REGULATORY MATTERS

12 Months Ended

Dec. 31, 2015

REGULATORY MATTERS [Abstract]

REGULATORY MATTERS

18.   REGULATORY MATTERS

The Bank is subject to regulation, examination, and supervision by the New York State Department of Financial Services and the FDIC. The Holding Company is subject to regulation, examination, and supervision by the Board of Governors of the Federal Reserve System.

The final rules implementing Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for the Company and Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019.  In accordance with the Basel III rules, the Holding Company and the Bank have elected to exclude all permissible components of accumulated other comprehensive income from computing regulatory capital at December 31, 2015.  Capital amounts and ratios for December 31, 2014 were calculated using Basel I rules.  Management believes, as of December 31, 2015, the Company and Bank met all capital requirements to which they were subject.

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 (although these items are not utilized to represent overall financial condition).  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. If adequately capitalized, regulatory approval is required to accept brokered deposits.  If undercapitalized, capital distributions and asset growth are limited, and capital restoration plans are required. As of December 31, 2015 and 2014, the Bank satisfied all criteria necessary to be categorized as "well capitalized" under the regulatory framework for prompt corrective action. There have been no conditions or events since December 31, 2015 that management believes have changed the "well capitalized" categorization.

Actual and required capital amounts and ratios as of December 31, 2015 are presented below :

	Actual					For Capital Adequacy Purposes(1)					To Be Categorized as "Well Capitalized"(1)
As of December 31, 2015	Amount		Ratio			Amount		Minimum Ratio			Amount			Minimum Ratio
Tier 1 Capital / % of average total assets
Bank	$	440,374		9.17	%	$	194,314		4.0	%	$	242,892			5.0	%
Consolidated Company		447,111		10.70			195,008		4.0			N/	A		N/	A
Common equity Tier 1 capital /     % of risk weighted assets
Bank		440,374		11.55			171,628		4.5			247,908			6.5
Consolidated Company		447,111		11.67			172,456		4.5			N/	A		N/	A
Tier 1 Capital / % of risk weighted assets
Bank		440,374		11.55			228,838		6.0			305,117			8.0
Consolidated Company		515,626		13.45			229,941		6.0			N/	A		N/	A
Total Capital / % of risk weighted assets
Bank		458,938		12.03			305,117		8.0			381,397			10.0
Consolidated Company		534,190		13.94			306,588		8.0			N/	A		N/	A

(1) In accordance with the Basel III rules.

Prior to the adoption of the Basel III rules on January 1, 2015, the consolidated Company was not required to maintain minimum capital ratios in order to be deemed either adequately or well capitalized.

Actual and required capital amounts and ratios for the Bank as of December 31, 2014 (in accordance with Basel I rules) are presented below:

	Actual					For Capital Adequacy Purposes					To Be Categorized as "Well Capitalized"
As of December 31, 2014	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tangible capital/ % of adjusted total assets	$	406,910		9.20	%	$	176,998		4.0	%	$	221,247		5.00	%
Tier 1 Capital / % of adjusted total assets		406,910		9.20			176,998		4.0			221,247		5.00
Tier 1 Capital / % of risk weighted assets		406,910		12.33			131,994		4.0			197,991		6.00
Total Capital / % of risk weighted assets		425,428		12.89			263,988		8.0			329,985		10.00