REGULATORY MATTERS

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013, the Bank exceeded all minimum capital adequacy requirements to which it was subject.

As of December 31, 2014 and 2013, 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, 2014	Amount	Ratio	Amount	Ratio	Amount	Ratio
Tangible capital	$406,910	9.20%	$176,998	4.0%	$221,247	5.00%
Leverage capital	406,910	9.20	176,998	4.0	221,247	5.00
Tier I risk-based capital (to risk weighted assets)	406,910	12.33	131,994	4.0	197,991	6.00
Total risk-based capital (to risk weighted assets)	425,428	12.89	263,988	8.0	329,985	10.00

	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	4.0%	$197,872	5.00%
Leverage capital	376,717	9.52	158,298	4.0	197,872	5.00
Tier I risk-based capital (to risk weighted assets)	376,717	12.64	119,169	4.0	178,753	6.00
Total risk-based capital (to risk weighted assets)	397,935	13.36	238,338	8.0	297,922	10.00

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

	At December 31, 2014			At December 31, 2013
	Tangible Capital	Leverage Capital	Total Risk-Based Capital	Tangible Capital	Leverage Capital	Total Risk-Based Capital
Stockholders' equity	$454,095	$454,095	$454,095	$427,209	$427,209	$427,209
Non-allowable assets:
MSR	(35)	(35)	(35)	(63)	(63)	(63)
Accumulated other comprehensive loss	8,488	8,488	8,488	5,209	5,209	5,209
Goodwill	(55,638)	(55,638)	(55,638)	(55,638)	(55,638)	(55,638)
Tier 1 risk-based capital	406,910	406,910	406,910	376,717	376,717	376,717
General regulatory valuation allowance	-	-	18,518	-	-	21,218
Total (Tier 2) risk based capital	406,910	406,910	425,428	376,717	376,717	397,935
Minimum capital requirement	176,998	176,998	263,988	158,298	158,298	238,338
Regulatory capital excess	$229,912	$229,912	$161,440	$218,419	$218,419	$159,597