Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 13, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | SALISBURY BANCORP INC | |
Entity Central Index Key | 1,060,219 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
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 | 2,733,576 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 11,436 | $ 13,280 |
Interest bearing demand deposits with other banks | 70,259 | 22,825 |
Total cash and cash equivalents | 81,695 | 36,105 |
Securities | ||
Available-for-sale at fair value | 80,371 | 91,312 |
Federal Home Loan Bank of Boston stock at cost | 3,515 | 3,515 |
Loans held-for-sale | 573 | 568 |
Loans receivable, net (allowance for loan losses: $5,659 and $5,358) | 687,719 | 673,330 |
Other real estate owned | 167 | 1,002 |
Bank premises and equipment, net | 14,588 | 14,431 |
Goodwill | 12,552 | 12,552 |
Intangible assets (net of accumulated amortization: $2,752 and $2,258) | 2,496 | 2,990 |
Accrued interest receivable | 2,296 | 2,334 |
Cash surrender value of life insurance policies | 13,591 | 13,314 |
Deferred taxes | 2,788 | 2,428 |
Other assets | 1,882 | 1,546 |
Total Assets | 904,233 | 855,427 |
Deposits | ||
Demand (non-interest bearing) | 194,618 | 161,386 |
Demand (interest bearing) | 129,779 | 117,169 |
Money market | 184,409 | 174,274 |
Savings and other | 123,017 | 121,387 |
Certificates of deposit | 129,656 | 141,210 |
Total deposits | 761,479 | 715,426 |
Repurchase agreements | 4,210 | 4,163 |
Federal Home Loan Bank of Boston advances | 26,928 | $ 28,813 |
Note payable | 380 | |
Capital lease liability | 422 | $ 424 |
Accrued interest and other liabilities | 5,364 | 4,780 |
Total Liabilities | 798,783 | 753,606 |
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: 5,000,000; Issued: 2,733,576 and 2,720,766 | 273 | 272 |
Paid-in capital | 41,362 | 41,077 |
Retained earnings | 46,558 | 42,677 |
Unearned compensation - restricted stock awards | (186) | (313) |
Accumulated other comprehensive income | 1,443 | 2,108 |
Total Shareholders' Equity | 105,450 | 101,821 |
Total Liabilities and Shareholders' Equity | $ 904,233 | $ 855,427 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Allowance for loan losses, loans receivable | $ 5,659 | $ 5,358 |
Accumulated amortization, intangible assets | $ 2,752 | $ 2,258 |
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 | 5,000,000 | 5,000,000 |
Common stock, issued | 2,733,576 | 2,720,766 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 7,955 | $ 4,656 | $ 23,727 | $ 13,983 |
Interest on debt securities | ||||
Taxable | 286 | 330 | 910 | 1,075 |
Tax exempt | 351 | 416 | 1,098 | 1,294 |
Other interest and dividends | 58 | 42 | 132 | 87 |
Total interest and dividend income | 8,650 | 5,444 | 25,867 | 16,439 |
Interest expense | ||||
Deposits | 463 | 379 | 1,359 | 1,079 |
Repurchase agreements | 2 | 3 | 5 | 5 |
Capital lease | 18 | $ 12 | 53 | $ 29 |
Note payable | 1 | 1 | ||
Federal Home Loan Bank of Boston advances | 269 | $ 296 | 832 | $ 892 |
Total interest expense | 753 | 690 | 2,250 | 2,005 |
Net interest and dividend income | 7,897 | 4,754 | 23,617 | 14,434 |
Provision for loan losses | 655 | 318 | 651 | 969 |
Net interest and dividend income after provision for loan losses | 7,242 | 4,436 | 22,966 | 13,465 |
Non-interest income | ||||
Trust and wealth advisory | 798 | 791 | 2,510 | 2,509 |
Service charges and fees | 798 | $ 639 | 2,307 | $ 1,807 |
Gains on sales and calls of available-for-sale securities, net | 6 | 192 | ||
Gains on sales of mortgage loans, net | 47 | 227 | $ 43 | |
Mortgage servicing, net | 5 | $ 41 | (15) | 80 |
Other | 115 | 82 | 343 | 234 |
Total non-interest income | 1,769 | 1,553 | 5,564 | 4,673 |
Non-interest expense | ||||
Salaries | 2,531 | 1,980 | 7,520 | 5,776 |
Employee benefits | 916 | 697 | 2,881 | 2,176 |
Premises and equipment | 863 | 667 | 2,683 | 2,080 |
Data processing | 404 | 420 | 1,276 | 1,166 |
Professional fees | 398 | 315 | 1,642 | 1,025 |
Collections, OREO and loan related | 125 | 85 | 594 | 319 |
FDIC insurance | 163 | 119 | 494 | 340 |
Marketing and community support | 174 | 115 | 465 | 355 |
Amortization of core deposit intangibles | $ 161 | 75 | $ 494 | 194 |
Merger and acquisition related expenses | 196 | 586 | ||
Other | $ 467 | 439 | $ 1,528 | 1,269 |
Total non-interest expense | 6,202 | 5,108 | 19,577 | 15,286 |
Income before income taxes | 2,809 | 881 | 8,953 | 2,852 |
Income tax provision | 824 | 113 | 2,663 | 567 |
Net income | 1,985 | 768 | 6,290 | 2,285 |
Net income available to common shareholders | $ 1,945 | $ 728 | $ 6,170 | $ 2,159 |
Basic earnings per common share | $ .71 | $ .43 | $ 2.26 | $ 1.26 |
Diluted earnings per common share | .71 | .43 | 2.25 | 1.26 |
Common dividends per share | $ 0.28 | $ 0.28 | $ .84 | $ .84 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 1,985 | $ 768 | $ 6,290 | $ 2,285 |
Other comprehensive income (loss) | ||||
Net unrealized gains (losses) on securities available-for-sale | 116 | $ 342 | (816) | $ 2,771 |
Reclassification of net realized gains in net income | (6) | (192) | ||
Unrealized gains (losses) on securities available-for-sale | 110 | $ 342 | (1,008) | $ 2,771 |
Income tax (expense) benefit | (37) | (116) | 343 | (942) |
Other comprehensive income (loss), net of tax | 73 | 226 | (665) | 1,829 |
Comprehensive income | $ 2,058 | $ 994 | $ 5,625 | $ 4,114 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Preferred stock | Paid-in capital | Retained earnings | Unearned compensation - restricted stock awards | Accumulated other comprehensive income | Total shareholders' equity |
Balance - Beginning, amount 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 the period | $ 2,285 | 2,285 | |||||
Other comprehensive income/loss, net of tax | $ 1,829 | 1,829 | |||||
Common stock dividends declared | $ (1,439) | (1,439) | |||||
Preferred stock dividends declared | $ (126) | $ (126) | |||||
Issuance of restricted common stock, amount | $ 81 | $ (81) | |||||
Issuance of restricted common stock, shares | 3,000 | ||||||
Forfeiture of restricted common stock, amount | (50) | $ 50 | |||||
Forfeiture of restricted common stock, shares | (2,000) | ||||||
Issuance of common stock for directors, amount | $ 65 | $ 65 | |||||
Issuance of common stock for directors, shares | 2,160 | ||||||
Stock based compensation - restricted stock awards | $ 112 | 112 | |||||
Balance - Ending, amount at Sep. 30, 2014 | $ 171 | $ 16,000 | $ 13,764 | $ 42,960 | (254) | $ 2,875 | 75,516 |
Balance - Ending, shares at Sep. 30, 2014 | 1,713,281 | ||||||
Balance - Beginning, amount at Dec. 31, 2014 | $ 272 | $ 16,000 | $ 41,077 | 42,677 | $ (313) | $ 2,108 | 101,821 |
Balance - Beginning, shares at Dec. 31, 2014 | 2,720,766 | ||||||
Net income for the period | $ 6,290 | 6,290 | |||||
Other comprehensive income/loss, net of tax | $ (665) | (665) | |||||
Common stock dividends declared | $ (2,289) | (2,289) | |||||
Preferred stock dividends declared | $ (120) | $ (120) | |||||
Forfeiture of restricted common stock, amount | $ (7) | $ 7 | |||||
Forfeiture of restricted common stock, shares | (300) | ||||||
Stock options exercised, amount | $ 1 | 182 | $ 183 | ||||
Stock options exercised, shares | 9,450 | ||||||
Issuance of common stock for executives, amount | 29 | 29 | |||||
Issuance of common stock for executives, shares | 1,000 | ||||||
Issuance of common stock for directors, amount | $ 81 | 81 | |||||
Issuance of common stock for directors, shares | 2,660 | ||||||
Stock based compensation - restricted stock awards | $ 120 | 120 | |||||
Balance - Ending, amount at Sep. 30, 2015 | $ 273 | $ 16,000 | $ 41,362 | $ 46,558 | $ (186) | $ 1,443 | $ 105,450 |
Balance - Ending, shares at Sep. 30, 2015 | 2,733,576 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net income | $ 6,290 | $ 2,285 |
(Accretion), amortization and depreciation: | ||
Securities | 178 | 163 |
Bank premises and equipment | 917 | 737 |
Core deposit intangible | 494 | 193 |
Mortgage servicing rights | 282 | 220 |
(increase) decrease fair value adjustment on loans | (2,031) | 24 |
(Increase) decrease fair value adjustment on deposits | (355) | 53 |
(Gains) and losses, including write-downs | ||
Gains on calls of securities available-for-sale, net | (40) | $ (39) |
Gains on sales of securities, available-for-sale, net | (152) | |
Gains on sales of loans, excluding capitalized servicing rights | (102) | |
Write-downs of other real estate owned | 238 | $ 4 |
Loss on sale/disposals of premises and equipment | 45 | 5 |
Provision for loan losses | 651 | 969 |
Proceeds from loans sold | 4,897 | 3,536 |
Loans originated for sale | (4,800) | (3,324) |
Decrease (increase) in deferred loan origination fees and costs, net | 25 | (21) |
Mortgage servicing rights originated | (125) | (6) |
Increase (decrease) in mortgage servicing rights impairment reserve | 3 | (14) |
Decrease (increase) in interest receivable | 38 | (74) |
Deferred tax benefit | (17) | (39) |
Increase in prepaid expenses | (409) | (81) |
Increase in cash surrender value of life insurance policies | $ (277) | (173) |
Increase in income tax receivable | $ (329) | |
Increase in income tax payable | $ 271 | |
Increase in other assets | (87) | $ (76) |
Decrease in accrued expenses | (11) | (144) |
Decrease in interest payable | (45) | (5) |
Increase in other liabilities | 369 | 82 |
Stock based compensation - restricted stock awards | 120 | 112 |
Net cash provided by operating activities | $ 6,367 | 4,058 |
Investing Activities | ||
Maturity of interest-bearing time deposits with other banks | 738 | |
Redemption of Federal Home Loan Bank stock | $ 1,825 | |
Purchases of securities available-for-sale | $ (9,322) | |
Proceeds from sales of securities available-for-sale | 3,861 | |
Proceeds from calls of securities available-for-sale | 7,995 | $ 4,115 |
Proceeds from maturities of securities available-for-sale | 7,413 | 7,539 |
Loan originations and principle collections, net | (13,748) | (24,694) |
Recoveries of loans previously charged off | 613 | 50 |
Proceeds from sale of other real estate owned | $ 698 | 40 |
Premiums paid on bank-owned life insurance | (1,100) | |
Cash and cash equivalents acquired from Sharon, CT branch office of another institution | 17,462 | |
Capital expenditures | $ (739) | (1,872) |
Net cash (utilized) provided by investing activities | (3,229) | 4,103 |
Financing Activities | ||
Increase in deposit transaction accounts, net | 57,607 | 24,527 |
(Decrease) increase in time deposits, net | (11,199) | 2,174 |
Increase in securities sold under agreements to repurchase, net | 47 | 3,946 |
Principal payments on Federal Home Loan Bank of Boston advances | (786) | $ (1,193) |
Modification payment on Federal Home Loan Bank of Boston advances | (1,099) | |
Decrease in capital lease obligation | (2) | $ (1) |
Stock options exercised | 183 | |
Issuance of shares for director fees | 81 | $ 65 |
Issuance of shares for executives | 29 | |
Common stock dividends paid | (2,289) | $ (1,439) |
Series B preferred stock dividends paid | (120) | (126) |
Net cash provided by financing activities | 42,452 | 27,953 |
Net increase in cash and cash equivalents | 45,590 | 36,114 |
Cash and cash equivalents, beginning of year | 36,105 | 12,711 |
Cash and cash equivalents, end of period | 81,695 | 48,825 |
Cash paid during year | ||
Interest | 2,650 | 2,010 |
Income taxes | 2,409 | $ 935 |
Non-cash Investing and Financing Activities | ||
Transfer from loans to other real estate owned | 101 | |
Note payable to finance building purchase | $ 380 | |
Sharon branch acquisition | ||
Cash and cash equivalents acquired | $ 17,462 | |
Net loans acquired | 63 | |
Fixed assets acquired | 158 | |
Core deposit intangible | 488 | |
Deposits assumed | 18,171 | |
Accrued interest payable assumed | $ 1 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
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 U.S. generally accepted accounting principles (GAAP). 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, expected cash flows from loans acquired in a business combination, other-than-temporary impairment of securities, impairment of goodwill and intangibles and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. 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 September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2014 Annual Report on Form 10-K for the year ended December 31, 2014. 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 May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The objective of this ASU is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in July 2015, the FASB voted to approve deferring the effective date by one year (i.e. interim and annual reporting periods beginning after December 15, 2017). Early adoption is permitted, but not before the original effective date (i.e. interim and annual reporting periods beginning after December 15, 2016). Salisbury is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The guidance should be applied on a retrospective basis. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-07: “Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” The objective of this update is to address the diversity in practice related to how certain investments measured at net asset value with redemption dates in the future are categorized within the fair value hierarchy. The amendments in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16: “Simplifying the Accounting for Measurement-Period Adjustments.” Under the ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of changes in depreciation or amortization, or other income effects (if any) as a result of the change to the provisional amounts, calculated as if the accounting had been completed as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined rather than retrospectively. The ASU also requires that the acquirer present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been issued. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized Gross un- Gross un- Fair value September 30, 2015 Available-for-sale U.S. Treasury notes $ 7,498 $ 67 $ — $ 7,565 U.S. Government agency notes 498 2 — 500 Municipal bonds 32,691 690 (64 ) 33,317 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 26,449 575 (18 ) 27,006 Collateralized mortgage obligations U.S. Government agencies 2,136 21 — 2,157 Non-agency 4,834 505 (7 ) 5,332 SBA bonds 3,297 53 — 3,350 CRA mutual funds 762 7 — 769 Preferred stock 20 355 — 375 Total securities available-for-sale $ 78,185 $ 2,275 $ (89 ) $ 80,371 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,515 $ — $ — $ 3,515 (in thousands) Amortized Gross un- Gross un- Fair value December 31, 2014 Available-for-sale U.S. Treasury notes $ 2,699 $ 107 $ — $ 2,806 U.S. Government agency notes 5,850 24 — 5,874 Municipal bonds 38,962 1,455 (65 ) 40,352 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 27,036 688 (15 ) 27,709 Collateralized mortgage obligations U.S. Government agencies 2,657 22 — 2,679 Non-agency 6,056 552 (12 ) 6,596 SBA bonds 4,336 129 — 4,465 CRA mutual funds 502 2 — 504 Preferred stock 20 307 — 327 Total securities available-for-sale $ 88,118 $ 3,286 $ (92 ) $ 91,312 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,515 $ — $ — $ 3,515 (1) Net of other-than-temporary impairment write-downs recognized in earnings. Salisbury sold $3.7 million in securities available-for-sale during the nine month period ended September 30, 2015, and did not sell any securities available-for-sale during the nine month period ended September 30, 2014. Realized gains on sales of securities sold in 2015 are $153,000. The following table summarizes, for all securities in an unrealized loss position, the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses September 30, 2015 Available-for-sale Municipal bonds $ 1,267 $ (64 ) $ — $ — $ 1,267 $ (64 ) Mortgage-backed securities 1,828 (18 ) — — 1,828 (18 ) Collateralized mortgage obligations: Non-agency 244 (7 ) — — 244 (7 ) Total temporarily impaired securities 3,339 (89 ) — — 3,339 (89 ) (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses December 31, 2014 Available-for-sale Municipal bonds $ 177 $ 1 $ 1,589 $ 64 $ 1,766 $ 65 Mortgage-backed securities 56 1 1,885 14 1,941 15 Collateralized mortgage obligations: Non-agency 441 7 164 5 605 12 Total temporarily impaired securities 674 9 3,638 83 4,312 92 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 September 30, 2015. U.S. Government agency mortgage-backed securities: The contractual cash flows are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be at maturity, and Salisbury does not intend to sell these securities. Therefore, management does not consider these securities to be OTTI at September 30, 2015. Municipal bonds: Contractual cash flows are performing as expected. 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 unrated 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 at maturity, and Salisbury does not intend to sell these securities. Therefore, management does not consider these securities to be OTTI at September 30, 2015. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at September 30, 2015, to assess whether any of the securities were OTTI. Salisbury uses 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 September 30, 2015. 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: Nine months ended September 30 (in thousands) 2015 2014 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 The Federal Home Loan Bank of Boston (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. 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 September 30, 2015. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
LOANS | NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: September 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 260,912 $ 8,026 $ 268,938 $ 252,258 $ 9,223 $ 261,481 Residential 5+ multifamily 6,192 6,228 12,420 5,556 8,735 14,291 Construction of residential 1-4 family 6,193 — 6,193 2,004 — 2,004 Home equity credit 33,880 — 33,880 34,627 — 34,627 Residential real estate 307,177 14,254 321,431 294,445 17,958 312,403 Commercial 110,955 91,467 202,422 98,498 97,899 196,397 Construction of commercial 12,987 4,862 17,849 18,602 9,045 27,647 Commercial real estate 123,942 96,329 220,271 117,100 106,944 224,044 Farm land 3,485 — 3,485 3,239 — 3,239 Vacant land 9,446 — 9,446 9,342 — 9,342 Real estate secured 444,050 110,583 554,633 424,126 124,902 549,028 Commercial and industrial 70,858 53,928 124,786 49,204 68,714 117,918 Municipal 6,947 — 6,947 6,083 — 6,083 Consumer 5,760 74 5,834 4,334 122 4,456 Loans receivable, gross 527,615 164,585 692,200 483,747 193,738 677,485 Deferred loan origination fees and costs, net 1,178 — 1,178 1,203 — 1,203 Allowance for loan losses (5,386 ) (273 ) (5,659 ) (5,337 ) (21 ) (5,358 ) Loans receivable, net $ 523,407 $ 164,312 $ 687,719 $ 479,613 $ 193,717 $ 673,330 Loans held-for-sale Residential 1-4 family $ 573 $ — $ 573 $ 568 $ — $ 568 Concentrations of Credit Risk Salisbury's loans consist primarily of residential and commercial real estate loans located principally in Litchfield County, Connecticut; Dutchess, Orange and Columbia Counties, New York; and Berkshire County, Massachusetts, 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. 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: Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2015 Residential 1-4 family $ 246,872 $ 7,053 $ 6,895 $ 92 $ — $ 260,912 Residential 5+ multifamily 4,180 1,048 964 — — 6,192 Construction of residential 1-4 family 6,193 — — — — 6,193 Home equity credit 32,331 469 1,080 — — 33,880 Residential real estate 289,576 8,570 8,939 92 — 307,177 Commercial 99,165 4,984 6,806 — — 110,955 Construction of commercial 12,416 — 571 — — 12,987 Commercial real estate 111,581 4,984 7,377 — — 123,942 Farm land 2,449 — 1,036 — — 3,485 Vacant land 6,446 71 2,929 — — 9,446 Real estate secured 410,052 13,625 20,281 92 — 444,050 Commercial and industrial 69,007 1,230 621 — — 70,858 Municipal 6,947 — — — — 6,947 Consumer 5,742 11 7 — — 5,760 Loans receivable, gross $ 491,748 $ 14,866 $ 20,909 $ 92 $ — $ 527,615 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2015 Residential 1-4 family $ 7,168 $ 91 $ 767 $ — $ — $ 8,026 Residential 5+ multifamily 6,228 — — — — 6,228 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 13,396 91 767 — — 14,254 Commercial 83,657 3,052 4,758 — — 91,467 Construction of commercial 4,590 — 272 — — 4,862 Commercial real estate 88,247 3,052 5,030 — — 96,329 Farm land — — — — — — Vacant land — — — — — — Real estate secured 101,643 3,143 5,797 — — 110,583 Commercial and industrial 52,051 1,192 603 82 — 53,928 Municipal — — — — — — Consumer 50 7 — 17 — 74 Loans receivable, gross $ 153,744 $ 4,342 $ 6,400 $ 99 $ — $ 164,585 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2014 Residential 1-4 family $ 232,628 $ 12,350 $ 7,187 $ 93 $ — $ 252,258 Residential 5+ multifamily 3,420 1,072 1,064 — — 5,556 Construction of residential 1-4 family 2,004 — — — — 2,004 Home equity credit 32,639 807 1,181 — — 34,627 Residential real estate 270,691 14,229 9,432 93 — 294,445 Commercial 79,975 10,728 7,795 — — 98,498 Construction of commercial 18,024 — 578 — — 18,602 Commercial real estate 97,999 10,728 8,373 — — 117,100 Farm land 772 1,361 1,106 — — 3,239 Vacant land 6,039 140 3,163 — — 9,342 Real estate secured 375,501 26,458 22,074 93 — 424,126 Commercial and industrial 44,903 3,527 774 — — 49,204 Municipal 6,083 — — — — 6,083 Consumer 4,271 53 10 — — 4,334 Loans receivable, gross $ 430,758 $ 30,038 $ 22,858 $ 93 $ — $ 483,747 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2014 Residential 1-4 family $ 8,661 $ — $ 562 $ — $ — $ 9,223 Residential 5+ multifamily 8,735 — — — — 8,735 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 17,396 — 562 — — 17,958 Commercial 89,820 3,830 3,723 526 — 97,899 Construction of commercial 9,045 — — — — 9,045 Commercial real estate 98,865 3,830 3,723 526 — 106,944 Farm land — — — — — — Vacant land — — — — — — Real estate secured 116,261 3,830 4,285 526 — 124,902 Commercial and industrial 66,098 1,675 941 — — 68,714 Municipal — — — — — — Consumer 96 7 19 — — 122 Loans receivable, gross $ 182,455 $ 5,512 $ 5,245 $ 526 $ — $ 193,738 The composition of loans receivable by delinquency status is as follows: Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over September 30, 2015 Residential 1-4 family $ 252,773 $ 3,454 $ 332 $ 426 $ 93 $ 3,834 $ 4,685 $ — $ 5,770 Residential 5+ multifamily 6,032 71 — — — 89 89 — 89 Construction of residential 1-4 family 6,193 — — — — — — — — Home equity credit 32,733 424 291 — 422 10 723 — 494 Residential real estate 297,731 3,949 623 426 515 3,933 5,497 — 6,353 Commercial 106,638 1,708 1,569 240 119 681 2,609 — 2,423 Construction of commercial 12,539 — — 448 — — 448 — — Commercial real estate 119,177 1,708 1,569 688 119 681 3,057 — 2,423 Farm land 2,762 — — — — 723 723 — 1,036 Vacant land 5,504 1,119 — — — 2,823 2,823 — 2,857 Real estate secured 425,174 6,776 2,192 1,114 634 8,160 12,100 — 12,669 Commercial and industrial 69,459 840 139 397 5 18 559 5 419 Municipal 6,947 — — — — — — — — Consumer 5,653 92 14 1 — — 15 — — Loans receivable, gross $ 507,233 $ 7,708 $ 2,345 $ 1,512 $ 639 $ 8,178 $ 12,674 $ 5 $ 13,088 Acquired Loans September 30, 2015 Residential 1-4 family $ 6,977 $ 190 $ — $ — $ 269 $ 590 $ 859 $ 91 $ 767 Residential 5+ multifamily 6,228 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity credit — — — — — — — — — Residential real estate 13,205 190 — — 269 590 859 91 767 Commercial 86,852 1,982 — 461 102 2,070 2,633 — 2,172 Construction of commercial 4,590 — — — — 272 272 — 272 Commercial real estate 91,442 1,982 — 461 102 2,342 2,905 — 2,444 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 104,647 2,172 — 461 371 2,932 3,764 91 3,211 Commercial and industrial 53,116 561 191 20 40 — 251 — 40 Municipal — — — — — — — — — Consumer 70 — 4 — — — 4 — — Loans receivable, gross $ 157,833 $ 2,733 $ 195 $ 481 $ 411 $ 2,932 $ 4,019 $ 91 $ 3,251 Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 2014 Residential 1-4 family $ 241,567 $ 7,299 $ 1,250 $ 555 $ 976 $ 611 $ 3,392 $ — $ 2,445 Residential 5+ multifamily 5,467 — — — 89 — 89 — 89 Construction of residential 1-4 family 2,004 — — — — — — — — Home equity credit 33,488 387 122 528 39 63 752 — 348 Residential real estate 282,526 7,686 1,372 1,083 1,104 674 4,233 — 2,882 Commercial 94,598 2,079 602 — — 1,219 1,821 — 1,219 Construction of commercial 18,602 — — — — — — — — Commercial real estate 113,200 2,079 602 — — 1,219 1,821 — 1,219 Farm land 2,119 — 13 723 — 384 1,120 — 384 Vacant land 6,422 51 7 — 39 2,823 2,869 — 2,862 Real estate secured 404,267 9,816 1,994 1,806 1,143 5,100 10,043 — 7,347 Commercial and industrial 48,478 582 91 17 36 — 144 17 33 Municipal 6,083 — — — — — — — — Consumer 4,274 47 8 5 — — 13 — — Loans receivable, gross $ 463,102 $ 10,445 $ 2,093 $ 1,828 $ 1,179 $ 5,100 $ 10,200 $ 17 $ 7,380 Acquired Loans December 31, 2014 Residential 1-4 family $ 8,661 $ — $ — $ — $ — $ 562 $ 562 $ — $ 562 Residential 5+ multifamily 8,735 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity credit — — — — — — — — — Residential real estate 17,396 — — — — 562 562 — 562 Commercial 95,695 1,109 167 — 285 643 1,095 — 1,931 Construction of commercial 9,045 — — — — — — — — Commercial real estate 104,740 1,109 167 — 285 643 1,095 — 1,931 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 122,136 1,109 167 — 285 1,205 1,657 — 2,493 Commercial and industrial 67,665 740 89 220 — — 309 — — Municipal — — — — — — — — — Consumer 117 5 — — — — — — — Loans receivable, gross $ 189,918 $ 1,854 $ 256 $ 220 $ 285 $ 1,205 $ 1,966 $ — $ 2,493 Interest on impaired loans that would have been recorded as additional interest income for the nine months ended September 30, 2015 and 2014 had the loans been current in accordance with their original terms totaled $609,000 and $410,000, respectively, disregarding the impact of purchased accounting on these loans. Troubled Debt Restructurings Troubled debt restructurings occurring during the periods are as follows: Business Activities Loans Nine months ended September 30, 2015 September 30, 2014 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 2 $ 923 $ 923 2 $ 237 $ 237 Commercial real estate 2 478 478 3 846 846 Construction of commercial — — — 1 131 131 Home equity credit 1 35 35 2 72 72 Troubled debt restructurings 5 $ 1,436 $ 1,436 8 $ 1,286 $ 1,286 Rate reduction and term extension 2 $ 478 $ 478 — — — Interest only and term extension — — — 1 48 48 Term extension and amortization — — — 2 338 338 Interest only — — — 2 54 54 Debt consolidation, rate reduction, term extension — — — 1 399 399 Debt consolidation and term extension — — — 2 447 447 Note bifurcation 1 48 48 — — — Term extension 2 910 910 — — — Troubled debt restructurings 5 $ 1,436 $ 1,436 8 $ 1,286 $ 1,286 Five loans were modified in troubled debt restructurings during 2015, one of which was past due at September 30, 2015. There was one acquired loan modified in a troubled debt restructuring during the nine months ended September 30, 2015. As of September 30, 2015, the Bank had $4.3 million in loans collateralized by residential real estate property in the process of foreclosure. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2015 Three months ended September 30, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,147 $ 632 $ (92 ) $ 111 $ 2,798 $ 15 $ 55 $ — $ — $ 70 Commercial 1,339 (102 ) (10 ) — 1,227 77 81 — 5 163 Land 182 168 (72 ) — 278 — — — — — Real estate 3,668 698 (174 ) 111 4,303 92 136 — 5 233 Commercial and industrial 691 (197 ) — 4 498 52 (22 ) — 10 40 Municipal 64 (16 ) — — 48 — — — — — Consumer 123 1 (17 ) 6 113 — — — — — Unallocated 369 55 — — 424 — — — — — Totals $ 4,915 $ 541 $ (191 ) $ 121 $ 5,386 $ 144 $ 114 $ — $ 15 $ 273 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2015 Nine months ended September 30, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,306 $ 952 $ (573 ) $ 113 $ 2,798 $ — $ 70 $ — $ — $ 70 Commercial 1,697 (256 ) (214 ) — 1,227 7 151 — 5 163 Land 164 186 (72 ) — 278 — — — — — Real estate 4,167 882 (859 ) 113 4,303 7 221 — 5 233 Commercial and industrial 583 (484 ) (56 ) 455 498 14 — — 26 40 Municipal 61 (13 ) — — 48 — — — — — Consumer 117 30 (47 ) 13 113 — — — — — Unallocated 409 15 — — 424 — — — — — Totals $ 5,337 $ 430 $ (962 ) $ 581 $ 5,386 $ 21 $ 221 $ — $ 31 $ 273 (in thousands) Three months ended September 30, 2014 Nine months ended September 30, 2014 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 1,974 $ 357 $ (46 ) $ 16 $ 2,301 $ 1,938 $ 494 $ (149 ) $ 18 $ 2,301 Commercial 1,622 89 — — 1,711 1,385 378 (52 ) — 1,711 Land 184 (17 ) (6 ) — 161 226 33 (98 ) — 161 Real estate 3,780 429 (52 ) 16 4,173 3,549 905 (299 ) 18 4,173 Commercial and industrial 584 (68 ) — 1 517 561 (57 ) (1 ) 14 517 Municipal 44 18 — — 62 43 19 — — 62 Consumer 49 11 (3 ) 2 59 105 (46 ) (18 ) 18 59 Unallocated 645 (72 ) — — 573 425 148 — — 573 Totals $ 5,102 $ 318 $ (55 ) $ 19 $ 5,384 $ 4,683 $ 969 $ (318 ) $ 50 $ 5,384 The composition of loans receivable and the allowance for loan losses is as follows: Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance September 30, 2015 Residential 1-4 family $ 252,454 $ 1,603 $ 8,458 $ 724 $ 260,912 $ 2,327 Residential 5+ multifamily 4,315 37 1,877 — 6,192 37 Construction of residential 1-4 family 6,193 52 — — 6,193 52 Home equity credit 33,230 345 650 37 33,880 382 Residential real estate 296,192 2,037 10,985 761 307,177 2,798 Commercial 106,573 937 4,382 170 110,955 1,107 Construction of commercial 12,864 120 123 — 12,987 120 Commercial real estate 119,437 1,057 4,505 170 123,942 1,227 Farm land 2,449 19 1,036 1 3,485 20 Vacant land 6,364 234 3,082 24 9,446 258 Real estate secured 424,442 3,347 19,608 956 444,050 4,303 Commercial and industrial 70,372 494 486 4 70,858 498 Municipal 6,947 48 — — 6,947 48 Consumer 5,760 113 — — 5,760 113 Unallocated allowance — 424 — — — 424 Totals $ 507,521 $ 4,426 $ 20,094 $ 960 $ 527,615 $ 5,386 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance September 30, 2015 Residential 1-4 family $ 7,259 $ — $ 767 $ 70 $ — $ — $ 8,026 $ 70 Residential 5+ multifamily 6,228 — — — — — 6,228 — Construction of residential 1-4 family — — — — — — — — Home equity credit — — — — — — — — Residential real estate 13,487 — 767 70 — — 14,254 70 Commercial 83,257 13 2,920 145 5,290 2 91,467 160 Construction of commercial 4,590 3 272 — — — 4,862 3 Commercial real estate 87,847 16 3,192 145 5,290 2 96,329 163 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 101,334 16 3,959 215 5,290 2 110,583 233 Commercial and industrial 52,587 40 40 — 1,301 — 53,928 40 Municipal — — — — — — — — Consumer 57 — — — 17 — 74 — Unallocated allowance — — — — — — — — Totals $ 153,978 $ 56 $ 3,999 $ 215 $ 6,608 $ 2 $ 164,585 $ 273 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2014 Residential 1-4 family $ 245,997 $ 1,316 $ 6,261 $ 549 $ 252,258 $ 1,865 Residential 5+ multifamily 4,536 66 1,020 3 5,556 69 Construction of residential 1-4 family 2,004 13 — — 2,004 13 Home equity credit 34,231 350 396 9 34,627 359 Residential real estate 286,768 1,745 7,677 561 294,445 2,306 Commercial 93,784 1,018 4,714 486 98,498 1,504 Construction of commercial 18,474 193 128 — 18,602 193 Commercial real estate 112,258 1,211 4,842 486 117,100 1,697 Farm land 2,855 59 384 — 3,239 59 Vacant land 6,245 67 3,097 38 9,342 105 Real estate secured 408,126 3,082 16,000 1,085 424,126 4,167 Commercial and industrial 48,635 532 569 51 49,204 583 Municipal 6,083 61 — — 6,083 61 Consumer 4,334 117 — — 4,334 117 Unallocated allowance — 409 — — — 409 Totals $ 467,178 $ 4,201 $ 16,569 $ 1,136 $ 483,747 $ 5,337 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2014 Residential 1-4 family $ 8,661 $ — $ 562 $ — $ — $ — $ 9,223 $ — Residential 5+ multifamily 8,735 — — — — — 8,735 — Construction of residential 1-4 family — — — — — — — — Home equity credit — — — — — — — — Residential real estate 17,396 — 562 — — — 17,958 — Commercial 89,820 — 2,502 — 5,577 — 97,899 — Construction of commercial 9,045 7 — — — — 9,045 7 Commercial real estate 98,865 7 2,502 — 5,577 — 106,944 7 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 116,261 7 3,064 — 5,577 — 124,902 7 Commercial and industrial 66,874 14 — — 1,840 — 68,714 14 Municipal — — — — — — — — Consumer 103 — — — 19 — 122 — Unallocated allowance — — — — — — — — Totals $ 183,238 $ 21 $ 3,064 $ — $ 7,436 $ — $ 193,738 $ 21 The credit quality segments of loans receivable and the allowance for loan losses are as follows: Business Activities Loans September 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 503,052 $ 3,935 $ — $ — $ 503,052 $ 3,935 Potential problem loans 4,469 67 — — 4,469 67 Impaired loans — — 20,094 960 20,094 960 Unallocated allowance — 424 — — — 424 Totals $ 507,521 $ 4,426 $ 20,094 $ 960 $ 527,615 $ 5,386 Acquired Loans September 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 158,144 $ 56 $ — $ — $ 158,144 $ 56 Potential problem loans 2,442 2 — — 2,442 2 Impaired loans — — 3,999 215 3,999 215 Unallocated allowance — — — — — — Totals $ 160,586 $ 58 $ 3,999 $ 215 $ 164,585 $ 273 Business Activities Loans December 31, 2014 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 457,744 $ 3,283 $ — $ — $ 457,744 $ 3,283 Potential problem loans 9,423 509 11 — 9,434 509 Impaired loans — — 16,569 1,136 16,569 1,136 Unallocated allowance — 409 — — — 409 Totals $ 467,167 $ 4,201 $ 16,580 $ 1,136 $ 483,747 $ 5,337 Acquired Loans December 31, 2014 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 187,966 $ 21 $ — $ — $ 187,966 $ 21 Potential problem loans 2,708 — — — 2,708 — Impaired loans — — 3,064 — 3,064 — Unallocated allowance — — — — — — Totals $ 190,674 $ 21 $ 3,064 $ — $ 193,738 $ 21 A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the present value of expected cash flows or collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment is as follows: Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2015 Residential 1-4 family $ 7,170 $ 7,703 $ 6,213 $ 724 $ 109 $ 3,165 $ 3,314 $ 3,043 $ 82 Home equity credit 543 557 176 37 6 107 122 611 2 Residential real estate 7,713 8,260 6,389 761 115 3,272 3,436 3,654 84 Commercial 3,864 4,309 2,629 170 113 518 548 2,130 12 Construction of commercial — — — — — 123 129 127 6 Farm land 11 13 445 1 — 1,025 1,100 270 15 Vacant land 2,870 3,789 3,058 24 2 212 244 5 7 Real estate secured 14,458 16,371 12,521 956 230 5,150 5,457 6,186 124 Commercial and industrial 247 255 120 4 8 239 272 464 7 Consumer — — — — — — — — — Totals $ 14,705 $ 16,626 $ 12,641 $ 960 $ 238 $ 5,389 $ 5,729 $ 6,650 $ 131 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2015 Residential 1-4 family $ 590 $ 716 $ 176 $ 70 $ — $ 177 $ 177 $ 436 $ 4 Home equity credit — — — — — — — — — Residential real estate 590 716 176 70 — 177 177 436 4 Commercial 2,146 2,897 557 145 61 774 1,091 2,097 10 Construction of commercial — — — — — 272 278 138 16 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 2,736 3,613 733 215 61 1,223 1,546 2,671 30 Commercial and industrial 40 70 4 — 1 — — — — Consumer — — — — — — — — — Totals $ 2,776 $ 3,683 $ 737 $ 215 $ 62 $ 1,223 $ 1,546 $ 2,671 $ 30 Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2014 Residential 1-4 family $ 5,008 $ 5,157 $ 4,547 $ 552 $ 128 $ 2,273 $ 2,395 $ 2,703 $ 57 Home equity credit 9 24 91 9 — 387 405 441 4 Residential real estate 5,017 5,181 4,638 561 128 2,660 2,800 3,144 61 Commercial 3,383 3,563 3,262 486 108 1,331 1,520 1,468 54 Construction of commercial — — — — — 128 134 123 — Farm land — — — — — 384 384 384 — Vacant land 3,097 3,996 3,090 38 12 — — — — Real estate secured 11,497 12,740 10,990 1,085 248 4,503 4,838 5,119 115 Commercial and industrial 102 161 106 51 2 467 469 516 30 Consumer — — — — — — — 19 — Totals $ 11,599 $ 12,901 $ 11,096 $ 1,136 $ 250 $ 4,970 $ 5,307 $ 5,654 $ 145 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2014 Residential 1-4 family $ — $ — $ — $ — $ — $ 562 $ 716 $ 562 $ 3 Home equity credit — — — — — — — — — Residential real estate — — — — — 562 716 562 3 Commercial — — — — — 2,502 4,014 2,502 12 Construction of commercial — — — — — — — — — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured — — — — — 3,064 4,730 3,064 15 Commercial and industrial — — — — — — 4 — — Consumer — — — — — — — — — Totals $ — $ — $ — $ — $ — $ 3,064 $ 4,734 $ 3,064 $ 15 Acquired Loans Loans that Salisbury acquired through business combinations are initially recorded at fair value with no carryover of the related allowance for credit losses. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows initially expected to be collected on the loans and discounting those cash flows at an appropriate market rate of interest. For loans that meet the criteria stipulated in ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” Salisbury recognizes the accretable yield, which is defined as the excess of all cash flows expected to be collected at acquisition over the initial fair value of the loan, as interest income on a level-yield basis over the expected remaining life of the loan. The excess of the loan’s contractually required payments over the cash flows expected to be collected is the nonaccretable difference. The nonaccretable difference is not recognized as an adjustment of yield, a loss accrual, or a valuation allowance. Going forward, Salisbury continues to evaluate whether the timing and the amount of cash to be collected are reasonably expected. Subsequent significant increases in cash flows Salisbury expects to collect will first reduce any previously recognized valuation allowance and then be reflected prospectively as an increase to the level yield. Subsequent decreases in expected cash flows may result in the loan being considered impaired. Interest income is not recognized to the extent that the net investment in the loan would increase to an amount greater than the estimated payoff amount. For ASC 310-30 loans, the expected cash flows reflect anticipated prepayments, determined on a loan by loan basis according to the anticipated collection plan of these loans. The expected prepayments used to determine the accretable yield are consistent between the cash flows expected to be collected and projections of contractual cash flows so as to not affect the nonaccretable difference. For ASC 310-30 loans, prepayments result in the recognition of the nonaccretable balance as current period yield. Changes in prepayment assumptions may change the amount of interest income and principal expected to be collected. The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under ASC-310-30: Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Balance at beginning of period $ 1,604 $ — $ 1,242 $ — Acquisitions — — — — Sales — — — — Reclassification from nonaccretable difference for loans with improved cash flows 379 — 1,157 — Change in cash flows that do not affect nonaccretable difference — — — — Accretion (297 ) — (713 ) — Balance at end of period $ 1,686 $ — $ 1,686 $ — For loans that do not meet the ASC 310-30 criteria, Salisbury accretes interest income on a level yield basis using the contractually required cash flows. Salisbury subjects loans that do not meet the ASC 310-30 criteria to ASC Topic 450, “Contingencies” by collectively evaluating these loans for an allowance for loan losses. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if Salisbury can reasonably estimate the timing and amount of the expected cash flows on such loans and if Salisbury expects to fully collect the new carrying value of the loans. As such, Salisbury may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield. |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE SERVICING RIGHTS | NOTE 4 - MORTGAGE SERVICING RIGHTS (in thousands) September 30, 2015 December 31, 2014 Residential mortgage loans serviced for others $ 132,201 $ 138,106 Fair value of mortgage servicing rights 1,429 1,568 Changes in mortgage servicing rights are as follows: Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Mortgage Servicing Rights Balance, beginning of period $ 599 $ 838 $ 694 $ 980 Originated 22 (17 ) 124 5 Amortization (1) (85 ) (56 ) (282 ) (220 ) Balance, end of period 536 765 536 765 Valuation Allowance Balance, beginning of period (2 ) (1 ) 1 (15 ) Decrease (increase) in impairment reserve (1) 1 1 (2 ) 15 Balance, end of period (1 ) — (1 ) — Loan servicing rights, net $ 535 $ 765 $ 535 $ 765 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
PLEDGED ASSETS
PLEDGED ASSETS | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
PLEDGED ASSETS | NOTE 5 - PLEDGED ASSETS (in thousands) September 30, 2015 December 31, 2014 Securities available-for-sale (at fair value) $ 68,569 $ 69,055 Loans receivable 159,436 157,581 Total pledged assets $ 228,005 $ 226,636 At September 30, 2015, securities were pledged as follows: $60.4 million to secure public deposits, $8.1 million to secure repurchase agreements and $0.1 million to secure FHLBB advances. In addition to securities, loans receivable were pledged to secure FHLBB advances and credit facilities. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 6 – EARNINGS PER SHARE Salisbury defines unvested share-based payment awards that contain non-forfeitable 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. 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: Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Net income $ 1,985 $ 768 $ 6,290 $ 2,285 Less: Preferred stock dividends declared (40 ) (40 ) (120 ) (126 ) Net income available to common shareholders 1,945 728 6,170 2,159 Less: Undistributed earnings allocated to participating securities (17 ) (8 ) (54 ) (26 ) Net income allocated to common stock $ 1,928 $ 720 $ 6,116 $ 2,133 Common shares issued 2,731 1,713 2,728 1,713 Less: Unvested restricted stock awards (24 ) (20 ) (24 ) (21 ) Common shares outstanding used to calculate basic earnings per common share 2,707 1,693 2,704 1,692 Add: Dilutive effect of stock options 17 — 17 — Common shares outstanding used to calculate diluted earnings per common share 2,724 1,693 2,721 1,692 Earnings per common share (basic) $ 0.71 $ 0.43 $ 2.26 $ 1.26 Earnings per common share (diluted) $ 0.71 $ 0.43 $ 2.25 $ 1.26 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2015 | |
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’s 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’s 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, Common Equity Tier 1 and Tier 1 capital (as defined) to risk-weighted assets (as defined). Management believes, as of September 30, 2015, that Salisbury and the Bank meet all of the capital adequacy requirements to which they are subject. In July 2013, the Federal Reserve Bank (FRB) approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for bank holding companies and their bank subsidiaries. On July 9, 2013, the FDIC also approved, as an interim final rule, the regulatory capital requirements for U.S. banks, following the actions of the FRB. On April 8, 2014, the FDIC adopted as final its interim final rule, which is identical in substance to the final rules issued by the FRB in July 2013. Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by the Bank and Company. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A new capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer will be phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increases each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. The phase-in period for the final rules began for Salisbury and the Bank on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule and should be fully phased-in by January 1, 2019. 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: To be Well Capitalized Actual For Capital Adequacy Purposes Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2015 Total Capital (to risk-weighted assets) Salisbury $ 96,366 13.90 % $ 55,481 8.0 % n/a — Bank 87,507 12.62 55,481 8.0 $ 69,352 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 90,458 13.04 41,611 6.0 n/a — Bank 81,599 11.77 41,611 6.0 55,481 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 74,458 10.74 39,473 4.5 n/a — Bank 81,599 11.77 39,473 4.5 57,017 6.5 Tier 1 Capital (to average assets) Salisbury 90,458 10.31 35,088 4.0 n/a — Bank 81,599 9.30 35,088 4.0 43,859 5.0 December 31, 2014 Total Capital (to risk-weighted assets) Salisbury $ 89,783 14.27 % $ 50,334 8.0 % n/a — Bank 80,492 12.75 50,492 8.0 $ 63,116 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 84,171 13.38 25,167 4.0 n/a — Bank 74,881 11.86 25,246 4.0 37,869 6.0 Tier 1 Capital (to average assets) Salisbury 84,171 12.31 27,344 4.0 n/a — Bank 74,881 10.95 27,345 4.0 34,181 5.0 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 30, 2009, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the Federal Reserve and should eliminate, defer, or significantly reduce dividends if (1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (2) the prospective rate of earnings retention is not consistent with capital needs and overall current and prospective financial condition; or (3) the BHC will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. Moreover, a BHC should inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the BHC capital structure. Preferred Stock In August 2011, Salisbury issued to the U.S. Secretary of the Treasury (the “Treasury”) $16 million of its Series B Preferred Stock under the Small Business Lending Fund (the “SBLF”) program. The SBLF program is a $30 billion fund established under the Small Business Jobs Act of 2010 to encourage lending to small businesses by providing Tier 1 capital to qualified community banks with assets of less than $10 billion. The Preferred Stock qualifies as Tier 1 capital for regulatory purposes and ranks senior to the Common Stock. 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, was 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 September 30, 2015 was 1.0%. For the eleventh quarterly dividend payment through four and one-half years after its issuance, the dividend rate on the Series B Preferred Stock will be 1.0%. Commencing with the second quarter of 2016, after four and one-half years from its issuance, the dividend rate will be fixed at 9.0% per annum. The Series B Preferred Stock is non-voting, other than voting rights on matters that could adversely affect the Series B Preferred Stock. The Series B Preferred Stock is redeemable at any time at one hundred percent of the issue price plus any accrued and unpaid dividends. |
PENSIONS AND OTHER BENEFITS
PENSIONS AND OTHER BENEFITS | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
PENSIONS AND OTHER BENEFITS | NOTE 8 – PENSION AND OTHER BENEFITS Salisbury had an insured noncontributory defined benefit retirement plan which was available to employees prior to December 31, 2012 based upon age and length of service. During 2012, Salisbury decided to complete its transition from providing retirement benefits under a defined benefit pension plan to a defined contribution 401(k) plan. Effective December 31, 2012, the pension plan was frozen, by amending the defined benefit pension plan to freeze retirement benefits at current levels and discontinue future benefit accruals. The plan was terminated effective October 15, 2014. The components of net periodic cost for Salisbury’s insured noncontributory defined benefit retirement plan were as follows: Three months ended Nine months ended Periods ended September 30, (in thousands) 2014 2014 Interest cost on benefit obligation $ 69 $ 207 Expected return on plan assets (74 ) (222 ) Net periodic benefit cost $ (5 ) $ (15 ) Salisbury’s 401(k) Plan expense was $166,000 and $159,000, respectively, for the three month periods ended September 30, 2015 and 2014, and $516,000 and $495,000, respectively, for the nine month periods ended September 30, 2015 and 2014. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $14,000 and $13,000 respectively, for the three month periods ended September 30, 2015 and 2014, and $53,000 and $40,000, respectively, for the nine month periods ended September 30, 2015 and 2014. 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, which vests in full upon six years of qualified service. Salisbury’s ESOP expense was $96,000 and $47,000, respectively, for the three month periods ended September 30, 2015 and 2014, and $287,000 and $141,000, respectively, for the nine month periods ended September 30, 2015 and 2014. Other Retirement Plans A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted 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 2014 and 2013, the Bank awarded seven (7) and six (6) Executives, respectively, with discretionary contributions to the Plan. Expenses related to this plan amounted to $34,000 and $15,000, respectively, for the three month periods ended September 30, 2015 and 2014, and $95,000 and $44,000 for the nine months ended September 30, 2015 and 2014, respectively. Based on the Executive’s date of retirement, the vesting schedule ranges from 7.7% per year to 50% per year. There have been no awards granted in 2015. Restricted Stock and Options On September 28, 2015, 2,700 shares of stock options were exercised at $21.48 per share by one former Riverside Bank executive. On February 17, 2015 and February 25, 2015, 1,350 and 5,400 shares of stock options were exercised, respectively, at $18.52 per share by two former Riverside Bank executives. On December 5, 2014, Salisbury granted a total of 6,000 shares of restricted stock pursuant to its 2011 Long Term Incentive Plan to three (3) employees, including 1,000 shares to Richard J. Cantele, Jr., President and Chief Executive Officer, 3,000 shares to John Davies, New York Regional President and Chief Lending Officer, and 2,000 shares to Todd Rubino, Senior Vice President and Senior Commercial Loan Officer. Of these 6,000 shares, 2,250 immediately vested and the remaining 3,750 shares vest over a period of 36 months. 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) employees, including 2,000 shares to Donald E. White, Chief Financial Officer, and 1,000 shares to Richard P. Kelly, Executive Vice President and Chief Credit Officer. The stock will be vested three years from the grant date. Expense was $52,000 and $43,000, respectively, for the three month periods ended September 30, 2015 and 2014, and $167,000 and $112,000, respectively, for the nine month periods ended September 30, 2015 and 2014. Unrecognized compensation cost relating to the awards as of September 30, 2015 and 2014 totaled $186,000 and $254,000, respectively. A total of 300 shares were forfeited in the nine months ended September 30, 2015, and 2,000 shares were forfeited in the nine months ended September 30, 2014. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 9 –ACCUMULATED OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive income are as follows: (in thousands) September 30, 2015 December 31, 2014 Unrealized gains on securities available-for-sale, net of tax $ 1,443 $ 2,108 Accumulated other comprehensive income, net $ 1,443 $ 2,108 |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2015 | |
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 Measurement-Overall,” 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 nine months ended September 30, 2015. 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 preferred stock. 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, as appropriate. 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 September 30, 2015 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 7,565 $ — $ 7,565 U.S. Government agency notes — 500 — 500 Municipal bonds — 33,317 — 33,317 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 27,006 — 27,006 Collateralized mortgage obligations: U.S. Government agencies — 2,157 — 2,157 Non-agency — 5,332 — 5,332 SBA bonds — 3,350 — 3,350 CRA mutual funds — 769 — 769 Preferred stock 375 — — 375 Securities available-for-sale $ 375 $ 79,996 $ — $ 80,371 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 16,305 16,305 Other real estate owned — — 167 167 December 31, 2014 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 2,806 $ — $ 2,806 U.S. Government agency notes — 5,874 — 5,874 Municipal bonds — 40,352 — 40,352 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 27,709 — 27,709 Collateralized mortgage obligations: U.S. Government agencies — 2,679 — 2,679 Non-agency — 6,596 — 6,596 SBA bonds — 4,465 — 4,465 CRA mutual funds — 504 — 504 Preferred stock 327 — — 327 Securities available-for-sale $ 327 $ 90,985 $ — $ 91,312 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 10,463 $ 10,463 Other real estate owned — — 1,002 1,002 Carrying values and estimated fair values of financial instruments are as follows: (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 September 30, 2015 Financial Assets Cash and cash equivalents $ 81,695 $ 81,695 $ 81,695 $ — $ — Securities available-for-sale 80,371 80,371 375 79,996 — Federal Home Loan Bank stock 3,515 3,515 — 3,515 — Loans held-for-sale 573 584 — — 584 Loans receivable, net 687,719 695,147 — — 695,147 Accrued interest receivable 2,296 2,296 — — 2,296 Cash surrender value of life insurance 13,591 13,591 13,591 — — Financial Liabilities Demand (non-interest-bearing) $ 194,618 $ 194,618 $ — $ — $ 194,618 Demand (interest-bearing) 129,779 129,779 — — 129,779 Money market 184,409 184,409 — — 184,409 Savings and other 123,017 123,017 — — 123,017 Certificates of deposit 129,656 130,765 — — 130,765 Deposits 761,479 762,588 — — 762,588 Repurchase agreements 4,210 4,210 — — 4,210 FHLBB advances 26,928 28,988 — — 28,988 Note payable 380 409 — — 409 Capital lease liability 422 898 — — 898 Accrued interest payable 121 121 — — 121 December 31, 2014 Financial Assets Cash and cash equivalents $ 36,105 $ 36,105 $ 36,105 $ — $ — Securities available-for-sale 91,312 91,312 327 90,985 — Federal Home Loan Bank stock 3,515 3,515 — 3,515 — Loans held-for-sale 568 572 — — 572 Loans receivable, net 673,330 683,845 — — 683,845 Accrued interest receivable 2,334 2,334 — — 2,334 Cash surrender value of life insurance 13,314 13,314 13,314 — — Financial Liabilities Demand (non-interest-bearing) $ 161,386 $ 161,386 $ — $ — $ 161,386 Demand (interest-bearing) 117,169 117,169 — — 117,169 Money market 174,274 174,274 — — 174,274 Savings and other 121,387 121,387 — — 121,387 Certificates of deposit 141,210 142,261 — — 142,261 Deposits 715,426 716,477 — — 716,477 Repurchase agreements 4,163 4,163 — — 4,163 FHLBB advances 28,813 30,626 — — 30,626 Capital lease liability 424 929 — — 929 Accrued interest payable 166 166 — — 166 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) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Impact of New Accounting Pronouncements Issued | Impact of New Accounting Pronouncements Issued In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The objective of this ASU is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in July 2015, the FASB voted to approve deferring the effective date by one year (i.e. interim and annual reporting periods beginning after December 15, 2017). Early adoption is permitted, but not before the original effective date (i.e. interim and annual reporting periods beginning after December 15, 2016). Salisbury is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The guidance should be applied on a retrospective basis. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-07: “Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” The objective of this update is to address the diversity in practice related to how certain investments measured at net asset value with redemption dates in the future are categorized within the fair value hierarchy. The amendments in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16: “Simplifying the Accounting for Measurement-Period Adjustments.” Under the ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of changes in depreciation or amortization, or other income effects (if any) as a result of the change to the provisional amounts, calculated as if the accounting had been completed as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined rather than retrospectively. The ASU also requires that the acquirer present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been issued. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Composition of Securities | (in thousands) Amortized Gross un- Gross un- Fair value September 30, 2015 Available-for-sale U.S. Treasury notes $ 7,498 $ 67 $ — $ 7,565 U.S. Government agency notes 498 2 — 500 Municipal bonds 32,691 690 (64 ) 33,317 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 26,449 575 (18 ) 27,006 Collateralized mortgage obligations U.S. Government agencies 2,136 21 — 2,157 Non-agency 4,834 505 (7 ) 5,332 SBA bonds 3,297 53 — 3,350 CRA mutual funds 762 7 — 769 Preferred stock 20 355 — 375 Total securities available-for-sale $ 78,185 $ 2,275 $ (89 ) $ 80,371 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,515 $ — $ — $ 3,515 (in thousands) Amortized Gross un- Gross un- Fair value December 31, 2014 Available-for-sale U.S. Treasury notes $ 2,699 $ 107 $ — $ 2,806 U.S. Government agency notes 5,850 24 — 5,874 Municipal bonds 38,962 1,455 (65 ) 40,352 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 27,036 688 (15 ) 27,709 Collateralized mortgage obligations U.S. Government agencies 2,657 22 — 2,679 Non-agency 6,056 552 (12 ) 6,596 SBA bonds 4,336 129 — 4,465 CRA mutual funds 502 2 — 504 Preferred stock 20 307 — 327 Total securities available-for-sale $ 88,118 $ 3,286 $ (92 ) $ 91,312 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,515 $ — $ — $ 3,515 (1) Net of other-than-temporary impairment write-downs recognized in earnings. |
Aggreggate fair value and gross unrealized loss of securities | (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses September 30, 2015 Available-for-sale Municipal bonds $ 1,267 $ (64 ) $ — $ — $ 1,267 $ (64 ) Mortgage-backed securities 1,828 (18 ) — — 1,828 (18 ) Collateralized mortgage obligations: Non-agency 244 (7 ) — — 244 (7 ) Total temporarily impaired securities 3,339 (89 ) — — 3,339 (89 ) (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses December 31, 2014 Available-for-sale Municipal bonds $ 177 $ 1 $ 1,589 $ 64 $ 1,766 $ 65 Mortgage-backed securities 56 1 1,885 14 1,941 15 Collateralized mortgage obligations: Non-agency 441 7 164 5 605 12 Total temporarily impaired securities 674 9 3,638 83 4,312 92 |
Activity related to credit losses recognized into earnings | Nine months ended September 30 (in thousands) 2015 2014 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) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Composition of loans receivable and loans held-for-sale | September 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 260,912 $ 8,026 $ 268,938 $ 252,258 $ 9,223 $ 261,481 Residential 5+ multifamily 6,192 6,228 12,420 5,556 8,735 14,291 Construction of residential 1-4 family 6,193 — 6,193 2,004 — 2,004 Home equity credit 33,880 — 33,880 34,627 — 34,627 Residential real estate 307,177 14,254 321,431 294,445 17,958 312,403 Commercial 110,955 91,467 202,422 98,498 97,899 196,397 Construction of commercial 12,987 4,862 17,849 18,602 9,045 27,647 Commercial real estate 123,942 96,329 220,271 117,100 106,944 224,044 Farm land 3,485 — 3,485 3,239 — 3,239 Vacant land 9,446 — 9,446 9,342 — 9,342 Real estate secured 444,050 110,583 554,633 424,126 124,902 549,028 Commercial and industrial 70,858 53,928 124,786 49,204 68,714 117,918 Municipal 6,947 — 6,947 6,083 — 6,083 Consumer 5,760 74 5,834 4,334 122 4,456 Loans receivable, gross 527,615 164,585 692,200 483,747 193,738 677,485 Deferred loan origination fees and costs, net 1,178 — 1,178 1,203 — 1,203 Allowance for loan losses (5,386 ) (273 ) (5,659 ) (5,337 ) (21 ) (5,358 ) Loans receivable, net $ 523,407 $ 164,312 $ 687,719 $ 479,613 $ 193,717 $ 673,330 Loans held-for-sale Residential 1-4 family $ 573 $ — $ 573 $ 568 $ — $ 568 |
Composition of loans receivable by risk rating grade | Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2015 Residential 1-4 family $ 246,872 $ 7,053 $ 6,895 $ 92 $ — $ 260,912 Residential 5+ multifamily 4,180 1,048 964 — — 6,192 Construction of residential 1-4 family 6,193 — — — — 6,193 Home equity credit 32,331 469 1,080 — — 33,880 Residential real estate 289,576 8,570 8,939 92 — 307,177 Commercial 99,165 4,984 6,806 — — 110,955 Construction of commercial 12,416 — 571 — — 12,987 Commercial real estate 111,581 4,984 7,377 — — 123,942 Farm land 2,449 — 1,036 — — 3,485 Vacant land 6,446 71 2,929 — — 9,446 Real estate secured 410,052 13,625 20,281 92 — 444,050 Commercial and industrial 69,007 1,230 621 — — 70,858 Municipal 6,947 — — — — 6,947 Consumer 5,742 11 7 — — 5,760 Loans receivable, gross $ 491,748 $ 14,866 $ 20,909 $ 92 $ — $ 527,615 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2015 Residential 1-4 family $ 7,168 $ 91 $ 767 $ — $ — $ 8,026 Residential 5+ multifamily 6,228 — — — — 6,228 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 13,396 91 767 — — 14,254 Commercial 83,657 3,052 4,758 — — 91,467 Construction of commercial 4,590 — 272 — — 4,862 Commercial real estate 88,247 3,052 5,030 — — 96,329 Farm land — — — — — — Vacant land — — — — — — Real estate secured 101,643 3,143 5,797 — — 110,583 Commercial and industrial 52,051 1,192 603 82 — 53,928 Municipal — — — — — — Consumer 50 7 — 17 — 74 Loans receivable, gross $ 153,744 $ 4,342 $ 6,400 $ 99 $ — $ 164,585 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2014 Residential 1-4 family $ 232,628 $ 12,350 $ 7,187 $ 93 $ — $ 252,258 Residential 5+ multifamily 3,420 1,072 1,064 — — 5,556 Construction of residential 1-4 family 2,004 — — — — 2,004 Home equity credit 32,639 807 1,181 — — 34,627 Residential real estate 270,691 14,229 9,432 93 — 294,445 Commercial 79,975 10,728 7,795 — — 98,498 Construction of commercial 18,024 — 578 — — 18,602 Commercial real estate 97,999 10,728 8,373 — — 117,100 Farm land 772 1,361 1,106 — — 3,239 Vacant land 6,039 140 3,163 — — 9,342 Real estate secured 375,501 26,458 22,074 93 — 424,126 Commercial and industrial 44,903 3,527 774 — — 49,204 Municipal 6,083 — — — — 6,083 Consumer 4,271 53 10 — — 4,334 Loans receivable, gross $ 430,758 $ 30,038 $ 22,858 $ 93 $ — $ 483,747 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2014 Residential 1-4 family $ 8,661 $ — $ 562 $ — $ — $ 9,223 Residential 5+ multifamily 8,735 — — — — 8,735 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 17,396 — 562 — — 17,958 Commercial 89,820 3,830 3,723 526 — 97,899 Construction of commercial 9,045 — — — — 9,045 Commercial real estate 98,865 3,830 3,723 526 — 106,944 Farm land — — — — — — Vacant land — — — — — — Real estate secured 116,261 3,830 4,285 526 — 124,902 Commercial and industrial 66,098 1,675 941 — — 68,714 Municipal — — — — — — Consumer 96 7 19 — — 122 Loans receivable, gross $ 182,455 $ 5,512 $ 5,245 $ 526 $ — $ 193,738 |
Composition of loans receivable by delinquency status | Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over September 30, 2015 Residential 1-4 family $ 252,773 $ 3,454 $ 332 $ 426 $ 93 $ 3,834 $ 4,685 $ — $ 5,770 Residential 5+ multifamily 6,032 71 — — — 89 89 — 89 Construction of residential 1-4 family 6,193 — — — — — — — — Home equity credit 32,733 424 291 — 422 10 723 — 494 Residential real estate 297,731 3,949 623 426 515 3,933 5,497 — 6,353 Commercial 106,638 1,708 1,569 240 119 681 2,609 — 2,423 Construction of commercial 12,539 — — 448 — — 448 — — Commercial real estate 119,177 1,708 1,569 688 119 681 3,057 — 2,423 Farm land 2,762 — — — — 723 723 — 1,036 Vacant land 5,504 1,119 — — — 2,823 2,823 — 2,857 Real estate secured 425,174 6,776 2,192 1,114 634 8,160 12,100 — 12,669 Commercial and industrial 69,459 840 139 397 5 18 559 5 419 Municipal 6,947 — — — — — — — — Consumer 5,653 92 14 1 — — 15 — — Loans receivable, gross $ 507,233 $ 7,708 $ 2,345 $ 1,512 $ 639 $ 8,178 $ 12,674 $ 5 $ 13,088 Acquired Loans September 30, 2015 Residential 1-4 family $ 6,977 $ 190 $ — $ — $ 269 $ 590 $ 859 $ 91 $ 767 Residential 5+ multifamily 6,228 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity credit — — — — — — — — — Residential real estate 13,205 190 — — 269 590 859 91 767 Commercial 86,852 1,982 — 461 102 2,070 2,633 — 2,172 Construction of commercial 4,590 — — — — 272 272 — 272 Commercial real estate 91,442 1,982 — 461 102 2,342 2,905 — 2,444 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 104,647 2,172 — 461 371 2,932 3,764 91 3,211 Commercial and industrial 53,116 561 191 20 40 — 251 — 40 Municipal — — — — — — — — — Consumer 70 — 4 — — — 4 — — Loans receivable, gross $ 157,833 $ 2,733 $ 195 $ 481 $ 411 $ 2,932 $ 4,019 $ 91 $ 3,251 Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 2014 Residential 1-4 family $ 241,567 $ 7,299 $ 1,250 $ 555 $ 976 $ 611 $ 3,392 $ — $ 2,445 Residential 5+ multifamily 5,467 — — — 89 — 89 — 89 Construction of residential 1-4 family 2,004 — — — — — — — — Home equity credit 33,488 387 122 528 39 63 752 — 348 Residential real estate 282,526 7,686 1,372 1,083 1,104 674 4,233 — 2,882 Commercial 94,598 2,079 602 — — 1,219 1,821 — 1,219 Construction of commercial 18,602 — — — — — — — — Commercial real estate 113,200 2,079 602 — — 1,219 1,821 — 1,219 Farm land 2,119 — 13 723 — 384 1,120 — 384 Vacant land 6,422 51 7 — 39 2,823 2,869 — 2,862 Real estate secured 404,267 9,816 1,994 1,806 1,143 5,100 10,043 — 7,347 Commercial and industrial 48,478 582 91 17 36 — 144 17 33 Municipal 6,083 — — — — — — — — Consumer 4,274 47 8 5 — — 13 — — Loans receivable, gross $ 463,102 $ 10,445 $ 2,093 $ 1,828 $ 1,179 $ 5,100 $ 10,200 $ 17 $ 7,380 Acquired Loans December 31, 2014 Residential 1-4 family $ 8,661 $ — $ — $ — $ — $ 562 $ 562 $ — $ 562 Residential 5+ multifamily 8,735 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity credit — — — — — — — — — Residential real estate 17,396 — — — — 562 562 — 562 Commercial 95,695 1,109 167 — 285 643 1,095 — 1,931 Construction of commercial 9,045 — — — — — — — — Commercial real estate 104,740 1,109 167 — 285 643 1,095 — 1,931 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 122,136 1,109 167 — 285 1,205 1,657 — 2,493 Commercial and industrial 67,665 740 89 220 — — 309 — — Municipal — — — — — — — — — Consumer 117 5 — — — — — — — Loans receivable, gross $ 189,918 $ 1,854 $ 256 $ 220 $ 285 $ 1,205 $ 1,966 $ — $ 2,493 |
Troubled debt restructurings | Business Activities Loans Nine months ended September 30, 2015 September 30, 2014 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 2 $ 923 $ 923 2 $ 237 $ 237 Commercial real estate 2 478 478 3 846 846 Construction of commercial — — — 1 131 131 Home equity credit 1 35 35 2 72 72 Troubled debt restructurings 5 $ 1,436 $ 1,436 8 $ 1,286 $ 1,286 Rate reduction and term extension 2 $ 478 $ 478 — — — Interest only and term extension — — — 1 48 48 Term extension and amortization — — — 2 338 338 Interest only — — — 2 54 54 Debt consolidation, rate reduction, term extension — — — 1 399 399 Debt consolidation and term extension — — — 2 447 447 Note bifurcation 1 48 48 — — — Term extension 2 910 910 — — — Troubled debt restructurings 5 $ 1,436 $ 1,436 8 $ 1,286 $ 1,286 |
Changes in allowance for loan losses | Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2015 Three months ended September 30, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,147 $ 632 $ (92 ) $ 111 $ 2,798 $ 15 $ 55 $ — $ — $ 70 Commercial 1,339 (102 ) (10 ) — 1,227 77 81 — 5 163 Land 182 168 (72 ) — 278 — — — — — Real estate 3,668 698 (174 ) 111 4,303 92 136 — 5 233 Commercial and industrial 691 (197 ) — 4 498 52 (22 ) — 10 40 Municipal 64 (16 ) — — 48 — — — — — Consumer 123 1 (17 ) 6 113 — — — — — Unallocated 369 55 — — 424 — — — — — Totals $ 4,915 $ 541 $ (191 ) $ 121 $ 5,386 $ 144 $ 114 $ — $ 15 $ 273 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2015 Nine months ended September 30, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,306 $ 952 $ (573 ) $ 113 $ 2,798 $ — $ 70 $ — $ — $ 70 Commercial 1,697 (256 ) (214 ) — 1,227 7 151 — 5 163 Land 164 186 (72 ) — 278 — — — — — Real estate 4,167 882 (859 ) 113 4,303 7 221 — 5 233 Commercial and industrial 583 (484 ) (56 ) 455 498 14 — — 26 40 Municipal 61 (13 ) — — 48 — — — — — Consumer 117 30 (47 ) 13 113 — — — — — Unallocated 409 15 — — 424 — — — — — Totals $ 5,337 $ 430 $ (962 ) $ 581 $ 5,386 $ 21 $ 221 $ — $ 31 $ 273 (in thousands) Three months ended September 30, 2014 Nine months ended September 30, 2014 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 1,974 $ 357 $ (46 ) $ 16 $ 2,301 $ 1,938 $ 494 $ (149 ) $ 18 $ 2,301 Commercial 1,622 89 — — 1,711 1,385 378 (52 ) — 1,711 Land 184 (17 ) (6 ) — 161 226 33 (98 ) — 161 Real estate 3,780 429 (52 ) 16 4,173 3,549 905 (299 ) 18 4,173 Commercial and industrial 584 (68 ) — 1 517 561 (57 ) (1 ) 14 517 Municipal 44 18 — — 62 43 19 — — 62 Consumer 49 11 (3 ) 2 59 105 (46 ) (18 ) 18 59 Unallocated 645 (72 ) — — 573 425 148 — — 573 Totals $ 5,102 $ 318 $ (55 ) $ 19 $ 5,384 $ 4,683 $ 969 $ (318 ) $ 50 $ 5,384 |
Composition of loans receivable and allowance for loan losses | Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance September 30, 2015 Residential 1-4 family $ 252,454 $ 1,603 $ 8,458 $ 724 $ 260,912 $ 2,327 Residential 5+ multifamily 4,315 37 1,877 — 6,192 37 Construction of residential 1-4 family 6,193 52 — — 6,193 52 Home equity credit 33,230 345 650 37 33,880 382 Residential real estate 296,192 2,037 10,985 761 307,177 2,798 Commercial 106,573 937 4,382 170 110,955 1,107 Construction of commercial 12,864 120 123 — 12,987 120 Commercial real estate 119,437 1,057 4,505 170 123,942 1,227 Farm land 2,449 19 1,036 1 3,485 20 Vacant land 6,364 234 3,082 24 9,446 258 Real estate secured 424,442 3,347 19,608 956 444,050 4,303 Commercial and industrial 70,372 494 486 4 70,858 498 Municipal 6,947 48 — — 6,947 48 Consumer 5,760 113 — — 5,760 113 Unallocated allowance — 424 — — — 424 Totals $ 507,521 $ 4,426 $ 20,094 $ 960 $ 527,615 $ 5,386 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance September 30, 2015 Residential 1-4 family $ 7,259 $ — $ 767 $ 70 $ — $ — $ 8,026 $ 70 Residential 5+ multifamily 6,228 — — — — — 6,228 — Construction of residential 1-4 family — — — — — — — — Home equity credit — — — — — — — — Residential real estate 13,487 — 767 70 — — 14,254 70 Commercial 83,257 13 2,920 145 5,290 2 91,467 160 Construction of commercial 4,590 3 272 — — — 4,862 3 Commercial real estate 87,847 16 3,192 145 5,290 2 96,329 163 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 101,334 16 3,959 215 5,290 2 110,583 233 Commercial and industrial 52,587 40 40 — 1,301 — 53,928 40 Municipal — — — — — — — — Consumer 57 — — — 17 — 74 — Unallocated allowance — — — — — — — — Totals $ 153,978 $ 56 $ 3,999 $ 215 $ 6,608 $ 2 $ 164,585 $ 273 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2014 Residential 1-4 family $ 245,997 $ 1,316 $ 6,261 $ 549 $ 252,258 $ 1,865 Residential 5+ multifamily 4,536 66 1,020 3 5,556 69 Construction of residential 1-4 family 2,004 13 — — 2,004 13 Home equity credit 34,231 350 396 9 34,627 359 Residential real estate 286,768 1,745 7,677 561 294,445 2,306 Commercial 93,784 1,018 4,714 486 98,498 1,504 Construction of commercial 18,474 193 128 — 18,602 193 Commercial real estate 112,258 1,211 4,842 486 117,100 1,697 Farm land 2,855 59 384 — 3,239 59 Vacant land 6,245 67 3,097 38 9,342 105 Real estate secured 408,126 3,082 16,000 1,085 424,126 4,167 Commercial and industrial 48,635 532 569 51 49,204 583 Municipal 6,083 61 — — 6,083 61 Consumer 4,334 117 — — 4,334 117 Unallocated allowance — 409 — — — 409 Totals $ 467,178 $ 4,201 $ 16,569 $ 1,136 $ 483,747 $ 5,337 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2014 Residential 1-4 family $ 8,661 $ — $ 562 $ — $ — $ — $ 9,223 $ — Residential 5+ multifamily 8,735 — — — — — 8,735 — Construction of residential 1-4 family — — — — — — — — Home equity credit — — — — — — — — Residential real estate 17,396 — 562 — — — 17,958 — Commercial 89,820 — 2,502 — 5,577 — 97,899 — Construction of commercial 9,045 7 — — — — 9,045 7 Commercial real estate 98,865 7 2,502 — 5,577 — 106,944 7 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 116,261 7 3,064 — 5,577 — 124,902 7 Commercial and industrial 66,874 14 — — 1,840 — 68,714 14 Municipal — — — — — — — — Consumer 103 — — — 19 — 122 — Unallocated allowance — — — — — — — — Totals $ 183,238 $ 21 $ 3,064 $ — $ 7,436 $ — $ 193,738 $ 21 |
Credit quality segments of loans receivable and allowance for loan losses | Business Activities Loans September 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 503,052 $ 3,935 $ — $ — $ 503,052 $ 3,935 Potential problem loans 4,469 67 — — 4,469 67 Impaired loans — — 20,094 960 20,094 960 Unallocated allowance — 424 — — — 424 Totals $ 507,521 $ 4,426 $ 20,094 $ 960 $ 527,615 $ 5,386 Acquired Loans September 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 158,144 $ 56 $ — $ — $ 158,144 $ 56 Potential problem loans 2,442 2 — — 2,442 2 Impaired loans — — 3,999 215 3,999 215 Unallocated allowance — — — — — — Totals $ 160,586 $ 58 $ 3,999 $ 215 $ 164,585 $ 273 Business Activities Loans December 31, 2014 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 457,744 $ 3,283 $ — $ — $ 457,744 $ 3,283 Potential problem loans 9,423 509 11 — 9,434 509 Impaired loans — — 16,569 1,136 16,569 1,136 Unallocated allowance — 409 — — — 409 Totals $ 467,167 $ 4,201 $ 16,580 $ 1,136 $ 483,747 $ 5,337 Acquired Loans December 31, 2014 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 187,966 $ 21 $ — $ — $ 187,966 $ 21 Potential problem loans 2,708 — — — 2,708 — Impaired loans — — 3,064 — 3,064 — Unallocated allowance — — — — — — Totals $ 190,674 $ 21 $ 3,064 $ — $ 193,738 $ 21 |
Certain data with respect to loans individually evaluated for impairment | Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2015 Residential 1-4 family $ 7,170 $ 7,703 $ 6,213 $ 724 $ 109 $ 3,165 $ 3,314 $ 3,043 $ 82 Home equity credit 543 557 176 37 6 107 122 611 2 Residential real estate 7,713 8,260 6,389 761 115 3,272 3,436 3,654 84 Commercial 3,864 4,309 2,629 170 113 518 548 2,130 12 Construction of commercial — — — — — 123 129 127 6 Farm land 11 13 445 1 — 1,025 1,100 270 15 Vacant land 2,870 3,789 3,058 24 2 212 244 5 7 Real estate secured 14,458 16,371 12,521 956 230 5,150 5,457 6,186 124 Commercial and industrial 247 255 120 4 8 239 272 464 7 Consumer — — — — — — — — — Totals $ 14,705 $ 16,626 $ 12,641 $ 960 $ 238 $ 5,389 $ 5,729 $ 6,650 $ 131 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2015 Residential 1-4 family $ 590 $ 716 $ 176 $ 70 $ — $ 177 $ 177 $ 436 $ 4 Home equity credit — — — — — — — — — Residential real estate 590 716 176 70 — 177 177 436 4 Commercial 2,146 2,897 557 145 61 774 1,091 2,097 10 Construction of commercial — — — — — 272 278 138 16 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 2,736 3,613 733 215 61 1,223 1,546 2,671 30 Commercial and industrial 40 70 4 — 1 — — — — Consumer — — — — — — — — — Totals $ 2,776 $ 3,683 $ 737 $ 215 $ 62 $ 1,223 $ 1,546 $ 2,671 $ 30 Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2014 Residential 1-4 family $ 5,008 $ 5,157 $ 4,547 $ 552 $ 128 $ 2,273 $ 2,395 $ 2,703 $ 57 Home equity credit 9 24 91 9 — 387 405 441 4 Residential real estate 5,017 5,181 4,638 561 128 2,660 2,800 3,144 61 Commercial 3,383 3,563 3,262 486 108 1,331 1,520 1,468 54 Construction of commercial — — — — — 128 134 123 — Farm land — — — — — 384 384 384 — Vacant land 3,097 3,996 3,090 38 12 — — — — Real estate secured 11,497 12,740 10,990 1,085 248 4,503 4,838 5,119 115 Commercial and industrial 102 161 106 51 2 467 469 516 30 Consumer — — — — — — — 19 — Totals $ 11,599 $ 12,901 $ 11,096 $ 1,136 $ 250 $ 4,970 $ 5,307 $ 5,654 $ 145 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2014 Residential 1-4 family $ — $ — $ — $ — $ — $ 562 $ 716 $ 562 $ 3 Home equity credit — — — — — — — — — Residential real estate — — — — — 562 716 562 3 Commercial — — — — — 2,502 4,014 2,502 12 Construction of commercial — — — — — — — — — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured — — — — — 3,064 4,730 3,064 15 Commercial and industrial — — — — — — 4 — — Consumer — — — — — — — — — Totals $ — $ — $ — $ — $ — $ 3,064 $ 4,734 $ 3,064 $ 15 |
Activity in the accretable yield for acquired loan portfolio falling under ASC-310-30 | Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Balance at beginning of period $ 1,604 $ — $ 1,242 $ — Acquisitions — — — — Sales — — — — Reclassification from nonaccretable difference for loans with improved cash flows 379 — 1,157 — Change in cash flows that do not affect nonaccretable difference — — — — Accretion (297 ) — (713 ) — Balance at end of period $ 1,686 $ — $ 1,686 $ — |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Balance of loans serviced for others and fair value of mortgage servicing rights | (in thousands) September 30, 2015 December 31, 2014 Residential mortgage loans serviced for others $ 132,201 $ 138,106 Fair value of mortgage servicing rights 1,429 1,568 |
Changes in mortgage servicing rights | Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Mortgage Servicing Rights Balance, beginning of period $ 599 $ 838 $ 694 $ 980 Originated 22 (17 ) 124 5 Amortization (1) (85 ) (56 ) (282 ) (220 ) Balance, end of period 536 765 536 765 Valuation Allowance Balance, beginning of period (2 ) (1 ) 1 (15 ) Decrease (increase) in impairment reserve (1) 1 1 (2 ) 15 Balance, end of period (1 ) — (1 ) — Loan servicing rights, net $ 535 $ 765 $ 535 $ 765 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
PLEDGED ASSETS (Tables)
PLEDGED ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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) September 30, 2015 December 31, 2014 Securities available-for-sale (at fair value) $ 68,569 $ 69,055 Loans receivable 159,436 157,581 Total pledged assets $ 228,005 $ 226,636 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Net income $ 1,985 $ 768 $ 6,290 $ 2,285 Less: Preferred stock dividends declared (40 ) (40 ) (120 ) (126 ) Net income available to common shareholders 1,945 728 6,170 2,159 Less: Undistributed earnings allocated to participating securities (17 ) (8 ) (54 ) (26 ) Net income allocated to common stock $ 1,928 $ 720 $ 6,116 $ 2,133 Common shares issued 2,731 1,713 2,728 1,713 Less: Unvested restricted stock awards (24 ) (20 ) (24 ) (21 ) Common shares outstanding used to calculate basic earnings per common share 2,707 1,693 2,704 1,692 Add: Dilutive effect of stock options 17 — 17 — Common shares outstanding used to calculate diluted earnings per common share 2,724 1,693 2,721 1,692 Earnings per common share (basic) $ 0.71 $ 0.43 $ 2.26 $ 1.26 Earnings per common share (diluted) $ 0.71 $ 0.43 $ 2.25 $ 1.26 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Actual regulatory capital position and minimum capital requirements | To be Well Capitalized Actual For Capital Adequacy Purposes Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2015 Total Capital (to risk-weighted assets) Salisbury $ 96,366 13.90 % $ 55,481 8.0 % n/a — Bank 87,507 12.62 55,481 8.0 $ 69,352 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 90,458 13.04 41,611 6.0 n/a — Bank 81,599 11.77 41,611 6.0 55,481 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 74,458 10.74 39,473 4.5 n/a — Bank 81,599 11.77 39,473 4.5 57,017 6.5 Tier 1 Capital (to average assets) Salisbury 90,458 10.31 35,088 4.0 n/a — Bank 81,599 9.30 35,088 4.0 43,859 5.0 December 31, 2014 Total Capital (to risk-weighted assets) Salisbury $ 89,783 14.27 % $ 50,334 8.0 % n/a — Bank 80,492 12.75 50,492 8.0 $ 63,116 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 84,171 13.38 25,167 4.0 n/a — Bank 74,881 11.86 25,246 4.0 37,869 6.0 Tier 1 Capital (to average assets) Salisbury 84,171 12.31 27,344 4.0 n/a — Bank 74,881 10.95 27,345 4.0 34,181 5.0 |
PENSIONS AND OTHER BENEFITS (Ta
PENSIONS AND OTHER BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic cost | Three months ended Nine months ended Periods ended September 30, (in thousands) 2014 2014 Interest cost on benefit obligation $ 69 $ 207 Expected return on plan assets (74 ) (222 ) Net periodic benefit cost $ (5 ) $ (15 ) |
ACCUMULATED OTHER COMPREHENSI26
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income | (in thousands) September 30, 2015 December 31, 2014 Unrealized gains on securities available-for-sale, net of tax $ 1,443 $ 2,108 Accumulated other comprehensive income, net $ 1,443 $ 2,108 |
FAIR VALUE OF ASSETS AND LIAB27
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 7,565 $ — $ 7,565 U.S. Government agency notes — 500 — 500 Municipal bonds — 33,317 — 33,317 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 27,006 — 27,006 Collateralized mortgage obligations: U.S. Government agencies — 2,157 — 2,157 Non-agency — 5,332 — 5,332 SBA bonds — 3,350 — 3,350 CRA mutual funds — 769 — 769 Preferred stock 375 — — 375 Securities available-for-sale $ 375 $ 79,996 $ — $ 80,371 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 16,305 16,305 Other real estate owned — — 167 167 December 31, 2014 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 2,806 $ — $ 2,806 U.S. Government agency notes — 5,874 — 5,874 Municipal bonds — 40,352 — 40,352 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 27,709 — 27,709 Collateralized mortgage obligations: U.S. Government agencies — 2,679 — 2,679 Non-agency — 6,596 — 6,596 SBA bonds — 4,465 — 4,465 CRA mutual funds — 504 — 504 Preferred stock 327 — — 327 Securities available-for-sale $ 327 $ 90,985 $ — $ 91,312 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 10,463 $ 10,463 Other real estate owned — — 1,002 1,002 |
Carrying value and estimated fair values of financial instruments | (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 September 30, 2015 Financial Assets Cash and cash equivalents $ 81,695 $ 81,695 $ 81,695 $ — $ — Securities available-for-sale 80,371 80,371 375 79,996 — Federal Home Loan Bank stock 3,515 3,515 — 3,515 — Loans held-for-sale 573 584 — — 584 Loans receivable, net 687,719 695,147 — — 695,147 Accrued interest receivable 2,296 2,296 — — 2,296 Cash surrender value of life insurance 13,591 13,591 13,591 — — Financial Liabilities Demand (non-interest-bearing) $ 194,618 $ 194,618 $ — $ — $ 194,618 Demand (interest-bearing) 129,779 129,779 — — 129,779 Money market 184,409 184,409 — — 184,409 Savings and other 123,017 123,017 — — 123,017 Certificates of deposit 129,656 130,765 — — 130,765 Deposits 761,479 762,588 — — 762,588 Repurchase agreements 4,210 4,210 — — 4,210 FHLBB advances 26,928 28,988 — — 28,988 Note payable 380 409 — — 409 Capital lease liability 422 898 — — 898 Accrued interest payable 121 121 — — 121 December 31, 2014 Financial Assets Cash and cash equivalents $ 36,105 $ 36,105 $ 36,105 $ — $ — Securities available-for-sale 91,312 91,312 327 90,985 — Federal Home Loan Bank stock 3,515 3,515 — 3,515 — Loans held-for-sale 568 572 — — 572 Loans receivable, net 673,330 683,845 — — 683,845 Accrued interest receivable 2,334 2,334 — — 2,334 Cash surrender value of life insurance 13,314 13,314 13,314 — — Financial Liabilities Demand (non-interest-bearing) $ 161,386 $ 161,386 $ — $ — $ 161,386 Demand (interest-bearing) 117,169 117,169 — — 117,169 Money market 174,274 174,274 — — 174,274 Savings and other 121,387 121,387 — — 121,387 Certificates of deposit 141,210 142,261 — — 142,261 Deposits 715,426 716,477 — — 716,477 Repurchase agreements 4,163 4,163 — — 4,163 FHLBB advances 28,813 30,626 — — 30,626 Capital lease liability 424 929 — — 929 Accrued interest payable 166 166 — — 166 |
SECURITIES - Composition of Sec
SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized cost (1) | ||
Available-for-sale | ||
U.S. Treasury notes | $ 7,498 | $ 2,699 |
U.S. Government Agency notes | 498 | 5,850 |
Municipal bonds | 32,691 | 38,962 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 26,449 | 27,036 |
Collateralized mortgage obligations, U.S. Government Agencies | 2,136 | 2,657 |
Collateralized mortgage obligations, Non-agency | 4,834 | 6,056 |
SBA bonds | 3,297 | 4,336 |
CRA mutual funds | 762 | 502 |
Preferred stock | 20 | 20 |
Total securities available-for-sale | 78,185 | 88,118 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | 3,515 | 3,515 |
Gross unrealized gains | ||
Available-for-sale | ||
U.S. Treasury notes | 67 | 107 |
U.S. Government Agency notes | 2 | 24 |
Municipal bonds | 690 | 1,455 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 575 | 688 |
Collateralized mortgage obligations, U.S. Government Agencies | 21 | 22 |
Collateralized mortgage obligations, Non-agency | 505 | 552 |
SBA bonds | 53 | 129 |
CRA mutual funds | 7 | 2 |
Preferred stock | 355 | 307 |
Total securities available-for-sale | $ 2,275 | $ 3,286 |
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 | $ (64) | $ (65) |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | $ (18) | $ (15) |
Collateralized mortgage obligations, U.S. Government Agencies | ||
Collateralized mortgage obligations, Non-agency | $ (7) | $ (12) |
SBA bonds | ||
CRA mutual funds | ||
Preferred stock | ||
Total securities available-for-sale | $ (89) | $ (92) |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Fair value | ||
Available-for-sale | ||
U.S. Treasury notes | $ 7,565 | $ 2,806 |
U.S. Government Agency notes | 500 | 5,874 |
Municipal bonds | 33,317 | 40,352 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 27,006 | 27,709 |
Collateralized mortgage obligations, U.S. Government Agencies | 2,157 | 2,679 |
Collateralized mortgage obligations, Non-agency | 5,332 | 6,596 |
SBA bonds | 3,350 | 4,465 |
CRA mutual funds | 769 | 504 |
Preferred stock | 375 | 327 |
Total securities available-for-sale | 80,371 | 91,312 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | $ 3,515 | $ 3,515 |
SECURITIES - Aggreggate fair va
SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Less Than 12 Months, Fair value | ||
Available-for-sale | ||
Municipal bonds | $ 1,267 | $ 177 |
Mortgage-backed securities | 1,828 | 56 |
Collateralized mortgage obligations, Non-agency | 244 | 441 |
Total temporarily impaired securities | 3,339 | 674 |
Less Than 12 Months, Unrealized losses | ||
Available-for-sale | ||
Municipal bonds | (64) | 1 |
Mortgage-backed securities | (18) | 1 |
Collateralized mortgage obligations, Non-agency | (7) | 7 |
Total temporarily impaired securities | $ (89) | 9 |
12 Months or Longer, Fair value | ||
Available-for-sale | ||
Municipal bonds | 1,589 | |
Mortgage-backed securities | 1,885 | |
Collateralized mortgage obligations, Non-agency | 164 | |
Total temporarily impaired securities | 3,638 | |
12 Months or Longer, Unrealized losses | ||
Available-for-sale | ||
Municipal bonds | 64 | |
Mortgage-backed securities | 14 | |
Collateralized mortgage obligations, Non-agency | 5 | |
Total temporarily impaired securities | 83 | |
Total, Fair value | ||
Available-for-sale | ||
Municipal bonds | $ 1,267 | 1,766 |
Mortgage-backed securities | 1,828 | 1,941 |
Collateralized mortgage obligations, Non-agency | 244 | 605 |
Total temporarily impaired securities | 3,339 | 4,312 |
Total, Unrealized losses | ||
Available-for-sale | ||
Municipal bonds | (64) | 65 |
Mortgage-backed securities | (18) | 15 |
Collateralized mortgage obligations, Non-agency | (7) | 12 |
Total temporarily impaired securities | $ (89) | $ 92 |
SECURITIES - Activity related t
SECURITIES - Activity related to credit losses recognized into earnings (Details) - Activity related to credit losses recognized into earnings - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
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 ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2009 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities sold | $ 3,700 | ||
Realized gains on sales of securities sold | $ 153 | ||
Recognized losses for deterioration in credit quality | $ 1,128 |
LOANS - Composition of loans re
LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Business Activites Loans | ||
Residential 1-4 family | $ 260,912 | $ 252,258 |
Residential 5+ multifamily | 6,192 | 5,556 |
Construction of residential 1-4 family | 6,193 | 2,004 |
Home equity credit | 33,880 | 34,627 |
Residential real estate | 307,177 | 294,445 |
Commercial | 110,955 | 98,498 |
Construction of commercial | 12,987 | 18,602 |
Commercial real estate | 123,942 | 117,100 |
Farm land | 3,485 | 3,239 |
Vacant land | 9,446 | 9,342 |
Real estate secured | 444,050 | 424,126 |
Commercial and industrial | 70,858 | 49,204 |
Municipal | 6,947 | 6,083 |
Consumer | 5,760 | 4,334 |
Loans receivable, gross | 527,615 | 483,747 |
Deferred loan origination fees and costs, net | 1,178 | 1,203 |
Allowance for loan losses | (5,386) | (5,337) |
Loans receivable, net | 523,407 | 479,613 |
Loans held-for-sale | ||
Residential 1-4 family | 573 | 568 |
Acquired Loans | ||
Residential 1-4 family | 8,026 | 9,223 |
Residential 5+ multifamily | $ 6,228 | $ 8,735 |
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 14,254 | $ 17,958 |
Commercial | 91,467 | 97,899 |
Construction of commercial | 4,862 | 9,045 |
Commercial real estate | $ 96,329 | $ 106,944 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 110,583 | $ 124,902 |
Commercial and industrial | $ 53,928 | $ 68,714 |
Municipal | ||
Consumer | $ 74 | $ 122 |
Loans receivable, gross | $ 164,585 | $ 193,738 |
Deferred loan origination fees and costs, net | ||
Allowance for loan losses | $ (273) | $ (21) |
Loans receivable, net | $ 164,312 | $ 193,717 |
Loans held-for-sale | ||
Residential 1-4 family | ||
Total | ||
Residential 1-4 family | $ 268,938 | $ 261,481 |
Residential 5+ multifamily | 12,420 | 14,291 |
Construction of residential 1-4 family | 6,193 | 2,004 |
Home equity credit | 33,880 | 34,627 |
Residential real estate | 321,431 | 312,403 |
Commercial | 202,422 | 196,397 |
Construction of commercial | 17,849 | 27,647 |
Commercial real estate | 220,271 | 224,044 |
Farm land | 3,485 | 3,239 |
Vacant land | 9,446 | 9,342 |
Real estate secured | 554,633 | 549,028 |
Commercial and industrial | 124,786 | 117,918 |
Municipal | 6,947 | 6,083 |
Consumer | 5,834 | 4,456 |
Loans receivable, gross | 692,200 | 677,485 |
Deferred loan origination fees and costs, net | 1,178 | 1,203 |
Allowance for loan losses | (5,659) | (5,358) |
Loans receivable, net | 687,719 | 673,330 |
Loans held-for-sale | ||
Residential 1-4 family | $ 573 | $ 568 |
LOANS - Composition of loans 33
LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Business Activities Loans - Pass | ||
Residential 1-4 family | $ 246,872 | $ 232,628 |
Residential 5+ multifamily | 4,180 | 3,420 |
Construction of residential 1-4 family | 6,193 | 2,004 |
Home equity credit | 32,331 | 32,639 |
Residential real estate | 289,576 | 270,691 |
Commercial | 99,165 | 79,975 |
Construction of commercial | 12,416 | 18,024 |
Commercial real estate | 111,581 | 97,999 |
Farm land | 2,449 | 772 |
Vacant land | 6,446 | 6,039 |
Real estate secured | 410,052 | 375,501 |
Commercial and industrial | 69,007 | 44,903 |
Municipal | 6,947 | 6,083 |
Consumer | 5,742 | 4,271 |
Loans receivable, gross | 491,748 | 430,758 |
Business Activities Loans - Special mention | ||
Residential 1-4 family | 7,053 | 12,350 |
Residential 5+ multifamily | $ 1,048 | $ 1,072 |
Construction of residential 1-4 family | ||
Home equity credit | $ 469 | $ 807 |
Residential real estate | 8,570 | 14,229 |
Commercial | $ 4,984 | $ 10,728 |
Construction of commercial | ||
Commercial real estate | $ 4,984 | $ 10,728 |
Farm land | 1,361 | |
Vacant land | $ 71 | 140 |
Real estate secured | 13,625 | 26,458 |
Commercial and industrial | $ 1,230 | $ 3,527 |
Municipal | ||
Consumer | $ 11 | $ 53 |
Loans receivable, gross | 14,866 | 30,038 |
Business Activities Loans - Substandard | ||
Residential 1-4 family | 6,895 | 7,187 |
Residential 5+ multifamily | $ 964 | $ 1,064 |
Construction of residential 1-4 family | ||
Home equity credit | $ 1,080 | $ 1,181 |
Residential real estate | 8,939 | 9,432 |
Commercial | 6,806 | 7,795 |
Construction of commercial | 571 | 578 |
Commercial real estate | 7,377 | 8,373 |
Farm land | 1,036 | 1,106 |
Vacant land | 2,929 | 3,163 |
Real estate secured | 20,281 | 22,074 |
Commercial and industrial | $ 621 | $ 774 |
Municipal | ||
Consumer | $ 7 | $ 10 |
Loans receivable, gross | 20,909 | 22,858 |
Business Activities Loans - Doubtful | ||
Residential 1-4 family | $ 92 | $ 93 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 92 | $ 93 |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | $ 92 | $ 93 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 92 | $ 93 |
Business Activities Loans - 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 | ||
Business Activities Loans - Total | ||
Residential 1-4 family | $ 260,912 | $ 252,258 |
Residential 5+ multifamily | 6,192 | 5,556 |
Construction of residential 1-4 family | 6,193 | 2,004 |
Home equity credit | 33,880 | 34,627 |
Residential real estate | 307,177 | 294,445 |
Commercial | 110,955 | 98,498 |
Construction of commercial | 12,987 | 18,602 |
Commercial real estate | 123,942 | 117,100 |
Farm land | 3,485 | 3,239 |
Vacant land | 9,446 | 9,342 |
Real estate secured | 444,050 | 424,126 |
Commercial and industrial | 70,858 | 49,204 |
Municipal | 6,947 | 6,083 |
Consumer | 5,760 | 4,334 |
Loans receivable, gross | 527,615 | 483,747 |
Acquired Loans - Pass | ||
Residential 1-4 family | 7,168 | 8,661 |
Residential 5+ multifamily | $ 6,228 | $ 8,735 |
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 13,396 | $ 17,396 |
Commercial | 83,657 | 89,820 |
Construction of commercial | 4,590 | 9,045 |
Commercial real estate | $ 88,247 | $ 98,865 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 101,643 | $ 116,261 |
Commercial and industrial | $ 52,051 | $ 66,098 |
Municipal | ||
Consumer | $ 50 | $ 96 |
Loans receivable, gross | 153,744 | $ 182,455 |
Acquired Loans - Special Mention | ||
Residential 1-4 family | $ 91 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 91 | |
Commercial | $ 3,052 | $ 3,830 |
Construction of commercial | ||
Commercial real estate | $ 3,052 | $ 3,830 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 3,143 | $ 3,830 |
Commercial and industrial | $ 1,192 | $ 1,675 |
Municipal | ||
Consumer | $ 7 | $ 7 |
Loans receivable, gross | 4,342 | 5,512 |
Acquired Loans - Substandard | ||
Residential 1-4 family | $ 767 | $ 562 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 767 | $ 562 |
Commercial | 4,758 | $ 3,723 |
Construction of commercial | 272 | |
Commercial real estate | $ 5,030 | $ 3,723 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 5,797 | $ 4,285 |
Commercial and industrial | $ 603 | $ 941 |
Municipal | ||
Consumer | $ 19 | |
Loans receivable, gross | $ 6,400 | $ 5,245 |
Acquired Loans - Doubtful | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | ||
Commercial | $ 526 | |
Construction of commercial | ||
Commercial real estate | $ 526 | |
Farm land | ||
Vacant land | ||
Real estate secured | $ 526 | |
Commercial and industrial | $ 82 | |
Municipal | ||
Consumer | $ 17 | |
Loans receivable, gross | $ 99 | $ 526 |
Acquired Loans - 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 | ||
Acquired Loans - Total | ||
Residential 1-4 family | $ 8,026 | $ 9,223 |
Residential 5+ multifamily | $ 6,228 | $ 8,735 |
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 14,254 | $ 17,958 |
Commercial | 91,467 | 97,899 |
Construction of commercial | 4,862 | 9,045 |
Commercial real estate | $ 96,329 | $ 106,944 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 110,583 | $ 124,902 |
Commercial and industrial | $ 53,928 | $ 68,714 |
Municipal | ||
Consumer | $ 74 | $ 122 |
Loans receivable, gross | $ 164,585 | $ 193,738 |
LOANS - Composition of loans 34
LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Business Activities Loans - Current | ||
Residential 1-4 family | $ 252,773 | $ 241,567 |
Residential 5+ multifamily | 6,032 | 5,467 |
Construction of residential 1-4 family | 6,193 | 2,004 |
Home equity credit | 32,733 | 33,488 |
Residential real estate | 297,731 | 282,526 |
Commercial | 106,638 | 94,598 |
Construction of commercial | 12,539 | 18,602 |
Commercial real estate | 119,177 | 113,200 |
Farm land | 2,762 | 2,119 |
Vacant land | 5,504 | 6,422 |
Real estate secured | 425,174 | 404,267 |
Commercial and industrial | 69,459 | 48,478 |
Municipal | 6,947 | 6,083 |
Consumer | 5,653 | 4,274 |
Loans receivable, gross | 507,233 | 463,102 |
Business Activities Loans - Past due 1-29 days | ||
Residential 1-4 family | 3,454 | $ 7,299 |
Residential 5+ multifamily | $ 71 | |
Construction of residential 1-4 family | ||
Home equity credit | $ 424 | $ 387 |
Residential real estate | 3,949 | 7,686 |
Commercial | $ 1,708 | $ 2,079 |
Construction of commercial | ||
Commercial real estate | $ 1,708 | $ 2,079 |
Farm land | ||
Vacant land | $ 1,119 | $ 51 |
Real estate secured | 6,776 | 9,816 |
Commercial and industrial | $ 840 | $ 582 |
Municipal | ||
Consumer | $ 92 | $ 47 |
Loans receivable, gross | 7,708 | 10,445 |
Business Activities Loans - Past due 30-59 days | ||
Residential 1-4 family | $ 332 | $ 1,250 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | $ 291 | $ 122 |
Residential real estate | 623 | 1,372 |
Commercial | $ 1,569 | $ 602 |
Construction of commercial | ||
Commercial real estate | $ 1,569 | $ 602 |
Farm land | 13 | |
Vacant land | 7 | |
Real estate secured | $ 2,192 | 1,994 |
Commercial and industrial | $ 139 | $ 91 |
Municipal | ||
Consumer | $ 14 | $ 8 |
Loans receivable, gross | 2,345 | 2,093 |
Business Activities Loans - Past due 60-89 days | ||
Residential 1-4 family | $ 426 | $ 555 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | $ 528 | |
Residential real estate | $ 426 | $ 1,083 |
Commercial | 240 | |
Construction of commercial | 448 | |
Commercial real estate | $ 688 | |
Farm land | $ 723 | |
Vacant land | ||
Real estate secured | $ 1,114 | $ 1,806 |
Commercial and industrial | $ 397 | $ 17 |
Municipal | ||
Consumer | $ 1 | $ 5 |
Loans receivable, gross | 1,512 | 1,828 |
Business Activities Loans - Past due 90-179 days | ||
Residential 1-4 family | $ 93 | 976 |
Residential 5+ multifamily | $ 89 | |
Construction of residential 1-4 family | ||
Home equity credit | $ 422 | $ 39 |
Residential real estate | 515 | $ 1,104 |
Commercial | $ 119 | |
Construction of commercial | ||
Commercial real estate | $ 119 | |
Farm land | ||
Vacant land | $ 39 | |
Real estate secured | $ 634 | 1,143 |
Commercial and industrial | $ 5 | $ 36 |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 639 | $ 1,179 |
Business Activities Loans - Past due 180 days and over | ||
Residential 1-4 family | 3,834 | $ 611 |
Residential 5+ multifamily | $ 89 | |
Construction of residential 1-4 family | ||
Home equity credit | $ 10 | $ 63 |
Residential real estate | 3,933 | 674 |
Commercial | $ 681 | $ 1,219 |
Construction of commercial | ||
Commercial real estate | $ 681 | $ 1,219 |
Farm land | 723 | 384 |
Vacant land | 2,823 | 2,823 |
Real estate secured | 8,160 | $ 5,100 |
Commercial and industrial | $ 18 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 8,178 | $ 5,100 |
Business Activities Loans - Past due 30 days and over | ||
Residential 1-4 family | 4,685 | 3,392 |
Residential 5+ multifamily | $ 89 | $ 89 |
Construction of residential 1-4 family | ||
Home equity credit | $ 723 | $ 752 |
Residential real estate | 5,497 | 4,233 |
Commercial | 2,609 | $ 1,821 |
Construction of commercial | 448 | |
Commercial real estate | 3,057 | $ 1,821 |
Farm land | 723 | 1,120 |
Vacant land | 2,823 | 2,869 |
Real estate secured | 12,100 | 10,043 |
Commercial and industrial | $ 559 | $ 144 |
Municipal | ||
Consumer | $ 15 | $ 13 |
Loans receivable, gross | $ 12,674 | $ 10,200 |
Business Activities Loans - Accruing 90 days and over | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | ||
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | ||
Commercial and industrial | $ 5 | $ 17 |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 5 | $ 17 |
Business Activities Loans - Non-accrual | ||
Residential 1-4 family | 5,770 | 2,445 |
Residential 5+ multifamily | $ 89 | $ 89 |
Construction of residential 1-4 family | ||
Home equity credit | $ 494 | $ 348 |
Residential real estate | 6,353 | 2,882 |
Commercial | $ 2,423 | $ 1,219 |
Construction of commercial | ||
Commercial real estate | $ 2,423 | $ 1,219 |
Farm land | 1,036 | 384 |
Vacant land | 2,857 | 2,862 |
Real estate secured | 12,669 | 7,347 |
Commercial and industrial | $ 419 | $ 33 |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 13,088 | $ 7,380 |
Acquired Loans - Current | ||
Residential 1-4 family | 6,977 | 8,661 |
Residential 5+ multifamily | $ 6,228 | $ 8,735 |
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 13,205 | $ 17,396 |
Commercial | 86,852 | 95,695 |
Construction of commercial | 4,590 | 3,045 |
Commercial real estate | $ 91,442 | $ 104,740 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 104,647 | $ 122,136 |
Commercial and industrial | $ 53,116 | $ 67,665 |
Municipal | ||
Consumer | $ 70 | $ 117 |
Loans receivable, gross | 157,833 | $ 189,918 |
Acquired Loans - Past due 1-29 days | ||
Residential 1-4 family | $ 190 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 190 | |
Commercial | $ 1,982 | $ 1,109 |
Construction of commercial | ||
Commercial real estate | $ 1,982 | $ 1,109 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 2,172 | $ 1,109 |
Commercial and industrial | $ 561 | $ 740 |
Municipal | ||
Consumer | $ 5 | |
Loans receivable, gross | $ 2,733 | $ 1,854 |
Acquired Loans - Past due 30-59 days | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | ||
Commercial | $ 167 | |
Construction of commercial | ||
Commercial real estate | $ 167 | |
Farm land | ||
Vacant land | ||
Real estate secured | $ 167 | |
Commercial and industrial | $ 191 | $ 89 |
Municipal | ||
Consumer | $ 4 | |
Loans receivable, gross | $ 195 | $ 256 |
Acquired Loans - Past due 60-89 days | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | ||
Commercial | $ 461 | |
Construction of commercial | ||
Commercial real estate | $ 461 | |
Farm land | ||
Vacant land | ||
Real estate secured | $ 461 | |
Commercial and industrial | $ 20 | $ 220 |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 481 | $ 220 |
Acquired Loans - Past due 90-179 days | ||
Residential 1-4 family | $ 269 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 269 | |
Commercial | $ 102 | $ 285 |
Construction of commercial | ||
Commercial real estate | $ 102 | $ 285 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 371 | $ 285 |
Commercial and industrial | $ 40 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 411 | $ 285 |
Acquired Loans - Past due 180 days and over | ||
Residential 1-4 family | $ 590 | $ 562 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 590 | $ 562 |
Commercial | 2,070 | $ 643 |
Construction of commercial | 272 | |
Commercial real estate | $ 2,342 | $ 643 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 2,932 | $ 1,205 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 2,932 | $ 1,205 |
Acquired Loans - Past due 30 days and over | ||
Residential 1-4 family | $ 859 | $ 562 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 859 | $ 562 |
Commercial | 2,633 | $ 1,095 |
Construction of commercial | 272 | |
Commercial real estate | $ 2,905 | $ 1,095 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 3,764 | $ 1,657 |
Commercial and industrial | $ 251 | $ 309 |
Municipal | ||
Consumer | $ 4 | |
Loans receivable, gross | 4,019 | $ 1,966 |
Acquired Loans - Accruing 90 days and over | ||
Residential 1-4 family | $ 91 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 91 | |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | $ 91 | |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 91 | |
Acquired Loans - Non-accrual | ||
Residential 1-4 family | $ 767 | $ 562 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 767 | $ 562 |
Commercial | 2,172 | $ 1,931 |
Construction of commercial | 272 | |
Commercial real estate | $ 2,444 | $ 1,931 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 3,211 | $ 2,493 |
Commercial and industrial | $ 40 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 3,251 | $ 2,493 |
LOANS - Troubled debt restructu
LOANS - Troubled debt restructurings (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)Integer | Sep. 30, 2014USD ($)Integer | |
Business Activities Loans - Residential real estate | ||
Quantity of troubled debt restructurings | Integer | 2 | 2 |
Pre-modification balance | $ 923 | $ 237 |
Post-modification balance | $ 923 | $ 237 |
Business Activities Loans - Commercial real estate | ||
Quantity of troubled debt restructurings | Integer | 2 | 3 |
Pre-modification balance | $ 478 | $ 846 |
Post-modification balance | $ 478 | $ 846 |
Business Activities Loans - Construction of commercial | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 131 | |
Post-modification balance | $ 131 | |
Business Activities Loans - Home equity credit | ||
Quantity of troubled debt restructurings | Integer | 1 | 2 |
Pre-modification balance | $ 35 | $ 72 |
Post-modification balance | $ 35 | $ 72 |
Business Activities Loans - Troubled debt restructurings | ||
Quantity of troubled debt restructurings | Integer | 5 | 8 |
Pre-modification balance | $ 1,436 | $ 1,286 |
Post-modification balance | $ 1,436 | $ 1,286 |
Business Activities Loans - Rate reduction and term extension | ||
Quantity of troubled debt restructurings | Integer | 2 | |
Pre-modification balance | $ 478 | |
Post-modification balance | $ 478 | |
Business Activities Loans - Interest only and term extension | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 48 | |
Post-modification balance | $ 48 | |
Business Activities Loans - Term extension and amortization | ||
Quantity of troubled debt restructurings | Integer | 2 | |
Pre-modification balance | $ 338 | |
Post-modification balance | $ 338 | |
Business Activities Loans - Interest only | ||
Quantity of troubled debt restructurings | Integer | 2 | |
Pre-modification balance | $ 54 | |
Post-modification balance | $ 54 | |
Business Activities Loans - Debt consolidation, rate reduction, term extension | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 399 | |
Post-modification balance | $ 399 | |
Business Activities Loans - Debt consolidation and term extension | ||
Quantity of troubled debt restructurings | Integer | 2 | |
Pre-modification balance | $ 447 | |
Post-modification balance | $ 447 | |
Business Activities Loans - Note bifurcation | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 48 | |
Post-modification balance | $ 48 | |
Business Activities Loans - Term extension | ||
Quantity of troubled debt restructurings | Integer | 2 | |
Pre-modification balance | $ 910 | |
Post-modification balance | $ 910 |
LOANS - Changes in allowance fo
LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Business Activities Loans - Three Months Ended - Beginning balance | ||
Residential | $ 2,147 | |
Commercial | 1,339 | |
Land | 182 | |
Real estate | 3,668 | |
Commercial and industrial | 691 | |
Municipal | 64 | |
Consumer | 123 | |
Unallocated | 369 | |
Totals | 4,915 | |
Business Activities Loans - Three Months Ended - Provision (benefit) | ||
Residential | 632 | |
Commercial | (102) | |
Land | 168 | |
Real estate | 698 | |
Commercial and industrial | (197) | |
Municipal | (16) | |
Consumer | 1 | |
Unallocated | 55 | |
Totals | 541 | |
Business Activities Loans - Three Months Ended - Charge-offs | ||
Residential | (92) | |
Commercial | (10) | |
Land | (72) | |
Real estate | $ (174) | |
Commercial and industrial | ||
Municipal | ||
Consumer | $ (17) | |
Unallocated | ||
Totals | $ (191) | |
Business Activities Loans - Three Months Ended - Recoveries | ||
Residential | $ 111 | |
Commercial | ||
Land | ||
Real estate | $ 111 | |
Commercial and industrial | $ 4 | |
Municipal | ||
Consumer | $ 6 | |
Unallocated | ||
Totals | $ 121 | |
Business Activities Loans - Three Months Ended - Ending balance | ||
Residential | 2,798 | |
Commercial | 1,227 | |
Land | 278 | |
Real estate | 4,303 | |
Commercial and industrial | 498 | |
Municipal | 48 | |
Consumer | 113 | |
Unallocated | 424 | |
Totals | 5,386 | |
Acquired Loans - Three Months Ended - Beginning balance | ||
Residential | 15 | |
Commercial | $ 77 | |
Land | ||
Real estate | $ 92 | |
Commercial and industrial | $ 52 | |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | $ 144 | |
Acquired Loans - Three Months Ended - Provision (benefit) | ||
Residential | 55 | |
Commercial | $ 81 | |
Land | ||
Real estate | $ 136 | |
Commercial and industrial | $ (22) | |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | $ 114 | |
Acquired Loans - Three Months Ended - Charge-offs | ||
Residential | ||
Commercial | ||
Land | ||
Real estate | ||
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | ||
Acquired Loans - Three Months Ended - Recoveries | ||
Residential | ||
Commercial | $ 5 | |
Land | ||
Real estate | $ 5 | |
Commercial and industrial | $ 10 | |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | $ 15 | |
Acquired Loans - Three Months Ended - Ending balance | ||
Residential | 70 | |
Commercial | $ 163 | |
Land | ||
Real estate | $ 233 | |
Commercial and industrial | $ 40 | |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | $ 273 | |
Business Activities Loans - Nine Months Ended - Beginning balance | ||
Residential | 2,306 | |
Commercial | 1,697 | |
Land | 164 | |
Real estate | 4,167 | |
Commercial and industrial | 583 | |
Municipal | 61 | |
Consumer | 117 | |
Unallocated | 409 | |
Totals | 5,337 | |
Business Activities Loans - Nine Months Ended - Provision (benefit) | ||
Residential | 952 | |
Commercial | (256) | |
Land | 186 | |
Real estate | 882 | |
Commercial and industrial | (484) | |
Municipal | (13) | |
Consumer | 30 | |
Unallocated | 15 | |
Totals | 430 | |
Business Activities Loans - Nine Months Ended - Charge-offs | ||
Residential | (573) | |
Commercial | (214) | |
Land | (72) | |
Real estate | (859) | |
Commercial and industrial | $ (56) | |
Municipal | ||
Consumer | $ (47) | |
Unallocated | ||
Totals | $ (962) | |
Business Activities Loans - Nine Months Ended - Recoveries | ||
Residential | $ 113 | |
Commercial | ||
Land | ||
Real estate | $ 113 | |
Commercial and industrial | $ 455 | |
Municipal | ||
Consumer | $ 13 | |
Unallocated | ||
Totals | $ 581 | |
Business Activities Loans - Nine Months Ended - Ending balance | ||
Residential | 2,798 | |
Commercial | 1,227 | |
Land | 278 | |
Real estate | 4,303 | |
Commercial and industrial | 498 | |
Municipal | 48 | |
Consumer | 113 | |
Unallocated | 424 | |
Totals | $ 5,386 | |
Acquired Loans - Nine Months Ended - Beginning balance | ||
Residential | ||
Commercial | $ 7 | |
Land | ||
Real estate | $ 7 | |
Commercial and industrial | $ 14 | |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | $ 21 | |
Acquired Loans - Nine Months Ended - Provision (benefit) | ||
Residential | 70 | |
Commercial | $ 151 | |
Land | ||
Real estate | $ 221 | |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | $ 221 | |
Acquired Loans - Nine Months Ended - Charge-offs | ||
Residential | ||
Commercial | ||
Land | ||
Real estate | ||
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | ||
Acquired Loans - Nine Months Ended - Recoveries | ||
Residential | ||
Commercial | $ 5 | |
Land | ||
Real estate | $ 5 | |
Commercial and industrial | $ 26 | |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | $ 31 | |
Acquired Loans - Nine Months Ended - Ending balance | ||
Residential | 70 | |
Commercial | $ 163 | |
Land | ||
Real estate | $ 233 | |
Commercial and industrial | $ 40 | |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | $ 273 | |
Three months ended - Beginning balance | ||
Residential | $ 1,974 | |
Commercial | 1,622 | |
Land | 184 | |
Real estate | 3,780 | |
Commercial and industrial | 584 | |
Municipal | 44 | |
Consumer | 49 | |
Unallocated | 645 | |
Totals | 5,102 | |
Three months ended - Provision | ||
Residential | 357 | |
Commercial | 89 | |
Land | (17) | |
Real estate | 429 | |
Commercial and industrial | (68) | |
Municipal | 18 | |
Consumer | 11 | |
Unallocated | (72) | |
Totals | 318 | |
Three months ended - Charge-offs | ||
Residential | $ (46) | |
Commercial | ||
Land | $ (6) | |
Real estate | $ (52) | |
Commercial and industrial | ||
Municipal | ||
Consumer | $ (3) | |
Unallocated | ||
Totals | $ (55) | |
Three months ended - Recoveries | ||
Residential | $ 16 | |
Commercial | ||
Land | ||
Real estate | $ 16 | |
Commercial and industrial | $ 1 | |
Municipal | ||
Consumer | $ 2 | |
Unallocated | ||
Totals | $ 19 | |
Three months ended - Ending balance | ||
Residential | 2,301 | |
Commercial | 1,711 | |
Land | 161 | |
Real estate | 4,173 | |
Commercial and industrial | 517 | |
Municipal | 62 | |
Consumer | 59 | |
Unallocated | 573 | |
Totals | 5,384 | |
Nine months ended - Beginning balance | ||
Residential | 1,938 | |
Commercial | 1,385 | |
Land | 226 | |
Real estate | 3,549 | |
Commercial and industrial | 561 | |
Municipal | 43 | |
Consumer | 105 | |
Unallocated | 425 | |
Totals | 4,683 | |
Nine months ended - Provision | ||
Residential | 494 | |
Commercial | 378 | |
Land | 33 | |
Real estate | 905 | |
Commercial and industrial | (57) | |
Municipal | 19 | |
Consumer | (46) | |
Unallocated | 148 | |
Totals | 969 | |
Nine months ended - Charge-offs | ||
Residential | (149) | |
Commercial | (52) | |
Land | (98) | |
Real estate | (299) | |
Commercial and industrial | $ (1) | |
Municipal | ||
Consumer | $ (18) | |
Unallocated | ||
Totals | $ (318) | |
Nine months ended - Recoveries | ||
Residential | $ 18 | |
Commercial | ||
Land | ||
Real estate | $ 18 | |
Commercial and industrial | $ 14 | |
Municipal | ||
Consumer | $ 18 | |
Unallocated | ||
Totals | $ 50 | |
Nine months ended - Ending balance | ||
Residential | 2,301 | |
Commercial | 1,711 | |
Land | 161 | |
Real estate | 4,173 | |
Commercial and industrial | 517 | |
Municipal | 62 | |
Consumer | 59 | |
Unallocated | 573 | |
Totals | $ 5,384 |
LOANS - Composition of loans 37
LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Business Activities Loans - Collectively evaluated Loans | ||
Residential 1-4 family | $ 252,454 | $ 245,997 |
Residential 5+ multifamily | 4,315 | 4,536 |
Construction of residential 1-4 family | 6,193 | 2,004 |
Home equity credit | 33,230 | 34,231 |
Residential real estate | 296,192 | 286,768 |
Commercial | 106,573 | 93,784 |
Construction of commercial | 12,864 | 18,474 |
Commercial real estate | 119,437 | 112,258 |
Farm land | 2,449 | 2,855 |
Vacant land | 6,364 | 6,245 |
Real estate secured | 424,442 | 408,126 |
Commercial and industrial | 70,372 | 48,635 |
Municipal | 6,947 | 6,083 |
Consumer | $ 5,760 | $ 4,334 |
Unallocated allowance | ||
Totals | $ 507,521 | $ 467,178 |
Business Activities Loans - Collectively evaluated Allowance | ||
Residential 1-4 family | 1,603 | 1,316 |
Residential 5+ multifamily | 37 | 66 |
Construction of residential 1-4 family | 52 | 13 |
Home equity credit | 345 | 350 |
Residential real estate | 2,037 | 1,745 |
Commercial | 937 | 1,018 |
Construction of commercial | 120 | 193 |
Commercial real estate | 1,057 | 1,211 |
Farm land | 19 | 59 |
Vacant land | 234 | 67 |
Real estate secured | 3,347 | 3,082 |
Commercial and industrial | 494 | 532 |
Municipal | 48 | 61 |
Consumer | 113 | $ 117 |
Unallocated allowance | 424 | |
Totals | 4,426 | $ 3,792 |
Business Activities Loans - Individually evaluated Loans | ||
Residential 1-4 family | 8,458 | 6,261 |
Residential 5+ multifamily | $ 1,877 | $ 1,020 |
Construction of residential 1-4 family | ||
Home equity credit | $ 650 | $ 396 |
Residential real estate | 10,985 | 7,677 |
Commercial | 4,382 | 4,714 |
Construction of commercial | 123 | 128 |
Commercial real estate | 4,505 | 4,842 |
Farm land | 1,036 | 384 |
Vacant land | 3,082 | 3,097 |
Real estate secured | 19,608 | 16,000 |
Commercial and industrial | $ 486 | $ 569 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 20,094 | $ 16,569 |
Business Activities Loans - Individually evaluated Allowance | ||
Residential 1-4 family | $ 724 | 549 |
Residential 5+ multifamily | $ 3 | |
Construction of residential 1-4 family | ||
Home equity credit | $ 37 | $ 9 |
Residential real estate | 761 | 561 |
Commercial | $ 170 | $ 486 |
Construction of commercial | ||
Commercial real estate | $ 170 | $ 486 |
Farm land | 1 | |
Vacant land | 24 | $ 38 |
Real estate secured | 956 | 1,085 |
Commercial and industrial | $ 4 | $ 51 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 960 | $ 1,136 |
Business Activities Loans - Total portfolio Loans | ||
Residential 1-4 family | 260,912 | 252,258 |
Residential 5+ multifamily | 6,192 | 5,556 |
Construction of residential 1-4 family | 6,193 | 2,004 |
Home equity credit | 33,880 | 34,627 |
Residential real estate | 307,177 | 294,445 |
Commercial | 110,955 | 98,498 |
Construction of commercial | 12,987 | 18,602 |
Commercial real estate | 123,942 | 117,100 |
Farm land | 3,485 | 3,239 |
Vacant land | 9,446 | 9,342 |
Real estate secured | 444,050 | 424,126 |
Commercial and industrial | 70,858 | 49,204 |
Municipal | 6,947 | 6,083 |
Consumer | $ 5,760 | $ 4,334 |
Unallocated allowance | ||
Totals | $ 527,615 | $ 483,747 |
Business Activities Loans - Total portfolio Allowance | ||
Residential 1-4 family | 2,327 | 1,865 |
Residential 5+ multifamily | 37 | 69 |
Construction of residential 1-4 family | 52 | 13 |
Home equity credit | 382 | 359 |
Residential real estate | 2,798 | 2,306 |
Commercial | 1,107 | 1,504 |
Construction of commercial | 120 | 193 |
Commercial real estate | 1,227 | 1,697 |
Farm land | 20 | 59 |
Vacant land | 258 | 105 |
Real estate secured | 4,303 | 4,167 |
Commercial and industrial | 498 | 583 |
Municipal | 48 | 61 |
Consumer | 113 | 117 |
Unallocated allowance | 424 | 409 |
Totals | 5,386 | 5,337 |
Acquired Loans - Collectively evaluated Loans | ||
Residential 1-4 family | 7,259 | 8,661 |
Residential 5+ multifamily | $ 6,228 | $ 8,735 |
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 13,487 | $ 17,396 |
Commercial | 83,257 | 89,820 |
Construction of commercial | 4,590 | 9,045 |
Commercial real estate | $ 87,847 | $ 98,865 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 101,334 | $ 116,261 |
Commercial and industrial | $ 52,587 | $ 66,874 |
Municipal | ||
Consumer | $ 57 | $ 103 |
Unallocated allowance | ||
Totals | $ 153,978 | $ 183,238 |
Acquired Loans - Collectively evaluated Allowance | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | ||
Commercial | $ 13 | |
Construction of commercial | 3 | $ 7 |
Commercial real estate | $ 16 | $ 7 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 16 | $ 7 |
Commercial and industrial | $ 40 | $ 14 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 56 | $ 21 |
Acquired Loans - Individually evaluated Loans | ||
Residential 1-4 family | $ 767 | $ 562 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 767 | $ 562 |
Commercial | 2,920 | $ 2,502 |
Construction of commercial | 272 | |
Commercial real estate | $ 3,192 | $ 2,502 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 3,959 | $ 3,064 |
Commercial and industrial | $ 40 | |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 3,999 | $ 3,064 |
Acquired Loans - Individually evaluated Allowance | ||
Residential 1-4 family | $ 70 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 70 | |
Commercial | $ 145 | |
Construction of commercial | ||
Commercial real estate | $ 145 | |
Farm land | ||
Vacant land | ||
Real estate secured | $ 215 | |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 215 | |
Acquired Loans - ASC 310-30 Loans | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | ||
Commercial | $ 5,290 | $ 5,577 |
Construction of commercial | ||
Commercial real estate | $ 5,290 | $ 5,577 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 5,290 | $ 5,577 |
Commercial and industrial | $ 1,301 | $ 1,840 |
Municipal | ||
Consumer | $ 17 | $ 19 |
Unallocated allowance | ||
Totals | $ 6,608 | $ 7,436 |
Acquired Loans - ASC 310-30 loans Allowance | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | ||
Commercial | $ 2 | |
Construction of commercial | ||
Commercial real estate | $ 2 | |
Farm land | ||
Vacant land | ||
Real estate secured | $ 2 | |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 2 | |
Acquired Loans - Total portfolio Loans | ||
Residential 1-4 family | 8,026 | $ 9,223 |
Residential 5+ multifamily | $ 6,228 | $ 8,735 |
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 14,254 | $ 17,958 |
Commercial | 91,467 | 97,899 |
Construction of commercial | 4,862 | 9,045 |
Commercial real estate | $ 96,329 | $ 106,944 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 110,583 | $ 124,902 |
Commercial and industrial | $ 53,928 | $ 68,714 |
Municipal | ||
Consumer | $ 74 | $ 122 |
Unallocated allowance | ||
Totals | $ 164,585 | $ 193,738 |
Acquired Loans - Total portfolio Allowance | ||
Residential 1-4 family | $ 70 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity credit | ||
Residential real estate | $ 70 | |
Commercial | 160 | |
Construction of commercial | 3 | $ 7 |
Commercial real estate | $ 163 | $ 7 |
Farm land | ||
Vacant land | ||
Real estate secured | $ 233 | $ 7 |
Commercial and industrial | $ 40 | $ 14 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 273 | $ 21 |
LOANS - Credit quality segments
LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Business Activities Loans - Collectively evaluated Loans | ||
Performing loans | $ 503,052 | $ 457,744 |
Potential problem loans | $ 4,469 | $ 9,423 |
Impaired loans | ||
Unallocated allowance | ||
Totals | $ 507,521 | $ 467,167 |
Business Activities Loans - Collectively evaluated Allowance | ||
Performing loans | 3,935 | 3,283 |
Potential problem loans | $ 67 | $ 509 |
Impaired loans | ||
Unallocated allowance | $ 424 | $ 409 |
Totals | $ 4,426 | $ 4,201 |
Business Activities Loans - Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | $ 11 | |
Impaired loans | $ 20,094 | $ 16,569 |
Unallocated allowance | ||
Totals | $ 20,094 | $ 16,580 |
Business Activities Loans - Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | $ 960 | $ 1,136 |
Unallocated allowance | ||
Totals | $ 960 | $ 1,136 |
Business Activities Loans - Total portfolio Loans | ||
Performing loans | 503,052 | 457,744 |
Potential problem loans | 4,469 | 9,434 |
Impaired loans | $ 20,094 | $ 16,569 |
Unallocated allowance | ||
Totals | $ 527,615 | $ 483,747 |
Business Activities Loans - Total portfolio Allowance | ||
Performing loans | 3,935 | 3,283 |
Potential problem loans | 67 | 509 |
Impaired loans | 960 | 1,136 |
Unallocated allowance | 424 | 409 |
Totals | 5,386 | 5,337 |
Acquired Loans - Collectively evaluated Loans | ||
Performing loans | 158,144 | 187,966 |
Potential problem loans | $ 2,442 | $ 2,708 |
Impaired loans | ||
Unallocated allowance | ||
Totals | $ 160,586 | $ 190,674 |
Acquired Loans - Collectively evaluated Allowance | ||
Performing loans | 56 | $ 21 |
Potential problem loans | $ 2 | |
Impaired loans | ||
Unallocated allowance | ||
Totals | $ 58 | $ 21 |
Acquired Loans - Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | $ 3,999 | $ 3,064 |
Unallocated allowance | ||
Totals | $ 3,999 | $ 3,064 |
Acquired Loans - Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | $ 215 | |
Unallocated allowance | ||
Totals | $ 215 | |
Acquired Loans - Total portfolio Loans | ||
Performing loans | 158,144 | $ 187,966 |
Potential problem loans | 2,442 | 2,708 |
Impaired loans | $ 3,999 | $ 3,064 |
Unallocated allowance | ||
Totals | $ 164,585 | $ 193,738 |
Acquired Loans - Total portfolio Allowance | ||
Performing loans | 56 | $ 21 |
Potential problem loans | 2 | |
Impaired loans | $ 215 | |
Unallocated allowance | ||
Totals | $ 273 | $ 21 |
LOANS - Certain data with respe
LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Book | ||
Residential 1-4 family | $ 7,170 | $ 5,008 |
Home equity credit | 543 | 9 |
Residential real estate | 7,713 | 5,017 |
Commercial | $ 3,864 | $ 3,383 |
Commercial construction | ||
Farm land | $ 11 | |
Vacant land | 2,870 | $ 3,097 |
Real estate secured | 14,458 | 11,497 |
Commercial and industrial | $ 247 | $ 102 |
Consumer | ||
Totals | $ 14,705 | $ 11,599 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Note | ||
Residential 1-4 family | 7,703 | 5,157 |
Home equity credit | 557 | 24 |
Residential real estate | 8,260 | 5,181 |
Commercial | $ 4,309 | $ 3,563 |
Commercial construction | ||
Farm land | $ 13 | |
Vacant land | 3,789 | $ 3,996 |
Real estate secured | 16,371 | 12,740 |
Commercial and industrial | $ 255 | $ 161 |
Consumer | ||
Totals | $ 16,626 | $ 12,901 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Average | ||
Residential 1-4 family | 6,213 | 4,547 |
Home equity credit | 176 | 91 |
Residential real estate | 6,389 | 4,638 |
Commercial | $ 2,629 | $ 3,262 |
Commercial construction | ||
Farm land | $ 445 | |
Vacant land | 3,058 | $ 3,090 |
Real estate secured | 12,521 | 10,990 |
Commercial and industrial | $ 120 | $ 106 |
Consumer | ||
Totals | $ 12,641 | $ 11,096 |
Business Activities Loans - Impaired loans with specific allowance - Specific allowance | ||
Residential 1-4 family | 724 | 552 |
Home equity credit | 37 | 9 |
Residential real estate | 761 | 561 |
Commercial | $ 170 | $ 486 |
Commercial construction | ||
Farm land | $ 1 | |
Vacant land | 24 | $ 38 |
Real estate secured | 956 | 1,085 |
Commercial and industrial | $ 4 | $ 51 |
Consumer | ||
Totals | $ 960 | $ 1,136 |
Business Activities Loans - Impaired loans with specific allowance - Income recognized | ||
Residential 1-4 family | 109 | $ 128 |
Home equity credit | 6 | |
Residential real estate | 115 | $ 128 |
Commercial | $ 113 | $ 108 |
Commercial construction | ||
Farm land | ||
Vacant land | $ 2 | $ 12 |
Real estate secured | 230 | 248 |
Commercial and industrial | $ 8 | $ 2 |
Consumer | ||
Totals | $ 238 | $ 250 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Book | ||
Residential 1-4 family | 3,165 | 2,273 |
Home equity credit | 107 | 387 |
Residential real estate | 3,272 | 2,660 |
Commercial | 518 | 1,331 |
Commercial construction | 123 | 128 |
Farm land | 1,025 | $ 384 |
Vacant land | 212 | |
Real estate secured | 5,150 | $ 4,503 |
Commercial and industrial | $ 239 | $ 467 |
Consumer | ||
Totals | $ 5,389 | $ 4,970 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Note | ||
Residential 1-4 family | 3,314 | 2,395 |
Home equity credit | 122 | 405 |
Residential real estate | 3,436 | 2,800 |
Commercial | 548 | 1,520 |
Commercial construction | 129 | 134 |
Farm land | 1,100 | $ 384 |
Vacant land | 244 | |
Real estate secured | 5,457 | $ 4,838 |
Commercial and industrial | $ 272 | 469 |
Consumer | 19 | |
Totals | $ 5,729 | 5,307 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Average | ||
Residential 1-4 family | 3,043 | 2,703 |
Home equity credit | 611 | 441 |
Residential real estate | 3,654 | 3,144 |
Commercial | 2,130 | 1,468 |
Commercial construction | 127 | 123 |
Farm land | 270 | $ 384 |
Vacant land | 5 | |
Real estate secured | 6,186 | $ 5,119 |
Commercial and industrial | $ 464 | 516 |
Consumer | 19 | |
Totals | $ 6,650 | 5,654 |
Business Activities Loans - Impaired loans with no specific allowance - Income recognized | ||
Residential 1-4 family | 82 | 57 |
Home equity credit | 2 | 4 |
Residential real estate | 84 | 61 |
Commercial | 12 | $ 54 |
Commercial construction | 6 | |
Farm land | 15 | |
Vacant land | 7 | |
Real estate secured | 124 | $ 115 |
Commercial and industrial | $ 7 | $ 30 |
Consumer | ||
Totals | $ 131 | $ 145 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Book | ||
Residential 1-4 family | $ 590 | |
Home equity credit | ||
Residential real estate | $ 590 | |
Commercial | $ 2,146 | |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | $ 2,736 | |
Commercial and industrial | $ 40 | |
Consumer | ||
Totals | $ 2,776 | |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Note | ||
Residential 1-4 family | $ 716 | |
Home equity credit | ||
Residential real estate | $ 716 | |
Commercial | $ 2,897 | |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | $ 3,613 | |
Commercial and industrial | $ 70 | |
Consumer | ||
Totals | $ 3,683 | |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Average | ||
Residential 1-4 family | $ 176 | |
Home equity credit | ||
Residential real estate | $ 176 | |
Commercial | $ 557 | |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | $ 733 | |
Commercial and industrial | $ 4 | |
Consumer | ||
Totals | $ 737 | |
Acquired Loans - Impaired loans with specific allowance - Specific allowance | ||
Residential 1-4 family | $ 70 | |
Home equity credit | ||
Residential real estate | $ 70 | |
Commercial | $ 145 | |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | $ 215 | |
Commercial and industrial | ||
Consumer | ||
Totals | $ 215 | |
Acquired Loans - Impaired loans with specific allowance - Income recognized | ||
Residential 1-4 family | ||
Home equity credit | ||
Residential real estate | ||
Commercial | $ 61 | |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | $ 61 | |
Commercial and industrial | $ 1 | |
Consumer | ||
Totals | $ 62 | |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Book | ||
Residential 1-4 family | $ 177 | $ 562 |
Home equity credit | ||
Residential real estate | $ 177 | $ 562 |
Commercial | 774 | $ 2,502 |
Commercial construction | $ 272 | |
Farm land | ||
Vacant land | ||
Real estate secured | $ 1,223 | $ 3,064 |
Commercial and industrial | ||
Consumer | ||
Totals | $ 1,223 | $ 3,064 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Note | ||
Residential 1-4 family | $ 177 | $ 716 |
Home equity credit | ||
Residential real estate | $ 177 | $ 716 |
Commercial | 1,091 | $ 4,014 |
Commercial construction | $ 278 | |
Farm land | ||
Vacant land | ||
Real estate secured | $ 1,546 | $ 4,730 |
Commercial and industrial | $ 4 | |
Consumer | ||
Totals | $ 1,546 | $ 4,734 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Average | ||
Residential 1-4 family | $ 436 | $ 562 |
Home equity credit | ||
Residential real estate | $ 436 | $ 562 |
Commercial | 2,097 | $ 2,502 |
Commercial construction | $ 138 | |
Farm land | ||
Vacant land | ||
Real estate secured | $ 2,671 | $ 3,064 |
Commercial and industrial | ||
Consumer | ||
Totals | $ 2,671 | $ 3,064 |
Acquired Loans - Impaired loans with no specific allowance - Income recognized | ||
Residential 1-4 family | $ 4 | $ 3 |
Home equity credit | ||
Residential real estate | $ 4 | $ 3 |
Commercial | 10 | $ 12 |
Commercial construction | $ 16 | |
Farm land | ||
Vacant land | ||
Real estate secured | $ 30 | $ 15 |
Commercial and industrial | ||
Consumer | ||
Totals | $ 30 | $ 15 |
LOANS - Activity in the accreta
LOANS - Activity in the accretable yield for acquired loan portfolio falling under ASC-310-30 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Loans - Activity In Accretable Yield For Acquired Loan Portfolio Falling Under Asc-310-30 | ||||
Balance at beginning of period | $ 1,604 | $ 1,242 | ||
Acquisitions | ||||
Sales | ||||
Reclassification from nonaccretable difference for loans with improved cash flows | $ 379 | $ 1,157 | ||
Change in cash flows that do not affect nonaccretable difference | ||||
Accretion | $ (297) | $ (713) | ||
Balance at end of period | $ 1,686 | $ 1,686 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Loans Details Narrative | ||
Interest on non-accrual loans that would have been recorded as additional interest income had the loans been current in accordance with their original terms | $ 609 | $ 410 |
Loans collateralized by residential real estate property in the process of foreclosure | $ 4,300 |
MORTGAGE SERVICING RIGHTS - Bal
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 ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Residential mortgage loans serviced for others | $ 132,201 | $ 138,106 |
Fair value of mortgage servicing rights | $ 1,429 | $ 1,568 |
MORTGAGE SERVICING RIGHTS - Cha
MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - Changes in mortgage servicing rights - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Mortgage Servicing Rights | ||||
Balance, beginning of period | $ 599 | $ 838 | $ 694 | $ 980 |
Originated | 22 | (17) | 124 | 5 |
Amortization (1) | (85) | (56) | (282) | (220) |
Balance, end of period | 536 | 765 | 536 | 765 |
Valuation Allowance | ||||
Balance, beginning of period | (2) | (1) | 1 | (15) |
Decrease (increase) in impairment reserve (1) | 1 | $ 1 | (2) | $ 15 |
Balance, end of period | (1) | (1) | ||
Loan servicing rights, net | $ 535 | $ 765 | $ 535 | $ 765 |
PLEDGED ASSETS - Securities and
PLEDGED ASSETS - Securities and loans pledged (Details) - Securities and loans pledged - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Securities available-for-sale (at fair value) | $ 68,569 | $ 69,055 |
Loans receivable | 159,436 | 157,581 |
Total pledged assets | $ 228,005 | $ 226,636 |
PLEDGED ASSETS (Details Narrati
PLEDGED ASSETS (Details Narrative) $ in Thousands | Sep. 30, 2015USD ($) |
Guarantees [Abstract] | |
Securities pledged to secure public deposits | $ 60,400 |
Securities pledged to secure repurchase agreements | 8,100 |
Securities pledged to secure FHLBB advances | $ 100 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of earnings per share (Details) - Calculation of earnings per share - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 1,985 | $ 768 | $ 6,290 | $ 2,285 |
Less: Preferred stock dividends declared | (40) | (40) | (120) | (126) |
Net income available to common shareholders | 1,945 | 728 | 6,170 | 2,159 |
Less: Undistributed earnings allocated to participating securities | (17) | (8) | (54) | (26) |
Net income allocated to common stock | 1,928 | 720 | 6,116 | 2,133 |
Common shares issued | 2,731 | 1,713 | 2,728 | 1,713 |
Less: Unvested restricted stock awards | (24) | (20) | (24) | (21) |
Common shares outstanding used to calculate basic earnings per common share | 2,707 | $ 1,693 | 2,704 | $ 1,692 |
Add: Dilutive effect of stock options | 17 | 17 | ||
Common shares outstanding used to calculate diluted earnings per common share | $ 2,724 | $ 1,693 | $ 2,721 | $ 1,692 |
Earnings per common share (basic) | $ .71 | $ .43 | $ 2.26 | $ 1.26 |
Earnings per common share (diluted) | $ .71 | $ .43 | $ 2.25 | $ 1.26 |
SHAREHOLDERS' EQUITY - Actual r
SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Salisbury | |||
Total Capital (to risk-weighted assets) | |||
Actual - Amount | $ 96,366 | $ 89,783 | |
Actual - Ratio | 13.90% | 14.27% | |
For Capital Adequacy - Amount | $ 55,481 | $ 50,334 | |
For Capital Adequacy - Ratio | 8.00% | 8.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | |||
Tier 1 Capital (to risk-weighted assets) | |||
Actual - Amount | $ 90,458 | $ 84,171 | |
Actual - Ratio | 13.04% | 13.38% | |
For Capital Adequacy - Amount | $ 41,611 | $ 25,167 | |
For Capital Adequacy - Ratio | 6.00% | 4.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | |||
Common Equity Tier 1 Capital (to risk-weighted assets) | |||
Actual - Amount | $ 74,458 | ||
Actual - Ratio | 10.74% | ||
For Capital Adequacy - Amount | $ 39,473 | ||
For Capital Adequacy - Ratio | 4.50% | ||
To Be Well Capitalized - Amount | |||
To Be Well Capitalized - Ratio | |||
Tier 1 Capital (to average assets) | |||
Actual - Amount | $ 90,458 | $ 84,171 | |
Actual - Ratio | 10.31% | 12.31% | |
For Capital Adequacy - Amount | $ 35,088 | $ 27,344 | |
For Capital Adequacy - Ratio | 4.00% | 4.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | |||
Bank | |||
Total Capital (to risk-weighted assets) | |||
Actual - Amount | $ 80,492 | $ 87,507 | |
Actual - Ratio | 12.75% | 12.62% | |
For Capital Adequacy - Amount | $ 50,492 | $ 55,481 | |
For Capital Adequacy - Ratio | 8.00% | 8.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 63,116 | $ 69,352 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 10.00% | 10.00% | |
Tier 1 Capital (to risk-weighted assets) | |||
Actual - Amount | $ 74,881 | $ 81,599 | |
Actual - Ratio | 11.86% | 11.77% | |
For Capital Adequacy - Amount | $ 25,246 | $ 41,611 | |
For Capital Adequacy - Ratio | 4.00% | 6.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 37,869 | $ 55,481 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 8.00% | |
Common Equity Tier 1 Capital (to risk-weighted assets) | |||
Actual - Amount | $ 81,599 | ||
Actual - Ratio | 11.77% | ||
For Capital Adequacy - Amount | $ 39,473 | ||
For Capital Adequacy - Ratio | 4.50% | ||
To Be Well Capitalized - Amount | $ 57,017 | ||
To Be Well Capitalized - Ratio | 6.50% | ||
Tier 1 Capital (to average assets) | |||
Actual - Amount | $ 74,881 | $ 81,599 | |
Actual - Ratio | 10.95% | 9.30% | |
For Capital Adequacy - Amount | $ 27,345 | $ 35,088 | |
For Capital Adequacy - Ratio | 4.00% | 4.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 34,181 | $ 43,859 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) - Shareholders' Equity Details - USD ($) $ in Thousands | 9 Months Ended | 15 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Aug. 31, 2011 | |
Series B Preferred Stock issued to Treasury under SBLF program | $ 16,000 | |||
Dividend rate on Series B Preferred Stock | 9.00% | 1.00% | 1.00% |
PENSIONS AND OTHER BENEFITS - C
PENSIONS AND OTHER BENEFITS - Components of net periodic cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2014 | Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Interest cost on benefit obligation | $ 69 | $ 207 |
Expected return on plan assets | (74) | (222) |
Net periodic benefit cost | $ (5) | $ (15) |
PENSIONS AND OTHER BENEFITS (De
PENSIONS AND OTHER BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 28, 2015 | Feb. 25, 2015 | Feb. 17, 2015 | Dec. 05, 2014 | Jan. 03, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||||||||
401(k) Plan contribution expense | $ 166 | $ 159 | $ 516 | $ 495 | |||||
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements | 14 | 13 | 53 | 40 | |||||
Employee Stock Ownership Plan (ESOP) | |||||||||
ESOP expense | 96 | 47 | 287 | 141 | |||||
Other Retirement Plans | |||||||||
Discretionary contribution to Executives' account | 34 | 15 | 95 | 44 | |||||
Grants of Restricted Stock and Options | |||||||||
Stock options exercised by two former Riverside Bank executives, shares | 2,700 | 5,400 | 1,350 | ||||||
Stock options exercised by two former Riverside Bank executives, price per share | $ 21.48 | $ 18.52 | $ 18.52 | ||||||
Shares of restricted stock granted pursuant to 2011 Long Term Incentive Plan | 6,000 | 3,000 | |||||||
Expense related to grants of restricted stock and options | 52 | $ 43 | 167 | 112 | |||||
Unrecognized compensation cost relating to awards | $ 186 | $ 186 | $ 254 | ||||||
Forfeiture of restricted common stock, shares | (300) | (2,000) |
ACCUMULATED OTHER COMPREHENSI51
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of accumulated other comprehensive income (Details) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Unrealized gains on securities available-for-sale, net of tax | $ 1,443 | $ 2,108 |
Accumulated other comprehensive income, net | $ 1,443 | $ 2,108 |
FAIR VALUE OF ASSETS AND LIAB52
FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Measurements Using - Level 1 | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury notes | ||
U.S. Government agency notes | ||
Municipal bonds | ||
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | ||
Collateralized mortgage obligations: U.S. Government agencies | ||
Collateralized mortgage obligations: Non-agency | ||
SBA bonds | ||
CRA mutual funds | ||
Preferred stock | $ 375 | $ 327 |
Securities available-for-sale | $ 375 | $ 327 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | ||
Other real estate owned | ||
Fair Value Measurements Using - Level 2 | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury notes | $ 7,565 | $ 2,806 |
U.S. Government agency notes | 500 | 5,874 |
Municipal bonds | 33,317 | 40,352 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 27,006 | 27,709 |
Collateralized mortgage obligations: U.S. Government agencies | 2,157 | 2,679 |
Collateralized mortgage obligations: Non-agency | 5,332 | 6,596 |
SBA bonds | 3,350 | 4,465 |
CRA mutual funds | $ 769 | $ 504 |
Preferred stock | ||
Securities available-for-sale | $ 79,996 | $ 90,985 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | ||
Other real estate owned | ||
Fair Value Measurements Using - Level 3 | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury notes | ||
U.S. Government agency notes | ||
Municipal bonds | ||
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | ||
Collateralized mortgage obligations: U.S. Government agencies | ||
Collateralized mortgage obligations: Non-agency | ||
SBA bonds | ||
CRA mutual funds | ||
Preferred stock | ||
Securities available-for-sale | ||
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | $ 16,305 | $ 10,463 |
Other real estate owned | 167 | 1,002 |
Assets at fair value | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury notes | 7,565 | 2,806 |
U.S. Government agency notes | 500 | 5,874 |
Municipal bonds | 33,317 | 40,352 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 27,006 | 27,709 |
Collateralized mortgage obligations: U.S. Government agencies | 2,157 | 2,679 |
Collateralized mortgage obligations: Non-agency | 5,332 | 6,596 |
SBA bonds | 3,350 | 4,465 |
CRA mutual funds | 769 | 504 |
Preferred stock | 375 | 327 |
Securities available-for-sale | 80,371 | 91,312 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | 16,305 | 10,463 |
Other real estate owned | $ 167 | $ 1,002 |
FAIR VALUE OF ASSETS AND LIAB53
FAIR VALUE OF ASSETS AND LIABILITIES - Carrying value and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying value | ||
Financial Assets | ||
Cash and cash equivalents | $ 81,695 | $ 36,105 |
Securities available-for-sale | 80,371 | 91,312 |
Federal Home Loan Bank stock | 3,515 | 3,515 |
Loans held-for-sale | 573 | 568 |
Loans receivable, net | 687,719 | 673,330 |
Accrued interest receivable | 2,296 | 2,334 |
Cash surrender value of life insurance | 13,591 | 13,314 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 194,618 | 161,386 |
Demand (interest-bearing) | 129,779 | 117,169 |
Money market | 184,409 | 174,274 |
Savings and other | 123,017 | 121,387 |
Certificates of deposit | 129,656 | 141,210 |
Deposits | 761,479 | 715,426 |
Repurchase agreements | 4,210 | 4,163 |
FHLBB advances | 26,928 | 28,813 |
Note payable | 380 | |
Capital lease liability | 422 | 424 |
Accrued interest payable | 121 | 166 |
Estimated fair value | ||
Financial Assets | ||
Cash and cash equivalents | 81,695 | 36,105 |
Securities available-for-sale | 80,371 | 91,312 |
Federal Home Loan Bank stock | 3,515 | 3,515 |
Loans held-for-sale | 584 | 572 |
Loans receivable, net | 695,147 | 683,845 |
Accrued interest receivable | 2,296 | 2,334 |
Cash surrender value of life insurance | 13,591 | 13,314 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 194,618 | 161,386 |
Demand (interest-bearing) | 129,779 | 117,169 |
Money market | 184,409 | 174,274 |
Savings and other | 123,017 | 121,387 |
Certificates of deposit | 130,765 | 142,261 |
Deposits | 762,588 | 716,477 |
Repurchase agreements | 4,210 | 4,163 |
FHLBB advances | 28,988 | 30,626 |
Note payable | 409 | |
Capital lease liability | 898 | 929 |
Accrued interest payable | 121 | 166 |
Fair Value Measurements Using - Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 81,695 | 36,105 |
Securities available-for-sale | $ 375 | $ 327 |
Federal Home Loan Bank stock | ||
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance | $ 13,591 | $ 13,314 |
Financial Liabilities | ||
Demand (non-interest-bearing) | ||
Demand (interest-bearing) | ||
Money market | ||
Savings and other | ||
Certificates of deposit | ||
Deposits | ||
Repurchase agreements | ||
FHLBB advances | ||
Note payable | ||
Capital lease liability | ||
Accrued interest payable | ||
Fair Value Measurements Using - Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | ||
Securities available-for-sale | $ 79,996 | $ 90,985 |
Federal Home Loan Bank stock | $ 3,515 | $ 3,515 |
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | ||
Demand (interest-bearing) | ||
Money market | ||
Savings and other | ||
Certificates of deposit | ||
Deposits | ||
Repurchase agreements | ||
FHLBB advances | ||
Note payable | ||
Capital lease liability | ||
Accrued interest payable | ||
Fair Value Measurements Using - Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | ||
Securities available-for-sale | ||
Federal Home Loan Bank stock | ||
Loans held-for-sale | $ 584 | $ 572 |
Loans receivable, net | 695,147 | 683,845 |
Accrued interest receivable | $ 2,296 | $ 2,334 |
Cash surrender value of life insurance | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | $ 194,618 | $ 161,386 |
Demand (interest-bearing) | 129,779 | 117,169 |
Money market | 184,409 | 174,274 |
Savings and other | 123,017 | 121,387 |
Certificates of deposit | 130,765 | 142,261 |
Deposits | 762,588 | 716,477 |
Repurchase agreements | 4,210 | 4,163 |
FHLBB advances | 28,988 | 30,626 |
Note payable | 409 | |
Capital lease liability | 898 | 929 |
Accrued interest payable | $ 121 | $ 166 |