | - | $ | - | $ | - | $ | 51,734 | $ | 53,203 | $ | 51,734 | $ | 53,203 |
2011
|
2010
|
|||||||||||||||||||||||||||||||
4th
|
3rd
|
2nd
|
1st
|
4th
|
3rd
|
2nd
|
1st
|
|||||||||||||||||||||||||
(In thousands, except per share data)
|
||||||||||||||||||||||||||||||||
Quarterly operating data:
|
||||||||||||||||||||||||||||||||
Interest income
|
$ | 54,644 | $ | 56,329 | $ | 56,499 | $ | 57,026 | $ | 56,610 | $ | 58,271 | $ | 56,939 | $ | 57,808 | ||||||||||||||||
Interest expense
|
17,920 | 19,228 | 19,704 | 19,871 | 21,555 | 22,410 | 23,499 | 24,303 | ||||||||||||||||||||||||
Net interest income
|
36,724 | 37,101 | 36,795 | 37,155 | 35,055 | 35,861 | 33,440 | 33,505 | ||||||||||||||||||||||||
Provision for loan losses
|
6,500 | 5,000 | 5,000 | 5,000 | 6,000 | 5,000 | 5,000 | 5,000 | ||||||||||||||||||||||||
Other operating income
|
2,980 | 4,295 | 2,135 | 871 | 2,056 | 1,949 | 1,718 | 2,577 | ||||||||||||||||||||||||
Other operating expense
|
19,369 | 19,490 | 18,865 | 20,015 | 17,183 | 17,656 | 17,610 | 17,936 | ||||||||||||||||||||||||
Income before income
tax expense
|
13,835 | 16,906 | 15,065 | 13,011 | 13,928 | 15,154 | 12,548 | 13,146 | ||||||||||||||||||||||||
Income tax expense
|
5,664 | 6,756 | 5,991 | 5,058 | 5,379 | 526 | 4,875 | 5,161 | ||||||||||||||||||||||||
Net income
|
$ | 8,171 | $ | 10,150 | $ | 9,074 | $ | 7,953 | $ | 8,549 | $ | 14,628 | $ | 7,673 | $ | 7,985 | ||||||||||||||||
Basic earnings per common share
|
$ | 0.27 | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 0.28 | $ | 0.48 | $ | 0.25 | $ | 0.26 | ||||||||||||||||
Diluted earnings per common share
|
$ | 0.27 | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 0.28 | $ | 0.48 | $ | 0.25 | $ | 0.26 | ||||||||||||||||
Dividends per common share
|
$ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.13 | ||||||||||||||||
Average common shares outstanding for:
|
||||||||||||||||||||||||||||||||
Basic earnings per share
|
30,371 | 30,679 | 30,823 | 30,620 | 30,373 | 30,359 | 30,352 | 30,257 | ||||||||||||||||||||||||
Diluted earnings per share
|
30,387 | 30,693 | 30,864 | 30,686 | 30,415 | 30,378 | 30,399 | 30,286 |
Condensed Statements of Financial Condition
|
December 31,
2011
|
December 31,
2010
|
||||||
(Dollars in thousands)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 18,798 | $ | 18,066 | ||||
Securities available for sale:
|
||||||||
Other securities ($2,612 and $2,563 at fair value pursuant to
the fair value option at December 31, 2011 and 2010, respectively)
|
3,180 | 3,314 | ||||||
Interest receivable
|
12 | 12 | ||||||
Investment in subsidiaries
|
429,353 | 405,988 | ||||||
Goodwill
|
2,185 | 2,185 | ||||||
Other assets
|
4,521 | 4,525 | ||||||
Total assets
|
$ | 458,049 | $ | 434,090 | ||||
Liabilities:
|
||||||||
Borrowings (at fair value pursuant to the fair value option
at December 31, 2011 and 2010)
|
$ | 26,311 | $ | 32,227 | ||||
Other liabilities
|
14,827 | 11,818 | ||||||
Total liabilities
|
41,138 | 44,045 | ||||||
Stockholders' Equity:
|
||||||||
Preferred stock
|
- | - | ||||||
Common stock
|
315 | 313 | ||||||
Additional paid-in capital
|
195,628 | 189,348 | ||||||
Treasury stock, at average cost (626,418 shares and none at
December 31, 2011 and 2010, respectively)
|
(7,355 | ) | - | |||||
Retained earnings
|
223,510 | 204,128 | ||||||
Accumulated other comprehensive income (loss), net of taxes
|
4,813 | (3,744 | ) | |||||
Total equity
|
416,911 | 390,045 | ||||||
Total liabilities and equity
|
$ | 458,049 | $ | 434,090 |
For the years ended December 31,
|
||||||||||||
Condensed Statements of Income
|
2011
|
2010
|
2009
|
|||||||||
(In thousands)
|
||||||||||||
Dividends from the Savings Bank
|
$ | 20,000 | $ | 10,000 | $ | - | ||||||
Interest income
|
753 | 750 | 1,175 | |||||||||
Interest expense
|
(4,325 | ) | (4,324 | ) | (4,325 | ) | ||||||
Gain on sale of securities
|
- | - | 7 | |||||||||
Net (loss) gain from fair value adjustments
|
5,725 | 2,253 | (1,415 | ) | ||||||||
Other operating expenses
|
(746 | ) | (737 | ) | (829 | ) | ||||||
Income before taxes and equity in undistributed
earnings of subsidiary
|
21,407 | 7,942 | (5,387 | ) | ||||||||
Income tax (expense) benefit
|
(585 | ) | 972 | 2,397 | ||||||||
Income before equity in undistributed earnings of subsidiary
|
20,822 | 8,914 | (2,990 | ) | ||||||||
Equity in undistributed earnings of the Savings Bank
|
14,526 | 29,921 | 28,551 | |||||||||
Net income
|
$ | 35,348 | $ | 38,835 | $ | 25,561 |
For the years ended December 31,
|
||||||||||||
Condensed Statements of Cash Flows
|
2011
|
2010
|
2009
|
|||||||||
(In thousands)
|
||||||||||||
Operating activities:
|
||||||||||||
Net income
|
$ | 35,348 | $ | 38,835 | $ | 25,561 | ||||||
Adjustments to reconcile net income to net cash provided
by operating activities:
|
||||||||||||
Equity in undistributed earnings of the Savings Bank
|
(14,526 | ) | (29,921 | ) | (28,551 | ) | ||||||
Net loss on sale of securities
|
- | - | 7 | |||||||||
Deferred income tax (benefit) provision
|
3,003 | 972 | (502 | ) | ||||||||
Fair value adjustments for financial assets and
financial liabilities
|
(5,726 | ) | (2,253 | ) | 1,415 | |||||||
Stock based compensation expense
|
2,720 | 2,154 | 2,041 | |||||||||
Net change in operating assets and liabilities
|
1,542 | 1,499 | 3,258 | |||||||||
Net cash provided by (used in) operating activities
|
22,361 | 11,286 | 3,229 | |||||||||
Investing activities:
|
||||||||||||
Purchases of securities available for sale
|
(37 | ) | (62 | ) | (107 | ) | ||||||
Proceeds from sales and calls of securities available for sale
|
- | 750 | 494 | |||||||||
Investment in subsidiary
|
- | - | (23,500 | ) | ||||||||
Net cash provided by (used in) investing activities
|
(37 | ) | 688 | (23,113 | ) | |||||||
Financing activities:
|
||||||||||||
Purchase of treasury stock
|
(7,722 | ) | (347 | ) | (231 | ) | ||||||
Cash dividends paid
|
(15,910 | ) | (15,788 | ) | (14,989 | ) | ||||||
Issuance of common stock
|
- | - | 101,537 | |||||||||
Redemption of preferred stock
|
- | - | (70,900 | ) | ||||||||
Stock options exercised
|
2,040 | 458 | 627 | |||||||||
Net cash (used in) provided by financing activities
|
(21,592 | ) | (15,677 | ) | 16,044 | |||||||
Net (decrease) increase in cash and cash equivalents
|
732 | (3,703 | ) | (3,840 | ) | |||||||
Cash and cash equivalents, beginning of year
|
18,066 | 21,769 | 25,609 | |||||||||
Cash and cash equivalents, end of year
|
$ | 18,798 | $ | 18,066 | $ | 21,769 |
(a) |
1.
|
Financial Statements
|
·
|
Consolidated Statements of Financial Condition at December 31, 2011 and 2010
|
·
|
Consolidated Statements of Income for each of the three years in the period ended December 31, 2011
|
·
|
Consolidated Statements of Changes in Stockholders’ Equity for each of the three years in the period ended December 31, 2011
|
·
|
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2011
|
·
|
Notes to Consolidated Financial Statements
|
·
|
Report of Independent Registered Public Accounting Firm
|
Financial Statement Schedules
|
Exhibits Required by Securities and Exchange Commission Regulation S-K
|
Exhibit
Number
|
Description
|
2.1
|
Agreement and Plan of Merger dated as of December 20, 2005 by and between Flushing Financial Corporation and Atlantic Liberty Financial Corp. (10)
|
3.1
|
Certificate of Incorporation of Flushing Financial Corporation (1)
|
3.2
|
Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (5)
|
3.3
|
Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation
|
3.4
|
Certificate of Designations of Series A Junior Participating Preferred Stock of Flushing Financial
Corporation (6)
|
3.5
|
Certificate of Increase of Shares Designated as Series A Junior Participating Preferred Stock of Flushing Financial Corporation (13)
|
3.6
|
By-Laws of Flushing Financial Corporation (1)
|
3.7
|
Certificate of Designation relating to the Fixed Rate Cumulative Perpetual Preferred Stock Series B (14)
|
4.1
|
Rights Agreement, dated as of September 8, 2006, between Flushing Financial Corporation and Computershare Trust Company N.A., as Rights Agent, which includes the form of Certificate of Increase of Shares Designated as Series A Junior Participating Preferred Stock as Exhibit A, form of Right Certificate as Exhibit B and the Summary of Rights to Purchase Preferred Stock as Exhibit C
(12)
|
4.2
|
Flushing Financial Corporation has outstanding certain long-term debt. None of such debt exceeds ten percent of Flushing Financial Corporation’s total assets; therefore, copies of constituent instruments defining the rights of the holders of such debt are not included as exhibits. Copies of instruments with respect to such long-term debt will be furnished to the Securities and Exchange Commission upon request.
|
10.1*
|
Form of Amended and Restated Employment Agreements between Flushing Savings Bank, FSB and
Certain Officers (15)
|
10.2*
|
Form of Amended and Restated Employment Agreements between Flushing Financial Corporation and
Certain Officers (15)
|
10.3*
|
Amended and Restated Employment Agreement between Flushing Financial Corporation and John R.
Buran (15)
|
10.4*
|
Amended and Restated Employment Agreement between Flushing Savings Bank, FSB and John R. Buran (15)
|
10.5*
|
Amended and Restated Employment Agreement between Flushing Financial Corporation and Maria A. Grasso (15)
|
10.6*
|
Amended and Restated Employment Agreement between Flushing Savings Bank, FSB and Maria A. Grasso (15)
|
10.7*
|
Flushing Savings Bank Specified Officer Change in Control Severance Policy (16)
|
10.8*
|
Amended and Restated Employee Severance Compensation Plan of Flushing Savings Bank, FSB (4)
|
10.9*
|
Amended and Restated Outside Director Retirement Plan (11)
|
10.10*
|
Amended and Restated Flushing Savings Bank, FSB Outside Director Deferred Compensation Plan (4)
|
10.11*
|
Amended and Restated Flushing Savings Bank, FSB Supplemental Savings Incentive Plan (15)
|
10.12
|
Form of Indemnity Agreement among Flushing Savings Bank, FSB, Flushing Financial Corporation, and each Director (2)
|
10.13
|
Form of Indemnity Agreement among Flushing Savings Bank, FSB, Flushing Financial Corporation, and Certain Officers (2)
|
10.14*
|
Employee Benefit Trust Agreement (1)
|
10.15*
|
Amendment to the Employee Benefit Trust Agreement (3)
|
10.16*
|
Loan Document for Employee Benefit Trust (1)
|
10.17*
|
Guarantee by Flushing Financial Corporation (1)
|
10.18*
|
Consulting Agreement between Flushing Savings Bank, FSB, Flushing Financial
Corporation and Gerard P. Tully, Sr. (15)
|
10.19*
|
1996 Restricted Stock Incentive Plan of Flushing Financial Corporation (8)
|
10.20*
|
1996 Stock Option Incentive Plan of Flushing Financial Corporation (7)
|
10.21*
|
Description of Outside Director Fee Arrangements (15)
|
10.22*
|
Form of Outside Director Restricted Stock Award Letter (9)
|
10.23*
|
Form of Outside Director Restricted Stock Unit Award Letter
|
10.24*
|
Form of Outside Director Stock Option Grant Letter (9)
|
10.25*
|
Form of Employee Restricted Stock Award Letter (9)
|
10.26*
|
Form of Employee Restricted Stock Unit Award Letter
|
(1)
|
Incorporated by reference to Exhibits filed with the Registration Statement on Form S-1 filed September 1, 1995, Registration No. 33-96488.
|
(2)
|
Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended September 30, 1996.
|
(3)
|
Incorporated by reference to Exhibits filed with Form 10-K for the year ended December 31, 1997.
|
(4)
|
Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended September 30, 2000.
|
(5)
|
Incorporated by reference to Exhibits filed with Form S-8 filed May 31, 2002.
|
(6)
|
Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended September 30, 2002.
|
(7)
|
Incorporated by reference to Exhibit filed with Form 10-K for the year ended December 31, 2003.
|
(8)
|
Incorporated by reference to Exhibit filed with Form 10-Q for the quarter ended June 30, 2004.
|
(9)
|
Incorporated by reference to Exhibits filed with Form 10-K for the year ended December 31, 2004.
|
(10)
|
Incorporated by reference to Exhibit filed with Form 8-K filed December 23, 2005.
|
(11)
|
Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended March 31, 2006.
|
(12)
|
Incorporated by reference to Exhibit filed with Form 8-K filed September 11, 2006.
|
(13)
|
Incorporated by reference to Exhibit filed with Form 8-K filed September 26, 2006.
|
(14)
|
Incorporated by reference to Exhibits filed with Form 8-K filed December 23, 2008.
|
(15)
|
Incorporated by reference to Exhibits filed with Form 10-K for the year ended December 31, 2008.
|
(16)
|
Incorporated by reference to Exhibit filed with Form 10-Q for the quarter ended June 30, 2011.
|
(17)
|
Incorporated by reference to Appendices filed with Proxy Statement on Schedule 14A filed April 7, 2011.
|
FLUSHING FINANCIAL CORPORATION | ||
By | /S/JOHN R. BURAN | |
John R. Buran | ||
President and CEO |
Signature
|
Title
|
Date
|
|
/S/JOHN R. BURAN
|
Director, President (Principal Executive Officer)
|
March 7, 2012
|
|
John R. Buran
|
|||
/S/JOHN E. ROE, SR.
|
Director, Chairman
|
March 7, 2012
|
|
John E. Roe, Sr.
|
|||
/S/DAVID W. FRY
|
Treasurer (Principal Financial and Accounting Officer)
|
March 7, 2012
|
|
David W. Fry
|
|||
Director
|
March 7, 2012
|
||
James D. Bennett
|
|||
/S/STEVEN J. D'IORIO
|
Director
|
March 7, 2012
|
|
Steven J. D'Iorio
|
/S/LOUIS C. GRASSI
|
Director
|
March 7, 2012
|
|
Louis C. Grassi
|
|||
/S/SAM S. HAN
|
Director
|
March 7, 2012
|
|
Sam S. Han
|
|||
/S/MICHAEL J. HEGARTY
|
Director
|
March 7, 2012
|
|
Michael J. Hegarty
|
|||
/S/JOHN J. MCCABE
|
Director
|
March 7, 2012
|
|
John J. McCabe
|
|||
/S/VINCENT F. NICOLOSI
|
Director
|
March 7, 2012
|
|
Vincent F. Nicolosi
|
|||
/S/DONNA M. O'BRIEN
|
Director
|
March 7, 2012
|
|
Donna M. O'Brien
|
|||
/S/MICHAEL J. RUSSO
|
Director
|
March 7, 2012
|
|
Michael J. Russo
|
|||
/S/GERARD P. TULLY, SR.
|
Director
|
March 7, 2012
|
|
Gerard P. Tully, Sr.
|
(a)
|
General Vesting Schedule.
Unless they vest on an earlier date as provided in sub-paragraph (b), (c), or (d) below, your RSUs will vest in installments as follows, provided that you are a director of the Company on each such date:
|
Vesting Date
|
Number RSUs
To Vest
|
Cumulative Number
of RSUs Vested
|
January 30, 2013
|
1,600
|
1,600
|
January 30, 2014
|
1,600
|
3,200
|
January 30, 2015
|
1,600
|
4,800
|
(b)
|
Death or Disability.
If your service as a director terminates by reason of death or Disability, all of your RSUs will immediately vest upon your termination of service. For this purpose, “Disability” means that you are unable to perform your duties as a director due to disability or incapacity, as determined by the Committee.
|
(c)
|
Retirement.
Upon your Retirement from the Board of Directors, all of your RSUs will immediately vest. For purposes of this provision, “Retirement” means termination of your service as a director at a time when you have at least five years of service as a non-employee director and the sum of your age plus years of service as a non-employee director equals or exceeds 55.
|
(d)
|
Change in Control.
All of your RSUs will immediately vest upon the occurrence of a Change in Control (as defined in the Plan), if you are a director of the Company at the time of such Change in Control.
|
(e)
|
Forfeiture upon other Termination of Service.
If you cease to be a director of the Company for any reason other than death, Disability, or Retirement, any of your RSUs which have not vested prior to the termination of your service as a director will be forfeited.
|
(a)
|
Award of Dividend Equivalents.
You have been awarded Dividend Equivalents with respect to each of your RSUs covered by this award letter.
|
(b)
|
Cash Dividends.
The Dividend Equivalents that you have been awarded entitle you to receive, at each time cash dividends are paid on the Common Stock, a cash payment for each of your then outstanding RSUs (whether or not vested) equal to the amount of the dividend paid on a share of Common Stock.
|
(c)
|
Stock Dividends.
In the event the Company pays a dividend in Common Stock or other property, your Dividend Equivalents will entitle you to receive, for each of your then outstanding RSUs (whether or not vested), the amount of Common Stock or other property paid as a dividend on a share of Common Stock. Such Common Stock or other property will be paid to you at the time of settlement of the underlying RSU and will be subject to the same restrictions, risk of forfeiture, and vesting and delivery provisions as the underlying RSU with respect to which it was paid.
|
|
(a)
|
Voting.
You will have no voting rights or other rights as a stockholder with respect to your RSUs.
|
|
(b)
|
Transfer Restrictions.
You may not sell, transfer, assign or pledge your RSUs or any rights under this award. Any attempt to do so will be null and void.
|
(c)
|
Settlement of RSUs; Delivery of Shares
. Except as otherwise provided in Paragraph 4(d) below if you are or will become eligible for Retirement prior to the last scheduled vesting date, your RSUs that vest under Paragraph 2 above will be settled on their vesting dates. On or within 60 days after the settlement date of an RSU, the Company will deliver to you one share of Common Stock for each of your RSUs being settled on such date. The Common Stock delivered upon the settlement of your RSUs will be fully transferable (subject to any applicable securities law restrictions) and not subject to forfeiture. The shares of Common Stock delivered upon the settlement of your RSUs will have full voting and dividend rights and will entitle the holder to all other rights of a stockholder of the Company.
|
(d)
|
Compliance with Code Section 409A.
If your RSUs vest on account of a Change of Control that does not qualify as a “change of control” under Section 409A of the Internal Revenue Code of 1986 (“Section 409A”), settlement of your RSUs will be delayed until, and will occur on, the earliest of: (i) the scheduled vesting date under Paragraph 2(a) above; (ii) the date of your Retirement; (iii) the date of your death; or (iv) the occurrence of a Change of Control which qualifies as a “change of control” under Section 409A. Settlement upon your Retirement shall not occur unless your Retirement is also a “separation from service” (within the meaning of Code Section 409A).
|
(e)
|
Death.
In the event of your death, any shares of Common Stock and other amounts you are entitled to receive under the Plan will instead be delivered to the legal representative of your estate.
|
(a)
|
General Vesting Schedule.
Unless they vest on an earlier date as provided in sub-paragraph (b), (c) or (d) below, your RSUs will vest in installments as set forth in the grant header information for this grant on the Wealthviews online equity platform, provided that you are an employee of the Company or one of its subsidiaries on each such date.
|
(b)
|
Death or Disability.
If your employment terminates by reason of death or Disability, all of your RSUs will immediately vest upon your termination of employment. For this purpose, “Disability” means that you have been unable to perform the essential functions of your employment due to disability or incapacity for 270 consecutive days or such lesser period as may be determined by the Committee.
|
(c)
|
Retirement.
If your employment terminates by reason of Retirement, all of your RSUs will immediately vest. For purposes of this provision, “Retirement” means termination of employment with the Company and its subsidiaries either (i) after your attainment of age 65 with 5 years of service, or (ii) when your termination is preceded by at least 5 continuous years of service and the sum of your age plus years of service equals or exceeds 75 years. For purposes of this definition, “years of service” refers to “vested service” with the Company or its subsidiaries as determined under the Retirement Plan of Flushing Savings Bank, FSB.
|
(d)
|
Change in Control.
All of your RSUs will immediately vest upon the occurrence of a Change in Control (as defined in the Plan), if you are an employee of the Company or its subsidiaries at the time of such Change in Control.
|
|
(e)
|
Forfeiture upon other Termination of Employment.
If your employment terminates for any reason other than death, Disability, or Retirement, any of your RSUs which have not vested prior to the termination of your employment will be forfeited.
|
|
(f)
|
Committee Determinations.
The Committee shall have absolute discretion to determine the date and circumstances of termination of your employment, and its determination shall be final, conclusive and binding upon you.
|
|
(a)
|
Award of Dividend Equivalents.
You have been awarded Dividend Equivalents with respect to each of your RSUs covered by this award letter.
|
(b)
|
Cash Dividends.
The Dividend Equivalents that you have been awarded entitle you to receive, at each time cash dividends are paid on the Common Stock, a cash payment for each of your then outstanding RSUs (whether or not vested) equal to the amount of the dividend paid on a share of Common Stock.
|
(c)
|
Stock Dividends.
In the event the Company pays a dividend in Common Stock or other property, your Dividend Equivalents will entitle you to receive, for each of your then outstanding RSUs (whether or not vested), the amount of Common Stock or other property paid as a dividend on a share of Common Stock. Such Common Stock or other property will be paid to you at the time of settlement of the underlying RSU and will be subject to the same restrictions, risk of forfeiture, and vesting and delivery provisions as the underlying RSU with respect to which it was paid.
|
(a)
|
Your RSUs that vest under paragraph 2 above will be settled on their vesting dates, except as follows. If you both (1) are or will become eligible for Retirement prior to the last scheduled vesting date, and (2) are a specified employee within the meaning of Section 409A of the Internal Revenue Code of 1986 (“Section 409A”), as determined by the Board of Directors in accordance with the election made by the Company for determining specified employees (a “Specified Employee”), your RSUs will be settled as provided in paragraphs 4(b), 4(c) and 4(e) below. If you are or will become eligible for Retirement prior to the last scheduled vesting date, whether or not you are a Specified Employee, your RSUs will be settled as provided in paragraphs 4(d) and 4(e) below. As soon as practicable after the settlement date of an RSU, the Company will deliver to you one share of Common Stock for each of your RSUs being settled on such date. The Common Stock delivered upon the settlement of your RSUs will be fully transferable (subject to any applicable securities law restrictions) and not subject to forfeiture. The shares of Common Stock delivered upon the settlement of your RSUs will have full voting and dividend rights and will entitle the holder to all other rights of a stockholder of the Company.
|
(b)
|
If your RSUs vest on account of your Retirement and you are a Specified Employee, the settlement of your RSUs will be delayed until, and will occur on, the six month anniversary of your Retirement (or the date of your death if sooner).
|
(c)
|
If your RSUs vest on account of a Disability that does not qualify as the date you become disabled under Section 409A and you are a Specified Employee, settlement of your RSUs will be delayed until, and will occur on, the six month anniversary of your termination of employment (or the date of your death if sooner).
|
(d)
|
If your RSUs vest on account of a Change of Control that does not qualify as a “change of control” under Section 409A, settlement of your RSUs will be delayed until, and will occur on, the earliest of: (i) the scheduled vesting date under paragraph 2(a) above; (ii) the date of your termination of employment (or the six month anniversary of your termination of employment if you are a Specified Employee); (iii) the date of your death; or (iv) the occurrence of a Change of Control which qualifies as a “change of control” under Section 409A.
|
(e)
|
Notwithstanding paragraphs 4(b), 4(c) and 4(d) above, settlement upon your termination of employment shall not occur unless your termination of employment is also a “separation from service” (within the meaning of Code Section 409A.
|
(a)
|
You must make arrangements satisfactory to the Company to satisfy any applicable federal, state, or local withholding tax liability arising with respect to your RSUs. You can either make a cash payment to the Company of the required amount or you can elect to satisfy your withholding obligation by having the Company retain Common Stock having a value equal to the amount of your withholding obligation from the shares otherwise deliverable to you upon the settlement of such RSUs. If you fail to satisfy your withholding obligation in a time and manner satisfactory to the Company, the Company shall have the right to withhold the required amount from your salary or other amounts payable to you.
|
(b)
|
You must make your election regarding the manner in which your withholding obligation will be satisfied on the Wealthviews online equity platform. To make the election, go to the Restricted Elections screen and select the Tax Election column. If no election is made, the Company will withhold shares to satisfy the withholding election.
|
(c)
|
All cash payments of Dividend Equivalents will be net of any required withholding.
|
(d)
|
The amount of withholding tax retained by the Company or paid by you to the Company will be paid to the appropriate federal, state and local tax authorities in satisfaction of the withholding obligations under the tax laws. The total amount of income you recognize and tax withheld with respect to your RSUs and Dividend Equivalents will be reported on your Form W-2 in the year in which you recognize the income with respect to that portion of the award. Whether you owe additional tax will depend on your overall taxable income for the applicable year and the total tax remitted for that year through withholding or by estimated payments.
|
(a)
|
Voting.
You will have no voting rights or other rights as a stockholder with respect to your RSUs.
|
(b)
|
Transfer Restrictions.
You may not sell, transfer, assign or pledge your RSUs or any rights under this award. Any attempt to do so will be null and void.
|
(c)
|
Death.
In the event of your death, any shares of Common Stock and other amounts you are entitled to receive under the Plan will instead be delivered to the legal representative of your estate.
|
1)
|
Purpose
|
2)
|
Funding
|
-
|
A threshold level of performance required to fund the pool; performance below threshold will result in no funding of the pool, and no annual incentive being paid to Senior Officers;
|
-
|
Target and stretch target levels of performance; and,
|
-
|
A maximum level of performance that will be considered to fund the pool; performance beyond the maximum will result in no additional funding of the pool
|
-
|
One portion of the pool funds annual incentive awards to Senior Officers, as discussed in this document; and,
|
-
|
The other portion of the pool funds annual incentive awards to Vice Presidents and other eligible employees who are not eligible for any other incentive plans of the Bank, as determined by the CEO, to be addressed in a separate document
|
3)
|
Eligibility
|
4)
|
Performance Measures
|
5)
|
Targets and Awards
|
-
|
For the CEO, targets and awards (i.e., Threshold, Target, Stretch Target and Maximum) are developed by the Committee and approved by the Board
|
-
|
For the other Senior Officers, targets and awards are recommended by the CEO and approved by the Committee
|
-
|
The Committee has the discretion to reduce, but not to increase, payment levels from established targets
|
-
|
The funding of the overall Bank’s annual incentive pool, including the portioning of the overall pool, as discussed above; and,
|
-
|
Performance measures and payment targets for Senior Officers
|
Dated: March 15, 2012
|
By:
/s/John R. Buran
|
Dated: March 15, 2012
|
By:
/s/David W. Fry
|