REGULATORY MATTERS

12 Months Ended

Dec. 31, 2013

REGULATORY MATTERS [Abstract]

REGULATORY MATTERS

19. REGULATORY MATTERS

The Bank is subject to regulation, examination, and supervision by the New York State Department of Financial Services and the Federal Deposit Insurance Corporation ("FDIC"). The Bank is also governed by numerous federal and state laws and regulations, including the FDIC Improvement Act of 1991, which established five categories of capital adequacy ranging from well capitalized to critically undercapitalized.  The FDIC utilizes these categories of capital adequacy to determine various matters, including, but not limited to, prompt corrective action and deposit insurance premium assessment levels.  Capital levels and adequacy classifications may also be subject to qualitative judgments by the Bank's regulators regarding, among other factors, the components of capital and risk weighting.

Quantitative measures established to ensure capital adequacy require that banks maintain minimum amounts and ratios of leverage capital to average assets, and of Tier 1 and total risk-based capital to risk-weighted assets (as such

measures are defined in the regulations). At December 31, 2013 and 2012, the Bank exceeded all minimum capital adequacy requirements to which it was subject.

As of December 31, 2013 and 2012, the Bank satisfied all criteria necessary to be categorized as "well capitalized" under the regulatory framework for prompt corrective action.  To be categorized as "well capitalized," the Bank was required to maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the following tables:

	Actual					For Capital Adequacy Purposes					To Be Categorized as "Well Capitalized"
As of December 31, 2013	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tangible capital	$	376,717		9.52	%	$	158,298		4.00	%	$	197,872		5.00	%
Leverage capital		376,717		9.52			158,298		4.00			197,872		5.00
Tier I risk-based capital (to risk weighted assets)		376,717		12.64			119,169		4.00			178,753		6.00
Total risk-based capital (to risk weighted assets)		397,935		13.36	%		238,338		8.00	%		297,922		10.00	%

	Actual					For Capital Adequacy Purposes					To Be Categorized as "Well Capitalized"
As of December 31, 2012	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tangible capital	$	383,042		9.98	%	$	153,493		4.00	%	$	191,866		5.00	%
Leverage capital		383,042		9.98			153,493		4.00			191,866		5.00
Tier I risk-based capital (to risk weighted assets)		383,042		12.98			114,191		4.00			171,286		6.00
Total risk-based capital (to risk weighted assets)		405,077		13.72	%		228,232		8.00	%		285,477		10.00	%

The following is a reconciliation of stockholders' equity to regulatory capital for the Bank:

	At December 31, 2013									At December 31, 2012
	Tangible Capital			Leverage Capital			Total Risk-Based Capital			Tangible Capital			Leverage Capital			Total Risk-Based Capital
Stockholders' equity	$	427,209		$	427,209		$	427,209		$	428,892		$	428,892		$	428,892
Non-allowable assets:
MSR		(63	)		(63	)		(63	)		(111	)		(111	)		(111	)
Accumulated other comprehensive loss		5,209			5,209			5,209			9,899			9,899			9,899
Goodwill		(55,638	)		(55,638	)		(55,638	)		(55,638	)		(55,638	)		(55,638	)
Tier 1 risk-based capital		376,717			376,717			376,717			383,042			383,042			383,042
General regulatory valuation allowance		-			-			21,218			-			-			22,035
Total (Tier 2) risk based capital		376,717			376,717			397,935			383,042			383,042			405,077
Minimum capital requirement		158,298			158,298			238,338			153,493			153,493			228,232
Regulatory capital excess	$	218,419		$	218,419		$	159,597		$	229,549		$	229,549		$	176,845