FINANCIAL INSTITUTIONS INC, 10-Q filed on 8/5/2014
Quarterly Report
Document And Entity Information
6 Months Ended
Jun. 30, 2014
Jul. 31, 2014
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2014 
 
Document Fiscal Period Focus
Q2 
 
Document Fiscal Year Focus
2014 
 
Entity Registrant Name
FINANCIAL INSTITUTIONS INC 
 
Entity Central Index Key
0000862831 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
13,863,226 
Consolidated Statements Of Financial Condition (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Cash and cash equivalents:
 
 
Cash and due from banks
$ 64,738 
$ 59,598 
Federal funds sold and interest-bearing deposits in other banks
94 
94 
Total cash and cash equivalents
64,832 
59,692 
Securities available for sale, at fair value
601,903 
609,400 
Securities held to maturity, at amortized cost (fair value of $266,640 and $250,657, respectively)
262,057 
249,785 
Loans held for sale
201 
3,381 
Loans (net of allowance for loan losses of $27,166 and $26,736, respectively)
1,869,498 
1,806,883 
Company owned life insurance
50,033 
49,171 
Premises and equipment, net
35,925 
36,009 
Goodwill and other intangible assets, net
49,826 
50,002 
Other assets
58,989 
64,313 
Total assets
2,993,264 
2,928,636 
Deposits:
 
 
Noninterest-bearing demand
551,229 
535,472 
Interest-bearing demand
507,083 
470,733 
Savings and money market
766,594 
717,928 
Certificates of deposit
625,172 
595,923 
Total deposits
2,450,078 
2,320,056 
Short-term borrowings
254,683 
337,042 
Other liabilities
18,676 
16,699 
Total liabilities
2,723,437 
2,673,797 
Shareholders' equity:
 
 
Total preferred equity
17,340 
17,342 
Common stock, $0.01 par value, 50,000,000 shares authorized; 14,161,597 shares issued
142 
142 
Additional paid-in capital
67,223 
67,574 
Retained earnings
194,418 
186,137 
Accumulated other comprehensive (loss) income
(3,720)
(10,187)
Treasury stock, at cost - 299,121 and 332,242 shares, respectively
(5,576)
(6,169)
Total shareholders' equity
269,827 
254,839 
Total liabilities and shareholders' equity
2,993,264 
2,928,636 
Series A 3% Preferred Stock [Member]
 
 
Shareholders' equity:
 
 
Total preferred equity
149 
149 
Series B-1 8.48% Preferred Stock [Member]
 
 
Shareholders' equity:
 
 
Total preferred equity
$ 17,191 
$ 17,193 
Consolidated Statements Of Financial Condition (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Securities held to maturity, fair value
$ 266,640 
$ 250,657 
Loans, allowance for loan losses
$ 27,166 
$ 26,736 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
50,000,000 
50,000,000 
Common stock, shares issued
14,161,597 
14,161,597 
Treasury stock, shares
299,121 
332,242 
Series A 3% Preferred Stock [Member]
 
 
Preferred stock, par value
$ 100 
$ 100 
Preferred stock, shares authorized
1,533 
1,533 
Preferred stock, shares issued
1,492 
1,496 
Series B-1 8.48% Preferred Stock [Member]
 
 
Preferred stock, par value
$ 100 
$ 100 
Preferred stock, shares authorized
200,000 
200,000 
Preferred stock, shares issued
171,906 
171,927 
Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Interest income:
 
 
 
 
Interest and fees on loans
$ 20,230 
$ 20,064 
$ 40,497 
$ 40,443 
Interest and dividends on investment securities
4,653 
4,278 
9,445 
8,647 
Total interest income
24,883 
24,342 
49,942 
49,090 
Interest expense:
 
 
 
 
Deposits
1,577 
1,665 
3,102 
3,336 
Short-term borrowings
203 
153 
462 
343 
Total interest expense
1,780 
1,818 
3,564 
3,679 
Net interest income
23,103 
22,524 
46,378 
45,411 
Provision for loan losses
1,758 
1,193 
3,864 
3,902 
Net interest income after provision for loan losses
21,345 
21,331 
42,514 
41,509 
Noninterest income:
 
 
 
 
Service charges on deposits
2,241 
2,568 
4,491 
4,709 
ATM and debit card
1,257 
1,317 
2,431 
2,566 
Investment advisory
561 
650 
1,124 
1,349 
Company owned life insurance
425 
438 
828 
853 
Investments in limited partnerships
81 
136 
707 
297 
Loan servicing
176 
152 
330 
225 
Net gain on disposal of investment securities
949 
332 
1,262 
1,224 
Net gain on sale of loans held for sale
50 
35 
155 
235 
Net gain (loss) on disposal of other assets
24 
38 
(11)
39 
Other
813 
710 
1,617 
1,432 
Total noninterest income
6,577 
6,376 
12,934 
12,929 
Noninterest expense:
 
 
 
 
Salaries and employee benefits
9,063 
9,226 
18,319 
18,935 
Occupancy and equipment
3,139 
3,035 
6,374 
6,204 
Professional services
1,384 
1,093 
2,356 
2,030 
Computer and data processing
777 
812 
1,500 
1,516 
Supplies and postage
535 
608 
1,047 
1,288 
FDIC assessments
388 
364 
810 
725 
Advertising and promotions
214 
253 
393 
467 
Other
2,308 
2,071 
4,222 
3,881 
Total noninterest expense
17,808 
17,462 
35,021 
35,046 
Income before income taxes
10,114 
10,245 
20,427 
19,392 
Income tax expense
3,082 
3,395 
6,176 
6,393 
Net income
7,032 
6,850 
14,251 
12,999 
Preferred stock dividends
365 
367 
731 
735 
Net income available to common shareholders
$ 6,667 
$ 6,483 
$ 13,520 
$ 12,264 
Earnings per common share (Note 2):
 
 
 
 
Basic
$ 0.48 
$ 0.47 
$ 0.98 
$ 0.89 
Diluted
$ 0.48 
$ 0.47 
$ 0.98 
$ 0.89 
Cash dividends declared per common share
$ 0.19 
$ 0.18 
$ 0.38 
$ 0.36 
Weighted average common shares outstanding:
 
 
 
 
Basic
13,791 
13,739 
13,782 
13,728 
Diluted
13,838 
13,767 
13,831 
13,767 
Consolidated Statements Of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Consolidated Statements Of Comprehensive Income (Loss) [Abstract]
 
 
 
 
Net income
$ 7,032 
$ 6,850 
$ 14,251 
$ 12,999 
Other comprehensive income (loss), net of tax:
 
 
 
 
Net unrealized gains (losses) on securities available for sale
2,684 
(14,470)
6,428 
(16,785)
Pension and post-retirement obligations
20 
199 
39 
398 
Total other comprehensive income (loss), net of tax
2,704 
(14,271)
6,467 
(16,387)
Comprehensive income (loss)
$ 9,736 
$ (7,421)
$ 20,718 
$ (3,388)
Consolidated Statement Of Changes In Shareholders' Equity (USD $)
In Thousands, unless otherwise specified
Series A 3% Preferred Stock [Member]
Retained Earnings [Member]
Series A 3% Preferred Stock [Member]
Series B-1 8.48% Preferred Stock [Member]
Preferred Equity [Member]
Series B-1 8.48% Preferred Stock [Member]
Additional Paid-In Capital [Member]
Series B-1 8.48% Preferred Stock [Member]
Retained Earnings [Member]
Series B-1 8.48% Preferred Stock [Member]
Preferred Equity [Member]
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Total
Balance at Dec. 31, 2012
 
 
 
 
 
 
$ 17,471 
$ 142 
$ 67,710 
$ 172,244 
$ 3,253 
$ (6,923)
$ 253,897 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
 
12,999 
 
 
12,999 
Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
 
 
 
(16,387)
 
(16,387)
Stock repurchases
 
 
(77)
(2)
 
(79)
 
 
 
 
 
(229)
(229)
Share-based compensation plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation
 
 
 
 
 
 
 
 
205 
 
 
 
205 
Stock options exercised
 
 
 
 
 
 
 
 
(3)
 
 
62 
59 
Restricted stock awards issued, net
 
 
 
 
 
 
 
 
(427)
 
 
427 
 
Excess tax benefit on share-based compensation
 
 
 
 
 
 
 
 
(10)
 
 
 
(10)
Directors' retainer
 
 
 
 
 
 
 
 
7 
 
 
105 
112 
Cash dividends declared:
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock dividends per share
(2)
(2)
 
 
(733)
(733)
 
 
 
 
 
 
(735)
Common stock dividends per share
 
 
 
 
 
 
 
 
 
(4,944)
 
 
(4,944)
Balance at Jun. 30, 2013
 
 
 
 
 
 
17,394 
142 
67,480 
179,564 
(13,134)
(6,558)
244,888 
Balance at Dec. 31, 2013
 
 
 
 
 
 
17,342 
142 
67,574 
186,137 
(10,187)
(6,169)
254,839 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
 
14,251 
 
 
14,251 
Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
 
 
 
6,467 
 
6,467 
Stock repurchases
 
 
(2)
 
 
(2)
 
 
 
 
 
(195)
(195)
Share-based compensation plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation
 
 
 
 
 
 
 
 
305 
 
 
 
305 
Stock options exercised
 
 
 
 
 
 
 
 
(1)
 
 
133 
132 
Restricted stock awards issued, net
 
 
 
 
 
 
 
 
(655)
 
 
655 
 
Cash dividends declared:
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock dividends per share
(2)
(2)
 
 
(729)
(729)
 
 
 
 
 
 
(731)
Common stock dividends per share
 
 
 
 
 
 
 
 
 
(5,239)
 
 
(5,239)
Balance at Jun. 30, 2014
 
 
 
 
 
 
$ 17,340 
$ 142 
$ 67,223 
$ 194,418 
$ (3,720)
$ (5,576)
$ 269,827 
Consolidated Statement Of Changes In Shareholders' Equity (Parenthetical)
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Common stock dividends per share, declared
$ 0.38 
$ 0.36 
Series A 3% Preferred Stock [Member]
 
 
Preferred stock dividends per share, declared
$ 1.50 
$ 1.50 
Preferred stock, dividend percentage
3.00% 
3.00% 
Series B-1 8.48% Preferred Stock [Member]
 
 
Preferred stock dividends per share, declared
$ 4.24 
$ 4.24 
Preferred stock, dividend percentage
8.48% 
8.48% 
Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Cash flows from operating activities:
 
 
 
 
Net income
$ 7,032 
$ 6,850 
$ 14,251 
$ 12,999 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
 
2,061 
2,099 
Net amortization of premiums on securities
 
 
1,582 
2,560 
Provision for loan losses
1,758 
1,193 
3,864 
3,902 
Share-based compensation
202 
103 
305 
205 
Deferred income tax expense
 
 
1,066 
2,771 
Proceeds from sale of loans held for sale
 
 
7,705 
19,379 
Originations of loans held for sale
 
 
(5,223)
(21,049)
Increase in company owned life insurance
(425)
(438)
(828)
(853)
Net gain on sale of loans held for sale
(50)
(35)
(155)
(235)
Net gain on disposal of investment securities
(949)
(332)
(1,262)
(1,224)
Net loss (gain) on sale and disposal of other assets
(24)
(38)
11 
(39)
Decrease in other assets
 
 
288 
6,562 
Decrease in other liabilities
 
 
(249)
(511)
Net cash provided by operating activities
 
 
23,416 
26,566 
Cash flows from investing activities:
 
 
 
 
Purchases of available for sale securities
 
 
(125,419)
(160,140)
Purchases of held to maturity securities
 
 
(28,594)
(5,166)
Proceeds from principal payments, maturities and calls on available for sale securities
 
 
83,904 
94,956 
Proceeds from principal payments, maturities and calls on held to maturity securities
 
 
16,491 
5,723 
Proceeds from sales of securities available for sale
41,958 
375 
61,428 
1,327 
Net loan originations
 
 
(65,937)
(41,340)
Purchases of company owned life insurance
 
 
(34)
(34)
Proceeds from sales of other assets
 
 
623 
467 
Purchases of premises and equipment
 
 
(2,371)
(2,258)
Net cash used in investing activities
 
 
(59,909)
(106,465)
Cash flows from financing activities:
 
 
 
 
Net increase in deposits
 
 
130,022 
62,442 
Net (decrease) increase in short-term borrowings
 
 
(82,359)
13,607 
Repurchase of preferred stock
 
 
(2)
(79)
Purchase of common stock for treasury
 
 
(195)
(229)
Proceeds from stock options exercised
 
 
132 
59 
Excess tax benefit on share-based compensation, net
 
 
 
(10)
Cash dividends paid to common and preferred shareholders
 
 
(5,965)
(5,400)
Net cash provided by financing activities
 
 
41,633 
70,390 
Net increase (decrease) in cash and cash equivalents
 
 
5,140 
(9,509)
Cash and cash equivalents, beginning of period
 
 
59,692 
60,436 
Cash and cash equivalents, end of period
64,832 
50,927 
64,832 
50,927 
Supplemental information:
 
 
 
 
Cash paid for interest
 
 
3,313 
3,679 
Cash paid for income taxes
 
 
8,313 
1,697 
Noncash investing and financing activities:
 
 
 
 
Real estate and other assets acquired in settlement of loans
 
 
311 
626 
Accrued and declared unpaid dividends
2,986 
2,841 
2,986 
2,841 
Increase (decrease) in net unsettled security purchases
2,260 
(47,972)
2,260 
(47,972)
Loans transferred from held for sale to held for investment
 
 
$ 853 
 
Basis of Presentation And Summary Of Significant Accounting Policies
Basis Of Presentation And Summary Of Significant Accounting Policies

(1.) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Financial Institutions, Inc., is a financial holding company organized in 1931 under the laws of New York State ("New York" or "NYS"). Through its wholly-owned New York chartered banking subsidiary, Five Star Bank, Financial Institutions, Inc. offers a broad array of deposit, lending and other financial services to individuals, municipalities and businesses in Western and Central New York. The Company has also expanded its indirect lending network to include relationships with franchised automobile dealers in the Capital District of New York and Northern Pennsylvania. References to "the Company" mean the consolidated reporting entities and references to "the Bank" mean Five Star Bank.

Basis of Presentation

The consolidated financial statements include the accounts of Financial Institutions, Inc. and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in conformity with GAAP have been condensed or omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all adjustments of a normal and recurring nature necessary for a fair presentation of the consolidated statements of financial condition, income, comprehensive income, changes in shareholders' equity and cash flows for the periods indicated, and contain adequate disclosure to make the information presented not misleading. Prior years' consolidated financial statements are re-classified whenever necessary to conform to the current year's presentation. These consolidated financial statements should be read in conjunction with the Company's 2013 Annual Report on Form 10-K. The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year.

Subsequent Events

The Company has evaluated events and transactions for potential recognition or disclosure through the day the financial statements were issued. Other than completing the acquisition of Scott Danahy Naylon Co., Inc. ("SDN"), as described below, the Company did not have any material recognizable subsequent events.

On August 1, 2014, the Company completed its acquisition of SDN, a full service insurance agency located in Amherst, New York. SDN provides a broad range of insurance services to both personal and business clients. SDN will operate as a subsidiary of Financial Institutions, Inc. and an affiliate of Five Star Bank.

Use of Estimates

The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates relate to the determination of the allowance for loan losses, the carrying value of goodwill and deferred tax assets, the valuation and other than temporary impairment ("OTTI") considerations related to the securities portfolio, and assumptions used in the defined benefit pension plan accounting.

Recent Accounting Pronouncements

In January 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2014-04,

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 is not expected to have a material impact on the Company's consolidated statements of income and condition.

Earnings Per Common Share ("EPS")
Earnings Per Common Share ("EPS")

(2.) EARNINGS PER COMMON SHARE ("EPS")

The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted EPS (in thousands, except per share amounts).

    Three months ended     Six months ended  
    June 30,     June 30,  
    2014     2013     2014     2013  
Net income available to common shareholders $ 6,667   $ 6,483   $ 13,520   $ 12,264  
 
Weighted average common shares outstanding:                        
Total shares issued   14,162     14,162     14,162     14,162  
Unvested restricted stock awards   (67 )   (66 )   (65 )   (73 )
Treasury shares   (304 )   (357 )   (315 )   (361 )
Total basic weighted average common shares outstanding   13,791     13,739     13,782     13,728  
 
Incremental shares from assumed:                        
Exercise of stock options   28     5     25     6  
Vesting of restricted stock awards   19     23     24     33  
Total diluted weighted average common shares outstanding   13,838     13,767     13,831     13,767  
 
Basic earnings per common share $ 0.48   $ 0.47   $ 0.98   $ 0.89  
Diluted earnings per common share $ 0.48   $ 0.47   $ 0.98   $ 0.89  

 

For each of the periods presented, average shares subject to the following instruments were excluded from the computation of diluted EPS because the effect would be antidilutive:

Stock options - 225 7 188
Restricted stock awards 3 9 1 5
  3 234 8 193

 

Investment Securities
Investment Securities

(3.) INVESTMENT SECURITIES

The amortized cost and fair value of investment securities are summarized below (in thousands):

    Amortized   Unrealized   Unrealized   Fair
    Cost   Gains   Losses   Value
June 30, 2014                
Securities available for sale:                
U.S. Government agencies and government                
sponsored enterprises $ 134,448 $ 1,719 $ 1,050 $ 135,117
Mortgage-backed securities:                
Federal National Mortgage Association   172,449   1,993   2,217   172,225
Federal Home Loan Mortgage Corporation   32,922   894   10   33,806
Government National Mortgage Association   62,946   2,551   54   65,443
Collateralized mortgage obligations:                
Federal National Mortgage Association   63,224   431   1,427   62,228
Federal Home Loan Mortgage Corporation   96,922   215   3,289   93,848
Government National Mortgage Association   36,852   911   73   37,690
Privately issued   -   1,315   -   1,315
Total collateralized mortgage obligations   196,998   2,872   4,789   195,081
Total mortgage-backed securities   465,315   8,310   7,070   466,555
Asset-backed securities   -   231   -   231
Total available for sale securities $ 599,763 $ 10,260 $ 8,120 $ 601,903
Securities held to maturity:                
State and political subdivisions $ 262,057 $ 4,661 $ 78 $ 266,640

 

    Amortized   Unrealized   Unrealized   Fair
    Cost   Gains   Losses   Value
December 31, 2013                
Securities available for sale:                
U.S. Government agencies and government                
sponsored enterprises $ 135,840 $ 1,414 $ 2,802 $ 134,452
Mortgage-backed securities:                
Federal National Mortgage Association   173,507   1,511   4,810   170,208
Federal Home Loan Mortgage Corporation   36,737   562   205   37,094
Government National Mortgage Association   61,832   2,152   142   63,842
Collateralized mortgage obligations:                
Federal National Mortgage Association   63,838   261   3,195   60,904
Federal Home Loan Mortgage Corporation   102,660   169   5,856   96,973
Government National Mortgage Association   43,734   913   586   44,061
Privately issued   -   1,467   -   1,467
Total collateralized mortgage obligations   210,232   2,810   9,637   203,405
Total mortgage-backed securities   482,308   7,035   14,794   474,549
Asset-backed securities   18   381   -   399
Total available for sale securities $ 618,166 $ 8,830 $ 17,596 $ 609,400
Securities held to maturity:                
State and political subdivisions $ 249,785 $ 1,340 $ 468 $ 250,657

 

Investment securities with a total fair value of $745.5 million and $763.1 million at June 30, 2014 and December 31, 2013, respectively, were pledged as collateral to secure public deposits and for other purposes required or permitted by law.

The scheduled maturities of securities available for sale and securities held to maturity at June 30, 2014 are shown below (in thousands).

Actual expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.

    Amortized   Fair
    Cost   Value
Debt securities available for sale:        
Due in one year or less $ 25,204 $ 25,204
Due from one to five years   83,162   84,857
Due after five years through ten years   205,664   205,297
Due after ten years   285,733   286,545
  $ 599,763 $ 601,903
Debt securities held to maturity:        
Due in one year or less $ 23,466 $ 23,556
Due from one to five years   132,765   134,973
Due after five years through ten years   105,784   108,057
Due after ten years   42   54
  $ 262,057 $ 266,640

 

Sales and calls of securities available for sale were as follows (in thousands):

    Three months ended   Six months ended
    June 30,   June 30,
    2014 2013    2014   2013
Proceeds from sales and calls $ 41,958 $ 375 $ 61,428 $ 1,327
Gross realized gains   949   332   1,262   1,224

 

Unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands):

    Less than 12 months   12 months or longer   Total
    Fair   Unrealized   Fair Unrealized    Fair Unrealized 
    Value   Losses   Value   Losses   Value   Losses
June 30, 2014                        
Securities available for sale:                        
U.S. Government agencies and government                        
sponsored enterprises $ 30,830 $ 2 $ 41,159 $ 1,048 $ 71,989 $ 1,050
Mortgage-backed securities:                        
Federal National Mortgage Association   34,572   107   64,582   2,110   99,154   2,217
Federal Home Loan Mortgage Corporation   -   -   3,750   10   3,750   10
Government National Mortgage Association   5,440   54   -   -   5,440   54
Collateralized mortgage obligations:                        
Federal National Mortgage Association   9,010   22   37,314   1,405   46,324   1,427
Federal Home Loan Mortgage Corporation   2,619   22   83,809   3,267   86,428   3,289
Government National Mortgage Association   -   -   5,683   73   5,683   73
Total collateralized mortgage obligations   11,629   44   126,806   4,745   138,435   4,789
Total mortgage-backed securities   51,641   205   195,138   6,865   246,779   7,070
Total available for sale securities   82,471   207   236,297   7,913   318,768   8,120
Securities held to maturity:                        
State and political subdivisions   13,285   78   -   -   13,285   78
Total $ 95,756 $ 285 $ 236,297 $ 7,913 $ 332,053 $ 8,198
 
December 31, 2013                        
Securities available for sale:                        
U.S. Government agencies and government                        
sponsored enterprises $ 86,177 $ 2,788 $ 2,717 $ 14 $ 88,894 $ 2,802
Mortgage-backed securities:                        
Federal National Mortgage Association   103,778   3,491   20,689   1,319   124,467   4,810
Federal Home Loan Mortgage Corporation   14,166   205   -   -   14,166   205
Government National Mortgage Association   14,226   142   -   -   14,226   142
Collateralized mortgage obligations:                        
Federal National Mortgage Association   35,632   2,586   11,760   609   47,392   3,195
Federal Home Loan Mortgage Corporation   72,655   4,980   15,762   876   88,417   5,856
Government National Mortgage Association   8,396   586   -   -   8,396   586
Total collateralized mortgage obligations   116,683   8,152   27,522   1,485   144,205   9,637
Total mortgage-backed securities   248,853   11,990   48,211   2,804   297,064   14,794
Total available for sale securities   335,030   14,778   50,928   2,818   385,958   17,596
Securities held to maturity:                        
State and political subdivisions   72,269   468   -   -   72,269   468
Total $ 407,299 $ 15,246 $ 50,928 $ 2,818 $ 458,227 $ 18,064

 

The total number of security positions in the investment portfolio in an unrealized loss position at June 30, 2014 was 129 compared to 331 at December 31, 2013. At June 30, 2014, the Company had positions in 61 investment securities with a fair value of $236.3 million and a total unrealized loss of $7.9 million that have been in a continuous unrealized loss position for more than 12 months. There were a total of 68 securities positions in the Company's investment portfolio, with a fair value of $95.8 million and a total unrealized loss of $285 thousand at June 30, 2014, that have been in a continuous unrealized loss position for less than 12 months. The unrealized loss on these investment securities was predominantly caused by changes in market interest rates subsequent to purchase. The fair value of most of the investment securities in the Company's portfolio fluctuates as market interest rates change.

The Company reviews investment securities on an ongoing basis for the presence of other-than-temporary impairment ("OTTI") with formal reviews performed quarterly. When evaluating debt securities for 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 the Company has the intention to sell the debt security or whether it is more likely than not that it will be required to sell the debt security before its anticipated recovery. The assessment of whether OTTI exists involves a high degree of subjectivity and judgment and is based on the information then available to management. There was no impairment recorded during the six months ended June 30, 2014 and 2013.

Based on management's review and evaluation of the Company's debt securities as of June 30, 2014, the debt securities with unrealized losses were not considered to be OTTI. As of June 30, 2014, the Company did not intend to sell any of the securities in a loss position and believes that it is not likely that it will be required to sell any such securities before the anticipated recovery of amortized cost. Accordingly, as of June 30, 2014, management has concluded that unrealized losses on its investment securities are temporary and no further impairment loss has been realized in the Company's consolidated statements of income.

Loans
Loans

(4.) LOANS

The Company's loan portfolio consisted of the following as of the dates indicated (in thousands):

    Principal   Net Deferred        
    Amount   Loan Costs        
    Outstanding   (Fees)     Loans, Net  
June 30, 2014                
Commercial business $ 277,609 $ 76   $ 277,685  
Commercial mortgage   469,936   (881 )   469,055  
Residential mortgage   106,342   (136 )   106,206  
Home equity   363,243   6,335     369,578  
Consumer indirect   626,418   26,330     652,748  
Other consumer   21,205   187     21,392  
Total $ 1,864,753 $ 31,911     1,896,664  
Allowance for loan losses             (27,166 )
Total loans, net           $ 1,869,498  
 
December 31, 2013                
Commercial business $ 265,751 $ 15   $ 265,766  
Commercial mortgage   470,312   (1,028 )   469,284  
Residential mortgage   113,101   (56 )   113,045  
Home equity   320,658   5,428     326,086  
Consumer indirect   609,390   26,978     636,368  
Other consumer   22,893   177     23,070  
Total $ 1,802,105 $ 31,514     1,833,619  
Allowance for loan losses             (26,736 )
Total loans, net           $ 1,806,883  

 

Loans held for sale (not included above) were comprised entirely of residential real estate mortgages and totaled $201 thousand and $3.4 million as of June 30, 2014 and December 31, 2013, respectively.

Past Due Loans Aging

The Company's recorded investment, by loan class, in current and nonaccrual loans, as well as an analysis of accruing delinquent loans is set forth as of the dates indicated (in thousands):

          Greater                 
    30-59 Days   60-89 Days Than 90    Total Past           Total
    Past Due   Past Due Days    Due   Nonaccrual   Current   Loans
June 30, 2014                            
Commercial business $ 2,005 $ - $ - $  2,005 $ 3,589 $ 272,015 $ 277,609
Commercial mortgage   -   -   -   -   2,734   467,202   469,936
Residential mortgage   408   -   -   408   758   105,176   106,342
Home equity   235   32   -   267   371   362,605   363,243
Consumer indirect   1,590   324   -   1,914   1,427   623,077   626,418
Other consumer   139   20   6   165   6   21,034   21,205
Total loans, gross $ 4,377 $ 376 $ 6 $ 4,759 $ 8,885 $ 1,851,109 $ 1,864,753
 
December 31, 2013                            
Commercial business $ 558 $ 199 $ - $  757 $ 3,474 $ 261,520 $ 265,751
Commercial mortgage   800   -   -   800   9,663   459,849   470,312
Residential mortgage   542   -   -   542   1,078   111,481   113,101
Home equity   750   143   -   893   925   318,840   320,658
Consumer indirect   2,129   476   -   2,605   1,471   605,314   609,390
Other consumer   126   72   6   204   5   22,684   22,893
Total loans, gross $ 4,905 $ 890 $ 6 $ 5,801 $ 16,616 $ 1,779,688 $ 1,802,105

 

There were no loans past due greater than 90 days and still accruing interest as of June 30, 2014 and December 31, 2013. There were $6 thousand in consumer overdrafts which were past due greater than 90 days as of June 30, 2014 and December 31, 2013. Consumer overdrafts are overdrawn deposit accounts which have been reclassified as loans but by their terms do not accrue interest.

Troubled Debt Restructurings

A modification of a loan constitutes a troubled debt restructuring ("TDR") when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company offers various types of concessions when modifying loans, however, forgiveness of principal is seldom granted. Commercial loans modified in a TDR may involve temporary interest-only payments, term extensions, reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, requesting additional collateral, releasing collateral for consideration, or substituting or adding a new borrower or guarantor.

The following table presents information related to loans modified in a TDR during the periods indicated (dollars in thousands).

  Quarter-to-Date Year-to-Date
      Pre- Post-   Pre- Post-
      Modification   Modification      Modification   Modification 
      Outstanding   Outstanding     Outstanding   Outstanding
  Number of   Recorded   Recorded Number of   Recorded   Recorded
  Contracts   Investment   Investment Contracts   Investment   Investment
June 30, 2014                    
Commercial business 1 $ 1,381 $ 1,381 1 $ 1,381 $ 1,381
Commercial mortgage -   -   - -   -   -
Total 1 $ 1,381 $ 1,381 1 $ 1,381 $ 1,381
 
June 30, 2013                    
Commercial business 1 $ 1,273 $ 1,273 3 $ 1,462 $ 1,453
Commercial mortgage -   -   - -   -   -
Total 1 $ 1,273 $ 1,273 3 $ 1,462 $ 1,453

 

 
All of the loans identified as TDRs by the Company during the six months ended June 30, 2014 and 2013 were previously on nonaccrual status and reported as impaired loans prior to restructuring. The modifications primarily related to extending the amortization periods of the loans. Nonaccrual loans that are restructured remain on nonaccrual status, but may move to accrual status after they have performed according to the restructured terms for a period of time. The TDR classification did not have a material impact on the Company's determination of the allowance for loan losses because the modified loans were impaired and evaluated for a specific reserve both before and after restructuring.

There were no loans modified as a TDR within the previous 12 months that defaulted during the six months ended June 30, 2014 or 2013. For purposes of this disclosure, a loan modified as a TDR is considered to have defaulted when the borrower becomes 90 days past due.

Impaired Loans

Management has determined that specific commercial loans on nonaccrual status and all loans that have had their terms restructured in a troubled debt restructuring are impaired loans. The following table presents the recorded investment, unpaid principal balance and related allowance of impaired loans as of the dates indicated and average recorded investment and interest income recognized on impaired loans for the three month periods ended as of the dates indicated (in thousands):

        Unpaid       Average   Interest
    Recorded   Principal   Related   Recorded   Income
    Investment(1)   Balance(1)   Allowance   Investment   Recognized
June 30, 2014                    
With no related allowance recorded:                    
Commercial business $ 1,618 $ 2,146 $ - $ 1,823 $ -
Commercial mortgage   1,142   1,173   -   1,093   -
    2,760   3,319   -   2,916   -
With an allowance recorded:                    
Commercial business   1,971   1,982   1,056   1,837   -
Commercial mortgage   1,592   1,592   432   6,733   -
    3,563   3,574   1,488   8,570   -
  $ 6,323 $ 6,893 $ 1,488 $ 11,486 $ -
 
December 31, 2013                    
With no related allowance recorded:                    
Commercial business $ 1,777 $ 2,273 $ - $ 659 $ -
Commercial mortgage   875   906   -   760   -
    2,652   3,179   -   1,419   -
With an allowance recorded:                    
Commercial business   1,697   1,717   201   3,196   -
Commercial mortgage   8,788   9,188   1,057   3,758   -
    10,485   10,905   1,258   6,954   -
 
  $ 13,137 $ 14,084 $ 1,258 $ 8,373 $ -

 

(1) Difference between recorded investment and unpaid principal balance represents partial charge-offs.

 
Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors such as the fair value of collateral. The Company analyzes commercial business and commercial mortgage loans individually by classifying the loans as to credit risk. Risk ratings are updated any time the situation warrants. The Company uses the following definitions for risk ratings: Special Mention: Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company's credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans that do not meet the criteria above that are analyzed individually as part of the process described above are considered "Uncriticized" or pass-rated loans and are included in groups of homogeneous loans with similar risk and loss characteristics.

The following table sets forth the Company's commercial loan portfolio, categorized by internally assigned asset classification, as of the dates indicated (in thousands):

    Commercial   Commercial 
    Business   Mortgage
June 30, 2014        
Uncriticized $ 260,164 $ 453,747
Special mention   7,708   6,136
Substandard   9,737   10,053
Doubtful   -   -
Total $ 277,609 $ 469,936
 
December 31, 2013        
Uncriticized $ 250,553 $ 449,447
Special mention   6,311   6,895
Substandard   8,887   13,970
Doubtful   -   -
Total $ 265,751 $ 470,312

 

The Company utilizes payment status as a means of identifying and reporting problem and potential problem retail loans. The Company considers nonaccrual loans and loans past due greater than 90 days and still accruing interest to be non-performing. The following table sets forth the Company's retail loan portfolio, categorized by payment status, as of the dates indicated (in thousands):

    Residential   Home   Consumer   Other
    Mortgage   Equity   Indirect   Consumer
June 30, 2014                
Performing $ 105,584 $ 362,872 $ 624,991 $ 21,193
Non-performing   758   371   1,427   12
Total $ 106,342 $ 363,243 $ 626,418 $ 21,205
 
December 31, 2013                
Performing $ 112,023 $ 319,733 $ 607,919 $ 22,882
Non-performing   1,078   925   1,471   11
Total $ 113,101 $ 320,658 $ 609,390 $ 22,893

 

Allowance for Loan Losses

Loans and the related allowance for loan losses are presented below as of the dates indicated (in thousands):

    Commercial   Commercial   Residential    Home   Consumer   Other    
    Business   Mortgage   Mortgage   Equity   Indirect   Consumer   Total
June 30, 2014                            
Loans:                            
Ending balance $ 277,609 $ 469,936 $ 106,342 $ 363,243 $ 626,418 $ 21,205 $ 1,864,753
Evaluated for impairment:                            
Individually $ 3,589 $ 2,734 $ - $ - $ - $ - $ 6,323
Collectively $ 274,020 $ 467,202 $ 106,342 $ 363,243 $ 626,418 $ 21,205 $ 1,858,430
 
Allowance for loan losses:                            
Ending balance $ 5,402 $ 7,633 $ 618 $ 1,607 $ 11,446 $ 460 $ 27,166
Evaluated for impairment:                            
Individually $ 1,056 $ 432 $ - $ - $ - $ - $ 1,488
Collectively $ 4,346 $ 7,201 $ 618 $ 1,607 $ 11,446 $ 460 $ 25,678
 
June 30, 2013                            
Loans:                            
Ending balance $ 257,784 $ 438,513 $ 117,939 $ 301,429 $ 572,350 $ 24,107 $ 1,712,122
Evaluated for impairment:                            
Individually $ 5,043 $ 3,073 $ - $ - $ - $ - $ 8,116
Collectively $ 252,741 $ 435,440 $ 117,939 $ 301,429 $ 572,350 $ 24,107 $ 1,704,006
 
Allowance for loan losses:                            
Ending balance $ 4,755 $ 7,125 $ 701 $ 1,424 $ 11,095 $ 490 $ 25,590
Evaluated for impairment:                            
Individually $ 956 $ 554 $ - $ - $ - $ - $ 1,510
Collectively $ 3,799 $ 6,571 $ 701 $ 1,424 $ 11,095 $ 490 $ 24,080

 

The following table sets forth the changes in the allowance for loan losses for the three and six month periods ended June 30, 2014 (in thousands):

  Commercial    Commercial     Residential    Home   Consumer   Other    
    Business   Mortgage     Mortgage   Equity   Indirect   Consumer   Total
 
Three months ended June 30, 2014                          
Beginning balance $ 4,689 $ 7,980   $ 672 $ 1,371 $ 11,984 $ 456 $ 27,152
Charge-offs   3   165     69   156   2,331   224   2,948
Recoveries   68   6     8   29   995   98   1,204
Provision (credit)   648   (188 )   7   363   798   130   1,758
Ending balance $ 5,402 $ 7,633   $ 618 $ 1,607 $ 11,446 $ 460 $ 27,166
 
 
Six months ended June 30, 2014                          
Beginning balance $ 4,273 $ 7,743   $ 676 $ 1,367 $ 12,230 $ 447 $ 26,736
Charge-offs   71   165     147   262   4,786   493   5,924
Recoveries   97   13     29   40   2,100   211   2,490
Provision   1,103   42     60   462   1,902   295   3,864
Ending balance $ 5,402 $ 7,633   $ 618 $ 1,607 $ 11,446 $ 460 $ 27,166

 

The following table sets forth the changes in the allowance for loan losses for the three and six month periods ended June 30, 2013 (in thousands):

  Commercial     Commercial    Residential    Home   Consumer   Other    
    Business     Mortgage   Mortgage   Equity   Indirect   Consumer   Total
 
Three months ended June 30, 2013                          
Beginning balance $ 5,167   $ 6,971 $ 668 $ 1,283 $ 11,312 $ 426 $ 25,827
Charge-offs   292     106   85   53   1,929   229   2,694
Recoveries   205     143   13   73   759   71   1,264
Provision (credit)   (325 )   117   105   121   953   222   1,193
Ending balance $ 4,755   $ 7,125 $ 701 $ 1,424 $ 11,095 $ 490 $ 25,590
 
 
Six months ended June 30, 2013                          
Beginning balance $ 4,884   $ 6,581 $ 740 $ 1,282 $ 10,715 $ 512 $ 24,714
Charge-offs   531     109   247   322   3,647   481   5,337
Recoveries   242     157   30   110   1,564   208   2,311
Provision   160     496   178   354   2,463   251   3,902
Ending balance $ 4,755   $ 7,125 $ 701 $ 1,424 $ 11,095 $ 490 $ 25,590

 

Risk Characteristics

Commercial business loans primarily consist of loans to small to midsize businesses in our market area in a diverse range of industries. These loans are of higher risk and typically are made on the basis of the borrower's ability to make repayment from the cash flow of the borrower's business. Further, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value. The credit risk related to commercial loans is largely influenced by general economic conditions and the resulting impact on a borrower's operations or on the value of underlying collateral, if any.

Commercial mortgage loans generally have larger balances and involve a greater degree of risk than residential mortgage loans, inferring higher potential losses on an individual customer basis. Loan repayment is often dependent on the successful operation and management of the properties, as well as on the collateral securing the loan. Economic events or conditions in the real estate market could have an adverse impact on the cash flows generated by properties securing the Company's commercial real estate loans and on the value of such properties.

Residential mortgage loans and home equities (comprised of home equity loans and home equity lines) are generally made on the basis of the borrower's ability to make repayment from his or her employment and other income, but are secured by real property whose value tends to be more easily ascertainable. Credit risk for these types of loans is generally influenced by general economic conditions, the characteristics of individual borrowers, and the nature of the loan collateral.

Consumer indirect and other consumer loans may entail greater credit risk than residential mortgage loans and home equities, particularly in the case of other consumer loans which are unsecured or, in the case of indirect consumer loans, secured by depreciable assets, such as automobiles or boats. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance. In addition, consumer loan collections are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances such as job loss, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans.

Goodwill And Other Intangible Assets
Goodwill And Other Intangible Assets

(5.) GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amount of goodwill totaled $48.5 million as of June 30, 2014 and December 31, 2013. The goodwill relates to the Company's primary subsidiary and reporting unit, Five Star Bank. The Company performs a goodwill impairment test on an annual basis or more frequently if events and circumstances warrant.

The Company's other intangible assets, consisting entirely of a core deposit intangible asset, were as follows (in thousands):

    June 30,     December 31,  
    2014     2013  
Gross carrying amount $ 2,042   $ 2,042  
Accumulated amortization   (752 )   (576 )
Net carrying value $ 1,290   $ 1,466  

 

Amortization expense for the core deposit intangible was $87 thousand and $176 thousand for the three and six months ended June 30, 2014 and $98 thousand and $199 thousand for the three and six months ended June 30, 2013, respectively. As of June 30, 2014, the estimated core deposit intangible amortization expense for the remainder of 2014 and each of the next five years is as follows (in thousands):

2014 (remainder of year) $ 165
2015   296
2016   251
2017   205
2018   160
2019   115

 

Shareholders' Equity
Shareholders' Equity

(6.) SHAREHOLDERS' EQUITY

Common Stock

The changes in shares of common stock were as follows for the six months ended June 30, 2014 and 2013:

  Outstanding   Treasury   Issued
June 30, 2014          
Shares outstanding at December 31, 2013 13,829,355   332,242   14,161,597
Restricted stock awards issued 43,242   (43,242 ) -
Restricted stock awards forfeited (8,144 ) 8,144   -
Stock options exercised 7,125   (7,125 ) -
Treasury stock purchases (9,102 ) 9,102   -
Shares outstanding at June 30, 2014 13,862,476   299,121   14,161,597
 
June 30, 2013          
Shares outstanding at December 31, 2012 13,787,709   373,888   14,161,597
Restricted stock awards issued 42,035   (42,035 ) -
Restricted stock awards forfeited (18,977 ) 18,977   -
Stock options exercised 3,300   (3,300 ) -
Treasury stock purchases (11,349 ) 11,349   -
Directors' retainer 5,672   (5,672 ) -
Shares outstanding at June 30, 2013 13,808,390   353,207   14,161,597

 

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)

(7.) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the components of other comprehensive income (loss) for the six month periods ended June 30, 2014 and 2013 (in thousands):

  Pre-tax           Net-of-tax  
    Amount     Tax Effect     Amount  
June 30, 2014                  
Securities available for sale and transferred securities:                  
Change in unrealized gain/loss during the period $ 12,168   $ 4,821   $ 7,347  
Reclassification adjustment for net gains included in net income (1)   (1,521 )   (602 )   (919 )
Total securities available for sale and transferred securities   10,647     4,219     6,428  
Amortization of pension and post-retirement items:                  
Prior service credit   (24 )   (9 )   (15 )
Net actuarial losses   88     34     54  
Total pension and post-retirement obligations   64     25     39  
Other comprehensive income $ 10,711   $ 4,244   $ 6,467  
 
June 30, 2013                  
Securities available for sale:                  
Change in unrealized gain/loss during the period $ (26,571 ) $ (10,525 ) $ (16,046 )
Reclassification adjustment for net gains included in net income   (1,224 )   (485 )   (739 )
Total securities available for sale   (27,795 )   (11,010 )   (16,785 )
Amortization of pension and post-retirement items:                  
Prior service credit   (24 )   (9 )   (15 )
Net actuarial losses   682     269     413  
Total pension and post-retirement obligations   658     260     398  
Other comprehensive loss $ (27,137 ) $ (10,750 ) $ (16,387 )

 

(1) Includes amounts related to the amortization/accretion of unrealized net gains and losses related to the Company's reclassification of available for sale investment securities to the held to maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield.

Activity in accumulated other comprehensive income (loss), net of tax, for the six month periods ended June 30, 2014 and 2013 was as follows (in thousands):

    Securities              
    Available for     Pension and     Accumulated   
    Sale and   Post-      Other  
    Transferred     retirement     Comprehensive   
    Securities     Obligations     Income (Loss)   
June 30, 2014                  
Balance at beginning of year $ (5,337 ) $ (4,850 ) $ (10,187 )
Other comprehensive income before reclassifications   7,347     -     7,347  
Amounts reclassified from accumulated other comprehensive income   (919 )   39     (880 )
Net current period other comprehensive income   6,428     39     6,467  
Balance at end of period $ 1,091   $ (4,811 )  $ (3,720 )
 
June 30, 2013                  
Balance at beginning of year $ 16,060   $ (12,807 )  $ 3,253  
Other comprehensive (loss) income before reclassifications   (16,046 )   -     (16,046 )
Amounts reclassified from accumulated other comprehensive income   (739 )   398     (341 )
Net current period other comprehensive (loss) income   (16,785 )   398     (16,387 )
Balance at end of period $ (725 ) $ (12,409 ) $ (13,134 )

 

 
The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the six month periods ended June 30, 2014 and 2013 (in thousands):

    Amount Reclassified from    
Details About Accumulated Other   Accumulated Other   Affected Line Item in the
Comprehensive Income Components   Comprehensive Income   Consolidated Statement of Income
    Six months ended    
    June 30,    
    2014     2013    
Realized gain on sale of investment securities $ 1,262   $ 1,224   Net gain on disposal of investment securities
Amortization of unrealized holding gains (losses)              
on investment securities transferred from              
available for sale to held to maturity   259     -   Interest income
    1,521     1,224   Total before tax
    (602 )   (485 ) Income tax expense
    919     739   Net of tax
Amortization of pension and post-retirement items:              
Prior service credit (1)   24     24   Salaries and employee benefits
Net actuarial losses (1)   (88 )   (682 ) Salaries and employee benefits
    (64 )   (658 ) Total before tax
    25     260   Income tax benefit
    (39 )   (398 ) Net of tax
 
Total reclassified for the period $ 880   $ 341    

 

(1) These items are included in the computation of net periodic pension expense. See Note 9 – Employee Benefit Plans for additional information.

Share-Based Compensation Plans
Share-Based Compensation Plans

(8.) SHARE-BASED COMPENSATION PLANS

The Company maintains certain stock-based compensation plans that were approved by the Company's shareholders and are administered by the Company's Board of Directors, or the Management Development and Compensation Committee of the Board. The share-based compensation plans were established to allow for the grant of compensation awards to attract, motivate and retain employees, executive officers and non-employee directors who contribute to the success and profitability of the Company and to give such persons a proprietary interest in the Company, thereby enhancing their personal interest in the Company's success.

The Company awarded grants of 22,642 shares of restricted common stock to certain members of management during the six months ended June 30, 2014. Fifty percent of the shares subject to each grant will be earned based upon achievement of an EPS performance requirement for the Company's fiscal year ended December 31, 2014. The remaining fifty percent of the shares will be earned based on the Company's achievement of a relative total shareholder return ("TSR") performance requirement, on a percentile basis, compared to a defined group of peer companies over a three-year performance period ended December 31, 2016. The shares earned based on the achievement of the EPS and TSR performance requirements, if any, will vest based on the recipient's continuous service to the Company on December 31, 2016.

The grant-date fair value of the TSR portion of the award granted during the six months ended June 30, 2014 was determined using the Monte Carlo simulation model on the date of grant, assuming the following (i) expected term of 2.87 years, (ii) risk free interest rate of 0.62%, (iii) expected dividend yield of 3.59% and (iv) expected stock price volatility over the expected term of the TSR award of 39.4%. The grant-date fair value of all other restricted stock awards is equal to the closing market price of our common stock on the date of grant.

In addition, the Company granted 11,600 shares of restricted common stock to management during the six months ended June 30, 2014. The shares will vest after completion of a three-year service requirement. The weighted average market price of the restricted stock awards on the date of grant was $21.26.

During the six months ended June 30, 2014, the Company granted 9,000 restricted shares of common stock to directors, of which 4,500 shares vested immediately and 4,500 shares will vest after completion of a one-year service requirement. The market price of the restricted stock on the date of grant was $22.82.

The restricted stock awards granted to management and directors in 2014 do not have rights to dividends or dividend equivalents.

The following is a summary of restricted stock award activity for the six month period ended June 30, 2014:

        Weighted
        Average
        Market
  Number of     Price at
  Shares     Grant Date
Outstanding at beginning of year 65,040   $ 16.92
Granted 43,242     18.76
Vested (33,728 )   18.17
Forfeited (8,144 )   19.77
Outstanding at end of period 66,410   $ 17.13

 

As of June 30, 2014, there was $730 thousand of unrecognized compensation expense related to unvested restricted stock awards that is expected to be recognized over a weighted average period of two years.

The Company uses the Black-Scholes valuation method to estimate the fair value of its stock option awards. There were no stock options awarded during 2014 or 2013. The following is a summary of stock option activity for the six months ended June 30, 2014 (dollars in thousands, except per share amounts):
          Weighted    
        Weighted Average    
        Average Remaining   Aggregate
  Number of     Exercise Contractual   Intrinsic
  Options     Price Term   Value
Outstanding at beginning of year 192,934   $ 19.83      
Exercised (7,125 )   18.45      
Expired (23,436 )   23.64      
Outstanding and exercisable at end of period 162,373   $ 19.35 2.4 $ 661

 

The aggregate intrinsic value (the amount by which the market price of the stock on the date of exercise exceeded the market price of the stock on the date of grant) of option exercises for the six months ended June 30, 2014 and 2013 was $32 thousand and $7 thousand, respectively. The total cash received as a result of option exercises under stock compensation plans for the six months ended June 30, 2014 and 2013 was $132 thousand and $59 thousand, respectively.

The Company amortizes the expense related to restricted stock awards over the vesting period. Share-based compensation expense is recorded as a component of salaries and employee benefits in the consolidated statements of income for awards granted to management and as a component of other noninterest expense for awards granted to directors. The share-based compensation expense included in the consolidated statements of income is as follows (in thousands):

  Three months ended Six months ended
  June 30, June 30,
  2014  2013      2014   2013 
Salaries and employee benefits $ 75 $ (6 ) $ 156 $ 79
Other noninterest expense   127   109     149   126
Total share-based compensation expense $ 202 $ 103   $ 305 $ 205

 

Employee Benefit Plans
Employee Benefit Plans

(9.) EMPLOYEE BENEFIT PLANS

The components of the Company's net periodic benefit expense for its pension and post-retirement obligations were as follows (in thousands):

  Three months ended Six months ended
  June 30, June 30,
  2014    2013      2014     2013  
Service cost $ 480   $ 516   $ 959   $ 1,032  
Interest cost on projected benefit obligation   573     505     1,147     1,010  
Expected return on plan assets (1,030 )   (921 )   (2,059 )   (1,842 )
Amortization of prior service credit   (12 )   (12 )   (24 )   (24 )
Amortization of net actuarial losses   44     341     88     682  
Net periodic pension expense $ 55   $ 429   $ 111   $ 858  

 

The net periodic benefit expense is recorded as a component of salaries and employee benefits in the consolidated statements of income. The Company's funding policy is to contribute, at a minimum, an actuarially determined amount that will satisfy the minimum funding requirements determined under the appropriate sections of the Internal Revenue Code. The Company has no minimum required contribution for the 2014 fiscal year.

Commitments And Contingencies
Commitments And Contingencies

(10.) COMMITMENTS AND CONTINGENCIES

The Company has financial instruments with off-balance sheet risk established in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk extending beyond amounts recognized in the Company's financial statements.

The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is essentially the same as that involved with extending loans to customers. The Company uses the same credit underwriting policies in making commitments and conditional obligations as for on-balance sheet instruments.

Off-balance sheet commitments consist of the following (in thousands):

    June 30,   December 31,
    2014   2013
Commitments to extend credit $ 444,617 $ 431,236
Standby letters of credit   11,020   8,618

 

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Commitments may expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if any, is based on management's credit evaluation of the borrower. Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support private borrowing arrangements. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers.

The Company also extends rate lock agreements to borrowers related to the origination of residential mortgage loans. To mitigate the interest rate risk inherent in these rate lock agreements, the Company may enter into forward commitments to sell individual residential mortgages. Rate lock agreements and forward commitments are considered derivatives and are recorded at fair value. Forward sales commitments totaled $393 thousand at June 30, 2014. There were no forward sales commitments outstanding as of December 31, 2013. In addition, the net change in the fair values of these derivatives was recognized as other noninterest income or other noninterest expense in the consolidated statements of income.

Fair Value Measurements
Fair Value Measurements

(11.) FAIR VALUE MEASUREMENTS

Determination of Fair Value – Assets Measured at Fair Value on a Recurring and Nonrecurring Basis Valuation Hierarchy

The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. ASC Topic 820, "Fair Value Measurements and Disclosures," establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. There have been no changes in the valuation techniques used during the current period. The fair value hierarchy is as follows:

  • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
  • Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.
  • Level 3 - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

Transfers between levels of the fair value hierarchy are recorded as of the end of the reporting period.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the company's creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Securities available for sale: Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things.

Loans held for sale: The fair value of loans held for sale is determined using quoted secondary market prices and investor commitments. Loans held for sale are classified as Level 2 in the fair value hierarchy.

Collateral dependent impaired loans: Fair value of impaired loans with specific allocations of the allowance for loan losses is measured based on the value of the collateral securing these loans and is classified as Level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable and collateral value is determined based on appraisals performed by qualified licensed appraisers hired by the Company. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised and reported values may be discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the client and the client's business. Such discounts are typically significant and result in a Level 3 classification of the inputs for determining fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above.

Loan servicing rights: Loan servicing rights do not trade in an active market with readily observable market data. As a result, the Company estimates the fair value of loan servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The assumptions used in the discounted cash flow model are those that we believe market participants would use in estimating future net servicing income, including estimates of loan prepayment rates, servicing costs, ancillary income, impound account balances, and discount rates. The significant unobservable inputs used in the fair value measurement of the Company's loan servicing rights are the constant prepayment rates and weighted average discount rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the constant prepayment rate and the discount rate are not directly interrelated, they will generally move in opposite directions. Loan servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation.

Other real estate owned (Foreclosed assets): Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. The appraisals are sometimes further discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the client and client's business. Such discounts are typically significant and result in a Level 3 classification of the inputs for determining fair value. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized.

Commitments to extend credit and letters of credit: Commitments to extend credit and fund letters of credit are principally at current interest rates, and, therefore, the carrying amount approximates fair value. The fair value of commitments is not material.

Assets Measured at Fair Value

The following tables present for each of the fair-value hierarchy levels the Company's assets that are measured at fair value on a recurring and non-recurring basis as of the dates indicated (in thousands).

    Quoted Prices in              
    Active Markets   Significant          
    for Identical   Other   Significant     
    Assets or   Observable   Unobservable     
    Liabilities   Inputs   Inputs     
    (Level 1)   (Level 2)   (Level 3)    Total
June 30, 2014                  
Measured on a recurring basis:                  
Securities available for sale:                  
U.S. Government agencies and government sponsored enterprises $ - $ 135,117   $ - $ 135,117
Mortgage-backed securities   -   466,555     -   466,555
Asset-backed securities   -   231     -   231
  $ - $ 601,903   $ - $ 601,903
Measured on a nonrecurring basis:                  
Loans:                  
Loans held for sale $ - $ 201   $ - $ 201
Collateral dependent impaired loans   -   -   2,075   2,075
Other assets:                  
Loan servicing rights   -   -   1,446   1,446
Other real estate owned   -   -   554   554
  $ - $ 201 $ 4,075 $ 4,276
 
December 31, 2013                  
Measured on a recurring basis:                  
Securities available for sale:                  
U.S. Government agencies and government sponsored enterprises $ - $ 134,452   $ - $ 134,452
Mortgage-backed securities   -   474,549     -   474,549
Asset-backed securities   -   399     -   399
  $ - $ 609,400   $ - $ 609,400
Measured on a nonrecurring basis:                  
Loans:                  
Loans held for sale $ - $ 3,381   $ - $ 3,381
Collateral dependent impaired loans   -   -   9,227   9,227
Other assets:                  
Loan servicing rights   -   -   1,565   1,565
Other real estate owned   -   -   333   333
  $ - $ 3,381 $ 11,125 $ 14,506

 

There were no transfers between Levels 1 and 2 during the six months ended June 30, 2014 and 2013. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the six month periods ended June 30, 2014 and 2013.

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands).
    Fair     Unobservable Input
Asset   Value Valuation Technique Unobservable Input Value or Range
Collateral dependent impaired loans $ 2,075 Appraisal of collateral (1) Appraisal adjustments (2) 25% - 100% discount
      Discounted cash flow Discount rate 4.5% (3)
        Risk premium rate 11.0% (3)
 
Loan servicing rights   1,446 Discounted cash flow Discount rate 5.2% (3)
        Constant prepayment rate 12.4% (3)
 
Other real estate owned   554 Appraisal of collateral (1) Appraisal adjustments (2) 27% - 43% discount

 

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

(3) Weighted averages.

Changes in Level 3 Fair Value Measurements

There were no assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of or during the six months ended June 30, 2014.

Disclosures about Fair Value of Financial Instruments

The assumptions used below are expected to approximate those that market participants would use in valuing these financial instruments.

Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of timing, amount of expected future cash flows and the credit standing of the issuer. Such estimates do not consider the tax impact of the realization of unrealized gains or losses. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial instrument. Care should be exercised in deriving conclusions about our business, its value or financial position based on the fair value information of financial instruments presented below.

The estimated fair value approximates carrying value for cash and cash equivalents, Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") stock, accrued interest receivable, non-maturity deposits, short-term borrowings and accrued interest payable. Fair value estimates for other financial instruments not included elsewhere in this disclosure are discussed below.

Securities held to maturity: The fair value of the Company's investment securities held to maturity is primarily measured using information from a third-party pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things.

Loans: The fair value of the Company's loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made for the same remaining maturities. Loans were first segregated by type such as commercial, residential mortgage, and consumer, and were then further segmented into fixed and variable rate and loan quality categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments.

Time deposits: The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company's time deposit liabilities do not take into consideration the value of the Company's long-term relationships with depositors, which may have significant value.

The following presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value measurement hierarchy of the Company's financial instruments as of the dates indicated.

 
  Level in   June 30, 2014   December 31, 2013
  Fair Value       Estimated       Estimated
  Measurement   Carrying   Fair   Carrying   Fair
  Hierarchy   Amount   Value   Amount   Value
Financial assets:                  
Cash and cash equivalents Level 1 $ 64,832 $ 64,832 $ 59,692 $ 59,692
Securities available for sale Level 2   601,903   601,903   609,400   609,400
Securities held to maturity Level 2   262,057   266,640   249,785   250,657
Loans held for sale Level 2   201   201   3,381   3,381
Loans Level 2   1,867,423   1,881,386   1,797,656   1,802,407
Loans (1) Level 3   2,075   2,075   9,227   9,227
Accrued interest receivable Level 1   7,647   7,647   8,150   8,150
FHLB and FRB stock Level 2   15,855   15,855   19,663   19,663
 
Financial liabilities:                  
Non-maturity deposits Level 1   1,824,906   1,824,906   1,724,133   1,724,133
Time deposits Level 2   625,172   626,578   595,923   596,928
Short-term borrowings Level 1   254,683   254,683   337,042   337,042
Accrued interest payable Level 1   3,658   3,658   3,407   3,407

 

(1) Comprised of collateral dependent impaired loans.

Basis Of Presentation And Summary Of Significant Accounting Policies (Policy)
Nature Of Operations 

Nature of Operations

Financial Institutions, Inc., is a financial holding company organized in 1931 under the laws of New York State ("New York" or "NYS"). Through its wholly-owned New York chartered banking subsidiary, Five Star Bank, Financial Institutions, Inc. offers a broad array of deposit, lending and other financial services to individuals, municipalities and businesses in Western and Central New York. The Company has also expanded its indirect lending network to include relationships with franchised automobile dealers in the Capital District of New York and Northern Pennsylvania. References to "the Company" mean the consolidated reporting entities and references to "the Bank" mean Five Star Bank.

Basis Of Presentation 

Basis of Presentation

The consolidated financial statements include the accounts of Financial Institutions, Inc. and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in conformity with GAAP have been condensed or omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all adjustments of a normal and recurring nature necessary for a fair presentation of the consolidated statements of financial condition, income, comprehensive income, changes in shareholders' equity and cash flows for the periods indicated, and contain adequate disclosure to make the information presented not misleading. Prior years' consolidated financial statements are re-classified whenever necessary to conform to the current year's presentation. These consolidated financial statements should be read in conjunction with the Company's 2013 Annual Report on Form 10-K. The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year.

Subsequent Events 

Subsequent Events

The Company has evaluated events and transactions for potential recognition or disclosure through the day the financial statements were issued. Other than completing the acquisition of Scott Danahy Naylon Co., Inc. ("SDN"), as described below, the Company did not have any material recognizable subsequent events.

On August 1, 2014, the Company completed its acquisition of SDN, a full service insurance agency located in Amherst, New York. SDN provides a broad range of insurance services to both personal and business clients. SDN will operate as a subsidiary of Financial Institutions, Inc. and an affiliate of Five Star Bank.

Use Of Estimates 

Use of Estimates

The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates relate to the determination of the allowance for loan losses, the carrying value of goodwill and deferred tax assets, the valuation and other than temporary impairment ("OTTI") considerations related to the securities portfolio, and assumptions used in the defined benefit pension plan accounting.

Recent Accounting Pronouncements 

Recent Accounting Pronouncements

In January 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2014-04,

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 is not expected to have a material impact on the Company's consolidated statements of income and condition.

Earnings Per Common Share ("EPS") (Tables)
Reconciliation Of Earnings And Shares Used In Calculating Basic And Diluted EPS 
    Three months ended     Six months ended  
    June 30,     June 30,  
    2014     2013     2014     2013  
Net income available to common shareholders $ 6,667   $ 6,483   $ 13,520   $ 12,264  
 
Weighted average common shares outstanding:                        
Total shares issued   14,162     14,162     14,162     14,162  
Unvested restricted stock awards   (67 )   (66 )   (65 )   (73 )
Treasury shares   (304 )   (357 )   (315 )   (361 )
Total basic weighted average common shares outstanding   13,791     13,739     13,782     13,728  
 
Incremental shares from assumed:                        
Exercise of stock options   28     5     25     6  
Vesting of restricted stock awards   19     23     24     33  
Total diluted weighted average common shares outstanding   13,838     13,767     13,831     13,767  
 
Basic earnings per common share $ 0.48   $ 0.47   $ 0.98   $ 0.89  
Diluted earnings per common share $ 0.48   $ 0.47   $ 0.98   $ 0.89  
Shares Excluded From Computation Of Diluted EPS 
Stock options - 225 7 188
Restricted stock awards 3 9 1 5
  3 234 8 193
Investment Securities (Tables)
Amortized Cost And Fair Value Of Investment Securities 
    Amortized   Unrealized   Unrealized   Fair
    Cost   Gains   Losses   Value
June 30, 2014                
Securities available for sale:                
U.S. Government agencies and government                
sponsored enterprises $ 134,448 $ 1,719 $ 1,050 $ 135,117
Mortgage-backed securities:                
Federal National Mortgage Association   172,449   1,993   2,217   172,225
Federal Home Loan Mortgage Corporation   32,922   894   10   33,806
Government National Mortgage Association   62,946   2,551   54   65,443
Collateralized mortgage obligations:                
Federal National Mortgage Association   63,224   431   1,427   62,228
Federal Home Loan Mortgage Corporation   96,922   215   3,289   93,848
Government National Mortgage Association   36,852   911   73   37,690
Privately issued   -   1,315   -   1,315
Total collateralized mortgage obligations   196,998   2,872   4,789   195,081
Total mortgage-backed securities   465,315   8,310   7,070   466,555
Asset-backed securities   -   231   -   231
Total available for sale securities $ 599,763 $ 10,260 $ 8,120 $ 601,903
Securities held to maturity:                
State and political subdivisions $ 262,057 $ 4,661 $ 78 $ 266,640

 

    Amortized   Unrealized   Unrealized   Fair
    Cost   Gains   Losses   Value
December 31, 2013                
Securities available for sale:                
U.S. Government agencies and government                
sponsored enterprises $ 135,840 $ 1,414 $ 2,802 $ 134,452
Mortgage-backed securities:                
Federal National Mortgage Association   173,507   1,511   4,810   170,208
Federal Home Loan Mortgage Corporation   36,737   562   205   37,094
Government National Mortgage Association   61,832   2,152   142   63,842
Collateralized mortgage obligations:                
Federal National Mortgage Association   63,838   261   3,195   60,904
Federal Home Loan Mortgage Corporation   102,660   169   5,856   96,973
Government National Mortgage Association   43,734   913   586   44,061
Privately issued   -   1,467   -   1,467
Total collateralized mortgage obligations   210,232   2,810   9,637   203,405
Total mortgage-backed securities   482,308   7,035   14,794   474,549
Asset-backed securities   18   381   -   399
Total available for sale securities $ 618,166 $ 8,830 $ 17,596 $ 609,400
Securities held to maturity:                
State and political subdivisions $ 249,785 $ 1,340 $ 468 $ 250,657
Scheduled Maturities Of Securities Available For Sale And Securities Held To Maturity 
    Amortized   Fair
    Cost   Value
Debt securities available for sale:        
Due in one year or less $ 25,204 $ 25,204
Due from one to five years   83,162   84,857
Due after five years through ten years   205,664   205,297
Due after ten years   285,733   286,545
  $ 599,763 $ 601,903
Debt securities held to maturity:        
Due in one year or less $ 23,466 $ 23,556
Due from one to five years   132,765   134,973
Due after five years through ten years   105,784   108,057
Due after ten years   42   54
  $ 262,057 $ 266,640
Sales And Calls Of Securities Available For Sale 
    Three months ended   Six months ended
    June 30,   June 30,
    2014 2013    2014   2013
Proceeds from sales and calls $ 41,958 $ 375 $ 61,428 $ 1,327
Gross realized gains   949   332   1,262   1,224
Investments' Gross Unrealized Losses And Fair Value 
    Less than 12 months   12 months or longer   Total
    Fair   Unrealized   Fair Unrealized    Fair Unrealized 
    Value   Losses   Value   Losses   Value   Losses
June 30, 2014                        
Securities available for sale:                        
U.S. Government agencies and government                        
sponsored enterprises $ 30,830 $ 2 $ 41,159 $ 1,048 $ 71,989 $ 1,050
Mortgage-backed securities:                        
Federal National Mortgage Association   34,572   107   64,582   2,110   99,154   2,217
Federal Home Loan Mortgage Corporation   -   -   3,750   10   3,750   10
Government National Mortgage Association   5,440   54   -   -   5,440   54
Collateralized mortgage obligations:                        
Federal National Mortgage Association   9,010   22   37,314   1,405   46,324   1,427
Federal Home Loan Mortgage Corporation   2,619   22   83,809   3,267   86,428   3,289
Government National Mortgage Association   -   -   5,683   73   5,683   73
Total collateralized mortgage obligations   11,629   44   126,806   4,745   138,435   4,789
Total mortgage-backed securities   51,641   205   195,138   6,865   246,779   7,070
Total available for sale securities   82,471   207   236,297   7,913   318,768   8,120
Securities held to maturity:                        
State and political subdivisions   13,285   78   -   -   13,285   78
Total $ 95,756 $ 285 $ 236,297 $ 7,913 $ 332,053 $ 8,198
 
December 31, 2013                        
Securities available for sale:                        
U.S. Government agencies and government                        
sponsored enterprises $ 86,177 $ 2,788 $ 2,717 $ 14 $ 88,894 $ 2,802
Mortgage-backed securities:                        
Federal National Mortgage Association   103,778   3,491   20,689   1,319   124,467   4,810
Federal Home Loan Mortgage Corporation   14,166   205   -   -   14,166   205
Government National Mortgage Association   14,226   142   -   -   14,226   142
Collateralized mortgage obligations:                        
Federal National Mortgage Association   35,632   2,586   11,760   609   47,392   3,195
Federal Home Loan Mortgage Corporation   72,655   4,980   15,762   876   88,417   5,856
Government National Mortgage Association   8,396   586   -   -   8,396   586
Total collateralized mortgage obligations   116,683   8,152   27,522   1,485   144,205   9,637
Total mortgage-backed securities   248,853   11,990   48,211   2,804   297,064   14,794
Total available for sale securities   335,030   14,778   50,928   2,818   385,958   17,596
Securities held to maturity:                        
State and political subdivisions   72,269   468   -   -   72,269   468
Total $ 407,299 $ 15,246 $ 50,928 $ 2,818 $ 458,227 $ 18,064
Loans (Tables)
Loan Portfolio 
    Principal   Net Deferred        
    Amount   Loan Costs        
    Outstanding   (Fees)     Loans, Net  
June 30, 2014                
Commercial business $ 277,609 $ 76   $ 277,685  
Commercial mortgage   469,936   (881 )   469,055  
Residential mortgage   106,342   (136 )   106,206  
Home equity   363,243   6,335     369,578  
Consumer indirect   626,418   26,330     652,748  
Other consumer   21,205   187     21,392  
Total $ 1,864,753 $ 31,911     1,896,664  
Allowance for loan losses             (27,166 )
Total loans, net           $ 1,869,498  
 
December 31, 2013                
Commercial business $ 265,751 $ 15   $ 265,766  
Commercial mortgage   470,312   (1,028 )   469,284  
Residential mortgage   113,101   (56 )   113,045  
Home equity   320,658   5,428     326,086  
Consumer indirect   609,390   26,978     636,368  
Other consumer   22,893   177     23,070  
Total $ 1,802,105 $ 31,514     1,833,619  
Allowance for loan losses             (26,736 )
Total loans, net           $ 1,806,883  

 

Recorded Investment By Loan Class In Current And Nonaccrual Loans 
          Greater                 
    30-59 Days   60-89 Days Than 90    Total Past           Total
    Past Due   Past Due Days    Due   Nonaccrual   Current   Loans
June 30, 2014                            
Commercial business $ 2,005 $ - $ - $  2,005 $ 3,589 $ 272,015 $ 277,609
Commercial mortgage   -   -   -   -   2,734   467,202   469,936
Residential mortgage   408   -   -   408   758   105,176   106,342
Home equity   235   32   -   267   371   362,605   363,243
Consumer indirect   1,590   324   -   1,914   1,427   623,077   626,418
Other consumer   139   20   6   165   6   21,034   21,205
Total loans, gross $ 4,377 $ 376 $ 6 $ 4,759 $ 8,885 $ 1,851,109 $ 1,864,753
 
December 31, 2013                            
Commercial business $ 558 $ 199 $ - $  757 $ 3,474 $ 261,520 $ 265,751
Commercial mortgage   800   -   -   800   9,663   459,849   470,312
Residential mortgage   542   -   -   542   1,078   111,481   113,101
Home equity   750   143   -   893   925   318,840   320,658
Consumer indirect   2,129   476   -   2,605   1,471   605,314   609,390
Other consumer   126   72   6   204   5   22,684   22,893
Total loans, gross $ 4,905 $ 890 $ 6 $ 5,801 $ 16,616 $ 1,779,688 $ 1,802,105

 

Information Related To Loans Modified In A TDR 
  Quarter-to-Date Year-to-Date
      Pre- Post-   Pre- Post-
      Modification   Modification      Modification   Modification 
      Outstanding   Outstanding     Outstanding   Outstanding
  Number of   Recorded   Recorded Number of   Recorded   Recorded
  Contracts   Investment   Investment Contracts   Investment   Investment
June 30, 2014                    
Commercial business 1 $ 1,381 $ 1,381 1 $ 1,381 $ 1,381
Commercial mortgage -   -   - -   -   -
Total 1 $ 1,381 $ 1,381 1 $ 1,381 $ 1,381
 
June 30, 2013                    
Commercial business 1 $ 1,273 $ 1,273 3 $ 1,462 $ 1,453
Commercial mortgage -   -   - -   -   -
Total 1 $ 1,273 $ 1,273 3 $ 1,462 $ 1,453
Summary Of Impaired Loans 
        Unpaid       Average   Interest
    Recorded   Principal   Related   Recorded   Income
    Investment(1)   Balance(1)   Allowance   Investment   Recognized
June 30, 2014                    
With no related allowance recorded:                    
Commercial business $ 1,618 $ 2,146 $ - $ 1,823 $ -
Commercial mortgage   1,142   1,173   -   1,093   -
    2,760   3,319   -   2,916   -
With an allowance recorded:                    
Commercial business   1,971   1,982   1,056   1,837   -
Commercial mortgage   1,592   1,592   432   6,733   -
    3,563   3,574   1,488   8,570   -
  $ 6,323 $ 6,893 $ 1,488 $ 11,486 $ -
 
December 31, 2013                    
With no related allowance recorded:                    
Commercial business $ 1,777 $ 2,273 $ - $ 659 $ -
Commercial mortgage   875   906   -   760   -
    2,652   3,179   -   1,419   -
With an allowance recorded:                    
Commercial business   1,697   1,717   201   3,196   -
Commercial mortgage   8,788   9,188   1,057   3,758   -
    10,485   10,905   1,258   6,954   -
 
  $ 13,137 $ 14,084 $ 1,258 $ 8,373 $ -

 

(1) Difference between recorded investment and unpaid principal balance represents partial charge-offs.

Commercial Loan Portfolio Categorized By Internally Assigned Asset Classification 
  Commercial   Commercial 
    Business   Mortgage
June 30, 2014        
Uncriticized $ 260,164 $ 453,747
Special mention   7,708   6,136
Substandard   9,737   10,053
Doubtful   -   -
Total $ 277,609 $ 469,936
 
December 31, 2013        
Uncriticized $ 250,553 $ 449,447
Special mention   6,311   6,895
Substandard   8,887   13,970
Doubtful   -   -
Total $ 265,751 $ 470,312

 

Retail Loan Portfolio Categorized By Payment Status 
    Residential   Home   Consumer   Other
    Mortgage   Equity   Indirect   Consumer
June 30, 2014                
Performing $ 105,584 $ 362,872 $ 624,991 $ 21,193
Non-performing   758   371   1,427   12
Total $ 106,342 $ 363,243 $ 626,418 $ 21,205
 
December 31, 2013                
Performing $ 112,023 $ 319,733 $ 607,919 $ 22,882
Non-performing   1,078   925   1,471   11
Total $ 113,101 $ 320,658 $ 609,390 $ 22,893

 

Loans And The Related Allowance For Loan Losses 
    Commercial   Commercial   Residential    Home   Consumer   Other    
    Business   Mortgage   Mortgage   Equity   Indirect   Consumer   Total
June 30, 2014                            
Loans:                            
Ending balance $ 277,609 $ 469,936 $ 106,342 $ 363,243 $ 626,418 $ 21,205 $ 1,864,753
Evaluated for impairment:                            
Individually $ 3,589 $ 2,734 $ - $ - $ - $ - $ 6,323
Collectively $ 274,020 $ 467,202 $ 106,342 $ 363,243 $ 626,418 $ 21,205 $ 1,858,430
 
Allowance for loan losses:                            
Ending balance $ 5,402 $ 7,633 $ 618 $ 1,607 $ 11,446 $ 460 $ 27,166
Evaluated for impairment:                            
Individually $ 1,056 $ 432 $ - $ - $ - $ - $ 1,488
Collectively $ 4,346 $ 7,201 $ 618 $ 1,607 $ 11,446 $ 460 $ 25,678
 
June 30, 2013                            
Loans:                            
Ending balance $ 257,784 $ 438,513 $ 117,939 $ 301,429 $ 572,350 $ 24,107 $ 1,712,122
Evaluated for impairment:                            
Individually $ 5,043 $ 3,073 $ - $ - $ - $ - $ 8,116
Collectively $ 252,741 $ 435,440 $ 117,939 $ 301,429 $ 572,350 $ 24,107 $ 1,704,006
 
Allowance for loan losses:                            
Ending balance $ 4,755 $ 7,125 $ 701 $ 1,424 $ 11,095 $ 490 $ 25,590
Evaluated for impairment:                            
Individually $ 956 $ 554 $ - $ - $ - $ - $ 1,510
Collectively $ 3,799 $ 6,571 $ 701 $ 1,424 $ 11,095 $ 490 $ 24,080
Changes In The Allowance For Loan Losses 
  Commercial    Commercial     Residential    Home   Consumer   Other    
    Business   Mortgage     Mortgage   Equity   Indirect   Consumer   Total
 
Three months ended June 30, 2014                          
Beginning balance $ 4,689 $ 7,980   $ 672 $ 1,371 $ 11,984 $ 456 $ 27,152
Charge-offs   3   165     69   156   2,331   224   2,948
Recoveries   68   6     8   29   995   98   1,204
Provision (credit)   648   (188 )   7   363   798   130   1,758
Ending balance $ 5,402 $ 7,633   $ 618 $ 1,607 $ 11,446 $ 460 $ 27,166
 
 
Six months ended June 30, 2014                          
Beginning balance $ 4,273 $ 7,743   $ 676 $ 1,367 $ 12,230 $ 447 $ 26,736
Charge-offs   71   165     147   262   4,786   493   5,924
Recoveries   97   13     29   40   2,100   211   2,490
Provision   1,103   42     60   462   1,902   295   3,864
Ending balance $ 5,402 $ 7,633   $ 618 $ 1,607 $ 11,446 $ 460 $ 27,166

 

  Commercial     Commercial    Residential    Home   Consumer   Other    
    Business     Mortgage   Mortgage   Equity   Indirect   Consumer   Total
 
Three months ended June 30, 2013                          
Beginning balance $ 5,167   $ 6,971 $ 668 $ 1,283 $ 11,312 $ 426 $ 25,827
Charge-offs   292     106   85   53   1,929   229   2,694
Recoveries   205     143   13   73   759   71   1,264
Provision (credit)   (325 )   117   105   121   953   222   1,193
Ending balance $ 4,755   $ 7,125 $ 701 $ 1,424 $ 11,095 $ 490 $ 25,590
 
 
Six months ended June 30, 2013                          
Beginning balance $ 4,884   $ 6,581 $ 740 $ 1,282 $ 10,715 $ 512 $ 24,714
Charge-offs   531     109   247   322   3,647   481   5,337
Recoveries   242     157   30   110   1,564   208   2,311
Provision   160     496   178   354   2,463   251   3,902
Ending balance $ 4,755   $ 7,125 $ 701 $ 1,424 $ 11,095 $ 490 $ 25,590

Goodwill And Other Intangible Assets (Tables)
Other intangible assets 
    June 30,     December 31,  
    2014     2013  
Gross carrying amount $ 2,042   $ 2,042  
Accumulated amortization   (752 )   (576 )
Net carrying value $ 1,290   $ 1,466  
Estimated Core Deposit Intangible Amortization Expense 
2014 (remainder of year) $ 165
2015   296
2016   251
2017   205
2018   160
2019   115
Shareholders' Equity (Tables)
Changes In Shares Of Common Stock
  Outstanding   Treasury   Issued
June 30, 2014          
Shares outstanding at December 31, 2013 13,829,355   332,242   14,161,597
Restricted stock awards issued 43,242   (43,242 ) -
Restricted stock awards forfeited (8,144 ) 8,144   -
Stock options exercised 7,125   (7,125 ) -
Treasury stock purchases (9,102 ) 9,102   -
Shares outstanding at June 30, 2014 13,862,476   299,121   14,161,597
 
June 30, 2013          
Shares outstanding at December 31, 2012 13,787,709   373,888   14,161,597
Restricted stock awards issued 42,035   (42,035 ) -
Restricted stock awards forfeited (18,977 ) 18,977   -
Stock options exercised 3,300   (3,300 ) -
Treasury stock purchases (11,349 ) 11,349   -
Directors' retainer 5,672   (5,672 ) -
Shares outstanding at June 30, 2013 13,808,390   353,207   14,161,597
Accumulated Other Comprehensive Income (Loss) (Tables)
Components Of Other Comprehensive Income (Loss) 
  Pre-tax           Net-of-tax  
    Amount     Tax Effect     Amount  
June 30, 2014                  
Securities available for sale and transferred securities:                  
Change in unrealized gain/loss during the period $ 12,168   $ 4,821   $ 7,347  
Reclassification adjustment for net gains included in net income (1)   (1,521 )   (602 )   (919 )
Total securities available for sale and transferred securities   10,647     4,219     6,428  
Amortization of pension and post-retirement items:                  
Prior service credit   (24 )   (9 )   (15 )
Net actuarial losses   88     34     54  
Total pension and post-retirement obligations   64     25     39  
Other comprehensive income $ 10,711   $ 4,244   $ 6,467  
 
June 30, 2013                  
Securities available for sale:                  
Change in unrealized gain/loss during the period $ (26,571 ) $ (10,525 ) $ (16,046 )
Reclassification adjustment for net gains included in net income   (1,224 )   (485 )   (739 )
Total securities available for sale   (27,795 )   (11,010 )   (16,785 )
Amortization of pension and post-retirement items:                  
Prior service credit   (24 )   (9 )   (15 )
Net actuarial losses   682     269     413  
Total pension and post-retirement obligations   658     260     398  
Other comprehensive loss $ (27,137 ) $ (10,750 ) $ (16,387 )

 

(1) Includes amounts related to the amortization/accretion of unrealized net gains and losses related to the Company's reclassification of available for sale investment securities to the held to maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield.

Components Of Accumulated Other Comprehensive Income (Loss) 
    Securities              
    Available for     Pension and     Accumulated   
    Sale and   Post-      Other  
    Transferred     retirement     Comprehensive   
    Securities     Obligations     Income (Loss)   
June 30, 2014                  
Balance at beginning of year $ (5,337 ) $ (4,850 ) $ (10,187 )
Other comprehensive income before reclassifications   7,347     -     7,347  
Amounts reclassified from accumulated other comprehensive income   (919 )   39     (880 )
Net current period other comprehensive income   6,428     39     6,467  
Balance at end of period $ 1,091   $ (4,811 )  $ (3,720 )
 
June 30, 2013                  
Balance at beginning of year $ 16,060   $ (12,807 )  $ 3,253  
Other comprehensive (loss) income before reclassifications   (16,046 )   -     (16,046 )
Amounts reclassified from accumulated other comprehensive income   (739 )   398     (341 )
Net current period other comprehensive (loss) income   (16,785 )   398     (16,387 )
Balance at end of period $ (725 ) $ (12,409 ) $ (13,134 )
Amounts Reclassified Out Of Each Component Of Accumulated Other Comprehensive Income (Loss) 
    Amount Reclassified from    
Details About Accumulated Other   Accumulated Other   Affected Line Item in the
Comprehensive Income Components   Comprehensive Income   Consolidated Statement of Income
    Six months ended    
    June 30,    
    2014     2013    
Realized gain on sale of investment securities $ 1,262   $ 1,224   Net gain on disposal of investment securities
Amortization of unrealized holding gains (losses)              
on investment securities transferred from              
available for sale to held to maturity   259     -   Interest income
    1,521     1,224   Total before tax
    (602 )   (485 ) Income tax expense
    919     739   Net of tax
Amortization of pension and post-retirement items:              
Prior service credit (1)   24     24   Salaries and employee benefits
Net actuarial losses (1)   (88 )   (682 ) Salaries and employee benefits
    (64 )   (658 ) Total before tax
    25     260   Income tax benefit
    (39 )   (398 ) Net of tax
 
Total reclassified for the period $ 880   $ 341    

 

(1) These items are included in the computation of net periodic pension expense. See Note 9 – Employee Benefit Plans for additional information.

Share-Based Compensation Plans (Tables)
Summary Of Restricted Stock Award Activity 
        Weighted
        Average
        Market
  Number of     Price at
  Shares     Grant Date
Outstanding at beginning of year 65,040   $ 16.92
Granted 43,242     18.76
Vested (33,728 )   18.17
Forfeited (8,144 )   19.77
Outstanding at end of period 66,410   $ 17.13
Summary Of Stock Option Activity 
          Weighted    
        Weighted Average    
        Average Remaining   Aggregate
  Number of     Exercise Contractual   Intrinsic
  Options     Price Term   Value
Outstanding at beginning of year 192,934   $ 19.83      
Exercised (7,125 )   18.45      
Expired (23,436 )   23.64      
Outstanding and exercisable at end of period 162,373   $ 19.35 2.4 $ 661
Share-Based Compensation Expense Included In Consolidated Statements Of Income 
  Three months ended Six months ended
  June 30, June 30,
  2014  2013      2014   2013 
Salaries and employee benefits $ 75 $ (6 ) $ 156 $ 79
Other noninterest expense   127   109     149   126
Total share-based compensation expense $ 202 $ 103   $ 305 $ 205
Employee Benefit Plans (Tables)
Components Of Net Periodic Benefit Expense
  Three months ended Six months ended
  June 30, June 30,
  2014    2013      2014     2013  
Service cost $ 480   $ 516   $ 959   $ 1,032  
Interest cost on projected benefit obligation   573     505     1,147     1,010  
Expected return on plan assets (1,030 )   (921 )   (2,059 )   (1,842 )
Amortization of prior service credit   (12 )   (12 )   (24 )   (24 )
Amortization of net actuarial losses   44     341     88     682  
Net periodic pension expense $ 55   $ 429   $ 111   $ 858  
Commitments And Contingencies (Tables)
Off-Balance Sheet Commitments
    June 30,   December 31,
    2014   2013
Commitments to extend credit $ 444,617 $ 431,236
Standby letters of credit   11,020   8,618
Fair Value Measurements (Tables)
Assets Measured At Fair Value On A Recurring And Non-Recurring Basis 
    Quoted Prices in              
    Active Markets   Significant          
    for Identical   Other   Significant     
    Assets or   Observable   Unobservable     
    Liabilities   Inputs   Inputs     
    (Level 1)   (Level 2)   (Level 3)    Total
June 30, 2014                  
Measured on a recurring basis:                  
Securities available for sale:                  
U.S. Government agencies and government sponsored enterprises $ - $ 135,117   $ - $ 135,117
Mortgage-backed securities   -   466,555     -   466,555
Asset-backed securities   -   231     -   231
  $ - $ 601,903   $ - $ 601,903
Measured on a nonrecurring basis:                  
Loans:                  
Loans held for sale $ - $ 201   $ - $ 201
Collateral dependent impaired loans   -   -   2,075   2,075
Other assets:                  
Loan servicing rights   -   -   1,446   1,446
Other real estate owned   -   -   554   554
  $ - $ 201 $ 4,075 $ 4,276
 
December 31, 2013                  
Measured on a recurring basis:                  
Securities available for sale:                  
U.S. Government agencies and government sponsored enterprises $ - $ 134,452   $ - $ 134,452
Mortgage-backed securities   -   474,549     -   474,549
Asset-backed securities   -   399     -   399
  $ - $ 609,400   $ - $ 609,400
Measured on a nonrecurring basis:                  
Loans:                  
Loans held for sale $ - $ 3,381   $ - $ 3,381
Collateral dependent impaired loans   -   -   9,227   9,227
Other assets:                  
Loan servicing rights   -   -   1,565   1,565
Other real estate owned   -   -   333   333
  $ - $ 3,381 $ 11,125 $ 14,506

 

Additional Quantitative Information About Assets Measured At Fair Value On A Recurring And Non-Recurring Basis 
    Fair     Unobservable Input
Asset   Value Valuation Technique Unobservable Input Value or Range
Collateral dependent impaired loans $ 2,075 Appraisal of collateral (1) Appraisal adjustments (2) 25% - 100% discount
      Discounted cash flow Discount rate 4.5% (3)
        Risk premium rate 11.0% (3)
 
Loan servicing rights   1,446 Discounted cash flow Discount rate 5.2% (3)
        Constant prepayment rate 12.4% (3)
 
Other real estate owned   554 Appraisal of collateral (1) Appraisal adjustments (2) 27% - 43% discount

 

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

(3) Weighted averages.

Carrying Amount, Estimated Fair Value, And Placement In Fair Value Hierarchy Of Financial Instruments 

 
  Level in   June 30, 2014   December 31, 2013
  Fair Value       Estimated       Estimated
  Measurement   Carrying   Fair   Carrying   Fair
  Hierarchy   Amount   Value   Amount   Value
Financial assets:                  
Cash and cash equivalents Level 1 $ 64,832 $ 64,832 $ 59,692 $ 59,692
Securities available for sale Level 2   601,903   601,903   609,400   609,400
Securities held to maturity Level 2   262,057   266,640   249,785   250,657
Loans held for sale Level 2   201   201   3,381   3,381
Loans Level 2   1,867,423   1,881,386   1,797,656   1,802,407
Loans (1) Level 3   2,075   2,075   9,227   9,227
Accrued interest receivable Level 1   7,647   7,647   8,150   8,150
FHLB and FRB stock Level 2   15,855   15,855   19,663   19,663
 
Financial liabilities:                  
Non-maturity deposits Level 1   1,824,906   1,824,906   1,724,133   1,724,133
Time deposits Level 2   625,172   626,578   595,923   596,928
Short-term borrowings Level 1   254,683   254,683   337,042   337,042
Accrued interest payable Level 1   3,658   3,658   3,407   3,407

 

(1) Comprised of collateral dependent impaired loans.

Earnings Per Common Share ("EPS") (Reconciliation Of Earnings And Shares Used In Calculating Basic And Diluted EPS) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Earnings Per Common Share ("EPS") [Abstract]
 
 
 
 
Net income available to common shareholders
$ 6,667 
$ 6,483 
$ 13,520 
$ 12,264 
Total shares issued
14,162 
14,162 
14,162 
14,162 
Unvested restricted stock awards
(67)
(66)
(65)
(73)
Treasury shares
(304)
(357)
(315)
(361)
Total basic weighted average common shares outstanding
13,791 
13,739 
13,782 
13,728 
Exercise of stock options
28 
5 
25 
6 
Vesting of restricted stock awards
19 
23 
24 
33 
Total diluted weighted average common shares outstanding
13,838 
13,767 
13,831 
13,767 
Basic earnings per common share
$ 0.48 
$ 0.47 
$ 0.98 
$ 0.89 
Diluted earnings per common share
$ 0.48 
$ 0.47 
$ 0.98 
$ 0.89 
Earnings Per Common Share ("EPS") (Shares Excluded from Computation of Diluted EPS) (Details)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Antidilutive shares excluded from computation of diluted EPS
3 
234 
8 
193 
Stock Options [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Antidilutive shares excluded from computation of diluted EPS
 
225 
7 
188 
Restricted Stock Awards [Member]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Antidilutive shares excluded from computation of diluted EPS
3 
9 
1 
5 
Investment Securities (Narrative) (Details) (USD $)
6 Months Ended
Jun. 30, 2014
security
Jun. 30, 2013
Dec. 31, 2013
security
Investment Securities [Abstract]
 
 
 
Securities pledged as collateral
$ 745,500,000 
 
$ 763,100,000 
Number of security positions, unrealized loss position
129 
 
331 
Number of security positions, unrealized loss position for more than 12 months
61 
 
 
Fair value, continuous unrealized loss position for more than 12 months
236,297,000 
 
50,928,000 
Securities available for sale, 12 months or longer, Unrealized Losses
7,913,000 
 
2,818,000 
Number of security positions, unrealized loss position for less than 12 months
68 
 
 
Fair value, continuous unrealized loss position for less than 12 months
82,471,000 
 
335,030,000 
Unrealized loss, continuous unrealized loss position for less than 12 months
207,000 
 
14,778,000 
OTTI charge recognized
$ 0 
$ 0 
 
Investment Securities (Summary Of Amortized Cost And Fair Value Of Investment Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
$ 599,763 
$ 618,166 
Securities available for sale, Unrealized Gains
10,260 
8,830 
Securities available for sale, Unrealized Losses
8,120 
17,596 
Securities available for sale, Fair Value
601,903 
609,400 
Securities held to maturity, Amortized Cost
262,057 
249,785 
Securities held to maturity, Unrealized Losses
8,198 
18,064 
Securities held to maturity, Fair Value
266,640 
250,657 
U.S. Government Agencies And Government Sponsored Enterprises [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
134,448 
135,840 
Securities available for sale, Unrealized Gains
1,719 
1,414 
Securities available for sale, Unrealized Losses
1,050 
2,802 
Securities available for sale, Fair Value
135,117 
134,452 
State And Political Subdivisions [Member]
 
 
Investment [Line Items]
 
 
Securities held to maturity, Amortized Cost
262,057 
249,785 
Securities held to maturity, Unrealized Gains
4,661 
1,340 
Securities held to maturity, Unrealized Losses
78 
468 
Securities held to maturity, Fair Value
266,640 
250,657 
Mortgage-Backed Securities [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
465,315 
482,308 
Securities available for sale, Unrealized Gains
8,310 
7,035 
Securities available for sale, Unrealized Losses
7,070 
14,794 
Securities available for sale, Fair Value
466,555 
474,549 
Mortgage-Backed Securities [Member] |
Federal National Mortgage Association [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
172,449 
173,507 
Securities available for sale, Unrealized Gains
1,993 
1,511 
Securities available for sale, Unrealized Losses
2,217 
4,810 
Securities available for sale, Fair Value
172,225 
170,208 
Mortgage-Backed Securities [Member] |
Federal Home Loan Mortgage Corporation [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
32,922 
36,737 
Securities available for sale, Unrealized Gains
894 
562 
Securities available for sale, Unrealized Losses
10 
205 
Securities available for sale, Fair Value
33,806 
37,094 
Mortgage-Backed Securities [Member] |
Government National Mortgage Association [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
62,946 
61,832 
Securities available for sale, Unrealized Gains
2,551 
2,152 
Securities available for sale, Unrealized Losses
54 
142 
Securities available for sale, Fair Value
65,443 
63,842 
Collateralized Mortgage Obligations [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
196,998 
210,232 
Securities available for sale, Unrealized Gains
2,872 
2,810 
Securities available for sale, Unrealized Losses
4,789 
9,637 
Securities available for sale, Fair Value
195,081 
203,405 
Collateralized Mortgage Obligations [Member] |
Federal National Mortgage Association [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
63,224 
63,838 
Securities available for sale, Unrealized Gains
431 
261 
Securities available for sale, Unrealized Losses
1,427 
3,195 
Securities available for sale, Fair Value
62,228 
60,904 
Collateralized Mortgage Obligations [Member] |
Federal Home Loan Mortgage Corporation [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
96,922 
102,660 
Securities available for sale, Unrealized Gains
215 
169 
Securities available for sale, Unrealized Losses
3,289 
5,856 
Securities available for sale, Fair Value
93,848 
96,973 
Collateralized Mortgage Obligations [Member] |
Government National Mortgage Association [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
36,852 
43,734 
Securities available for sale, Unrealized Gains
911 
913 
Securities available for sale, Unrealized Losses
73 
586 
Securities available for sale, Fair Value
37,690 
44,061 
Collateralized Mortgage Obligations [Member] |
Privately Issued [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Unrealized Gains
1,315 
1,467 
Securities available for sale, Fair Value
1,315 
1,467 
Asset-Backed Securities [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Amortized Cost
 
18 
Securities available for sale, Unrealized Gains
231 
381 
Securities available for sale, Fair Value
$ 231 
$ 399 
Investment Securities (Scheduled Maturities Of Securities Available For Sale And Securities Held To Maturity) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Investment Securities [Abstract]
 
 
Debt securities available for sale, Due in one year or less, Amortized Cost
$ 25,204 
 
Debt securities available for sale, Due from one to five years, Amortized Cost
83,162 
 
Debt securities available for sale, Due after five years through ten years, Amortized Cost
205,664 
 
Debt securities available for sale, Due after ten years, Amortized Cost
285,733 
 
Debt securities available for sale, Amortized Cost
599,763 
 
Debt securities available for sale, Due in one year or less, Fair Value
25,204 
 
Debt securities available for sale, Due from one to five years, Fair Value
84,857 
 
Debt securities available for sale, Due after five years through ten years, Fair Value
205,297 
 
Debt securities available for sale, Due after ten years, Fair Value
286,545 
 
Debt securities available for sale, Fair Value
601,903 
 
Debt securities held to maturity, Due in one year or less, Amortized Cost
23,466 
 
Debt securities held to maturity, Due from one to five years, Amortized Cost
132,765 
 
Debt securities held to maturity, Due after five years through ten years, Amortized Cost
105,784 
 
Debt securities held to maturity, Due after ten years, Amortized Cost
42 
 
Held-to-maturity Securities, Total
262,057 
249,785 
Debt securities held to maturity, Due in one year or less, Fair Value
23,556 
 
Debt securities held to maturity, Due from one to five years, Fair Value
134,973 
 
Debt securities held to maturity, Due after five years through ten years, Fair Value
108,057 
 
Debt securities held to maturity, Due after ten years, Fair Value
54 
 
Securities held to maturity, Fair Value
$ 266,640 
$ 250,657 
Investment Securities (Sales And Calls Of Securities Available For Sale) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Investment Securities [Abstract]
 
 
 
 
Proceeds from sales and calls
$ 41,958 
$ 375 
$ 61,428 
$ 1,327 
Gross realized gains
$ 949 
$ 332 
$ 1,262 
$ 1,224 
Investment Securities (Investments' Gross Unrealized Losses And Fair Value) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
$ 82,471 
$ 335,030 
Securities available for sale, Less than 12 months, Unrealized Losses
207 
14,778 
Securities available for sale, 12 months or longer, Fair Value
236,297 
50,928 
Securities available for sale, 12 months or longer, Unrealized Losses
7,913 
2,818 
Securities available for sale, Fair Value, Total
318,768 
385,958 
Securities available for sale, Unrealized Losses, Total
8,120 
17,596 
Securities held to maturity, Less than 12 months, Fair Value
95,756 
407,299 
Securities held to maturity, Less than 12 months, Unrealized Losses
285 
15,246 
Securities held to maturity, 12 months or longer, Fair Value
236,297 
50,928 
Securities held to maturity, 12 months or longer, Unrealized Losses
7,913 
2,818 
Securities held to maturity, Fair Value, Total
332,053 
458,227 
Securities held to maturity, Unrealized Losses, Total
8,198 
18,064 
U.S. Government Agencies And Government Sponsored Enterprises [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
30,830 
86,177 
Securities available for sale, Less than 12 months, Unrealized Losses
2 
2,788 
Securities available for sale, 12 months or longer, Fair Value
41,159 
2,717 
Securities available for sale, 12 months or longer, Unrealized Losses
1,048 
14 
Securities available for sale, Fair Value, Total
71,989 
88,894 
Securities available for sale, Unrealized Losses, Total
1,050 
2,802 
State And Political Subdivisions [Member]
 
 
Investment [Line Items]
 
 
Securities held to maturity, Less than 12 months, Fair Value
13,285 
72,269 
Securities held to maturity, Less than 12 months, Unrealized Losses
78 
468 
Securities held to maturity, Fair Value, Total
13,285 
72,269 
Securities held to maturity, Unrealized Losses, Total
78 
468 
Mortgage-Backed Securities [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
51,641 
248,853 
Securities available for sale, Less than 12 months, Unrealized Losses
205 
11,990 
Securities available for sale, 12 months or longer, Fair Value
195,138 
48,211 
Securities available for sale, 12 months or longer, Unrealized Losses
6,865 
2,804 
Securities available for sale, Fair Value, Total
246,779 
297,064 
Securities available for sale, Unrealized Losses, Total
7,070 
14,794 
Mortgage-Backed Securities [Member] |
Federal National Mortgage Association [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
34,572 
103,778 
Securities available for sale, Less than 12 months, Unrealized Losses
107 
3,491 
Securities available for sale, 12 months or longer, Fair Value
64,582 
20,689 
Securities available for sale, 12 months or longer, Unrealized Losses
2,110 
1,319 
Securities available for sale, Fair Value, Total
99,154 
124,467 
Securities available for sale, Unrealized Losses, Total
2,217 
4,810 
Mortgage-Backed Securities [Member] |
Federal Home Loan Mortgage Corporation [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
 
14,166 
Securities available for sale, Less than 12 months, Unrealized Losses
 
205 
Securities available for sale, 12 months or longer, Fair Value
3,750 
 
Securities available for sale, 12 months or longer, Unrealized Losses
10 
 
Securities available for sale, Fair Value, Total
3,750 
14,166 
Securities available for sale, Unrealized Losses, Total
10 
205 
Mortgage-Backed Securities [Member] |
Government National Mortgage Association [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
5,440 
14,226 
Securities available for sale, Less than 12 months, Unrealized Losses
54 
142 
Securities available for sale, Fair Value, Total
5,440 
14,226 
Securities available for sale, Unrealized Losses, Total
54 
142 
Collateralized Mortgage Obligations [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
11,629 
116,683 
Securities available for sale, Less than 12 months, Unrealized Losses
44 
8,152 
Securities available for sale, 12 months or longer, Fair Value
126,806 
27,522 
Securities available for sale, 12 months or longer, Unrealized Losses
4,745 
1,485 
Securities available for sale, Fair Value, Total
138,435 
144,205 
Securities available for sale, Unrealized Losses, Total
4,789 
9,637 
Collateralized Mortgage Obligations [Member] |
Federal National Mortgage Association [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
9,010 
35,632 
Securities available for sale, Less than 12 months, Unrealized Losses
22 
2,586 
Securities available for sale, 12 months or longer, Fair Value
37,314 
11,760 
Securities available for sale, 12 months or longer, Unrealized Losses
1,405 
609 
Securities available for sale, Fair Value, Total
46,324 
47,392 
Securities available for sale, Unrealized Losses, Total
1,427 
3,195 
Collateralized Mortgage Obligations [Member] |
Federal Home Loan Mortgage Corporation [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
2,619 
72,655 
Securities available for sale, Less than 12 months, Unrealized Losses
22 
4,980 
Securities available for sale, 12 months or longer, Fair Value
83,809 
15,762 
Securities available for sale, 12 months or longer, Unrealized Losses
3,267 
876 
Securities available for sale, Fair Value, Total
86,428 
88,417 
Securities available for sale, Unrealized Losses, Total
3,289 
5,856 
Collateralized Mortgage Obligations [Member] |
Government National Mortgage Association [Member]
 
 
Investment [Line Items]
 
 
Securities available for sale, Less than 12 months, Fair Value
 
8,396 
Securities available for sale, Less than 12 months, Unrealized Losses
 
586 
Securities available for sale, 12 months or longer, Fair Value
5,683 
 
Securities available for sale, 12 months or longer, Unrealized Losses
73 
 
Securities available for sale, Fair Value, Total
5,683 
8,396 
Securities available for sale, Unrealized Losses, Total
$ 73 
$ 586 
Loans (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for sale
$ 201 
$ 3,381 
Past due greater than 90 days
6 
6 
Other Consumer [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Past due greater than 90 days
$ 6 
$ 6 
Loans (Loan Portfolio) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans, Gross
$ 1,864,753 
$ 1,802,105 
Net Deferred Loan Costs (Fees)
31,911 
31,514 
Loans, Net
1,896,664 
1,833,619 
Allowance for loan losses
(27,166)
(26,736)
Total loans, net
1,869,498 
1,806,883 
Commercial Business [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans, Gross
277,609 
265,751 
Net Deferred Loan Costs (Fees)
76 
15 
Loans, Net
277,685 
265,766 
Commercial Mortgage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans, Gross
469,936 
470,312 
Net Deferred Loan Costs (Fees)
(881)
(1,028)
Loans, Net
469,055 
469,284 
Residential Mortgage [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans, Gross
106,342 
113,101 
Net Deferred Loan Costs (Fees)
(136)
(56)
Loans, Net
106,206 
113,045 
Home Equity [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans, Gross
363,243 
320,658 
Net Deferred Loan Costs (Fees)
6,335 
5,428 
Loans, Net
369,578 
326,086 
Consumer Indirect [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans, Gross
626,418 
609,390 
Net Deferred Loan Costs (Fees)
26,330 
26,978 
Loans, Net
652,748 
636,368 
Other Consumer [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans, Gross
21,205 
22,893 
Net Deferred Loan Costs (Fees)
187 
177 
Loans, Net
$ 21,392 
$ 23,070 
Loans (Recorded Investment By Loan Class In Current And Nonaccrual Loans) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Jun. 30, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
30-59 Days Past Due
$ 4,377 
$ 4,905 
 
60-89 Days Past Due
376 
890 
 
Greater Than 90 Days
6 
6 
 
Total Past Due
4,759 
5,801 
 
Nonaccrual
8,885 
16,616 
 
Current
1,851,109 
1,779,688 
 
Total loans
1,864,753 
1,802,105 
1,712,122 
Commercial Business [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
30-59 Days Past Due
2,005 
558 
 
60-89 Days Past Due
 
199 
 
Total Past Due
2,005 
757 
 
Nonaccrual
3,589 
3,474 
 
Current
272,015 
261,520 
 
Total loans
277,609 
265,751 
257,784 
Commercial Mortgage [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
30-59 Days Past Due
 
800 
 
Total Past Due
 
800 
 
Nonaccrual
2,734 
9,663 
 
Current
467,202 
459,849 
 
Total loans
469,936 
470,312 
438,513 
Residential Mortgage [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
30-59 Days Past Due
408 
542 
 
Total Past Due
408 
542 
 
Nonaccrual
758 
1,078 
 
Current
105,176 
111,481 
 
Total loans
106,342 
113,101 
117,939 
Home Equity [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
30-59 Days Past Due
235 
750 
 
60-89 Days Past Due
32 
143 
 
Total Past Due
267 
893 
 
Nonaccrual
371 
925 
 
Current
362,605 
318,840 
 
Total loans
363,243 
320,658 
301,429 
Consumer Indirect [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
30-59 Days Past Due
1,590 
2,129 
 
60-89 Days Past Due
324 
476 
 
Total Past Due
1,914 
2,605 
 
Nonaccrual
1,427 
1,471 
 
Current
623,077 
605,314 
 
Total loans
626,418 
609,390 
572,350 
Other Consumer [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
30-59 Days Past Due
139 
126 
 
60-89 Days Past Due
20 
72 
 
Greater Than 90 Days
6 
6 
 
Total Past Due
165 
204 
 
Nonaccrual
6 
5 
 
Current
21,034 
22,684 
 
Total loans
$ 21,205 
$ 22,893 
$ 24,107 
Loans (Information Related To Loans Modified In A TDR) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
contract
Jun. 30, 2013
contract
Jun. 30, 2014
contract
Jun. 30, 2013
contract
Financing Receivable, Modifications [Line Items]
 
 
 
 
Number of Contracts
1 
1 
1 
3 
Pre-Modification Outstanding Recorded Investment
$ 1,381 
$ 1,273 
$ 1,381 
$ 1,462 
Post-Modification Outstanding Recorded Investment
1,381 
1,273 
1,381 
1,453 
Commercial Business [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Number of Contracts
1 
1 
1 
3 
Pre-Modification Outstanding Recorded Investment
1,381 
1,273 
1,381 
1,462 
Post-Modification Outstanding Recorded Investment
1,381 
1,273 
1,381 
1,453 
Commercial Mortgage [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Number of Contracts
   
   
 
 
Pre-Modification Outstanding Recorded Investment
   
   
 
 
Post-Modification Outstanding Recorded Investment
   
   
 
 
Loans (Summary Of Impaired Loans) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Jun. 30, 2014
Financing Receivable, Impaired [Line Items]
 
 
Recorded Investment, With no related allowance recorded
$ 2,652 1
$ 2,760 1
Recorded Investment, With an allowance recorded
10,485 1
3,563 1
Recorded Investment
13,137 1
6,323 1
Unpaid Principal Balance, With no related allowance recorded
3,179 1
3,319 1
Unpaid Principal Balance, With an allowance recorded
10,905 1
3,574 1
Unpaid Principal Balance
14,084 1
6,893 1
Related Allowance
1,258 
1,488 
Average Recorded Investment, With no related allowance recorded
1,419 
2,916 
Average Recorded Investment, With an allowance recorded
6,954 
8,570 
Average Recorded Investment
8,373 
11,486 
Interest Income Recognized, With no related allowance recorded
   
   
Interest Income Recognized, With an allowance recorded
   
   
Interest Income Recognized
   
   
Commercial Business [Member]
 
 
Financing Receivable, Impaired [Line Items]
 
 
Recorded Investment, With no related allowance recorded
1,777 1
1,618 1
Recorded Investment, With an allowance recorded
1,697 1
1,971 1
Unpaid Principal Balance, With no related allowance recorded
2,273 1
2,146 1
Unpaid Principal Balance, With an allowance recorded
1,717 1
1,982 1
Related Allowance
201 
1,056 
Average Recorded Investment, With no related allowance recorded
659 
1,823 
Average Recorded Investment, With an allowance recorded
3,196 
1,837 
Interest Income Recognized, With no related allowance recorded
   
   
Interest Income Recognized, With an allowance recorded
   
   
Commercial Mortgage [Member]
 
 
Financing Receivable, Impaired [Line Items]
 
 
Recorded Investment, With no related allowance recorded
875 1
1,142 1
Recorded Investment, With an allowance recorded
8,788 1
1,592 1
Unpaid Principal Balance, With no related allowance recorded
906 1
1,173 1
Unpaid Principal Balance, With an allowance recorded
9,188 1
1,592 1
Related Allowance
1,057 
432 
Average Recorded Investment, With no related allowance recorded
760 
1,093 
Average Recorded Investment, With an allowance recorded
3,758 
6,733 
Interest Income Recognized, With no related allowance recorded
   
   
Interest Income Recognized, With an allowance recorded
   
   
Loans (Commercial Loan Portfolio Categorized By Internally Assigned Asset Classification) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
$ 1,864,753 
$ 1,802,105 
Commercial Business [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
277,609 
265,751 
Commercial Business [Member] |
Uncriticized [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
260,164 
250,553 
Commercial Business [Member] |
Special Mention [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
7,708 
6,311 
Commercial Business [Member] |
Substandard [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
9,737 
8,887 
Commercial Business [Member] |
Doubtful [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
   
   
Commercial Mortgage [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
469,936 
470,312 
Commercial Mortgage [Member] |
Uncriticized [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
453,747 
449,447 
Commercial Mortgage [Member] |
Special Mention [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
6,136 
6,895 
Commercial Mortgage [Member] |
Substandard [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
10,053 
13,970 
Commercial Mortgage [Member] |
Doubtful [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
   
   
Loans (Retail Loan Portfolio Categorized By Payment Status) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
$ 1,864,753 
$ 1,802,105 
Residential Mortgage [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
106,342 
113,101 
Residential Mortgage [Member] |
Performing [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
105,584 
112,023 
Residential Mortgage [Member] |
Non-Performing [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
758 
1,078 
Home Equity [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
363,243 
320,658 
Home Equity [Member] |
Performing [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
362,872 
319,733 
Home Equity [Member] |
Non-Performing [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
371 
925 
Consumer Indirect [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
626,418 
609,390 
Consumer Indirect [Member] |
Performing [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
624,991 
607,919 
Consumer Indirect [Member] |
Non-Performing [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
1,427 
1,471 
Other Consumer [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
21,205 
22,893 
Other Consumer [Member] |
Performing [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
21,193 
22,882 
Other Consumer [Member] |
Non-Performing [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Total Loans
$ 12 
$ 11 
Loans (Changes In The Allowance For Loan Losses) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
 
 
Loans, Ending balance
$ 1,864,753 
$ 1,712,122 
$ 1,864,753 
$ 1,712,122 
$ 1,802,105 
Loans, Individually Evaluated for impairment
6,323 
8,116 
6,323 
8,116 
 
Loans, Collectively Evaluated for impairment
1,858,430 
1,704,006 
1,858,430 
1,704,006 
 
Ending balance
27,166 
25,590 
27,166 
25,590 
 
Allowance for loan losses, Individually Evaluated for impairment
1,488 
1,510 
1,488 
1,510 
 
Allowance for loan losses, Collectively Evaluated for impairment
25,678 
24,080 
25,678 
24,080 
 
Commercial Business [Member]
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
 
 
Beginning balance
4,689 
5,167 
4,273 
4,884 
 
Charge-offs
3 
292 
71 
531 
 
Recoveries
68 
205 
97 
242 
 
Provision (credit)
648 
(325)
1,103 
160 
 
Loans, Ending balance
277,609 
257,784 
277,609 
257,784 
265,751 
Loans, Individually Evaluated for impairment
3,589 
5,043 
3,589 
5,043 
 
Loans, Collectively Evaluated for impairment
274,020 
252,741 
274,020 
252,741 
 
Ending balance
5,402 
4,755 
5,402 
4,755 
 
Allowance for loan losses, Individually Evaluated for impairment
1,056 
956 
1,056 
956 
 
Allowance for loan losses, Collectively Evaluated for impairment
4,346 
3,799 
4,346 
3,799 
 
Commercial Mortgage [Member]
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
 
 
Beginning balance
7,980 
6,971 
7,743 
6,581 
 
Charge-offs
165 
106 
165 
109 
 
Recoveries
6 
143 
13 
157 
 
Provision (credit)
(188)
117 
42 
496 
 
Loans, Ending balance
469,936 
438,513 
469,936 
438,513 
470,312 
Loans, Individually Evaluated for impairment
2,734 
3,073 
2,734 
3,073 
 
Loans, Collectively Evaluated for impairment
467,202 
435,440 
467,202 
435,440 
 
Ending balance
7,633 
7,125 
7,633 
7,125 
 
Allowance for loan losses, Individually Evaluated for impairment
432 
554 
432 
554 
 
Allowance for loan losses, Collectively Evaluated for impairment
7,201 
6,571 
7,201 
6,571 
 
Residential Mortgage [Member]
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
 
 
Beginning balance
672 
668 
676 
740 
 
Charge-offs
69 
85 
147 
247 
 
Recoveries
8 
13 
29 
30 
 
Provision (credit)
7 
105 
60 
178 
 
Loans, Ending balance
106,342 
117,939 
106,342 
117,939 
113,101 
Loans, Collectively Evaluated for impairment
106,342 
117,939 
106,342 
117,939 
 
Ending balance
618 
701 
618 
701 
 
Allowance for loan losses, Collectively Evaluated for impairment
618 
701 
618 
701 
 
Home Equity [Member]
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
 
 
Beginning balance
1,371 
1,283 
1,367 
1,282 
 
Charge-offs
156 
53 
262 
322 
 
Recoveries
29 
73 
40 
110 
 
Provision (credit)
363 
121 
462 
354 
 
Loans, Ending balance
363,243 
301,429 
363,243 
301,429 
320,658 
Loans, Collectively Evaluated for impairment
363,243 
301,429 
363,243 
301,429 
 
Ending balance
1,607 
1,424 
1,607 
1,424 
 
Allowance for loan losses, Collectively Evaluated for impairment
1,607 
1,424 
1,607 
1,424 
 
Consumer Indirect [Member]
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
 
 
Beginning balance
11,984 
11,312 
12,230 
10,715 
 
Charge-offs
2,331 
1,929 
4,786 
3,647 
 
Recoveries
995 
759 
2,100 
1,564 
 
Provision (credit)
798 
953 
1,902 
2,463 
 
Loans, Ending balance
626,418 
572,350 
626,418 
572,350 
609,390 
Loans, Collectively Evaluated for impairment
626,418 
572,350 
626,418 
572,350 
 
Ending balance
11,446 
11,095 
11,446 
11,095 
 
Allowance for loan losses, Collectively Evaluated for impairment
11,446 
11,095 
11,446 
11,095 
 
Other Consumer [Member]
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
 
 
Beginning balance
456 
426 
447 
512 
 
Charge-offs
224 
229 
493 
481 
 
Recoveries
98 
71 
211 
208 
 
Provision (credit)
130 
222 
295 
251 
 
Loans, Ending balance
21,205 
24,107 
21,205 
24,107 
22,893 
Loans, Collectively Evaluated for impairment
21,205 
24,107 
21,205 
24,107 
 
Ending balance
460 
490 
460 
490 
 
Allowance for loan losses, Collectively Evaluated for impairment
$ 460 
$ 490 
$ 460 
$ 490 
 
Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Dec. 31, 2013
Goodwill And Other Intangible Assets [Abstract]
 
 
 
 
 
Goodwill
$ 48,500,000 
 
$ 48,500,000 
 
$ 48,500,000 
Core deposits intangible amortization expense
$ 87,000 
$ 98,000 
$ 176,000 
$ 199,000 
 
Goodwill And Other Intangible Assets (Other Intangible Assets) (Details) (Core Deposits [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Core Deposits [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross carrying amount
$ 2,042 
$ 2,042 
Accumulated amortization
(752)
(576)
Net carrying value
$ 1,290 
$ 1,466 
Goodwill And Other Intangible Assets (Estimated Core Deposit Intangible Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Goodwill And Other Intangible Assets [Abstract]
 
2014 (remainder of year)
$ 165 
2015
296 
2016
251 
2017
205 
2018
160 
2019
$ 115 
Shareholders' Equity (Details)
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Shareholders Equity [Line Items]
 
 
Treasury stock, beginning balance
332,242 
 
Shares issued, beginning balance
14,161,597 
 
Stock options exercised
7,125 
 
Treasury stock, ending balance
299,121 
 
Shares issued, ending balance
14,161,597 
 
Common Stock [Member]
 
 
Shareholders Equity [Line Items]
 
 
Shares outstanding, beginning balance
13,829,355 
13,787,709 
Restricted stock awards issued
43,242 
42,035 
Restricted stock awards forfeited
(8,144)
(18,977)
Stock options exercised
7,125 
3,300 
Treasury stock purchases
(9,102)
(11,349)
Directors' retainer
 
5,672 
Shares outstanding, ending balance
13,862,476 
13,808,390 
Treasury Stock [Member]
 
 
Shareholders Equity [Line Items]
 
 
Treasury stock, beginning balance
332,242 
373,888 
Restricted stock awards issued
(43,242)
(42,035)
Restricted stock awards forfeited
8,144 
18,977 
Stock options exercised
(7,125)
(3,300)
Treasury stock purchases
9,102 
11,349 
Directors' retainer
 
(5,672)
Treasury stock, ending balance
299,121 
353,207 
Issued [Member]
 
 
Shareholders Equity [Line Items]
 
 
Shares issued, beginning balance
14,161,597 
14,161,597 
Restricted stock awards issued
   
   
Restricted stock awards forfeited
   
   
Stock options exercised
   
   
Treasury stock purchases
   
   
Directors' retainer
 
   
Shares issued, ending balance
14,161,597 
14,161,597 
Accumulated Other Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Abstract]
 
 
 
 
Change in unrealized gain/loss during the period, Pre-tax Amount
 
 
$ 12,168 
$ (26,571)
Reclassification adjustment for net gains included in net income, Pre-tax Amount
 
 
(1,521)1
(1,224)
Total securities available for sale and transferred securities, Pre-tax Amount
 
 
10,647 
(27,795)
Prior service credit, Pre-tax Amount
 
 
(24)
(24)
Net actuarial losses, Pre-tax Amount
 
 
88 
682 
Total pension and post-retirement obligations, Pre-tax Amount
 
 
64 
658 
Other comprehensive income (loss), Pre-tax Amount
 
 
10,711 
(27,137)
Change in unrealized gain/loss during the period, Tax Effect
 
 
4,821 
(10,525)
Reclassification adjustment for net gains included in net income, Tax Effect
 
 
(602)1
(485)
Total securities available for sale and transferred securities, Tax Effect
 
 
4,219 
(11,010)
Prior service credit, Tax Effect
 
 
(9)
(9)
Net actuarial losses, Tax Effect
 
 
34 
269 
Total pension and post-retirement obligations, Tax Effect
 
 
25 
260 
Other comprehensive income (loss), Tax Effect
 
 
4,244 
(10,750)
Change in unrealized gain/loss during the period, Net-of-tax Amount
 
 
7,347 
(16,046)
Reclassification adjustment for net gains included in net income, Net-of-tax Amount
 
 
(919)1
(739)
Total securities available for sale and transferred securities, Net-of-tax Amount
2,684 
(14,470)
6,428 
(16,785)
Prrior service credit, Net-of-tax Amount
 
 
(15)
(15)
Net actuarial losses, Net-of-tax Amount
 
 
54 
413 
Total pension and post-retirement obligations, Net-of-tax Amount
20 
199 
39 
398 
Other comprehensive income (loss), Net-of-tax Amount
 
 
$ 6,467 
$ (16,387)
Accumulated Other Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Balance at beginning of year
 
 
$ (10,187)
$ 3,253 
Other comprehensive (loss) income before reclassifications
 
 
7,347 
(16,046)
Amounts reclassified from accumulated other comprehensive income
 
 
(880)
(341)
Net current period other comprehensive (loss) income
2,704 
(14,271)
6,467 
(16,387)
Balance at end of period
(3,720)
(13,134)
(3,720)
(13,134)
Securities Available For Sale and Transferred Securities [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Balance at beginning of year
 
 
(5,337)
16,060 
Other comprehensive (loss) income before reclassifications
 
 
7,347 
(16,046)
Amounts reclassified from accumulated other comprehensive income
 
 
(919)
(739)
Net current period other comprehensive (loss) income
 
 
6,428 
(16,785)
Balance at end of period
1,091 
(725)
1,091 
(725)
Pension And Post-Retirement Items [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Balance at beginning of year
 
 
(4,850)
(12,807)
Amounts reclassified from accumulated other comprehensive income
 
 
39 
398 
Net current period other comprehensive (loss) income
 
 
39 
398 
Balance at end of period
$ (4,811)
$ (12,409)
$ (4,811)
$ (12,409)
Accumulated Other Comprehensive Income (Loss) (Amounts Reclassified Out Of Each Component Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Net gain on disposal of investment securities
$ 949 
$ 332 
$ 1,262 
$ 1,224 
Interest income
23,103 
22,524 
46,378 
45,411 
Total before tax
 
 
(1,521)1
(1,224)
Income tax expense
 
 
602 1
485 
Net of tax
 
 
(919)1
(739)
Prior service credit
 
 
(24)
(24)
Net actuarial losses
 
 
88 
682 
Total before tax
 
 
64 
658 
Income tax benefit
 
 
(25)
(260)
Total pension and post-retirement obligations, Net-of-tax Amount
20 
199 
39 
398 
Net income available to common shareholders
6,667 
6,483 
13,520 
12,264 
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Net income available to common shareholders
 
 
880 
341 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Realized Gain on Sale of Investment Securities [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Net gain on disposal of investment securities
 
 
1,262 
1,224 
Interest income
 
 
259 
 
Total before tax
 
 
1,521 
1,224 
Income tax expense
 
 
(602)
(485)
Net of tax
 
 
919 
739 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Pension And Post-Retirement Items [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Prior service credit
 
 
24 2
24 2
Net actuarial losses
 
 
(88)2
(682)2
Total before tax
 
 
(64)
(658)
Income tax benefit
 
 
25 
260 
Total pension and post-retirement obligations, Net-of-tax Amount
 
 
$ (39)
$ (398)
Share-Based Compensation Plans (Narrative) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Unrecognized compensation expense
$ 730 
 
Expected recognition expense period, weighted average period in years
2 years 4 months 24 days 
 
Aggregate intrinsic value
32 
7 
Total cash received as a result of option exercises
$ 132 
$ 59 
TSR Performance Requirement [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected term
2 years 10 months 13 days 
 
Risk free interest rate
0.62% 
 
Expected dividend yield
3.59% 
 
Expected stock price volatility
39.40% 
 
Restricted Stock Awards [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted shares of common stock awarded
43,242 
 
Weighted average market price of restricted stock on the date of grant
$ 18.76 
 
Restricted Stock Awards [Member] |
EPS Performance Requirement [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
EPS percentage of award, one year performance period
50.00% 
 
Restricted Stock Awards [Member] |
TSR Performance Requirement [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period
3 years 
 
TSR percentage of award, three year performance period
50.00% 
 
Management Stock Incentive Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted shares of common stock awarded
22,642 
 
Management Stock Incentive Plan [Member] |
Restricted Stock Awards [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted shares of common stock awarded
11,600 
 
Weighted average market price of restricted stock on the date of grant
$ 21.26 
 
Award vesting period
1 year 
 
Director Stock Incentive Plan [Member] |
Restricted Stock Awards [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted shares of common stock awarded
9,000 
 
Weighted average market price of restricted stock on the date of grant
$ 22.82 
 
Director Stock Incentive Plan [Member] |
Restricted Stock Awards [Member] |
Vested Immediately [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted shares of common stock awarded
4,500 
 
Director Stock Incentive Plan [Member] |
Restricted Stock Awards [Member] |
Vested After Completion of One-Year Service Requirement [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted shares of common stock awarded
4,500 
 
Minimum [Member] |
Restricted Stock Awards [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Award vesting period
2 years 
 
Share-Based Compensation Plans (Summary Of Restricted Stock Award Activity) (Details) (Restricted Stock Awards [Member], USD $)
6 Months Ended
Jun. 30, 2014
Restricted Stock Awards [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Outstanding at beginning of year, Number of Shares
65,040 
Granted, Number of Shares
43,242 
Vested, Number of Shares
(33,728)
Forfeited, number of shares
(8,144)
Outstanding at end of period, Number of Shares
66,410 
Outstanding at beginning of year, Weighted Average Market Price at Grant Date
$ 16.92 
Granted, Weighted Average Market Price at Grant Date
$ 18.76 
Vested, Weighted Average Market Price at Grant Date
$ 18.17 
Forfeited, Weighted Average Market Price at Grant Date
$ 19.77 
Outstanding at end of period, Weighted Average Market Price at Grant Date
$ 17.13 
Share-Based Compensation Plans (Summary Of Stock Option Activity) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Share-Based Compensation Plans [Abstract]
 
Outstanding at beginning of year, Number of Options
192,934 
Exercised, Number of Options
(7,125)
Expired, Number of Options
(23,436)
Outstanding and exercisable at end of period, Number of Options
162,373 
Outstanding at beginning of year, Weighted Average Exercise Price
$ 19.83 
Exercised, Weighted Average Exercise Price
$ 18.45 
Expired, Weighted Average Exercise Price
$ 23.64 
Outstanding and exercisable at end of period, Weighted Average Exercise Price
$ 19.35 
Outstanding and exercisable at end of period, Weighted Average Remaining Contractual Term
2 years 4 months 24 days 
Outstanding and exercisable at end of period, Aggregate Intrinsic Value
$ 661 
Share-Based Compensation Plans (Share-Based Compensation Expense Included In Consolidated Statements Of Income) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total share-based compensation expense
$ 202 
$ 103 
$ 305 
$ 205 
Salaries and Employee Benefits [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total share-based compensation expense
75 
(6)
156 
79 
Other Noninterest Expense [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total share-based compensation expense
$ 127 
$ 109 
$ 149 
$ 126 
Employee Benefit Plans (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Employee Benefit Plans [Abstract]
 
 
 
 
Service cost
$ 480 
$ 516 
$ 959 
$ 1,032 
Interest cost on projected benefit obligation
573 
505 
1,147 
1,010 
Expected return on plan assets
(1,030)
(921)
(2,059)
(1,842)
Amortization of prior service credit
(12)
(12)
(24)
(24)
Amortization of net actuarial losses
44 
341 
88 
682 
Net periodic pension expense
$ 55 
$ 429 
$ 111 
$ 858 
Commitments And Contingencies (Narrative) (Details) (USD $)
Jun. 30, 2014
Dec. 31, 2013
Commitments And Contingencies [Abstract]
 
 
Forward sales commitments
$ 393,000 
$ 0 
Commitments And Contingencies (Off-Balance Sheet Commitments) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Commitments To Extend Credit [Member]
 
 
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
 
 
Off-balance sheet commitments
$ 444,617 
$ 431,236 
Standby Letters Of Credit [Member]
 
 
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
 
 
Off-balance sheet commitments
$ 11,020 
$ 8,618 
Fair Value Measurements (Narrative) (Details) (USD $)
Jun. 30, 2014
Jun. 30, 2013
Fair Value Measurements [Abstract]
 
 
Level 1 to Level 2 transfers, assets amount
$ 0 
$ 0 
Level 2 to Level 1 transfers, assets amount
0 
0 
Level 1 to Level 2 transfers, liabilities amount
0 
0 
Level 2 to Level 1 transfers, liabilities amount
0 
0 
Liabilities measured at fair value on recurring basis
0 
0 
Liabilities measured at fair value on nonrecurring basis
0 
0 
Assets measured at fair value on recurring basis using significant unobservable inputs
$ 0 
 
Fair Value Measurements (Assets Measured At Fair Value On A Recurring And Non-Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
$ 601,903 
$ 609,400 
Collateral Dependent Impaired Loans [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
2,075 1
 
Loan Servicing Rights [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
1,446 
 
Other Real Estate Owned [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
554 1
 
Measured On A Recurring Basis [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
601,903 
609,400 
Measured On A Recurring Basis [Member] |
U.S. Government Agencies And Government Sponsored Enterprises [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
135,117 
134,452 
Measured On A Recurring Basis [Member] |
Mortgage-Backed Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
466,555 
474,549 
Measured On A Recurring Basis [Member] |
Asset-Backed Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
231 
399 
Measured On A Recurring Basis [Member] |
Level 1 Inputs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
   
   
Measured On A Recurring Basis [Member] |
Level 1 Inputs [Member] |
U.S. Government Agencies And Government Sponsored Enterprises [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
   
   
Measured On A Recurring Basis [Member] |
Level 1 Inputs [Member] |
Mortgage-Backed Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
   
   
Measured On A Recurring Basis [Member] |
Level 1 Inputs [Member] |
Asset-Backed Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
   
   
Measured On A Recurring Basis [Member] |
Level 2 Inputs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
601,903 
609,400 
Measured On A Recurring Basis [Member] |
Level 2 Inputs [Member] |
U.S. Government Agencies And Government Sponsored Enterprises [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
135,117 
134,452 
Measured On A Recurring Basis [Member] |
Level 2 Inputs [Member] |
Mortgage-Backed Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
466,555 
474,549 
Measured On A Recurring Basis [Member] |
Level 2 Inputs [Member] |
Asset-Backed Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Securities available for sale
231 
399 
Measured On A Nonrecurring Basis [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
4,276 
14,506 
Measured On A Nonrecurring Basis [Member] |
Loans Held For Sale [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
201 
3,381 
Measured On A Nonrecurring Basis [Member] |
Collateral Dependent Impaired Loans [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
2,075 
9,227 
Measured On A Nonrecurring Basis [Member] |
Loan Servicing Rights [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
1,446 
1,565 
Measured On A Nonrecurring Basis [Member] |
Other Real Estate Owned [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
554 
333 
Measured On A Nonrecurring Basis [Member] |
Level 1 Inputs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
   
   
Measured On A Nonrecurring Basis [Member] |
Level 1 Inputs [Member] |
Loans Held For Sale [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
   
   
Measured On A Nonrecurring Basis [Member] |
Level 1 Inputs [Member] |
Collateral Dependent Impaired Loans [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
   
   
Measured On A Nonrecurring Basis [Member] |
Level 1 Inputs [Member] |
Loan Servicing Rights [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
   
   
Measured On A Nonrecurring Basis [Member] |
Level 1 Inputs [Member] |
Other Real Estate Owned [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
   
   
Measured On A Nonrecurring Basis [Member] |
Level 2 Inputs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
201 
3,381 
Measured On A Nonrecurring Basis [Member] |
Level 2 Inputs [Member] |
Loans Held For Sale [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
201 
3,381 
Measured On A Nonrecurring Basis [Member] |
Level 3 Inputs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
4,075 
11,125 
Measured On A Nonrecurring Basis [Member] |
Level 3 Inputs [Member] |
Collateral Dependent Impaired Loans [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
2,075 
9,227 
Measured On A Nonrecurring Basis [Member] |
Level 3 Inputs [Member] |
Loan Servicing Rights [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
1,446 
1,565 
Measured On A Nonrecurring Basis [Member] |
Level 3 Inputs [Member] |
Other Real Estate Owned [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets at fair value
$ 554 
$ 333 
Fair Value Measurements (Additional Quantitative Information About Assets Measured At Fair Value On A Recurring And Non-Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Collateral Dependent Impaired Loans [Member]
 
Fair Value Inputs, Assets, Quantitative Information [Line Items]
 
Assets at fair value
$ 2,075 1
Discount rate
4.50% 2
Risk premium rate
11.00% 2
Loan Servicing Rights [Member]
 
Fair Value Inputs, Assets, Quantitative Information [Line Items]
 
Assets at fair value
1,446 
Discount rate
5.20% 2
Constant prepayment rate
12.40% 2
Other Real Estate Owned [Member]
 
Fair Value Inputs, Assets, Quantitative Information [Line Items]
 
Assets at fair value
$ 554 1
Minimum [Member] |
Collateral Dependent Impaired Loans [Member]
 
Fair Value Inputs, Assets, Quantitative Information [Line Items]
 
Appraisal adjustments
25.00% 3
Minimum [Member] |
Other Real Estate Owned [Member]
 
Fair Value Inputs, Assets, Quantitative Information [Line Items]
 
Appraisal adjustments
27.00% 3
Maximum [Member] |
Collateral Dependent Impaired Loans [Member]
 
Fair Value Inputs, Assets, Quantitative Information [Line Items]
 
Appraisal adjustments
100.00% 3
Maximum [Member] |
Other Real Estate Owned [Member]
 
Fair Value Inputs, Assets, Quantitative Information [Line Items]
 
Appraisal adjustments
43.00% 3
Fair Value Measurements (Carrying Amount, Estimated Fair Value, And Placement In Fair Value Hierarchy Of Financial Instruments) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Securities available for sale
$ 601,903 
$ 609,400 
Securities held to maturity, fair value
266,640 
250,657 
Carrying Amount [Member] |
Level 1 Inputs [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Cash and cash equivalents
64,832 
59,692 
Accrued interest receivable
7,647 
8,150 
Non-maturity deposits
1,824,906 
1,724,133 
Short-term borrowings
254,683 
337,042 
Accrued interest payable
3,658 
3,407 
Carrying Amount [Member] |
Level 2 Inputs [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Securities available for sale
601,903 
609,400 
Securities held to maturity, fair value
262,057 
249,785 
Loans held for sale
201 
3,381 
Loans
1,867,423 
1,797,656 
FHLB and FRB stock
15,855 
19,663 
Time deposits
625,172 
595,923 
Carrying Amount [Member] |
Level 3 Inputs [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Loans
2,075 1
9,227 1
Estimated Fair Value [Member] |
Level 1 Inputs [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Cash and cash equivalents
64,832 
59,692 
Accrued interest receivable
7,647 
8,150 
Non-maturity deposits
1,824,906 
1,724,133 
Short-term borrowings
254,683 
337,042 
Accrued interest payable
3,658 
3,407 
Estimated Fair Value [Member] |
Level 2 Inputs [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Securities available for sale
601,903 
609,400 
Securities held to maturity, fair value
266,640 
250,657 
Loans held for sale
201 
3,381 
Loans
1,881,386 
1,802,407 
FHLB and FRB stock
15,855 
19,663 
Time deposits
626,578 
596,928 
Estimated Fair Value [Member] |
Level 3 Inputs [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Loans
$ 2,075 1
$ 9,227 1