Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 13-May-14 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'SALISBURY BANCORP INC | ' |
Entity Central Index Key | '0001060219 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
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? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 1,711,121 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Shareholders' Equity | ' | ' |
Total Shareholders' Equity | $74,001 | $72,790 |
Balance Sheets | ' | ' |
ASSETS | ' | ' |
Cash and due from banks | 6,961 | 5,926 |
Interest bearing demand deposits with other banks | 2,443 | 6,785 |
Total cash and cash equivalents | 9,404 | 12,711 |
Interest-bearing time deposits with other banks | ' | 738 |
Securities | ' | ' |
Available-for-sale at fair value | 92,675 | 94,491 |
Federal Home Loan Bank of Boston stock at cost | 5,340 | 5,340 |
Loans held-for-sale | 120 | 173 |
Loans receivable, net (allowance for loan losses: $4,894 and $4,683) | 446,518 | 438,178 |
Other real estate owned | 377 | 377 |
Bank premises and equipment, net | 12,049 | 11,611 |
Goodwill | 9,829 | 9,829 |
Intangible assets (net of accumulated amortization: $2,023 and $1,967) | 520 | 576 |
Accrued interest receivable | 1,804 | 1,760 |
Cash surrender value of life insurance policies | 7,587 | 7,529 |
Deferred taxes | ' | 260 |
Other assets | 3,548 | 3,536 |
Total Assets | 589,771 | 587,109 |
Deposits | ' | ' |
Demand (non-interest bearing) | 80,935 | 84,677 |
Demand (interest bearing) | 79,330 | 81,932 |
Money market | 123,898 | 120,550 |
Savings and other | 112,306 | 107,171 |
Certificates of deposit | 81,043 | 83,039 |
Total deposits | 477,512 | 477,369 |
Repurchase agreements | 2,643 | 2,554 |
Federal Home Loan Bank of Boston advances | 30,017 | 30,411 |
Capital lease liability | 425 | 425 |
Deferred taxes | 326 | ' |
Accrued interest and other liabilities | 4,847 | 3,560 |
Total Liabilities | 515,770 | 514,319 |
Commitments and contingencies | ' | ' |
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: 1,711,121 and 1,710,121 | 171 | 171 |
Unearned Compensation - restricted stock awards | -339 | -335 |
Paid-in capital | 13,698 | 13,668 |
Retained earnings | 42,266 | 42,240 |
Accumulated other comprehensive income, net | 2,205 | 1,046 |
Total Shareholders' Equity | 74,001 | 72,790 |
Total Liabilities and Shareholders' Equity | $589,771 | $587,109 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ' | ' |
Loans receivable, allowance for loan losses | $4,894 | $4,683 |
Intangible assets, net of accumulated amortization | $2,023 | $1,967 |
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 | 1,711,121 | 1,710,121 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Non-interest expense | ' | ' | |
Net income | $551 | $940 | |
Statements of Income | ' | ' | |
Interest and dividend income | ' | ' | |
Interest and fees on loans | 4,596 | 4,429 | |
Interest on debt securities | ' | ' | |
Taxable | 381 | 467 | |
Tax exempt | 445 | 488 | |
Other interest and dividends | 21 | 22 | |
Total interest and dividend income | 5,443 | 5,406 | |
Interest expense | ' | ' | |
Deposits | 351 | 490 | |
Repurchase agreements | 1 | 1 | |
Capital lease | 18 | ' | |
Federal Home Loan Bank of Boston advances | 298 | 312 | |
Total interest expense | 668 | 803 | |
Net interest and dividend income | 4,775 | 4,603 | |
Provision for loan losses | 337 | 396 | |
Net interest and dividend income after provision for loan losses | 4,438 | 4,207 | |
Non-interest income | ' | ' | |
Trust and wealth advisory | 779 | 725 | |
Service charges and fees | 542 | 516 | |
Gains on sales of mortgage loans, net | 11 | 279 | |
Mortgage servicing, net | 28 | 26 | |
Other | 78 | 79 | |
Total non-interest income | 1,438 | 1,625 | |
Non-interest expense | ' | ' | |
Salaries | 1,844 | 1,750 | |
Employee benefits | 741 | 685 | |
Premises and equipment | 673 | 583 | |
Data processing | 399 | 419 | |
Professional fees | 619 | [1] | 380 |
Collections and OREO | 135 | 157 | |
FDIC insurance | 98 | 125 | |
Marketing and community support | 113 | 122 | |
Amortization of intangibles | 56 | 56 | |
Other | 432 | 428 | |
Total non-interest expense | 5,110 | 4,705 | |
Income before income taxes | 766 | 1,127 | |
Income tax provision | 215 | 187 | |
Net income | 551 | 940 | |
Net income available to common shareholders | $505 | $900 | |
Basic and diluted earnings per common share | $0.29 | $0.53 | |
Diluted earnings per common share | $0.29 | $0.53 | |
Common dividends per share | $0.28 | $0.28 | |
[1] | Includes one-time professional fees of $261,000 incurred in conjunction with the following strategic initiatives for the three month period ended March 31, 2014: (i) the entering of an agreement to acquire the Sharon, CT branch office of Union Savings Bank and related branch deposits and the consolidation of an existing Salisbury branch office in Sharon, CT with such branch, which is expected to be consummated in June of 2014 and which has received all required regulatory approvals; and (ii) the execution of an agreement to merge Riverside Bank of Poughkeepsie, NY with and into Salisbury Bank, which agreement was announced March 19, 2014. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $551 | $940 |
Statements of Comprehensive Income | ' | ' |
Net income | 551 | 940 |
Other comprehensive (loss) income | ' | ' |
Net unrealized gains (losses) on securities available-for-sale | 1,757 | -356 |
Reclassification of net realized gains in net income | ' | ' |
Unrealized gains (losses) on securities available-for-sale | 1,757 | -356 |
Income tax (expense) benefit | -598 | 121 |
Unrealized gains (losses) on securities available-for-sale, net of tax | 1,159 | -235 |
Change in unrecognized pension plan costs | ' | ' |
Income tax (benefit) expense | ' | ' |
Pension plan income (loss), net of tax | ' | ' |
Other comprehensive income (loss), net of tax | 1,159 | -235 |
Comprehensive income | $1,710 | $705 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (USD $) | Common Stock | Preferred stock | Paid-in capital | Retained earnings | Unearned compensation - restricted stock awards | Accumulated other comprehensive income | Total |
In Thousands, except Share data | |||||||
Balance - Beginning at Dec. 31, 2012 | $169 | $16,000 | $13,158 | $40,233 | ' | $2,437 | $71,997 |
Balance - Beginning, shares at Dec. 31, 2012 | 1,689,691 | ' | ' | ' | ' | ' | ' |
Net income for period | ' | ' | ' | 940 | ' | ' | 940 |
Other comprehensive income, net of tax | ' | ' | ' | ' | ' | -235 | -235 |
Common stock dividends declared | ' | ' | ' | -479 | ' | ' | -479 |
Preferred stock dividends declared | ' | ' | ' | -41 | ' | ' | -41 |
Issuance of restricted common stock | 2 | ' | 488 | ' | -490 | ' | ' |
Issuance of restricted common stock, shares | 19,600 | ' | ' | ' | ' | ' | ' |
Stock based compensation-restricted stock awards | ' | ' | ' | ' | 24 | ' | 24 |
Balance - Ending at Mar. 31, 2013 | 171 | 16,000 | 13,646 | 40,653 | -466 | 2,202 | 72,206 |
Balance - Ending, shares at Mar. 31, 2013 | 1,709,291 | ' | ' | ' | ' | ' | ' |
Balance - Beginning at Dec. 31, 2013 | 171 | 16,000 | 13,668 | 42,240 | -335 | 1,046 | 72,790 |
Balance - Beginning, shares at Dec. 31, 2013 | 1,710,121 | ' | ' | ' | ' | ' | ' |
Net income for period | ' | ' | ' | 551 | ' | ' | 551 |
Other comprehensive income, net of tax | ' | ' | ' | ' | ' | 1,159 | 1,159 |
Common stock dividends declared | ' | ' | ' | -479 | ' | ' | -479 |
Preferred stock dividends declared | ' | ' | ' | -46 | ' | ' | -46 |
Issuance of restricted common stock | ' | ' | 80 | ' | -80 | ' | ' |
Issuance of restricted common stock, shares | 3,000 | ' | ' | ' | ' | ' | ' |
Forfeiture of restricted common stock | ' | ' | -50 | ' | 50 | ' | ' |
Forfeiture of restricted common stock, shares | -2,000 | ' | ' | ' | ' | ' | ' |
Stock based compensation-restricted stock awards | ' | ' | ' | ' | 26 | ' | 26 |
Balance - Ending at Mar. 31, 2014 | $171 | $16,000 | $13,698 | $42,266 | ($339) | $2,205 | $74,001 |
Balance - Ending, shares at Mar. 31, 2014 | 1,711,121 | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities | ' | ' |
Net income | $551 | $940 |
Statements of Cash Flows | ' | ' |
Operating Activities | ' | ' |
Net income | 551 | 940 |
Amortization and depreciation | ' | ' |
Securities | 60 | 155 |
Bank premises and equipment | 225 | 215 |
Core deposit intangible | 56 | 56 |
Mortgage servicing rights | 79 | 104 |
Fair value adjustment on loans | 8 | 8 |
(Gains) and losses: | ' | ' |
Gains on sales of loans, excluding capitalized servicing rights | -6 | -127 |
Loss on sale/disposal of premises and equipment | 1 | ' |
Gains recognized on other real estate owned | ' | -1 |
Provision for loan losses | 337 | 396 |
Proceeds from sales of loans | 501 | 7,093 |
Loans originated for sale | -442 | -5,797 |
Increase in deferred loan origination fees and costs, net | -4 | -37 |
Mortgage servicing rights originated | -5 | -152 |
Decrease in mortgage servicing rights impairment reserve | -11 | -33 |
Increase in interest receivable | -44 | -204 |
Deferred tax benefit | -12 | -13 |
(Increase) decrease in prepaid expenses | -46 | 15 |
Increase in cash surrender value of life insurance policies | -58 | -61 |
(Increase) decrease in income tax receivable | -7 | 169 |
(Increase) decrease in other assets | -22 | 32 |
Increase in accrued expenses | 304 | 174 |
Increase (decrease) in interest payable | 1 | -33 |
Increase (decrease) in other liabilities | 982 | -383 |
Issuance of shares of restricted stock | 26 | 24 |
Net cash provided by operating activities | 2,474 | 2,540 |
Investing Activities | ' | ' |
Redemption of Federal Home Loan Bank of Boston stock | ' | 408 |
Maturities of interest-bearing time deposits with other banks | 738 | ' |
Proceeds from calls of securities available-for-sale | 1,120 | 1,200 |
Proceeds from maturities of securities available-for-sale | 2,393 | 5,911 |
Loan originations and principle collections, net | -8,689 | -19,423 |
Recoveries of loans previously charged-off | 8 | 3 |
Proceeds from sale of other real estate owned | ' | 1,086 |
Capital expenditures | -664 | -35 |
Net cash utilized by investing activities | -5,094 | -10,850 |
Financing Activities | ' | ' |
Increase (decrease) in deposit transaction accounts | 2,140 | -1,661 |
Decrease in time deposits | -1,997 | -1,782 |
Increase in securities sold under agreements to repurchase | 89 | 545 |
Principal payments on Federal Home Loan Bank of Boston advances | -394 | -406 |
Common stock dividends paid | -479 | -479 |
Preferred stock dividends paid | -46 | -40 |
Net cash utilized by financing activities | -687 | -3,823 |
Net decrease in cash and cash equivalents | -3,307 | -12,133 |
Cash and cash equivalents, beginning of period | 12,711 | 43,574 |
Cash and cash equivalents, end of period | 9,404 | 31,441 |
Cash paid during year | ' | ' |
Interest | 667 | 948 |
Income taxes | 1,234 | 1,285 |
Non-cash transfers | ' | ' |
Transfer from loans to other real estate owned | ' | $1,553 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
BASIS OF PRESENTATION | ' | ||
NOTE 1 - BASIS OF PRESENTATION | |||
The interim (unaudited) consolidated financial statements of Salisbury Bancorp, Inc. ("Salisbury") include those of Salisbury and its wholly owned subsidiary, Salisbury Bank and Trust Company (the "Bank"). In the opinion of management, the interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position of Salisbury and the statements of income, comprehensive income, shareholders’ equity and cash flows for the interim periods presented. | |||
The financial statements have been prepared in accordance with generally accepted accounting principles. 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 balance sheet, 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 and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for loan losses and valuation of real estate, management obtains independent appraisals for significant properties. | |||
Certain financial information, which is normally included in financial statements prepared in accordance with generally accepted accounting principles, but which is not required for interim reporting purposes, has been condensed or omitted. Operating results for the interim period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2013 Annual Report on Form 10-K for the period ended December 31, 2013. | |||
The allowance for loan losses is a significant accounting policy and is presented in the Notes to Consolidated Financial Statements and in Management’s Discussion and Analysis, which provides information on how significant assets are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions and estimates underlying those amounts, management has identified the determination of the allowance for loan losses to be the accounting area that requires the most subjective judgments, and as such could be most subject to revision as new information becomes available. | |||
Impact of New Accounting Pronouncements Issued | |||
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 did not 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 recognize 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 insubstance 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. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the criteria for reporting discontinued operations and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning on or after December 15, 2014, and interim periods within those years. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
SECURITIES
SECURITIES | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
SECURITIES | ' | ||||||||||||||||||||||||
NOTE 2 - SECURITIES | |||||||||||||||||||||||||
The composition of securities is as follows: | |||||||||||||||||||||||||
(in thousands) | Amortized | Gross un- | Gross un-realized losses | Fair value | |||||||||||||||||||||
cost (1) | realized gains | ||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
U.S. Treasury notes | $ | 2,497 | $ | 145 | $ | — | $ | 2,642 | |||||||||||||||||
U.S. Government Agency notes | 2,505 | 66 | — | 2,571 | |||||||||||||||||||||
Municipal bonds | 40,690 | 873 | (917 | ) | 40,646 | ||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||
U.S. Government Agencies | 31,926 | 544 | (34 | ) | 32,436 | ||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
U.S. Government Agencies | 3,313 | 32 | — | 3,345 | |||||||||||||||||||||
Non-agency | 7,422 | 614 | (15 | ) | 8,021 | ||||||||||||||||||||
SBA bonds | 1,885 | 141 | — | 2,026 | |||||||||||||||||||||
Preferred Stock | 20 | 968 | — | 988 | |||||||||||||||||||||
Total securities available-for-sale | $ | 90,258 | $ | 3,383 | $ | (966 | ) | $ | 92,675 | ||||||||||||||||
Non-marketable securities | |||||||||||||||||||||||||
Federal Home Loan Bank of Boston stock | $ | 5,340 | $ | — | $ | — | $ | 5,340 | |||||||||||||||||
(in thousands) | Amortized | Gross un- | Gross un-realized losses | Fair value | |||||||||||||||||||||
cost (1) | realized gains | ||||||||||||||||||||||||
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-down recognized in earnings. | ||||||||||||||||||||||||
Salisbury did not sell any securities available-for-sale during the three month periods ended March 31, 2014 and 2013. | |||||||||||||||||||||||||
The following table summarizes, for all securities in an unrealized loss position, including debt securities for which a portion of other-than-temporary impairment has been recognized in other comprehensive income, the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(in thousands) | Value | losses | value | losses | value | losses | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Municipal bonds | $ | 11,154 | $ | 407 | $ | 2,708 | $ | 510 | $ | 13,862 | $ | 917 | |||||||||||||
Mortgage-backed securities | 2,128 | — | 2,105 | 34 | 4,233 | 34 | |||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 366 | 3 | 185 | 6 | 551 | 9 | |||||||||||||||||||
Total temporarily impaired securities | 13,648 | 410 | 4,998 | 550 | 18,646 | 960 | |||||||||||||||||||
Other-than-temporarily impaired securities | |||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 299 | 6 | — | — | 299 | 6 | |||||||||||||||||||
Total temporarily and other-than-temporarily impaired securities | $ | 13,947 | $ | 416 | $ | 4,998 | $ | 550 | $ | 18,945 | $ | 966 | |||||||||||||
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 is 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 March 31, 2014. | |||||||||||||||||||||||||
U.S Government Agency notes, U.S. Government Agency mortgage-backed securities and U.S. Government Agency CMOs: The contractual cash flows are derived from 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 March 31, 2014. | |||||||||||||||||||||||||
8 | |||||||||||||||||||||||||
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 March 31, 2014. | |||||||||||||||||||||||||
Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at March 31, 2014, 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 March 31, 2014. 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. | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
Three months ended March 31 (in thousands) | 2014 | 2013 | |||||||||||||||||||||||
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 | |||||||||||||||||||||
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 March 31, 2014. 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 | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||||||||||||||
NOTE 3 - LOANS | |||||||||||||||||||||||||||||||||||||||||
The composition of loans receivable and loans held-for-sale is as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 236,608 | $ | 231,113 | |||||||||||||||||||||||||||||||||||||
Residential 5+ multifamily | 4,804 | 4,848 | |||||||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,044 | 1,876 | |||||||||||||||||||||||||||||||||||||||
Home equity credit | 33,941 | 34,139 | |||||||||||||||||||||||||||||||||||||||
Residential real estate | 277,397 | 271,976 | |||||||||||||||||||||||||||||||||||||||
Commercial | 95,514 | 91,853 | |||||||||||||||||||||||||||||||||||||||
Construction of commercial | 10,230 | 10,948 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | 105,744 | 102,801 | |||||||||||||||||||||||||||||||||||||||
Farm land | 3,368 | 3,402 | |||||||||||||||||||||||||||||||||||||||
Vacant land | 9,038 | 9,067 | |||||||||||||||||||||||||||||||||||||||
Real estate secured | 395,547 | 387,246 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 47,030 | 46,292 | |||||||||||||||||||||||||||||||||||||||
Municipal | 4,016 | 4,252 | |||||||||||||||||||||||||||||||||||||||
Consumer | 3,633 | 3,889 | |||||||||||||||||||||||||||||||||||||||
Loans receivable, gross | 450,226 | 441,679 | |||||||||||||||||||||||||||||||||||||||
Deferred loan origination fees and costs, net | 1,186 | 1,182 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (4,894 | ) | (4,683 | ) | |||||||||||||||||||||||||||||||||||||
Loans receivable, net | $ | 446,518 | $ | 438,178 | |||||||||||||||||||||||||||||||||||||
Loans held-for-sale | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 120 | $ | 173 | |||||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||||||||
Loan Credit Quality | |||||||||||||||||||||||||||||||||||||||||
The composition of loans receivable by risk rating grade is as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Pass | Special mention | Substandard | Doubtful | Loss | Total | |||||||||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 218,660 | $ | 11,854 | $ | 5,999 | $ | 95 | $ | — | $ | 236,608 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 2,639 | 1,190 | 975 | — | — | 4,804 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,044 | — | — | — | — | 2,044 | |||||||||||||||||||||||||||||||||||
Home equity credit | 31,288 | 1,269 | 1,384 | — | — | 33,941 | |||||||||||||||||||||||||||||||||||
Residential real estate | 254,631 | 14,313 | 8,358 | 95 | — | 277,397 | |||||||||||||||||||||||||||||||||||
Commercial | 71,538 | 15,897 | 8,079 | — | — | 95,514 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 9,214 | 429 | 587 | — | — | 10,230 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 80,752 | 16,326 | 8,666 | — | — | 105,744 | |||||||||||||||||||||||||||||||||||
Farm land | 836 | 1,408 | 1,124 | — | — | 3,368 | |||||||||||||||||||||||||||||||||||
Vacant land | 5,618 | 258 | 3,162 | — | — | 9,038 | |||||||||||||||||||||||||||||||||||
Real estate secured | 341,837 | 32,305 | 21,310 | 95 | — | 395,547 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 37,900 | 8,198 | 932 | — | — | 47,030 | |||||||||||||||||||||||||||||||||||
Municipal | 4,016 | — | — | — | — | 4,016 | |||||||||||||||||||||||||||||||||||
Consumer | 3,500 | 100 | 33 | — | — | 3,633 | |||||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 387,253 | $ | 40,603 | $ | 22,275 | $ | 95 | $ | — | $ | 450,226 | |||||||||||||||||||||||||||||
(in thousands) | Pass | Special mention | Substandard | Doubtful | Loss | Total | |||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
The composition of loans receivable by delinquency status is as follows: | |||||||||||||||||||||||||||||||||||||||||
Past due | |||||||||||||||||||||||||||||||||||||||||
180 | 30 | Accruing 90 | |||||||||||||||||||||||||||||||||||||||
days | days | days | |||||||||||||||||||||||||||||||||||||||
29-Jan | 30-59 | 60-89 | 90-179 | and | and | and | Non- | ||||||||||||||||||||||||||||||||||
(in thousands) | Current | days | days | days | days | over | over | over | accrual | ||||||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 230,872 | $ | 2,272 | $ | 1,423 | $ | 930 | $ | 898 | $ | 213 | $ | 3,464 | $ | — | $ | 2,316 | |||||||||||||||||||||||
Residential 5+ multifamily | 4,707 | — | — | 97 | — | — | 97 | — | — | ||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,044 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Home equity credit | 32,071 | 1,075 | 576 | 49 | 48 | 122 | 795 | — | 446 | ||||||||||||||||||||||||||||||||
Residential real estate | 269,694 | 3,347 | 1,999 | 1,076 | 946 | 335 | 4,356 | — | 2,762 | ||||||||||||||||||||||||||||||||
Commercial | 89,722 | 3,742 | 435 | 369 | — | 1,246 | 2,050 | — | 1,841 | ||||||||||||||||||||||||||||||||
Construction of commercial | 10,094 | — | — | — | 136 | — | 136 | — | 136 | ||||||||||||||||||||||||||||||||
Commercial real estate | 99,816 | 3,742 | 435 | 369 | 136 | 1,246 | 2,186 | — | 1,977 | ||||||||||||||||||||||||||||||||
Farm land | 2,964 | 20 | — | — | — | 384 | 384 | — | 384 | ||||||||||||||||||||||||||||||||
Vacant land | 6,057 | 8 | 77 | — | 26 | 2,870 | 2,973 | 26 | 2,870 | ||||||||||||||||||||||||||||||||
Real estate secured | 378,531 | 7,117 | 2,511 | 1,445 | 1,108 | 4,835 | 9,899 | 26 | 7,993 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 46,653 | 267 | 65 | 23 | 22 | — | 110 | — | 108 | ||||||||||||||||||||||||||||||||
Municipal | 4,016 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Consumer | 3,511 | 94 | 27 | 1 | — | — | 28 | — | 22 | ||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 432,711 | $ | 7,478 | $ | 2,603 | $ | 1,469 | $ | 1,130 | $ | 4,835 | $ | 10,037 | $ | 26 | $ | 8,123 | |||||||||||||||||||||||
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 | — | — | ||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 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 | |||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings occurring during the periods are as follows: | |||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2014 | Three months ended March 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Quantity | Pre-modification balance | Post-modification balance | Quantity | Pre-modification balance | Post-modification balance | |||||||||||||||||||||||||||||||||||
Residential real estate | 1 | $ | 48 | $ | 48 | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial real estate | 1 | 250 | 250 | 2 | 1,022 | 1,022 | |||||||||||||||||||||||||||||||||||
Home equity credit | 1 | 30 | 30 | — | — | — | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | 3 | $ | 328 | $ | 328 | 2 | $ | 1,022 | $ | 1,022 | |||||||||||||||||||||||||||||||
Rate reduction | — | $ | — | $ | — | 2 | $ | 1,022 | $ | 1,022 | |||||||||||||||||||||||||||||||
Interest only and term extension | 1 | 48 | 48 | — | — | — | |||||||||||||||||||||||||||||||||||
Debt consolidation and term extension | 1 | 250 | 250 | — | — | — | |||||||||||||||||||||||||||||||||||
Interest only | 1 | 30 | 30 | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Troubled debt restructurings | 3 | $ | 328 | $ | 328 | 2 | $ | 1,022 | $ | 1,022 | |||||||||||||||||||||||||||||||
Three loans were restructured during the quarter ended March 31, 2014 and all were current at March 31, 2014. | |||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||||||||||||||
Changes in the allowance for loan losses are as follows: | |||||||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||||||||||||||||||||||||||
(in | Beginning | Charge- | Reco- | Ending | Beginning | Charge- | Reco- | Ending | |||||||||||||||||||||||||||||||||
thousands) | balance | Provision | offs | veries | balance | balance | Provision | offs | veries | balance | |||||||||||||||||||||||||||||||
Residential | $ | 1,938 | $ | 64 | $ | (74 | ) | $ | 2 | $ | 1,930 | $ | 1,934 | $ | 23 | $ | (18 | ) | $ | — | $ | 1,939 | |||||||||||||||||||
Commercial | 1,385 | 157 | (51 | ) | — | 1,491 | 1,059 | 178 | — | — | 1,237 | ||||||||||||||||||||||||||||||
Land | 226 | 1 | (1 | ) | — | 226 | 301 | 265 | (38 | ) | — | 528 | |||||||||||||||||||||||||||||
Real estate | 3,549 | 222 | (126 | ) | 2 | 3,647 | 3,294 | 466 | (56 | ) | — | 3,704 | |||||||||||||||||||||||||||||
Commercial and industrial | 562 | 16 | (1 | ) | — | 577 | 499 | (40 | ) | (4 | ) | — | 455 | ||||||||||||||||||||||||||||
Municipal | 43 | (3 | ) | — | — | 40 | 36 | 4 | — | — | 40 | ||||||||||||||||||||||||||||||
Consumer | 105 | (47 | ) | (7 | ) | 6 | 57 | 91 | (15 | ) | (13 | ) | 3 | 66 | |||||||||||||||||||||||||||
Unallocated | 424 | 149 | — | — | 573 | 440 | (19 | ) | — | — | 421 | ||||||||||||||||||||||||||||||
Totals | $ | 4,683 | $ | 337 | $ | (134 | ) | $ | 8 | $ | 4,894 | $ | 4,360 | $ | 396 | $ | (73 | ) | $ | 3 | $ | 4,686 | |||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 230,456 | $ | 894 | $ | 6,152 | $ | 624 | $ | 236,608 | $ | 1,518 | |||||||||||||||||||||||||||||
Residential 5+ multifamily | 3,856 | 20 | 948 | — | 4,804 | 20 | |||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,044 | 12 | — | — | 2,044 | 12 | |||||||||||||||||||||||||||||||||||
Home equity credit | 33,447 | 360 | 494 | 20 | 33,941 | 380 | |||||||||||||||||||||||||||||||||||
Residential real estate | 269,803 | 1,286 | 7,594 | 644 | 277,397 | 1,930 | |||||||||||||||||||||||||||||||||||
Commercial | 90,750 | 1,013 | 4,764 | 365 | 95,514 | 1,378 | |||||||||||||||||||||||||||||||||||
Construction of commercial | 10,094 | 113 | 136 | — | 10,230 | 113 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 100,844 | 1,126 | 4,900 | 365 | 105,744 | 1,491 | |||||||||||||||||||||||||||||||||||
Farm land | 2,984 | 60 | 384 | — | 3,368 | 60 | |||||||||||||||||||||||||||||||||||
Vacant land | 5,945 | 65 | 3,093 | 101 | 9,038 | 166 | |||||||||||||||||||||||||||||||||||
Real estate secured | 379,576 | 2,537 | 15,971 | 1,110 | 395,547 | 3,647 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 46,373 | 539 | 657 | 38 | 47,030 | 577 | |||||||||||||||||||||||||||||||||||
Municipal | 4,016 | 40 | — | — | 4,016 | 40 | |||||||||||||||||||||||||||||||||||
Consumer | 3,524 | 34 | 109 | 23 | 3,633 | 57 | |||||||||||||||||||||||||||||||||||
Unallocated allowance | — | — | — | — | — | 573 | |||||||||||||||||||||||||||||||||||
Totals | $ | 433,489 | $ | 3,150 | $ | 16,737 | $ | 1,171 | $ | 450,226 | $ | 4,894 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
The credit quality segments of loans receivable and the allowance for loan losses are as follows: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated | Individually evaluated | Total portfolio | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Loans | Allowance | Loans | Allowance | Loans | Allowance | |||||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Performing loans | $ | 425,540 | $ | 2,900 | $ | 87 | $ | 23 | $ | 425,627 | $ | 2,923 | |||||||||||||||||||||||||||||
Potential problem loans | 7,949 | 250 | 179 | 19 | 8,128 | 269 | |||||||||||||||||||||||||||||||||||
Impaired loans | — | — | 16,471 | 1,129 | 16,471 | 1,129 | |||||||||||||||||||||||||||||||||||
Unallocated allowance | — | 573 | — | — | — | 573 | |||||||||||||||||||||||||||||||||||
Totals | $ | 433,489 | $ | 3,723 | $ | 16,737 | $ | 1,171 | $ | 450,226 | $ | 4,894 | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Performing loans | $ | 419,734 | $ | 2,835 | $ | 157 | $ | 69 | $ | 416,891 | $ | 2,904 | |||||||||||||||||||||||||||||
Potential problem loans | 8,687 | 252 | 429 | 19 | 9,116 | 301 | |||||||||||||||||||||||||||||||||||
Impaired loans | — | — | 15,672 | 1,053 | 15,672 | 1,053 | |||||||||||||||||||||||||||||||||||
Unallocated allowance | — | 425 | — | — | — | 425 | |||||||||||||||||||||||||||||||||||
Totals | $ | 425,421 | $ | 3,542 | $ | 16,258 | $ | 1,141 | $ | 441,679 | $ | 4,683 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 4,342 | $ | 4,407 | $ | 4,370 | $ | 605 | $ | 25 | $ | 2,595 | $ | 3,120 | $ | 2,730 | $ | 11 | |||||||||||||||||||||||
Home equity credit | 72 | 72 | 84 | 20 | — | 423 | 541 | 441 | — | ||||||||||||||||||||||||||||||||
Residential real estate | 4,414 | 4,479 | 4,454 | 625 | 25 | 3,018 | 3,661 | 3,171 | 11 | ||||||||||||||||||||||||||||||||
Commercial | 2,933 | 3,017 | 2,854 | 365 | 31 | 1,831 | 2,393 | 1,738 | 11 | ||||||||||||||||||||||||||||||||
Construction of Commercial | — | — | — | — | — | 136 | 157 | 103 | — | ||||||||||||||||||||||||||||||||
Farm land | — | — | — | — | — | 384 | 384 | 384 | — | ||||||||||||||||||||||||||||||||
Vacant land | 3,092 | 3,888 | 3,094 | 101 | 3 | — | 100 | — | — | ||||||||||||||||||||||||||||||||
Real estate secured | 10,439 | 11,384 | 10,402 | 1,091 | 59 | 5,369 | 6,695 | 5,396 | 22 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 112 | 149 | 116 | 38 | — | 529 | 931 | 553 | 8 | ||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | 22 | 22 | 22 | — | ||||||||||||||||||||||||||||||||
Totals | $ | 10,551 | $ | 11,533 | $ | 10,518 | $ | 1,129 | $ | 59 | $ | 5,920 | $ | 7,648 | $ | 5,971 | $ | 30 | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Construction of Commercial | — | — | 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 | |||||||||||||||||||||||
MORTGAGE_SERVICING_RIGHTS
MORTGAGE SERVICING RIGHTS | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||
MORTGAGE SERVICING RIGHTS | ' | ||||||||
NOTE 4 - MORTGAGE SERVICING RIGHTS | |||||||||
March 31, (in thousands) | 2014 | 2013 | |||||||
Residential mortgage loans serviced for others | $ | 144,197 | $ | 148,705 | |||||
Fair value of mortgage servicing rights | 1,646 | 1,739 | |||||||
Changes in mortgage servicing rights are as follows: | |||||||||
Three months | |||||||||
Periods ended March 31, (in thousands) | 2014 | 2013 | |||||||
Mortgage Servicing Rights | |||||||||
Balance, beginning of period | $ | 980 | $ | 1,075 | |||||
Originated | 5 | 152 | |||||||
Amortization (1) | (79 | ) | (103 | ) | |||||
Balance, end of period | 906 | 1,124 | |||||||
Valuation Allowance | |||||||||
Balance, beginning of period | (15 | ) | (38 | ) | |||||
Decrease in impairment reserve (1) | 11 | 33 | |||||||
Balance, end of period | (4 | ) | (5 | ) | |||||
Loan servicing rights, net | $ | 902 | $ | 1,119 | |||||
-1 | Amortization expense and changes in the impairment reserve are recorded in loan servicing fee income. |
PLEDGED_ASSETS
PLEDGED ASSETS | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
PLEDGED ASSETS | ' | ||||||||
NOTE 5 - PLEDGED ASSETS | |||||||||
(in thousands) | 31-Mar-14 | 31-Dec-13 | |||||||
Securities available-for-sale (at fair value) | $ | 56,769 | $ | 57,623 | |||||
Loans receivable | 132,301 | 130,574 | |||||||
Total pledged assets | $ | 189,070 | $ | 188,197 | |||||
At March 31, 2014, securities were pledged as follows: $46.3 million to secure public deposits, $10.4 million to secure repurchase agreements and $0.1 million to secure FHLBB advances. Loans receivable were pledged to secure FHLBB advances and credit facilities. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS PER SHARE | ' | ||||||||
NOTE 6 – EARNINGS PER SHARE | |||||||||
The Company defines unvested share-based payment awards that contain nonforfeitable rights to dividends as participating securities that are included in computing Earnings Per Share (“EPS”) using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Earnings per common share are calculated by dividing earnings allocated to common stockholders by the weighted-average number of common shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. | |||||||||
The following table sets forth the computation of earnings per share (basic and diluted) for the periods indicated: | |||||||||
Periods ended March 31, (in thousands) | 2014 | 2013 | |||||||
Net income | $ | 551 | $ | 940 | |||||
Less: Preferred stock dividends declared | (46 | ) | (40 | ) | |||||
Net income available to common shareholders | 505 | 900 | |||||||
Less: Undistributed earnings allocated to participating securities | (6 | ) | (10 | ) | |||||
Net income allocated to common stock | $ | 499 | $ | 890 | |||||
Common shares issued | 1,712 | 1,709 | |||||||
Less: Unvested restricted stock awards | (21 | ) | (20 | ) | |||||
Common shares outstanding used to calculate basic earnings per common share | 1,691 | 1,689 | |||||||
Add: Dilutive effect of unvested restricted stock awards | — | — | |||||||
Common shares outstanding used to calculate diluted earnings per common share | 1,691 | 1,689 | |||||||
Earnings per common share (basic and diluted) | $ | 0.29 | 0.53 |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||||||||||||||||
NOTE 7 – 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 March 31, 2014, that Salisbury and the Bank meet all of their capital adequacy requirements. | |||||||||||||||||||||||||
In December 2010, the Basel Committee, a group of bank regulatory supervisors from around the world, released its final framework for strengthening international capital and liquidity regulation, now officially identified by the Basel Committee as “Basel III.” Basel III, when fully implemented by the U.S. bank regulatory agencies and fully phased-in, will require bank holding companies and their bank subsidiaries to maintain substantially more capital, with a greater emphasis on common equity. | |||||||||||||||||||||||||
In July 2013, the Federal Reserve Board, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation approved final rules to implement the Basel III capital framework. The rules will be effective on January 1, 2015 and phased-in over a multiple year period through 2019. The new capital rules call for higher quality capital with higher minimum capital level requirements. We are in the process of assessing the impact from these new regulatory requirements, and while we cannot be certain of the impact, we believe that we will exceed the requirements of adequately capitalized plus the buffer, once they become effective. | |||||||||||||||||||||||||
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 | |||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | $ | 66,808 | 16.42 | % | $ | 32,545 | 8 | % | n/a | — | |||||||||||||||
Bank | 56,573 | 13.8 | 32,802 | 8 | $ | 41,002 | 10 | % | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | 61,447 | 15.1 | 16,273 | 4 | n/a | — | |||||||||||||||||||
Bank | 51,212 | 12.49 | 16,401 | 4 | 24,601 | 6 | |||||||||||||||||||
Tier 1 Capital (to average assets) | |||||||||||||||||||||||||
Salisbury | 61,447 | 10.65 | 23,070 | 4 | n/a | — | |||||||||||||||||||
Bank | 51,212 | 8.88 | 23,059 | 4 | 28,824 | 5 | |||||||||||||||||||
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 | |||||||||||||||||||
DIVIDENDS | |||||||||||||||||||||||||
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”) $16,000,000 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. | |||||||||||||||||||||||||
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 March 31, 2014 was 1.00%. 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 fixed at the rate in effect at the end of the ninth quarterly dividend period and after four and one-half years from its issuance the dividend rate will be fixed at 9 percent 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. |
PENSIONS_AND_OTHER_BENEFITS
PENSIONS AND OTHER BENEFITS | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
PENSIONS AND OTHER BENEFITS | ' | ||||||||
NOTE 8 – PENSION AND OTHER BENEFITS | |||||||||
The components of net periodic cost for Salisbury’s insured noncontributory defined benefit retirement plan were as follows: | |||||||||
Three months ended March 31, (in thousands) | 2014 | 2013 | |||||||
Service cost | $ | — | $ | — | |||||
Interest cost on benefit obligation | 67 | 66 | |||||||
Expected return on plan assets | (75 | ) | (67 | ) | |||||
Amortization of net loss | (4 | ) | — | ||||||
Settlements and curtailments | — | — | |||||||
Net periodic benefit cost | $ | (12 | ) | $ | (1 | ) | |||
Salisbury’s 401(k) Plan expense was $164,000 and $83,000, respectively, for the three month periods ended March 31, 2014 and 2013. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $13,000 and $11,000 for the three month periods ended March 31, 2014 and 2013, 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. | |||||||||
Other Retirement Plans | |||||||||
A Non-Qualified Deferred Compensation Plan (the "Plan") was effective January 1, 2013. This Plan was adopted by 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. | |||||||||
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. | |||||||||
On January 3, 2014, Salisbury granted a total of 3,000 shares of restricted stock, pursuant to its 2011 Long Term Incentive Plan, to two (2) additional employees, including 2,000 shares to one Named Executive Officer, Donald E. White, Chief Financial Officer. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ||||||||
NOTE 9 –ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||
The components of accumulated other comprehensive income is as follows: | |||||||||
At March 31, (in thousands) | 2014 | 2013 | |||||||
Unrealized gains on securities available-for-sale, net of tax | $ | 1,595 | $ | 2,671 | |||||
Unrecognized pension plan benefit (expense), net of tax | 610 | (469 | ) | ||||||
Accumulated other comprehensive (loss) income, net | $ | 2,205 | $ | 2,202 |
FAIR_VALUE_OF_ASSETS_AND_LIABI
FAIR VALUE OF ASSETS AND LIABILITIES | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
FAIR VALUE ASSETS AND LIABILITIES | ' | ||||||||||||||||||||
NOTE 10 – FAIR VALUE OF ASSETS AND LIABILITIES | |||||||||||||||||||||
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. | |||||||||||||||||||||
ASC 820-10, “Fair Value Measurements and Disclosures,” 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 quarter ended March 31, 2014. | |||||||||||||||||||||
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-Mar-14 | |||||||||||||||||||||
Assets measured at fair value on a recurring basis | |||||||||||||||||||||
U.S. Treasury notes | $ | — | $ | 2,642 | $ | — | $ | 2,642 | |||||||||||||
U.S. Government agency notes | — | 2,571 | — | 2,571 | |||||||||||||||||
Municipal bonds | — | 40,646 | — | 40,646 | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | — | 32,436 | — | 32,436 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
U.S. Government agencies | — | 3,345 | — | 3,345 | |||||||||||||||||
Non-agency | — | 8,021 | — | 8,021 | |||||||||||||||||
SBA bonds | — | 2,026 | — | 2,026 | |||||||||||||||||
Preferred stocks | 988 | — | — | 988 | |||||||||||||||||
Securities available-for-sale | $ | 988 | $ | 91,687 | $ | — | $ | 92,675 | |||||||||||||
Assets measured at fair value on a non-recurring basis | |||||||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 9,786 | $ | 9,786 | |||||||||||||
Other real estate owned | — | — | 377 | 377 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets measured 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 measured at fair value on a non-recurring basis | |||||||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 9,782 | $ | 9,782 | |||||||||||||
Other real estate owned | — | — | 377 | 377 | |||||||||||||||||
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-Mar-14 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 9,404 | $ | 9,404 | $ | 9,404 | $ | — | $ | — | |||||||||||
Securities available-for-sale | 92,675 | 92,675 | 988 | 91,687 | — | ||||||||||||||||
Federal Home Loan Bank stock | 5,340 | 5,340 | — | 5,340 | — | ||||||||||||||||
Loans held-for-sale | 120 | 121 | — | — | 121 | ||||||||||||||||
Loans receivable, net | 446,518 | 442,073 | — | — | 442,073 | ||||||||||||||||
Accrued interest receivable | 1,804 | 1,804 | — | — | 1,804 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Demand (non-interest-bearing) | $ | 80,935 | $ | 80,935 | $ | — | $ | — | $ | 80,935 | |||||||||||
Demand (interest-bearing) | 79,330 | 79,330 | — | — | 79,330 | ||||||||||||||||
Money market | 123,898 | 123,898 | — | — | 123,898 | ||||||||||||||||
Savings and other | 112,306 | 112,306 | — | — | 112,306 | ||||||||||||||||
Certificates of deposit | 81,043 | 81,522 | — | — | 81,522 | ||||||||||||||||
Deposits | 477,512 | 477,991 | — | — | 477,991 | ||||||||||||||||
FHLBB advances | 30,017 | 32,430 | — | — | 32,430 | ||||||||||||||||
Repurchase agreements | 2,643 | 2,643 | — | — | 2,643 | ||||||||||||||||
Capital lease liability | 425 | 425 | 425 | — | — | ||||||||||||||||
Accrued interest payable | 141 | 141 | — | — | 141 | ||||||||||||||||
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 | ||||||||||||||||
The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets under the indicated captions. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Impact of New Accounting Pronouncements Issued | ' | ||
Impact of New Accounting Pronouncements Issued | |||
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 did not 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 recognize 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 insubstance 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. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the criteria for reporting discontinued operations and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning on or after December 15, 2014, and interim periods within those years. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
SECURITIES_Tables
SECURITIES (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Composition of Securities | ' | ||||||||||||||||||||||||
(in thousands) | Amortized | Gross un- | Gross un-realized losses | Fair value | |||||||||||||||||||||
cost (1) | realized gains | ||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
U.S. Treasury notes | $ | 2,497 | $ | 145 | $ | — | $ | 2,642 | |||||||||||||||||
U.S. Government Agency notes | 2,505 | 66 | — | 2,571 | |||||||||||||||||||||
Municipal bonds | 40,690 | 873 | (917 | ) | 40,646 | ||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||
U.S. Government Agencies | 31,926 | 544 | (34 | ) | 32,436 | ||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
U.S. Government Agencies | 3,313 | 32 | — | 3,345 | |||||||||||||||||||||
Non-agency | 7,422 | 614 | (15 | ) | 8,021 | ||||||||||||||||||||
SBA bonds | 1,885 | 141 | — | 2,026 | |||||||||||||||||||||
Preferred Stock | 20 | 968 | — | 988 | |||||||||||||||||||||
Total securities available-for-sale | $ | 90,258 | $ | 3,383 | $ | (966 | ) | $ | 92,675 | ||||||||||||||||
Non-marketable securities | |||||||||||||||||||||||||
Federal Home Loan Bank of Boston stock | $ | 5,340 | $ | — | $ | — | $ | 5,340 | |||||||||||||||||
(in thousands) | Amortized | Gross un- | Gross un-realized losses | Fair value | |||||||||||||||||||||
cost (1) | realized gains | ||||||||||||||||||||||||
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 | |||||||||||||||||
Aggreggate fair value and gross unrealized loss of securities | ' | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(in thousands) | Value | losses | value | losses | value | losses | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Municipal bonds | $ | 11,154 | $ | 407 | $ | 2,708 | $ | 510 | $ | 13,862 | $ | 917 | |||||||||||||
Mortgage-backed securities | 2,128 | — | 2,105 | 34 | 4,233 | 34 | |||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 366 | 3 | 185 | 6 | 551 | 9 | |||||||||||||||||||
Total temporarily impaired securities | 13,648 | 410 | 4,998 | 550 | 18,646 | 960 | |||||||||||||||||||
Other-than-temporarily impaired securities | |||||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||||
Non-agency | 299 | 6 | — | — | 299 | 6 | |||||||||||||||||||
Total temporarily and other-than-temporarily impaired securities | $ | 13,947 | $ | 416 | $ | 4,998 | $ | 550 | $ | 18,945 | $ | 966 | |||||||||||||
Activity related to credit losses recognized into earnings | ' | ||||||||||||||||||||||||
Three months ended March 31 (in thousands) | 2014 | 2013 | |||||||||||||||||||||||
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) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Composition of loans receivable and loans held-for-sale | ' | |||||||||||||||||||||||||||||||||||||||
(in thousands) | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 236,608 | $ | 231,113 | ||||||||||||||||||||||||||||||||||||
Residential 5+ multifamily | 4,804 | 4,848 | ||||||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,044 | 1,876 | ||||||||||||||||||||||||||||||||||||||
Home equity credit | 33,941 | 34,139 | ||||||||||||||||||||||||||||||||||||||
Residential real estate | 277,397 | 271,976 | ||||||||||||||||||||||||||||||||||||||
Commercial | 95,514 | 91,853 | ||||||||||||||||||||||||||||||||||||||
Construction of commercial | 10,230 | 10,948 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 105,744 | 102,801 | ||||||||||||||||||||||||||||||||||||||
Farm land | 3,368 | 3,402 | ||||||||||||||||||||||||||||||||||||||
Vacant land | 9,038 | 9,067 | ||||||||||||||||||||||||||||||||||||||
Real estate secured | 395,547 | 387,246 | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 47,030 | 46,292 | ||||||||||||||||||||||||||||||||||||||
Municipal | 4,016 | 4,252 | ||||||||||||||||||||||||||||||||||||||
Consumer | 3,633 | 3,889 | ||||||||||||||||||||||||||||||||||||||
Loans receivable, gross | 450,226 | 441,679 | ||||||||||||||||||||||||||||||||||||||
Deferred loan origination fees and costs, net | 1,186 | 1,182 | ||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (4,894 | ) | (4,683 | ) | ||||||||||||||||||||||||||||||||||||
Loans receivable, net | $ | 446,518 | $ | 438,178 | ||||||||||||||||||||||||||||||||||||
Loans held-for-sale | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 120 | $ | 173 | ||||||||||||||||||||||||||||||||||||
Composition of loans receivable by risk rating grade | ' | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Pass | Special mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 218,660 | $ | 11,854 | $ | 5,999 | $ | 95 | $ | — | $ | 236,608 | ||||||||||||||||||||||||||||
Residential 5+ multifamily | 2,639 | 1,190 | 975 | — | — | 4,804 | ||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,044 | — | — | — | — | 2,044 | ||||||||||||||||||||||||||||||||||
Home equity credit | 31,288 | 1,269 | 1,384 | — | — | 33,941 | ||||||||||||||||||||||||||||||||||
Residential real estate | 254,631 | 14,313 | 8,358 | 95 | — | 277,397 | ||||||||||||||||||||||||||||||||||
Commercial | 71,538 | 15,897 | 8,079 | — | — | 95,514 | ||||||||||||||||||||||||||||||||||
Construction of commercial | 9,214 | 429 | 587 | — | — | 10,230 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 80,752 | 16,326 | 8,666 | — | — | 105,744 | ||||||||||||||||||||||||||||||||||
Farm land | 836 | 1,408 | 1,124 | — | — | 3,368 | ||||||||||||||||||||||||||||||||||
Vacant land | 5,618 | 258 | 3,162 | — | — | 9,038 | ||||||||||||||||||||||||||||||||||
Real estate secured | 341,837 | 32,305 | 21,310 | 95 | — | 395,547 | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 37,900 | 8,198 | 932 | — | — | 47,030 | ||||||||||||||||||||||||||||||||||
Municipal | 4,016 | — | — | — | — | 4,016 | ||||||||||||||||||||||||||||||||||
Consumer | 3,500 | 100 | 33 | — | — | 3,633 | ||||||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 387,253 | $ | 40,603 | $ | 22,275 | $ | 95 | $ | — | $ | 450,226 | ||||||||||||||||||||||||||||
(in thousands) | Pass | Special mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Composition of loans receivable by delinquency status | ' | |||||||||||||||||||||||||||||||||||||||
Past due | ||||||||||||||||||||||||||||||||||||||||
180 | 30 | Accruing 90 | ||||||||||||||||||||||||||||||||||||||
days | days | days | ||||||||||||||||||||||||||||||||||||||
29-Jan | 30-59 | 60-89 | 90-179 | and | and | and | Non- | |||||||||||||||||||||||||||||||||
(in thousands) | Current | days | days | days | days | over | over | over | accrual | |||||||||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 230,872 | $ | 2,272 | $ | 1,423 | $ | 930 | $ | 898 | $ | 213 | $ | 3,464 | $ | — | $ | 2,316 | ||||||||||||||||||||||
Residential 5+ multifamily | 4,707 | — | — | 97 | — | — | 97 | — | — | |||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,044 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Home equity credit | 32,071 | 1,075 | 576 | 49 | 48 | 122 | 795 | — | 446 | |||||||||||||||||||||||||||||||
Residential real estate | 269,694 | 3,347 | 1,999 | 1,076 | 946 | 335 | 4,356 | — | 2,762 | |||||||||||||||||||||||||||||||
Commercial | 89,722 | 3,742 | 435 | 369 | — | 1,246 | 2,050 | — | 1,841 | |||||||||||||||||||||||||||||||
Construction of commercial | 10,094 | — | — | — | 136 | — | 136 | — | 136 | |||||||||||||||||||||||||||||||
Commercial real estate | 99,816 | 3,742 | 435 | 369 | 136 | 1,246 | 2,186 | — | 1,977 | |||||||||||||||||||||||||||||||
Farm land | 2,964 | 20 | — | — | — | 384 | 384 | — | 384 | |||||||||||||||||||||||||||||||
Vacant land | 6,057 | 8 | 77 | — | 26 | 2,870 | 2,973 | 26 | 2,870 | |||||||||||||||||||||||||||||||
Real estate secured | 378,531 | 7,117 | 2,511 | 1,445 | 1,108 | 4,835 | 9,899 | 26 | 7,993 | |||||||||||||||||||||||||||||||
Commercial and industrial | 46,653 | 267 | 65 | 23 | 22 | — | 110 | — | 108 | |||||||||||||||||||||||||||||||
Municipal | 4,016 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Consumer | 3,511 | 94 | 27 | 1 | — | — | 28 | — | 22 | |||||||||||||||||||||||||||||||
Loans receivable, gross | $ | 432,711 | $ | 7,478 | $ | 2,603 | $ | 1,469 | $ | 1,130 | $ | 4,835 | $ | 10,037 | $ | 26 | $ | 8,123 | ||||||||||||||||||||||
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 | — | — | |||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 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 | ||||||||||||||||||||||
Troubled debt restructurings | ' | |||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2014 | Three months ended March 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Quantity | Pre-modification balance | Post-modification balance | Quantity | Pre-modification balance | Post-modification balance | ||||||||||||||||||||||||||||||||||
Residential real estate | 1 | $ | 48 | $ | 48 | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
Commercial real estate | 1 | 250 | 250 | 2 | 1,022 | 1,022 | ||||||||||||||||||||||||||||||||||
Home equity credit | 1 | 30 | 30 | — | — | — | ||||||||||||||||||||||||||||||||||
Troubled debt restructurings | 3 | $ | 328 | $ | 328 | 2 | $ | 1,022 | $ | 1,022 | ||||||||||||||||||||||||||||||
Rate reduction | — | $ | — | $ | — | 2 | $ | 1,022 | $ | 1,022 | ||||||||||||||||||||||||||||||
Interest only and term extension | 1 | 48 | 48 | — | — | — | ||||||||||||||||||||||||||||||||||
Debt consolidation and term extension | 1 | 250 | 250 | — | — | — | ||||||||||||||||||||||||||||||||||
Interest only | 1 | 30 | 30 | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Troubled debt restructurings | 3 | $ | 328 | $ | 328 | 2 | $ | 1,022 | $ | 1,022 | ||||||||||||||||||||||||||||||
Changes in allowance for loan losses | ' | |||||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | |||||||||||||||||||||||||||||||||||||||
Beginning | Charge- | Reco- | Ending | Beginning | Charge- | Reco- | Ending | |||||||||||||||||||||||||||||||||
(in thousands) | balance | Provision | offs | veries | balance | balance | Provision | offs | veries | balance | ||||||||||||||||||||||||||||||
Residential | $ | 1,938 | $ | 64 | $ | (74 | ) | $ | 2 | $ | 1,930 | $ | 1,934 | $ | 23 | $ | (18 | ) | $ | — | $ | 1,939 | ||||||||||||||||||
Commercial | 1,385 | 157 | (51 | ) | — | 1,491 | 1,059 | 178 | — | — | 1,237 | |||||||||||||||||||||||||||||
Land | 226 | 1 | (1 | ) | — | 226 | 301 | 265 | (38 | ) | — | 528 | ||||||||||||||||||||||||||||
Real estate | 3,549 | 222 | (126 | ) | 2 | 3,647 | 3,294 | 466 | (56 | ) | — | 3,704 | ||||||||||||||||||||||||||||
Commercial and industrial | 562 | 16 | (1 | ) | — | 577 | 499 | (40 | ) | (4 | ) | — | 455 | |||||||||||||||||||||||||||
Municipal | 43 | (3 | ) | — | — | 40 | 36 | 4 | — | — | 40 | |||||||||||||||||||||||||||||
Consumer | 105 | (47 | ) | (7 | ) | 6 | 57 | 91 | (15 | ) | (13 | ) | 3 | 66 | ||||||||||||||||||||||||||
Unallocated | 424 | 149 | — | — | 573 | 440 | (19 | ) | — | — | 421 | |||||||||||||||||||||||||||||
Totals | $ | 4,683 | $ | 337 | $ | (134 | ) | $ | 8 | $ | 4,894 | $ | 4,360 | $ | 396 | $ | (73 | ) | $ | 3 | $ | 4,686 | ||||||||||||||||||
Composition of loans receivable and allowance for loan losses | ' | |||||||||||||||||||||||||||||||||||||||
Collectively evaluated | Individually evaluated | Total portfolio | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Loans | Allowance | Loans | Allowance | Loans | Allowance | ||||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 230,456 | $ | 894 | $ | 6,152 | $ | 624 | $ | 236,608 | $ | 1,518 | ||||||||||||||||||||||||||||
Residential 5+ multifamily | 3,856 | 20 | 948 | — | 4,804 | 20 | ||||||||||||||||||||||||||||||||||
Construction of residential 1-4 family | 2,044 | 12 | — | — | 2,044 | 12 | ||||||||||||||||||||||||||||||||||
Home equity credit | 33,447 | 360 | 494 | 20 | 33,941 | 380 | ||||||||||||||||||||||||||||||||||
Residential real estate | 269,803 | 1,286 | 7,594 | 644 | 277,397 | 1,930 | ||||||||||||||||||||||||||||||||||
Commercial | 90,750 | 1,013 | 4,764 | 365 | 95,514 | 1,378 | ||||||||||||||||||||||||||||||||||
Construction of commercial | 10,094 | 113 | 136 | — | 10,230 | 113 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 100,844 | 1,126 | 4,900 | 365 | 105,744 | 1,491 | ||||||||||||||||||||||||||||||||||
Farm land | 2,984 | 60 | 384 | — | 3,368 | 60 | ||||||||||||||||||||||||||||||||||
Vacant land | 5,945 | 65 | 3,093 | 101 | 9,038 | 166 | ||||||||||||||||||||||||||||||||||
Real estate secured | 379,576 | 2,537 | 15,971 | 1,110 | 395,547 | 3,647 | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 46,373 | 539 | 657 | 38 | 47,030 | 577 | ||||||||||||||||||||||||||||||||||
Municipal | 4,016 | 40 | — | — | 4,016 | 40 | ||||||||||||||||||||||||||||||||||
Consumer | 3,524 | 34 | 109 | 23 | 3,633 | 57 | ||||||||||||||||||||||||||||||||||
Unallocated allowance | — | — | — | — | — | 573 | ||||||||||||||||||||||||||||||||||
Totals | $ | 433,489 | $ | 3,150 | $ | 16,737 | $ | 1,171 | $ | 450,226 | $ | 4,894 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Credit quality segments of loans receivable and allowance for loan losses | ' | |||||||||||||||||||||||||||||||||||||||
Collectively evaluated | Individually evaluated | Total portfolio | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Loans | Allowance | Loans | Allowance | Loans | Allowance | ||||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Performing loans | $ | 425,540 | $ | 2,900 | $ | 87 | $ | 23 | $ | 425,627 | $ | 2,923 | ||||||||||||||||||||||||||||
Potential problem loans | 7,949 | 250 | 179 | 19 | 8,128 | 269 | ||||||||||||||||||||||||||||||||||
Impaired loans | — | — | 16,471 | 1,129 | 16,471 | 1,129 | ||||||||||||||||||||||||||||||||||
Unallocated allowance | — | 573 | — | — | — | 573 | ||||||||||||||||||||||||||||||||||
Totals | $ | 433,489 | $ | 3,723 | $ | 16,737 | $ | 1,171 | $ | 450,226 | $ | 4,894 | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Performing loans | $ | 416,734 | $ | 2,835 | $ | 157 | $ | 69 | $ | 416,891 | $ | 2,904 | ||||||||||||||||||||||||||||
Potential problem loans | 8,687 | 252 | 429 | 19 | 9,116 | 301 | ||||||||||||||||||||||||||||||||||
Impaired loans | — | — | 15,672 | 1,053 | 15,672 | 1,053 | ||||||||||||||||||||||||||||||||||
Unallocated allowance | — | 425 | — | — | — | 425 | ||||||||||||||||||||||||||||||||||
Totals | $ | 425,421 | $ | 3,542 | $ | 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 | |||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 4,342 | $ | 4,407 | $ | 4,370 | $ | 605 | $ | 25 | $ | 2,595 | $ | 3,120 | $ | 2,730 | $ | 11 | ||||||||||||||||||||||
Home equity credit | 72 | 72 | 84 | 20 | — | 423 | 541 | 441 | — | |||||||||||||||||||||||||||||||
Residential real estate | 4,414 | 4,479 | 4,454 | 625 | 25 | 3,018 | 3,661 | 3,171 | 11 | |||||||||||||||||||||||||||||||
Commercial | 2,933 | 3,017 | 2,854 | 365 | 31 | 1,831 | 2,393 | 1,738 | 11 | |||||||||||||||||||||||||||||||
Construction of Commercial | — | — | — | — | — | 136 | 157 | 103 | — | |||||||||||||||||||||||||||||||
Farm land | — | — | — | — | — | 384 | 384 | 384 | — | |||||||||||||||||||||||||||||||
Vacant land | 3,092 | 3,888 | 3,094 | 101 | 3 | — | 100 | — | — | |||||||||||||||||||||||||||||||
Real estate secured | 10,439 | 11,384 | 10,402 | 1,091 | 59 | 5,369 | 6,695 | 5,396 | 22 | |||||||||||||||||||||||||||||||
Commercial and industrial | 112 | 149 | 116 | 38 | — | 529 | 931 | 553 | 8 | |||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | 22 | 22 | 22 | — | |||||||||||||||||||||||||||||||
Totals | $ | 10,551 | $ | 11,533 | $ | 10,518 | $ | 1,129 | $ | 59 | $ | 5,920 | $ | 7,648 | $ | 5,971 | $ | 30 | ||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Construction of Commercial | — | — | 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 |
MORTGAGE_SERVICING_RIGHTS_Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||
Balance of loans serviced for others and fair value of mortgage servicing rights | ' | ||||||||
March 31, (in thousands) | 2014 | 2013 | |||||||
Residential mortgage loans serviced for others | $ | 144,197 | $ | 148,705 | |||||
Fair value of mortgage servicing rights | 1,646 | 1,739 | |||||||
Changes in mortgage servicing rights | ' | ||||||||
Three months | |||||||||
Periods ended March 31, (in thousands) | 2014 | 2013 | |||||||
Mortgage Servicing Rights | |||||||||
Balance, beginning of period | $ | 980 | $ | 1,075 | |||||
Originated | 5 | 152 | |||||||
Amortization (1) | (79 | ) | (103 | ) | |||||
Balance, end of period | 906 | 1,124 | |||||||
Valuation Allowance | |||||||||
Balance, beginning of period | (15 | ) | (38 | ) | |||||
Decrease in impairment reserve (1) | 11 | 33 | |||||||
Balance, end of period | (4 | ) | (5 | ) | |||||
Loan servicing rights, net | $ | 902 | $ | 1,119 |
PLEDGED_ASSETS_Tables
PLEDGED ASSETS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available | ' | ||||||||
(in thousands) | 31-Mar-14 | 31-Dec-13 | |||||||
Securities available-for-sale (at fair value) | $ | 56,769 | $ | 57,623 | |||||
Loans receivable | 132,301 | 130,574 | |||||||
Total pledged assets | $ | 189,070 | $ | 188,197 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation of earnings per share | ' | ||||||||
Periods ended March 31, (in thousands) | 2014 | 2013 | |||||||
Net income | $ | 551 | $ | 940 | |||||
Less: Preferred stock dividends declared | (46 | ) | (40 | ) | |||||
Net income available to common shareholders | 505 | 900 | |||||||
Less: Undistributed earnings allocated to participating securities | (6 | ) | (10 | ) | |||||
Net income allocated to common stock | $ | 499 | $ | 890 | |||||
Common shares issued | 1,712 | 1,709 | |||||||
Less: Unvested restricted stock awards | (21 | ) | (20 | ) | |||||
Common shares outstanding used to calculate basic earnings per common share | 1,691 | 1,689 | |||||||
Add: Dilutive effect of unvested restricted stock awards | — | — | |||||||
Common shares outstanding used to calculate diluted earnings per common share | 1,691 | 1,689 | |||||||
Earnings per common share (basic and diluted) | $ | 0.29 | 0.53 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
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 | |||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | $ | 66,808 | 16.42 | % | $ | 32,545 | 8 | % | n/a | — | |||||||||||||||
Bank | 56,573 | 13.8 | 32,802 | 8 | $ | 41,002 | 10 | % | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | |||||||||||||||||||||||||
Salisbury | 61,447 | 15.1 | 16,273 | 4 | n/a | — | |||||||||||||||||||
Bank | 51,212 | 12.49 | 16,401 | 4 | 24,601 | 6 | |||||||||||||||||||
Tier 1 Capital (to average assets) | |||||||||||||||||||||||||
Salisbury | 61,447 | 10.65 | 23,070 | 4 | n/a | — | |||||||||||||||||||
Bank | 51,212 | 8.88 | 23,059 | 4 | 28,824 | 5 | |||||||||||||||||||
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 |
PENSIONS_AND_OTHER_BENEFITS_Ta
PENSIONS AND OTHER BENEFITS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Components of net periodic cost | ' | ||||||||
Three months ended March 31, (in thousands) | 2014 | 2013 | |||||||
Service cost | $ | — | $ | — | |||||
Interest cost on benefit obligation | 67 | 66 | |||||||
Expected return on plan assets | (75 | ) | (67 | ) | |||||
Amortization of net loss | (4 | ) | — | ||||||
Settlements and curtailments | — | — | |||||||
Net periodic benefit cost | $ | (12 | ) | $ | (1 | ) |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Components of accumulated other comprehensive income | ' | ||||||||
At March 31, (in thousands) | 2014 | 2013 | |||||||
Unrealized gains on securities available-for-sale, net of tax | $ | 1,595 | $ | 2,671 | |||||
Unrecognized pension plan benefit (expense), net of tax | 610 | (469 | ) | ||||||
Accumulated other comprehensive (loss) income, net | $ | 2,205 | $ | 2,202 |
FAIR_VALUE_OF_ASSETS_AND_LIABI1
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
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-Mar-14 | |||||||||||||||||||||
Assets measured at fair value on a recurring basis | |||||||||||||||||||||
U.S. Treasury notes | $ | — | $ | 2,642 | $ | — | $ | 2,642 | |||||||||||||
U.S. Government agency notes | — | 2,571 | — | 2,571 | |||||||||||||||||
Municipal bonds | — | 40,646 | — | 40,646 | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | — | 32,436 | — | 32,436 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
U.S. Government agencies | — | 3,345 | — | 3,345 | |||||||||||||||||
Non-agency | — | 8,021 | — | 8,021 | |||||||||||||||||
SBA bonds | — | 2,026 | — | 2,026 | |||||||||||||||||
Preferred stocks | 988 | — | — | 988 | |||||||||||||||||
Securities available-for-sale | $ | 988 | $ | 91,687 | $ | — | $ | 92,675 | |||||||||||||
Assets measured at fair value on a non-recurring basis | |||||||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 9,786 | $ | 9,786 | |||||||||||||
Other real estate owned | — | — | 377 | 377 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets measured 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 measured at fair value on a non-recurring basis | |||||||||||||||||||||
Collateral dependent impaired loans | $ | — | $ | — | $ | 9,782 | $ | 9,782 | |||||||||||||
Other real estate owned | — | — | 377 | 377 | |||||||||||||||||
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-Mar-14 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 9,404 | $ | 9,404 | $ | 9,404 | $ | — | $ | — | |||||||||||
Securities available-for-sale | 92,675 | 92,675 | 988 | 91,687 | — | ||||||||||||||||
Federal Home Loan Bank stock | 5,340 | 5,340 | — | 5,340 | — | ||||||||||||||||
Loans held-for-sale | 120 | 121 | — | — | 121 | ||||||||||||||||
Loans receivable, net | 446,518 | 442,073 | — | — | 442,073 | ||||||||||||||||
Accrued interest receivable | 1,804 | 1,804 | — | — | 1,804 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Demand (non-interest-bearing) | $ | 80,935 | $ | 80,935 | $ | — | $ | — | $ | 80,935 | |||||||||||
Demand (interest-bearing) | 79,330 | 79,330 | — | — | 79,330 | ||||||||||||||||
Money market | 123,898 | 123,898 | — | — | 123,898 | ||||||||||||||||
Savings and other | 112,306 | 112,306 | — | — | 112,306 | ||||||||||||||||
Certificates of deposit | 81,043 | 81,522 | — | — | 81,522 | ||||||||||||||||
Deposits | 477,512 | 477,991 | — | — | 477,991 | ||||||||||||||||
FHLBB advances | 30,017 | 32,430 | — | — | 32,430 | ||||||||||||||||
Repurchase agreements | 2,643 | 2,643 | — | — | 2,643 | ||||||||||||||||
Capital lease liability | 425 | 425 | 425 | — | — | ||||||||||||||||
Accrued interest payable | 141 | 141 | — | — | 141 | ||||||||||||||||
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 |
SECURITIES_Composition_of_Secu
SECURITIES - Composition of Securities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized cost (1) | ' | ' |
Available-for-sale | ' | ' |
U.S. Treasury notes | $497 | $2,497 |
U.S. Government Agency notes | 2,505 | 2,507 |
Municipal bonds | 40,690 | 41,775 |
Mortgage backed securities, U.S. Government Agencies | 31,926 | 33,522 |
Collateralized mortgage obligations, U.S. Government Agencies | 3,313 | 3,545 |
Collateralized mortgage obligations, Non-agency | 7,422 | 7,923 |
SBA bonds | 1,885 | 2,042 |
Preferred Stock | 20 | 20 |
Total securities available-for-sale | 90,258 | 93,831 |
Non-marketable securities | ' | ' |
Federal Home Loan Bank of Boston stock | 5,340 | 5,340 |
Gross unrealized gains | ' | ' |
Available-for-sale | ' | ' |
U.S. Treasury notes | 145 | 160 |
U.S. Government Agency notes | 66 | 83 |
Municipal bonds | 873 | 782 |
Mortgage backed securities, U.S. Government Agencies | 544 | 442 |
Collateralized mortgage obligations, U.S. Government Agencies | 32 | 35 |
Collateralized mortgage obligations, Non-agency | 614 | 401 |
SBA bonds | 141 | 188 |
Preferred Stock | 968 | 777 |
Total securities available-for-sale | 3,383 | 2,868 |
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 | -917 | -2,120 |
Mortgage backed securities, U.S. Government Agencies | -34 | -72 |
Collateralized mortgage obligations, U.S. Government Agencies | ' | ' |
Collateralized mortgage obligations, Non-agency | -15 | -16 |
SBA bonds | ' | ' |
Preferred Stock | ' | ' |
Total securities available-for-sale | -966 | -2,208 |
Non-marketable securities | ' | ' |
Federal Home Loan Bank of Boston stock | ' | ' |
Fair value | ' | ' |
Available-for-sale | ' | ' |
U.S. Treasury notes | 2,642 | 2,657 |
U.S. Government Agency notes | 2,571 | 2,590 |
Municipal bonds | 40,646 | 40,437 |
Mortgage backed securities, U.S. Government Agencies | 32,436 | 33,892 |
Collateralized mortgage obligations, U.S. Government Agencies | 3,345 | 3,580 |
Collateralized mortgage obligations, Non-agency | 8,021 | 8,308 |
SBA bonds | 2,026 | 2,230 |
Preferred Stock | 988 | 797 |
Total securities available-for-sale | 92,675 | 94,491 |
Non-marketable securities | ' | ' |
Federal Home Loan Bank of Boston stock | $5,340 | $5,340 |
SECURITIES_Aggreggate_fair_val
SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Less Than 12 Months, Fair value | ' |
Available-for-sale | ' |
Municipal bonds | $11,154 |
Mortgage-backed securities | 2,128 |
Collateralized mortgage obligations, Non-agency | 366 |
Total temporarily impaired securities | 13,648 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 299 |
Total temporarily impaired and other-than-temporarily impaired securities | 13,947 |
Less Than 12 Months, Unrealized losses | ' |
Available-for-sale | ' |
Municipal bonds | 407 |
Mortgage-backed securities | ' |
Collateralized mortgage obligations, Non-agency | 3 |
Total temporarily impaired securities | 410 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 6 |
Total temporarily impaired and other-than-temporarily impaired securities | 416 |
12 Months or Longer, Fair value | ' |
Available-for-sale | ' |
Municipal bonds | 2,708 |
Mortgage-backed securities | 2,105 |
Collateralized mortgage obligations, Non-agency | 185 |
Total temporarily impaired securities | 4,998 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | ' |
Total temporarily impaired and other-than-temporarily impaired securities | 4,998 |
12 Months or Longer, Unrealized losses | ' |
Available-for-sale | ' |
Municipal bonds | 510 |
Mortgage-backed securities | 34 |
Collateralized mortgage obligations, Non-agency | 6 |
Total temporarily impaired securities | 550 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | ' |
Total temporarily impaired and other-than-temporarily impaired securities | 550 |
Total, Fair value | ' |
Available-for-sale | ' |
Municipal bonds | 13,862 |
Mortgage-backed securities | 4,233 |
Collateralized mortgage obligations, Non-agency | 551 |
Total temporarily impaired securities | 18,646 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 299 |
Total temporarily impaired and other-than-temporarily impaired securities | 18,945 |
Total, Unrealized losses | ' |
Available-for-sale | ' |
Municipal bonds | 917 |
Mortgage-backed securities | 34 |
Collateralized mortgage obligations, Non-agency | 9 |
Total temporarily impaired securities | 960 |
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 6 |
Total temporarily impaired and other-than-temporarily impaired securities | $966 |
SECURITIES_Activity_related_to
SECURITIES - Activity related to credit losses recognized into earnings (Details) (Activity related to credit losses recognized into earnings, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
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 | $1,128,000 |
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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Composition of loans receivable and loans held-for-sale | ' | ' |
Residential 1-4 family | $236,608 | $231,113 |
Residential 5+ multifamily | 4,804 | 4,848 |
Construction of residential 1-4 family | 2,044 | 1,876 |
Home equity credit | 33,941 | 34,139 |
Residential real estate | 277,397 | 271,976 |
Commercial | 95,514 | 91,853 |
Construction of commercial | 10,230 | 10,948 |
Commercial real estate | 105,744 | 102,801 |
Farm land | 3,368 | 3,402 |
Vacant land | 9,038 | 9,067 |
Real estate secured | 395,547 | 387,246 |
Commercial and industrial | 47,030 | 46,292 |
Municipal | 4,016 | 4,252 |
Consumer | 3,633 | 3,889 |
Loans receivable, gross | 450,226 | 441,679 |
Deferred loan origination fees and costs, net | 1,186 | 1,182 |
Allowance for loan losses | -4,894 | -4,683 |
Loans receivable, net | 446,518 | 438,178 |
Loans held-for-sale | ' | ' |
Residential 1-4 family | $120 | $173 |
LOANS_Composition_of_loans_rec1
LOANS - Composition of loans receivable by risk rating grade (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pass | ' | ' |
Residential 1-4 family | $218,660 | $212,683 |
Residential 5+ multifamily | 2,639 | 2,674 |
Construction of residential 1-4 family | 2,044 | 1,876 |
Home equity credit | 31,288 | 31,444 |
Residential real estate | 254,631 | 248,677 |
Commercial | 71,538 | 67,554 |
Construction of commercial | 9,214 | 10,257 |
Commercial real estate | 80,752 | 77,811 |
Farm land | 836 | 847 |
Vacant land | 5,618 | 5,640 |
Real estate secured | 341,837 | 332,975 |
Commercial and industrial | 37,900 | 37,860 |
Municipal | 4,016 | 4,252 |
Consumer | 3,500 | 3,739 |
Loans receivable, gross | 387,253 | 378,826 |
Special mention | ' | ' |
Residential 1-4 family | 11,854 | 12,338 |
Residential 5+ multifamily | 1,190 | 1,199 |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 1,269 | 1,355 |
Residential real estate | 14,313 | 14,892 |
Commercial | 15,897 | 16,044 |
Construction of commercial | 429 | 102 |
Commercial real estate | 16,326 | 16,146 |
Farm land | 1,408 | 1,421 |
Vacant land | 258 | 288 |
Real estate secured | 32,305 | 32,747 |
Commercial and industrial | 8,198 | 7,452 |
Municipal | ' | ' |
Consumer | 100 | 113 |
Loans receivable, gross | 40,603 | 40,312 |
Substandard | ' | ' |
Residential 1-4 family | 5,999 | 5,997 |
Residential 5+ multifamily | 975 | 975 |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 1,384 | 1,340 |
Residential real estate | 8,358 | 8,312 |
Commercial | 8,079 | 8,255 |
Construction of commercial | 587 | 589 |
Commercial real estate | 8,666 | 8,844 |
Farm land | 1,124 | 1,134 |
Vacant land | 3,162 | 3,139 |
Real estate secured | 21,310 | 21,429 |
Commercial and industrial | 932 | 980 |
Municipal | ' | ' |
Consumer | 33 | 37 |
Loans receivable, gross | 22,275 | 22,446 |
Doubtful | ' | ' |
Residential 1-4 family | 95 | 95 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | ' | ' |
Residential real estate | 95 | 95 |
Commercial | ' | ' |
Construction of commercial | ' | ' |
Commercial real estate | ' | ' |
Farm land | ' | ' |
Vacant land | ' | ' |
Real estate secured | 95 | 95 |
Commercial and industrial | ' | ' |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | 95 | 95 |
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 | 236,608 | 231,113 |
Residential 5+ multifamily | 4,804 | 4,848 |
Construction of residential 1-4 family | 2,044 | 1,876 |
Home equity credit | 33,941 | 34,139 |
Residential real estate | 277,397 | 271,976 |
Commercial | 95,514 | 91,853 |
Construction of commercial | 10,230 | 10,948 |
Commercial real estate | 105,744 | 102,801 |
Farm land | 3,368 | 3,402 |
Vacant land | 9,038 | 9,067 |
Real estate secured | 395,547 | 387,246 |
Commercial and industrial | 47,030 | 46,292 |
Municipal | 4,016 | 4,252 |
Consumer | 3,633 | 3,889 |
Loans receivable, gross | $450,226 | $441,679 |
LOANS_Composition_of_loans_rec2
LOANS - Composition of loans receivable by delinquency status (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current | ' | ' |
Residential 1-4 family | $230,872 | $222,356 |
Residential 5+ multifamily | 4,707 | 4,749 |
Construction of residential 1-4 family | 2,044 | 1,876 |
Home equity credit | 32,071 | 33,391 |
Residential real estate | 269,694 | 262,372 |
Commercial | 89,722 | 89,434 |
Construction of commercial | 10,094 | 9,784 |
Commercial real estate | 99,816 | 99,218 |
Farm land | 2,964 | 2,995 |
Vacant land | 6,057 | 6,058 |
Real estate secured | 378,531 | 370,643 |
Commercial and industrial | 46,653 | 45,897 |
Municipal | 4,016 | 4,252 |
Consumer | 3,511 | 3,746 |
Loans receivable, gross | 432,711 | 424,538 |
Past due 1-29 days | ' | ' |
Residential 1-4 family | 2,272 | 3,853 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 1,075 | 129 |
Residential real estate | 3,347 | 3,982 |
Commercial | 3,742 | 566 |
Construction of commercial | ' | 1,025 |
Commercial real estate | 3,742 | 1,591 |
Farm land | 20 | 23 |
Vacant land | 8 | 139 |
Real estate secured | 7,117 | 5,735 |
Commercial and industrial | 267 | 262 |
Municipal | ' | ' |
Consumer | 94 | 113 |
Loans receivable, gross | 7,478 | 6,110 |
Past due 30-59 days | ' | ' |
Residential 1-4 family | 1,423 | 1,795 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 576 | 361 |
Residential real estate | 1,999 | 2,156 |
Commercial | 435 | 371 |
Construction of commercial | ' | ' |
Commercial real estate | 435 | 371 |
Farm land | ' | ' |
Vacant land | 77 | ' |
Real estate secured | 2,511 | 2,527 |
Commercial and industrial | 65 | 112 |
Municipal | ' | ' |
Consumer | 27 | 29 |
Loans receivable, gross | 2,603 | 2,668 |
Past due 60-89 days | ' | ' |
Residential 1-4 family | 930 | 2,622 |
Residential 5+ multifamily | 97 | 99 |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 49 | 125 |
Residential real estate | 1,076 | 2,846 |
Commercial | 369 | 108 |
Construction of commercial | ' | 139 |
Commercial real estate | 369 | 247 |
Farm land | ' | ' |
Vacant land | ' | ' |
Real estate secured | 1,445 | 3,093 |
Commercial and industrial | 23 | ' |
Municipal | ' | ' |
Consumer | 1 | 1 |
Loans receivable, gross | 1,469 | 3,094 |
Past due 90-179 days | ' | ' |
Residential 1-4 family | 888 | 353 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 48 | ' |
Residential real estate | 946 | 353 |
Commercial | ' | 235 |
Construction of commercial | 136 | ' |
Commercial real estate | 136 | 235 |
Farm land | ' | ' |
Vacant land | 26 | ' |
Real estate secured | 1,108 | 588 |
Commercial and industrial | 22 | ' |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | 1,130 | 588 |
Past due 180 days and over | ' | ' |
Residential 1-4 family | 213 | 134 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 122 | 133 |
Residential real estate | 335 | 267 |
Commercial | 1,246 | 1,139 |
Construction of commercial | ' | ' |
Commercial real estate | 1,246 | 1,139 |
Farm land | 384 | 384 |
Vacant land | 2,870 | 2,870 |
Real estate secured | 4,835 | 4,660 |
Commercial and industrial | ' | 21 |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | 4,835 | 4,681 |
Past due 30 days and over | ' | ' |
Residential 1-4 family | 3,464 | 4,904 |
Residential 5+ multifamily | 97 | 99 |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 795 | 619 |
Residential real estate | 4,356 | 5,622 |
Commercial | 2,050 | 1,853 |
Construction of commercial | 136 | 139 |
Commercial real estate | 2,186 | 1,992 |
Farm land | 384 | 384 |
Vacant land | 2,973 | 2,870 |
Real estate secured | 9,899 | 10,868 |
Commercial and industrial | 110 | 133 |
Municipal | ' | ' |
Consumer | 28 | 30 |
Loans receivable, gross | 10,037 | 11,031 |
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 | 26 | ' |
Real estate secured | 26 | ' |
Commercial and industrial | ' | ' |
Municipal | ' | ' |
Consumer | ' | ' |
Loans receivable, gross | 26 | ' |
Non-accrual | ' | ' |
Residential 1-4 family | 2,316 | 1,525 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 446 | 402 |
Residential real estate | 2,762 | 1,927 |
Commercial | 1,841 | 1,857 |
Construction of commercial | 136 | ' |
Commercial real estate | 1,977 | 1,857 |
Farm land | 384 | 384 |
Vacant land | 2,870 | 2,870 |
Real estate secured | 7,993 | 7,038 |
Commercial and industrial | 108 | 134 |
Municipal | ' | ' |
Consumer | 22 | ' |
Loans receivable, gross | $8,123 | $7,172 |
LOANS_Troubled_debt_restructur
LOANS - Troubled debt restructurings (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Integer | Integer |
Residential real estate | ' | ' |
Quantity of troubled debt restructurings | 1 | ' |
Pre-modification balance | $48 | ' |
Post-modification balance | 48 | ' |
Commercial real estate | ' | ' |
Quantity of troubled debt restructurings | 1 | 2 |
Pre-modification balance | 250 | 1,022 |
Post-modification balance | 250 | 1,022 |
Home equity credit | ' | ' |
Quantity of troubled debt restructurings | 1 | ' |
Pre-modification balance | 30 | ' |
Post-modification balance | 30 | ' |
Total Troubled debt restructurings | ' | ' |
Quantity of troubled debt restructurings | 3 | 2 |
Pre-modification balance | 328 | 1,022 |
Post-modification balance | 328 | 1,022 |
Rate reduction | ' | ' |
Quantity of troubled debt restructurings | ' | 2 |
Pre-modification balance | ' | 1,022 |
Post-modification balance | ' | 1,022 |
Interest only and term extension | ' | ' |
Quantity of troubled debt restructurings | 1 | ' |
Pre-modification balance | 48 | ' |
Post-modification balance | 48 | ' |
Debt consolidation and term extension | ' | ' |
Quantity of troubled debt restructurings | 1 | ' |
Pre-modification balance | 250 | ' |
Post-modification balance | 250 | ' |
Interest only | ' | ' |
Quantity of troubled debt restructurings | 1 | ' |
Pre-modification balance | 30 | ' |
Post-modification balance | $30 | ' |
LOANS_Changes_in_allowance_for
LOANS - Changes in allowance for loan losses (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Beginning balance | Beginning balance | Provision | Provision | Charge-offs | Charge-offs | Recoveries | Recoveries | Ending balance | Ending balance | ||
Residential | ' | ' | $1,938 | $1,934 | $64 | $23 | ($74) | ($18) | $2 | ' | $1,930 | $1,939 |
Commercial | ' | ' | 1,385 | 1,059 | 157 | 178 | -51 | ' | ' | ' | 1,491 | 1,237 |
Land | ' | ' | 226 | 301 | 1 | 265 | -1 | -38 | ' | ' | 226 | 528 |
Real estate | ' | ' | 3,549 | 3,294 | 222 | 466 | -126 | -56 | 2 | ' | 3,647 | 3,704 |
Commercial & industrial | ' | ' | 562 | 499 | 16 | -40 | -1 | -4 | ' | ' | 577 | 455 |
Municipal | ' | ' | 43 | 36 | -3 | 4 | ' | ' | ' | ' | 40 | 40 |
Consumer | ' | ' | 105 | 91 | -47 | -15 | -7 | -13 | 6 | 3 | 57 | 66 |
Unallocated | ' | ' | 424 | 440 | 149 | -19 | ' | ' | ' | ' | 573 | 421 |
Totals | $4,894 | $4,683 | $4,683 | $4,360 | $337 | $396 | ($134) | ($73) | $8 | $3 | $4,894 | $4,686 |
LOANS_Composition_of_loans_rec3
LOANS - Composition of loans receivable and allowance for loan losses (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Collectively evaluated Loans | ' | ' |
Residential 1-4 family | $230,456 | $225,419 |
Residential 5+ multifamily | 3,856 | 3,894 |
Construction of residential 1-4 family | 2,044 | 1,876 |
Home equity credit | 33,447 | 33,689 |
Residential real estate | 269,803 | 264,878 |
Commercial | 90,750 | 87,059 |
Construction of commercial | 10,094 | 10,948 |
Commercial real estate | 100,844 | 98,007 |
Farm land | 2,984 | 3,018 |
Vacant land | 5,945 | 5,972 |
Real estate secured | 379,576 | 371,875 |
Commercial and industrial | 46,373 | 45,584 |
Municipal | 4,016 | 4,252 |
Consumer | 3,524 | 3,710 |
Unallocated allowance | ' | ' |
Totals | 433,489 | 425,421 |
Collectively evaluated Allowance | ' | ' |
Residential 1-4 family | 894 | 897 |
Residential 5+ multifamily | 20 | 20 |
Construction of residential 1-4 family | 12 | 11 |
Home equity credit | 360 | 363 |
Residential real estate | 1,286 | 1,291 |
Commercial | 1,013 | 977 |
Construction of commercial | 113 | 126 |
Commercial real estate | 1,126 | 1,103 |
Farm land | 60 | 61 |
Vacant land | 65 | 64 |
Real estate secured | 2,537 | 2,519 |
Commercial and industrial | 539 | 519 |
Municipal | 40 | 43 |
Consumer | 34 | 36 |
Unallocated allowance | ' | ' |
Totals | 3,150 | 3,117 |
Individually evaluated Loans | ' | ' |
Residential 1-4 family | 6,152 | 5,694 |
Residential 5+ multifamily | 948 | 954 |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 494 | 450 |
Residential real estate | 7,594 | 7,098 |
Commercial | 4,764 | 4,794 |
Construction of commercial | 136 | ' |
Commercial real estate | 4,900 | 4,794 |
Farm land | 384 | 384 |
Vacant land | 3,093 | 3,095 |
Real estate secured | 15,971 | 15,371 |
Commercial and industrial | 657 | 708 |
Municipal | ' | ' |
Consumer | 109 | 179 |
Unallocated allowance | ' | ' |
Totals | 16,737 | 16,258 |
Individually evaluated Allowance | ' | ' |
Residential 1-4 family | 624 | 617 |
Residential 5+ multifamily | ' | ' |
Construction of residential 1-4 family | ' | ' |
Home equity credit | 20 | 30 |
Residential real estate | 644 | 647 |
Commercial | 365 | 282 |
Construction of commercial | ' | ' |
Commercial real estate | 365 | 282 |
Farm land | ' | ' |
Vacant land | 101 | 101 |
Real estate secured | 1,110 | 1,030 |
Commercial and industrial | 38 | 42 |
Municipal | ' | ' |
Consumer | 23 | 69 |
Unallocated allowance | ' | ' |
Totals | 1,171 | 1,141 |
Total portfolio Loans | ' | ' |
Residential 1-4 family | 236,608 | 231,113 |
Residential 5+ multifamily | 4,804 | 4,848 |
Construction of residential 1-4 family | 2,044 | 1,876 |
Home equity credit | 33,941 | 34,139 |
Residential real estate | 277,397 | 271,976 |
Commercial | 95,514 | 91,853 |
Construction of commercial | 10,230 | 10,948 |
Commercial real estate | 105,744 | 102,801 |
Farm land | 3,368 | 3,402 |
Vacant land | 9,038 | 9,067 |
Real estate secured | 395,547 | 387,246 |
Commercial and industrial | 47,030 | 46,292 |
Municipal | 4,016 | 4,252 |
Consumer | 3,633 | 3,889 |
Unallocated allowance | ' | ' |
Totals | 450,226 | 441,679 |
Total portfolio Allowance | ' | ' |
Residential 1-4 family | 1,518 | 1,514 |
Residential 5+ multifamily | 20 | 20 |
Construction of residential 1-4 family | 12 | 11 |
Home equity credit | 380 | 393 |
Residential real estate | 1,930 | 1,938 |
Commercial | 1,378 | 1,259 |
Construction of commercial | 113 | 126 |
Commercial real estate | 1,491 | 1,385 |
Farm land | 60 | 61 |
Vacant land | 166 | 165 |
Real estate secured | 3,647 | 3,549 |
Commercial and industrial | 577 | 561 |
Municipal | 40 | 43 |
Consumer | 57 | 105 |
Unallocated allowance | 573 | 425 |
Totals | $4,894 | $4,683 |
LOANS_Credit_quality_segments_
LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Collectively evaluated Loans | ' | ' |
Performing loans | $425,540 | $416,734 |
Potential problem loans | 7,949 | 8,687 |
Impaired loans | ' | ' |
Unallocated allowance | ' | ' |
Totals | 433,489 | 425,421 |
Collectively evaluated Allowance | ' | ' |
Performing loans | 2,900 | 2,835 |
Potential problem loans | 250 | 252 |
Impaired loans | ' | ' |
Unallocated allowance | 573 | 425 |
Totals | 3,723 | 3,542 |
Individually evaluated Loans | ' | ' |
Performing loans | 87 | 157 |
Potential problem loans | 179 | 429 |
Impaired loans | 16,471 | 15,672 |
Unallocated allowance | ' | ' |
Totals | 16,737 | 16,258 |
Individually evaluated Allowance | ' | ' |
Performing loans | 23 | 69 |
Potential problem loans | 19 | 19 |
Impaired loans | 1,129 | 1,053 |
Unallocated allowance | ' | ' |
Totals | 1,171 | 1,141 |
Total portfolio Loans | ' | ' |
Performing loans | 425,627 | 416,891 |
Potential problem loans | 8,128 | 9,116 |
Impaired loans | 16,471 | 15,672 |
Unallocated allowance | ' | ' |
Totals | 450,226 | 441,679 |
Total portfolio Allowance | ' | ' |
Performing loans | 2,923 | 2,904 |
Potential problem loans | 269 | 301 |
Impaired loans | 1,129 | 1,053 |
Unallocated allowance | 573 | 425 |
Totals | $4,894 | $4,683 |
LOANS_Certain_data_with_respec
LOANS - Certain data with respect to loans individually evaluated for impairment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Impaired loans with specific allowance - Loan balance - Book | ' | ' |
Residential 1-4 family | $4,342 | $4,409 |
Home equity credit | 72 | 72 |
Residential real estate | 4,414 | 4,481 |
Commercial | 2,933 | 2,777 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | 3,092 | 3,095 |
Real estate secured | 10,439 | 10,353 |
Commercial and industrial | 112 | 119 |
Consumer | ' | ' |
Totals | 10,551 | 10,472 |
Impaired loans with specific allowance - Loan balance - Note | ' | ' |
Residential 1-4 family | 4,407 | 4,516 |
Home equity credit | 72 | 72 |
Residential real estate | 4,479 | 4,588 |
Commercial | 3,017 | 2,835 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | 3,888 | 3,889 |
Real estate secured | 11,384 | 11,312 |
Commercial and industrial | 149 | 154 |
Consumer | ' | ' |
Totals | 11,533 | 11,466 |
Impaired loans with specific allowance - Loan balance - Average | ' | ' |
Residential 1-4 family | 4,370 | 3,995 |
Home equity credit | 84 | 101 |
Residential real estate | 4,454 | 4,096 |
Commercial | 2,854 | 2,349 |
Commercial construction | ' | 3 |
Farm land | ' | ' |
Vacant land | 3,094 | 1,853 |
Real estate secured | 10,402 | 8,301 |
Commercial and industrial | 116 | 233 |
Consumer | ' | ' |
Totals | 10,518 | 8,534 |
Impaired loans with specific allowance - Specific allowance | ' | ' |
Residential 1-4 family | 605 | 598 |
Home equity credit | 20 | 30 |
Residential real estate | 625 | 628 |
Commercial | 365 | 282 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | 101 | 101 |
Real estate secured | 1,091 | 1,011 |
Commercial and industrial | 38 | 42 |
Consumer | ' | ' |
Totals | 1,129 | 1,053 |
Impaired loans with specific allowance - Income recognized | ' | ' |
Residential 1-4 family | 25 | 99 |
Home equity credit | ' | 2 |
Residential real estate | 25 | 101 |
Commercial | 31 | 127 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | 3 | ' |
Real estate secured | 59 | 228 |
Commercial and industrial | ' | 1 |
Consumer | ' | ' |
Totals | 59 | 229 |
Impaired loans with no specific allowance - Loan balance - Book | ' | ' |
Residential 1-4 family | 2,595 | 2,073 |
Home equity credit | 423 | 378 |
Residential real estate | 3,018 | 2,451 |
Commercial | 1,831 | 1,771 |
Commercial construction | 136 | ' |
Farm land | 384 | 384 |
Vacant land | ' | ' |
Real estate secured | 5,369 | 4,606 |
Commercial and industrial | 529 | 573 |
Consumer | 22 | 22 |
Totals | 5,920 | 5,201 |
Impaired loans with no specific allowance - Loan balance - Note | ' | ' |
Residential 1-4 family | 3,120 | 2,522 |
Home equity credit | 541 | 428 |
Residential real estate | 3,661 | 2,950 |
Commercial | 2,393 | 2,299 |
Commercial construction | 157 | 20 |
Farm land | 384 | 384 |
Vacant land | 100 | 100 |
Real estate secured | 6,695 | 5,753 |
Commercial and industrial | 931 | 975 |
Consumer | 22 | 22 |
Totals | 7,648 | 6,750 |
Impaired loans with no specific allowance - Loan balance - Average | ' | ' |
Residential 1-4 family | 2,730 | 2,285 |
Home equity credit | 441 | 251 |
Residential real estate | 3,171 | 2,536 |
Commercial | 1,738 | 2,411 |
Commercial construction | 103 | 8 |
Farm land | 384 | 118 |
Vacant land | ' | 1,430 |
Real estate secured | 5,396 | 6,503 |
Commercial and industrial | 553 | 595 |
Consumer | 22 | ' |
Totals | 5,971 | 7,098 |
Impaired loans with no specific allowance - Income recognized | ' | ' |
Residential 1-4 family | 11 | 54 |
Home equity credit | ' | 4 |
Residential real estate | 11 | 58 |
Commercial | 11 | 47 |
Commercial construction | ' | ' |
Farm land | ' | ' |
Vacant land | ' | ' |
Real estate secured | 22 | 105 |
Commercial and industrial | 8 | 36 |
Consumer | ' | ' |
Totals | $30 | $141 |
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 $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Balance of loans serviced for others and fair value of mortgage servicing rights | ' | ' |
Residential mortgage loans serviced for others | $144,197 | $148,705 |
Fair value of mortgage servicing rights | $1,646 | $1,739 |
MORTGAGE_SERVICING_RIGHTS_Chan
MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) (Changes in mortgage servicing rights, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Changes in mortgage servicing rights | ' | ' |
Mortgage Servicing Rights | ' | ' |
Balance, beginning of period | $980 | $1,075 |
Originated | 5 | 152 |
Amortization (1) | -79 | -103 |
Balance, end of period | 906 | 1,124 |
Valuation Allowance | ' | ' |
Balance, beginning of period | -15 | -38 |
Decrease in impairment reserve (1) | 11 | 33 |
Balance, end of period | -4 | -5 |
Loan servicing rights, net | $902 | $1,119 |
PLEDGED_ASSETS_Securities_and_
PLEDGED ASSETS - Securities and loans pledged (Details) (Securities and loans pledged, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities and loans pledged | ' | ' |
Securities available-for-sale (at fair value) | $56,769 | $57,623 |
Loans receivable | 132,301 | 130,574 |
Total pledged assets | $189,070 | $188,197 |
PLEDGED_ASSETS_Details_Narrati
PLEDGED ASSETS (Details Narrative) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Guarantees [Abstract] | ' |
Securities pledged to secure public deposits | $46,300 |
Securities pledged to secure repurchase agreements | 10,400 |
Securities pledged to secure FHLBB advances | $100 |
EARNINGS_PER_SHARE_Computation
EARNINGS PER SHARE - Computation of earnings per share (Details) (Calculation of earnings per share, USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Calculation of earnings per share | ' | ' |
Net income | $551 | $940 |
Less: Preferred stock dividends declared | -46 | -40 |
Net income available to common shareholders | 505 | 900 |
Less: Undistributed earnings allocated to participating securities | -6 | -10 |
Net income allocated to common stock | 499 | 890 |
Common shares issued | 1,712 | 1,709 |
Less: Unvested restricted stock awards | -21 | -20 |
Common shares outstanding used to calculate basic earnings per common share | 1,691 | 1,689 |
Add: Dilutive effect of unvested restricted stock awards | ' | ' |
Common shares outstanding used to calculate diluted earnings per common share | $1,691 | $1,689 |
Earnings per common share (basic and diluted) | $0.29 | $0.53 |
SHAREHOLDERS_EQUITY_Actual_reg
SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Salisbury | Salisbury | Bank | Bank |
Total Capital (to risk-weighted assets) | ' | ' | ' | ' |
Actual - Amount | $66,808 | $66,404 | $56,425 | $56,573 |
Actual - Ratio | 16.42% | 16.46% | 13.87% | 13.80% |
For Capital Adequacy - Amount | 32,545 | 32,280 | 32,539 | 32,802 |
For Capital Adequacy - Ratio | 8.00% | 8.00% | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | ' | ' | 40,674 | 41,002 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | ' | ' | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets) | ' | ' | ' | ' |
Actual - Amount | 61,447 | 61,340 | 51,361 | 51,212 |
Actual - Ratio | 15.10% | 15.20% | 12.63% | 12.49% |
For Capital Adequacy - Amount | 16,273 | 16,140 | 16,270 | 16,401 |
For Capital Adequacy - Ratio | 4.00% | 4.00% | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | ' | ' | 24,405 | 24,601 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | ' | ' | 6.00% | 6.00% |
Tier 1 Capital (to average assets) | ' | ' | ' | ' |
Actual - Amount | 61,447 | 61,340 | 51,361 | 51,212 |
Actual - Ratio | 10.65% | 10.65% | 8.96% | 8.88% |
For Capital Adequacy - Amount | 23,070 | 22,035 | 22,938 | 23,059 |
For Capital Adequacy - Ratio | 4.00% | 4.00% | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | ' | ' | $28,673 | $28,824 |
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 $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Aug. 31, 2011 |
Shareholders' Equity Details | ' | ' | ' | ' |
Series B Preferred Stock issued to Treasury under SBLF program | ' | ' | ' | $16,000 |
Dividend rate on Series B Preferred Stock | 1.00% | 9.00% | 1.00% | ' |
PENSIONS_AND_OTHER_BENEFITS_Co
PENSIONS AND OTHER BENEFITS - Components of net periodic cost (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Service cost | ' | ' |
Interest cost on benefit obligation | 67 | 66 |
Expected return on plan assets | -75 | -67 |
Amortization of net loss | -4 | ' |
Settlements and curtailments | ' | ' |
Net periodic benefit cost | ($12) | ($1) |
PENSIONS_AND_OTHER_BENEFITS_De
PENSIONS AND OTHER BENEFITS (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jan. 03, 2014 | Feb. 08, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' | ' |
401(k) Plan contribution expense | $164,000 | $83,000 | ' | ' | ' |
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements | 13,000,000 | 11,000,000 | ' | ' | ' |
Other Retirement Plans | ' | ' | ' | ' | ' |
Discretionary contribution to Executives' account | ' | ' | $59,590 | ' | ' |
Grants of Restricted Stock and Options | ' | ' | ' | ' | ' |
Shares of restricted stock granted pursuant to 2011 Long Term Incentive Plan | ' | ' | ' | 3,000 | 19,600 |
Portion of shares granted to one Named Executive Officer | ' | ' | ' | 2,000 | 5,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of accumulated other comprehensive income (Details) (Components of accumulated other comprehensive income, USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of accumulated other comprehensive income | ' | ' |
Unrealized gains on securities available-for-sale, net of tax | $1,595 | $2,671 |
Unrecognized pension plan benefit (expense), net of tax | 610 | -469 |
Accumulated other comprehensive (loss) income, net | $2,205 | $2,202 |
FAIR_VALUE_OF_ASSETS_AND_LIABI2
FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements Using - Level 1 | ' | ' |
Assets measured 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 | 988 | 797 |
Securities available-for-sale | 988 | 797 |
Assets measured at fair value on a non-recurring basis | ' | ' |
Collateral dependent impaired loans | ' | ' |
Other real estate owned | ' | ' |
Fair Value Measurements Using - Level 2 | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
U.S. Treasury notes | 2,642 | 2,657 |
U.S. Government agency notes | 2,571 | 2,590 |
Municipal bonds | 40,646 | 40,437 |
Mortgage backed securities: U.S. Government Agencies | 32,436 | 33,892 |
Collateralized mortgage obligations: U.S. Government Agencies | 3,345 | 3,580 |
Collateralized mortgage obligations: Non-agency | 8,021 | 8,308 |
SBA bonds | 2,026 | 2,230 |
Preferred Stock | ' | ' |
Securities available-for-sale | 91,687 | 93,694 |
Assets measured at fair value on a non-recurring basis | ' | ' |
Collateral dependent impaired loans | ' | ' |
Other real estate owned | ' | ' |
Fair Value Measurements Using - Level 3 | ' | ' |
Assets measured 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 measured at fair value on a non-recurring basis | ' | ' |
Collateral dependent impaired loans | 9,786 | 9,782 |
Other real estate owned | 377 | 377 |
Assets at fair value | ' | ' |
Assets measured at fair value on a recurring basis | ' | ' |
U.S. Treasury notes | 2,642 | 2,657 |
U.S. Government agency notes | 2,571 | 2,590 |
Municipal bonds | 40,646 | 40,437 |
Mortgage backed securities: U.S. Government Agencies | 32,436 | 33,892 |
Collateralized mortgage obligations: U.S. Government Agencies | 3,345 | 3,580 |
Collateralized mortgage obligations: Non-agency | 8,021 | 8,308 |
SBA bonds | 2,026 | 2,230 |
Preferred Stock | 988 | 797 |
Securities available-for-sale | 92,675 | 94,491 |
Assets measured at fair value on a non-recurring basis | ' | ' |
Collateral dependent impaired loans | 9,786 | 9,782 |
Other real estate owned | $377 | $377 |
FAIR_VALUE_OF_ASSETS_AND_LIABI3
FAIR VALUE OF ASSETS AND LIABILITIES - Carrying value and estimated fair values of financial instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying value | ' | ' |
Financial Assets | ' | ' |
Cash and due from banks | $9,404 | $12,711 |
Interest-bearing time deposits with other banks | ' | 738 |
Securities available-for-sale | 92,675 | 94,491 |
Federal Home Loan Bank stock | 5,340 | 5,340 |
Loans held-for-sale | 120 | 173 |
Loans receivable, net | 446,518 | 438,178 |
Accrued interest receivable | 1,804 | 1,760 |
Financial Liabilities | ' | ' |
Demand (non-interest-bearing) | 80,935 | 84,677 |
Demand (interest-bearing) | 79,330 | 81,932 |
Money market | 123,898 | 120,550 |
Savings and other | 112,306 | 107,171 |
Certificates of deposit | 81,043 | 83,039 |
Deposits | 477,512 | 477,369 |
FHLBB advances | 30,017 | 30,411 |
Repurchase agreements | 2,643 | 2,554 |
Capital lease liability | 425 | 425 |
Accrued interest payable | 141 | 140 |
Estimated fair value | ' | ' |
Financial Assets | ' | ' |
Cash and due from banks | 9,404 | 12,711 |
Interest-bearing time deposits with other banks | ' | 738 |
Securities available-for-sale | 92,675 | 94,491 |
Federal Home Loan Bank stock | 5,340 | 5,340 |
Loans held-for-sale | 121 | 175 |
Loans receivable, net | 442,073 | 430,645 |
Accrued interest receivable | 1,804 | 1,760 |
Financial Liabilities | ' | ' |
Demand (non-interest-bearing) | 80,935 | 84,677 |
Demand (interest-bearing) | 79,330 | 81,932 |
Money market | 123,898 | 120,550 |
Savings and other | 112,306 | 107,171 |
Certificates of deposit | 81,522 | 83,520 |
Deposits | 477,991 | 477,850 |
FHLBB advances | 32,430 | 33,034 |
Repurchase agreements | 2,643 | 2,554 |
Capital lease liability | 425 | 425 |
Accrued interest payable | 141 | 140 |
Fair Value Measurements Using - Level 1 | ' | ' |
Financial Assets | ' | ' |
Cash and due from banks | 9,404 | 12,711 |
Interest-bearing time deposits with other banks | ' | ' |
Securities available-for-sale | 988 | 797 |
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 | 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 | 91,687 | 93,694 |
Federal Home Loan Bank stock | 5,340 | 5,340 |
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 | 121 | 175 |
Loans receivable, net | 442,073 | 430,645 |
Accrued interest receivable | 1,804 | 1,760 |
Financial Liabilities | ' | ' |
Demand (non-interest-bearing) | 80,935 | 84,677 |
Demand (interest-bearing) | 79,330 | 81,932 |
Money market | 123,898 | 120,550 |
Savings and other | 112,306 | 107,171 |
Certificates of deposit | 81,522 | 83,520 |
Deposits | 477,991 | 477,850 |
FHLBB advances | 32,430 | 33,034 |
Repurchase agreements | 2,643 | 2,554 |
Capital lease liability | ' | ' |
Accrued interest payable | $141 | $140 |