Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 01, 2014 | Jun. 30, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'SALISBURY BANCORP INC | ' | ' |
Entity Central Index Key | '0001060219 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $44,463,146 |
Entity Common Stock, Shares Outstanding | ' | 1,711,121 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Shareholders' Equity | ' | ' |
Accumulated other comprehensive income, net | $1,046 | $2,437 |
Total Shareholders' Equity | 72,790 | 71,997 |
Balance Sheets | ' | ' |
ASSETS | ' | ' |
Cash and due from banks | 5,926 | 9,545 |
Interest bearing demand deposits with other banks | 6,785 | 34,029 |
Total cash and cash equivalents | 12,711 | 43,574 |
Interest-bearing time deposits | 738 | ' |
Securities | ' | ' |
Available-for-sale at fair value | 94,491 | 126,287 |
Federal Home Loan Bank of Boston stock at cost | 5,340 | 5,747 |
Loans held-for-sale | 173 | 1,879 |
Loans receivable, net (allowance for loan losses: $4,683 and $4,360) | 438,178 | 388,758 |
Other real estate owned | 377 | 244 |
Bank premises and equipment, net | 11,611 | 11,520 |
Goodwill | 9,829 | 9,829 |
Intangible assets (net of accumulated amortization: $1,967 and $1,745) | 576 | 798 |
Accrued interest receivable | 1,760 | 1,818 |
Cash surrender value of life insurance policies | 7,529 | 7,295 |
Deferred taxes | 260 | ' |
Other assets | 3,536 | 3,064 |
Total Assets | 587,109 | 600,813 |
Deposits | ' | ' |
Demand (non-interest bearing) | 84,677 | 98,850 |
Demand (interest bearing) | 81,932 | 65,991 |
Money market | 120,550 | 128,501 |
Savings and other | 107,171 | 103,985 |
Certificates of deposit | 83,039 | 93,888 |
Total deposits | 477,369 | 491,215 |
Repurchase agreements | 2,554 | 1,784 |
Federal Home Loan Bank of Boston advances | 30,411 | 31,980 |
Capital lease liability | 425 | ' |
Deferred taxes | ' | 590 |
Accrued interest and other liabilities | 3,560 | 3,247 |
Total Liabilities | 514,319 | 528,816 |
Shareholders' Equity | ' | ' |
Preferred stock - $.01 per share par value Authorized: 25,000; Issued: 16,000 (Series B); Liquidation preference: $1,000 per share | 16,000 | 16,000 |
Common stock - $.10 per share par value Authorized: 3,000,000; Issued: 1,710,121 and 1,689,691 | 171 | 169 |
Paid-in capital | 13,668 | 13,158 |
Retained earnings | 42,240 | 40,233 |
Unearned Compensation - restricted stock awards | -335 | ' |
Accumulated other comprehensive income, net | 1,046 | 2,437 |
Total Liabilities and Shareholders' Equity | $587,109 | $600,813 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ' | ' |
Loans receivable, allowance for loan losses | $4,683 | $4,360 |
Intangible assets, net of accumulated amortization | $1,967 | $1,745 |
Shareholders' Equity | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, authorized | 25,000 | 25,000 |
Preferred stock, issued (Series B) | 16,000 | 16,000 |
Preferred stock, liquidation preference | $1,000 | $1,000 |
Common stock, par value | $0.10 | $0.10 |
Common stock, authorized | 3,000,000 | 3,000,000 |
Common stock, issued | 1,710,121 | 1,689,691 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Non-interest expense | ' | ' | ' |
Net income | $4,083 | $4,077 | $4,112 |
Statements of Income | ' | ' | ' |
Interest and dividend income | ' | ' | ' |
Interest and fees on loans | 17,978 | 18,054 | 18,666 |
Interest on debt securities | ' | ' | ' |
Taxable | 1,757 | 2,454 | 3,041 |
Tax exempt | 1,948 | 2,030 | 2,210 |
Other interest and dividends | 67 | 120 | 127 |
Total interest and dividend income | 21,750 | 22,658 | 24,044 |
Interest expense | ' | ' | ' |
Deposits | 1,813 | 2,414 | 3,165 |
Repurchase agreements | 6 | 23 | 63 |
Federal Home Loan Bank of Boston advances | 1,243 | 1,845 | 2,331 |
Total interest expense | 3,062 | 4,282 | 5,559 |
Net interest and dividend income | 18,688 | 18,376 | 18,485 |
Provision for loan losses | 1,066 | 1,070 | 1,440 |
Net interest and dividend income after provision for loan losses | 17,622 | 17,306 | 17,045 |
Non-interest income | ' | ' | ' |
Gains on securities, net | ' | 279 | 11 |
Trust and wealth advisory | 3,074 | 2,945 | 2,548 |
Service charges and fees | 2,298 | 2,189 | 2,090 |
Gains on sales of mortgage loans, net | 579 | 1,596 | 687 |
Mortgage servicing, net | 35 | -21 | 65 |
Other | 319 | 326 | 255 |
Total non-interest income | 6,305 | 7,314 | 5,656 |
Non-interest expense | ' | ' | ' |
Salaries | 7,467 | 7,149 | 6,970 |
Employee benefits | 2,804 | 2,912 | 2,493 |
Premises and equipment | 2,398 | 2,408 | 2,330 |
Data processing | 1,514 | 1,569 | 1,410 |
Professional fees | 1,524 | 1,212 | 1,099 |
Collections and OREO | 519 | 709 | 590 |
Litigation settlement | ' | 400 | ' |
FDIC insurance | 470 | 486 | 596 |
Marketing and community support | 393 | 356 | 343 |
Amortization of intangibles | 222 | 222 | 222 |
FHLBB advance prepayment fee | ' | 450 | ' |
Other | 1,624 | 1,681 | 1,586 |
Total non-interest expense | 18,935 | 19,554 | 17,639 |
Income before income taxes | 4,992 | 5,066 | 5,062 |
Income tax provision | 909 | 989 | 950 |
Net income | 4,083 | 4,077 | 4,112 |
Net income available to common shareholders | $3,922 | $3,861 | $3,588 |
Basic and diluted earnings per common share | $2.30 | $2.28 | $2.12 |
Common dividends per share | $1.12 | $1.12 | $1.12 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $4,083 | $4,077 | $4,112 |
Statements of Comprehensive Income | ' | ' | ' |
Net income | 4,083 | 4,077 | 4,112 |
Other comprehensive (loss) income | ' | ' | ' |
Net unrealized (losses) gains on securities available-for-sale | -3,743 | 2,632 | 5,973 |
Reclassification of net realized gains in net income | ' | -279 | -11 |
Unrealized (losses) gains on securities available-for-sale | -3,743 | 2,353 | 5,962 |
Income tax benefit (expense) | 1,273 | -800 | -2,027 |
Unrealized (losses) gains on securities available-for-sale, net of tax | -2,470 | 1,553 | 3,935 |
Change in unrecognized pension plan income | 1,635 | 2,407 | -1,319 |
Income tax (benefit) expense | -556 | -818 | 448 |
Pension plan income (loss), net of tax | 1,079 | 1,589 | -871 |
Other comprehensive (loss) income, net of tax | -1,391 | 3,142 | 3,064 |
Comprehensive income | $2,692 | $7,219 | $7,176 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Common Stock | Preferred Stock | Warrants | Paid-in capital | Retained earnings | Long Term Incentive Plan | Accumulated other comprehensive income (loss) | Total |
In Thousands, except Share data | ||||||||
Balance - Beginning at Dec. 31, 2010 | $168 | $8,738 | $112 | $13,200 | $36,567 | ' | ($3,769) | $55,016 |
Balance - Beginning, shares at Dec. 31, 2010 | 1,687,661 | ' | ' | ' | ' | ' | ' | ' |
Net income for year | ' | ' | ' | ' | 4,112 | ' | ' | 4,112 |
Other comprehensive income, net of tax | ' | ' | ' | ' | ' | ' | 3,064 | 3,064 |
Amortization (accretion) of preferred stock | ' | 78 | ' | ' | -78 | ' | ' | ' |
Issuance of Series B preferred stock | ' | 16,000 | ' | ' | ' | ' | ' | 16,000 |
Redemption of Series A preferred stock | ' | -8,816 | ' | ' | ' | ' | ' | -8,816 |
Repurchase of Common Stock Warrants | ' | ' | -112 | -93 | ' | ' | ' | -205 |
Common stock dividends declared | ' | ' | ' | ' | -1,891 | ' | ' | -1,891 |
Preferred stock dividends declared | ' | ' | ' | ' | -446 | ' | ' | -446 |
Issuance of common stock for director fees | 1 | ' | ' | 27 | ' | ' | ' | 28 |
Issuance of common stock for director fees, shares | 1,070 | ' | ' | ' | ' | ' | ' | ' |
Balance - Ending at Dec. 31, 2011 | 169 | 16,000 | ' | 13,134 | 38,264 | ' | -705 | 66,862 |
Balance - Ending, shares at Dec. 31, 2011 | 1,688,731 | ' | ' | ' | ' | ' | ' | ' |
Net income for year | ' | ' | ' | ' | 4,077 | ' | ' | 4,077 |
Other comprehensive income, net of tax | ' | ' | ' | ' | ' | ' | 3,142 | 3,142 |
Issuance of Series B preferred stock | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock dividends declared | ' | ' | ' | ' | -1,892 | ' | ' | -1,892 |
Preferred stock dividends declared | ' | ' | ' | ' | -216 | ' | ' | -216 |
Issuance of common stock for director fees | ' | ' | ' | 24 | ' | ' | ' | 24 |
Issuance of common stock for director fees, shares | 960 | ' | ' | ' | ' | ' | ' | ' |
Balance - Ending at Dec. 31, 2012 | 169 | 16,000 | ' | 13,158 | 40,223 | ' | 2,437 | 71,997 |
Balance - Ending, shares at Dec. 31, 2012 | 1,689,691 | ' | ' | ' | ' | ' | ' | ' |
Net income for year | ' | ' | ' | ' | 4,083 | ' | ' | 4,083 |
Other comprehensive income, net of tax | ' | ' | ' | ' | ' | ' | -1,391 | -1,391 |
Issuance of Series B preferred stock | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock dividends declared | ' | ' | ' | ' | -1,915 | ' | ' | -1,915 |
Preferred stock dividends declared | ' | ' | ' | ' | -161 | ' | ' | -161 |
Issuance of restricted common stock | 2 | ' | ' | 488 | ' | -490 | ' | ' |
Issuance of restricted common stock, shares | 19,600 | ' | ' | ' | ' | ' | ' | ' |
Forfeiture of restricted common stock | ' | ' | ' | -12 | ' | 12 | ' | ' |
Forfeiture of restricted common stock, shares | -500 | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation-restricted stock awards | ' | ' | ' | ' | ' | 143 | ' | 143 |
Issuance of common stock for director fees | ' | ' | ' | 34 | ' | ' | ' | 34 |
Issuance of common stock for director fees, shares | 1,330 | ' | ' | ' | ' | ' | ' | ' |
Balance - Ending at Dec. 31, 2013 | $171 | $16,000 | ' | $13,668 | $24,420 | ($335) | $1,046 | $72,790 |
Balance - Ending, shares at Dec. 31, 2013 | 1,710,121 | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities | ' | ' | ' |
Net income | $4,083 | $4,077 | $4,112 |
Financing Activities | ' | ' | ' |
Redemption of Series A preferred stock | ' | ' | 8,816 |
Statements of Cash Flows | ' | ' | ' |
Operating Activities | ' | ' | ' |
Net income | 4,083 | 4,077 | 4,112 |
(Accretion), amortization and depreciation | ' | ' | ' |
Securities | 365 | 611 | 369 |
Bank premises and equipment | 856 | 883 | 850 |
Core deposit intangible | 222 | 222 | 222 |
Mortgage servicing rights | 389 | 379 | 240 |
Fair value adjustment on loans | 32 | 33 | 42 |
(Gains) and losses | ' | ' | ' |
Sales and calls of securities available-for-sale, net | ' | -279 | -11 |
Gains on sales of loans, excluding capitalized servicing rights | -285 | -915 | -358 |
Other real estate owned | 133 | 123 | 231 |
Loss on sale/disposals of premises and equipment | 34 | ' | ' |
Provision for loan losses | 1,066 | 1,070 | 1,440 |
Proceeds from loans sold | 18,693 | 61,109 | 31,260 |
Loans originated for sale | -16,702 | -61,125 | -30,666 |
Increase in deferred loan origination fees and costs, net | -150 | -28 | -182 |
Mortgage servicing rights originated | -294 | -682 | -329 |
(Decrease) increase in mortgage servicing rights impairment reserve | -23 | 16 | 12 |
Decrease in interest receivable | 58 | 308 | 6 |
Deferred tax (benefit) expense | -134 | -199 | 130 |
Decrease in prepaid expenses | 706 | 207 | 576 |
Increase in cash surrender value of life insurance policies | -234 | -258 | -183 |
Decrease in income tax receivable | 311 | 242 | 147 |
(Increase) decrease in other assets | -637 | -26 | 41 |
Increase (decrease) in accrued expenses | 734 | 927 | -442 |
Decrease in interest payable | -55 | -75 | -164 |
Increase (decrease) in other liabilities | 346 | 473 | -587 |
Issuance of shares for directors' fee | 34 | 24 | 28 |
Stock based compensation - restricted stock awards | 143 | ' | ' |
Net cash provided by operating activities | 9,691 | 7,117 | 6,784 |
Investing Activities | ' | ' | ' |
Proceeds from maturities of interest-bearing time deposits with other banks | ' | ' | 5,000 |
Purchase of interest-bearing time deposit with other banks | -738 | ' | ' |
Redemption of Federal Home Loan Bank of Boston stock | 407 | 285 | ' |
Purchases of securities available-for-sale | ' | -6,288 | -45,831 |
Proceeds from sale of securities available-for-sale | ' | 2,771 | ' |
Proceeds from calls of securities available-for-sale | 3,800 | 12,625 | 27,565 |
Proceeds from maturities of securities available-for-sale | 23,888 | 22,420 | 15,498 |
Proceeds from maturities of securities held-to-maturity | ' | 50 | 6 |
Loan originations and principle collections, net | -52,088 | -18,888 | -22,556 |
Recoveries of loans previously charged-off | 31 | 100 | 82 |
Proceeds from sale of other real estate owned | 1,423 | 2,098 | 492 |
Purchase of life insurance policies | ' | ' | -3,000 |
Proceeds from sales/disposals of premises and equipment | ' | ' | 200 |
Capital expenditures | -556 | -380 | -821 |
Proceeds from sales of investment in real estate | ' | ' | 75 |
Net cash (utilized) provided by investing activities | -23,833 | 14,793 | -23,290 |
Financing Activities | ' | ' | ' |
(Decrease) increase in deposit transaction accounts, net | -2,997 | 29,724 | 62,367 |
Decrease in time deposits, net | -10,849 | -9,815 | -21,350 |
Increase (decrease) in securities sold under agreements to repurchase, net | 770 | -10,364 | -1,042 |
Principal payments on Federal Home Loan Bank of Boston advances | -1,569 | -22,635 | -18,197 |
Proceeds from issuance of Series B preferred stock | ' | ' | 16,000 |
Redemption of Series A preferred stock | ' | ' | -8,816 |
Redemption of common stock warrants | ' | ' | -205 |
Common stock dividends paid | -1,915 | -1,892 | -1,891 |
Series A and Series B preferred stock dividends paid | -161 | -240 | -382 |
Net cash (utilized) provided by financing activities | -16,721 | -15,222 | 26,484 |
Net (decrease) increase in cash and cash equivalents | -30,863 | 6,688 | 9,978 |
Cash and cash equivalents, beginning of year | 43,574 | 36,886 | 26,908 |
Cash and cash equivalents, end of year | 12,711 | 43,574 | 36,886 |
Cash paid during year | ' | ' | ' |
Interest | 3,117 | 4,357 | 5,723 |
Income taxes | 732 | 946 | 673 |
Non-cash transfers | ' | ' | ' |
From loans to other real estate owned | 1,689 | 1,047 | 3,057 |
From other real estate owned to loans | ' | -1,326 | 200 |
The Company recorded a capital lease asset and incurred a capital lease obligation in connection with the lease of a building | $425 | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Salisbury is the bank holding company for Salisbury Bank, a State chartered commercial bank. Salisbury's activity is currently limited to the holding of the Bank's outstanding capital stock and the Bank is Salisbury's only subsidiary and its primary investment. The Bank is a Connecticut chartered and Federal Deposit Insurance Corporation (the "FDIC") insured commercial bank headquartered in Lakeville, Connecticut. The Bank's principal business consists of attracting deposits from the public and using such deposits, with other funds, to make various types of loans and investments. The Bank conducts its business through eight full-service offices located in Litchfield, Berkshire and Dutchess Counties in Connecticut, Massachusetts and New York, respectively, and recently took steps to establish a new branch in Great Barrington, Massachusetts. The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles. The following is a summary of significant accounting policies: | |||
Principles of Consolidation | |||
The consolidated financial statements include those of Salisbury and its subsidiary after elimination of all inter-company accounts and transactions. | |||
Basis of Financial Statement Presentation | |||
The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. In preparing the financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of condition, and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses. In connection with the determination of the allowance for loan losses, management obtains independent appraisals for significant properties. | |||
Certain reclassifications have been made to the 2011 and 2012 financial statements to make them consistent with the 2013 presentation. | |||
Securities | |||
Securities that may be sold as part of Salisbury's asset/liability or liquidity management or in response to or in anticipation of changes in interest rates and resulting prepayment risk, or for other similar factors, are classified as available-for-sale and carried at their fair market value. Unrealized holding gains and losses on such securities are reported net of related taxes, if applicable, as a separate component of shareholders' equity. Securities that Salisbury has the ability and positive intent to hold to maturity are classified as held-to-maturity and carried at amortized cost. Realized gains and losses on the sales of all securities are reported in earnings and computed using the specific identification cost basis. Securities are reviewed regularly for other-than-temporary impairment (“OTTI”). Premiums and discounts are amortized or accreted utilizing the interest method over the life or call of the term of the investment security. For any debt security with a fair value less than its amortized cost basis, Salisbury will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, Salisbury will recognize a full impairment charge to earnings. For all other debt securities that are considered OTTI and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The OTTI related to all other factors will be recorded in other comprehensive income. Declines in marketable equity securities below their cost that are deemed other than temporary are reflected in earnings as realized losses. | |||
Federal Home Loan Bank of Boston Stock | |||
The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The FHLBB is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Bank currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. In 2008, the FHLBB announced to its members that it is focusing on preserving capital in response to ongoing market volatility including the extension of a moratorium on excess stock repurchases and in 2009 announced the suspension of its quarterly dividends. On February 22, 2011, the FHLBB declared a modest cash dividend payable to its members on March 2, 2011. The FHLBB continued to declare modest cash dividends through 2013. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Bank’s FHLBB stock as of December 31, 2013. Further deterioration of the FHLBB’s capital levels may require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock. | |||
Loans | |||
Loans receivable consist of loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off. Loans receivable are reported at their principal outstanding balance, net of unamortized deferred loan origination fees and costs. Interest income is accrued on the unpaid principal balance. Deferred loan origination fees and costs are amortized as an adjustment to yield over the lives of the related loans. | |||
Loans held-for-sale consist of residential mortgage loans that management has the intent to sell. Loans held-for-sale are valued at the lower of cost or market as determined by outstanding commitments from investors or current investor yield requirements calculated on the aggregate loan basis, net of deferred loan origination fees and costs. Changes in the carrying value, deferred loan origination fees and costs, and realized gains and losses on sales of loans held-for-sale are reported in earnings as gains and losses on sales of mortgage loans, net, when the proceeds are received from investors. | |||
The accrual of interest on loans, including troubled debt restructured loans, is generally discontinued when principal or interest is past due by 90 days or more, or earlier when, in the opinion of management, full collection of principal or interest is unlikely, except for loans that are well collateralized, in the process of collection and where full collection of principal and interest is assured. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current income. Income on such loans, including impaired loans, is then recognized only to the extent that cash is received and future collection of principal is probable. Loans, including troubled debt restructured loans, are restored to accrual status when principal and interest payments are brought current and future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan's contractual terms. | |||
Troubled debt restructured loans include those for which concessions such as reduction of interest rates, other than normal market rate adjustments, or deferral of principal or interest payments, extension of maturity dates, or reduction of principal balance or accrued interest, have been granted due to a borrower’s financial condition. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit Salisbury by increasing the ultimate probability of collection. | |||
Troubled debt restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on non-accrual status at the time of the troubled debt restructuring generally remain on non-accrual status for approximately six months before management considers such loans for return to accruing status. Accruing troubled debt restructured loans are generally placed into non-accrual status if and when the borrower fails to comply with the restructured terms. | |||
Allowance for Loan Losses | |||
The allowance for loan losses represents management’s estimate of the probable credit losses inherent in the loan portfolio as of the reporting date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by loan charge-offs. Loan charge-offs are recognized when management determines a loan or portion of a loan to be uncollectible. | |||
The determination of the adequacy of the allowance is based on management’s ongoing review of numerous factors, including the growth and composition of the loan portfolio, historical loss experience over an economic cycle, probable credit losses based upon internal and external portfolio reviews, credit risk concentrations, changes in lending policy, current economic conditions, analysis of current levels and asset quality, delinquency levels and trends, estimates of the current value of underlying collateral, the performance of individual loans in relation to contract terms, and other pertinent factors. | |||
While management believes that the allowance for loan losses is adequate, the allowance is an estimate, and ultimate losses may vary from management’s estimate. Future additions to the allowance may also be necessary based on changes in assumptions and economic conditions. In addition, various regulatory agencies periodically review the allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. | |||
Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. | |||
The allowance for loan losses is computed by segregating the portfolio into three components: (1) loans collectively evaluated for impairment: general loss allocation factors for non-impaired loans based on loan product, collateral type and abundance, loan risk rating, historical loss experience, delinquency factors and other similar economic indicators, (2) loans individually evaluated for impairment: individual loss allocations for loans deemed to be impaired based on discounted cash flows or collateral value, and (3) unallocated: general loss allocations for other environmental factors. | |||
Loans collectively evaluated for impairment | |||
This component of the allowance for loan losses is stratified by the following loan segments: residential real estate secured (residential 1-4 family and 5+ multifamily, construction of residential 1-4 family, and home equity credit), commercial real estate secured (commercial and construction of commercial), secured by land (farm and vacant land), commercial and industrial, municipal and consumer. Management’s general loss allocation factors are based on expected loss experience adjusted for historical loss experience and other qualitative factors, including levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in Salisbury’s policies or methodology pertaining to the general component of the allowance for loan losses during 2013. | |||
The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: | |||
Residential real estate - Salisbury generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. | |||
Commercial real estate - Loans in this segment are primarily income-producing properties throughout Salisbury’s market area. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates which, in turn, will have an effect on the credit quality in this segment. For commercial loans management annually obtains business and personal financial statements, tax returns, and, where applicable, rent rolls, and continually monitors the repayment of these loans. | |||
Construction loans - Loans in this segment are primarily residential construction loans which typically roll into a permanent residential mortgage loan when construction is completed, or commercial construction which consist primarily of owner occupied commercial construction projects. | |||
Commercial loans - Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, has an effect on the credit quality in this segment. | |||
Consumer loans - Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. | |||
Loans individually evaluated for impairment | |||
This component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for all portfolio loans except consumer loans, by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. | |||
A loan is considered impaired when, based on current information and events, it is probable that Salisbury will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |||
Salisbury periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired. | |||
Unallocated | |||
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. | |||
Other Real Estate Owned (“OREO”) | |||
Salisbury's loans collateralized by real estate and all other real estate owned (“OREO”) are located principally in northwestern Connecticut and nearby New York and Massachusetts towns, which constitute Salisbury's service area. Accordingly, the collectability of a substantial portion of the loan portfolio and OREO is particularly susceptible to changes in market conditions in Salisbury’s service area. While management uses available information to recognize losses on loans and OREO, future additions to the allowance or write-downs of OREO may be necessary based on changes in local economic conditions, particularly in Salisbury’s service area. In addition, various regulatory agencies, as an integral part of their examination process, periodically review Salisbury's allowance for loan losses and valuation of OREO. Such agencies may require Salisbury to recognize additions to the allowance or write-downs based on their judgments of information available to them at the time of their examination. | |||
OREO consists of properties acquired through foreclosure or a deed in lieu of foreclosure. These properties are carried at the lower of cost or fair value less estimated costs to sell. Any write-down from cost to estimated fair value required at the time of foreclosure is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in OREO expense. | |||
Income Taxes | |||
Deferred income taxes are provided for differences arising in the timing of income and expenses for financial reporting and for income tax purposes using the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is assured beyond a reasonable doubt. | |||
Bank Premises and Equipment | |||
Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the estimated useful lives of the improvements or the term of the related leases. | |||
Intangible Assets | |||
Intangible assets consist of core deposit intangibles and goodwill. Intangible assets equal the excess of the purchase price over the fair value of the tangible net assets acquired in acquisitions accounted for using the acquisition method of accounting. Salisbury’s assets at December 31, 2013, and 2012, include goodwill of $2,358,000 arising from the purchase of a branch office in 2001, $7,152,000 arising from the 2004 acquisition of Canaan National Bancorp, Inc. and $319,000 arising from the 2007 purchase of a branch office in New York State. See Note 7. | |||
On an annual basis management assesses intangible assets for impairment, and for the year ending December 31, 2013, concluded there was no impairment. If a permanent loss in value is indicated, an impairment charge to income will be recognized. | |||
Statement of Cash Flows | |||
For the purpose of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash and due from banks and interest-bearing demand deposits with other financial institutions. | |||
Computation of Earnings per Share | |||
Basic earnings per share are computed using the weighted-average common shares outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share except the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. See Note 21. | |||
Recent Accounting Pronouncements | |||
In December 2011, the Financial Accounting Standards Board (FASB) issued ASU 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” The objective of this ASU is to enhance current disclosures. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The amendments in this ASU are effective for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||
In October 2012, the FASB issued ASU 2012-06, “Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution.” The amendments in this update clarify the applicable guidance for subsequently measuring an indemnification asset recognized as a result of a government-assisted acquisition of a financial institution. The amendments in this update are effective for fiscal years, and interim periods within those years beginning on or after December 15, 2012. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this update do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. Early adoption is permitted. The required disclosures have been reflected in the accompanying footnotes to the consolidated financial statements. | |||
In February 2013, the FASB issued ASU 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date.” The objective of the amendments in this ASU is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). Examples of obligations within the scope of this ASU include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013; and should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU scope that exist at the beginning of an entity’s fiscal year of adoption. The Company anticipates that the adoption of this guidance will not have a material impact on its consolidated financial statements. | |||
In April 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.” The amendments in this ASU are being issued to clarify when an entity should apply the liquidation basis of accounting. The guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. Additionally, the amendments require disclosures about an entity’s plan for liquidation, the methods and significant assumptions used to measure assets and liabilities, the type and amount of costs and income accrued, and the expected duration of the liquidation process. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Company anticipates that the adoption of this guidance will not have an impact on its consolidated financial statements. | |||
In July 2013, the FASB issued ASU 2013-10, “Derivatives and Hedging (Topic 815) – Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” The amendments in this ASU permit the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to Treasury Obligations of the U.S. government (UST) and the London Interbank Offered Rate (LIBOR). The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate under Topic 815. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this ASU did not have an impact on the Company’s results of operations or financial position. | |||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this ASU provide guidance for the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments apply to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have an impact on the Company’s results of operations or financial position. | |||
In January 2014, the FASB issued ASU 2014-01, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.” The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow-through entities for tax purposes as follows: | |||
1 | For reporting entities that meet the conditions for and that elect to use the proportional amortization method to account for investments in qualified affordable housing projects, all amendments in this ASU apply. | ||
2 | For reporting entities that do not meet the conditions for or that do not elect the proportional amortization method, only the amendments in this ASU that are related to disclosures apply. | ||
The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). For those investments in qualified affordable housing projects not accounted for using the proportional amortization method, the investment should be accounted for as an equity method investment or a cost method investment in accordance with Subtopic 970-323. The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect that the adoption of this ASU will have an impact on the Company’s consolidated financial statements. | |||
In January 2014, the FASB issued ASU 2014-04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of the amendments in this ASU is to reduce diversity by clarifying 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. The amendments in this ASU clarify 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, the amendments require 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. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this ASU using either a modified retrospective transition method or a prospective transition method. The Company is reviewing this ASU to determine if there will be a material impact on its consolidated financial statements. |
SECURITIES
SECURITIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
SECURITIES | ' | ||||||||||||||||||||||||
NOTE 2 - SECURITIES | |||||||||||||||||||||||||
The composition of securities is as follows: | |||||||||||||||||||||||||
(in thousands) | Amortized | Gross un- | Gross un- | Fair value | |||||||||||||||||||||
cost (1) | realized gains | realized losses | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
U.S. Treasury notes | $ | 2,497 | $ | 160 | $ | — | $ | 2,657 | |||||||||||||||||
U.S. Government Agency notes | 2,507 | 83 | — | 2,590 | |||||||||||||||||||||
Municipal bonds | 41,775 | 782 | (2,120 | ) | 40,437 | ||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||
U.S. Government Agencies | 33,522 | 442 | (72 | ) | 33,892 | ||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
U.S. Government Agencies | 3,545 | 35 | — | 3,580 | |||||||||||||||||||||
Non-agency | 7,923 | 401 | (16 | ) | 8,308 | ||||||||||||||||||||
SBA bonds | 2,042 | 188 | — | 2,230 | |||||||||||||||||||||
Preferred Stock | 20 | 777 | — | 797 | |||||||||||||||||||||
Total securities available-for-sale | $ | 93,831 | $ | 2,868 | $ | (2,208 | ) | $ | 94,491 | ||||||||||||||||
Non-marketable securities | |||||||||||||||||||||||||
Federal Home Loan Bank of Boston stock | $ | 5,340 | $ | — | $ | — | $ | 5,340 | |||||||||||||||||
-1 | Net of other-than-temporary impairment write-downs recognized in earnings. | ||||||||||||||||||||||||
(in thousands) | Amortized | Gross un- | Gross un- | Fair value | |||||||||||||||||||||
cost (1) | realized gains | realized losses | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
U.S. Treasury notes | $ | 2,496 | $ | 237 | $ | — | $ | 2,733 | |||||||||||||||||
U.S. Government Agency notes | 7,515 | 211 | — | 7,726 | |||||||||||||||||||||
Municipal bonds | 45,395 | 2,138 | (168 | ) | 47,365 | ||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||
U.S. Government Agencies | 47,465 | 1,284 | (20 | ) | 48,729 | ||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
U.S. Government Agencies | 5,131 | 66 | — | 5,197 | |||||||||||||||||||||
Non-agency | 11,081 | 494 | (68 | ) | 11,507 | ||||||||||||||||||||
SBA bonds | 2,781 | 82 | — | 2,863 | |||||||||||||||||||||
Preferred Stock | 20 | 147 | — | 167 | |||||||||||||||||||||
Total securities available-for-sale | $ | 121,884 | $ | 4,659 | $ | (256 | ) | $ | 126,287 | ||||||||||||||||
Non-marketable securities | |||||||||||||||||||||||||
Federal Home Loan Bank of Boston stock | $ | 5,747 | $ | — | $ | — | $ | 5,747 | |||||||||||||||||
Sales of securities available-for-sale and gains realized are as follows: | |||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Proceeds | $ | — | $ | 2,771 | $ | — | |||||||||||||||||||
Gains realized | — | 267 | — | ||||||||||||||||||||||
Losses realized | — | — | — | ||||||||||||||||||||||
Net gains realized | — | 267 | — | ||||||||||||||||||||||
Income tax provision | — | 91 | — | ||||||||||||||||||||||
The following table summarizes, for all securities, including debt securities for which a portion of other-than-temporary impairment has been recognized in other comprehensive income, in an unrealized loss position, the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the dates presented: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | Value | losses | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Municipal bonds | $ | 19,714 | $ | 1,428 | $ | 2,323 | $ | 692 | $ | 22,037 | $ | 2,120 | |||||||||||||
Mortgage-backed securities | 15,096 | 20 | 2,132 | 52 | 17,228 | 72 | |||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 398 | 2 | 294 | 10 | 692 | 12 | |||||||||||||||||||
Total temporarily impaired securities | 35,208 | 1,450 | 4,749 | 754 | 39,957 | 2,204 | |||||||||||||||||||
Other-than-temporarily impaired securities | |||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 320 | 4 | — | — | 320 | 4 | |||||||||||||||||||
Total temporarily impaired and other-than- | |||||||||||||||||||||||||
temporarily impaired securities | $ | 35,528 | $ | 1,454 | $ | 4,749 | $ | 754 | $ | 40,277 | $ | 2,208 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Municipal bonds | $ | 839 | $ | 20 | $ | 2,360 | $ | 148 | $ | 3,199 | $ | 168 | |||||||||||||
Mortgage-backed securities | 3,021 | 19 | 44 | 1 | 3,065 | 20 | |||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 612 | 2 | 901 | 17 | 1,513 | 19 | |||||||||||||||||||
Total temporarily impaired securities | 4,472 | 41 | 3,305 | 166 | 7,777 | 207 | |||||||||||||||||||
Other-than-temporarily impaired securities | |||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 535 | 6 | 1,963 | 43 | 2,498 | 49 | |||||||||||||||||||
Total temporarily impaired and other-than- | |||||||||||||||||||||||||
temporarily impaired securities | $ | 5,007 | $ | 47 | $ | 5,268 | $ | 209 | $ | 10,275 | $ | 256 | |||||||||||||
Securities amortized cost; fair value and tax equivalent yield by maturity are as follows: | |||||||||||||||||||||||||
December 31, 2013 (dollars in thousands) | Amortized cost | Fair value | Yield(1) | ||||||||||||||||||||||
U.S. Treasury notes | After 1 year but within 5 years | $ | 2,497 | $ | 2,657 | 3 | % | ||||||||||||||||||
U.S. Government Agency notes | Within 1 year | — | — | — | |||||||||||||||||||||
After 15 years | 2,507 | 2,590 | 5.38 | ||||||||||||||||||||||
Total | 2,507 | 2,590 | 5.38 | ||||||||||||||||||||||
Municipal bonds | Within 1 year | 3,686 | 3,935 | 6.9 | |||||||||||||||||||||
After 1 year but within 5 years | 4,095 | 4,486 | 6.84 | ||||||||||||||||||||||
After 5 years but within 10 years | 2,140 | 2,171 | 6.33 | ||||||||||||||||||||||
After 10 years but within 15 years | 1,832 | 1,826 | 6.25 | ||||||||||||||||||||||
After 15 years | 30,022 | 28,019 | 6.6 | ||||||||||||||||||||||
Total | 41,775 | 40,437 | 6.62 | ||||||||||||||||||||||
Mortgage-backed securities | U.S. Government Agency | 33,522 | 33,892 | 3.47 | |||||||||||||||||||||
Collateralized mortgage obligations | U.S. Government Agency | 3,545 | 3,580 | 1.19 | |||||||||||||||||||||
Non-agency | 7,923 | 8,308 | 4.51 | ||||||||||||||||||||||
SBA bonds | 2,042 | 2,230 | 2.57 | ||||||||||||||||||||||
Preferred Stock | 20 | 797 | 3.58 | ||||||||||||||||||||||
Securities available-for-sale | $ | 93,831 | $ | 94,491 | 4.89 | ||||||||||||||||||||
(1) Yield is based on amortized cost. | |||||||||||||||||||||||||
Salisbury evaluates securities for OTTI where the fair value of a security is less than its amortized cost basis at the balance sheet date. As part of this process, Salisbury considers whether it has the intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions are met, Salisbury recognizes an OTTI charge to earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. For securities that meet neither of these conditions, an analysis is performed to determine if any of these securities are at risk for OTTI. | |||||||||||||||||||||||||
The following summarizes, by security type, the basis for evaluating if the applicable securities were OTTI at December 31, 2013. | |||||||||||||||||||||||||
U.S Government Agency notes, U.S. Government Agency mortgage-backed securities and U.S. Government Agency CMOs: The contractual cash flows are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, management does not consider these securities to be OTTI at December 31, 2013. | |||||||||||||||||||||||||
Municipal bonds: Contractual cash flows are performing as expected. Salisbury purchased substantially all of these securities during 2006-to-2008 as bank qualified, insured, AAA rated general obligation or revenue bonds. Salisbury’s portfolio is mostly comprised of tax-exempt general obligation bonds or public-purpose revenue bonds for schools, municipal offices, sewer infrastructure and fire houses, for small towns and municipalities across the United States. In the wake of the financial crisis, most monoline bond insurers had their ratings downgraded or withdrawn because of excessive exposure to insurance for collateralized debt obligations. Where appropriate Salisbury performs credit underwriting reviews of issuers, including some that have had their ratings withdrawn and are insured by insurers that have had their ratings withdrawn, to assess default risk. For all completed reviews, pass credit risk ratings have been assigned. Management expects to recover the entire amortized cost basis of these securities. It is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity. Management does not consider these securities to be OTTI at December 31, 2013. | |||||||||||||||||||||||||
Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at December 31, 2013, to assess whether any of the securities were OTTI. Salisbury uses first party provided cash flow forecasts for each security based on a variety of market driven assumptions and securitization terms, including prepayment speed, default or delinquency rate, and default severity for losses including interest, legal fees, property repairs, expenses and realtor fees, that, together with the loan amount are subtracted from collateral sales proceeds to determine severity. In 2009, Salisbury determined that five non-agency CMO securities reflected OTTI and recognized losses for deterioration in credit quality of $1,128,000. Salisbury judged the four remaining securities not to have additional OTTI and all other CMO securities not to be OTTI as of December 31, 2013. It is possible that future loss assumptions could change necessitating Salisbury to recognize future OTTI for further deterioration in credit quality. Salisbury evaluates these securities for strategic fit and depending upon such factor could reduce its position in these securities, although it has no present intention to do so, and it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis. | |||||||||||||||||||||||||
Securities for which an OTTI has been recognized are as follows: | |||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Non-Agency CMOs | |||||||||||||||||||||||||
OTTI losses (unrealized and realized) | $ | — | $ | — | |||||||||||||||||||||
Less: unrealized OTTI recognized in other comprehensive (loss) income | — | — | |||||||||||||||||||||||
Net impairment losses recognized in earnings | $ | — | $ | — | |||||||||||||||||||||
The following table presents activity related to credit losses recognized into earnings on the non-agency CMOs held by Salisbury for which a portion of an OTTI charge was recognized in accumulated other comprehensive income: | |||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Balance, beginning of period | $ | 1,128 | $ | 1,128 | |||||||||||||||||||||
Credit component on debt securities in which OTTI was not previously recognized | — | — | |||||||||||||||||||||||
Balance, end of period | $ | 1,128 | $ | 1,128 | |||||||||||||||||||||
LOANS
LOANS | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||||||||||||||
NOTE 3 - LOANS | |||||||||||||||||||||||||||||||||||||||||
The composition of loans receivable and loans held-for-sale is as follows: | |||||||||||||||||||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 231,113 | $ | 198,552 | |||||||||||||||||||||||||||||||||||||
Residential 5+ multifamily | 4,848 | 3,889 | |||||||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 1,876 | 2,379 | |||||||||||||||||||||||||||||||||||||||
Home equity credit | 34,139 | 34,162 | |||||||||||||||||||||||||||||||||||||||
Residential real estate | 271,976 | 238,982 | |||||||||||||||||||||||||||||||||||||||
Commercial | 91,853 | 87,382 | |||||||||||||||||||||||||||||||||||||||
Construction of commercial | 10,948 | 5,823 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | 102,801 | 93,205 | |||||||||||||||||||||||||||||||||||||||
Farm land | 3,402 | 4,320 | |||||||||||||||||||||||||||||||||||||||
Vacant land | 9,067 | 9,926 | |||||||||||||||||||||||||||||||||||||||
Real estate secured | 387,246 | 346,433 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 46,292 | 38,094 | |||||||||||||||||||||||||||||||||||||||
Municipal | 4,252 | 3,378 | |||||||||||||||||||||||||||||||||||||||
Consumer | 3,889 | 4,181 | |||||||||||||||||||||||||||||||||||||||
Loans receivable, gross | 441,679 | 392,086 | |||||||||||||||||||||||||||||||||||||||
Deferred loan origination fees and costs, net | 1,182 | 1,032 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (4,683 | ) | (4,360 | ) | |||||||||||||||||||||||||||||||||||||
Loans receivable, net | $ | 438,178 | $ | 388,758 | |||||||||||||||||||||||||||||||||||||
Loans held-for-sale | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 173 | $ | 1,879 | |||||||||||||||||||||||||||||||||||||
Salisbury has entered into loan participation agreements with other banks and transferred a portion of its originated loans to the participating banks. Transferred amounts are accounted for as sales and excluded from Salisbury’s loans receivable. Salisbury and its participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. Salisbury services the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments (net of servicing fees) to participating lenders and disburses required escrow funds to relevant parties. | |||||||||||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, Salisbury serviced commercial loans for other banks under loan participation agreements totaling $24,222,000 and $1,847,000, respectively. Salisbury sold 12 participation loans with original balances totaling $22,632,000 and purchased a participation portion of one commercial line of credit totaling $73,000 in 2013. | |||||||||||||||||||||||||||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||||||||||||||||||||||||||
Salisbury's loans consist primarily of residential and commercial real estate loans located principally in northwestern Connecticut and nearby New York and Massachusetts towns, which constitute Salisbury's service area. Salisbury offers a broad range of loan and credit facilities to borrowers in its service area, including residential mortgage loans, commercial real estate loans, construction loans, working capital loans, equipment loans, and a variety of consumer loans, including home equity lines of credit, and installment and collateral loans. All residential and commercial mortgage loans are collateralized by first or second mortgages on real estate. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy as well as the health of the real estate economic sector in Salisbury’s market area. | |||||||||||||||||||||||||||||||||||||||||
Credit Quality | |||||||||||||||||||||||||||||||||||||||||
Salisbury uses credit risk ratings to determine its allowance for loan losses. Credit risk ratings categorize loans by common financial and structural characteristics that measure the credit strength of a borrower. The rating model has eight risk rating grades, with each grade corresponding to a progressively greater risk of default. Grades 1 through 4 are pass ratings and 5 through 8 are criticized as defined by the regulatory agencies. Risk ratings are assigned to differentiate risk within the portfolio and are reviewed on an ongoing basis and revised, if needed, to reflect changes in the borrowers' current financial position and outlook, risk profiles and the related collateral and structural positions. | |||||||||||||||||||||||||||||||||||||||||
Loans rated as "special mention" possess credit deficiencies or potential weaknesses deserving management’s close attention that if left uncorrected may result in deterioration of the repayment prospects for the loans at some future date. | |||||||||||||||||||||||||||||||||||||||||
Loans rated as "substandard" are loans where the Bank’s position is clearly not protected adequately by borrower current net worth or payment capacity. These loans have well defined weaknesses based on objective evidence and include loans where future losses to the Bank may result if deficiencies are not corrected, and loans where the primary source of repayment such as income is diminished and the Bank must rely on sale of collateral or other secondary sources of collection. | |||||||||||||||||||||||||||||||||||||||||
Loans rated "doubtful" have the same weaknesses as substandard loans with the added characteristic that the weakness makes collection or liquidation in full, given current facts, conditions, and values, to be highly improbable. The possibility of loss is high, but due to certain important and reasonably specific pending factors, which may work to strengthen the loan, its reclassification as an estimated loss is deferred until its exact status can be determined. | |||||||||||||||||||||||||||||||||||||||||
Loans classified as "loss" are considered uncollectible and of such little value that continuance as Bank assets is unwarranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this loan even though partial recovery may be made in the future. | |||||||||||||||||||||||||||||||||||||||||
Management actively reviews and tests its credit risk ratings against actual experience and engages an independent third-party to annually validate its assignment of credit risk ratings. In addition, the Bank’s loan portfolio is examined periodically by its regulatory agencies, the FDIC and CTDOB. | |||||||||||||||||||||||||||||||||||||||||
The composition of loans receivable by risk rating grade is as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Pass | Special mention | Substandard | Doubtful | Loss | Total | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 212,683 | $ | 12,338 | $ | 5,997 | $ | 95 | $ | — | $ | 231,113 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 2,674 | 1,199 | 975 | — | — | 4,848 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 1,876 | — | — | — | — | 1,876 | |||||||||||||||||||||||||||||||||||
Home equity credit | 31,444 | 1,355 | 1,340 | — | — | 34,139 | |||||||||||||||||||||||||||||||||||
Residential real estate | 248,677 | 14,892 | 8,312 | 95 | — | 271,976 | |||||||||||||||||||||||||||||||||||
Commercial | 67,554 | 16,044 | 8,255 | — | — | 91,853 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 10,257 | 102 | 589 | — | — | 10,948 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 77,811 | 16,146 | 8,844 | — | — | 102,801 | |||||||||||||||||||||||||||||||||||
Farm land | 847 | 1,421 | 1,134 | — | — | 3,402 | |||||||||||||||||||||||||||||||||||
Vacant land | 5,640 | 288 | 3,139 | — | — | 9,067 | |||||||||||||||||||||||||||||||||||
Real estate secured | 332,975 | 32,747 | 21,429 | 95 | — | 387,246 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 37,860 | 7,452 | 980 | — | — | 46,292 | |||||||||||||||||||||||||||||||||||
Municipal | 4,252 | — | — | — | — | 4,252 | |||||||||||||||||||||||||||||||||||
Consumer | 3,739 | 113 | 37 | — | — | 3,889 | |||||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 378,826 | $ | 40,312 | $ | 22,446 | $ | 95 | $ | — | $ | 441,679 | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 180,442 | $ | 12,473 | $ | 5,538 | $ | 99 | $ | — | $ | 198,552 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 2,872 | 773 | 244 | — | — | 3,889 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 1,570 | — | 809 | — | — | 2,379 | |||||||||||||||||||||||||||||||||||
Home equity credit | 30,981 | 1,848 | 1,333 | — | — | 34,162 | |||||||||||||||||||||||||||||||||||
Residential real estate | 215,865 | 15,094 | 7,924 | 99 | — | 238,982 | |||||||||||||||||||||||||||||||||||
Commercial | 64,817 | 13,299 | 9,266 | — | — | 87,382 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 5,055 | 297 | 471 | — | — | 5,823 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 69,872 | 13,596 | 9,737 | — | — | 93,205 | |||||||||||||||||||||||||||||||||||
Farm land | 2,799 | 341 | 1,180 | — | — | 4,320 | |||||||||||||||||||||||||||||||||||
Vacant land | 4,885 | 863 | 4,178 | — | — | 9,926 | |||||||||||||||||||||||||||||||||||
Real estate secured | 293,421 | 29,894 | 23,019 | 99 | — | 346,433 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 28,453 | 8,300 | 1,341 | — | — | 38,094 | |||||||||||||||||||||||||||||||||||
Municipal | 3,378 | — | — | — | — | 3,378 | |||||||||||||||||||||||||||||||||||
Consumer | 3,994 | 159 | 28 | — | — | 4,181 | |||||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 329,246 | $ | 38,353 | $ | 24,388 | $ | 99 | $ | — | $ | 392,086 | |||||||||||||||||||||||||||||
The composition of loans receivable by delinquency status is as follows: | |||||||||||||||||||||||||||||||||||||||||
Past due | |||||||||||||||||||||||||||||||||||||||||
180 days | 30 days | Accruing 90 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Current | 1-29 days | 30-59 days | 60-89 days | 90-179 days | and over | and over | days and over | Non- accrual | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 222,356 | $ | 3,853 | $ | 1,795 | $ | 2,622 | $ | 353 | $ | 134 | $ | 4,904 | $ | — | $ | 1,525 | |||||||||||||||||||||||
Residential 5+ multifamily | 4,749 | — | — | 99 | — | — | 99 | — | — | ||||||||||||||||||||||||||||||||
Residential 1-4 family construction | 1,876 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Home equity credit | 33,391 | 129 | 361 | 125 | — | 133 | 619 | — | 402 | ||||||||||||||||||||||||||||||||
Residential real estate | 262,372 | 3,982 | 2,156 | 2,846 | 353 | 267 | 5,622 | — | 1,927 | ||||||||||||||||||||||||||||||||
Commercial | 89,434 | 566 | 371 | 108 | 235 | 1,139 | 1,853 | — | 1,857 | ||||||||||||||||||||||||||||||||
Construction of commercial | 9,784 | 1,025 | — | 139 | — | — | 139 | — | — | ||||||||||||||||||||||||||||||||
Commercial real estate | 99,218 | 1,591 | 371 | 247 | 235 | 1,139 | 1,992 | — | 1,857 | ||||||||||||||||||||||||||||||||
Farm land | 2,995 | 23 | — | — | — | 384 | 384 | — | 384 | ||||||||||||||||||||||||||||||||
Vacant land | 6,058 | 139 | — | — | — | 2,870 | 2,870 | — | 2,870 | ||||||||||||||||||||||||||||||||
Real estate secured | 370,643 | 5,735 | 2,527 | 3,093 | 588 | 4,660 | 10,868 | — | 7,038 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 45,897 | 262 | 112 | — | — | 21 | 133 | — | 134 | ||||||||||||||||||||||||||||||||
Municipal | 4,252 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Consumer | 3,746 | 113 | 29 | 1 | — | — | 30 | — | — | ||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 424,538 | $ | 6,110 | $ | 2,668 | $ | 3,094 | $ | 588 | $ | 4,681 | $ | 11,031 | $ | — | $ | 7,172 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 190,488 | $ | 2,545 | $ | 3,578 | $ | 639 | $ | 1,185 | $ | 117 | $ | 5,519 | $ | — | $ | 3,024 | |||||||||||||||||||||||
Residential 5+ multifamily | 3,889 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Residential 1-4 family construction | 2,379 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Home equity credit | 32,540 | 890 | 113 | 396 | — | 223 | 732 | — | 442 | ||||||||||||||||||||||||||||||||
Residential real estate | 229,296 | 3,435 | 3,691 | 1,035 | 1,185 | 340 | 6,251 | — | 3,466 | ||||||||||||||||||||||||||||||||
Commercial | 83,477 | 864 | 1,104 | 566 | 58 | 1,313 | 3,041 | — | 2,214 | ||||||||||||||||||||||||||||||||
Construction of commercial | 5,659 | — | 164 | — | — | — | 164 | — | 21 | ||||||||||||||||||||||||||||||||
Commercial real estate | 89,136 | 864 | 1,268 | 566 | 58 | 1,313 | 3,205 | — | 2,235 | ||||||||||||||||||||||||||||||||
Farm land | 3,898 | 422 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Vacant land | 5,932 | — | — | 48 | 740 | 3,206 | 3,994 | — | 3,995 | ||||||||||||||||||||||||||||||||
Real estate secured | 328,262 | 4,721 | 4,959 | 1,649 | 1,983 | 4,859 | 13,450 | — | 9,696 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 37,618 | 351 | 26 | 99 | — | — | 125 | — | 164 | ||||||||||||||||||||||||||||||||
Municipal | 3,378 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Consumer | 4,034 | 108 | 25 | 14 | — | — | 39 | — | — | ||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 373,292 | $ | 5,180 | $ | 5,010 | $ | 1,762 | $ | 1,983 | $ | 4,859 | $ | 13,614 | $ | — | $ | 9,860 | |||||||||||||||||||||||
Interest on non-accrual loans that would have been recorded as additional interest income for the years ended December 31, 2013, 2012 and 2011 had the loans been current in accordance with their original terms totaled $522,000, $507,000 and $700,000, respectively. | |||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings occurring during the periods are as follows: | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Quantity | Pre-modification balance | Post-modification balance | Quantity | Pre-modification balance | Post-modification balance | |||||||||||||||||||||||||||||||||||
Residential real estate | 6 | $ | 2,434 | $ | 2,434 | 9 | $ | 2,002 | $ | 2,002 | |||||||||||||||||||||||||||||||
Land | 2 | 225 | 225 | — | — | — | |||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 4 | 1,871 | 1,871 | |||||||||||||||||||||||||||||||||||
Consumer | 1 | 22 | 22 | — | — | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | 91 | 91 | 4 | 528 | 528 | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | 10 | $ | 2,772 | $ | 2,772 | 17 | $ | 4,401 | $ | 4,401 | |||||||||||||||||||||||||||||||
Rate reduction and term extension | 5 | $ | 813 | $ | 813 | 3 | $ | 513 | $ | 513 | |||||||||||||||||||||||||||||||
Interest only pursuant to sale | 1 | 40 | 40 | — | — | — | |||||||||||||||||||||||||||||||||||
Debt consolidation and term extension | — | — | — | 4 | 2,276 | 2,276 | |||||||||||||||||||||||||||||||||||
Rate reduction | 2 | 1,070 | 1,070 | 3 | 727 | 727 | |||||||||||||||||||||||||||||||||||
Rate reduction interest only | 1 | 758 | 758 | 2 | 625 | 625 | |||||||||||||||||||||||||||||||||||
Debt consolidation, rate reduction and term extension, note bifurcation | — | — | — | 1 | 99 | 99 | |||||||||||||||||||||||||||||||||||
Rate reduction and debt consolidation | 1 | 91 | 91 | — | — | — | |||||||||||||||||||||||||||||||||||
Refinance | — | — | — | 1 | 80 | 80 | |||||||||||||||||||||||||||||||||||
Modification pursuant to bankruptcy | — | — | — | 1 | 34 | 34 | |||||||||||||||||||||||||||||||||||
Seasonal interest only concession | — | — | — | 1 | 26 | 26 | |||||||||||||||||||||||||||||||||||
Term extension | — | — | — | 1 | 21 | 21 | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | 10 | $ | 2,772 | $ | 2,772 | 17 | $ | 4,401 | $ | 4,401 | |||||||||||||||||||||||||||||||
Ten loans were restructured during 2013, of which one loan, totaling $64,000, was past due 30-59 days and one loan totaling $449,000 was past due 90-179 days at December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
Impaired loans | |||||||||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment (impaired loans) are loans for which Salisbury does not expect to collect all contractual principal and interest in accordance with the contractual terms of the loan. Impaired loans include all modified loans classified as troubled debt restructurings (TDRs) and loans on non-accrual status. The components of impaired loans are as follows: | |||||||||||||||||||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Non-accrual loans, excluding troubled debt restructured loans | $ | 5,419 | $ | 7,579 | |||||||||||||||||||||||||||||||||||||
Non-accrual troubled debt restructured loans | 1,753 | 2,280 | |||||||||||||||||||||||||||||||||||||||
Accruing troubled debt restructured loans | 8,500 | 6,703 | |||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 15,672 | $ | 16,562 | |||||||||||||||||||||||||||||||||||||
Commitments to lend additional amounts to impaired borrowers | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||||||||||||||
Changes in the allowance for loan losses are as follows: | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
Years ended | Beginning | Charge- | Reco- | Ending | Beginning | Charge- | Reco- | Ending | |||||||||||||||||||||||||||||||||
(in thousands) | balance | Provision | offs | veries | balance | balance | Provision | offs | veries | balance | |||||||||||||||||||||||||||||||
Residential | $ | 1,934 | $ | 275 | $ | (271 | ) | $ | — | $ | 1,938 | $ | 1,479 | $ | 688 | $ | (233 | ) | $ | — | $ | 1,934 | |||||||||||||||||||
Commercial | 1,059 | 528 | (208 | ) | 6 | 1,385 | 1,139 | (52 | ) | (64 | ) | 36 | 1,059 | ||||||||||||||||||||||||||||
Land | 300 | 147 | (221 | ) | — | 226 | 409 | 167 | (276 | ) | — | 300 | |||||||||||||||||||||||||||||
Real estate | 3,293 | 950 | (700 | ) | 6 | 3,549 | 3,027 | 803 | (573 | ) | 36 | 3,293 | |||||||||||||||||||||||||||||
Commercial & industrial | 499 | 65 | (4 | ) | 1 | 561 | 704 | (21 | ) | (222 | ) | 38 | 499 | ||||||||||||||||||||||||||||
Municipal | 36 | 7 | — | — | 43 | 24 | 12 | — | — | 36 | |||||||||||||||||||||||||||||||
Consumer | 92 | 59 | (70 | ) | 24 | 105 | 79 | 78 | (91 | ) | 26 | 92 | |||||||||||||||||||||||||||||
Unallocated | 440 | (15 | ) | — | — | 425 | 242 | 198 | — | — | 440 | ||||||||||||||||||||||||||||||
Totals | $ | 4,360 | $ | 1,066 | $ | (774 | ) | $ | 31 | $ | 4,683 | $ | 4,076 | $ | 1,070 | $ | (886 | ) | $ | 100 | $ | 4,360 | |||||||||||||||||||
31-Dec-11 | |||||||||||||||||||||||||||||||||||||||||
Years ended | Beginning | Charge- | Reco- | Ending | |||||||||||||||||||||||||||||||||||||
(in thousands) | balance | Provision | offs | veries | balance | ||||||||||||||||||||||||||||||||||||
Residential | $ | 1,504 | $ | 329 | $ | (357 | ) | $ | 3 | $ | 1,479 | ||||||||||||||||||||||||||||||
Commercial | 1,132 | 258 | (274 | ) | 23 | 1,139 | |||||||||||||||||||||||||||||||||||
Land | 392 | 371 | (354 | ) | — | 409 | |||||||||||||||||||||||||||||||||||
Real estate | 3,028 | 958 | (985 | ) | 26 | 3,027 | |||||||||||||||||||||||||||||||||||
Commercial & industrial | 540 | 315 | (180 | ) | 29 | 704 | |||||||||||||||||||||||||||||||||||
Municipal | 51 | (27 | ) | — | — | 24 | |||||||||||||||||||||||||||||||||||
Consumer | 164 | 89 | (201 | ) | 27 | 79 | |||||||||||||||||||||||||||||||||||
Unallocated | 137 | 105 | — | — | 242 | ||||||||||||||||||||||||||||||||||||
Totals | $ | 3,920 | $ | 1,440 | $ | (1,366 | ) | $ | 82 | $ | 4,076 | ||||||||||||||||||||||||||||||
The composition of loans receivable and the allowance for loan losses is as follows: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated | Individually evaluated | Total portfolio | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Loans | Allowance | Loans | Allowance | Loans | Allowance | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 225,419 | $ | 897 | $ | 5,694 | $ | 617 | $ | 231,113 | $ | 1,514 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 3,894 | 20 | 954 | — | 4,848 | 20 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 1,876 | 11 | — | — | 1,876 | 11 | |||||||||||||||||||||||||||||||||||
Home equity credit | 33,689 | 363 | 450 | 30 | 34,139 | 393 | |||||||||||||||||||||||||||||||||||
Residential real estate | 264,878 | 1,291 | 7,098 | 647 | 271,976 | 1,938 | |||||||||||||||||||||||||||||||||||
Commercial | 87,059 | 977 | 4,794 | 282 | 91,853 | 1,259 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 10,948 | 126 | — | — | 10,948 | 126 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 98,007 | 1,103 | 4,794 | 282 | 102,801 | 1,385 | |||||||||||||||||||||||||||||||||||
Farm land | 3,018 | 61 | 384 | — | 3,402 | 61 | |||||||||||||||||||||||||||||||||||
Vacant land | 5,972 | 64 | 3,095 | 101 | 9,067 | 165 | |||||||||||||||||||||||||||||||||||
Real estate secured | 371,875 | 2,519 | 15,371 | 1,030 | 387,246 | 3,549 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 45,584 | 519 | 708 | 42 | 46,292 | 561 | |||||||||||||||||||||||||||||||||||
Municipal | 4,252 | 43 | — | — | 4,252 | 43 | |||||||||||||||||||||||||||||||||||
Consumer | 3,710 | 36 | 179 | 69 | 3,889 | 105 | |||||||||||||||||||||||||||||||||||
Unallocated allowance | — | — | — | — | — | 425 | |||||||||||||||||||||||||||||||||||
Totals | $ | 425,421 | $ | 3,117 | $ | 16,258 | $ | 1,141 | $ | 441,679 | $ | 4,683 | |||||||||||||||||||||||||||||
Collectively evaluated | Individually evaluated | Total portfolio | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Loans | Allowance | Loans | Allowance | Loans | Allowance | |||||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 191,886 | $ | 743 | $ | 6,666 | $ | 652 | $ | 198,552 | $ | 1,395 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 2,913 | 22 | 976 | 50 | 3,889 | 72 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,379 | 10 | — | — | 2,379 | 10 | |||||||||||||||||||||||||||||||||||
Home equity credit | 33,697 | 365 | 465 | 92 | 34,162 | 457 | |||||||||||||||||||||||||||||||||||
Residential real estate | 230,875 | 1,140 | 8,107 | 794 | 238,982 | 1,934 | |||||||||||||||||||||||||||||||||||
Commercial | 81,635 | 931 | 5,747 | 64 | 87,382 | 995 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 5,802 | 64 | 21 | — | 5,823 | 64 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 87,437 | 995 | 5,768 | 64 | 93,205 | 1,059 | |||||||||||||||||||||||||||||||||||
Farm land | 4,320 | 66 | — | — | 4,320 | 66 | |||||||||||||||||||||||||||||||||||
Vacant land | 5,795 | 70 | 4,131 | 164 | 9,926 | 234 | |||||||||||||||||||||||||||||||||||
Real estate secured | 328,427 | 2,271 | 18,006 | 1,022 | 346,433 | 3,293 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 37,073 | 467 | 1,021 | 32 | 38,094 | 499 | |||||||||||||||||||||||||||||||||||
Municipal | 3,378 | 36 | — | — | 3,378 | 36 | |||||||||||||||||||||||||||||||||||
Consumer | 4,061 | 39 | 120 | 53 | 4,181 | 92 | |||||||||||||||||||||||||||||||||||
Unallocated allowance | — | — | — | — | — | 440 | |||||||||||||||||||||||||||||||||||
Totals | $ | 372,939 | $ | 2,813 | $ | 19,147 | $ | 1,107 | $ | 392,086 | $ | 4,360 | |||||||||||||||||||||||||||||
The credit quality segments of loans receivable and the allowance for loan losses are as follows: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated | Individually evaluated | Total portfolio | |||||||||||||||||||||||||||||||||||||||
December 31, 2013 (in thousands) | Loans | Allowance | Loans | Allowance | Loans | Allowance | |||||||||||||||||||||||||||||||||||
Performing loans | $ | 416,734 | $ | 2,835 | $ | 157 | $ | 69 | $ | 416,891 | $ | 2,904 | |||||||||||||||||||||||||||||
Potential problem loans | 8,687 | 282 | 429 | 19 | 9,116 | 301 | |||||||||||||||||||||||||||||||||||
Impaired loans | — | — | 15,672 | 1,053 | 15,672 | 1,053 | |||||||||||||||||||||||||||||||||||
Unallocated allowance | — | — | — | — | — | 425 | |||||||||||||||||||||||||||||||||||
Totals | $ | 425,421 | $ | 3,117 | $ | 16,258 | $ | 1,141 | $ | 441,679 | $ | 4,683 | |||||||||||||||||||||||||||||
A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the fair value of expected cash flows or collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment is as follows: | |||||||||||||||||||||||||||||||||||||||||
Impaired loans with specific allowance | Impaired loans with no specific allowance | ||||||||||||||||||||||||||||||||||||||||
Loan balance | Specific | Income | Loan balance | Income | |||||||||||||||||||||||||||||||||||||
(in thousands) | Book | Note | Average | allowance | recognized | Book | Note | Average | recognized | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 4,409 | $ | 4,516 | $ | 3,995 | $ | 598 | $ | 99 | $ | 2,073 | $ | 2,522 | $ | 2,285 | $ | 54 | |||||||||||||||||||||||
Home equity credit | 72 | 72 | 101 | 30 | 2 | 378 | 428 | 251 | 4 | ||||||||||||||||||||||||||||||||
Residential real estate | 4,481 | 4,588 | 4,096 | 628 | 101 | 2,451 | 2,950 | 2,536 | 58 | ||||||||||||||||||||||||||||||||
Commercial | 2,777 | 2,835 | 2,349 | 282 | 127 | 1,771 | 2,299 | 2,411 | 47 | ||||||||||||||||||||||||||||||||
Commercial construction | — | — | 3 | — | — | — | 20 | 8 | — | ||||||||||||||||||||||||||||||||
Farm land | — | — | — | — | — | 384 | 384 | 118 | — | ||||||||||||||||||||||||||||||||
Vacant land | 3,095 | 3,889 | 1,853 | 101 | — | — | 100 | 1,430 | — | ||||||||||||||||||||||||||||||||
Real estate secured | 10,353 | 11,312 | 8,301 | 1,011 | 228 | 4,606 | 5,753 | 6,503 | 105 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 119 | 154 | 233 | 42 | 1 | 573 | 975 | 595 | 36 | ||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | 22 | 22 | — | — | ||||||||||||||||||||||||||||||||
Totals | $ | 10,472 | $ | 11,466 | $ | 8,534 | $ | 1,053 | $ | 229 | $ | 5,201 | $ | 6,750 | $ | 7,098 | $ | 141 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 3,857 | $ | 3,925 | $ | 2,404 | $ | 578 | $ | 77 | $ | 2,263 | $ | 2,460 | $ | 1,601 | $ | 34 | |||||||||||||||||||||||
Home equity credit | 351 | 351 | 146 | 92 | — | 91 | 93 | 203 | — | ||||||||||||||||||||||||||||||||
Residential real estate | 4,208 | 4,276 | 2,550 | 670 | 77 | 2,354 | 2,553 | 1,804 | 34 | ||||||||||||||||||||||||||||||||
Commercial | 1,629 | 1,784 | 1,925 | 64 | 60 | 3,381 | 3,576 | 3,122 | 82 | ||||||||||||||||||||||||||||||||
Vacant land | 3,186 | 3,387 | 1,455 | 158 | — | 808 | 1,467 | 2,358 | 4 | ||||||||||||||||||||||||||||||||
Real estate secured | 9,023 | 9,447 | 5,930 | 892 | 137 | 6,543 | 7,596 | 7,284 | 120 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 335 | 368 | 833 | 32 | 13 | 661 | 1,063 | 854 | 31 | ||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Totals | $ | 9,358 | $ | 9,815 | $ | 6,763 | $ | 924 | $ | 150 | $ | 7,204 | $ | 8,659 | $ | 8,138 | $ | 151 |
MORTGAGE_SERVICING_RIGHTS
MORTGAGE SERVICING RIGHTS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||||||
MORTGAGE SERVICING RIGHTS | ' | ||||||||||||
NOTE 4 - MORTGAGE SERVICING RIGHTS | |||||||||||||
Loans serviced for others are not included in the Consolidated Balance Sheets. Balances of loans serviced for others and the fair value of mortgage servicing rights are as follows: | |||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Residential mortgage loans serviced for others | $ | 146,258 | $ | 145,934 | |||||||||
Fair value of mortgage servicing rights | 1,579 | 1,159 | |||||||||||
Changes in mortgage servicing rights are as follows: | |||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||
Loan Servicing Rights | |||||||||||||
Balance, beginning of period | $ | 1,075 | $ | 772 | $ | 683 | |||||||
Originated | 294 | 682 | 329 | ||||||||||
Amortization (1) | (389 | ) | (379 | ) | (240 | ) | |||||||
Balance, end of period | 980 | 1,075 | 772 | ||||||||||
Valuation Allowance | |||||||||||||
Balance, beginning of period | (38 | ) | (22 | ) | (10 | ) | |||||||
Decrease (Increase) in impairment reserve (1) | 23 | (16 | ) | (12 | ) | ||||||||
Balance, end of period | (15 | ) | (38 | ) | (22 | ) | |||||||
Loan servicing rights, net | $ | 965 | $ | 1,037 | $ | 750 | |||||||
-1 | Amortization expense and changes in the impairment reserve are recorded in loan servicing fee income. |
PLEDGED_ASSETS
PLEDGED ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Guarantees [Abstract] | ' | ||||||||
PLEDGED ASSETS | ' | ||||||||
NOTE 5 - PLEDGED ASSETS | |||||||||
The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available. | |||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||
Securities available-for-sale (at fair value) | $ | 57,623 | $ | 54,497 | |||||
Loans receivable | 130,574 | 106,457 | |||||||
Total pledged assets | $ | 188,197 | $ | 160,954 | |||||
At December 31, 2013 securities were pledged as follows: $46.4 million to secure public deposits, $11.1 million to secure repurchase agreements and $0.1 million to secure FHLBB and FRB advances. Loans receivable were pledged to secure FHLBB advances and credit facilities. |
BANK_PREMISES_AND_EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
BANK PREMISES AND EQUIPMENT | ' | ||||||||
NOTE 6 - BANK PREMISES AND EQUIPMENT | |||||||||
The components of premises and equipment are as follows: | |||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||
Land | $ | 2,137 | $ | 2,137 | |||||
Buildings and improvements | 9,655 | 9,658 | |||||||
Leasehold improvements | 706 | 706 | |||||||
Capital lease | 425 | — | |||||||
Furniture, fixtures, equipment and software | 5,713 | 5,392 | |||||||
Construction in progress, including land acquisition and development | 132 | 44 | |||||||
Total cost | 18,768 | 17,937 | |||||||
Accumulated depreciation and amortization | (7,157 | ) | (6,417 | ) | |||||
Bank premises and equipment, net | $ | 11,611 | $ | 11,520 |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||||||
NOTE 7 - GOODWILL AND INTANGIBLE ASSETS | |||||||||||||
Changes in the carrying values of goodwill and intangible assets were as follows: | |||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||
Goodwill (1) | |||||||||||||
Balance, beginning of period | $ | 9,829 | $ | 9,829 | $ | 9,829 | |||||||
Additions | — | — | — | ||||||||||
Impairment | — | — | — | ||||||||||
Balance, end of period | $ | 9,829 | $ | 9,829 | $ | 9,829 | |||||||
Core Deposit Intangibles | |||||||||||||
Cost, beginning of period | $ | 2,543 | $ | 2,543 | $ | 2,543 | |||||||
Additions | — | — | — | ||||||||||
Impairment | — | — | — | ||||||||||
Cost, end of period | 2,543 | 2,543 | 2,543 | ||||||||||
Amortization, beginning of period | (1,745 | ) | (1,523 | ) | (1,301 | ) | |||||||
Amortization | (222 | ) | (222 | ) | (222 | ) | |||||||
Amortization, end of period | (1,967 | ) | (1,745 | ) | (1,523 | ) | |||||||
Core deposit intangibles, net | $ | 576 | $ | 798 | $ | 1,020 | |||||||
-1 | Not subject to amortization. | ||||||||||||
In December 2009, Salisbury acquired the Canaan, Connecticut branch office of Webster Bank, National Association and assumed approximately $11.0 million in deposits and acquired approximately $2.5 million in loans, and a property located at 10 Granite Ave., Canaan, Connecticut that Salisbury sold in 2010. Salisbury assigned a core deposit intangible of $463,000 to the acquisition. | |||||||||||||
Salisbury evaluated its goodwill and intangible assets as of December 31, 2013 and 2012, and found no impairment. Estimated annual amortization expense of core deposit intangibles is as follows: | |||||||||||||
Years ended December 31, (in thousands) | CDI amortization | ||||||||||||
2014 | 202 | ||||||||||||
2015 | 154 | ||||||||||||
2016 | 154 | ||||||||||||
2017 | 66 | ||||||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Banking and Thrift [Abstract] | ' | ||||||||
DEPOSITS | ' | ||||||||
NOTE 8 - DEPOSITS | |||||||||
Scheduled maturities of time certificates of deposit were as follows: | |||||||||
Years ended December 31, (in thousands) | CD maturities | ||||||||
2014 | $ | 52,473 | |||||||
2015 | 13,677 | ||||||||
2016 | 8,311 | ||||||||
2017 | 3,336 | ||||||||
2018 | 5,242 | ||||||||
Total | $ | 83,039 | |||||||
The total amount and scheduled maturities of time certificates of deposit in denominations of $100,000 or more were as follows: | |||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||
Less than three months | $ | 6,279 | $ | 6,094 | |||||
Within three-to-six months | 5,834 | 4,416 | |||||||
Within six-to-twelve months | 7,450 | 9,166 | |||||||
Over one year | 14,804 | 15,458 | |||||||
Total | $ | 34,367 | $ | 35,134 |
SECURITIES_SOLD_UNDER_AGREEMEN
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Banking and Thrift [Abstract] | ' | ||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ' | ||||||||
NOTE 9 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |||||||||
Salisbury enters into overnight and short-term repurchase agreements with its customers. Securities sold under repurchase agreements are as follows: | |||||||||
Years ended December 31, (dollars in thousands) | 2013 | 2012 | |||||||
Repurchase agreements, ending balance | $ | 2,554 | $ | 1,784 | |||||
Repurchase agreements, average balance during period | 3,035 | 5,879 | |||||||
Book value of collateral | 11,020 | 9,942 | |||||||
Market value of collateral | 11,106 | 10,128 | |||||||
Weighted average rate during period | 0.19 | % | 0.39 | % | |||||
Weighted average maturity | 1 day | 1 day |
FEDERAL_HOME_LOAN_BANK_OF_BOST
FEDERAL HOME LOAN BANK OF BOSTON ADVANCES | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | ||||||||||||||||||||||||||
FEDERAL HOME LOAN BANK OF BOSTON ADVANCES | ' | ||||||||||||||||||||||||||
NOTE 10 – FEDERAL HOME LOAN BANK OF BOSTON ADVANCES | |||||||||||||||||||||||||||
Federal Home Loan Bank of Boston (“FHLBB”) advances are as follows: | |||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||
(dollars in thousands) | Total | Callable (1) | Rate (2) | Total | Callable (1) | Rate (2) | |||||||||||||||||||||
2013 | — | — | — | 1,569 | — | 3.89 | |||||||||||||||||||||
2014 | 1,598 | — | 3.87 | 1,598 | — | 3.87 | |||||||||||||||||||||
2015 | 791 | — | 3.88 | 791 | — | 3.88 | |||||||||||||||||||||
2016 | 15,022 | 15,000 | 4.08 | 15,022 | 15,000 | 4.08 | |||||||||||||||||||||
2017 | 6,000 | 6,000 | 4.05 | 6,000 | 6,000 | 4.05 | |||||||||||||||||||||
2018 | 7,000 | — | 3.74 | 7,000 | — | 3.74 | |||||||||||||||||||||
Total | $ | 30,411 | $ | 21,000 | 3.99 | % | $ | 31,980 | $ | 21,000 | 3.99 | % | |||||||||||||||
-1 | Represents the portion of advances that are callable. Callable advances are presented by scheduled maturity. Callable advances are callable quarterly or one time callable by the FHLBB. | ||||||||||||||||||||||||||
-2 | Weighted average rate based on scheduled maturity dates. | ||||||||||||||||||||||||||
In addition to outstanding FHLBB advances, Salisbury has additional available borrowing capacity, based on current capital stock levels, of $53.2 million and access to an unused FHLBB line of credit of $3.5 million at December 31, 2013. Advances from the FHLBB are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one-to-four family properties, certain unencumbered investment securities and other qualified assets. | |||||||||||||||||||||||||||
The following table sets forth certain information concerning short-term FHLBB advances: | |||||||||||||||||||||||||||
Years ended December 31, (dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||
Highest month-end balance during period | $ | — | $ | — | |||||||||||||||||||||||
Ending balance | — | — | |||||||||||||||||||||||||
Average balance during period | 52 | — | |||||||||||||||||||||||||
Weighted average rate during period | 0.29 | % | 0 | % | |||||||||||||||||||||||
Weighted average rate at end of period | 0 | 0 | |||||||||||||||||||||||||
NET_DEFERRED_TAX_ASSETS_AND_IN
NET DEFERRED TAX ASSETS AND INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
NET DEFERRED TAX ASSETS AND INCOME TAXES | ' | ||||||||||||
NOTE 11 – NET DEFERRED TAX ASSET AND INCOME TAXES | |||||||||||||
Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not. The components of the income tax provision were as follows: | |||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||
Federal | $ | 940 | $ | 1,076 | $ | 739 | |||||||
State | 103 | 112 | 81 | ||||||||||
Current provision | 1,043 | 1,188 | 820 | ||||||||||
Federal | 215 | (199 | ) | 130 | |||||||||
State | — | — | — | ||||||||||
Change in valuation allowance | (349 | ) | — | — | |||||||||
Deferred (benefit) expense | (134 | ) | (199 | ) | 130 | ||||||||
Income tax provision | $ | 909 | $ | 989 | $ | 950 | |||||||
The following is a reconciliation of the expected federal statutory tax to the income tax provision: | |||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Income tax at statutory federal tax rate | 34 | % | 34 | % | 34 | % | |||||||
State tax, net of federal tax benefit | 1.35 | 1.47 | 1.1 | ||||||||||
Tax exempt income and dividends received deduction | (18.18 | ) | (16.25 | ) | (17.50 | ) | |||||||
Expiration of capital loss carry forward | 7 | — | — | ||||||||||
Other | 1.04 | 0.27 | 1.2 | ||||||||||
Change in valuation allowance | (7.00 | ) | — | — | |||||||||
Effective income tax rates | 18.21 | % | 19.49 | % | 18.8 | % | |||||||
The components of Salisbury's net deferred tax assets are as follows: | |||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Allowance for loan losses | $ | 1,369 | $ | 1,259 | |||||||||
Interest on non-performing loans | 180 | 220 | |||||||||||
Accrued deferred compensation | 62 | 46 | |||||||||||
Post-retirement benefits | 16 | 15 | |||||||||||
Other real estate owned property write-down | 35 | 7 | |||||||||||
Capital loss carry forward | — | 349 | |||||||||||
Restricted stock awards | 48 | — | |||||||||||
Unrecognized pension expense | — | 242 | |||||||||||
Write-down of securities | 1,388 | 1,388 | |||||||||||
Alternative minimum tax | 528 | 591 | |||||||||||
Other | 4 | — | |||||||||||
Gross deferred tax assets | 3,630 | 4,117 | |||||||||||
Valuation allowance | — | (349 | ) | ||||||||||
Gross deferred tax assets, net | 3,630 | 3,768 | |||||||||||
Deferred loan costs, net | (402 | ) | (351 | ) | |||||||||
Goodwill and core deposit intangible asset | (746 | ) | (736 | ) | |||||||||
Accelerated depreciation | (1,114 | ) | (1,171 | ) | |||||||||
Mark-to-market purchase accounting adjustments | (6 | ) | (17 | ) | |||||||||
Mortgage servicing rights | (328 | ) | (353 | ) | |||||||||
Prepaid pension | (236 | ) | (234 | ) | |||||||||
Unrecognized pension benefit | (314 | ) | — | ||||||||||
Net unrealized holding gain on available-for-sale securities | (224 | ) | (1,496 | ) | |||||||||
Gross deferred tax liabilities | (3,370 | ) | (4,358 | ) | |||||||||
Net deferred tax asset (liability) | $ | 260 | $ | (590 | ) | ||||||||
Salisbury will only recognize a deferred tax asset when, based upon available evidence, realization is more likely than not. | |||||||||||||
At December 31, 2012, a valuation allowance was maintained for the entire amount of the state deferred tax assets as a result of Connecticut legislation that permits banks to shelter certain mortgage income from the Connecticut corporation business tax through the use of a special purpose entity called a Passive Investment Company (“PIC”). In accordance with this legislation, in 2004, Salisbury formed a PIC, SBT Mortgage Service Corporation. Salisbury does not expect to pay state income tax in the foreseeable future unless there is a change in Connecticut law. Accordingly, Salisbury did not expect to be able to utilize the net operating losses generated by the PIC and established a valuation allowance. The capital loss carry-forwards generated by the PIC expired during 2013 and, as a result, the previously established valuation allowance was reversed. | |||||||||||||
Salisbury’s policy is to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. As of December 31, 2013 and 2012, there were no material uncertain tax positions related to federal and state tax matters. Salisbury is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2010 through December 31, 2013. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||||||||||||||||
NOTE 12 – SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||
Capital Requirements | |||||||||||||||||||||||||
Salisbury and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional and discretionary actions by the regulators that, if undertaken, could have a direct material effect on Salisbury and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Salisbury and the Bank must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Salisbury and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require Salisbury and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Tier 1 capital (as defined) to average assets (as defined) and total and Tier 1 capital (as defined) to risk-weighted assets (as defined). Management believes, as of December 31, 2013, that Salisbury and the Bank meet all of their capital adequacy requirements. | |||||||||||||||||||||||||
The Bank was classified, as of its most recent notification, as "well capitalized". The Bank's actual regulatory capital position and minimum capital requirements as defined "To Be Well Capitalized Under Prompt Corrective Action Provisions" and "For Capital Adequacy Purposes" are as follows: | |||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | To be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | $ | 66,404 | 16.46 | % | $ | 32,280 | 8 | % | n/a | — | |||||||||||||||
Bank | 56,425 | 13.87 | 32,539 | 8 | $ | 40,674 | 10 | % | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | 61,340 | 15.2 | 16,140 | 4 | n/a | — | |||||||||||||||||||
Bank | 51,361 | 12.63 | 16,270 | 4 | 24,405 | 6 | |||||||||||||||||||
Tier 1 Capital (to average assets) | |||||||||||||||||||||||||
Salisbury | 61,340 | 10.65 | 23,035 | 4 | n/a | — | |||||||||||||||||||
Bank | 51,361 | 8.96 | 22,938 | 4 | 28,673 | 5 | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | $ | 63,391 | 16.63 | % | $ | 30,494 | 8 | % | n/a | — | |||||||||||||||
Bank | 53,132 | 13.77 | 30,866 | 8 | $ | 38,582 | 10 | % | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | 58,933 | 15.46 | 15,247 | 4 | n/a | — | |||||||||||||||||||
Bank | 48,674 | 12.62 | 15,432 | 4 | 23,149 | 6 | |||||||||||||||||||
Tier 1 Capital (to average assets) | |||||||||||||||||||||||||
Salisbury | 58,933 | 9.87 | 23,876 | 4 | n/a | — | |||||||||||||||||||
Bank | 48,674 | 8.15 | 23,876 | 4 | 29,845 | 5 | |||||||||||||||||||
Restrictions on Cash Dividends to Common Shareholders | |||||||||||||||||||||||||
Salisbury's ability to pay cash dividends is substantially dependent on the Bank's ability to pay cash dividends to Salisbury. There are certain restrictions on the payment of cash dividends and other payments by the Bank to Salisbury. Under Connecticut law, the Bank cannot declare a cash dividend except from net profits, defined as the remainder of all earnings from current operations. The total of all cash dividends declared by the Bank in any calendar year shall not, unless specifically approved by the Banking Commissioner, exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. | |||||||||||||||||||||||||
FRB Supervisory Letter SR 09-4, February 24, 2009, revised March 27, 2009, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the Federal Reserve and should eliminate, defer, or significantly reduce dividends if (1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (2) the prospective rate of earnings retention is not consistent with capital needs and overall current and prospective financial condition; or (3) the BHC will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. Moreover, a BHC should inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the BHC capital structure. | |||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||
In August 2011, Salisbury issued to the U.S. Secretary of the Treasury (the “Treasury”) $16 million of its Series B Preferred Stock under the Small Business Lending Fund (the “SBLF”) program. The SBLF program is a $30 billion fund established under the Small Business Jobs Act of 2010 to encourage lending to small businesses by providing Tier 1 capital to qualified community banks with assets of less than $10 billion. The Preferred Stock qualifies as Tier 1 capital for regulatory purposes and ranks senior to the Common Stock. | |||||||||||||||||||||||||
For the eleventh quarterly dividend payment through four and one-half years after its issuance, the dividend rate on the Series B Preferred Stock will be 1.0%. After four and one-half years from its issuance the dividend rate will be fixed at 9.0% per annum. The Series B Preferred Stock is non-voting, other than voting rights on matters that could adversely affect the Series B Preferred Stock. The Series B Preferred Stock is redeemable at any time at one hundred percent of the issue price plus any accrued and unpaid dividends. | |||||||||||||||||||||||||
The Series B Preferred Stock pays noncumulative dividends. The dividend rate on the Series B Preferred Stock for the initial ten quarterly dividend periods, commencing with the period ended September 30, 2011 and ending with the period ended December 31, 2013, is determined each quarter based on the increase in the Bank’s Qualified Small Business Lending over a baseline amount. The dividend rate for the quarterly period ended December 31, 2013 was 1.0%. For the eleventh quarterly dividend payment through four and one-half years after its issuance, the dividend rate on the Series B Preferred Stock will be 1.0%. Commencing with the second quarter 2016, four and one-half years from its issuance, the dividend rate will be fixed at 9.0% per annum. The Series B Preferred Stock is non-voting, other than voting rights on matters that could adversely affect the Series B Preferred Stock. The Series B Preferred Stock is redeemable at any time at one hundred percent of the issue price plus any accrued and unpaid dividends. | |||||||||||||||||||||||||
Simultaneously with the receipt of the SBLF capital, Salisbury repurchased for $8,816,000 all of its Series A Preferred Stock sold to the Treasury in 2009 under the Capital Purchase Program, a part of the Troubled Asset Relief Program of the Emergency Economic Stabilization Act of 2008, and made a payment for accrued dividends. The transaction resulted in net capital proceeds to Salisbury of $7,184,000, of which Salisbury invested $6,465,600, or 90%, in the Bank as Tier 1 Capital. | |||||||||||||||||||||||||
As part of the CPP, Salisbury had issued to the Treasury a 10-year Warrant to purchase 57,671 shares of Common Stock at an exercise price of $22.93 per share. The Warrant was repurchased for $205,000 on November 2, 2011 and simultaneously cancelled. |
PENSIONS_AND_OTHER_BENEFITS
PENSIONS AND OTHER BENEFITS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
PENSIONS AND OTHER BENEFITS | ' | ||||||||||||||||
NOTE 13 – PENSION AND OTHER BENEFITS | |||||||||||||||||
Salisbury has an insured noncontributory defined benefit retirement plan which was available to employees prior to December 31, 2012 based upon age and length of service. Effective December 31, 2012, the pension plan was frozen, by amending the plan to freeze retirement benefits at current levels and discontinue future benefit accruals. During 2012 Salisbury decided to complete its transition from providing retirement benefits under a defined benefit pension plan to a defined contribution 401(K) plan which is discussed below. | |||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Change in projected benefit obligation | |||||||||||||||||
Benefit obligation at beginning of year | $ | 6,039 | $ | 7,949 | $ | 6,639 | |||||||||||
Actuarial (gain)/loss | (860 | ) | 1,012 | 1,073 | |||||||||||||
Service cost | — | 404 | 343 | ||||||||||||||
Interest cost | 255 | 358 | 383 | ||||||||||||||
Curtailments and settlements | — | (3,586 | ) | — | |||||||||||||
Benefits paid | (184 | ) | (98 | ) | (489 | ) | |||||||||||
Benefit obligation at end of year | 5,250 | 6,039 | 7,949 | ||||||||||||||
Change in plan assets | |||||||||||||||||
Plan assets at estimated fair value at beginning of year | 6,019 | 6,164 | 5,668 | ||||||||||||||
Actual return on plan assets | 1,033 | 720 | 97 | ||||||||||||||
Contributions by employer | — | 129 | 888 | ||||||||||||||
Curtailments and settlements | — | (896 | ) | — | |||||||||||||
Benefits paid | (184 | ) | (98 | ) | (489 | ) | |||||||||||
Fair value of plan assets at end of year | 6,868 | 6,019 | 6,164 | ||||||||||||||
Funded status and recognized asset (liability) | |||||||||||||||||
included in other assets (liabilities) on the balance sheet | $ | 1,618 | $ | (20 | ) | $ | (1,785 | ) | |||||||||
The components of amounts recognized in accumulated other comprehensive income, before tax effect, are as follows: | |||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Net gain (loss) | $ | 924 | $ | (711 | ) | $ | (3,118 | ) | |||||||||
$ | 924 | $ | (711 | ) | $ | (3,118 | ) | ||||||||||
The accumulated benefit obligation for the plan was $5,250,000 and $6,039,000 at December 31, 2013 and 2012, respectively. The discount rate used in determining the actuarial present value of the projected benefit obligation was 5.10% for 2013, 4.35% for 2012 and 4.75% for 2011. The rate of increase in future compensation levels was based on the following graded table for 2013 and 2012: | |||||||||||||||||
Age | Rate | ||||||||||||||||
25 | 4.75 | % | |||||||||||||||
35 | 4.25 | ||||||||||||||||
45 | 3.75 | ||||||||||||||||
55 | 3.25 | ||||||||||||||||
65 | 3 | ||||||||||||||||
The components of net periodic cost are as follows: | |||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Service cost | $ | — | $ | 404 | $ | 343 | |||||||||||
Interest cost on benefit obligation | 255 | 358 | 383 | ||||||||||||||
Expected return on plan assets | (258 | ) | (455 | ) | (418 | ) | |||||||||||
Amortization of net loss | — | 123 | 75 | ||||||||||||||
Net periodic benefit cost | (3 | ) | 430 | 383 | |||||||||||||
Additional amount recognized due to settlement or curtailment | — | 341 | — | ||||||||||||||
(3 | ) | 771 | 383 | ||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: | |||||||||||||||||
Net actuarial (gain) loss | (1,635 | ) | (2,284 | ) | 1,394 | ||||||||||||
Amortization of net loss | — | (123 | ) | (75 | ) | ||||||||||||
Total recognized in other comprehensive (income) loss | (1,635 | ) | (2,407 | ) | 1,319 | ||||||||||||
Total recognized in net periodic cost and other comprehensive (income) loss | $ | (1,638 | ) | $ | (1,636 | ) | $ | 1,702 | |||||||||
The estimated net gain that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the year ended December 31, 2014 is $15,000. | |||||||||||||||||
The discount rate used to determine the net periodic benefit cost was 4.35% for 2013, 4.75% for 2012 and 5.75% for 2011; and the expected return on plan assets was 4.35% for 2013, and 7.50% for 2012 and 2011. | |||||||||||||||||
The graded table above was also used for the rate of compensation increase in determining the net periodic benefit cost in 2013 and 2012. | |||||||||||||||||
Pension expense is calculated based upon a number of actuarial assumptions, including an expected long-term rate of return on pension plan assets of 7.50% for 2012. The Bank has modified their long term rate of return assumption in recognition of the Plan freeze on accruals. With the plan being frozen, using short-term interest rates makes more sense than a long-term asset return approach. For the 2013 expense calculation, 4.35% was used as both the discount rate and long term rate of return. The Bank regularly reviews the asset allocations and periodically rebalances investments when considered appropriate. While all future forecasting contains some level of estimation error, the Bank believes that 4.35% falls within a range of reasonable long-term rate of return expectations for pension plan assets. The Bank will continue to evaluate the actuarial assumptions, including expected rate of return, at least annually, and will adjust as necessary. | |||||||||||||||||
Plan Assets | |||||||||||||||||
The pension plan investments are co-managed by Salisbury’s Trust and Wealth Advisory Services division and Bradley, Foster and Sargent, Inc. The investments in the plan are reviewed and approved by Salisbury’s Trust Investment Committee. The asset allocation of the plan is a balanced allocation. Debt securities are timed to mature when employees are due to retire and provide cash flow for annuity payouts. Debt securities are laddered for coupon and maturity. Equities are held in the plan to achieve a moderate growth allocation and to provide growth of the principal portion of the plan and to provide diversification. The Trust Investment Committee reviews the policies of the plan. The prudent investor rule and applicable ERISA regulations apply to the management of the funds and investment selections. | |||||||||||||||||
The fair values of the pension plan assets are as follows: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | Assets at fair | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | value | |||||||||||||
31-Dec-13 | |||||||||||||||||
Fixed Income | |||||||||||||||||
Corporate Debt | $ | — | $ | 637 | $ | — | $ | 637 | |||||||||
Preferred Stock | 57 | — | — | 57 | |||||||||||||
Equities | 4,115 | — | — | 4,115 | |||||||||||||
Mutual Funds | 1,719 | — | — | 1,719 | |||||||||||||
Money Fund | 340 | — | — | 340 | |||||||||||||
Totals | $ | 6,231 | $ | 637 | $ | — | $ | 6,868 | |||||||||
31-Dec-12 | |||||||||||||||||
Fixed Income | |||||||||||||||||
Corporate Debt | $ | — | $ | 714 | $ | — | $ | 714 | |||||||||
Preferred Stock | 63 | — | — | 63 | |||||||||||||
Equities | 4,605 | — | — | 4,605 | |||||||||||||
Mutual Funds | 268 | — | — | 268 | |||||||||||||
Money Fund | 369 | — | — | 369 | |||||||||||||
Totals | $ | 5,305 | $ | 714 | $ | — | $ | 6,019 | |||||||||
Salisbury’s pension plan assets are generally all classified within level 1 and level 2 of the fair value hierarchy (see Note 19 for a description of the fair value hierarchy) because they are valued using quoted market prices, pricing service, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. | |||||||||||||||||
There were no securities of Salisbury or related parties included in plan assets as of December 31, 2013 and 2012. Salisbury does not expect to make a contribution in 2014. Based on current data and assumptions, future expected benefit payments are as follows: | |||||||||||||||||
Future expected benefit payments (in thousands) | |||||||||||||||||
2014 | $ | 140 | |||||||||||||||
2015 | 382 | ||||||||||||||||
2016 | 91 | ||||||||||||||||
2017 | 532 | ||||||||||||||||
2018 | 87 | ||||||||||||||||
2019 to 2023 | 1,967 | ||||||||||||||||
401(k) Plan | |||||||||||||||||
Salisbury offers a 401(k) Plan to eligible employees. Under the Plan, eligible participants may contribute a percentage of their pay subject to IRS limitations. Salisbury may make discretionary contributions to the Plan. Effective December 31, 2012, and simultaneously with the freezing of the pension plan, the 401(k) Plan was amended to increase the safe harbor contribution for all qualifying employees to 4% from 3%. The Bank’s safe harbor contribution percentage is reviewed annually and, under provisions of the plan, is subject to change in the future. An additional discretionary match, of up to 6%, may also be made for all employees that meet the plans qualifying requirements for such a match. This discretionary matching percentage, if any, is also subject to review under the provisions of the plan. | |||||||||||||||||
Both the safe harbor and additional discretionary match, if any, vest immediately. | |||||||||||||||||
Salisbury’s 401(k) Plan contribution expense for 2013, 2012 and 2011 was $657,000, $292,000 and $288,000, respectively. | |||||||||||||||||
Employee Stock Ownership Plan (ESOP) | |||||||||||||||||
Salisbury offers an Employee Stock Ownership Plan (ESOP) to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan. Discretionary contributions vest in full upon six years and reflect the following schedule of qualified service: | |||||||||||||||||
20% after the second year, 20% per year thereafter, vesting at 100% after six full years of service. 2013 was the first year for this plan with benefit expenses amounting to $159,800. | |||||||||||||||||
Other Retirement Plans | |||||||||||||||||
Salisbury adopted ASC 715-60, “Compensation - Retirement Benefits - Defined Benefit Plans - Other Postretirement" and recognized a liability for Salisbury’s future postretirement benefit obligations under endorsement split-dollar life insurance arrangements. The total liability for the arrangements included in other liabilities was $528,000 and $479,000 at December 31, 2013, and 2012, respectively. Expense under this arrangement was $49,000 for 2013 and $45,000 for 2012. | |||||||||||||||||
The Bank entered into a Supplemental Retirement Plan Agreement with its former Chief Executive Officer that provides for supplemental post retirement payments for a ten year period as described in the agreement. The related liability was $121,000 and $136,000 at December 31, 2013, and 2012, respectively. The related expense amounted to $9,000, $12,000 and $11,000 for 2013, 2012 and 2011, respectively. | |||||||||||||||||
A Non-Qualified Deferred Compensation Plan (the "Plan") was effective January 1, 2013. This Plan was adopted by Salisbury Bank and Trust Company (the "Bank") for the benefit of certain key employees, ("Executive" or "Executives"), who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. | |||||||||||||||||
In 2013, the Bank awarded six (6) Executives with a discretionary contribution to this account for a total of $59,590. This was the first year for this benefit. Based on the Executive’s date of retirement, the vesting schedule ranges from 10% per year to 50% per year. |
DIRECTORS_STOCK_RETAINER_PLAN_
DIRECTORS STOCK RETAINER PLAN AND LONG TERM INCENTIVE PLAN | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
DIRECTORS STOCK RETAINER PLAN AND LONG TERM INCENTIVE PLAN | ' |
NOTE 14 - DIRECTORS STOCK RETAINER PLAN AND LONG TERM INCENTIVE PLAN | |
The 2001 Directors Stock Retainer Plan of Salisbury Bancorp, Inc. (“Directors Plan”) provided Salisbury’s non-employee directors with shares of restricted stock as a component of their compensation for services as directors. The maximum number of shares of stock that could be issued pursuant to the Directors Plan was 15,000. The first grant date under the Directors Plan preceded the 2002 annual meeting of Shareholders. Each director whose term of office begins with or continues after the date the Directors Plan was approved by the Shareholders was issued an annual stock retainer consisting of 120 shares of fully vested restricted common stock of Salisbury. In 2011 and 2010, 1,070 and 960 shares, respectively, were issued each year under the Directors Plan and the related compensation expense was $28,000 and $21,000, respectively. The Directors Plan terminated in 2011 and no more grants may be made under the Directors Plan. | |
The Board of Directors adopted the 2011 Long Term Incentive Plan (the “Plan”) on March 25, 2011, and the shareholders approved the Plan at the 2011 Annual Meeting. The Plan was amended on January 18, 2013. The purpose of the Plan is to assist Salisbury and the Bank in attracting, motivating, retaining and rewarding employees, officers and directors by enabling such persons to acquire or increase a proprietary interest in Salisbury in order to strengthen the mutuality of interests between such persons and our shareholders, and providing such persons with stock-based long-term performance incentives to expend their maximum efforts in the creation of shareholder value. | |
The terms of the Plan provide for grants of Directors Stock Retainer Awards, Stock Options, Stock Appreciation Rights (“SARs”), Restricted Stock, Restricted Stock Units, Performance Awards, Deferred Stock, Dividend Equivalents, and Stock or Other Stock-Based Awards that may be settled in shares of Common Stock, cash, or other property (collectively, “Awards”). | |
Under the Plan, the total number of shares of Common Stock reserved and available for issuance in the ten years following adoption of the Plan in connection with Awards under the Plan is 84,000 shares of Common Stock, which represented less than 5% of Salisbury’s outstanding shares of Common Stock at the time the Plan was adopted. Shares of Common Stock with respect to Awards previously granted under the Plan that are cancelled, terminate without being exercised, expire, are forfeited or lapse will again be available for issuance pursuant to Awards. Also, shares of Common Stock subject to Awards settled in cash and shares of Common Stock that are surrendered in payment of any Award or any tax withholding requirements will again be available for issuance pursuant to Awards. No more than 30,000 shares of Common Stock may be issued pursuant to Awards in any one calendar year. In addition, the Plan limits the total number of shares of Common Stock that may be awarded as Incentive Stock Options (“ISOs”) to 42,000 and the total number of shares of Common Stock that may be issued as Directors Stock Retainer Awards to 15,000. The Directors stock retainer awards were increased from 120 shares per year to 240 shares per year effective January 25, 2013. The 2013 shares were pro-rated at the rate of 120 shares for May 2012 – January 2013 (9 months at 10 shares per month) and at the rate of 240 shares for February 2013 – April 2013 (3 months at the rate of 20 shares per month). One director’s shares were pro-rated from when he joined the Board at the end of June 2012. | |
In 2013 and 2012, 1,330 and 960 shares were issued, respectively, and the related compensation expense was $34,000 and $24,000, respectively. The 2013 Amendment increased the number of shares to be issued to a director as an annual stock retainer to 240 shares. | |
The persons eligible to receive awards under the Plan are the officers, directors and employees of Salisbury and the Bank. The Plan is administered by the Human Resources and Compensation Committee (“Compensation Committee “) appointed by the Board. However, the Board may exercise any power or authority granted to the Compensation Committee. Subject to the terms of the Plan, the Compensation Committee or the Board is authorized to select eligible persons to receive Awards, determine the type and number of Awards to be granted and the number of shares of Common Stock to which Awards will relate, specify times at which Awards will be exercisable or settleable, including performance conditions that may be required as a condition thereof, set other terms and conditions of Awards, prescribe forms of Award agreements, interpret and specify rules and regulations relating to the Plan, and make all other determinations that may be necessary or advisable for the administration of the Plan. | |
The Compensation Committee or the Board is authorized to grant (i) stock options, including (a) ISOs which can result in potentially favorable tax treatment to the participant, and (b) non-qualified stock options, and (ii) SARs entitling the participant to receive the amount by which the fair market value of a share of Common Stock on the date of exercise exceeds the grant price of the SAR. The exercise price per share subject to an option and the grant price of a SAR are determined by the Compensation Committee or the Board, but shall not be less than the fair market value of a share of Common Stock on the date of grant. | |
The Compensation Committee or the Board is authorized, subject to limitations under applicable law, to grant to participants such other Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related to, shares of Common Stock, as deemed to be consistent with the purposes of the Plan. These could include shares of Common Stock awarded purely as a “bonus” and not subject to any restrictions or conditions, other rights convertible or exchangeable into shares of Common Stock and Awards valued by reference to book value of the Common Stock or the performance of Salisbury or the Bank. The Compensation Committee or the Board may determine the terms and conditions of such Awards. | |
Awards may be settled in the form of cash, shares of Common Stock, a combination of cash and shares of Common Stock or any other property, in the discretion of the Compensation Committee or the Board. | |
Awards granted under the Plan generally may not be pledged or otherwise encumbered and are not transferable except by will or by the laws of descent and distribution, or to a designated beneficiary upon the participant’s death. | |
Awards under the Plan are generally granted without a requirement that the participant pay consideration in the form of cash or property for the grant, as distinguished from the exercise, except to the extent required by law. | |
Generally, upon a Change in Control, if the surviving entity does not assume an Award, Options and SARs and other Awards in the nature of rights that may be exercised will become fully exercisable; all time-based vesting restrictions on outstanding Awards will lapse; and any payout opportunities attainable under performance-based Awards will be deemed to have been met if the Change in Control occurs during the first half of the performance period and if the Change in Control occurs during the second half of the performance period, actual performance against targets will be measured, and in either case, the payout will be prorated for the portion of the performance period that elapsed before the Change in Control. | |
Generally, upon a Change in Control, if the surviving entity assumes an Award or equitably converts or substitutes an Award and within 12 months after the transaction the participant’s employment is terminated without cause (as defined) or the participant resigns for good reason (as defined), Options and SARs and other Awards in the nature of rights that may be exercised will become fully exercisable; all time-based vesting restrictions on outstanding Awards will lapse; and any payout opportunities attainable under performance-based Awards will be deemed to have been met if the termination occurs during the first half of the performance period and if the termination occurs during the second half of the performance period, actual performance against targets will be measured, and in either case, the payout will be prorated for the portion of the performance period that elapsed before the termination. | |
Regardless of whether there has been an acceleration because of death, disability or a Change in Control, the Committee or the Board may in its sole discretion at any time determine that, upon the termination of service of a participant or the occurrence of a Change in Control, all or a portion of such participant’s Options, SARs and other Awards in the nature of rights that may be exercised will become fully or partially exercisable, that all or a part of the time-based vesting restrictions on all or a portion of the participant’s outstanding Awards will lapse, and/or that any performance-based criteria with respect to any Awards held by that participant will be deemed to be wholly or partially satisfied, in each case, as of such date as the Committee or the Board may, in its sole discretion, declare. | |
The Compensation Committee or the Board may amend, modify or terminate the Plan or the Compensation Committee’s authority to grant Awards without further shareholder approval, except shareholder approval must be obtained for any amendment that would (a) materially increase the number of shares of Common Stock available under the Plan; (b) expand the types of awards under the Plan; (c) materially expand the class of persons eligible to participate in the Plan; (d) materially expand the term of the Plan; or (e) be of a nature that would require shareholder approval pursuant to any law or regulation or under the rules of the NASDAQ Capital Market. | |
Unless earlier terminated by the Board, the Plan will terminate on the tenth anniversary of the effective date of the Plan (March 25, 2021) or, if the shareholders approve an amendment that increases the number of shares of Common Stock subject to the Plan, the tenth anniversary of such approval. The termination of the Plan on such date will not affect the validity of any Award outstanding on the date of termination, and any such Awards will continue to be governed by the applicable terms and conditions of the Plan. | |
The Plan provides that award agreements for any Awards that the Committee or the Board reasonably determines to constitute a “non-qualified deferred compensation Plan” subject to the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), will be construed in a manner consistent with the requirements of Section 409A and that the Committee or the Board may amend any Award agreement (and the provisions of the Plan) if and to the extent that the Committee or the Board determines that the amendment is necessary or appropriate to comply with the requirements of Section 409A of the Code. The Plan also provides that any such Award will be subject to certain additional requirements specified in the Plan if and to the extent required to comply with Section 409A of the Code. | |
Grants of Restricted Stock and Options | |
On February 8, 2013, Salisbury granted a total of 19,600 shares of restricted stock pursuant to its 2011 Long Term Incentive Plan, which was approved by shareholders at the 2011 Annual Meeting, to 22 employees, including 5,000 shares to one Named Executive Officer, Richard J. Cantele, Jr., President and Chief Executive Officer. The fair value of the stock as of the grant date was determined to be $490,000 and the stock will be vested three years from the grant date. Expense in 2013 totaled $142,000. Unrecognized compensation cost relating to the awards as of 12/31/13 totaled $335,000. Forfeitures in 2013 totaled 500 shares. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||||
NOTE 15 - RELATED PARTY TRANSACTIONS | ||||||||||
In the normal course of business the Bank has granted loans to executive officers, directors, principal shareholders and associates of the foregoing persons considered to be related parties. Changes in loans to executive officers, directors and their related associates are as follows (there are no loans to principal shareholders): | ||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | ||||||||
Balance, beginning of period | $ | 1,309 | $ | 1,308 | ||||||
Advances | 63 | 89 | ||||||||
Repayments | (93 | ) | (88 | ) | ||||||
Balance, end of period | $ | 1,279 | $ | 1,309 |
COMPREHENSIVE_INCOME
COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
COMPREHENSIVE INCOME | ' | ||||||||||||
NOTE 16 - COMPREHENSIVE INCOME | |||||||||||||
Comprehensive income includes net income and any changes in equity from non-owner sources that are not recorded in the income statement (such as changes in net unrealized gains (losses) on securities). The purpose of reporting comprehensive income is to report a measure of all changes in equity of an enterprise that result from recognized transactions and other economic events of the period other than transactions with owners in their capacity as owners. | |||||||||||||
The components of comprehensive income are as follows: | |||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||
Net income | $ | 4,083 | $ | 4,077 | $ | 4,112 | |||||||
Other comprehensive (loss) income | |||||||||||||
Net unrealized (losses) gains on securities available-for-sale | (3,743 | ) | 2,632 | 5,973 | |||||||||
Reclassification of net realized gains in net income | — | (279 | ) | (11 | ) | ||||||||
Unrealized (losses) gains on securities available-for-sale | (3,743 | ) | 2,353 | 5,962 | |||||||||
Income tax benefit (expense) | 1,273 | (800 | ) | (2,027 | ) | ||||||||
Unrealized (losses) gains on securities available-for-sale, net of tax | (2,470 | ) | 1,553 | 3,935 | |||||||||
Pension plan income (loss) (see Note 13) | 1,635 | 2,407 | (1,319 | ) | |||||||||
Income tax (expense) benefit | (556 | ) | (818 | ) | 448 | ||||||||
Pension plan income (loss), net of tax | 1,079 | 1,589 | (871 | ) | |||||||||
Other comprehensive (loss) income, net of tax | (1,391 | ) | 3,142 | 3,064 | |||||||||
Comprehensive income | $ | 2,692 | $ | 7,219 | $ | 7,176 | |||||||
The components of accumulated other comprehensive income are as follows: | |||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Unrealized gains on securities available-for-sale, net of tax | $ | 436 | $ | 2,906 | |||||||||
Unrecognized pension plan income (expense), net of tax | 610 | (469 | ) | ||||||||||
Accumulated other comprehensive income, net | $ | 1,046 | $ | 2,437 |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ||||||
NOTE 17 - COMMITMENTS AND CONTINGENT LIABILITIES | |||||||
Commitments | |||||||
The Bank has entered into an agreement pursuant to which a third party is to provide the Bank with account processing services and other miscellaneous services. Under the agreement, the Bank is obligated to pay monthly processing fees through August 5, 2016. In the event the Bank chooses to cancel the agreement prior to the end of the contract term a lump sum termination fee will have to be paid. The fee shall be calculated as the average monthly billing, exclusive of pass through costs for the past twelve months, multiplied by the number of months and any portion of a month remaining in the contract term plus the total of any Promotional or monthly Allowances (as applicable), or discounted monthly fees, which were provided to the Bank for the affected Processing Services in consideration of the fulfillment of the entire term of the affected Processing Services, multiplied by the number of months the Bank was awarded each of those allowance(s) for; plus one half (1/2) of any Migration Allowance or Installation Allowance, as defined in the agreement. | |||||||
In January 2014 the Bank entered into an agreement to purchase the Sharon, Connecticut branch, and approximately $19 million in deposits, of another financial institution and pending regulatory approval expect that this transaction will close during the summer of 2014. | |||||||
Salisbury leases facilities under operating leases that expire at various dates through 2017. The leases have varying renewal options, generally require a fixed annual rent, and provide that real estate taxes, insurance, and maintenance are to be paid by Salisbury. Rent expense totaled $85,000, $97,000 and $93,000 for 2013, 2012 and 2011, respectively. Future minimum lease payments at December 31, 2013 are as follows: | |||||||
Future minimum lease payments (in thousands) | |||||||
2014 | 75 | ||||||
2015 | 58 | ||||||
2016 | 58 | ||||||
2017 | 34 | ||||||
$ | 225 | ||||||
Salisbury leases a facility under a capital lease that expires in 2029 with an option to terminate the lease in 2018. The lease has varying renewal options, requires a fixed annual rent, and provides that real estate taxes, insurance, and maintenance are to be paid by Salisbury. The following is a schedule by years of future minimum lease payments under the capital lease with the present value of the net minimum lease payments as of December 31, 2013. | |||||||
Future minimum lease payments (in thousands) | |||||||
2014 | 48 | ||||||
2015 | 72 | ||||||
2016 | 72 | ||||||
2017 | 72 | ||||||
2018 | 72 | ||||||
Thereafter | 864 | ||||||
Total minimum lease payments | 1,200 | ||||||
Less amount representing interest | 775 | ||||||
$ | 425 | ||||||
Contingent Liabilities | |||||||
As previously disclosed, the Bank, individually and in its capacity as a former Co-Trustee of the Erling C. Christophersen Revocable Trust (the “Trust”), was named as a defendant in litigation filed in the Connecticut Complex Litigation Docket in Stamford, captioned John Christophersen v. Erling Christophersen, et al., X08-CV-08-5009597S (the “First Action”). The Bank also was a counterclaim-defendant in related mortgage foreclosure litigation in the Connecticut Complex Litigation Docket in Stamford, captioned Salisbury Bank and Trust Company v. Erling C. Christophersen, et al., X08-CV-10-6005847-S (the “Foreclosure Action,” together with the First Action, the “Actions”). The other parties to the Actions were John R. Christophersen; Erling C. Christophersen, individually and as Co-Trustee of the Trust; Bonnie Christophersen and Elena Dreiske, individually and as Co-Trustees of the Mildred B. Blount Testamentary Trust; People’s United Bank; Law Offices of Gary Oberst, P.C.; Rhoda Rudnick; and Hinckley Allen & Snyder LLP. | |||||||
The Actions involved a dispute over title to certain real property located in Westport, Connecticut that was conveyed by Erling Christophersen, as grantor, to the Trust on or about August 8, 2007. Subsequent to this conveyance, the Bank loaned $3,386,609 to the Trust, which was secured by a commercial mortgage in favor of the Bank on the Westport property. This mortgage is the subject of the Foreclosure Action brought by the Bank. | |||||||
As previously disclosed, John R. Christophersen claimed an interest in the Westport real property transferred to the Trust and sought to quiet title to the property and to recover money damages from the defendants for the alleged wrongful divestiture of his claimed interest in the property. | |||||||
On June 25, 2012, the Bank and John R. Christophersen entered into a Settlement Agreement which resolved all differences between John R. Christophersen and the Bank, and resulted in the withdrawal (with prejudice) of the claims made by John R. Christophersen. All claims against the Bank have been withdrawn and the Bank is no longer a defendant or counterclaim defendant in any litigation involving the Actions. As an additional consequence of the Settlement Agreement, Bonnie Christophersen, Elena Dreiske and People’s United Bank are no longer parties to any of the litigation referenced above. | |||||||
On July 27, 2012, Erling Christophersen filed a Motion to Restore the First Action, and on October 15, 2012 filed a Motion to Stay the Foreclosure Action pending resolution of the Motion to Restore. The Bank opposed both motions. On February 1, 2013, the Court issued orders denying both motions. On February 14, 2013, Erling Christophersen appealed the orders denying his Motion to Restore the First Action, and Motion to Stay the Foreclosure Action. | |||||||
The Appellate Court dismissed the appeal of the Foreclosure Action in May 2013, and later denied Erling Christophersen’s motion for reconsideration of its decision. | |||||||
The Bank continues to proceed in its Foreclosure Action against Erling Christophersen. Erling Christophersen asserted two special defenses and set-off claims alleging (1) that the Bank failed to defend the title claims against the properties, and (2) that the Bank took certain trustee fees without approval. The Bank moved to strike the special defenses and set off claims. In a decision issued on November 6, 2013, the court granted the motion to strike as to the second special defense and set off, but denied the motion as to the first special defense and set off. Trial began on February 4, 2014, and concluded on February 14, 2014. Post-trial briefs are due in mid-April, 2014, and a decision is expected thereafter. | |||||||
Erling Christophersen’s appeal of the order denying his Motion to Restore the First Action remains pending, and was heard by the Appellate Court on March 10, 2014. The Court has now taken the matter under advisement and next it will write an opinion disposing of the appeal. | |||||||
There are no other material pending legal proceedings, other than ordinary routine litigation incident to the registrant’s business, to which Salisbury is a party or of which any of its property is subject. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||
FINANCIAL INSTRUMENTS | ' | ||||||||
NOTE 18 - FINANCIAL INSTRUMENTS | |||||||||
The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, standby letters of credit and unadvanced funds on loans. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments. | |||||||||
The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | |||||||||
Commitments to originate loans are agreements to lend to a customer provided 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. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation of the borrower. Collateral held varies, but may include secured interests in mortgages, accounts receivable, inventory, property, plant and equipment and income producing properties. | |||||||||
Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of December 31, 2013 and 2012, the maximum potential amount of the Bank’s obligation was $53,000 and $34,000, respectively, for financial, commercial and standby letters of credit. If a letter of credit is drawn upon, the Bank may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Bank may take possession of the collateral, if any, securing the line of credit. | |||||||||
Financial instrument liabilities with off-balance sheet credit risk are as follows: | |||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||
Residential | $ | 314 | $ | 1,060 | |||||
Home equity credit | 28,377 | 29,989 | |||||||
Commercial | 9,900 | 2,279 | |||||||
Land | 10 | 300 | |||||||
Real estate secured | 38,601 | 33,628 | |||||||
Commercial and industrial | 17,563 | 15,441 | |||||||
Consumer | 1,321 | 1,349 | |||||||
Unadvanced portions of loans | 57,485 | 50,418 | |||||||
Commitments to originate loans | 9,730 | 17,727 | |||||||
Standby letters of credit | 53 | 34 | |||||||
Total | $ | 67,268 | $ | 68,179 | |||||
There is no material difference between the notional amounts and the estimated fair values of the off-balance sheet liabilities. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||||||
NOTE 19 - FAIR VALUE MEASUREMENTS | |||||||||||||||||||||
Salisbury uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, other assets are recorded at fair value on a nonrecurring basis, such as loans held for sale, collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. | |||||||||||||||||||||
Salisbury adopted ASC 820-10, “Fair Value Measurements and Disclosures,” which provides a framework for measuring fair value under generally accepted accounting principles. This guidance permitted Salisbury the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. Salisbury did not elect fair value treatment for any financial assets or liabilities upon adoption. | |||||||||||||||||||||
In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. | |||||||||||||||||||||
GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury’s market assumptions. These two types of inputs have created the following fair value hierarchy | |||||||||||||||||||||
• | Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury, other U.S. Government and agency mortgage-backed securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. | ||||||||||||||||||||
• | Level 2. Significant other observable inputs. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. | ||||||||||||||||||||
• | Level 3. Significant unobservable inputs. Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. | ||||||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Salisbury did not have any significant transfers of assets between levels 1 and 2 of the fair value hierarchy during the year ended December 31, 2013. | |||||||||||||||||||||
The following is a description of valuation methodologies for assets recorded at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. | |||||||||||||||||||||
• | Securities available-for-sale. Securities available-for-sale are recorded at fair value on a recurring basis. Level 1 securities include exchange-traded equity securities. Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of the U.S. Treasury and U.S. government-sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, municipal bonds, SBA bonds, corporate bonds and certain preferred equities. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. | ||||||||||||||||||||
• | Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. | ||||||||||||||||||||
• | Other real estate owned acquired through foreclosure or repossession is adjusted to fair value less costs to sell upon transfer out of loans. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. | ||||||||||||||||||||
Assets measured at fair value are as follows: | |||||||||||||||||||||
Fair Value Measurements Using | Assets at | ||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | fair value | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets at fair value on a recurring basis | |||||||||||||||||||||
U.S. Treasury notes | $ | — | $ | 2,657 | $ | — | $ | 2,657 | |||||||||||||
U.S. Government agency notes | — | 2,590 | — | 2,590 | |||||||||||||||||
Municipal bonds | — | 40,437 | — | 40,437 | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | — | 33,892 | — | 33,892 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
U.S. Government agencies | — | 3,580 | — | 3,580 | |||||||||||||||||
Non-agency | — | 8,308 | — | 8,308 | |||||||||||||||||
SBA bonds | — | 2,230 | — | 2,230 | |||||||||||||||||
Preferred stocks | 797 | — | — | 797 | |||||||||||||||||
Securities available-for-sale | $ | 797 | $ | 93,694 | $ | — | $ | 94,491 | |||||||||||||
Assets at fair value on a non-recurring basis | |||||||||||||||||||||
Collateral dependent impaired loans | — | — | 9,782 | 9,782 | |||||||||||||||||
Other real estate owned | — | — | 377 | 377 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Assets at fair value on a recurring basis | |||||||||||||||||||||
U.S. Treasury notes | $ | — | $ | 2,733 | $ | — | $ | 2,733 | |||||||||||||
U.S. Government agency notes | — | 7,726 | — | 7,726 | |||||||||||||||||
Municipal bonds | — | 47,365 | — | 47,365 | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | — | 48,729 | — | 48,729 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
U.S. Government agencies | — | 5,197 | — | 5,197 | |||||||||||||||||
Non-agency | — | 11,507 | — | 11,507 | |||||||||||||||||
SBA bonds | — | 2,863 | — | 2,863 | |||||||||||||||||
Preferred stocks | 167 | — | — | 167 | |||||||||||||||||
Securities available-for-sale | $ | 167 | $ | 126,120 | $ | — | $ | 126,287 | |||||||||||||
Assets at fair value on a non-recurring basis | |||||||||||||||||||||
Collateral dependent impaired loans | — | — | 8,434 | 8,434 | |||||||||||||||||
Other real estate owned | — | — | 244 | 244 | |||||||||||||||||
Carrying values and estimated fair values of financial instruments are as follows: | |||||||||||||||||||||
Carrying | Estimated | Fair value measurements using | |||||||||||||||||||
(in thousands) | value | fair value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 12,711 | $ | 12,711 | $ | 12,711 | $ | — | $ | — | |||||||||||
Interest-bearing time deposits with other banks | 738 | 738 | — | — | 738 | ||||||||||||||||
Securities available-for-sale | 94,491 | 94,491 | 797 | 93,694 | — | ||||||||||||||||
Federal Home Loan Bank stock | 5,340 | 5,340 | — | 5,340 | — | ||||||||||||||||
Loans held-for-sale | 173 | 175 | — | — | 175 | ||||||||||||||||
Loans receivable, net | 438,178 | 430,645 | — | — | 430,645 | ||||||||||||||||
Accrued interest receivable | 1,760 | 1,760 | — | — | 1,760 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Demand (non-interest-bearing) | $ | 84,677 | $ | 84,677 | $ | — | $ | — | $ | 84,677 | |||||||||||
Demand (interest-bearing) | 81,932 | 81,932 | — | — | 81,932 | ||||||||||||||||
Money market | 120,550 | 120,550 | — | — | 120,550 | ||||||||||||||||
Savings and other | 107,171 | 107,171 | — | — | 107,171 | ||||||||||||||||
Certificates of deposit | 83,039 | 83,520 | — | — | 83,520 | ||||||||||||||||
Deposits | 477,369 | 477,850 | — | — | 477,850 | ||||||||||||||||
FHLBB advances | 30,411 | 33,034 | — | — | 33,034 | ||||||||||||||||
Repurchase agreements | 2,554 | 2,554 | — | — | 2,554 | ||||||||||||||||
Capital lease liability | 425 | 425 | 425 | — | — | ||||||||||||||||
Accrued interest payable | 140 | 140 | — | — | 140 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 43,574 | $ | 43,574 | $ | 43,574 | $ | — | $ | — | |||||||||||
Securities available-for-sale | 126,287 | 126,287 | 167 | 126,120 | — | ||||||||||||||||
Federal Home Loan Bank stock | 5,747 | 5,747 | — | 5,747 | — | ||||||||||||||||
Loans held-for-sale | 1,879 | 1,893 | — | — | 1,893 | ||||||||||||||||
Loans receivable, net | 388,758 | 389,292 | — | — | 389,292 | ||||||||||||||||
Accrued interest receivable | 1,818 | 1,818 | — | — | 1,818 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Demand (non-interest-bearing) | $ | 98,850 | $ | 98,850 | $ | — | $ | — | $ | 98,850 | |||||||||||
Demand (interest-bearing) | 65,991 | 65,991 | — | — | 65,991 | ||||||||||||||||
Money market | 128,501 | 128,501 | — | — | 128,501 | ||||||||||||||||
Savings and other | 103,985 | 103,985 | — | — | 103,985 | ||||||||||||||||
Certificates of deposit | 93,888 | 94,894 | — | — | 94,894 | ||||||||||||||||
Deposits | 491,215 | 492,221 | — | — | 492,221 | ||||||||||||||||
FHLBB advances | 31,980 | 35,363 | — | — | 35,363 | ||||||||||||||||
Repurchase agreements | 1,784 | 1,784 | — | — | 1,784 | ||||||||||||||||
Accrued interest payable | 196 | 196 | — | — | 196 |
SALISBURY_BANCORP_PARENT_ONLY_
SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION | ' | ||||||||||||
NOTE 20 – SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION | |||||||||||||
The unconsolidated balance sheets and statements of income and cash flows of Salisbury Bancorp, Inc. are presented as follows: | |||||||||||||
Balance Sheets | 2013 | 2012 | |||||||||||
Years ended December 31, (in thousands) | |||||||||||||
Assets | |||||||||||||
Cash and due from banks | $ | 9,302 | $ | 10,297 | |||||||||
Interest-bearing time deposits with other banks | 738 | — | |||||||||||
Investment in bank subsidiary | 62,811 | 61,738 | |||||||||||
Other assets | — | 2 | |||||||||||
Total Assets | $ | 72,851 | $ | 72,037 | |||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Liabilities | $ | 61 | $ | 40 | |||||||||
Shareholders' equity | 72,790 | 71,997 | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 72,851 | $ | 72,037 | |||||||||
Statements of Income | 2013 | 2012 | 2011 | ||||||||||
Years ended December 31, (in thousands) | |||||||||||||
Dividends from subsidiary | $ | 2,128 | $ | 2,243 | $ | 2,372 | |||||||
Interest | 27 | 42 | 99 | ||||||||||
Expenses | 394 | 81 | 116 | ||||||||||
Income before taxes and equity in undistributed net income of subsidiary | 1,761 | 2,204 | 2,355 | ||||||||||
Income tax benefit | — | — | — | ||||||||||
Income before equity in undistributed net income of subsidiary | 1,761 | 2,204 | 2,355 | ||||||||||
Equity in undistributed net income of subsidiary | 2,322 | 1,873 | 1,757 | ||||||||||
Net income | $ | 4,083 | $ | 4,077 | $ | 4,112 | |||||||
Statements of Cash Flows | 2013 | 2012 | 2011 | ||||||||||
Years ended December 31, (in thousands) | |||||||||||||
Net income | $ | 4,083 | $ | 4,077 | $ | 4,112 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed net income of subsidiary | (2,322 | ) | (1,873 | ) | (1,757 | ) | |||||||
Accretion of securities | — | — | (11 | ) | |||||||||
Other | 24 | 16 | (3 | ) | |||||||||
Net cash provided by operating activities | 1,785 | 2,220 | 2,341 | ||||||||||
Investing Activities | |||||||||||||
Investment in bank | — | — | (6,466 | ) | |||||||||
Purchases of interest-bearing time deposits of other banks | (738 | ) | — | — | |||||||||
Maturities of securities available-for-sale | — | 1,103 | — | ||||||||||
Net cash (utilized) provided by investing activities | (738 | ) | 1,103 | (6,466 | ) | ||||||||
Financing Activities | |||||||||||||
Common stock dividends paid | (1,915 | ) | (1,892 | ) | (1,891 | ) | |||||||
Preferred stock dividends paid | (161 | ) | (240 | ) | (382 | ) | |||||||
Payment to repurchase Preferred Stock | — | — | (8,816 | ) | |||||||||
Payment to repurchase warrants | — | — | (205 | ) | |||||||||
Proceeds from issuance of Common Stock | 34 | 24 | 28 | ||||||||||
Proceeds from issuance of Preferred Stock | — | — | 16,000 | ||||||||||
Net cash (utilized) provided by financing activities | (2,042 | ) | (2,108 | ) | 4,734 | ||||||||
(Decrease) increase in cash and cash equivalents | (995 | ) | 1,215 | 609 | |||||||||
Cash and cash equivalents, beginning of period | 10,297 | 9,082 | 8,473 | ||||||||||
Cash and cash equivalents, end of period | $ | 9,302 | $ | 10,297 | $ | 9,082 | |||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
NOTE 21 – EARNINGS PER SHARE | |||||||||||||
The calculation of earnings per share is as follows: | |||||||||||||
Years ended December 31, (in thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Net income | $ | 4,083 | $ | 4,077 | $ | 4,112 | |||||||
Less: Preferred stock net accretion | — | — | (78 | ) | |||||||||
Less: Preferred stock dividends declared | (161 | ) | (216 | ) | (446 | ) | |||||||
Net income available to common shareholders | 3,922 | 3,861 | 3,588 | ||||||||||
Less: Undistributed earnings allocated to participating securities | (39 | ) | — | — | |||||||||
Net income allocated to common stock | $ | 3,883 | $ | 3,861 | $ | 3,588 | |||||||
Common shares issued | 1,710 | 1,690 | 1,689 | ||||||||||
Less: Unvested restricted stock awards | (19 | ) | — | — | |||||||||
Common shares outstanding used to calculate basic earnings per common share | 1,691 | 1,690 | 1,689 | ||||||||||
Add: Dilutive effect of unvested restricted stock awards | — | — | — | ||||||||||
Common shares outstanding used to calculate diluted earnings per common share | 1,691 | 1,690 | 1,689 | ||||||||||
Earnings per common share (basic and diluted) | $ | 2.3 | $ | 2.28 | $ | 2.12 | |||||||
SELECTED_QUARTERLY_CONSOLIDATE
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | ' | ||||||||||||||||
NOTE 22 – SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | |||||||||||||||||
Selected quarterly consolidated financial data for the years ended December 31, 2013 and 2012 is as follows: | |||||||||||||||||
Year ended December 31, 2013 | Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | |||||||||||||
(in thousands, except ratios and per share amounts) | |||||||||||||||||
Statement of Income | |||||||||||||||||
Interest and dividend income | $ | 5,406 | $ | 5,434 | $ | 5,431 | $ | 5,479 | |||||||||
Interest expense | 803 | 801 | 772 | 686 | |||||||||||||
Net interest and dividend income | 4,603 | 4,633 | 4,659 | 4,793 | |||||||||||||
Provision for loan losses | 396 | 240 | 240 | 190 | |||||||||||||
Trust and Wealth Advisory | 725 | 824 | 750 | 775 | |||||||||||||
Service charges and fees | 516 | 575 | 595 | 612 | |||||||||||||
Gains on sales of mortgage loans, net | 279 | 153 | 69 | 78 | |||||||||||||
Mortgage servicing, net | 26 | 8 | (37 | ) | 38 | ||||||||||||
Securities gains | — | — | — | — | |||||||||||||
Other | 79 | 90 | 82 | 68 | |||||||||||||
Non-interest income | 1,625 | 1,650 | 1,459 | 1,571 | |||||||||||||
Non-interest expense | 4,705 | 4,610 | 4,643 | 4,977 | |||||||||||||
Income before income taxes | 1,127 | 1,433 | 1,235 | 1,197 | |||||||||||||
Income tax provision | 187 | 289 | 219 | 214 | |||||||||||||
Net income | 940 | 1,144 | 1,016 | 983 | |||||||||||||
Net income available to common shareholders | 900 | 1,103 | 976 | 943 | |||||||||||||
Financial Condition | |||||||||||||||||
Total assets | $ | 597,343 | $ | 600,712 | $ | 589,481 | $ | 587,109 | |||||||||
Loans, net | 406,258 | 416,729 | 420,306 | 438,178 | |||||||||||||
Allowance for loan losses | 4,686 | 4,632 | 4,656 | 4,683 | |||||||||||||
Securities | 124,004 | 111,950 | 105,156 | 99,831 | |||||||||||||
Deposits | 487,773 | 492,040 | 479,869 | 477,369 | |||||||||||||
Repurchase agreements | 2,329 | 2,980 | 3,870 | 2,554 | |||||||||||||
FHLBB advances | 31,574 | 31,187 | 30,801 | 30,411 | |||||||||||||
Shareholders' equity | 72,206 | 71,489 | 71,211 | 72,790 | |||||||||||||
Non-performing assets | 9,297 | 9,639 | 9,737 | 7,549 | |||||||||||||
Per Common Share Data | |||||||||||||||||
Earnings, diluted and basic | $ | 0.53 | $ | 0.65 | $ | 0.57 | $ | 0.55 | |||||||||
Cash dividends declared | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||
Cash dividends paid | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||
Book value | 32.88 | 32.45 | 32.28 | 33.21 | |||||||||||||
Market price: (a) | |||||||||||||||||
High | 26.44 | 28 | 29.95 | 28 | |||||||||||||
Low | 23.55 | 25.18 | 25.52 | 25.5 | |||||||||||||
Statistical Data | |||||||||||||||||
Net interest margin (fully tax equivalent) | 3.54 | % | 3.54 | % | 3.51 | % | 3.71 | % | |||||||||
Efficiency ratio (fully tax equivalent) | 70.93 | 68.88 | 71.72 | 71.77 | |||||||||||||
Return on average assets | 0.61 | 0.74 | 0.64 | 0.64 | |||||||||||||
Return on average shareholders' equity | 6.45 | 7.81 | 7.05 | 6.69 | |||||||||||||
Weighted average equivalent shares outstanding, diluted | 1,690 | 1,691 | 1,691 | 1,691 | |||||||||||||
(a) | The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions. | ||||||||||||||||
Salisbury Bancorp, Inc.'s Common Stock, par value $.10 per share ("Common Stock") trades on the NASDAQ Capital Market under the symbol: SAL. As of March 1, 2014, there were approximately 1,713 shareholders of record of Salisbury's Common Stock. | |||||||||||||||||
Selected quarterly consolidated financial data (unaudited) continued: | |||||||||||||||||
Year ended December 31, 2012 | Q1 2012 | Q2 2012 | Q3 2012 | Q4 2012 | |||||||||||||
(in thousands, except ratios and per share amounts) | |||||||||||||||||
Statement of Income | |||||||||||||||||
Interest and dividend income | $ | 5,858 | $ | 5,766 | $ | 5,607 | $ | 5,426 | |||||||||
Interest expense | 1,175 | 1,080 | 1,035 | 992 | |||||||||||||
Net interest and dividend income | 4,683 | 4,686 | 4,572 | 4,434 | |||||||||||||
Provision for loan losses | 180 | 180 | 330 | 380 | |||||||||||||
Trust and Wealth Advisory | 755 | 735 | 683 | 772 | |||||||||||||
Service charges and fees | 521 | 547 | 559 | 561 | |||||||||||||
Gains on sales of mortgage loans, net | 372 | 263 | 568 | 394 | |||||||||||||
Mortgage servicing, net | (84 | ) | (5 | ) | (9 | ) | 76 | ||||||||||
Securities gains | 12 | 267 | — | — | |||||||||||||
Other | 83 | 83 | 86 | 74 | |||||||||||||
Non-interest income | 1,659 | 1,890 | 1,887 | 1,877 | |||||||||||||
Non-interest expense | 4,500 | 5,026 | 4,693 | 5,334 | |||||||||||||
Income before income taxes | 1,662 | 1,370 | 1,436 | 597 | |||||||||||||
Income tax provision | 412 | 254 | 296 | 26 | |||||||||||||
Net income | 1,250 | 1,116 | 1,140 | 571 | |||||||||||||
Net income available to common shareholders | 1,167 | 1,069 | 1,094 | 531 | |||||||||||||
Financial Condition | |||||||||||||||||
Total assets | $ | 598,950 | $ | 600,857 | $ | 611,037 | $ | 600,813 | |||||||||
Loans, net | 371,709 | 377,212 | 377,377 | 388,758 | |||||||||||||
Allowance for loan losses | 4,166 | 4,208 | 4,179 | 4,360 | |||||||||||||
Securities | 151,666 | 141,409 | 131,412 | 132,034 | |||||||||||||
Deposits | 472,686 | 477,910 | 490,206 | 491,215 | |||||||||||||
Repurchase agreements | 10,359 | 6,181 | 2,941 | 1,784 | |||||||||||||
FHLBB advances | 43,207 | 42,801 | 42,392 | 31,980 | |||||||||||||
Shareholders' equity | 68,067 | 69,126 | 70,374 | 71,997 | |||||||||||||
Non-performing assets | 7,606 | 8,409 | 9,870 | 10,104 | |||||||||||||
Per Common Share Data | |||||||||||||||||
Earnings, diluted and basic | $ | 0.69 | $ | 0.63 | $ | 0.65 | $ | 0.31 | |||||||||
Cash dividends declared | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||
Cash dividends paid | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||
Book value | 30.83 | 31.44 | 32.18 | 33.14 | |||||||||||||
Market price: (a) | |||||||||||||||||
High | 26.95 | 26.49 | 26.39 | 28.47 | |||||||||||||
Low | 22.51 | 23.25 | 23.11 | 23.16 | |||||||||||||
Statistical Data | |||||||||||||||||
Net interest margin (fully tax equivalent) | 3.54 | % | 3.58 | % | 3.39 | % | 3.32 | % | |||||||||
Efficiency ratio (fully tax equivalent) | 66.86 | 66.39 | 66.05 | 71.45 | |||||||||||||
Return on average assets | 0.78 | 0.72 | 0.71 | 0.35 | |||||||||||||
Return on average shareholders' equity | 9.05 | 8.1 | 8.05 | 3.85 | |||||||||||||
Weighted average equivalent shares outstanding, diluted | 1,689 | 1,689 | 1,690 | 1,690 | |||||||||||||
(a) | The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Principles of Consolidation | ' | ||
Principles of Consolidation | |||
The consolidated financial statements include those of Salisbury and its subsidiary after elimination of all inter-company accounts and transactions. | |||
Basis of Financial Statement Presentation | ' | ||
Basis of Financial Statement Presentation | |||
The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. In preparing the financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of condition, and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses. In connection with the determination of the allowance for loan losses, management obtains independent appraisals for significant properties. | |||
Certain reclassifications have been made to the 2011 and 2012 financial statements to make them consistent with the 2013 presentation. | |||
Securities | ' | ||
Securities | |||
Securities that may be sold as part of Salisbury's asset/liability or liquidity management or in response to or in anticipation of changes in interest rates and resulting prepayment risk, or for other similar factors, are classified as available-for-sale and carried at their fair market value. Unrealized holding gains and losses on such securities are reported net of related taxes, if applicable, as a separate component of shareholders' equity. Securities that Salisbury has the ability and positive intent to hold to maturity are classified as held-to-maturity and carried at amortized cost. Realized gains and losses on the sales of all securities are reported in earnings and computed using the specific identification cost basis. Securities are reviewed regularly for other-than-temporary impairment (“OTTI”). Premiums and discounts are amortized or accreted utilizing the interest method over the life or call of the term of the investment security. For any debt security with a fair value less than its amortized cost basis, Salisbury will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, Salisbury will recognize a full impairment charge to earnings. For all other debt securities that are considered OTTI and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The OTTI related to all other factors will be recorded in other comprehensive income. Declines in marketable equity securities below their cost that are deemed other than temporary are reflected in earnings as realized losses. | |||
Federal Home Loan Bank of Boston Stock | ' | ||
Federal Home Loan Bank of Boston Stock | |||
The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The FHLBB is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Bank currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. In 2008, the FHLBB announced to its members that it is focusing on preserving capital in response to ongoing market volatility including the extension of a moratorium on excess stock repurchases and in 2009 announced the suspension of its quarterly dividends. On February 22, 2011, the FHLBB declared a modest cash dividend payable to its members on March 2, 2011. The FHLBB continued to declare modest cash dividends through 2013. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Bank’s FHLBB stock as of December 31, 2013. Further deterioration of the FHLBB’s capital levels may require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock. | |||
Loans | ' | ||
Loans | |||
Loans receivable consist of loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off. Loans receivable are reported at their principal outstanding balance, net of unamortized deferred loan origination fees and costs. Interest income is accrued on the unpaid principal balance. Deferred loan origination fees and costs are amortized as an adjustment to yield over the lives of the related loans. | |||
Loans held-for-sale consist of residential mortgage loans that management has the intent to sell. Loans held-for-sale are valued at the lower of cost or market as determined by outstanding commitments from investors or current investor yield requirements calculated on the aggregate loan basis, net of deferred loan origination fees and costs. Changes in the carrying value, deferred loan origination fees and costs, and realized gains and losses on sales of loans held-for-sale are reported in earnings as gains and losses on sales of mortgage loans, net, when the proceeds are received from investors. | |||
The accrual of interest on loans, including troubled debt restructured loans, is generally discontinued when principal or interest is past due by 90 days or more, or earlier when, in the opinion of management, full collection of principal or interest is unlikely, except for loans that are well collateralized, in the process of collection and where full collection of principal and interest is assured. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current income. Income on such loans, including impaired loans, is then recognized only to the extent that cash is received and future collection of principal is probable. Loans, including troubled debt restructured loans, are restored to accrual status when principal and interest payments are brought current and future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan's contractual terms. | |||
Troubled debt restructured loans include those for which concessions such as reduction of interest rates, other than normal market rate adjustments, or deferral of principal or interest payments, extension of maturity dates, or reduction of principal balance or accrued interest, have been granted due to a borrower’s financial condition. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit Salisbury by increasing the ultimate probability of collection. | |||
Troubled debt restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on non-accrual status at the time of the troubled debt restructuring generally remain on non-accrual status for approximately six months before management considers such loans for return to accruing status. Accruing troubled debt restructured loans are generally placed into non-accrual status if and when the borrower fails to comply with the restructured terms. | |||
Allowance for Loan Losses | ' | ||
Allowance for Loan Losses | |||
The allowance for loan losses represents management’s estimate of the probable credit losses inherent in the loan portfolio as of the reporting date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by loan charge-offs. Loan charge-offs are recognized when management determines a loan or portion of a loan to be uncollectible. | |||
The determination of the adequacy of the allowance is based on management’s ongoing review of numerous factors, including the growth and composition of the loan portfolio, historical loss experience over an economic cycle, probable credit losses based upon internal and external portfolio reviews, credit risk concentrations, changes in lending policy, current economic conditions, analysis of current levels and asset quality, delinquency levels and trends, estimates of the current value of underlying collateral, the performance of individual loans in relation to contract terms, and other pertinent factors. | |||
While management believes that the allowance for loan losses is adequate, the allowance is an estimate, and ultimate losses may vary from management’s estimate. Future additions to the allowance may also be necessary based on changes in assumptions and economic conditions. In addition, various regulatory agencies periodically review the allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. | |||
Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. | |||
The allowance for loan losses is computed by segregating the portfolio into three components: (1) loans collectively evaluated for impairment: general loss allocation factors for non-impaired loans based on loan product, collateral type and abundance, loan risk rating, historical loss experience, delinquency factors and other similar economic indicators, (2) loans individually evaluated for impairment: individual loss allocations for loans deemed to be impaired based on discounted cash flows or collateral value, and (3) unallocated: general loss allocations for other environmental factors. | |||
Loans collectively evaluated for impairment | |||
This component of the allowance for loan losses is stratified by the following loan segments: residential real estate secured (residential 1-4 family and 5+ multifamily, construction of residential 1-4 family, and home equity credit), commercial real estate secured (commercial and construction of commercial), secured by land (farm and vacant land), commercial and industrial, municipal and consumer. Management’s general loss allocation factors are based on expected loss experience adjusted for historical loss experience and other qualitative factors, including levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in Salisbury’s policies or methodology pertaining to the general component of the allowance for loan losses during 2013. | |||
The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: | |||
Residential real estate - Salisbury generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. | |||
Commercial real estate - Loans in this segment are primarily income-producing properties throughout Salisbury’s market area. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates which, in turn, will have an effect on the credit quality in this segment. For commercial loans management annually obtains business and personal financial statements, tax returns, and, where applicable, rent rolls, and continually monitors the repayment of these loans. | |||
Construction loans - Loans in this segment are primarily residential construction loans which typically roll into a permanent residential mortgage loan when construction is completed, or commercial construction which consist primarily of owner occupied commercial construction projects. | |||
Commercial loans - Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, has an effect on the credit quality in this segment. | |||
Consumer loans - Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. | |||
Loans individually evaluated for impairment | |||
This component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for all portfolio loans except consumer loans, by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. | |||
A loan is considered impaired when, based on current information and events, it is probable that Salisbury will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |||
Salisbury periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired. | |||
Unallocated | |||
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. | |||
Other Real Estate Owned ("OREO") | ' | ||
Other Real Estate Owned (“OREO”) | |||
Salisbury's loans collateralized by real estate and all other real estate owned (“OREO”) are located principally in northwestern Connecticut and nearby New York and Massachusetts towns, which constitute Salisbury's service area. Accordingly, the collectability of a substantial portion of the loan portfolio and OREO is particularly susceptible to changes in market conditions in Salisbury’s service area. While management uses available information to recognize losses on loans and OREO, future additions to the allowance or write-downs of OREO may be necessary based on changes in local economic conditions, particularly in Salisbury’s service area. In addition, various regulatory agencies, as an integral part of their examination process, periodically review Salisbury's allowance for loan losses and valuation of OREO. Such agencies may require Salisbury to recognize additions to the allowance or write-downs based on their judgments of information available to them at the time of their examination. | |||
OREO consists of properties acquired through foreclosure or a deed in lieu of foreclosure. These properties are carried at the lower of cost or fair value less estimated costs to sell. Any write-down from cost to estimated fair value required at the time of foreclosure is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in OREO expense. | |||
Income Taxes | ' | ||
Income Taxes | |||
Deferred income taxes are provided for differences arising in the timing of income and expenses for financial reporting and for income tax purposes using the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is assured beyond a reasonable doubt. | |||
Bank Premises and Equipment | ' | ||
Bank Premises and Equipment | |||
Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the estimated useful lives of the improvements or the term of the related leases. | |||
Intangible Assets | ' | ||
Intangible Assets | |||
Intangible assets consist of core deposit intangibles and goodwill. Intangible assets equal the excess of the purchase price over the fair value of the tangible net assets acquired in acquisitions accounted for using the acquisition method of accounting. Salisbury’s assets at December 31, 2013, and 2012, include goodwill of $2,358,000 arising from the purchase of a branch office in 2001, $7,152,000 arising from the 2004 acquisition of Canaan National Bancorp, Inc. and $319,000 arising from the 2007 purchase of a branch office in New York State. See Note 7. | |||
On an annual basis management assesses intangible assets for impairment, and for the year ending December 31, 2013, concluded there was no impairment. If a permanent loss in value is indicated, an impairment charge to income will be recognized. | |||
Statement of Cash Flows | ' | ||
Statement of Cash Flows | |||
For the purpose of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash and due from banks and interest-bearing demand deposits with other financial institutions. | |||
Computation of Earnings per Share | ' | ||
Computation of Earnings per Share | |||
Basic earnings per share are computed using the weighted-average common shares outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share except the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. See Note 21. | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
In December 2011, the Financial Accounting Standards Board (FASB) issued ASU 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” The objective of this ASU is to enhance current disclosures. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The amendments in this ASU are effective for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||
In October 2012, the FASB issued ASU 2012-06, “Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution.” The amendments in this update clarify the applicable guidance for subsequently measuring an indemnification asset recognized as a result of a government-assisted acquisition of a financial institution. The amendments in this update are effective for fiscal years, and interim periods within those years beginning on or after December 15, 2012. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this update do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. Early adoption is permitted. The required disclosures have been reflected in the accompanying footnotes to the consolidated financial statements. | |||
In February 2013, the FASB issued ASU 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date.” The objective of the amendments in this ASU is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). Examples of obligations within the scope of this ASU include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013; and should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU scope that exist at the beginning of an entity’s fiscal year of adoption. The Company anticipates that the adoption of this guidance will not have a material impact on its consolidated financial statements. | |||
In April 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.” The amendments in this ASU are being issued to clarify when an entity should apply the liquidation basis of accounting. The guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. Additionally, the amendments require disclosures about an entity’s plan for liquidation, the methods and significant assumptions used to measure assets and liabilities, the type and amount of costs and income accrued, and the expected duration of the liquidation process. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Company anticipates that the adoption of this guidance will not have an impact on its consolidated financial statements. | |||
In July 2013, the FASB issued ASU 2013-10, “Derivatives and Hedging (Topic 815) – Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” The amendments in this ASU permit the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to Treasury Obligations of the U.S. government (UST) and the London Interbank Offered Rate (LIBOR). The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate under Topic 815. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this ASU did not have an impact on the Company’s results of operations or financial position. | |||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this ASU provide guidance for the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments apply to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have an impact on the Company’s results of operations or financial position. | |||
In January 2014, the FASB issued ASU 2014-01, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.” The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow-through entities for tax purposes as follows: | |||
1 | For reporting entities that meet the conditions for and that elect to use the proportional amortization method to account for investments in qualified affordable housing projects, all amendments in this ASU apply. | ||
2 | For reporting entities that do not meet the conditions for or that do not elect the proportional amortization method, only the amendments in this ASU that are related to disclosures apply. | ||
The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). For those investments in qualified affordable housing projects not accounted for using the proportional amortization method, the investment should be accounted for as an equity method investment or a cost method investment in accordance with Subtopic 970-323. The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect that the adoption of this ASU will have an impact on the Company’s consolidated financial statements. | |||
In January 2014, the FASB issued ASU 2014-04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of the amendments in this ASU is to reduce diversity by clarifying 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. The amendments in this ASU clarify 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, the amendments require 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. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this ASU using either a modified retrospective transition method or a prospective transition method. The Company is reviewing this ASU to determine if there will be a material impact on its consolidated financial statements. |
SECURITIES_Tables
SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Composition of Securities | ' | ||||||||||||||||||||||||
(in thousands) | Amortized | Gross un- | Gross un- | Fair value | |||||||||||||||||||||
cost (1) | realized gains | realized losses | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
U.S. Treasury notes | $ | 2,497 | $ | 160 | $ | — | $ | 2,657 | |||||||||||||||||
U.S. Government Agency notes | 2,507 | 83 | — | 2,590 | |||||||||||||||||||||
Municipal bonds | 41,775 | 782 | (2,120 | ) | 40,437 | ||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||
U.S. Government Agencies | 33,522 | 442 | (72 | ) | 33,892 | ||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
U.S. Government Agencies | 3,545 | 35 | — | 3,580 | |||||||||||||||||||||
Non-agency | 7,923 | 401 | (16 | ) | 8,308 | ||||||||||||||||||||
SBA bonds | 2,042 | 188 | — | 2,230 | |||||||||||||||||||||
Preferred Stock | 20 | 777 | — | 797 | |||||||||||||||||||||
Total securities available-for-sale | $ | 93,831 | $ | 2,868 | $ | (2,208 | ) | $ | 94,491 | ||||||||||||||||
Non-marketable securities | |||||||||||||||||||||||||
Federal Home Loan Bank of Boston stock | $ | 5,340 | $ | — | $ | — | $ | 5,340 | |||||||||||||||||
-1 | Net of other-than-temporary impairment write-downs recognized in earnings. | ||||||||||||||||||||||||
(in thousands) | Amortized | Gross un- | Gross un- | Fair value | |||||||||||||||||||||
cost (1) | realized gains | realized losses | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
U.S. Treasury notes | $ | 2,496 | $ | 237 | $ | — | $ | 2,733 | |||||||||||||||||
U.S. Government Agency notes | 7,515 | 211 | — | 7,726 | |||||||||||||||||||||
Municipal bonds | 45,395 | 2,138 | (168 | ) | 47,365 | ||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||
U.S. Government Agencies | 47,465 | 1,284 | (20 | ) | 48,729 | ||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
U.S. Government Agencies | 5,131 | 66 | — | 5,197 | |||||||||||||||||||||
Non-agency | 11,081 | 494 | (68 | ) | 11,507 | ||||||||||||||||||||
SBA bonds | 2,781 | 82 | — | 2,863 | |||||||||||||||||||||
Preferred Stock | 20 | 147 | — | 167 | |||||||||||||||||||||
Total securities available-for-sale | $ | 121,884 | $ | 4,659 | $ | (256 | ) | $ | 126,287 | ||||||||||||||||
Non-marketable securities | |||||||||||||||||||||||||
Federal Home Loan Bank of Boston stock | $ | 5,747 | $ | — | $ | — | $ | 5,747 | |||||||||||||||||
Sales of securities available-for-sale and gains realized | ' | ||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Proceeds | $ | — | $ | 2,771 | $ | — | |||||||||||||||||||
Gains realized | — | 267 | — | ||||||||||||||||||||||
Losses realized | — | — | — | ||||||||||||||||||||||
Net gains realized | — | 267 | — | ||||||||||||||||||||||
Income tax provision | — | 91 | — | ||||||||||||||||||||||
Aggreggate fair value and gross unrealized loss of securities | ' | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | Value | losses | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Municipal bonds | $ | 19,714 | $ | 1,428 | $ | 2,323 | $ | 692 | $ | 22,037 | $ | 2,120 | |||||||||||||
Mortgage-backed securities | 15,096 | 20 | 2,132 | 52 | 17,228 | 72 | |||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 398 | 2 | 294 | 10 | 692 | 12 | |||||||||||||||||||
Total temporarily impaired securities | 35,208 | 1,450 | 4,749 | 754 | 39,957 | 2,204 | |||||||||||||||||||
Other-than-temporarily impaired securities | |||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 320 | 4 | — | — | 320 | 4 | |||||||||||||||||||
Total temporarily impaired and other-than- | |||||||||||||||||||||||||
temporarily impaired securities | $ | 35,528 | $ | 1,454 | $ | 4,749 | $ | 754 | $ | 40,277 | $ | 2,208 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Municipal bonds | $ | 839 | $ | 20 | $ | 2,360 | $ | 148 | $ | 3,199 | $ | 168 | |||||||||||||
Mortgage-backed securities | 3,021 | 19 | 44 | 1 | 3,065 | 20 | |||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 612 | 2 | 901 | 17 | 1,513 | 19 | |||||||||||||||||||
Total temporarily impaired securities | 4,472 | 41 | 3,305 | 166 | 7,777 | 207 | |||||||||||||||||||
Other-than-temporarily impaired securities | |||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 535 | 6 | 1,963 | 43 | 2,498 | 49 | |||||||||||||||||||
Total temporarily impaired and other-than- | |||||||||||||||||||||||||
temporarily impaired securities | $ | 5,007 | $ | 47 | $ | 5,268 | $ | 209 | $ | 10,275 | $ | 256 | |||||||||||||
Securities amortized cost; fair value and tax equivalent yield by maturity | ' | ||||||||||||||||||||||||
December 31, 2013 (dollars in thousands) | Amortized cost | Fair value | Yield(1) | ||||||||||||||||||||||
U.S. Treasury notes | After 1 year but within 5 years | $ | 2,497 | $ | 2,657 | 3 | % | ||||||||||||||||||
U.S. Government Agency notes | Within 1 year | — | — | — | |||||||||||||||||||||
After 15 years | 2,507 | 2,590 | 5.38 | ||||||||||||||||||||||
Total | 2,507 | 2,590 | 5.38 | ||||||||||||||||||||||
Municipal bonds | Within 1 year | 3,686 | 3,935 | 6.9 | |||||||||||||||||||||
After 1 year but within 5 years | 4,095 | 4,486 | 6.84 | ||||||||||||||||||||||
After 5 years but within 10 years | 2,140 | 2,171 | 6.33 | ||||||||||||||||||||||
After 10 years but within 15 years | 1,832 | 1,826 | 6.25 | ||||||||||||||||||||||
After 15 years | 30,022 | 28,019 | 6.6 | ||||||||||||||||||||||
Total | 41,775 | 40,437 | 6.62 | ||||||||||||||||||||||
Mortgage-backed securities | U.S. Government Agency | 33,522 | 33,892 | 3.47 | |||||||||||||||||||||
Collateralized mortgage obligations | U.S. Government Agency | 3,545 | 3,580 | 1.19 | |||||||||||||||||||||
Non-agency | 7,923 | 8,308 | 4.51 | ||||||||||||||||||||||
SBA bonds | 2,042 | 2,230 | 2.57 | ||||||||||||||||||||||
Preferred Stock | 20 | 797 | 3.58 | ||||||||||||||||||||||
Securities available-for-sale | $ | 93,831 | $ | 94,491 | 4.89 | ||||||||||||||||||||
Securities for which an OTTI has been recognized | ' | ||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Non-Agency CMOs | |||||||||||||||||||||||||
OTTI losses (unrealized and realized) | $ | — | $ | — | |||||||||||||||||||||
Less: unrealized OTTI recognized in other comprehensive (loss) income | — | — | |||||||||||||||||||||||
Net impairment losses recognized in earnings | $ | — | $ | — | |||||||||||||||||||||
Activity related to credit losses recognized into earnings | ' | ||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Balance, beginning of period | $ | 1,128 | $ | 1,128 | |||||||||||||||||||||
Credit component on debt securities in which OTTI was not previously recognized | — | — | |||||||||||||||||||||||
Balance, end of period | $ | 1,128 | $ | 1,128 |
LOANS_Tables
LOANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Composition of loans receivable and loans held-for-sale | ' | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 231,113 | $ | 198,552 | |||||||||||||||||||||||||||||||||||||
Residential 5+ multifamily | 4,848 | 3,889 | |||||||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 1,876 | 2,379 | |||||||||||||||||||||||||||||||||||||||
Home equity credit | 34,139 | 34,162 | |||||||||||||||||||||||||||||||||||||||
Residential real estate | 271,976 | 238,982 | |||||||||||||||||||||||||||||||||||||||
Commercial | 91,853 | 87,382 | |||||||||||||||||||||||||||||||||||||||
Construction of commercial | 10,948 | 5,823 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | 102,801 | 93,205 | |||||||||||||||||||||||||||||||||||||||
Farm land | 3,402 | 4,320 | |||||||||||||||||||||||||||||||||||||||
Vacant land | 9,067 | 9,926 | |||||||||||||||||||||||||||||||||||||||
Real estate secured | 387,246 | 346,433 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 46,292 | 38,094 | |||||||||||||||||||||||||||||||||||||||
Municipal | 4,252 | 3,378 | |||||||||||||||||||||||||||||||||||||||
Consumer | 3,889 | 4,181 | |||||||||||||||||||||||||||||||||||||||
Loans receivable, gross | 441,679 | 392,086 | |||||||||||||||||||||||||||||||||||||||
Deferred loan origination fees and costs, net | 1,182 | 1,032 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (4,683 | ) | (4,360 | ) | |||||||||||||||||||||||||||||||||||||
Loans receivable, net | $ | 438,178 | $ | 388,758 | |||||||||||||||||||||||||||||||||||||
Loans held-for-sale | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 173 | $ | 1,879 | |||||||||||||||||||||||||||||||||||||
Composition of loans receivable by risk rating grade | ' | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Pass | Special mention | Substandard | Doubtful | Loss | Total | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 212,683 | $ | 12,338 | $ | 5,997 | $ | 95 | $ | — | $ | 231,113 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 2,674 | 1,199 | 975 | — | — | 4,848 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 1,876 | — | — | — | — | 1,876 | |||||||||||||||||||||||||||||||||||
Home equity credit | 31,444 | 1,355 | 1,340 | — | — | 34,139 | |||||||||||||||||||||||||||||||||||
Residential real estate | 248,677 | 14,892 | 8,312 | 95 | — | 271,976 | |||||||||||||||||||||||||||||||||||
Commercial | 67,554 | 16,044 | 8,255 | — | — | 91,853 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 10,257 | 102 | 589 | — | — | 10,948 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 77,811 | 16,146 | 8,844 | — | — | 102,801 | |||||||||||||||||||||||||||||||||||
Farm land | 847 | 1,421 | 1,134 | — | — | 3,402 | |||||||||||||||||||||||||||||||||||
Vacant land | 5,640 | 288 | 3,139 | — | — | 9,067 | |||||||||||||||||||||||||||||||||||
Real estate secured | 332,975 | 32,747 | 21,429 | 95 | — | 387,246 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 37,860 | 7,452 | 980 | — | — | 46,292 | |||||||||||||||||||||||||||||||||||
Municipal | 4,252 | — | — | — | — | 4,252 | |||||||||||||||||||||||||||||||||||
Consumer | 3,739 | 113 | 37 | — | — | 3,889 | |||||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 378,826 | $ | 40,312 | $ | 22,446 | $ | 95 | $ | — | $ | 441,679 | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 180,442 | $ | 12,473 | $ | 5,538 | $ | 99 | $ | — | $ | 198,552 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 2,872 | 773 | 244 | — | — | 3,889 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 1,570 | — | 809 | — | — | 2,379 | |||||||||||||||||||||||||||||||||||
Home equity credit | 30,981 | 1,848 | 1,333 | — | — | 34,162 | |||||||||||||||||||||||||||||||||||
Residential real estate | 215,865 | 15,094 | 7,924 | 99 | — | 238,982 | |||||||||||||||||||||||||||||||||||
Commercial | 64,817 | 13,299 | 9,266 | — | — | 87,382 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 5,055 | 297 | 471 | — | — | 5,823 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 69,872 | 13,596 | 9,737 | — | — | 93,205 | |||||||||||||||||||||||||||||||||||
Farm land | 2,799 | 341 | 1,180 | — | — | 4,320 | |||||||||||||||||||||||||||||||||||
Vacant land | 4,885 | 863 | 4,178 | — | — | 9,926 | |||||||||||||||||||||||||||||||||||
Real estate secured | 293,421 | 29,894 | 23,019 | 99 | — | 346,433 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 28,453 | 8,300 | 1,341 | — | — | 38,094 | |||||||||||||||||||||||||||||||||||
Municipal | 3,378 | — | — | — | — | 3,378 | |||||||||||||||||||||||||||||||||||
Consumer | 3,994 | 159 | 28 | — | — | 4,181 | |||||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 329,246 | $ | 38,353 | $ | 24,388 | $ | 99 | $ | — | $ | 392,086 | |||||||||||||||||||||||||||||
Composition of loans receivable by delinquency status | ' | ||||||||||||||||||||||||||||||||||||||||
Past due | |||||||||||||||||||||||||||||||||||||||||
180 days | 30 days | Accruing 90 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Current | 1-29 days | 30-59 days | 60-89 days | 90-179 days | and over | and over | days and over | Non- accrual | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 222,356 | $ | 3,853 | $ | 1,795 | $ | 2,622 | $ | 353 | $ | 134 | $ | 4,904 | $ | — | $ | 1,525 | |||||||||||||||||||||||
Residential 5+ multifamily | 4,749 | — | — | 99 | — | — | 99 | — | — | ||||||||||||||||||||||||||||||||
Residential 1-4 family construction | 1,876 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Home equity credit | 33,391 | 129 | 361 | 125 | — | 133 | 619 | — | 402 | ||||||||||||||||||||||||||||||||
Residential real estate | 262,372 | 3,982 | 2,156 | 2,846 | 353 | 267 | 5,622 | — | 1,927 | ||||||||||||||||||||||||||||||||
Commercial | 89,434 | 566 | 371 | 108 | 235 | 1,139 | 1,853 | — | 1,857 | ||||||||||||||||||||||||||||||||
Construction of commercial | 9,784 | 1,025 | — | 139 | — | — | 139 | — | — | ||||||||||||||||||||||||||||||||
Commercial real estate | 99,218 | 1,591 | 371 | 247 | 235 | 1,139 | 1,992 | — | 1,857 | ||||||||||||||||||||||||||||||||
Farm land | 2,995 | 23 | — | — | — | 384 | 384 | — | 384 | ||||||||||||||||||||||||||||||||
Vacant land | 6,058 | 139 | — | — | — | 2,870 | 2,870 | — | 2,870 | ||||||||||||||||||||||||||||||||
Real estate secured | 370,643 | 5,735 | 2,527 | 3,093 | 588 | 4,660 | 10,868 | — | 7,038 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 45,897 | 262 | 112 | — | — | 21 | 133 | — | 134 | ||||||||||||||||||||||||||||||||
Municipal | 4,252 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Consumer | 3,746 | 113 | 29 | 1 | — | — | 30 | — | — | ||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 424,538 | $ | 6,110 | $ | 2,668 | $ | 3,094 | $ | 588 | $ | 4,681 | $ | 11,031 | $ | — | $ | 7,172 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 190,488 | $ | 2,545 | $ | 3,578 | $ | 639 | $ | 1,185 | $ | 117 | $ | 5,519 | $ | — | $ | 3,024 | |||||||||||||||||||||||
Residential 5+ multifamily | 3,889 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Residential 1-4 family construction | 2,379 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Home equity credit | 32,540 | 890 | 113 | 396 | — | 223 | 732 | — | 442 | ||||||||||||||||||||||||||||||||
Residential real estate | 229,296 | 3,435 | 3,691 | 1,035 | 1,185 | 340 | 6,251 | — | 3,466 | ||||||||||||||||||||||||||||||||
Commercial | 83,477 | 864 | 1,104 | 566 | 58 | 1,313 | 3,041 | — | 2,214 | ||||||||||||||||||||||||||||||||
Construction of commercial | 5,659 | — | 164 | — | — | — | 164 | — | 21 | ||||||||||||||||||||||||||||||||
Commercial real estate | 89,136 | 864 | 1,268 | 566 | 58 | 1,313 | 3,205 | — | 2,235 | ||||||||||||||||||||||||||||||||
Farm land | 3,898 | 422 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Vacant land | 5,932 | — | — | 48 | 740 | 3,206 | 3,994 | — | 3,995 | ||||||||||||||||||||||||||||||||
Real estate secured | 328,262 | 4,721 | 4,959 | 1,649 | 1,983 | 4,859 | 13,450 | — | 9,696 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 37,618 | 351 | 26 | 99 | — | — | 125 | — | 164 | ||||||||||||||||||||||||||||||||
Municipal | 3,378 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Consumer | 4,034 | 108 | 25 | 14 | — | — | 39 | — | — | ||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 373,292 | $ | 5,180 | $ | 5,010 | $ | 1,762 | $ | 1,983 | $ | 4,859 | $ | 13,614 | $ | — | $ | 9,860 | |||||||||||||||||||||||
Troubled debt restructurings | ' | ||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Quantity | Pre-modification balance | Post-modification balance | Quantity | Pre-modification balance | Post-modification balance | |||||||||||||||||||||||||||||||||||
Residential real estate | 6 | $ | 2,434 | $ | 2,434 | 9 | $ | 2,002 | $ | 2,002 | |||||||||||||||||||||||||||||||
Land | 2 | 225 | 225 | — | — | — | |||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | 4 | 1,871 | 1,871 | |||||||||||||||||||||||||||||||||||
Consumer | 1 | 22 | 22 | — | — | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | 91 | 91 | 4 | 528 | 528 | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | 10 | $ | 2,772 | $ | 2,772 | 17 | $ | 4,401 | $ | 4,401 | |||||||||||||||||||||||||||||||
Rate reduction and term extension | 5 | $ | 813 | $ | 813 | 3 | $ | 513 | $ | 513 | |||||||||||||||||||||||||||||||
Interest only pursuant to sale | 1 | 40 | 40 | — | — | — | |||||||||||||||||||||||||||||||||||
Debt consolidation and term extension | — | — | — | 4 | 2,276 | 2,276 | |||||||||||||||||||||||||||||||||||
Rate reduction | 2 | 1,070 | 1,070 | 3 | 727 | 727 | |||||||||||||||||||||||||||||||||||
Rate reduction interest only | 1 | 758 | 758 | 2 | 625 | 625 | |||||||||||||||||||||||||||||||||||
Debt consolidation, rate reduction and term extension, note bifurcation | — | — | — | 1 | 99 | 99 | |||||||||||||||||||||||||||||||||||
Rate reduction and debt consolidation | 1 | 91 | 91 | — | — | — | |||||||||||||||||||||||||||||||||||
Refinance | — | — | — | 1 | 80 | 80 | |||||||||||||||||||||||||||||||||||
Modification pursuant to bankruptcy | — | — | — | 1 | 34 | 34 | |||||||||||||||||||||||||||||||||||
Seasonal interest only concession | — | — | — | 1 | 26 | 26 | |||||||||||||||||||||||||||||||||||
Term extension | — | — | — | 1 | 21 | 21 | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | 10 | $ | 2,772 | $ | 2,772 | 17 | $ | 4,401 | $ | 4,401 | |||||||||||||||||||||||||||||||
Components of impaired loans | ' | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Non-accrual loans, excluding troubled debt restructured loans | $ | 5,419 | $ | 7,579 | |||||||||||||||||||||||||||||||||||||
Non-accrual troubled debt restructured loans | 1,753 | 2,280 | |||||||||||||||||||||||||||||||||||||||
Accruing troubled debt restructured loans | 8,500 | 6,703 | |||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 15,672 | $ | 16,562 | |||||||||||||||||||||||||||||||||||||
Commitments to lend additional amounts to impaired borrowers | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
Changes in allowance for loan losses | ' | ||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
Years ended | Beginning | Charge- | Reco- | Ending | Beginning | Charge- | Reco- | Ending | |||||||||||||||||||||||||||||||||
(in thousands) | balance | Provision | offs | veries | balance | balance | Provision | offs | veries | balance | |||||||||||||||||||||||||||||||
Residential | $ | 1,934 | $ | 275 | $ | (271 | ) | $ | — | $ | 1,938 | $ | 1,479 | $ | 688 | $ | (233 | ) | $ | — | $ | 1,934 | |||||||||||||||||||
Commercial | 1,059 | 528 | (208 | ) | 6 | 1,385 | 1,139 | (52 | ) | (64 | ) | 36 | 1,059 | ||||||||||||||||||||||||||||
Land | 300 | 147 | (221 | ) | — | 226 | 409 | 167 | (276 | ) | — | 300 | |||||||||||||||||||||||||||||
Real estate | 3,293 | 950 | (700 | ) | 6 | 3,549 | 3,027 | 803 | (573 | ) | 36 | 3,293 | |||||||||||||||||||||||||||||
Commercial & industrial | 499 | 65 | (4 | ) | 1 | 561 | 704 | (21 | ) | (222 | ) | 38 | 499 | ||||||||||||||||||||||||||||
Municipal | 36 | 7 | — | — | 43 | 24 | 12 | — | — | 36 | |||||||||||||||||||||||||||||||
Consumer | 92 | 59 | (70 | ) | 24 | 105 | 79 | 78 | (91 | ) | 26 | 92 | |||||||||||||||||||||||||||||
Unallocated | 440 | (15 | ) | — | — | 425 | 242 | 198 | — | — | 440 | ||||||||||||||||||||||||||||||
Totals | $ | 4,360 | $ | 1,066 | $ | (774 | ) | $ | 31 | $ | 4,683 | $ | 4,076 | $ | 1,070 | $ | (886 | ) | $ | 100 | $ | 4,360 | |||||||||||||||||||
31-Dec-11 | |||||||||||||||||||||||||||||||||||||||||
Years ended | Beginning | Charge- | Reco- | Ending | |||||||||||||||||||||||||||||||||||||
(in thousands) | balance | Provision | offs | veries | balance | ||||||||||||||||||||||||||||||||||||
Residential | $ | 1,504 | $ | 329 | $ | (357 | ) | $ | 3 | $ | 1,479 | ||||||||||||||||||||||||||||||
Commercial | 1,132 | 258 | (274 | ) | 23 | 1,139 | |||||||||||||||||||||||||||||||||||
Land | 392 | 371 | (354 | ) | — | 409 | |||||||||||||||||||||||||||||||||||
Real estate | 3,028 | 958 | (985 | ) | 26 | 3,027 | |||||||||||||||||||||||||||||||||||
Commercial & industrial | 540 | 315 | (180 | ) | 29 | 704 | |||||||||||||||||||||||||||||||||||
Municipal | 51 | (27 | ) | — | — | 24 | |||||||||||||||||||||||||||||||||||
Consumer | 164 | 89 | (201 | ) | 27 | 79 | |||||||||||||||||||||||||||||||||||
Unallocated | 137 | 105 | — | — | 242 | ||||||||||||||||||||||||||||||||||||
Totals | $ | 3,920 | $ | 1,440 | $ | (1,366 | ) | $ | 82 | $ | 4,076 | ||||||||||||||||||||||||||||||
Composition of loans receivable and allowance for loan losses | ' | ||||||||||||||||||||||||||||||||||||||||
Collectively evaluated | Individually evaluated | Total portfolio | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Loans | Allowance | Loans | Allowance | Loans | Allowance | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 225,419 | $ | 897 | $ | 5,694 | $ | 617 | $ | 231,113 | $ | 1,514 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 3,894 | 20 | 954 | — | 4,848 | 20 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 1,876 | 11 | — | — | 1,876 | 11 | |||||||||||||||||||||||||||||||||||
Home equity credit | 33,689 | 363 | 450 | 30 | 34,139 | 393 | |||||||||||||||||||||||||||||||||||
Residential real estate | 264,878 | 1,291 | 7,098 | 647 | 271,976 | 1,938 | |||||||||||||||||||||||||||||||||||
Commercial | 87,059 | 977 | 4,794 | 282 | 91,853 | 1,259 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 10,948 | 126 | — | — | 10,948 | 126 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 98,007 | 1,103 | 4,794 | 282 | 102,801 | 1,385 | |||||||||||||||||||||||||||||||||||
Farm land | 3,018 | 61 | 384 | — | 3,402 | 61 | |||||||||||||||||||||||||||||||||||
Vacant land | 5,972 | 64 | 3,095 | 101 | 9,067 | 165 | |||||||||||||||||||||||||||||||||||
Real estate secured | 371,875 | 2,519 | 15,371 | 1,030 | 387,246 | 3,549 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 45,584 | 519 | 708 | 42 | 46,292 | 561 | |||||||||||||||||||||||||||||||||||
Municipal | 4,252 | 43 | — | — | 4,252 | 43 | |||||||||||||||||||||||||||||||||||
Consumer | 3,710 | 36 | 179 | 69 | 3,889 | 105 | |||||||||||||||||||||||||||||||||||
Unallocated allowance | — | — | — | — | — | 425 | |||||||||||||||||||||||||||||||||||
Totals | $ | 425,421 | $ | 3,117 | $ | 16,258 | $ | 1,141 | $ | 441,679 | $ | 4,683 | |||||||||||||||||||||||||||||
Collectively evaluated | Individually evaluated | Total portfolio | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Loans | Allowance | Loans | Allowance | Loans | Allowance | |||||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 191,886 | $ | 743 | $ | 6,666 | $ | 652 | $ | 198,552 | $ | 1,395 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 2,913 | 22 | 976 | 50 | 3,889 | 72 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,379 | 10 | — | — | 2,379 | 10 | |||||||||||||||||||||||||||||||||||
Home equity credit | 33,697 | 365 | 465 | 92 | 34,162 | 457 | |||||||||||||||||||||||||||||||||||
Residential real estate | 230,875 | 1,140 | 8,107 | 794 | 238,982 | 1,934 | |||||||||||||||||||||||||||||||||||
Commercial | 81,635 | 931 | 5,747 | 64 | 87,382 | 995 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 5,802 | 64 | 21 | — | 5,823 | 64 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 87,437 | 995 | 5,768 | 64 | 93,205 | 1,059 | |||||||||||||||||||||||||||||||||||
Farm land | 4,320 | 66 | — | — | 4,320 | 66 | |||||||||||||||||||||||||||||||||||
Vacant land | 5,795 | 70 | 4,131 | 164 | 9,926 | 234 | |||||||||||||||||||||||||||||||||||
Real estate secured | 328,427 | 2,271 | 18,006 | 1,022 | 346,433 | 3,293 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 37,073 | 467 | 1,021 | 32 | 38,094 | 499 | |||||||||||||||||||||||||||||||||||
Municipal | 3,378 | 36 | — | — | 3,378 | 36 | |||||||||||||||||||||||||||||||||||
Consumer | 4,061 | 39 | 120 | 53 | 4,181 | 92 | |||||||||||||||||||||||||||||||||||
Unallocated allowance | — | — | — | — | — | 440 | |||||||||||||||||||||||||||||||||||
Totals | $ | 372,939 | $ | 2,813 | $ | 19,147 | $ | 1,107 | $ | 392,086 | $ | 4,360 | |||||||||||||||||||||||||||||
Credit quality segments of loans receivable and allowance for loan losses | ' | ||||||||||||||||||||||||||||||||||||||||
Collectively evaluated | Individually evaluated | Total portfolio | |||||||||||||||||||||||||||||||||||||||
December 31, 2013 (in thousands) | Loans | Allowance | Loans | Allowance | Loans | Allowance | |||||||||||||||||||||||||||||||||||
Performing loans | $ | 416,734 | $ | 2,835 | $ | 157 | $ | 69 | $ | 416,891 | $ | 2,904 | |||||||||||||||||||||||||||||
Potential problem loans | 8,687 | 282 | 429 | 19 | 9,116 | 301 | |||||||||||||||||||||||||||||||||||
Impaired loans | — | — | 15,672 | 1,053 | 15,672 | 1,053 | |||||||||||||||||||||||||||||||||||
Unallocated allowance | — | — | — | — | — | 425 | |||||||||||||||||||||||||||||||||||
Totals | $ | 425,421 | $ | 3,117 | $ | 16,258 | $ | 1,141 | $ | 441,679 | $ | 4,683 | |||||||||||||||||||||||||||||
Certain data with respect to loans individually evaluated for impairment | ' | ||||||||||||||||||||||||||||||||||||||||
Impaired loans with specific allowance | Impaired loans with no specific allowance | ||||||||||||||||||||||||||||||||||||||||
Loan balance | Specific | Income | Loan balance | Income | |||||||||||||||||||||||||||||||||||||
(in thousands) | Book | Note | Average | allowance | recognized | Book | Note | Average | recognized | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 4,409 | $ | 4,516 | $ | 3,995 | $ | 598 | $ | 99 | $ | 2,073 | $ | 2,522 | $ | 2,285 | $ | 54 | |||||||||||||||||||||||
Home equity credit | 72 | 72 | 101 | 30 | 2 | 378 | 428 | 251 | 4 | ||||||||||||||||||||||||||||||||
Residential real estate | 4,481 | 4,588 | 4,096 | 628 | 101 | 2,451 | 2,950 | 2,536 | 58 | ||||||||||||||||||||||||||||||||
Commercial | 2,777 | 2,835 | 2,349 | 282 | 127 | 1,771 | 2,299 | 2,411 | 47 | ||||||||||||||||||||||||||||||||
Commercial construction | — | — | 3 | — | — | — | 20 | 8 | — | ||||||||||||||||||||||||||||||||
Farm land | — | — | — | — | — | 384 | 384 | 118 | — | ||||||||||||||||||||||||||||||||
Vacant land | 3,095 | 3,889 | 1,853 | 101 | — | — | 100 | 1,430 | — | ||||||||||||||||||||||||||||||||
Real estate secured | 10,353 | 11,312 | 8,301 | 1,011 | 228 | 4,606 | 5,753 | 6,503 | 105 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 119 | 154 | 233 | 42 | 1 | 573 | 975 | 595 | 36 | ||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | 22 | 22 | — | — | ||||||||||||||||||||||||||||||||
Totals | $ | 10,472 | $ | 11,466 | $ | 8,534 | $ | 1,053 | $ | 229 | $ | 5,201 | $ | 6,750 | $ | 7,098 | $ | 141 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 3,857 | $ | 3,925 | $ | 2,404 | $ | 578 | $ | 77 | $ | 2,263 | $ | 2,460 | $ | 1,601 | $ | 34 | |||||||||||||||||||||||
Home equity credit | 351 | 351 | 146 | 92 | — | 91 | 93 | 203 | — | ||||||||||||||||||||||||||||||||
Residential real estate | 4,208 | 4,276 | 2,550 | 670 | 77 | 2,354 | 2,553 | 1,804 | 34 | ||||||||||||||||||||||||||||||||
Commercial | 1,629 | 1,784 | 1,925 | 64 | 60 | 3,381 | 3,576 | 3,122 | 82 | ||||||||||||||||||||||||||||||||
Vacant land | 3,186 | 3,387 | 1,455 | 158 | — | 808 | 1,467 | 2,358 | 4 | ||||||||||||||||||||||||||||||||
Real estate secured | 9,023 | 9,447 | 5,930 | 892 | 137 | 6,543 | 7,596 | 7,284 | 120 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 335 | 368 | 833 | 32 | 13 | 661 | 1,063 | 854 | 31 | ||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Totals | $ | 9,358 | $ | 9,815 | $ | 6,763 | $ | 924 | $ | 150 | $ | 7,204 | $ | 8,659 | $ | 8,138 | $ | 151 |
MORTGAGE_SERVICING_RIGHTS_Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||||||
Balance of loans serviced for others and fair value of mortgage servicing rights | ' | ||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Residential mortgage loans serviced for others | $ | 146,258 | $ | 145,934 | |||||||||
Fair value of mortgage servicing rights | 1,579 | 1,159 | |||||||||||
Changes in mortgage servicing rights | ' | ||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||
Loan Servicing Rights | |||||||||||||
Balance, beginning of period | $ | 1,075 | $ | 772 | $ | 683 | |||||||
Originated | 294 | 682 | 329 | ||||||||||
Amortization (1) | (389 | ) | (379 | ) | (240 | ) | |||||||
Balance, end of period | 980 | 1,075 | 772 | ||||||||||
Valuation Allowance | |||||||||||||
Balance, beginning of period | (38 | ) | (22 | ) | (10 | ) | |||||||
Decrease (Increase) in impairment reserve (1) | 23 | (16 | ) | (12 | ) | ||||||||
Balance, end of period | (15 | ) | (38 | ) | (22 | ) | |||||||
Loan servicing rights, net | $ | 965 | $ | 1,037 | $ | 750 | |||||||
-1 | Amortization expense and changes in the impairment reserve are recorded in loan servicing fee income. |
PLEDGED_ASSETS_Tables
PLEDGED ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available | ' | ||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||
Securities available-for-sale (at fair value) | $ | 57,623 | $ | 54,497 | |||||
Loans receivable | 130,574 | 106,457 | |||||||
Total pledged assets | $ | 188,197 | $ | 160,954 |
BANK_PREMISES_AND_EQUIPMENT_Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Components of premises and equipment | ' | ||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||
Land | $ | 2,137 | $ | 2,137 | |||||
Buildings and improvements | 9,655 | 9,658 | |||||||
Leasehold improvements | 706 | 706 | |||||||
Capital lease | 425 | — | |||||||
Furniture, fixtures, equipment and software | 5,713 | 5,392 | |||||||
Construction in progress, including land acquisition and development | 132 | 44 | |||||||
Total cost | 18,768 | 17,937 | |||||||
Accumulated depreciation and amortization | (7,157 | ) | (6,417 | ) | |||||
Bank premises and equipment, net | $ | 11,611 | $ | 11,520 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Changes in carrying values of goodwill and intangible assets | ' | ||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||
Goodwill (1) | |||||||||||||
Balance, beginning of period | $ | 9,829 | $ | 9,829 | $ | 9,829 | |||||||
Additions | — | — | — | ||||||||||
Impairment | — | — | — | ||||||||||
Balance, end of period | $ | 9,829 | $ | 9,829 | $ | 9,829 | |||||||
Core Deposit Intangibles | |||||||||||||
Cost, beginning of period | $ | 2,543 | $ | 2,543 | $ | 2,543 | |||||||
Additions | — | — | — | ||||||||||
Impairment | — | — | — | ||||||||||
Cost, end of period | 2,543 | 2,543 | 2,543 | ||||||||||
Amortization, beginning of period | (1,745 | ) | (1,523 | ) | (1,301 | ) | |||||||
Amortization | (222 | ) | (222 | ) | (222 | ) | |||||||
Amortization, end of period | (1,967 | ) | (1,745 | ) | (1,523 | ) | |||||||
Core deposit intangibles, net | $ | 576 | $ | 798 | $ | 1,020 | |||||||
-1 | Not subject to amortization. | ||||||||||||
Estimated annual amortization expense of core deposit intangibles | ' | ||||||||||||
Years ended December 31, (in thousands) | CDI amortization | ||||||||||||
2014 | 202 | ||||||||||||
2015 | 154 | ||||||||||||
2016 | 154 | ||||||||||||
2017 | 66 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Banking and Thrift [Abstract] | ' | ||||||||
Scheduled maturities of time certificates of deposit | ' | ||||||||
Years ended December 31, (in thousands) | CD maturities | ||||||||
2014 | $ | 52,473 | |||||||
2015 | 13,677 | ||||||||
2016 | 8,311 | ||||||||
2017 | 3,336 | ||||||||
2018 | 5,242 | ||||||||
Total | $ | 83,039 | |||||||
Total amount and scheduled maturities of time certificates of deposit | ' | ||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||
Less than three months | $ | 6,279 | $ | 6,094 | |||||
Within three-to-six months | 5,834 | 4,416 | |||||||
Within six-to-twelve months | 7,450 | 9,166 | |||||||
Over one year | 14,804 | 15,458 | |||||||
Total | $ | 34,367 | $ | 35,134 |
SECURITIES_SOLD_UNDER_AGREEMEN1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Banking and Thrift [Abstract] | ' | ||||||||
Securities sold under repurchase agreements | ' | ||||||||
Years ended December 31, (dollars in thousands) | 2013 | 2012 | |||||||
Repurchase agreements, ending balance | $ | 2,554 | $ | 1,784 | |||||
Repurchase agreements, average balance during period | 3,035 | 5,879 | |||||||
Book value of collateral | 11,020 | 9,942 | |||||||
Market value of collateral | 11,106 | 10,128 | |||||||
Weighted average rate during period | 0.19 | % | 0.39 | % | |||||
Weighted average maturity | 1 day | 1 day |
FEDERAL_HOME_LOAN_BANK_OF_BOST1
FEDERAL HOME LOAN BANK OF BOSTON ADVANCES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | ||||||||||||||||||||||||||
Federal Home Loan Bank of Boston ("FHLBB") advances | ' | ||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||
(dollars in thousands) | Total | Callable (1) | Rate (2) | Total | Callable (1) | Rate (2) | |||||||||||||||||||||
2013 | — | — | — | 1,569 | — | 3.89 | |||||||||||||||||||||
2014 | 1,598 | — | 3.87 | 1,598 | — | 3.87 | |||||||||||||||||||||
2015 | 791 | — | 3.88 | 791 | — | 3.88 | |||||||||||||||||||||
2016 | 15,022 | 15,000 | 4.08 | 15,022 | 15,000 | 4.08 | |||||||||||||||||||||
2017 | 6,000 | 6,000 | 4.05 | 6,000 | 6,000 | 4.05 | |||||||||||||||||||||
2018 | 7,000 | — | 3.74 | 7,000 | — | 3.74 | |||||||||||||||||||||
Total | $ | 30,411 | $ | 21,000 | 3.99 | % | $ | 31,980 | $ | 21,000 | 3.99 | % | |||||||||||||||
-1 | Represents the portion of advances that are callable. Callable advances are presented by scheduled maturity. Callable advances are callable quarterly or one time callable by the FHLBB. | ||||||||||||||||||||||||||
-2 | Weighted average rate based on scheduled maturity dates. | ||||||||||||||||||||||||||
Certain information concerning short-term FHLBB advances | ' | ||||||||||||||||||||||||||
Years ended December 31, (dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||
Highest month-end balance during period | $ | — | $ | — | |||||||||||||||||||||||
Ending balance | — | — | |||||||||||||||||||||||||
Average balance during period | 52 | — | |||||||||||||||||||||||||
Weighted average rate during period | 0.29 | % | 0 | % | |||||||||||||||||||||||
Weighted average rate at end of period | 0 | 0 |
NET_DEFERRED_TAX_ASSETS_AND_IN1
NET DEFERRED TAX ASSETS AND INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of income tax provision | ' | ||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||
Federal | $ | 940 | $ | 1,076 | $ | 739 | |||||||
State | 103 | 112 | 81 | ||||||||||
Current provision | 1,043 | 1,188 | 820 | ||||||||||
Federal | 215 | (199 | ) | 130 | |||||||||
State | — | — | — | ||||||||||
Change in valuation allowance | (349 | ) | — | — | |||||||||
Deferred (benefit) expense | (134 | ) | (199 | ) | 130 | ||||||||
Income tax provision | $ | 909 | $ | 989 | $ | 950 | |||||||
Reconciliation of expected federal statutory tax to income tax provision | ' | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Income tax at statutory federal tax rate | 34 | % | 34 | % | 34 | % | |||||||
State tax, net of federal tax benefit | 1.35 | 1.47 | 1.1 | ||||||||||
Tax exempt income and dividends received deduction | (18.18 | ) | (16.25 | ) | (17.50 | ) | |||||||
Expiration of capital loss carry forward | 7 | — | — | ||||||||||
Other | 1.04 | 0.27 | 1.2 | ||||||||||
Change in valuation allowance | (7.00 | ) | — | — | |||||||||
Effective income tax rates | 18.21 | % | 19.49 | % | 18.8 | % | |||||||
Components of net deferred tax assets | ' | ||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Allowance for loan losses | $ | 1,369 | $ | 1,259 | |||||||||
Interest on non-performing loans | 180 | 220 | |||||||||||
Accrued deferred compensation | 62 | 46 | |||||||||||
Post-retirement benefits | 16 | 15 | |||||||||||
Other real estate owned property write-down | 35 | 7 | |||||||||||
Capital loss carry forward | — | 349 | |||||||||||
Restricted stock awards | 48 | — | |||||||||||
Unrecognized pension expense | — | 242 | |||||||||||
Write-down of securities | 1,388 | 1,388 | |||||||||||
Alternative minimum tax | 528 | 591 | |||||||||||
Other | 4 | — | |||||||||||
Gross deferred tax assets | 3,630 | 4,117 | |||||||||||
Valuation allowance | — | (349 | ) | ||||||||||
Gross deferred tax assets, net | 3,630 | 3,768 | |||||||||||
Deferred loan costs, net | (402 | ) | (351 | ) | |||||||||
Goodwill and core deposit intangible asset | (746 | ) | (736 | ) | |||||||||
Accelerated depreciation | (1,114 | ) | (1,171 | ) | |||||||||
Mark-to-market purchase accounting adjustments | (6 | ) | (17 | ) | |||||||||
Mortgage servicing rights | (328 | ) | (353 | ) | |||||||||
Prepaid pension | (236 | ) | (234 | ) | |||||||||
Unrecognized pension benefit | (314 | ) | — | ||||||||||
Net unrealized holding gain on available-for-sale securities | (224 | ) | (1,496 | ) | |||||||||
Gross deferred tax liabilities | (3,370 | ) | (4,358 | ) | |||||||||
Net deferred tax asset (liability) | $ | 260 | $ | (590 | ) |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Actual regulatory capital position and minimum capital requirements | ' | ||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | To be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | $ | 66,404 | 16.46 | % | $ | 32,280 | 8 | % | n/a | — | |||||||||||||||
Bank | 56,425 | 13.87 | 32,539 | 8 | $ | 40,674 | 10 | % | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | 61,340 | 15.2 | 16,140 | 4 | n/a | — | |||||||||||||||||||
Bank | 51,361 | 12.63 | 16,270 | 4 | 24,405 | 6 | |||||||||||||||||||
Tier 1 Capital (to average assets) | |||||||||||||||||||||||||
Salisbury | 61,340 | 10.65 | 23,035 | 4 | n/a | — | |||||||||||||||||||
Bank | 51,361 | 8.96 | 22,938 | 4 | 28,673 | 5 | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | $ | 63,391 | 16.63 | % | $ | 30,494 | 8 | % | n/a | — | |||||||||||||||
Bank | 53,132 | 13.77 | 30,866 | 8 | $ | 38,582 | 10 | % | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | 58,933 | 15.46 | 15,247 | 4 | n/a | — | |||||||||||||||||||
Bank | 48,674 | 12.62 | 15,432 | 4 | 23,149 | 6 | |||||||||||||||||||
Tier 1 Capital (to average assets) | |||||||||||||||||||||||||
Salisbury | 58,933 | 9.87 | 23,876 | 4 | n/a | — | |||||||||||||||||||
Bank | 48,674 | 8.15 | 23,876 | 4 | 29,845 | 5 |
PENSIONS_AND_OTHER_BENEFITS_Ta
PENSIONS AND OTHER BENEFITS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Transition from providing retirement benefits under defined pension plan to defined contribution 401(K) plan | ' | ||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Change in projected benefit obligation | |||||||||||||||||
Benefit obligation at beginning of year | $ | 6,039 | $ | 7,949 | $ | 6,639 | |||||||||||
Actuarial (gain)/loss | (860 | ) | 1,012 | 1,073 | |||||||||||||
Service cost | — | 404 | 343 | ||||||||||||||
Interest cost | 255 | 358 | 383 | ||||||||||||||
Curtailments and settlements | — | (3,586 | ) | — | |||||||||||||
Benefits paid | (184 | ) | (98 | ) | (489 | ) | |||||||||||
Benefit obligation at end of year | 5,250 | 6,039 | 7,949 | ||||||||||||||
Change in plan assets | |||||||||||||||||
Plan assets at estimated fair value at beginning of year | 6,019 | 6,164 | 5,668 | ||||||||||||||
Actual return on plan assets | 1,033 | 720 | 97 | ||||||||||||||
Contributions by employer | — | 129 | 888 | ||||||||||||||
Curtailments and settlements | — | (896 | ) | — | |||||||||||||
Benefits paid | (184 | ) | (98 | ) | (489 | ) | |||||||||||
Fair value of plan assets at end of year | 6,868 | 6,019 | 6,164 | ||||||||||||||
Funded status and recognized asset (liability) | |||||||||||||||||
included in other assets (liabilities) on the balance sheet | $ | 1,618 | $ | (20 | ) | $ | (1,785 | ) | |||||||||
Components of amounts recognized in accumulated other comprehensive income, before tax effect | ' | ||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Net gain (loss) | $ | 924 | $ | (711 | ) | $ | (3,118 | ) | |||||||||
$ | 924 | $ | (711 | ) | $ | (3,118 | ) | ||||||||||
Rate of increase in future compensation levels | ' | ||||||||||||||||
Age | Rate | ||||||||||||||||
25 | 4.75 | % | |||||||||||||||
35 | 4.25 | ||||||||||||||||
45 | 3.75 | ||||||||||||||||
55 | 3.25 | ||||||||||||||||
65 | 3 | ||||||||||||||||
Components of net periodic cost | ' | ||||||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Service cost | $ | — | $ | 404 | $ | 343 | |||||||||||
Interest cost on benefit obligation | 255 | 358 | 383 | ||||||||||||||
Expected return on plan assets | (258 | ) | (455 | ) | (418 | ) | |||||||||||
Amortization of net loss | — | 123 | 75 | ||||||||||||||
Net periodic benefit cost | (3 | ) | 430 | 383 | |||||||||||||
Additional amount recognized due to settlement or curtailment | — | 341 | — | ||||||||||||||
(3 | ) | 771 | 383 | ||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: | |||||||||||||||||
Net actuarial (gain) loss | (1,635 | ) | (2,284 | ) | 1,394 | ||||||||||||
Amortization of net loss | — | (123 | ) | (75 | ) | ||||||||||||
Total recognized in other comprehensive (income) loss | (1,635 | ) | (2,407 | ) | 1,319 | ||||||||||||
Total recognized in net periodic cost and other comprehensive (income) loss | $ | (1,638 | ) | $ | (1,636 | ) | $ | 1,702 | |||||||||
Fair values of pension plan assets | ' | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | Assets at fair | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | value | |||||||||||||
31-Dec-13 | |||||||||||||||||
Fixed Income | |||||||||||||||||
Corporate Debt | $ | — | $ | 637 | $ | — | $ | 637 | |||||||||
Preferred Stock | 57 | — | — | 57 | |||||||||||||
Equities | 4,115 | — | — | 4,115 | |||||||||||||
Mutual Funds | 1,719 | — | — | 1,719 | |||||||||||||
Money Fund | 340 | — | — | 340 | |||||||||||||
Totals | $ | 6,231 | $ | 637 | $ | — | $ | 6,868 | |||||||||
31-Dec-12 | |||||||||||||||||
Fixed Income | |||||||||||||||||
Corporate Debt | $ | — | $ | 714 | $ | — | $ | 714 | |||||||||
Preferred Stock | 63 | — | — | 63 | |||||||||||||
Equities | 4,605 | — | — | 4,605 | |||||||||||||
Mutual Funds | 268 | — | — | 268 | |||||||||||||
Money Fund | 369 | — | — | 369 | |||||||||||||
Totals | $ | 5,305 | $ | 714 | $ | — | $ | 6,019 | |||||||||
Future expected benefit payments | ' | ||||||||||||||||
Future expected benefit payments (in thousands) | |||||||||||||||||
2014 | $ | 140 | |||||||||||||||
2015 | 382 | ||||||||||||||||
2016 | 91 | ||||||||||||||||
2017 | 532 | ||||||||||||||||
2018 | 87 | ||||||||||||||||
2019 to 2023 | 1,967 |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
Changes in loans to executive officers, directors and their related associates | ' | |||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | ||||||||
Balance, beginning of period | $ | 1,309 | $ | 1,308 | ||||||
Advances | 63 | 89 | ||||||||
Repayments | (93 | ) | (88 | ) | ||||||
Balance, end of period | $ | 1,279 | $ | 1,309 |
COMPREHENSIVE_INCOME_Tables
COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Components of comprehensive income | ' | ||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||
Net income | $ | 4,083 | $ | 4,077 | $ | 4,112 | |||||||
Other comprehensive (loss) income | |||||||||||||
Net unrealized (losses) gains on securities available-for-sale | (3,743 | ) | 2,632 | 5,973 | |||||||||
Reclassification of net realized gains in net income | — | (279 | ) | (11 | ) | ||||||||
Unrealized (losses) gains on securities available-for-sale | (3,743 | ) | 2,353 | 5,962 | |||||||||
Income tax benefit (expense) | 1,273 | (800 | ) | (2,027 | ) | ||||||||
Unrealized (losses) gains on securities available-for-sale, net of tax | (2,470 | ) | 1,553 | 3,935 | |||||||||
Pension plan income (loss) (see Note 13) | 1,635 | 2,407 | (1,319 | ) | |||||||||
Income tax (expense) benefit | (556 | ) | (818 | ) | 448 | ||||||||
Pension plan income (loss), net of tax | 1,079 | 1,589 | (871 | ) | |||||||||
Other comprehensive (loss) income, net of tax | (1,391 | ) | 3,142 | 3,064 | |||||||||
Comprehensive income | $ | 2,692 | $ | 7,219 | $ | 7,176 | |||||||
Components of accumulated other comprehensive income | ' | ||||||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||||||
Unrealized gains on securities available-for-sale, net of tax | $ | 436 | $ | 2,906 | |||||||||
Unrecognized pension plan income (expense), net of tax | 610 | (469 | ) | ||||||||||
Accumulated other comprehensive income, net | $ | 1,046 | $ | 2,437 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Future minimum lease payments | ' | ||||||
Future minimum lease payments (in thousands) | |||||||
2014 | 75 | ||||||
2015 | 58 | ||||||
2016 | 58 | ||||||
2017 | 34 | ||||||
$ | 225 | ||||||
Future minimum lease payments under capital lease with present value of net minimum lease payments | ' | ||||||
Future minimum lease payments (in thousands) | |||||||
2014 | 48 | ||||||
2015 | 72 | ||||||
2016 | 72 | ||||||
2017 | 72 | ||||||
2018 | 72 | ||||||
Thereafter | 864 | ||||||
Total minimum lease payments | 1,200 | ||||||
Less amount representing interest | 775 | ||||||
$ | 425 |
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||
Financial instrument liabilities with off-balance sheet credit risk | ' | ||||||||
Years ended December 31, (in thousands) | 2013 | 2012 | |||||||
Residential | $ | 314 | $ | 1,060 | |||||
Home equity credit | 28,377 | 29,989 | |||||||
Commercial | 9,900 | 2,279 | |||||||
Land | 10 | 300 | |||||||
Real estate secured | 38,601 | 33,628 | |||||||
Commercial and industrial | 17,563 | 15,441 | |||||||
Consumer | 1,321 | 1,349 | |||||||
Unadvanced portions of loans | 57,485 | 50,418 | |||||||
Commitments to originate loans | 9,730 | 17,727 | |||||||
Standby letters of credit | 53 | 34 | |||||||
Total | $ | 67,268 | $ | 68,179 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Assets measured at fair value | ' | ||||||||||||||||||||
Fair Value Measurements Using | Assets at | ||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | fair value | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets at fair value on a recurring basis | |||||||||||||||||||||
U.S. Treasury notes | $ | — | $ | 2,657 | $ | — | $ | 2,657 | |||||||||||||
U.S. Government agency notes | — | 2,590 | — | 2,590 | |||||||||||||||||
Municipal bonds | — | 40,437 | — | 40,437 | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | — | 33,892 | — | 33,892 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
U.S. Government agencies | — | 3,580 | — | 3,580 | |||||||||||||||||
Non-agency | — | 8,308 | — | 8,308 | |||||||||||||||||
SBA bonds | — | 2,230 | — | 2,230 | |||||||||||||||||
Preferred stocks | 797 | — | — | 797 | |||||||||||||||||
Securities available-for-sale | $ | 797 | $ | 93,694 | $ | — | $ | 94,491 | |||||||||||||
Assets at fair value on a non-recurring basis | |||||||||||||||||||||
Collateral dependent impaired loans | — | — | 9,782 | 9,782 | |||||||||||||||||
Other real estate owned | — | — | 377 | 377 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Assets at fair value on a recurring basis | |||||||||||||||||||||
U.S. Treasury notes | $ | — | $ | 2,733 | $ | — | $ | 2,733 | |||||||||||||
U.S. Government agency notes | — | 7,726 | — | 7,726 | |||||||||||||||||
Municipal bonds | — | 47,365 | — | 47,365 | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | — | 48,729 | — | 48,729 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
U.S. Government agencies | — | 5,197 | — | 5,197 | |||||||||||||||||
Non-agency | — | 11,507 | — | 11,507 | |||||||||||||||||
SBA bonds | — | 2,863 | — | 2,863 | |||||||||||||||||
Preferred stocks | 167 | — | — | 167 | |||||||||||||||||
Securities available-for-sale | $ | 167 | $ | 126,120 | $ | — | $ | 126,287 | |||||||||||||
Assets at fair value on a non-recurring basis | |||||||||||||||||||||
Collateral dependent impaired loans | — | — | 8,434 | 8,434 | |||||||||||||||||
Other real estate owned | — | — | 244 | 244 | |||||||||||||||||
Carrying value and estimated fair values of financial instruments | ' | ||||||||||||||||||||
Carrying | Estimated | Fair value measurements using | |||||||||||||||||||
(in thousands) | value | fair value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 12,711 | $ | 12,711 | $ | 12,711 | $ | — | $ | — | |||||||||||
Interest-bearing time deposits with other banks | 738 | 738 | — | — | 738 | ||||||||||||||||
Securities available-for-sale | 94,491 | 94,491 | 797 | 93,694 | — | ||||||||||||||||
Federal Home Loan Bank stock | 5,340 | 5,340 | — | 5,340 | — | ||||||||||||||||
Loans held-for-sale | 173 | 175 | — | — | 175 | ||||||||||||||||
Loans receivable, net | 438,178 | 430,645 | — | — | 430,645 | ||||||||||||||||
Accrued interest receivable | 1,760 | 1,760 | — | — | 1,760 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Demand (non-interest-bearing) | $ | 84,677 | $ | 84,677 | $ | — | $ | — | $ | 84,677 | |||||||||||
Demand (interest-bearing) | 81,932 | 81,932 | — | — | 81,932 | ||||||||||||||||
Money market | 120,550 | 120,550 | — | — | 120,550 | ||||||||||||||||
Savings and other | 107,171 | 107,171 | — | — | 107,171 | ||||||||||||||||
Certificates of deposit | 83,039 | 83,520 | — | — | 83,520 | ||||||||||||||||
Deposits | 477,369 | 477,850 | — | — | 477,850 | ||||||||||||||||
FHLBB advances | 30,411 | 33,034 | — | — | 33,034 | ||||||||||||||||
Repurchase agreements | 2,554 | 2,554 | — | — | 2,554 | ||||||||||||||||
Capital lease liability | 425 | 425 | 425 | — | — | ||||||||||||||||
Accrued interest payable | 140 | 140 | — | — | 140 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 43,574 | $ | 43,574 | $ | 43,574 | $ | — | $ | — | |||||||||||
Securities available-for-sale | 126,287 | 126,287 | 167 | 126,120 | — | ||||||||||||||||
Federal Home Loan Bank stock | 5,747 | 5,747 | — | 5,747 | — | ||||||||||||||||
Loans held-for-sale | 1,879 | 1,893 | — | — | 1,893 | ||||||||||||||||
Loans receivable, net | 388,758 | 389,292 | — | — | 389,292 | ||||||||||||||||
Accrued interest receivable | 1,818 | 1,818 | — | — | 1,818 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Demand (non-interest-bearing) | $ | 98,850 | $ | 98,850 | $ | — | $ | — | $ | 98,850 | |||||||||||
Demand (interest-bearing) | 65,991 | 65,991 | — | — | 65,991 | ||||||||||||||||
Money market | 128,501 | 128,501 | — | — | 128,501 | ||||||||||||||||
Savings and other | 103,985 | 103,985 | — | — | 103,985 | ||||||||||||||||
Certificates of deposit | 93,888 | 94,894 | — | — | 94,894 | ||||||||||||||||
Deposits | 491,215 | 492,221 | — | — | 492,221 | ||||||||||||||||
FHLBB advances | 31,980 | 35,363 | — | — | 35,363 | ||||||||||||||||
Repurchase agreements | 1,784 | 1,784 | — | — | 1,784 | ||||||||||||||||
Accrued interest payable | 196 | 196 | — | — | 196 |
SALISBURY_BANCORP_PARENT_ONLY_1
SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Unconsolidated balance sheets of Salisbury Bancorp, Inc. | ' | ||||||||||||
Balance Sheets | 2013 | 2012 | |||||||||||
Years ended December 31, (in thousands) | |||||||||||||
Assets | |||||||||||||
Cash and due from banks | $ | 9,302 | $ | 10,297 | |||||||||
Interest-bearing time deposits with other banks | 738 | — | |||||||||||
Investment in bank subsidiary | 62,811 | 61,738 | |||||||||||
Other assets | — | 2 | |||||||||||
Total Assets | $ | 72,851 | $ | 72,037 | |||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Liabilities | $ | 61 | $ | 40 | |||||||||
Shareholders' equity | 72,790 | 71,997 | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 72,851 | $ | 72,037 | |||||||||
Unconsolidated statements of income of Salisbury Bancorp, Inc. | ' | ||||||||||||
Statements of Income | 2013 | 2012 | 2011 | ||||||||||
Years ended December 31, (in thousands) | |||||||||||||
Dividends from subsidiary | $ | 2,128 | $ | 2,243 | $ | 2,372 | |||||||
Interest | 27 | 42 | 99 | ||||||||||
Expenses | 394 | 81 | 116 | ||||||||||
Income before taxes and equity in undistributed net income of subsidiary | 1,761 | 2,204 | 2,355 | ||||||||||
Income tax benefit | — | — | — | ||||||||||
Income before equity in undistributed net income of subsidiary | 1,761 | 2,204 | 2,355 | ||||||||||
Equity in undistributed net income of subsidiary | 2,322 | 1,873 | 1,757 | ||||||||||
Net income | $ | 4,083 | $ | 4,077 | $ | 4,112 | |||||||
Unconsolidated statements of cash flows of Salisbury Bancorp, Inc. | ' | ||||||||||||
Statements of Cash Flows | 2013 | 2012 | 2011 | ||||||||||
Years ended December 31, (in thousands) | |||||||||||||
Net income | $ | 4,083 | $ | 4,077 | $ | 4,112 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed net income of subsidiary | (2,322 | ) | (1,873 | ) | (1,757 | ) | |||||||
Accretion of securities | — | — | (11 | ) | |||||||||
Other | 24 | 16 | (3 | ) | |||||||||
Net cash provided by operating activities | 1,785 | 2,220 | 2,341 | ||||||||||
Investing Activities | |||||||||||||
Investment in bank | — | — | (6,466 | ) | |||||||||
Purchases of interest-bearing time deposits of other banks | (738 | ) | — | — | |||||||||
Maturities of securities available-for-sale | — | 1,103 | — | ||||||||||
Net cash (utilized) provided by investing activities | (738 | ) | 1,103 | (6,466 | ) | ||||||||
Financing Activities | |||||||||||||
Common stock dividends paid | (1,915 | ) | (1,892 | ) | (1,891 | ) | |||||||
Preferred stock dividends paid | (161 | ) | (240 | ) | (382 | ) | |||||||
Payment to repurchase Preferred Stock | — | — | (8,816 | ) | |||||||||
Payment to repurchase warrants | — | — | (205 | ) | |||||||||
Proceeds from issuance of Common Stock | 34 | 24 | 28 | ||||||||||
Proceeds from issuance of Preferred Stock | — | — | 16,000 | ||||||||||
Net cash (utilized) provided by financing activities | (2,042 | ) | (2,108 | ) | 4,734 | ||||||||
(Decrease) increase in cash and cash equivalents | (995 | ) | 1,215 | 609 | |||||||||
Cash and cash equivalents, beginning of period | 10,297 | 9,082 | 8,473 | ||||||||||
Cash and cash equivalents, end of period | $ | 9,302 | $ | 10,297 | $ | 9,082 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Calculation of earnings per share | ' | ||||||||||||
Years ended December 31, (in thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Net income | $ | 4,083 | $ | 4,077 | $ | 4,112 | |||||||
Less: Preferred stock net accretion | — | — | (78 | ) | |||||||||
Less: Preferred stock dividends declared | (161 | ) | (216 | ) | (446 | ) | |||||||
Net income available to common shareholders | 3,922 | 3,861 | 3,588 | ||||||||||
Less: Undistributed earnings allocated to participating securities | (39 | ) | — | — | |||||||||
Net income allocated to common stock | $ | 3,883 | $ | 3,861 | $ | 3,588 | |||||||
Common shares issued | 1,710 | 1,690 | 1,689 | ||||||||||
Less: Unvested restricted stock awards | (19 | ) | — | — | |||||||||
Common shares outstanding used to calculate basic earnings per common share | 1,691 | 1,690 | 1,689 | ||||||||||
Add: Dilutive effect of unvested restricted stock awards | — | — | — | ||||||||||
Common shares outstanding used to calculate diluted earnings per common share | 1,691 | 1,690 | 1,689 | ||||||||||
Earnings per common share (basic and diluted) | $ | 2.3 | $ | 2.28 | $ | 2.12 |
SELECTED_QUARTERLY_CONSOLIDATE1
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Selected quarterly consolidated financial data | ' | ||||||||||||||||
Year ended December 31, 2013 | Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | |||||||||||||
(in thousands, except ratios and per share amounts) | |||||||||||||||||
Statement of Income | |||||||||||||||||
Interest and dividend income | $ | 5,406 | $ | 5,434 | $ | 5,431 | $ | 5,479 | |||||||||
Interest expense | 803 | 801 | 772 | 686 | |||||||||||||
Net interest and dividend income | 4,603 | 4,633 | 4,659 | 4,793 | |||||||||||||
Provision for loan losses | 396 | 240 | 240 | 190 | |||||||||||||
Trust and Wealth Advisory | 725 | 824 | 750 | 775 | |||||||||||||
Service charges and fees | 516 | 575 | 595 | 612 | |||||||||||||
Gains on sales of mortgage loans, net | 279 | 153 | 69 | 78 | |||||||||||||
Mortgage servicing, net | 26 | 8 | (37 | ) | 38 | ||||||||||||
Securities gains | — | — | — | — | |||||||||||||
Other | 79 | 90 | 82 | 68 | |||||||||||||
Non-interest income | 1,625 | 1,650 | 1,459 | 1,571 | |||||||||||||
Non-interest expense | 4,705 | 4,610 | 4,643 | 4,977 | |||||||||||||
Income before income taxes | 1,127 | 1,433 | 1,235 | 1,197 | |||||||||||||
Income tax provision | 187 | 289 | 219 | 214 | |||||||||||||
Net income | 940 | 1,144 | 1,016 | 983 | |||||||||||||
Net income available to common shareholders | 900 | 1,103 | 976 | 943 | |||||||||||||
Financial Condition | |||||||||||||||||
Total assets | $ | 597,343 | $ | 600,712 | $ | 589,481 | $ | 587,109 | |||||||||
Loans, net | 406,258 | 416,729 | 420,306 | 438,178 | |||||||||||||
Allowance for loan losses | 4,686 | 4,632 | 4,656 | 4,683 | |||||||||||||
Securities | 124,004 | 111,950 | 105,156 | 99,831 | |||||||||||||
Deposits | 487,773 | 492,040 | 479,869 | 477,369 | |||||||||||||
Repurchase agreements | 2,329 | 2,980 | 3,870 | 2,554 | |||||||||||||
FHLBB advances | 31,574 | 31,187 | 30,801 | 30,411 | |||||||||||||
Shareholders' equity | 72,206 | 71,489 | 71,211 | 72,790 | |||||||||||||
Non-performing assets | 9,297 | 9,639 | 9,737 | 7,549 | |||||||||||||
Per Common Share Data | |||||||||||||||||
Earnings, diluted and basic | $ | 0.53 | $ | 0.65 | $ | 0.57 | $ | 0.55 | |||||||||
Cash dividends declared | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||
Cash dividends paid | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||
Book value | 32.88 | 32.45 | 32.28 | 33.21 | |||||||||||||
Market price: (a) | |||||||||||||||||
High | 26.44 | 28 | 29.95 | 28 | |||||||||||||
Low | 23.55 | 25.18 | 25.52 | 25.5 | |||||||||||||
Statistical Data | |||||||||||||||||
Net interest margin (fully tax equivalent) | 3.54 | % | 3.54 | % | 3.51 | % | 3.71 | % | |||||||||
Efficiency ratio (fully tax equivalent) | 70.93 | 68.88 | 71.72 | 71.77 | |||||||||||||
Return on average assets | 0.61 | 0.74 | 0.64 | 0.64 | |||||||||||||
Return on average shareholders' equity | 6.45 | 7.81 | 7.05 | 6.69 | |||||||||||||
Weighted average equivalent shares outstanding, diluted | 1,690 | 1,691 | 1,691 | 1,691 | |||||||||||||
(a) | The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions. | ||||||||||||||||
Salisbury Bancorp, Inc.'s Common Stock, par value $.10 per share ("Common Stock") trades on the NASDAQ Capital Market under the symbol: SAL. As of March 1, 2014, there were approximately 1,713 shareholders of record of Salisbury's Common Stock. | |||||||||||||||||
Selected quarterly consolidated financial data (unaudited) continued: | |||||||||||||||||
Year ended December 31, 2012 | Q1 2012 | Q2 2012 | Q3 2012 | Q4 2012 | |||||||||||||
(in thousands, except ratios and per share amounts) | |||||||||||||||||
Statement of Income | |||||||||||||||||
Interest and dividend income | $ | 5,858 | $ | 5,766 | $ | 5,607 | $ | 5,426 | |||||||||
Interest expense | 1,175 | 1,080 | 1,035 | 992 | |||||||||||||
Net interest and dividend income | 4,683 | 4,686 | 4,572 | 4,434 | |||||||||||||
Provision for loan losses | 180 | 180 | 330 | 380 | |||||||||||||
Trust and Wealth Advisory | 755 | 735 | 683 | 772 | |||||||||||||
Service charges and fees | 521 | 547 | 559 | 561 | |||||||||||||
Gains on sales of mortgage loans, net | 372 | 263 | 568 | 394 | |||||||||||||
Mortgage servicing, net | (84 | ) | (5 | ) | (9 | ) | 76 | ||||||||||
Securities gains | 12 | 267 | — | — | |||||||||||||
Other | 83 | 83 | 86 | 74 | |||||||||||||
Non-interest income | 1,659 | 1,890 | 1,887 | 1,877 | |||||||||||||
Non-interest expense | 4,500 | 5,026 | 4,693 | 5,334 | |||||||||||||
Income before income taxes | 1,662 | 1,370 | 1,436 | 597 | |||||||||||||
Income tax provision | 412 | 254 | 296 | 26 | |||||||||||||
Net income | 1,250 | 1,116 | 1,140 | 571 | |||||||||||||
Net income available to common shareholders | 1,167 | 1,069 | 1,094 | 531 | |||||||||||||
Financial Condition | |||||||||||||||||
Total assets | $ | 598,950 | $ | 600,857 | $ | 611,037 | $ | 600,813 | |||||||||
Loans, net | 371,709 | 377,212 | 377,377 | 388,758 | |||||||||||||
Allowance for loan losses | 4,166 | 4,208 | 4,179 | 4,360 | |||||||||||||
Securities | 151,666 | 141,409 | 131,412 | 132,034 | |||||||||||||
Deposits | 472,686 | 477,910 | 490,206 | 491,215 | |||||||||||||
Repurchase agreements | 10,359 | 6,181 | 2,941 | 1,784 | |||||||||||||
FHLBB advances | 43,207 | 42,801 | 42,392 | 31,980 | |||||||||||||
Shareholders' equity | 68,067 | 69,126 | 70,374 | 71,997 | |||||||||||||
Non-performing assets | 7,606 | 8,409 | 9,870 | 10,104 | |||||||||||||
Per Common Share Data | |||||||||||||||||
Earnings, diluted and basic | $ | 0.69 | $ | 0.63 | $ | 0.65 | $ | 0.31 | |||||||||
Cash dividends declared | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||
Cash dividends paid | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||
Book value | 30.83 | 31.44 | 32.18 | 33.14 | |||||||||||||
Market price: (a) | |||||||||||||||||
High | 26.95 | 26.49 | 26.39 | 28.47 | |||||||||||||
Low | 22.51 | 23.25 | 23.11 | 23.16 | |||||||||||||
Statistical Data | |||||||||||||||||
Net interest margin (fully tax equivalent) | 3.54 | % | 3.58 | % | 3.39 | % | 3.32 | % | |||||||||
Efficiency ratio (fully tax equivalent) | 66.86 | 66.39 | 66.05 | 71.45 | |||||||||||||
Return on average assets | 0.78 | 0.72 | 0.71 | 0.35 | |||||||||||||
Return on average shareholders' equity | 9.05 | 8.1 | 8.05 | 3.85 | |||||||||||||
Weighted average equivalent shares outstanding, diluted | 1,689 | 1,689 | 1,690 | 1,690 | |||||||||||||
(a) | The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' | ' |
Goodwill from purchase of a branch office | $2,358,000 | $2,358,000 |
Acquisition of Canaan National Bancorp, Inc. | 7,152,000 | 7,152,000 |
Purchase of branch office in New York State | $319,000 | $319,000 |
SECURITIES_Composition_of_Secu
SECURITIES - Composition of Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized cost (1) | ' | ' |
Available-for-sale | ' | ' |
U.S. Treasury notes | $2,497 | $2,496 |
U.S. Government Agency notes | 2,507 | 7,515 |
Municipal bonds | 41,775 | 45,395 |
Mortgage backed securities, U.S. Government Agencies | 33,522 | 47,465 |
Collateralized mortgage obligations, U.S. Government Agencies | 3,545 | 5,131 |
Collateralized mortgage obligations, Non-agency | 7,923 | 11,081 |
SBA bonds | 2,042 | 2,781 |
Preferred Stock | 20 | 20 |
Total securities available-for-sale | 93,831 | 121,884 |
Non-marketable securities | ' | ' |
Federal Home Loan Bank of Boston stock | 5,340 | 5,747 |
Gross unrealized gains | ' | ' |
Available-for-sale | ' | ' |
U.S. Treasury notes | 160 | 237 |
U.S. Government Agency notes | 83 | 211 |
Municipal bonds | 782 | 2,138 |
Mortgage backed securities, U.S. Government Agencies | 442 | 1,284 |
Collateralized mortgage obligations, U.S. Government Agencies | 35 | 66 |
Collateralized mortgage obligations, Non-agency | 401 | 494 |
SBA bonds | 188 | 82 |
Preferred Stock | 777 | 147 |
Total securities available-for-sale | 2,868 | 4,659 |
Non-marketable securities | ' | ' |
Federal Home Loan Bank of Boston stock | ' | ' |
Gross unrealized losses | ' | ' |
Available-for-sale | ' | ' |
U.S. Treasury notes | ' | ' |
U.S. Government Agency notes | ' | ' |
Municipal bonds | -2,120 | -168 |
Mortgage backed securities, U.S. Government Agencies | -72 | -20 |
Collateralized mortgage obligations, U.S. Government Agencies | ' | ' |
Collateralized mortgage obligations, Non-agency | -16 | -68 |
SBA bonds | ' | ' |
Preferred Stock | ' | ' |
Total securities available-for-sale | -2,208 | -256 |
Non-marketable securities | ' | ' |
Federal Home Loan Bank of Boston stock | ' | ' |
Sales of securities | ' | ' |
Available-for-sale | ' | ' |
U.S. Treasury notes | 2,657 | 2,733 |
U.S. Government Agency notes | 2,590 | 7,726 |
Municipal bonds | 40,437 | 47,365 |
Mortgage backed securities, U.S. Government Agencies | 33,892 | 48,729 |
Collateralized mortgage obligations, U.S. Government Agencies | 3,580 | 5,197 |
Collateralized mortgage obligations, Non-agency | 8,308 | 11,507 |
SBA bonds | 2,230 | 2,863 |
Preferred Stock | 797 | 167 |
Total securities available-for-sale | 94,491 | 126,287 |
Non-marketable securities | ' | ' |
Federal Home Loan Bank of Boston stock | $5,340 | $5,747 |
SECURITIES_Sales_of_securities
SECURITIES - Sales of securities available-for-sale and gains realized (Details) (Components of sales of securities, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of sales of securities | ' | ' | ' |
Proceeds | ' | $2,771 | ' |
Gains realized | ' | 267 | ' |
Losses realized | ' | ' | ' |
Net gains realized | ' | 267 | ' |
Income tax provision | ' | $91 | ' |
SECURITIES_Aggreggate_fair_val
SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Less Than 12 Months, Fair value | ' | ' |
Available-for-sale | ' | ' |
Municipal bonds | $19,714 | $839 |
Mortgage backed securities | 15,096 | 3,021 |
Collateralized mortgage obligations, Non-agency | 398 | 612 |
Total temporarily impaired securities | 35,208 | 4,472 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 320 | 535 |
Total temporarily impaired and other-than-temporarily impaired securities | 35,528 | 5,007 |
Less Than 12 Months, Unrealized losses | ' | ' |
Available-for-sale | ' | ' |
Municipal bonds | 1,428 | 20 |
Mortgage backed securities | 20 | 19 |
Collateralized mortgage obligations, Non-agency | 2 | 2 |
Total temporarily impaired securities | 1,450 | 41 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 4 | 6 |
Total temporarily impaired and other-than-temporarily impaired securities | 1,454 | 47 |
12 Months or Longer, Fair value | ' | ' |
Available-for-sale | ' | ' |
Municipal bonds | 2,323 | 2,360 |
Mortgage backed securities | 2,132 | 44 |
Collateralized mortgage obligations, Non-agency | 294 | 901 |
Total temporarily impaired securities | 4,749 | 3,305 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | ' | 1,963 |
Total temporarily impaired and other-than-temporarily impaired securities | 4,749 | 5,268 |
12 Months or Longer, Unrealized losses | ' | ' |
Available-for-sale | ' | ' |
Municipal bonds | 692 | 148 |
Mortgage backed securities | 52 | 1 |
Collateralized mortgage obligations, Non-agency | 10 | 17 |
Total temporarily impaired securities | 754 | 166 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | ' | 43 |
Total temporarily impaired and other-than-temporarily impaired securities | 754 | 209 |
Total, Fair value | ' | ' |
Available-for-sale | ' | ' |
Municipal bonds | 22,037 | 3,199 |
Mortgage backed securities | 17,228 | 3,065 |
Collateralized mortgage obligations, Non-agency | 692 | 1,513 |
Total temporarily impaired securities | 39,957 | 7,777 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 320 | 2,498 |
Total temporarily impaired and other-than-temporarily impaired securities | 40,277 | 10,275 |
Total, Unrealized losses | ' | ' |
Available-for-sale | ' | ' |
Municipal bonds | 2,120 | 168 |
Mortgage backed securities | 72 | 20 |
Collateralized mortgage obligations, Non-agency | 12 | 19 |
Total temporarily impaired securities | 2,204 | 207 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 4 | 49 |
Total temporarily impaired and other-than-temporarily impaired securities | $2,208 | $256 |
SECURITIES_Securities_amortize
SECURITIES - Securities amortized cost; fair value and tax equivalent yield by maturity (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Amortized cost, Within 1 year | ' |
U.S. Government Agency notes | ' |
Municipal bonds | 3,686 |
Fair value, Within 1 year | ' |
U.S. Government Agency notes | ' |
Municipal bonds | 3,935 |
Yield, Within 1 year | ' |
U.S. Government Agency notes | ' |
Municipal bonds, Yield | 6.90% |
Amortized cost, After 1 year but within 5 years | ' |
U.S. Treasury notes | 2,497 |
Municipal bonds | 4,095 |
Fair value, After 1 year but within 5 years | ' |
U.S. Treasury notes | 2,657 |
Municipal bonds | 4,486 |
Yield, After 1 year but within 5 years | ' |
U.S. Treasury notes, Yield | 3.00% |
Municipal bonds, Yield | 6.84% |
Amortized cost, After 5 years but within 10 years | ' |
Municipal bonds | 2,140 |
Fair value, After 5 years but within 10 years | ' |
Municipal bonds | 2,171 |
Yield, After 5 years but within 10 years | ' |
Municipal bonds, Yield | 6.33% |
Amortized cost, After 10 years but within 15 years | ' |
Municipal bonds | 1,832 |
Fair value, After 10 years but within 15 years | ' |
Municipal bonds | 1,826 |
Yield, After 10 years but within 15 years | ' |
Municipal bonds, Yield | 6.25% |
Amortized cost, After 15 years | ' |
U.S. Government Agency notes | 2,507 |
Municipal bonds | 30,022 |
Fair value, After 15 years | ' |
U.S. Government Agency notes | 2,590 |
Municipal bonds | 28,019 |
Yield, After 15 years | ' |
U.S. Government Agency notes, Yield | 5.38% |
Municipal bonds, Yield | 6.60% |
Amortized cost, total | ' |
U.S. Government Agency notes | 2,507 |
Municipal bonds | 41,775 |
Mortgage-backed securities, U.S. Government Agency | 33,522 |
Collateralized mortgage obligations, U.S. Government Agency | 3,545 |
Collateralized mortgage obligations, Non-agency | 7,923 |
SBA bonds | 2,042 |
Preferred Stock | 20 |
Securities available-for-sale | 93,831 |
Fair value, total | ' |
U.S. Government Agency notes | 2,590 |
Municipal bonds | 40,437 |
Mortgage-backed securities, U.S. Government Agency | 33,892 |
Collateralized mortgage obligations, U.S. Government Agency | 3,580 |
Collateralized mortgage obligations, Non-agency | 8,308 |
SBA bonds | 2,230 |
Preferred Stock | 797 |
Securities available-for-sale | $94,491 |
Yield, total | ' |
U.S. Government Agency notes, Yield | 5.38% |
Municipal bonds, Yield | 6.62% |
Mortgage-backed securities, U.S. Government Agency, Yield | 3.47% |
Collateralized mortgage obligations, U.S. Government Agency, Yield | 1.19% |
Collateralized mortgage obligations, Non-agency, Yield | 4.51% |
SBA bonds, Yield | 2.57% |
Preferred Stock, Yield | 3.58% |
Securities available-for-sale, Yield | 4.89% |
SECURITIES_Securities_for_whic
SECURITIES - Securities for which an OTTI has been recognized (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Non-Agency CMOs | ' | ' |
OTTI losses (unrealized and realized) | ' | ' |
Less: unrealized OTTI recognized in other comprehensive (loss) income | ' | ' |
Net impairment losses recognized in earnings | ' | ' |
SECURITIES_Activity_related_to
SECURITIES - Activity related to credit losses recognized into earnings (Details) (Activity related to credit losses recognized into earnings, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Activity related to credit losses recognized into earnings | ' | ' |
Balance, beginning of period | $1,128 | $1,128 |
Credit component on debt securities in which OTTI was not previously recognized | ' | ' |
Balance, end of period | $1,128 | $1,128 |
SECURITIES_Details_Narrative
SECURITIES (Details Narrative) (USD $) | 12 Months Ended |
Dec. 31, 2009 | |
Investments, Debt and Equity Securities [Abstract] | ' |
Recognized losses for deterioration in credit quality | $1,128 |
LOANS_Composition_of_loans_rec
LOANS - Composition of loans receivable and loans held-for-sale (Details) (Composition of loans receivable and loans held-for-sale, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Composition of loans receivable and loans held-for-sale | ' | ' |
Residential 1-4 family | $231,113 | $198,552 |
Residential 5+ multifamily | 4,848 | 3,889 |
Construction of residential 1-4 family | 1,876 | 2,379 |
Home equity credit | 34,139 | 34,162 |
Residential real estate | 271,976 | 238,982 |
Commercial | 91,853 | 87,382 |
Construction of commercial | 10,948 | 5,823 |
Commercial real estate | 102,801 | 93,205 |
Farm land | 3,402 | 4,320 |
Vacant land | 9,067 | 9,926 |
Real estate secured | 387,246 | 346,433 |
Commercial and industrial | 46,292 | 38,094 |
Municipal | 4,252 | 3,378 |
Consumer | 3,889 | 4,181 |
Loans receivable, gross | 441,679 | 392,086 |
Deferred loan origination fees and costs, net | 1,182 | 1,032 |
Allowance for loan losses | -4,683 | -4,360 |
Loans receivable, net | 438,178 | 388,758 |
Loans held-for-sale | ' | ' |
Residential 1-4 family | $173 | $1,879 |
LOANS_Composition_of_loans_rec1
LOANS - Composition of loans receivable by risk rating grade (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Pass | ' | ' |
Residential 1-4 family | $212,683 | $180,442 |
Residential 5+ multifamily | 2,674 | 2,872 |
Construction of residential 1-4 family | 1,876 | 1,570 |
Home equity credit | 31,444 | 30,981 |
Residential real estate | 248,677 | 215,865 |
Commercial | 67,554 | 64,817 |
Construction of commercial | 10,257 | 5,055 |
Commercial real estate | 77,811 | 69,872 |
Farm land | 847 | 2,799 |
Vacant land | 5,640 | 4,885 |
Real estate secured | 332,975 | 293,421 |
Commercial and industrial | 37,860 | 28,453 |
Municipal | 4,252 | 3,378 |
Consumer | 3,739 | 3,994 |
Loans receivable, gross | 378,826 | 329,246 |
Special mention | ' | ' |
Residential 1-4 family | 12,338 | 12,473 |
Residential 5+ multifamily | 1,199 | 773 |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 1,355 | 1,848 |
Residential real estate | 14,892 | 15,094 |
Commercial | 16,044 | 13,299 |
Construction of commercial | 102 | 297 |
Commercial real estate | 16,146 | 13,596 |
Farm land | 1,421 | 341 |
Vacant land | 288 | 863 |
Real estate secured | 32,747 | 29,894 |
Commercial and industrial | 7,452 | 8,300 |
Municipal | ' | ' |
Consumer | 113 | 159 |
Loans receivable, gross | 40,312 | 38,353 |
Substandard | ' | ' |
Residential 1-4 family | 5,997 | 5,538 |
Residential 5+ multifamily | 975 | 244 |
Construction of residential 1-4 family | ' | 809 |
Home equity credit | 1,340 | 1,333 |
Residential real estate | 8,312 | 7,924 |
Commercial | 8,255 | 9,266 |
Construction of commercial | 589 | 471 |
Commercial real estate | 8,844 | 9,737 |
Farm land | 1,134 | 1,180 |
Vacant land | 3,139 | 4,178 |
Real estate secured | 21,429 | 23,019 |
Commercial and industrial | 980 | 1,341 |
Municipal | ' | ' |
Consumer | 37 | 28 |
Loans receivable, gross | 22,446 | 24,388 |
Doubtful | ' | ' |
Residential 1-4 family | 95 | 99 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | ' | ' |
Residential real estate | 95 | 99 |
Commercial | ' | ' |
Construction of commercial | ' | ' |
Commercial real estate | ' | ' |
Farm land | ' | ' |
Vacant land | ' | ' |
Real estate secured | 95 | 99 |
Commercial and industrial | ' | ' |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | 95 | 99 |
Loss | ' | ' |
Residential 1-4 family | ' | ' |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | ' | ' |
Residential real estate | ' | ' |
Commercial | ' | ' |
Construction of commercial | ' | ' |
Commercial real estate | ' | ' |
Farm land | ' | ' |
Vacant land | ' | ' |
Real estate secured | ' | ' |
Commercial and industrial | ' | ' |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | ' | ' |
Total | ' | ' |
Residential 1-4 family | 231,113 | 198,552 |
Residential 5+ multifamily | 4,848 | 3,889 |
Construction of residential 1-4 family | 1,876 | 2,379 |
Home equity credit | 34,139 | 34,162 |
Residential real estate | 271,976 | 238,982 |
Commercial | 91,853 | 87,382 |
Construction of commercial | 10,948 | 5,823 |
Commercial real estate | 102,801 | 93,205 |
Farm land | 3,402 | 4,320 |
Vacant land | 9,067 | 9,926 |
Real estate secured | 387,246 | 346,433 |
Commercial and industrial | 46,292 | 38,094 |
Municipal | 4,252 | 3,378 |
Consumer | 3,889 | 4,181 |
Loans receivable, gross | $441,679 | $392,086 |
LOANS_Composition_of_loans_rec2
LOANS - Composition of loans receivable by delinquency status (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current | ' | ' |
Residential 1-4 family | $222,356 | $190,488 |
Residential 5+ multifamily | 4,749 | 3,889 |
Construction of residential 1-4 family | 1,876 | 2,379 |
Home equity credit | 33,391 | 32,540 |
Residential real estate | 262,372 | 229,296 |
Commercial | 89,434 | 83,477 |
Construction of commercial | 9,784 | 5,659 |
Commercial real estate | 99,218 | 89,136 |
Farm land | 2,995 | 3,898 |
Vacant land | 6,058 | 5,932 |
Real estate secured | 370,643 | 328,262 |
Commercial and industrial | 45,897 | 37,618 |
Municipal | 4,252 | 3,378 |
Consumer | 3,746 | 4,034 |
Loans receivable, gross | 424,538 | 373,292 |
Past due 1-29 days | ' | ' |
Residential 1-4 family | 3,853 | 2,545 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 129 | 890 |
Residential real estate | 3,982 | 3,435 |
Commercial | 566 | 864 |
Construction of commercial | 1,025 | ' |
Commercial real estate | 1,591 | 864 |
Farm land | 23 | 422 |
Vacant land | 139 | ' |
Real estate secured | 5,735 | 4,721 |
Commercial and industrial | 262 | 351 |
Municipal | ' | ' |
Consumer | 113 | 108 |
Loans receivable, gross | 6,110 | 5,180 |
Past due 30-59 days | ' | ' |
Residential 1-4 family | 1,795 | 3,578 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 361 | 113 |
Residential real estate | 2,156 | 3,691 |
Commercial | 371 | 1,104 |
Construction of commercial | ' | 164 |
Commercial real estate | 371 | 1,268 |
Farm land | ' | ' |
Vacant land | ' | ' |
Real estate secured | 2,527 | 4,959 |
Commercial and industrial | 112 | 26 |
Municipal | ' | ' |
Consumer | 29 | 25 |
Loans receivable, gross | 2,668 | 5,010 |
Past due 60-89 days | ' | ' |
Residential 1-4 family | 2,622 | 639 |
Residential 5+ multifamily | 99 | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 125 | 396 |
Residential real estate | 2,846 | 1,035 |
Commercial | 108 | 566 |
Construction of commercial | 139 | ' |
Commercial real estate | 247 | 566 |
Farm land | ' | ' |
Vacant land | ' | 48 |
Real estate secured | 3,093 | 1,649 |
Commercial and industrial | ' | 99 |
Municipal | ' | ' |
Consumer | 1 | 14 |
Loans receivable, gross | 3,094 | 1,762 |
Past due 90-179 days | ' | ' |
Residential 1-4 family | 353 | 1,185 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | ' | ' |
Residential real estate | 353 | 1,185 |
Commercial | 235 | 58 |
Construction of commercial | ' | ' |
Commercial real estate | 235 | 58 |
Farm land | ' | ' |
Vacant land | ' | 740 |
Real estate secured | 588 | 1,983 |
Commercial and industrial | ' | ' |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | 588 | 1,983 |
Past due 180 days and over | ' | ' |
Residential 1-4 family | 134 | 117 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 133 | 223 |
Residential real estate | 267 | 340 |
Commercial | 1,139 | 1,313 |
Construction of commercial | ' | ' |
Commercial real estate | 1,139 | 1,313 |
Farm land | 384 | ' |
Vacant land | 2,870 | 3,206 |
Real estate secured | 4,660 | 4,859 |
Commercial and industrial | 21 | ' |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | 4,681 | 4,859 |
Past due 30 days and over | ' | ' |
Residential 1-4 family | 4,904 | 5,519 |
Residential 5+ multifamily | 99 | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 619 | 732 |
Residential real estate | 5,622 | 6,251 |
Commercial | 1,853 | 3,041 |
Construction of commercial | 139 | 164 |
Commercial real estate | 1,992 | 3,205 |
Farm land | 384 | ' |
Vacant land | 2,870 | 3,994 |
Real estate secured | 10,868 | 13,450 |
Commercial and industrial | 133 | 125 |
Municipal | ' | ' |
Consumer | 30 | 39 |
Loans receivable, gross | 11,031 | 13,614 |
Accruing 90 days and over | ' | ' |
Residential 1-4 family | ' | ' |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | ' | ' |
Residential real estate | ' | ' |
Commercial | ' | ' |
Construction of commercial | ' | ' |
Commercial real estate | ' | ' |
Farm land | ' | ' |
Vacant land | ' | ' |
Real estate secured | ' | ' |
Commercial and industrial | ' | ' |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | ' | ' |
Non-accrual | ' | ' |
Residential 1-4 family | 1,525 | 3,024 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 402 | 442 |
Residential real estate | 1,927 | 3,466 |
Commercial | 1,857 | 2,214 |
Construction of commercial | ' | 21 |
Commercial real estate | 1,857 | 2,235 |
Farm land | 384 | ' |
Vacant land | 2,870 | 3,995 |
Real estate secured | 7,038 | 9,696 |
Commercial and industrial | 134 | 164 |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | $7,172 | $9,860 |
LOANS_Troubled_debt_restructur
LOANS - Troubled debt restructurings (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Integer | Integer |
Residential real estate | ' | ' |
Quantity of troubled debt restructurings | 6 | 9 |
Pre-modification balance | $2,434 | $2,002 |
Post-modification balance | 2,434 | 2,002 |
Land | ' | ' |
Quantity of troubled debt restructurings | 2 | ' |
Pre-modification balance | 225 | ' |
Post-modification balance | 225 | ' |
Commercial real estate | ' | ' |
Quantity of troubled debt restructurings | ' | 4 |
Pre-modification balance | ' | 1,871 |
Post-modification balance | ' | 1,871 |
Consumer | ' | ' |
Quantity of troubled debt restructurings | 1 | ' |
Pre-modification balance | 22 | ' |
Post-modification balance | 22 | ' |
Commercial and industrial | ' | ' |
Quantity of troubled debt restructurings | 1 | 4 |
Pre-modification balance | 91 | 528 |
Post-modification balance | 91 | 528 |
Total Troubled debt restructurings | ' | ' |
Quantity of troubled debt restructurings | 10 | 17 |
Pre-modification balance | 2,772 | 4,401 |
Post-modification balance | 2,772 | 4,401 |
Rate reduction and term extension | ' | ' |
Quantity of troubled debt restructurings | 5 | 3 |
Pre-modification balance | 813 | 513 |
Post-modification balance | 813 | 513 |
Interest only pursuant to sale | ' | ' |
Quantity of troubled debt restructurings | 1 | ' |
Pre-modification balance | 40 | ' |
Post-modification balance | 40 | ' |
Debt consolidation and term extension | ' | ' |
Quantity of troubled debt restructurings | ' | 4 |
Pre-modification balance | ' | 2,276 |
Post-modification balance | ' | 2,276 |
Rate reduction | ' | ' |
Quantity of troubled debt restructurings | 2 | 3 |
Pre-modification balance | 1,070 | 727 |
Post-modification balance | 1,070 | 727 |
Rate reduction interest only | ' | ' |
Quantity of troubled debt restructurings | 1 | 2 |
Pre-modification balance | 758 | 625 |
Post-modification balance | 758 | 625 |
Debt consolidation, rate reduction and term extension, note bifurcation | ' | ' |
Quantity of troubled debt restructurings | ' | 1 |
Pre-modification balance | ' | 99 |
Post-modification balance | ' | 99 |
Rate reduction and debt consolidation | ' | ' |
Quantity of troubled debt restructurings | 1 | ' |
Pre-modification balance | 91 | ' |
Post-modification balance | 91 | ' |
Refinance | ' | ' |
Quantity of troubled debt restructurings | ' | 1 |
Pre-modification balance | ' | 80 |
Post-modification balance | ' | 80 |
Modification pursuant to bankruptcy | ' | ' |
Quantity of troubled debt restructurings | ' | 1 |
Pre-modification balance | ' | 34 |
Post-modification balance | ' | 34 |
Seasonal interest only concession | ' | ' |
Quantity of troubled debt restructurings | ' | 1 |
Pre-modification balance | ' | 26 |
Post-modification balance | ' | 26 |
Term extension | ' | ' |
Quantity of troubled debt restructurings | ' | 1 |
Pre-modification balance | ' | 21 |
Post-modification balance | ' | $21 |
LOANS_Components_of_impaired_l
LOANS - Components of impaired loans (Details) (Components of impaired loans, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Components of impaired loans | ' | ' |
Non-accrual loans, excluding troubled debt restructured loans | $5,419 | $7,579 |
Non-accrual troubled debt restructured loans | 1,753 | 2,280 |
Accruing troubled debt restructured loans | 8,500 | 6,703 |
Total impaired loans | 15,672 | 16,562 |
Commitments to lend additional amounts to impaired borrowers | ' | ' |
LOANS_Changes_in_allowance_for
LOANS - Changes in allowance for loan losses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Totals | $4,683 | $4,360 | ' |
Beginning balance | ' | ' | ' |
Residential | 1,934 | 1,479 | 1,504 |
Commercial | 1,059 | 1,139 | 1,132 |
Land | 300 | 409 | 392 |
Real estate | 3,293 | 3,027 | 3,028 |
Commercial & industrial | 499 | 704 | 540 |
Municipal | 36 | 24 | 51 |
Consumer | 92 | 79 | 164 |
Unallocated | 440 | 242 | 137 |
Totals | 4,360 | 4,076 | 3,920 |
Provision | ' | ' | ' |
Residential | 275 | 688 | 329 |
Commercial | 528 | -52 | 258 |
Land | 147 | 167 | 371 |
Real estate | 950 | 803 | 958 |
Commercial & industrial | 65 | -21 | 315 |
Municipal | 7 | 12 | -27 |
Consumer | 59 | 78 | 89 |
Unallocated | -15 | 198 | 105 |
Totals | 1,066 | 1,070 | 1,440 |
Charge-offs | ' | ' | ' |
Residential | -271 | -233 | -357 |
Commercial | -208 | -64 | -274 |
Land | -221 | -276 | -354 |
Real estate | -700 | -573 | -985 |
Commercial & industrial | -4 | -222 | -180 |
Municipal | ' | ' | ' |
Consumer | -70 | -91 | -201 |
Unallocated | ' | ' | ' |
Totals | -774 | -886 | -1,366 |
Recoveries | ' | ' | ' |
Residential | ' | ' | 3 |
Commercial | 6 | 36 | 23 |
Land | ' | ' | ' |
Real estate | 6 | 36 | 26 |
Commercial & industrial | 1 | 38 | 29 |
Municipal | ' | ' | ' |
Consumer | 24 | 26 | 27 |
Unallocated | ' | ' | ' |
Totals | 31 | 100 | 82 |
Ending balance | ' | ' | ' |
Residential | 1,938 | 1,934 | 1,479 |
Commercial | 1,385 | 1,059 | 1,139 |
Land | 226 | 300 | 409 |
Real estate | 3,549 | 3,293 | 3,027 |
Commercial & industrial | 561 | 499 | 704 |
Municipal | 43 | 36 | 24 |
Consumer | 105 | 92 | 79 |
Unallocated | 425 | 440 | 242 |
Totals | $4,683 | $4,360 | $4,076 |
LOANS_Composition_of_loans_rec3
LOANS - Composition of loans receivable and allowance for loan losses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Collectively evaluated Loans | ' | ' |
Residential 1-4 family | $225,419 | $191,886 |
Residential 5+ multifamily | 3,894 | 2,913 |
Construction of residential 1-4 family | 1,876 | 2,379 |
Home equity credit | 33,689 | 33,697 |
Residential real estate | 264,878 | 230,875 |
Commercial | 87,059 | 81,635 |
Construction of commercial | 10,948 | 5,802 |
Commercial real estate | 98,007 | 87,437 |
Farm land | 3,018 | 4,320 |
Vacant land | 5,972 | 5,795 |
Real estate secured | 371,875 | 328,427 |
Commercial and industrial | 45,584 | 37,073 |
Municipal | 4,252 | 3,378 |
Consumer | 3,710 | 4,061 |
Unallocated allowance | ' | ' |
Totals | 425,421 | 372,939 |
Collectively evaluated Allowance | ' | ' |
Residential 1-4 family | 897 | 743 |
Residential 5+ multifamily | 20 | 22 |
Construction of residential 1-4 family | 11 | 10 |
Home equity credit | 363 | 365 |
Residential real estate | 1,291 | 1,140 |
Commercial | 977 | 931 |
Construction of commercial | 126 | 64 |
Commercial real estate | 1,103 | 995 |
Farm land | 61 | 66 |
Vacant land | 64 | 70 |
Real estate secured | 2,519 | 2,271 |
Commercial and industrial | 519 | 467 |
Municipal | 43 | 36 |
Consumer | 36 | 39 |
Unallocated allowance | ' | ' |
Totals | 3,117 | 2,813 |
Individually evaluated Loans | ' | ' |
Residential 1-4 family | 5,694 | 6,666 |
Residential 5+ multifamily | 954 | 976 |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 450 | 465 |
Residential real estate | 7,098 | 8,107 |
Commercial | 4,794 | 5,747 |
Construction of commercial | ' | 21 |
Commercial real estate | 4,794 | 5,768 |
Farm land | 384 | ' |
Vacant land | 3,095 | 4,131 |
Real estate secured | 15,371 | 18,006 |
Commercial and industrial | 708 | 1,021 |
Municipal | ' | ' |
Consumer | 179 | 120 |
Unallocated allowance | ' | ' |
Totals | 16,258 | 19,147 |
Individually evaluated Allowance | ' | ' |
Residential 1-4 family | 617 | 652 |
Residential 5+ multifamily | ' | 50 |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 30 | 92 |
Residential real estate | 647 | 794 |
Commercial | 282 | 64 |
Construction of commercial | ' | ' |
Commercial real estate | 282 | 64 |
Farm land | ' | ' |
Vacant land | 101 | 164 |
Real estate secured | 1,030 | 1,022 |
Commercial and industrial | 42 | 32 |
Municipal | ' | ' |
Consumer | 69 | 53 |
Unallocated allowance | ' | ' |
Totals | 1,141 | 1,107 |
Total portfolio Loans | ' | ' |
Residential 1-4 family | 231,113 | 198,552 |
Residential 5+ multifamily | 4,848 | 3,889 |
Construction of residential 1-4 family | 1,876 | 2,379 |
Home equity credit | 34,139 | 34,162 |
Residential real estate | 271,976 | 238,982 |
Commercial | 91,853 | 87,382 |
Construction of commercial | 10,948 | 8,523 |
Commercial real estate | 102,801 | 93,205 |
Farm land | 3,402 | 4,320 |
Vacant land | 9,067 | 9,926 |
Real estate secured | 387,246 | 346,433 |
Commercial and industrial | 46,292 | 38,094 |
Municipal | 4,252 | 3,378 |
Consumer | 3,889 | 4,181 |
Unallocated allowance | ' | ' |
Totals | 441,679 | 392,086 |
Total portfolio Allowance | ' | ' |
Residential 1-4 family | 1,514 | 1,395 |
Residential 5+ multifamily | 20 | 72 |
Construction of residential 1-4 family | 11 | 10 |
Home equity credit | 393 | 457 |
Residential real estate | 1,938 | 1,934 |
Commercial | 1,259 | 995 |
Construction of commercial | 126 | 64 |
Commercial real estate | 1,385 | 1,059 |
Farm land | 61 | 66 |
Vacant land | 165 | 234 |
Real estate secured | 3,549 | 3,293 |
Commercial and industrial | 561 | 499 |
Municipal | 43 | 36 |
Consumer | 105 | 92 |
Unallocated allowance | 425 | 440 |
Totals | $4,683 | $4,360 |
LOANS_Credit_quality_segments_
LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Collectively evaluated Loans | ' | ' |
Performing loans | $416,734 | ' |
Potential problem loans | 8,687 | ' |
Impaired loans | ' | ' |
Unallocated allowance | ' | ' |
Totals | 425,421 | 372,939 |
Collectively evaluated Allowance | ' | ' |
Performing loans | 2,835 | ' |
Potential problem loans | 282 | ' |
Impaired loans | ' | ' |
Unallocated allowance | ' | ' |
Totals | 3,117 | 2,813 |
Individually evaluated Loans | ' | ' |
Performing loans | 157 | ' |
Potential problem loans | 429 | ' |
Impaired loans | 15,672 | ' |
Unallocated allowance | ' | ' |
Totals | 16,258 | 19,147 |
Individually evaluated Allowance | ' | ' |
Performing loans | 69 | ' |
Potential problem loans | 19 | ' |
Impaired loans | 1,053 | ' |
Unallocated allowance | ' | ' |
Totals | 1,141 | 1,107 |
Total portfolio Loans | ' | ' |
Performing loans | 416,891 | ' |
Potential problem loans | 9,116 | ' |
Impaired loans | 15,672 | ' |
Unallocated allowance | ' | ' |
Totals | 441,679 | 392,086 |
Total portfolio Allowance | ' | ' |
Performing loans | 2,904 | ' |
Potential problem loans | 301 | ' |
Impaired loans | 1,053 | ' |
Unallocated allowance | 425 | ' |
Totals | $4,683 | $4,360 |
LOANS_Certain_data_with_respec
LOANS - Certain data with respect to loans individually evaluated for impairment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Impaired loans with specific allowance - Loan balance - Book | ' | ' |
Residential 1-4 family | $4,409 | $3,857 |
Home equity credit | 72 | 351 |
Residential real estate | 4,481 | 4,208 |
Commercial | 2,777 | 1,629 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | 3,095 | 3,186 |
Real estate secured | 10,353 | 9,023 |
Commercial and industrial | 119 | 335 |
Consumer | ' | ' |
Totals | 10,472 | 9,358 |
Impaired loans with specific allowance - Loan balance - Note | ' | ' |
Residential 1-4 family | 4,516 | 3,925 |
Home equity credit | 72 | 351 |
Residential real estate | 4,588 | 4,276 |
Commercial | 2,835 | 1,784 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | 3,889 | 3,387 |
Real estate secured | 11,312 | 9,447 |
Commercial and industrial | 154 | 368 |
Consumer | ' | ' |
Totals | 11,466 | 9,815 |
Impaired loans with specific allowance - Loan balance - Average | ' | ' |
Residential 1-4 family | 3,995 | 2,404 |
Home equity credit | 101 | 146 |
Residential real estate | 4,096 | 2,550 |
Commercial | 2,349 | 1,925 |
Commercial construction | 3 | ' |
Farm land | ' | ' |
Vacant land | 1,853 | 1,455 |
Real estate secured | 8,301 | 5,930 |
Commercial and industrial | 233 | 833 |
Consumer | ' | ' |
Totals | 8,534 | 6,763 |
Impaired loans with specific allowance - Specific allowance | ' | ' |
Residential 1-4 family | 598 | 578 |
Home equity credit | 30 | 92 |
Residential real estate | 628 | 670 |
Commercial | 282 | 64 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | 101 | 158 |
Real estate secured | 1,011 | 892 |
Commercial and industrial | 42 | 32 |
Consumer | ' | ' |
Totals | 1,053 | 924 |
Impaired loans with specific allowance - Income recognized | ' | ' |
Residential 1-4 family | 99 | 77 |
Home equity credit | 2 | ' |
Residential real estate | 101 | 77 |
Commercial | 127 | 60 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | ' | ' |
Real estate secured | 228 | 137 |
Commercial and industrial | 1 | 13 |
Consumer | ' | ' |
Totals | 229 | 150 |
Impaired loans with no specific allowance - Loan balance - Book | ' | ' |
Residential 1-4 family | 2,073 | 2,263 |
Home equity credit | 378 | 91 |
Residential real estate | 2,451 | 2,354 |
Commercial | 1,771 | 3,381 |
Commercial construction | ' | ' |
Farm land | 384 | ' |
Vacant land | ' | 808 |
Real estate secured | 4,606 | 6,543 |
Commercial and industrial | 573 | 661 |
Consumer | 22 | ' |
Totals | 5,201 | 7,204 |
Impaired loans with no specific allowance - Loan balance - Note | ' | ' |
Residential 1-4 family | 2,522 | 2,460 |
Home equity credit | 428 | 93 |
Residential real estate | 2,950 | 2,553 |
Commercial | 2,299 | 3,576 |
Commercial construction | 20 | ' |
Farm land | 384 | ' |
Vacant land | 100 | 1,467 |
Real estate secured | 5,753 | 7,596 |
Commercial and industrial | 975 | 1,063 |
Consumer | 22 | ' |
Totals | 6,750 | 8,659 |
Impaired loans with no specific allowance - Loan balance - Average | ' | ' |
Residential 1-4 family | 2,285 | 1,601 |
Home equity credit | 251 | 203 |
Residential real estate | 2,536 | 1,804 |
Commercial | 2,411 | 3,122 |
Commercial construction | 8 | ' |
Farm land | 118 | ' |
Vacant land | 1,430 | 2,358 |
Real estate secured | 6,503 | 7,284 |
Commercial and industrial | 595 | 854 |
Consumer | ' | ' |
Totals | 7,098 | 8,138 |
Impaired loans with no specific allowance - Income recognized | ' | ' |
Residential 1-4 family | 54 | 34 |
Home equity credit | 4 | ' |
Residential real estate | 58 | 34 |
Commercial | 47 | 82 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | ' | 4 |
Real estate secured | 105 | 120 |
Commercial and industrial | 36 | 31 |
Consumer | ' | ' |
Totals | $141 | $151 |
LOANS_Details_Narrative
LOANS (Details Narrative) (Loans Details, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loans Details | ' | ' | ' |
Commercial loans for other banks serviced by Company under loan participation agreements | $24,222 | $1,847 | ' |
Original balances of participation loans | 22,632 | ' | ' |
Purchase of a participation portion of one commercial line of credit | 73 | ' | ' |
Interest on non-accrual loans that would have been recorded as additional interest income had the loans been current | 552 | 507 | 700 |
Restructured loan, past due 30-59 days | 64 | ' | ' |
Restructured loan, past due 90-179 days | $449 | ' | ' |
MORTGAGE_SERVICING_RIGHTS_Bala
MORTGAGE SERVICING RIGHTS - Balance of loans serviced for others and fair value of mortgage servicing rights (Details) (Balance of loans serviced for others and fair value of mortgage servicing rights, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Balance of loans serviced for others and fair value of mortgage servicing rights | ' | ' |
Residential mortgage loans serviced for others | $146,258 | $145,934 |
Fair value of mortgage servicing rights | $1,579 | $1,159 |
MORTGAGE_SERVICING_RIGHTS_Chan
MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) (Changes in mortgage servicing rights, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in mortgage servicing rights | ' | ' | ' |
Loan Servicing Rights | ' | ' | ' |
Balance, beginning of period | $1,075 | $772 | $683 |
Originated | 294 | 682 | 329 |
Amortization (1) | -389 | -379 | -240 |
Balance, end of period | 980 | 1,075 | 772 |
Valuation Allowance | ' | ' | ' |
Balance, beginning of period | -38 | -22 | -10 |
Decrease (Increase) in impairment reserve (1) | 23 | -16 | -12 |
Balance, end of period | -15 | -38 | -22 |
Loan servicing rights, net | $965 | $1,037 | $750 |
PLEDGED_ASSETS_Securities_and_
PLEDGED ASSETS - Securities and loans pledged (Details) (Securities and loans pledged, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Securities and loans pledged | ' | ' |
Securities available-for-sale (at fair value) | $57,623 | $54,497 |
Loans receivable | 130,574 | 106,457 |
Total pledged assets | $188,197 | $160,954 |
PLEDGED_ASSETS_Details_Narrati
PLEDGED ASSETS (Details Narrative) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Guarantees [Abstract] | ' |
Securities pledged to secure public deposits | $46,400 |
Securities pledged to secure repurchase agreements | 11,100 |
Securities pledged to secure FHLBB and FRB advances | $100 |
BANK_PREMISES_AND_EQUIPMENT_Co
BANK PREMISES AND EQUIPMENT - Components of premises and equipment (Details) (Components of premises and equipment, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components of premises and equipment | ' | ' |
Land | $2,137 | $2,137 |
Buildings and improvements | 9,655 | 9,658 |
Leasehold improvements | 706 | 706 |
Capital lease | 425 | ' |
Furniture, fixtures, equipment and software | 5,713 | 5,392 |
Construction in progress, including land acquisition and development | 132 | 44 |
Total cost | 18,768 | 17,937 |
Accumulated depreciation and amortization | -7,157 | -6,417 |
Bank premises and equipment, net | $11,611 | $11,520 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS - Changes in carrying values of goodwill and intangible assets (Details) (Changes in carrying values of goodwill and intangible assets, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in carrying values of goodwill and intangible assets | ' | ' | ' |
Goodwill (1) | ' | ' | ' |
Balance, beginning of period | $9,829 | $9,829 | $9,829 |
Additions | ' | ' | ' |
Impairment | ' | ' | ' |
Balance, end of period | 9,829 | 9,829 | 9,829 |
Core Deposit Intangibles | ' | ' | ' |
Cost, beginning of period | 2,543 | 2,543 | 2,543 |
Additions | ' | ' | ' |
Impairment | ' | ' | ' |
Cost, end of period | 2,543 | 2,543 | 2,543 |
Amortization | ' | ' | ' |
Amortization, beginning of period | -1,745 | -1,523 | -1,301 |
Amortization | -222 | -222 | -222 |
Amortization, end of period | -1,967 | -1,745 | -1,523 |
Core deposit intangibles, net | $576 | $798 | $1,020 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS - Estimated annual amortization expense of core deposit intangibles (Details) (Estimated annual amortization expense of core deposit intangibles, USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated annual amortization expense of core deposit intangibles | ' | ' | ' | ' |
Core deposit intangibles amortization | $66 | $154 | $154 | $202 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS (Details Narrative) (USD $) | Jan. 31, 2014 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | Goodwill and Intangible Assets Details | |
Deposits assumed from Canaan branch office acquisition | $19,000 | $11,000 |
Loans acquired from Canaan branch office acquisition | ' | 2,500 |
Core deposit intangible assigned to acquisition | ' | $463 |
DEPOSITS_Scheduled_maturities_
DEPOSITS - Scheduled maturities of time certificates of deposit (Details) (USD $) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |||||
Banking and Thrift [Abstract] | ' | ' | ' | ' | ' |
Certificates of deposit maturities | $5,242 | $3,336 | $8,311 | $13,677 | $52,473 |
Total | $83,039 | ' | ' | ' | ' |
DEPOSITS_Total_amount_and_sche
DEPOSITS - Total amount and scheduled maturities of time certificates of deposit (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Banking and Thrift [Abstract] | ' | ' |
Less than three months | $6,279 | $6,094 |
Within three-to-six months | 5,834 | 4,416 |
Within six-to-twelve months | 7,450 | 9,166 |
Over one year | 14,804 | 15,458 |
Total | $34,367 | $35,134 |
SECURITIES_SOLD_UNDER_AGREEMEN2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities sold under repurchase agreements (Details) (Securities sold under repurchase agreements, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Securities sold under repurchase agreements | ' | ' |
Repurchase agreements, ending balance | $2,554 | $1,784 |
Repurchase agreements, average balance during period | 3,035 | 5,879 |
Book value of collateral | 11,020 | 9,942 |
Market value of collateral | $11,106 | $10,128 |
Weighted average rate during period | 0.19% | 0.39% |
Weighted average maturity | '1 day | '1 day |
FEDERAL_HOME_LOAN_BANK_OF_BOST2
FEDERAL HOME LOAN BANK OF BOSTON ADVANCES - Federal Home Loan Bank of Boston ("FHLBB") advances (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total | ' | ' |
2013 advances | ' | $1,569 |
2014 advances | 1,598 | 1,598 |
2015 advances | 791 | 791 |
2016 advances | 15,022 | 15,022 |
2017 advances | 6,000 | 6,000 |
2018 advances | 7,000 | 7,000 |
Total advances | 30,411 | 31,980 |
Callable (1) | ' | ' |
2013 advances | ' | ' |
2014 advances | ' | ' |
2015 advances | ' | ' |
2016 advances | 15,000 | 15,000 |
2017 advances | 6,000 | 6,000 |
2018 advances | ' | ' |
Total advances | 21,000 | 21,000 |
Rate (2) | ' | ' |
2013 advances | ' | ' |
2013 rate | ' | 3.89% |
2014 rate | 3.87% | 3.87% |
2015 rate | 3.88% | 3.88% |
2016 rate | 4.08% | 4.08% |
2017 rate | 4.05% | 4.05% |
2018 rate | 3.74% | 3.74% |
Total weighted average rate | 3.99% | 3.99% |
FEDERAL_HOME_LOAN_BANK_OF_BOST3
FEDERAL HOME LOAN BANK OF BOSTON ADVANCES - Certain information concerning short-term FHLBB advances (Details) (Short-term FHLBB advances Information, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term FHLBB advances Information | ' | ' |
Highest month-end balance during period | ' | ' |
Ending balance | ' | ' |
Average balance during period | $52 | ' |
Weighted average rate during period | 0.29% | 0.00% |
Weighted average rate at end of period | 0.00% | 0.00% |
FEDERAL_HOME_LOAN_BANK_OF_BOST4
FEDERAL HOME LOAN BANK OF BOSTON ADVANCES (Details Narrative) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Banking and Thrift [Abstract] | ' |
Additional available borrowing capacity in addition to outstanding FHLBB advances | $53,200 |
Unused FHLBB line of credit Company has access to | $3,500 |
NET_DEFERRED_TAX_ASSETS_AND_IN2
NET DEFERRED TAX ASSETS AND INCOME TAXES - Components of income tax provision (Details) (Components of income tax provision, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of income tax provision | ' | ' | ' |
Federal | $940 | $1,076 | $739 |
State | 103 | 112 | 81 |
Current provision | 1,043 | 1,188 | 820 |
Federal | 215 | -199 | 130 |
State | ' | ' | ' |
Change in valuation allowance | -349 | ' | ' |
Deferred benefit | -134 | -199 | 130 |
Income tax provision (benefit) | $909 | $989 | $950 |
NET_DEFERRED_TAX_ASSETS_AND_IN3
NET DEFERRED TAX ASSETS AND INCOME TAXES - Reconciliation of expected federal statutory tax to income tax provision (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income tax at statutory federal tax rate | 34.00% | 34.00% | 34.00% |
State tax, net of federal tax benefit | 1.35% | 1.47% | 1.10% |
Tax exempt income and dividends received deduction | -18.18% | -16.25% | -17.50% |
Expiration of capital loss carry forward | 7.00% | ' | ' |
Other | 1.04% | 0.27% | 1.20% |
Change in valuation allowance | -7.00% | ' | ' |
Effective income tax rates | 18.21% | 19.49% | 18.80% |
NET_DEFERRED_TAX_ASSETS_AND_IN4
NET DEFERRED TAX ASSETS AND INCOME TAXES - Components of net deferred tax assets (Details) (Components of net deferred tax assets, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components of net deferred tax assets | ' | ' |
Allowance for loan losses | $1,369 | $1,259 |
Interest on non-performing loans | 180 | 220 |
Accrued deferred compensation | 62 | 46 |
Post-retirement benefits | 16 | 15 |
Other real estate owned property write-down | 35 | 7 |
Capital loss carry forward | ' | 349 |
Restricted stock awards | 48 | ' |
Unrecognized pension expense | ' | 242 |
Write-down of securities | 1,388 | 1,388 |
Alternative minimum tax | 528 | 591 |
Other | 4 | ' |
Gross deferred tax assets | 3,630 | 4,117 |
Valuation allowance | ' | -349 |
Gross deferred tax assets, net | 3,630 | 3,768 |
Deferred loan costs, net | -402 | -351 |
Goodwill and core deposit intangible asset | -746 | -736 |
Accelerated depreciation | -1,114 | -1,171 |
Mark-to-market purchase accounting adjustments | -6 | -17 |
Mortgage servicing rights | -328 | -353 |
Prepaid pension | -236 | -234 |
Unrecognized pension benefit | -314 | ' |
Net unrealized holding gain on available-for-sale securities | -224 | -1,496 |
Gross deferred tax liabilities | -3,370 | -4,358 |
Net deferred tax asset | $260 | ($590) |
SHAREHOLDERS_EQUITY_Actual_reg
SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Salisbury | ' | ' |
Total Capital (to risk-weighted assets) | ' | ' |
Actual - Amount | $66,404 | $63,391 |
Actual - Ratio | 16.46% | 16.63% |
For Capital Adequacy - Amount | 32,280 | 30,494 |
For Capital Adequacy - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | ' | ' |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | ' | ' |
Tier 1 Capital (to risk-weighted assets) | ' | ' |
Actual - Amount | 61,340 | 58,933 |
Actual - Ratio | 15.20% | 15.46% |
For Capital Adequacy - Amount | 16,140 | 15,247 |
For Capital Adequacy - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | ' | ' |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | ' | ' |
Tier 1 Capital (to average assets) | ' | ' |
Actual - Amount | 61,340 | 58,933 |
Actual - Ratio | 10.65% | 9.87% |
For Capital Adequacy - Amount | 22,035 | 23,876 |
For Capital Adequacy - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | ' | ' |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | ' | ' |
Bank | ' | ' |
Total Capital (to risk-weighted assets) | ' | ' |
Actual - Amount | 56,425 | 53,132 |
Actual - Ratio | 13.87% | 13.77% |
For Capital Adequacy - Amount | 32,539 | 30,866 |
For Capital Adequacy - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 40,674 | 38,582 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets) | ' | ' |
Actual - Amount | 51,361 | 48,674 |
Actual - Ratio | 12.63% | 12.62% |
For Capital Adequacy - Amount | 16,270 | 15,432 |
For Capital Adequacy - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 24,405 | 23,149 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to average assets) | ' | ' |
Actual - Amount | 51,361 | 48,674 |
Actual - Ratio | 8.96% | 8.15% |
For Capital Adequacy - Amount | 22,938 | 23,876 |
For Capital Adequacy - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $28,673 | $29,845 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
SHAREHOLDERS_EQUITY_Details_Na
SHAREHOLDERS' EQUITY (Details Narrative) (Shareholders' Equity Details, USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 27 Months Ended |
Nov. 02, 2011 | Aug. 31, 2011 | Dec. 31, 2013 | Mar. 31, 2017 | Mar. 31, 2016 | |
Shareholders' Equity Details | ' | ' | ' | ' | ' |
Series B Preferred Stock issued to Treasury under SBLF program | ' | $16,000,000 | ' | ' | ' |
Dividend rate on Series B Preferred Stock | ' | ' | 1.00% | 9.00% | 1.00% |
Series A Preferred Stock repurchased from Treasury under Capital Purchase program | ' | 8,816,000 | ' | ' | ' |
Net capital proceeds from repurchase | ' | 7,184,000 | ' | ' | ' |
Portion of proceeds invested as Tier 1 Capital | ' | 6,465,600 | ' | ' | ' |
Shares of common stock offered through warrant issued to Treasury | ' | 57,671 | ' | ' | ' |
Warrant exercise price per share | ' | $22.93 | ' | ' | ' |
Repurchase and cancellation of Warrant | $205,000 | ' | ' | ' | ' |
PENSIONS_AND_OTHER_BENEFITS_Tr
PENSIONS AND OTHER BENEFITS - Transition from providing retirement benefits under defined pension plan to defined contribution 401(K) plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in projected benefit obligation | ' | ' | ' |
Service cost | ' | $404 | $343 |
Interest cost | 255 | 358 | 383 |
Transition from defined pension plan to defined contribution 401(k) plan | ' | ' | ' |
Change in projected benefit obligation | ' | ' | ' |
Benefit obligation at beginning of year | 6,039 | 7,949 | 6,639 |
Actuarial loss/ (gain) | -860 | 1,012 | 1,073 |
Service cost | ' | 404 | 343 |
Interest cost | 255 | 358 | 383 |
Curtailments and settlements | ' | -3,586 | ' |
Benefits paid | -184 | -98 | -489 |
Benefit obligation at end of year | 5,250 | 6,039 | 7,949 |
Change in plan assets | ' | ' | ' |
Plan assets at estimated fair value at beginning of year | 6,019 | 6,164 | 5,668 |
Actual return on plan assets | 1,033 | 720 | 97 |
Contributions by employer | ' | 129 | 888 |
Curtailments and settlements | ' | -896 | ' |
Benefits paid | -184 | -98 | -489 |
Fair value of plan assets at end of year | 6,868 | 6,019 | 6,164 |
Funded status and recognized asset (liability) included in other assets (liabilities) on the balance sheet | $1,618 | ($20) | ($1,785) |
PENSIONS_AND_OTHER_BENEFITS_Co
PENSIONS AND OTHER BENEFITS - Components of amounts recognized in accumulated other comprehensive income, before tax effect (Details) (Components of amounts recognized in accumulated other comprehensive income, before tax effect, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of amounts recognized in accumulated other comprehensive income, before tax effect | ' | ' | ' |
Net gain (loss) | $924 | ($711) | ($3,118) |
PENSIONS_AND_OTHER_BENEFITS_Ra
PENSIONS AND OTHER BENEFITS - Rate of increase in future compensation levels (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Age 25 | ' | ' |
Rate of increase in future compensation levels | 4.75% | 4.75% |
Age 35 | ' | ' |
Rate of increase in future compensation levels | 4.25% | 4.25% |
Age 45 | ' | ' |
Rate of increase in future compensation levels | 3.75% | 3.75% |
Age 55 | ' | ' |
Rate of increase in future compensation levels | 3.25% | 3.25% |
Age 65 | ' | ' |
Rate of increase in future compensation levels | 3.00% | 3.00% |
PENSIONS_AND_OTHER_BENEFITS_Co1
PENSIONS AND OTHER BENEFITS - Components of net periodic cost (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Service cost | ' | $404 | $343 |
Interest cost on benefit obligation | 255 | 358 | 383 |
Expected return on plan assets | -258 | -455 | -418 |
Amortization of net loss | ' | 123 | 75 |
Net periodic benefit cost | -3 | 430 | 383 |
Additional amount recognized due to settlement or curtailment | ' | 341 | ' |
Total recognized in net periodic cost | -3 | 771 | 383 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: | ' | ' | ' |
Net actuarial (gain) loss | -1,635 | -2,284 | 1,394 |
Amortization of net loss | ' | -123 | -75 |
Total recognized in other comprehensive (income) loss | -1,635 | -2,407 | 1,319 |
Total recognized in net periodic cost and other comprehensive (income) loss | ($1,638) | ($1,636) | $1,702 |
PENSIONS_AND_OTHER_BENEFITS_Fa
PENSIONS AND OTHER BENEFITS - Fair values of pension plan assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements at Reporting Date Using Level 1 | ' | ' |
Corporate Debt | ' | ' |
Preferred Stock | 57 | 63 |
Equities | 4,115 | 4,605 |
Mutual Funds | 1,719 | 268 |
Money Fund | 340 | 369 |
Totals | 6,231 | 5,305 |
Fair Value Measurements at Reporting Date Using Level 2 | ' | ' |
Corporate Debt | 637 | 714 |
Preferred Stock | ' | ' |
Equities | ' | ' |
Mutual Funds | ' | ' |
Money Fund | ' | ' |
Totals | 637 | 714 |
Fair Value Measurements at Reporting Date Using Level 3 | ' | ' |
Corporate Debt | ' | ' |
Preferred Stock | ' | ' |
Equities | ' | ' |
Mutual Funds | ' | ' |
Money Fund | ' | ' |
Totals | ' | ' |
Assets at fair value | ' | ' |
Corporate Debt | 637 | 714 |
Preferred Stock | 57 | 63 |
Equities | 4,115 | 4,605 |
Mutual Funds | 1,719 | 268 |
Money Fund | 340 | 369 |
Totals | $6,868 | $6,019 |
PENSIONS_AND_OTHER_BENEFITS_Fu
PENSIONS AND OTHER BENEFITS - Future expected benefit payments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | ' |
2014 | $140 |
2015 | 382 |
2016 | 91 |
2017 | 532 |
2018 | 87 |
2019 to 2023 | $1,967 |
PENSIONS_AND_OTHER_BENEFITS_De
PENSIONS AND OTHER BENEFITS (Details Narrative) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Accumulated benefit obligation for plan | ' | $5,250,000 | $6,039,000 | ' |
Discount rate used in determining present value of projected benefit obligation | ' | 5.10% | 4.35% | 4.75% |
Estimated net gain to be amortized from accumulated other comprehensive loss into net period benefit cost | 15,000 | ' | ' | ' |
Discount rate used to determine net periodic benefit cost | ' | 4.35% | 4.75% | 5.75% |
Expected return on plan assets | ' | 4.35% | 7.50% | 7.50% |
401(k) Plan | ' | ' | ' | ' |
Additional discretionary match of 401(k) plan | ' | 6.00% | ' | ' |
401(k) Plan contribution expense | ' | 657,000 | 292,000 | 288,000 |
Employee Stock Ownership Plan (ESOP) | ' | ' | ' | ' |
2013 benefit expenses | ' | 159,800 | ' | ' |
Other Retirement Plans | ' | ' | ' | ' |
Total liability for endorsement split-dollar life insurance arrangements included in other liabilities | ' | 528,000 | 479,000 | ' |
Expense under endorsement split-dollar life insurance arrangement | ' | 49,000 | 45,000 | ' |
Former CEO supplemental post retirement payment liability | ' | 121,000 | 136,000 | ' |
Supplemental post retirement payments related expense | ' | 9,000 | 12,000 | 11,000 |
Discretionary contribution to Executives' account | ' | $59,590 | ' | ' |
DIRECTORS_STOCK_RETAINER_PLAN_1
DIRECTORS STOCK RETAINER PLAN AND LONG TERM INCENTIVE PLAN (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, except Share data, unless otherwise specified | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Directors Plan | Directors Plan | ||
Annual stock retainer, individual director maximum | ' | ' | 240 | 240 | ' | 120 | 120 |
Shares of fully vested restricted common stock issued as an annual stock retainer to directors | ' | ' | 1,330 | 960 | ' | 1,070 | 960 |
Stock retainer issuance related compensation expense | ' | ' | $34 | $24 | ' | $28 | $21 |
Total number of shares of Common Stock reserved and available for issuance | ' | ' | ' | ' | 84,000 | ' | 15,000 |
Total shares of Common Stock that may be issued pursuant to Awards in any one calendar year | 3,000,000 | 3,000,000 | 30,000 | 30,000 | ' | ' | ' |
Total number of shares that may be awarded as Incentive Stock Options | ' | ' | ' | ' | 42,000 | ' | ' |
Total number of shares that may be issued as Directors Stock Retainer Awards | ' | ' | ' | ' | 15,000 | ' | ' |
Shares of restricted stock granted pursuant to 2011 Long Term Incentive Plan to 22 employees | 1,710,121 | 1,689,691 | 19,600 | ' | ' | ' | ' |
Shares of restricted stock granted pursuant to 2011 Long Term Incentive Plan to Executive Officer | ' | ' | 5,000 | ' | ' | ' | ' |
Fair value of stock granted pursuant to Plan | ' | ' | 490 | ' | ' | ' | ' |
Deferred compensation expense | ' | ' | 142 | ' | ' | ' | ' |
Unrecognized compensation cost relating to awards | ' | ' | $335 | ' | ' | ' | ' |
Stock award forfeitures | ' | ' | 500 | ' | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_Cha
RELATED PARTY TRANSACTIONS - Changes in loans to executive officers, directors and their related associates (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transactions [Abstract] | ' | ' |
Balance, beginning of period | $1,309 | $1,308 |
Advances | 63 | 89 |
Repayments | -93 | -88 |
Balance, end of period | $1,279 | $1,309 |
COMPREHENSIVE_INCOME_Component
COMPREHENSIVE INCOME - Components of comprehensive income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $4,083 | $4,077 | $4,112 |
Statements of Comprehensive Income | ' | ' | ' |
Net income | 4,083 | 4,077 | 4,112 |
Other comprehensive income | ' | ' | ' |
Net unrealized gains on securities available-for-sale | -3,743 | 2,632 | 5,973 |
Reclassification of net realized gains in net income | ' | -11 | -279 |
Unrealized gains on securities available-for-sale | -3,743 | 2,353 | 5,962 |
Income tax expense | 1,273 | -800 | -2,027 |
Unrealized gains on securities available-for-sale, net of tax | -2,470 | 1,553 | 3,935 |
Pension plan income (loss) | 1,635 | 2,407 | -1,319 |
Income tax (expense) benefit | -556 | -818 | 448 |
Pension plan income (loss), net of tax | 1,079 | 1,589 | -871 |
Other comprehensive income, net of tax | -1,391 | 3,142 | 3,064 |
Comprehensive income | $2,692 | $7,219 | $7,176 |
COMPREHENSIVE_INCOME_Component1
COMPREHENSIVE INCOME - Components of accumulated other comprehensive income (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ' | ' |
Unrealized gains on securities available-for-sale, net of tax | $436 | $2,906 |
Unrecognized pension plan income (expense), net of tax | 610 | -469 |
Accumulated other comprehensive income, net | $1,046 | $2,437 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES - Future minimum lease payments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future minimum lease payments | ' |
2014 | $75 |
2015 | 58 |
2016 | 58 |
2017 | 34 |
Total | $225 |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES - Future minimum lease payments under capital lease with present value of net minimum lease payments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future minimum lease payments | ' |
2014 | $48 |
2015 | 72 |
2016 | 72 |
2017 | 72 |
2018 | 72 |
Thereafter | 864 |
Total minimum lease payments | 1,200 |
Less amount representing interest | 775 |
Total minimum lease payments, net | $425 |
COMMITMENTS_AND_CONTINGENT_LIA4
COMMITMENTS AND CONTINGENT LIABILITIES (Details Narrative) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 | Aug. 08, 2007 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' |
Deposits that will be gained in pending purchase of Sharon, Connecticut branch of another financial institution | ' | ' | ' | $19,000,000 | ' |
Rent expense | 85,000 | 97,000 | 93,000 | ' | ' |
Loan to Trust, secured by commercial mortgage in favor to Bank on Westport property | ' | ' | ' | ' | $3,386,609 |
FINANCIAL_INSTRUMENTS_Financia
FINANCIAL INSTRUMENTS - Financial instrument liabilities with off-balance sheet credit risk (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments, All Other Investments [Abstract] | ' | ' |
Residential | $314 | $1,060 |
Home equity credit | 28,377 | 29,989 |
Commercial | 9,900 | 2,279 |
Land | 10 | 300 |
Real estate secured | 38,601 | 33,628 |
Commercial and industrial | 17,563 | 15,441 |
Consumer | 1,321 | 1,349 |
Unadvanced portions of loans | 57,485 | 50,418 |
Commitments to originate loans | 9,730 | 17,727 |
Standby letters of credit | 53 | 34 |
Total | $67,268 | $68,179 |
FINANCIAL_INSTRUMENTS_Details_
FINANCIAL INSTRUMENTS (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments, All Other Investments [Abstract] | ' | ' |
Maximum potential amount of Bank's obligation for financial, commercial and standby letters of credit | $53 | $34 |
FAIR_VALUE_MEASUREMENTS_Assets
FAIR VALUE MEASUREMENTS - Assets measured at fair value (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements Using - Level 1 | ' | ' |
Assets at fair value on a recurring basis | ' | ' |
U.S. Treasury notes | ' | ' |
U.S. Government agency notes | ' | ' |
Municipal bonds | ' | ' |
Mortgage backed securities, U.S. Government Agencies | ' | ' |
Collateralized mortgage obligations, U.S. Government Agencies | ' | ' |
Collateralized mortgage obligations, Non-agency | ' | ' |
SBA bonds | ' | ' |
Preferred Stock | 797 | 167 |
Securities available-for-sale | 797 | 167 |
Assets at fair value on a non-recurring basis | ' | ' |
Collateral dependent impaired loans | ' | ' |
Other real estate owned | ' | ' |
Fair Value Measurements Using - Level 2 | ' | ' |
Assets at fair value on a recurring basis | ' | ' |
U.S. Treasury notes | 2,657 | 2,733 |
U.S. Government agency notes | 2,590 | 7,726 |
Municipal bonds | 40,437 | 47,365 |
Mortgage backed securities, U.S. Government Agencies | 33,892 | 48,729 |
Collateralized mortgage obligations, U.S. Government Agencies | 3,580 | 5,197 |
Collateralized mortgage obligations, Non-agency | 8,308 | 11,507 |
SBA bonds | 2,230 | 2,863 |
Preferred Stock | ' | ' |
Securities available-for-sale | 93,694 | 126,120 |
Assets at fair value on a non-recurring basis | ' | ' |
Collateral dependent impaired loans | ' | ' |
Other real estate owned | ' | ' |
Fair Value Measurements Using - Level 3 | ' | ' |
Assets at fair value on a recurring basis | ' | ' |
U.S. Treasury notes | ' | ' |
U.S. Government agency notes | ' | ' |
Municipal bonds | ' | ' |
Mortgage backed securities, U.S. Government Agencies | ' | ' |
Collateralized mortgage obligations, U.S. Government Agencies | ' | ' |
Collateralized mortgage obligations, Non-agency | ' | ' |
SBA bonds | ' | ' |
Preferred Stock | ' | ' |
Securities available-for-sale | ' | ' |
Assets at fair value on a non-recurring basis | ' | ' |
Collateral dependent impaired loans | 9,782 | 8,434 |
Other real estate owned | 377 | 244 |
Assets at fair value | ' | ' |
Assets at fair value on a recurring basis | ' | ' |
U.S. Treasury notes | 2,657 | 2,733 |
U.S. Government agency notes | 2,590 | 7,726 |
Municipal bonds | 40,437 | 47,365 |
Mortgage backed securities, U.S. Government Agencies | 33,892 | 48,729 |
Collateralized mortgage obligations, U.S. Government Agencies | 3,580 | 5,197 |
Collateralized mortgage obligations, Non-agency | 8,308 | 11,507 |
SBA bonds | 2,230 | 2,863 |
Preferred Stock | 797 | 167 |
Securities available-for-sale | 94,491 | 126,287 |
Assets at fair value on a non-recurring basis | ' | ' |
Collateral dependent impaired loans | 9,782 | 8,434 |
Other real estate owned | $377 | $244 |
FAIR_VALUE_MEASUREMENTS_Carryi
FAIR VALUE MEASUREMENTS - Carrying value and estimated fair values of financial instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying value | ' | ' |
Financial Assets | ' | ' |
Cash and due from banks | $12,711 | $43,574 |
Interest-bearing time deposits with other banks | 738 | ' |
Securities available-for-sale | 94,491 | 126,287 |
Federal Home Loan Bank stock | 5,340 | 5,747 |
Loans held-for-sale | 173 | 1,879 |
Loans receivable, net | 438,178 | 388,758 |
Accrued interest receivable | 1,760 | 1,818 |
Financial Liabilities | ' | ' |
Demand (non-interest-bearing) | 84,677 | 98,850 |
Demand (interest-bearing) | 81,932 | 65,991 |
Money market | 120,550 | 128,501 |
Savings and other | 107,171 | 103,985 |
Certificates of deposit | 83,039 | 93,888 |
Deposits | 477,369 | 491,215 |
FHLBB advances | 30,411 | 31,980 |
Repurchase agreements | 2,554 | 1,784 |
Capital lease liability | 425 | ' |
Accrued interest payable | 140 | 196 |
Estimated fair value | ' | ' |
Financial Assets | ' | ' |
Cash and due from banks | 12,711 | 43,574 |
Interest-bearing time deposits with other banks | 738 | ' |
Securities available-for-sale | 94,491 | 126,287 |
Federal Home Loan Bank stock | 5,340 | 5,747 |
Loans held-for-sale | 175 | 1,893 |
Loans receivable, net | 430,645 | 389,292 |
Accrued interest receivable | 1,760 | 1,818 |
Financial Liabilities | ' | ' |
Demand (non-interest-bearing) | 84,677 | 98,850 |
Demand (interest-bearing) | 81,932 | 65,991 |
Money market | 120,550 | 128,501 |
Savings and other | 107,171 | 103,985 |
Certificates of deposit | 83,520 | 94,894 |
Deposits | 477,850 | 492,221 |
FHLBB advances | 33,034 | 35,363 |
Repurchase agreements | 2,554 | 1,784 |
Capital lease liability | 425 | ' |
Accrued interest payable | 140 | 196 |
Fair Value Measurements Using - Level 1 | ' | ' |
Financial Assets | ' | ' |
Cash and due from banks | 12,711 | 43,574 |
Interest-bearing time deposits with other banks | ' | ' |
Securities available-for-sale | 797 | 167 |
Federal Home Loan Bank stock | ' | ' |
Loans held-for-sale | ' | ' |
Loans receivable, net | ' | ' |
Accrued interest receivable | ' | ' |
Financial Liabilities | ' | ' |
Demand (non-interest-bearing) | ' | ' |
Demand (interest-bearing) | ' | ' |
Money market | ' | ' |
Savings and other | ' | ' |
Certificates of deposit | ' | ' |
Deposits | ' | ' |
FHLBB advances | ' | ' |
Repurchase agreements | ' | ' |
Capital lease liability | 425 | ' |
Accrued interest payable | ' | ' |
Fair Value Measurements Using - Level 2 | ' | ' |
Financial Assets | ' | ' |
Cash and due from banks | ' | ' |
Interest-bearing time deposits with other banks | ' | ' |
Securities available-for-sale | 93,694 | 126,120 |
Federal Home Loan Bank stock | 5,340 | 5,474 |
Loans held-for-sale | ' | ' |
Loans receivable, net | ' | ' |
Accrued interest receivable | ' | ' |
Financial Liabilities | ' | ' |
Demand (non-interest-bearing) | ' | ' |
Demand (interest-bearing) | ' | ' |
Money market | ' | ' |
Savings and other | ' | ' |
Certificates of deposit | ' | ' |
Deposits | ' | ' |
FHLBB advances | ' | ' |
Repurchase agreements | ' | ' |
Capital lease liability | ' | ' |
Accrued interest payable | ' | ' |
Fair Value Measurements Using - Level 3 | ' | ' |
Financial Assets | ' | ' |
Cash and due from banks | ' | ' |
Interest-bearing time deposits with other banks | 738 | ' |
Securities available-for-sale | ' | ' |
Federal Home Loan Bank stock | ' | ' |
Loans held-for-sale | 175 | 1,893 |
Loans receivable, net | 430,645 | 389,292 |
Accrued interest receivable | 1,760 | 1,818 |
Financial Liabilities | ' | ' |
Demand (non-interest-bearing) | 84,677 | 98,850 |
Demand (interest-bearing) | 81,932 | 65,991 |
Money market | 120,550 | 128,501 |
Savings and other | 107,171 | 103,985 |
Certificates of deposit | 83,520 | 94,894 |
Deposits | 477,850 | 492,221 |
FHLBB advances | 33,034 | 35,363 |
Repurchase agreements | 2,554 | 1,784 |
Capital lease liability | ' | ' |
Accrued interest payable | $140 | $196 |
SALISBURY_BANCORP_PARENT_ONLY_2
SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION - Unconsolidated balance sheets of Salisbury Bancorp, Inc. (Details) (Salisbury Bancorp, Inc. (Parent Only), USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Salisbury Bancorp, Inc. (Parent Only) | ' | ' |
Assets | ' | ' |
Cash and due from banks | $9,302 | $10,297 |
Interest-bearing time deposits with other banks | 738 | ' |
Investment in bank subsidiary | 62,811 | 61,738 |
Other assets | ' | 2 |
Total Assets | 72,851 | 72,037 |
Liabilities and Shareholders' Equity | ' | ' |
Liabilities | 61 | 40 |
Shareholders' equity | 72,790 | 71,997 |
Total Liabilities and Shareholders' Equity | $72,851 | $72,037 |
SALISBURY_BANCORP_PARENT_ONLY_3
SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION - Unconsolidated statements of income of Salisbury Bancorp, Inc. (Details) (Salisbury Bancorp, Inc. (Parent Only), USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Salisbury Bancorp, Inc. (Parent Only) | ' | ' | ' |
Dividends from subsidiary | $2,128 | $2,243 | $2,372 |
Interest | 27 | 42 | 99 |
Expenses | 394 | 81 | 116 |
Income before taxes and equity in undistributed net income of subsidiary | 1,761 | 2,204 | 2,355 |
Income tax benefit | ' | ' | ' |
Income before equity in undistributed net income of subsidiary | 1,761 | 2,204 | 2,355 |
Equity in undistributed net income of subsidiary | 2,322 | 1,873 | 1,757 |
Net income | $4,083 | $4,077 | $4,112 |
SALISBURY_BANCORP_PARENT_ONLY_4
SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION - Unconsolidated statements of cash flows of Salisbury Bancorp, Inc. (Details) (Salisbury Bancorp, Inc. (Parent Only), USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Salisbury Bancorp, Inc. (Parent Only) | ' | ' | ' |
Net income | $4,083 | $4,077 | $4,112 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Equity in undistributed net income of subsidiary | -2,322 | -1,873 | -1,757 |
Accretion of securities | ' | ' | -11 |
Other | 24 | 16 | -3 |
Net cash provided by operating activities | 1,785 | 2,220 | 2,341 |
Investing Activities | ' | ' | ' |
Investment in bank | ' | ' | -6,466 |
Purchases of interest-bearing time deposits of other banks | -738 | ' | ' |
Maturities of securities available-for-sale | ' | 1,103 | ' |
Net cash (utilized) provided by investing activities | -738 | 1,103 | -6,466 |
Financing Activities | ' | ' | ' |
Common stock dividends paid | -1,915 | -1,892 | -1,891 |
Preferred stock dividends paid | -161 | -240 | -382 |
Payment to repurchase Preferred Stock | ' | ' | -8,816 |
Payment to repurchase warrants | ' | ' | -205 |
Proceeds from issuance of Common Stock | 34 | 24 | 28 |
Proceeds from issuance of Preferred Stock | ' | ' | 16,000 |
Net cash (utilized) provided by financing activities | -2,042 | -2,108 | 4,734 |
(Decrease) increase in cash and cash equivalents | -995 | 1,215 | 609 |
Cash and cash equivalents, beginning of year | 10,297 | 9,082 | 8,473 |
Cash and cash equivalents, end of year | $9,302 | $10,297 | $9,082 |
EARNINGS_PER_SHARE_Calculation
EARNINGS PER SHARE - Calculation of earnings per share (Details) (Calculation of earnings per share, USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Calculation of earnings per share | ' | ' | ' |
Net income | $4,083 | $4,077 | $4,112 |
Less: Preferred stock net accretion | ' | ' | -78 |
Less: Preferred stock dividends declared | -161 | -216 | -466 |
Net income available to common shareholders | 3,922 | 3,861 | 3,588 |
Less: Undistributed earnings allocated to participating securities | -39 | ' | ' |
Net income allocated to common stock | 3,883 | 3,861 | 3,588 |
Common shares issued | 1,710 | 1,690 | 1,689 |
Less: Unvested restricted stock awards | -19 | ' | ' |
Common shares outstanding used to calculate basic earnings per common share | 1,691 | 1,690 | 1,689 |
Add: Dilutive effect of unvested restricted stock awards | ' | ' | ' |
Common shares outstanding used to calculate diluted earnings per common share | $1,691 | $1,690 | $1,689 |
Earnings per common share (basic and diluted) | $2.30 | $2.28 | $2.12 |
SELECTED_QUARTERLY_CONSOLIDATE2
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA - Selected quarterly consolidated financial data (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 |
Selected quarterly consolidated financial data | Selected quarterly consolidated financial data | Selected quarterly consolidated financial data | Selected quarterly consolidated financial data | Selected quarterly consolidated financial data | Selected quarterly consolidated financial data | Selected quarterly consolidated financial data | Selected quarterly consolidated financial data | ||||
Statement of Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest and dividend income | ' | ' | ' | $5,479 | $5,431 | $5,434 | $5,406 | $5,426 | $5,607 | $5,766 | $5,858 |
Interest expense | ' | ' | ' | 686 | 772 | 801 | 803 | 992 | 1,035 | 1,080 | 1,175 |
Net interest and dividend income | ' | ' | ' | 4,793 | 4,659 | 4,633 | 4,603 | 4,434 | 4,572 | 4,686 | 4,683 |
Provision for loan losses | ' | ' | ' | 190 | 240 | 240 | 396 | 380 | 330 | 180 | 180 |
Trust and Wealth Advisory | ' | ' | ' | 775 | 750 | 824 | 725 | 772 | 683 | 735 | 755 |
Service charges and fees | ' | ' | ' | 612 | 595 | 575 | 516 | 561 | 559 | 547 | 521 |
Gains on sales of mortgage loans, net | ' | ' | ' | 78 | 69 | 153 | 279 | 394 | 568 | 263 | 372 |
Mortgage servicing, net | ' | ' | ' | 38 | -37 | 8 | 26 | 76 | -9 | -5 | -84 |
Securities gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | 267 | 12 |
Other | ' | ' | ' | 68 | 82 | 90 | 79 | 74 | 86 | 83 | 83 |
Non-interest income | ' | ' | ' | 1,571 | 1,459 | 1,650 | 1,625 | 1,877 | 1,887 | 1,890 | 1,659 |
Non-interest expense | ' | ' | ' | 4,977 | 4,643 | 4,610 | 4,705 | 5,334 | 4,693 | 5,026 | 4,500 |
Income before income taxes | ' | ' | ' | 1,197 | 1,235 | 1,433 | 1,127 | 597 | 1,436 | 1,370 | 1,662 |
Income tax provision | ' | ' | ' | 214 | 219 | 289 | 187 | 26 | 296 | 254 | 412 |
Net income | 4,083 | 4,077 | 4,112 | 983 | 1,016 | 1,144 | 940 | 571 | 1,140 | 1,116 | 1,250 |
Net income available to common shareholders | ' | ' | ' | 943 | 976 | 1,103 | 900 | 531 | 1,094 | 1,069 | 1,167 |
Financial Condition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | ' | ' | ' | 587,109 | 589,481 | 600,712 | 597,343 | 600,813 | 611,037 | 600,857 | 598,950 |
Loans, net | ' | ' | ' | 438,178 | 420,306 | 416,729 | 406,258 | 388,758 | 377,377 | 377,212 | 371,709 |
Allowance for loan losses | ' | ' | ' | 4,683 | 4,656 | 4,632 | 4,686 | 4,360 | 4,179 | 4,208 | 4,166 |
Securities | ' | ' | ' | 99,831 | 105,156 | 111,950 | 124,004 | 132,034 | 131,412 | 141,409 | 151,666 |
Deposits | ' | ' | ' | 477,369 | 479,869 | 492,040 | 487,773 | 491,215 | 490,206 | 477,910 | 472,686 |
Repurchase agreements | ' | ' | ' | 2,554 | 3,870 | 2,980 | 2,329 | 1,784 | 2,941 | 6,181 | 10,359 |
FHLBB advances | ' | ' | ' | 30,411 | 30,801 | 31,187 | 31,574 | 31,980 | 42,392 | 42,801 | 43,207 |
Shareholders' equity | ' | ' | ' | 72,790 | 71,211 | 71,489 | 72,206 | 71,997 | 70,374 | 69,126 | 68,067 |
Non-performing assets | ' | ' | ' | $7,549 | $9,737 | $9,639 | $9,297 | $10,104 | $9,870 | $8,409 | $7,606 |
Per Common Share Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings, diluted and basic | ' | ' | ' | $0.55 | $0.57 | $0.65 | $0.53 | $0.31 | $0.65 | $0.63 | $0.69 |
Cash dividends declared | ' | ' | ' | $0.28 | $0.28 | $0.28 | $0.28 | $0.28 | $0.28 | $0.28 | $0.28 |
Cash dividends paid | ' | ' | ' | $0.28 | $0.28 | $0.28 | $0.28 | $0.28 | $0.28 | $0.28 | $0.28 |
Book value | ' | ' | ' | $33.21 | $32.28 | $32.45 | $32.88 | $33.14 | $32.18 | $31.44 | $30.83 |
Market price: (a) High | ' | ' | ' | $28 | $29.95 | $28 | $26.44 | $28.41 | $26.39 | $26.49 | $26.95 |
Market price: (a) Low | ' | ' | ' | $25.50 | $25.52 | $25.18 | $23.55 | $23.16 | $23.11 | $23.25 | $22.51 |
Statistical Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest margin (fully tax equivalent) | ' | ' | ' | 3.71% | 3.51% | 3.54% | 3.54% | 3.32% | 3.39% | 3.58% | 3.54% |
Efficiency ratio (fully tax equivalent) | ' | ' | ' | 71.77% | 71.72% | 68.88% | 70.93% | 71.45% | 66.05% | 66.39% | 66.86% |
Return on average assets | ' | ' | ' | 0.64% | 0.64% | 0.74% | 0.61% | 0.35% | 0.71% | 0.72% | 0.78% |
Return on average shareholders' equity | ' | ' | ' | 6.69% | 7.05% | 7.81% | 6.45% | 3.85% | 8.05% | 8.10% | 9.05% |
Weighted average equivalent shares outstanding, diluted | ' | ' | ' | 1,691 | 1,691 | 1,691 | 1,690 | 1,690 | 1,690 | 1,689 | 1,689 |