XNAS:FLIC First of Long Island Corp Quarterly Report 10-Q Filing - 3/31/2012

Effective Date 3/31/2012

XNAS:FLIC Fair Value Estimate
Premium
XNAS:FLIC Consider Buying
Premium
XNAS:FLIC Consider Selling
Premium
XNAS:FLIC Fair Value Uncertainty
Premium
XNAS:FLIC Economic Moat
Premium
XNAS:FLIC Stewardship
Premium
 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q
 
(Mark One)
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended
March 31, 2012
 
or
 
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from
 
to
 
 
Commission file number 0-12220
 
­­­­THE FIRST OF LONG ISLAND CORPORATION

(Exact name of registrant as specified in its charter)
 
New York
 
11-2672906
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

 
10 Glen Head Road, Glen Head, NY
 
11545
(Address of principal executive offices)
 
(Zip Code)
 
(516) 671-4900 
(Registrant's telephone number, including area code)
 
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes x No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer o
 
Accelerated filer x
     
Non-accelerated filer o
 
Smaller reporting company o
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o No x
 
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
 
Class                                            
 
Outstanding at May 2, 2012
Common stock, $.10 par value
 
8,898,207



 
 

 
PART I.
   
       
ITEM 1.
   
       
   
1
       
   
2
       
   
3
       
   
4
       
   
5
       
   
6
       
ITEM 2.
 
20
       
ITEM 3.
 
25
       
ITEM 4.
 
27
       
PART II.
   
       
ITEM 1.
 
28
       
ITEM 1A.
 
28
       
ITEM 2.
 
28
       
ITEM 3.
 
28
       
ITEM 4.
 
28
       
ITEM 6.
 
28
       
   
29

   
March 31,
   
December 31,
 
(dollars in thousands)
 
2012
   
2011
 
             
Assets:
           
Cash and due from banks
  $ 35,038     $ 29,101  
Temporary investments
    369       394  
Cash and cash equivalents
    35,407       29,495  
                 
Investment securities:
               
Held-to-maturity (fair value of $60,376 and $66,077)
    56,692       62,085  
Available-for-sale
    921,905       893,956  
      978,597       956,041  
                 
Loan held-for-sale
    250       -  
                 
Loans:
               
Commercial and industrial
    48,978       42,572  
Secured by real estate:
               
Commercial mortgages
    465,617       459,875  
Residential mortgages
    402,890       372,477  
Home equity
    91,834       103,513  
Other
    4,467       4,596  
      1,013,786       983,033  
Net deferred loan origination costs
    3,003       2,826  
      1,016,789       985,859  
Allowance for loan losses
    (17,249 )     (16,572 )
      999,540       969,287  
Restricted stock, at cost
    12,059       12,284  
Bank premises and equipment, net
    23,232       21,809  
Bank-owned life insurance
    13,283       13,165  
Pension plan assets, net
    6,130       6,132  
Prepaid FDIC assessment
    2,540       2,770  
Other assets
    10,861       11,424  
    $ 2,081,899     $ 2,022,407  
Liabilities:
               
Deposits:
               
Checking
  $ 447,708     $ 435,517  
Savings, NOW and money market
    845,571       796,009  
Time, $100,000 and over
    172,544       174,691  
Time, other
    95,362       96,651  
      1,561,185       1,502,868  
Short-term borrowings
    97,699       102,227  
Long-term debt
    207,500       207,500  
Accrued expenses and other liabilities
    9,070       9,347  
Deferred income taxes payable
    11,754       11,118  
      1,887,208       1,833,060  
Stockholders' Equity
               
Common stock, par value $.10 per share:  Authorized 20,000,000 shares;
Issued and outstanding, 8,872,190 and 8,793,932 shares
    887       879  
Surplus
    39,083       37,507  
Retained Earnings
    136,382       133,273  
      176,352       171,659  
Accumulated other comprehensive income net of tax
    18,339       17,688  
      194,691       189,347  
    $ 2,081,899     $ 2,022,407  
 
See notes to consolidated financial statements
 
   
Three Months Ended March 31,
 
(dollars in thousands, except per share data)
 
2012
   
2011
 
             
Interest and dividend income:
           
Loans
  $ 12,133     $ 11,694  
Investment securities:
               
Taxable
    4,153       3,935  
Nontaxable
    3,225       2,775  
      19,511       18,404  
Interest expense:
               
Savings, NOW and money market deposits
    1,031       842  
Time deposits
    1,476       1,476  
Short-term borrowings
    93       55  
Long-term debt
    1,877       1,756  
      4,477       4,129  
Net interest income
    15,034       14,275  
Provision for loan losses
    1,123       854  
Net interest income after provision for loan losses
    13,911       13,421  
                 
Noninterest income:
               
Investment Management Division income
    400       396  
Service charges on deposit accounts
    778       791  
Net gains on sales of securities
    108       122  
Other
    418       351  
      1,704       1,660  
Noninterest expense:
               
Salaries
    4,048       3,841  
Employee benefits
    1,282       1,267  
Occupancy and equipment
    1,856       1,891  
Other
    1,991       2,068  
      9,177       9,067  
                 
Income before income taxes
    6,438       6,014  
Income tax expense
    1,287       1,244  
Net income
  $ 5,151     $ 4,770  
                 
Weighted average:
               
Common shares
    8,835,830       8,726,733  
Dilutive stock options and restricted stock units
    85,486       116,023  
      8,921,316       8,842,756  
Earnings per share:
               
Basic
    $.58       $.55  
Diluted
    $.58       $.54  
                 
Cash dividends declared per share
    $.23       $.22  
 
See notes to consolidated financial statements

 
 
   
Three Months Ended March 31,
 
(dollars in thousands)
 
2012
   
2011
 
             
Net income
  $ 5,151     $ 4,770  
                 
Other comprehensive income:
               
Unrealized holding gains on available-for sale securities
    909       7,885  
Amortization of net actuarial loss and prior service cost  included in net periodic pension cost
    172       72  
Other comprehensive income before income taxes
    1,081       7,957  
Income tax expense
    430       3,159  
Other Comprehensive Income
    651       4,798  
Comprehensive Income
  $ 5,802     $ 9,568  
 
See notes to consolidated financial statements
 
 
 
   
Three Months Ended March 31, 2012
 
                                     
                           
Accumulated
       
                           
Other
       
   
Common Stock
         
Retained
   
Comprehensive
       
(dollars in thousands)
 
Shares
   
Amount
   
Surplus
   
Earnings
   
Income
   
Total
 
                                     
Balance, January 1, 2012
    8,793,932     $ 879     $ 37,507     $ 133,273     $ 17,688     $ 189,347  
Net income
                            5,151               5,151  
Other comprehensive income
                                    651       651  
Repurchase of common stock
    (6,064 )     (1 )     (161 )                     (162 )
Common stock issued under  stock compensation plans, including tax benefit
    65,461       7       1,027                       1,034  
Common stock issued under  dividend reinvestment and  stock purchase plan
    18,861       2       468                       470  
Stock-based compensation
                    242                       242  
Cash dividend declared
                            (2,042 )             (2,042 )
Balance, March 31, 2012
    8,872,190     $ 887     $ 39,083     $ 136,382     $ 18,339     $ 194,691  
 
   
Three Months Ended March 31, 2011
 
                                                 
                                   
Accumulated
         
                                   
Other
         
   
Common Stock
         
Retained
   
Comprehensive
     
(dollars in thousands)
 
Shares
   
Amount
   
Surplus
   
Earnings
   
Income (Loss)
 
Total
 
                                                 
Balance, January 1, 2011
    8,707,665     $ 871     $ 35,526     $ 121,713     $ (1,416 )   $ 156,694  
Net income
                            4,770               4,770  
Other comprehensive income
                                    4,798       4,798  
Repurchase of common stock
    (5,786 )     (1 )     (152 )                     (153 )
Common stock issued under  stock compensation plans,  including tax benefit
    51,938       5       666                       671  
Stock-based compensation
                    223                       223  
Cash dividend declared
                            (1,926 )             (1,926 )
Balance, March 31, 2011
    8,753,817     $ 875     $ 36,263     $ 124,557     $ 3,382     $ 165,077  

See notes to consolidated financial statements
 
 
 
   
Three Months Ended March 31,
 
(dollars in thousands)
 
2012
   
2011
 
             
Cash Flows From Operating Activities:
           
Net income
  $ 5,151     $ 4,770  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Provision for loan losses
    1,123       854  
Loss on loan held-for-sale
    -       25  
Deferred income tax provision
    206       49  
Depreciation and amortization
    735       708  
Premium amortization on investment securities, net
    2,290       1,050  
Net gains on sales of available-for-sale securities
    (108 )     (122 )
Stock-based compensation expense
    242       223  
Accretion of cash surrender value on bank owned life insurance
    (118 )     (127 )
Decrease in prepaid FDIC assessment
    230       385  
Pension expense
    174       191  
Decrease (increase) in other assets
    563       (1 )
Decrease in accrued expenses and other liabilities
    (296 )     (475 )
Net cash provided by operating activities
    10,192       7,530  
                 
Cash Flows From Investing Activities:
               
Proceeds from sales of available-for-sale securities
    5,108       4,370  
Proceeds from maturities and redemptions of investment securities:
               
Held-to-maturity
    5,473       7,156  
Available-for-sale
    32,659       32,452  
Purchases of investment securities:
               
Held-to-maturity
    (47 )     -  
Available-for-sale
    (67,022 )     (17,600 )
Net increase in loans
    (31,626 )     (37,297 )
Net decrease in restricted stock
    225       721  
Purchases of premises and equipment, net
    (2,158 )     (641 )
Net cash used in investing activities
    (57,388 )     (10,839 )
                 
Cash Flows From Financing Activities:
               
Net increase in deposits
    58,317       63,472  
Net decrease in short-term borrowings
    (4,528 )     (43,410 )
Decrease in long-term debt
    -       (5,000 )
Proceeds from issuance of common stock under dividend reinvestment and stock purchase plan
    470       -  
Proceeds from exercise of stock options
    942       602  
Tax benefit from stock compensation plans
    92       69  
Repurchase and retirement of common stock
    (162 )     (153 )
Cash dividends paid
    (2,023 )     (1,916 )
Net cash provided by financing activities
    53,108       13,664  
                 
Net increase in cash and cash equivalents
    5,912       10,355  
Cash and cash equivalents, beginning of year
    29,495       18,420  
Cash and cash equivalents, end of period
  $ 35,407     $ 28,775  
                 
Supplemental Information:
               
Cash paid for:
               
Interest
  $ 4,280     $ 4,047  
Income taxes
    363       462  
Noncash investing and financing activities:
               
Cash dividends payable
    2,042       1,926  
Loan transferred from portfolio to held-for-sale
    250       -  

See notes to consolidated financial statements
 
 
 
1 - BASIS OF PRESENTATION
 
The accounting and reporting policies of The First of Long Island Corporation reflect banking industry practice and conform to generally accepted accounting principles in the United States.  In preparing the consolidated financial statements, management is required to make estimates, such as the allowance for loan losses, and assumptions that affect the reported asset and liability balances and revenue and expense amounts and the disclosure of contingent assets and liabilities.  Actual results could differ significantly from those estimates.
 
The consolidated financial statements include the accounts of The First of Long Island Corporation and its wholly-owned subsidiary, The First National Bank of Long Island (“Bank”).  The Bank has two wholly owned subsidiaries: The First of Long Island Agency, Inc., a licensed insurance agency under the laws of the State of New York; and, FNY Service Corp., an investment company.  The Bank and FNY Service Corp. jointly own another subsidiary, The First of Long Island REIT, Inc., a real estate investment trust.  The consolidated entity is referred to as the “Corporation” and the Bank and its subsidiaries are collectively referred to as the “Bank.”  All intercompany balances and amounts have been eliminated. For further information refer to the consolidated financial statements and notes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2011.
 
The consolidated financial information included herein as of and for the periods ended March 31, 2012 and 2011 is unaudited.  However, such information reflects all adjustments which are, in the opinion of management, necessary for a fair statement of results for the interim periods.  The December 31, 2011 consolidated balance sheet was derived from the Corporation's December 31, 2011 audited consolidated financial statements.  When appropriate, items in the prior year financial statements are reclassified to conform to the current period presentation.
 
2 - COMPREHENSIVE INCOME
 
Comprehensive income includes net income and other comprehensive income.  Other comprehensive income includes revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but excluded from net income.  Other comprehensive income for the Corporation consists of unrealized holding gains or losses on available-for-sale securities, amortization of net actuarial loss and prior service cost included in net periodic pension cost and changes in the funded status of the Bank’s defined benefit pension plan.  Accumulated other comprehensive income is recognized as a separate component of stockholders’ equity.
 
The components of other comprehensive income and the related tax effects are as follows:
 
   
Three Months Ended March 31,
 
   
2012
   
2011
 
    (in thousands)  
Unrealized holding gains on available-for-sale securities:
           
Change arising during period
  $ 1,017     $ 8,007  
Reclassification adjustment for gains included in net income
    (108 )     (122 )
Net unrealized gains on available-for-sale securities
    909       7,885  
Tax effect
    361       3,130  
      548       4,755  
                 
Amortization included in net periodic pension cost:
               
Prior service cost
    6       6  
Net actuarial loss
    166       66  
      172       72  
Tax effect
    69       29  
      103       43  
                 
Other comprehensive income
  $ 651     $ 4,798  
 
The following sets forth the components of accumulated other comprehensive income, net of tax:
 
         
Current
       
   
Balance
   
Period
   
Balance
 
   
12/31/11
   
Change
   
3/31/12
 
   
(in thousands)
 
Unrealized holding gains on available-for-sale securities
  $ 23,330     $ 548     $ 23,878  
Unrealized net actuarial loss and prior service cost on pension plan
    (5,642 )     103       (5,539 )
Accumulated other comprehensive income
  $ 17,688     $ 651     $ 18,339  
 
 
3 - INVESTMENT SECURITIES
 
The following tables set forth the amortized cost and estimated fair values of the Bank’s investment securities.
 
   
March 31, 2012
 
         
Gross
   
Gross
       
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
 
   
Cost
   
Gains
   
Losses
   
Value
 
Held-to-Maturity Securities:
  (in thousands)  
State and municipals
  $ 41,730     $ 2,688     $ -     $ 44,418  
Pass-through mortgage securities
    6,095       519       -       6,614  
Collateralized mortgage obligations
    8,867       477       -       9,344  
    $ 56,692     $ 3,684     $ -     $ 60,376  
Available-for-Sale Securities:
                               
State and municipals
  $ 303,180     $ 21,300     $ (305 )   $ 324,175  
Pass-through mortgage securities
    66,972       5,275       (34 )     72,213  
Collateralized mortgage obligations
    512,156       13,791       (430 )     525,517  
    $ 882,308     $ 40,366     $ (769 )   $ 921,905  
                                 
   
December 31, 2011
 
           
Gross
   
Gross
         
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
 
   
Cost
   
Gains
   
Losses
   
Value
 
Held-to-Maturity Securities:
    (in thousands)  
State and municipals
  $ 43,091     $ 2,906     $ -     $ 45,997  
Pass-through mortgage securities
    6,851       551       -       7,402  
Collateralized mortgage obligations
    12,143       535       -       12,678  
    $ 62,085     $ 3,992     $ -     $ 66,077  
Available-for-Sale Securities:
                               
U.S. government agencies
  $ 5,000     $ 113     $ -     $ 5,113  
State and municipals
    292,662       20,580       (47 )     313,195  
Pass-through mortgage securities
    68,060       5,726       -       73,786  
Collateralized mortgage obligations
    489,546       12,933       (617 )     501,862  
    $ 855,268     $ 39,352     $ (664 )   $ 893,956  
 
At March 31, 2012 and December 31, 2011, investment securities with a carrying value of $293,704,000 and $290,658,000, respectively, were pledged as collateral to secure public deposits and borrowed funds.
 
 
Securities With Unrealized Losses. The following tables set forth securities with unrealized losses presented by length of time the securities have been in a continuous unrealized loss position.
 
   
March 31, 2012
 
   
Less than
             
   
12 Months
   
Total
 
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
   
Value
   
Loss
   
Value
   
Loss
 
   
(in thousands)
 
State and municipals
  $ 16,334     $ (305 )   $ 16,334     $ (305 )
Pass-through mortgage securities
    2,930       (34 )     2,930       (34 )
Collateralized mortgage obligations
    58,193       (430 )     58,193       (430 )
Total temporarily impaired
  $ 77,457     $ (769 )   $ 77,457     $ (769 )
 
   
December 31, 2011
 
   
Less than
                 
   
12 Months
   
Total
 
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
   
Value
   
Loss
   
Value
   
Loss
 
   
(in thousands)
 
State and municipals
  $ 6,176     $ (47 )   $ 6,176     $ (47 )
Collateralized mortgage obligations
    66,357       (617 )     66,357       (617 )
Total temporarily impaired
  $ 72,533     $ (664 )   $ 72,533     $ (664 )
 
Investment securities are evaluated for other-than-temporary impairment (“OTTI”) no less often than quarterly.  In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; (3) whether the market decline was affected by macroeconomic conditions; and (4) whether management has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery.  The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.
 
When OTTI occurs, management considers whether it intends to sell, or, more likely than not, will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis.  If either of these criteria is met, the entire difference between amortized cost and fair value is recognized in earnings.  For securities that do not meet the aforementioned criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income.
 
Because the unrealized losses reflected in the preceding tables are attributable to changes in interest rates and not credit losses, and because management does not have the intent to sell these securities and it is not likely that it will be required to sell these securities before their anticipated recovery, the Bank does not consider these securities to be other-than-temporarily impaired at March 31, 2012.
 
Sales of Available-for-Sale Securities. Sales of available-for-sale securities were as follows:
 
   
Three Months Ended
 
   
March 31,
 
   
2012
   
2011
 
   
(in thousands)
 
Proceeds
  $ 5,108     $ 4,370  
                 
Gross gains
  $ 108     $ 122  
Gross losses
    -       -  
Net gains
  $ 108     $ 122  
 
The tax provisions related to these net realized gains were $43,000 and $48,000 for the three months ended March 31, 2012 and 2011, respectively.
 
 
Maturities.  The following table sets forth by maturity the amortized cost and fair value of the investment securities portfolio at March 31, 2012.  State and municipal securities are included in the table at the earlier of their stated maturity or, if applicable, their pre-refunded date.  The mortgage-backed securities shown in the table are expected to have substantial periodic repayments.
 
   
Amortized Cost
   
Fair Value
 
Held-to-Maturity Securities
  (in thousands)  
Within one year
  $ 2,052     $ 2,064  
After 1 through 5 years
    11,704       12,412  
After 5 through 10 years
    23,603       25,249  
After 10 years
    4,371       4,693  
Mortgage-backed securities
    14,962       15,958  
    $ 56,692     $ 60,376  
Available-for-Sale Securities
               
Within one year
  $ 1,347     $ 1,361  
After 1 through 5 years
    8,564       8,898  
After 5 through 10 years
    24,573       25,839  
After 10 years
    268,696       288,077  
Mortgage-backed securities
    579,128       597,730  
    $ 882,308     $ 921,905  
 
4 - LOANS
 
The following tables set forth by portfolio segment as of March 31, 2012 and December 31, 2011: (1) the amount of loans individually evaluated for impairment and the portion of the allowance for loan losses allocable to such loans; and (2) the amount of loans collectively evaluated for impairment and the portion of the allowance for loan losses allocable to such loans.  They also set forth by portfolio segment the activity in the allowance for loan losses for the three months ended March 31, 2012 and 2011.  Construction and land development loans, if any, are included with commercial mortgages in the following tables.
 
   
2012
 
   
Commercial
   
Commercial
   
Residential
   
Home
             
   
& Industrial
   
Mortgages
   
Mortgages
   
Equity
   
Other
   
Total
 
   
(in thousands)
 
Loans:
                                   
Individually evaluated for impairment
  $ 9     $ 3,922     $ 4,364     $ 418     $ -     $ 8,713  
Collectively evaluated for impairment
    48,969       461,695       398,526       91,416       4,467       1,005,073  
    $ 48,978     $ 465,617     $ 402,890     $ 91,834     $ 4,467     $ 1,013,786  
Allocation of allowance for loan losses:
                                               
Individually evaluated for impairment
  $ -     $ 276     $ 502     $ -     $ -     $ 778  
Collectively evaluated for impairment
    843       8,701       5,092       1,675       160       16,471  
    $ 843     $ 8,977     $ 5,594     $ 1,675     $ 160     $ 17,249  
Activity in allowance for loan losses:
                                               
Balance at 1/1/12
  $ 699     $ 9,069     $ 5,228     $ 1,415     $ 161     $ 16,572  
Chargeoffs
    -       -       -       450       4       454  
Recoveries
    2       5       -       -       1       8  
Provision for loan losses (credit)
    142       (97 )     366       710       2       1,123  
Balance at 3/31/12
  $ 843     $ 8,977     $ 5,594     $ 1,675     $ 160     $ 17,249  
 
 
   
2011
 
   
Commercial
   
Commercial
   
Residential
   
Home
             
   
& Industrial
   
Mortgages
   
Mortgages
   
Equity
   
Other
   
Total
 
   
(in thousands)
 
Loans:
                                   
Individually evaluated for impairment
  $ 12     $ 3,949     $ 4,399     $ 1,124     $ -     $ 9,484  
Collectively evaluated for impairment
    42,560       455,926       368,078       102,389       4,596       973,549  
    $ 42,572     $ 459,875     $ 372,477     $ 103,513     $ 4,596     $ 983,033  
Allocation of allowance for loan losses:
                                               
Individually evaluated for impairment
  $ 1     $ 357     $ 676     $ -     $ -     $ 1,034  
Collectively evaluated for impairment
    698       8,712       4,552       1,415       161       15,538  
    $ 699     $ 9,069     $ 5,228     $ 1,415     $ 161     $ 16,572  
                                                 
Activity in allowance for loan losses:
                                               
Balance at 1/1/11
  $ 803     $ 7,680     $ 4,059     $ 1,415     $ 57     $ 14,014  
Chargeoffs
    -       -       -       -       -       -  
Recoveries
    5       -       -       -       -       5  
Provision for loan losses (credit)
    (51 )     777       136       (114 )     106       854  
Balance at 3/31/11
  $ 757     $ 8,457     $ 4,195     $ 1,301     $ 163     $ 14,873  

For individually impaired loans, the following tables set forth by class of loans as of March 31, 2012 and December 31, 2011 the recorded investment, unpaid principal balance and related allowance.  They also set forth the average recorded investment of individually impaired loans and interest income recognized while the loans were impaired during the three months ended March 31, 2012 and 2011.
 
          Three Months Ended  
   
March 31, 2012
   
March 31, 2012
 
         
Unpaid
         
Average
   
Interest
 
   
Recorded
   
Principal
   
Related
   
Recorded
   
Income
 
   
Investment
   
Balance
   
Allowance
   
Investment
   
Recognized
 
With no related allowance recorded:
  (in thousands)  
Commercial and industrial
  $ 9     $ 9     $ -     $ 11     $ -  
Commercial mortgages:
                                       
Other
    775       775       -       777       11  
Residential mortgages
    160       160       -       167       -  
Home equity
    418       418       -       516       24  
      1,362       1,362       -       1,471       35  
With an allowance recorded:
                                       
Commercial mortgages:
                                       
Multifamily
    1,380       1,380       231       1,390       -  
Other
    1,767       1,767       45       1,773       34  
Residential mortgages
    4,204       4,204       502       4,123       25  
      7,351       7,351       778       7,286       59  
Total:
                                       
Commercial and industrial
    9       9       -       11       -  
Commercial mortgages:
                                       
Multifamily
    1,380       1,380       231       1,390       -  
Other
    2,542       2,542       45       2,550       45  
Residential mortgages
    4,364       4,364       502       4,290       25  
Home equity
    418       418       -       516       24  
    $ 8,713     $ 8,713     $ 778     $ 8,757     $ 94  
 
 
                     
Three Months Ended
 
   
December 31, 2011
   
March 31, 2011
 
         
Unpaid
         
Average
   
Interest
 
   
Recorded
   
Principal
   
Related
   
Recorded
   
Income
 
   
Investment
   
Balance
   
Allowance
   
Investment
   
Recognized
 
With no related allowance recorded:
  (in thousands)  
Commercial mortgages:
                             
Multifamily
  $ 740     $ 740     $ -     $ 444     $ -  
Other
    39       39       -                  
Residential mortgages
    174       174       -       747       2  
Home equity
    1,124       1,124       -                  
      2,077       2,077       -       1,191       2  
With an allowance recorded:
                                       
Commercial and industrial
    12       12       1       25       1  
Commercial mortgages:
                                       
Multifamily
    1,393       1,393       312       1,867       -  
Other
    1,777       1,777       45                  
Residential mortgages
    4,225       4,225       676                  
      7,407       7,407       1,034       1,892       1  
Total:
                                       
Commercial and industrial
    12       12       1       25       1  
Commercial mortgages:
                                       
Multifamily
    2,133       2,133       312       2,311       -  
Other
    1,816       1,816       45                  
Residential mortgages
    4,399       4,399       676       747       2  
Home equity
    1,124       1,124       -                  
    $ 9,484     $ 9,484     $ 1,034     $ 3,083     $ 3  
 
Interest income recorded by the Corporation on loans considered to be impaired was generally recognized using the accrual method of accounting.  Any payments received on nonaccrual impaired loans are applied to the recorded investment in the loans.
 
Aging of Loans.  The following tables present the aging of the recorded investment in loans by class of loans.
 
   
March 31, 2012
 
               
Past Due
         
Total Past
             
               
90 Days or
         
Due Loans &
             
   
30-59 Days
   
60-89 Days
   
More and
   
Nonaccrual
   
Nonaccrual
         
Total
 
   
Past Due
   
Past Due
   
Still Accruing
   
Loans
   
Loans
   
Current
   
Loans
 
   
(in thousands)
 
Commercial and industrial
  $ 70     $ -     $ -     $ -     $ 70     $ 48,908     $ 48,978  
Commercial mortgages:
                                                       
Multifamily
    383       -       -       1,380       1,763       235,847       237,610  
Owner-occupied
    -       -       -       -       -       85,591       85,591  
Other
    -       -       -       -       -       142,416       142,416  
Residential mortgages
    296       -       -       749       1,045       401,845       402,890  
Home equity
    -       -       -       343       343       91,491       91,834  
Other
    -       -       -       -       -       4,467       4,467  
    $ 749     $ -     $ -     $ 2,472     $ 3,221     $ 1,010,565     $ 1,013,786  
 
 
   
December 31, 2011
 
               
Past Due
         
Total Past
             
               
90 Days or
         
Due Loans &
             
   
30-59 Days
   
60-89 Days
   
More and
   
Nonaccrual
   
Nonaccrual
         
Total
 
   
Past Due
   
Past Due
   
Still Accruing
  &