Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 14, 2016 | |
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, 2016 | |
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 | 2,758,086 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and due from banks | $ 13,004 | $ 14,891 | |
Interest bearing demand deposits with other banks | 29,634 | 47,227 | |
Total cash and cash equivalents | 42,638 | 62,118 | |
Securities | |||
Available-for-sale at fair value | 76,801 | 76,694 | |
Federal Home Loan Bank of Boston stock at cost | 2,937 | 3,176 | |
Loans held-for-sale | 837 | 763 | |
Loans receivable, net (allowance for loan losses: $5,892 and $5,716) | 753,623 | 699,018 | |
Other real estate owned | 2,823 | ||
Bank premises and equipment, net | 14,573 | 14,307 | |
Goodwill | 12,552 | 12,552 | |
Intangible assets (net of accumulated amortization: $3,364 and $2,909) | 1,883 | 2,338 | |
Accrued interest receivable | 2,260 | 2,307 | |
Cash surrender value of life insurance policies | 13,952 | 13,685 | |
Deferred taxes | 2,114 | 1,989 | |
Other assets | 1,452 | 2,245 | |
Total Assets | 928,445 | 891,192 | |
Deposits | |||
Demand (non-interest bearing) | 210,396 | 201,340 | |
Demand (interest bearing) | 126,064 | 125,465 | |
Money market | 201,504 | 183,783 | |
Savings and other | 127,595 | 119,651 | |
Certificates of deposit | 121,171 | 124,294 | |
Total deposits | 786,730 | 754,533 | |
Repurchase agreements | 3,581 | 3,914 | |
Federal Home Loan Bank of Boston advances | 27,134 | 26,979 | |
Subordinated debt | [1] | 9,782 | 9,764 |
Note payable | 351 | 376 | |
Capital lease liability | 419 | 422 | |
Accrued interest and other liabilities | 6,894 | 4,630 | |
Total Liabilities | 834,891 | 800,618 | |
Shareholders' Equity | |||
Common stock - $.10 per share par value; Authorized: 5,000,000; Outstanding: 2,758,086 and 2,733,576 | 276 | 273 | |
Paid-in capital | 42,053 | 41,364 | |
Retained earnings | 50,773 | 47,922 | |
Unearned compensation - restricted stock awards | (431) | (110) | |
Accumulated other comprehensive income | 883 | 1,125 | |
Total Shareholders' Equity | 93,554 | 90,574 | |
Total Liabilities and Shareholders' Equity | $ 928,445 | $ 891,192 | |
[1] | (1) Net of issuance costs, which are capitalized and amortized as a component of interest expense over a period of 10 years. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Allowance for loan losses, loans receivable | $ 5,892 | $ 5,716 |
Accumulated amortization, intangible assets | $ 3,364 | $ 2,909 |
Shareholders' Equity | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 5,000,000 | 5,000,000 |
Common stock, issued | 2,758,086 | 2,733,576 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 8,061 | $ 7,955 | $ 23,915 | $ 23,727 |
Interest on debt securities | ||||
Taxable | 341 | 286 | 976 | 910 |
Tax exempt | 202 | 351 | 725 | 1,098 |
Other interest and dividends | 60 | 58 | 138 | 132 |
Total interest and dividend income | 8,664 | 8,650 | 25,754 | 25,867 |
Interest expense | ||||
Deposits | 565 | 463 | 1,603 | 1,359 |
Repurchase agreements | 2 | 2 | 4 | 5 |
Capital lease | 17 | 18 | 52 | 53 |
Note payable | 5 | 1 | 16 | 1 |
Subordinated debt | 156 | 468 | ||
Federal Home Loan Bank of Boston advances | 237 | 269 | 714 | 832 |
Total interest expense | 982 | 753 | 2,857 | 2,250 |
Net interest and dividend income | 7,682 | 7,897 | 22,897 | 23,617 |
Provision for loan losses | 344 | 655 | 1,332 | 651 |
Net interest and dividend income after provision for loan losses | 7,338 | 7,242 | 21,565 | 22,966 |
Non-interest income | ||||
Trust and wealth advisory | 849 | 798 | 2,517 | 2,510 |
Service charges and fees | 840 | 798 | 2,355 | 2,307 |
Gains on sales of mortgage loans, net | 55 | 47 | 152 | 227 |
Mortgage servicing, net | 28 | 5 | 61 | (15) |
Gains on sales and calls of available-for-sale securities, net | 10 | 6 | 157 | 192 |
Other | 113 | 115 | 342 | 343 |
Total non-interest income | 1,895 | 1,769 | 5,584 | 5,564 |
Non-interest expense | ||||
Salaries | 2,757 | 2,531 | 8,017 | 7,520 |
Employee benefits | 924 | 916 | 2,923 | 2,881 |
Premises and equipment | 809 | 863 | 2,546 | 2,683 |
Data processing | 472 | 404 | 1,369 | 1,276 |
Professional fees | 459 | 398 | 1,403 | 1,642 |
Collections, OREO and loan related | 109 | 125 | 420 | 594 |
FDIC insurance | 164 | 163 | 474 | 494 |
Marketing and community support | 144 | 174 | 524 | 465 |
Amortization of core deposit intangibles | 148 | 161 | 455 | 494 |
Other | 513 | 467 | 1,844 | 1,528 |
Total non-interest expense | 6,499 | 6,202 | 19,975 | 19,577 |
Income before income taxes | 2,734 | 2,809 | 7,174 | 8,953 |
Income tax provision | 812 | 824 | 2,009 | 2,663 |
Net income | 1,922 | 1,985 | 5,165 | 6,290 |
Net income applicable to common shareholders | $ 1,907 | $ 1,928 | $ 5,124 | $ 6,116 |
Basic earnings per common share | $ .70 | $ .71 | $ 1.88 | $ 2.26 |
Weighted average common shares outstanding, to calculate basic earnings per share | 2,737 | 2,707 | 2,732 | 2,704 |
Diluted earnings per common share | $ .69 | $ .71 | $ 1.87 | $ 2.25 |
Weighted average common shares outstanding, to calculate diluted earnings per share | 2,751 | 2,724 | 2,747 | 2,721 |
Common dividends per share | $ .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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Net income | $ 1,922 | $ 1,985 | $ 5,165 | $ 6,290 | |
Other comprehensive (loss) income | |||||
Net unrealized (losses) gains on securities available-for-sale | (331) | 116 | (211) | (816) | |
Reclassification of net realized gains in net income | [1] | (10) | (6) | (157) | (192) |
Unrealized (losses) gains on securities available-for-sale | (341) | 110 | (368) | (1,008) | |
Income tax benefit (expense) | 116 | (37) | 126 | 343 | |
Unrealized (losses) gains on securities available-for-sale, net of tax | (225) | 73 | (242) | (665) | |
Comprehensive income | $ 1,697 | $ 2,058 | $ 4,923 | $ 5,625 | |
[1] | (1) Reclassification adjustments include realized security gains and losses. The gains and losses have been reclassified out of other comprehensive loss and have affected certain lines in the consolidated statements of income as follows: The pre-tax amount is reflected as gains on sales and calls of available-for-sale securities, net, the tax effect is included in the income tax provision and the after tax amount is included in net income. |
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, 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 | 6,290 | 6,290 | |||||
Other comprehensive loss, net of tax | (665) | (665) | |||||
Common stock dividends declared | (2,289) | (2,289) | |||||
Preferred stock dividends declared | (120) | (120) | |||||
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 | ||||||
Forfeiture of restricted common stock, amount | (7) | 7 | |||||
Forfeiture of restricted common stock, shares | (300) | ||||||
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 | ||||||
Balance - Beginning, amount at Dec. 31, 2015 | $ 273 | 41,364 | 47,922 | (110) | 1,125 | 90,574 | |
Balance - Beginning, shares at Dec. 31, 2015 | 2,733,576 | ||||||
Net income | 5,165 | 5,165 | |||||
Other comprehensive loss, net of tax | (242) | (242) | |||||
Common stock dividends declared | (2,314) | (2,314) | |||||
Stock options exercised, amount | 87 | 87 | |||||
Stock options exercised, shares | 4,050 | ||||||
Issuance of restricted stock awards, amount | $ 2 | 464 | (466) | ||||
Issuance of restricted stock awards, shares | 15,800 | ||||||
Forfeiture of restricted common stock, amount | (3) | 3 | |||||
Forfeiture of restricted common stock, shares | (100) | ||||||
Issuance of common stock for directors, amount | $ 1 | 141 | 142 | ||||
Issuance of common stock for directors, shares | 4,760 | ||||||
Stock based compensation - restricted stock awards | 142 | 142 | |||||
Balance - Ending, amount at Sep. 30, 2016 | $ 276 | $ 42,053 | $ 50,773 | $ (431) | $ 883 | $ 93,554 | |
Balance - Ending, shares at Sep. 30, 2016 | 2,758,086 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net income | $ 5,165 | $ 6,290 |
(Accretion), amortization and depreciation: | ||
Securities | 204 | 178 |
Bank premises and equipment | 889 | 917 |
Core deposit intangible | 455 | 494 |
Mortgage servicing rights | 182 | 282 |
Fair value adjustment on loans | (1,429) | (2,031) |
Fair value adjustment on deposits | (97) | (355) |
(Gains) and losses, including write-downs | ||
Gains on calls of securities available-for-sale, net | (1) | (40) |
Gains on sales of securities, available-for-sale, net | (156) | (152) |
Gains on sales of loans, excluding capitalized servicing rights | (152) | (102) |
Write-downs of other real estate owned | 238 | |
Loss on sale/disposals of premises and equipment | 13 | 45 |
Provision for loan losses | 1,332 | 651 |
Proceeds from loans sold | 6,814 | 4,897 |
Loans originated for sale | (6,736) | (4,800) |
(Increase) decrease in deferred loan origination costs, net | (91) | 25 |
Mortgage servicing rights originated | (71) | (125) |
Increase in mortgage servicing rights impairment reserve | 13 | 3 |
Decrease in interest receivable | 47 | 38 |
Deferred tax benefit | (17) | |
Decrease (increase) in prepaid expenses | 18 | (409) |
Increase in cash surrender value of life insurance policies | (267) | (277) |
Decrease in income tax receivable | 433 | |
Increase in income tax payable | 271 | |
Increase (decrease) in other assets | 218 | (87) |
Increase (decrease) in accrued expenses | 1,079 | (11) |
Modification fees on Federal Home Loan Bank advances | 173 | |
Amortization of debt issuance costs | 18 | |
Decrease in interest payable | (125) | (45) |
Increase in other liabilities | 1,310 | 369 |
Stock based compensation - restricted stock awards | 142 | 120 |
Net cash provided by operating activities | 9,380 | 6,367 |
Investing Activities | ||
Purchase of Federal Home Loan Bank of Boston stock | (319) | |
Redemption of Federal Home Loan Bank of Boston stock | 558 | |
Purchases of securities available-for-sale | (45,317) | (9,322) |
Proceeds from sales of securities available-for-sale | 3,860 | 3,861 |
Proceeds from calls of securities available-for-sale | 11,811 | 7,995 |
Proceeds from maturities of securities available-for-sale | 29,125 | 7,413 |
Loan originations and principle collections, net | (57,351) | (13,748) |
Recoveries of loans previously charged off | 111 | 613 |
Proceeds from sales of other real estate owned | 698 | |
Capital expenditures | (1,168) | (739) |
Net cash used in investing activities | (58,690) | (3,229) |
Financing Activities | ||
Increase in deposit transaction accounts, net | 35,320 | 57,607 |
Decrease in time deposits, net | (3,026) | (11,199) |
(Decrease) increase in securities sold under agreements to repurchase, net | (333) | 47 |
Principal payments on Federal Home Loan Bank of Boston advances | (18) | (786) |
Modification payment on Federal Home Loan Bank of Boston advances | (1,099) | |
Principal payments on note payable | (25) | |
Decrease in capital lease obligation | (3) | (2) |
Stock options exercised | 87 | 183 |
Issuance of shares for director fees | 142 | 81 |
Issuance of shares for executives | 29 | |
Common stock dividends paid | (2,314) | (2,289) |
Series B preferred stock dividends paid | (120) | |
Net cash provided by financing activities | 29,830 | 42,452 |
Net (decrease) increase in cash and cash equivalents | (19,480) | 45,590 |
Cash and cash equivalents, beginning of period | 62,118 | 36,105 |
Cash and cash equivalents, end of period | 42,638 | 81,695 |
Cash paid during year | ||
Interest | 2,714 | 2,650 |
Income taxes | 842 | 2,409 |
Non-cash investing and financing activities | ||
Transfer from loans to other real estate owned | 2,823 | 101 |
Note payable to fund building purchase | $ 380 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | S alisbury Bancorp, Inc. and Subsidiary NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 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 consolidated financial position of Salisbury and the consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for the interim periods presented. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (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 and impairment of goodwill and intangibles. 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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2015 Annual Report on Form 10-K for the year ended December 31, 2015. 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 January 2016, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – overall (subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). . In March 2016, the FASB issued ASU No. 2016-09, Compensation–Stock Compensation (Topic 718): "Improvements to Employee Share-Based Payment Accounting.” In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after December 15, 2019. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Salisbury is currently evaluating the provisions of ASU No. 2016-13 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, “ " |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized cost (1) Gross un- realized gains Gross un- realized losses Fair Value September 30, 2016 Available-for-sale Municipal bonds $ 18,252 $ 352 $ — $ 18,604 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 47,881 372 (77 ) 48,176 Collateralized mortgage obligations U.S. Government agencies 1,596 8 — 1,604 Non-agency 3,619 418 (5 ) 4,032 SBA bonds 2,268 18 — 2,286 CRA mutual funds 828 10 — 838 Corporate bonds 1,000 20 — 1,020 Preferred stock 20 221 — 241 Total securities available-for-sale $ 75,464 $ 1,419 $ (82 ) $ 76,801 Non-marketable securities Federal Home Loan Bank of Boston stock $ 2,937 $ — $ — $ 2,937 (in thousands) Amortized cost (1) Gross un- realized gains Gross un- realized losses Fair Value December 31, 2015 Available-for-sale U.S. Treasury notes $ 2,499 $ 42 $ — $ 2,541 U.S. Government agency notes 498 — — 498 Municipal bonds 29,752 633 — 30,385 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 31,900 385 (83 ) 32,202 Collateralized mortgage obligations U.S. Government agencies 2,002 12 — 2,014 Non-agency 4,487 468 (7 ) 4,948 SBA bonds 3,065 31 — 3,096 CRA mutual funds 766 — (2 ) 764 Preferred stock 20 226 — 246 Total securities available-for-sale $ 74,989 $ 1,797 $ (92 ) $ 76,694 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,176 $ — $ — $ 3,176 (1) Net of other-than-temporary impairment write-downs recognized in earnings. Salisbury sold $3.6 million in securities available-for-sale during the nine month period ended September 30, 2016, and sold $3.7 million in securities available-for-sale during the nine month period ended September 30, 2015. The following table summarizes, for all securities in an unrealized loss position, including debt securities for which a portion of other-than-temporary impairment (OTTI) has been recognized, 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, 2016 Available-for-sale Mortgage-backed securities $ 27,770 $ (71 ) $ 310 $ (6 ) $ 28,080 $ (77 ) Collateralized mortgage obligations: Non-agency 203 (1 ) 175 (4 ) 378 (5 ) Total temporarily impaired securities $ 27,973 $ (72 ) $ 485 $ (10 ) $ 28,458 $ (82 ) (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses December 31, 2015 Available-for-sale Mortgage-backed securities $ 14,750 $ (83 ) $ 53 $ — $ 14,803 $ (83 ) Collateralized mortgage obligations: Non-agency 237 — 226 (7 ) 463 (7 ) CRA mutual funds 764 (2 ) — — 764 (2 ) Total temporarily impaired securities $ 15,751 $ (85 ) $ 279 $ (7 ) $ 16,030 $ (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, 2016. 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 maturity, and does not intend to sell these securities. Therefore, management does not consider these securities to be OTTI at September 30, 2016. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at September 30, 2016, 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, 2016. 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) 2016 2015 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, 2016. 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, 2016 | |
Receivables [Abstract] | |
LOANS | NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: September 30, 2016 December 31, 2015 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 286,663 $ 7,022 $ 293,685 $ 261,495 $ 7,799 $ 269,294 Residential 5+ multifamily 7,690 5,864 13,554 6,411 6,136 12,547 Construction of residential 1-4 family 9,824 — 9,824 7,998 — 7,998 Home equity lines of credit 35,470 — 35,470 35,017 — 35,017 Residential real estate 339,647 12,886 352,533 310,921 13,935 324,856 Commercial 162,602 81,741 244,343 129,446 88,829 218,275 Construction of commercial 4,066 2,139 6,205 6,525 4,874 11,399 Commercial real estate 166,668 83,880 250,548 135,971 93,703 229,674 Farm land 4,033 — 4,033 3,193 — 3,193 Vacant land 5,830 — 5,830 8,563 — 8,563 Real estate secured 516,178 96,766 612,944 458,648 107,638 566,286 Commercial and industrial 101,146 30,009 131,155 74,657 46,764 121,421 Municipal 8,475 — 8,475 9,566 — 9,566 Consumer 5,593 68 5,661 6,195 77 6,272 Loans receivable, gross 631,392 126,843 758,235 549,066 154,479 703,545 Deferred loan origination costs, net 1,280 — 1,280 1,189 — 1,189 Allowance for loan losses (5,613 ) (279 ) (5,892 ) (5,481 ) (235 ) (5,716 ) Loans receivable, net $ 627,059 $ 126,564 $ 753,623 $ 544,774 $ 154,244 $ 699,018 Loans held-for-sale Residential 1-4 family $ 837 $ — $ 837 $ 763 $ — $ 763 Concentrations of Credit Risk Salisbury's loans consist primarily of residential and commercial real estate loans located principally in northwestern Connecticut, New York and Massachusetts towns, which constitute Salisbury's service area. Salisbury offers a broad range of loan and credit facilities to borrowers in its service area, including residential mortgage loans, commercial real estate loans, construction loans, working capital loans, equipment loans, and a variety of consumer loans, including home equity lines of credit, and installment and collateral loans. All residential and commercial mortgage loans are collateralized by first or second mortgages on real estate. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy as well as the health of the real estate economic sector in Salisbury’s market area. Loan Credit Quality The composition of loans receivable by risk rating grade is as follows: Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2016 Residential 1-4 family $ 276,508 $ 6,111 $ 3,955 $ 89 $ — $ 286,663 Residential 5+ multifamily 5,611 1,912 167 — — 7,690 Construction of residential 1-4 family 9,824 — — — — 9,824 Home equity lines of credit 34,102 528 840 — — 35,470 Residential real estate 326,045 8,551 4,962 89 — 339,647 Commercial 152,026 3,541 7,035 — — 162,602 Construction of commercial 3,949 — 117 — — 4,066 Commercial real estate 155,975 3,541 7,152 — — 166,668 Farm land 3,025 — 1,008 — — 4,033 Vacant land 5,739 63 28 — — 5,830 Real estate secured 490,784 12,155 13,150 89 — 516,178 Commercial and industrial 98,795 1,716 635 — — 101,146 Municipal 8,475 — — — — 8,475 Consumer 5,566 27 — — — 5,593 Loans receivable, gross $ 603,620 $ 13,898 $ 13,785 $ 89 $ — $ 631,392 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2016 Residential 1-4 family $ 6,133 $ 110 $ 779 $ — $ — $ 7,022 Residential 5+ multifamily 5,741 — 123 — — 5,864 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 11,874 110 902 — — 12,886 Commercial 72,288 4,082 5,371 — — 81,741 Construction of commercial 1,881 — 258 — — 2,139 Commercial real estate 74,169 4,082 5,629 — — 83,880 Farm land — — — — — — Vacant land — — — — — — Real estate secured 86,043 4,192 6,531 — — 96,766 Commercial and industrial 28,566 1,238 205 — — 30,009 Municipal — — — — — — Consumer 65 3 — — — 68 Loans receivable, gross $ 114,674 $ 5,433 $ 6,736 $ — $ — $ 126,843 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2015 Residential 1-4 family $ 248,027 $ 6,933 $ 6,444 $ 91 $ — $ 261,495 Residential 5+ multifamily 4,507 1,815 89 — — 6,411 Construction of residential 1-4 family 7,111 887 — — — 7,998 Home equity lines of credit 33,687 545 785 — — 35,017 Residential real estate 293,332 10,180 7,318 91 — 310,921 Commercial 120,903 4,801 3,742 — — 129,446 Construction of commercial 6,525 — — — — 6,525 Commercial real estate 127,428 4,801 3,742 — — 135,971 Farm land 2,162 — 1,031 — — 3,193 Vacant land 5,567 69 2,927 — — 8,563 Real estate secured 428,489 15,050 15,018 91 — 458,648 Commercial and industrial 72,887 1,214 555 1 — 74,657 Municipal 9,566 — — — — 9,566 Consumer 6,171 18 6 — — 6,195 Loans receivable, gross $ 517,113 $ 16,282 $ 15,579 $ 92 $ — $ 549,066 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2015 Residential 1-4 family $ 6,824 $ 199 $ 776 $ — $ — $ 7,799 Residential 5+ multifamily 6,136 — — — — 6,136 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 12,960 199 776 — — 13,935 Commercial 80,406 4,005 4,418 — — 88,829 Construction of commercial 4,612 — 262 — — 4,874 Commercial real estate 85,018 4,005 4,680 — — 93,703 Farm land — — — — — — Vacant land — — — — — — Real estate secured 97,978 4,204 5,456 — — 107,638 Commercial and industrial 45,363 875 443 83 — 46,764 Municipal — — — — — — Consumer 71 6 — — — 77 Loans receivable, gross $ 143,412 $ 5,085 $ 5,899 $ 83 $ — $ 154,479 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, 2016 Residential 1-4 family $ 281,558 $ 1,892 $ 313 $ 679 $ 74 $ 2,147 $ 3,213 $ — $ 3,017 Residential 5+ multifamily 7,690 — — — — — — — 167 Construction of residential 1-4 family 9,824 — — — — — — — — Home equity lines of credit 34,949 69 151 90 54 157 452 — 681 Residential real estate 334,021 1,961 464 769 128 2,304 3,665 — 3,865 Commercial 158,272 1,251 1,917 252 — 910 3,079 — 2,993 Construction of commercial 4,066 — — — — — — — — Commercial real estate 162,338 1,251 1,917 252 — 910 3,079 — 2,993 Farm land 2,514 795 — — — 724 724 — 1,009 Vacant land 5,784 46 — — — — — — 28 Real estate secured 504,657 4,053 2,381 1,021 128 3,938 7,468 — 7,895 Commercial and industrial 99,230 1,105 627 161 — 23 811 — 23 Municipal 8,475 — — — — — — — — Consumer 5,555 19 9 10 — — 19 — — Loans receivable, gross $ 617,917 $ 5,177 $ 3,017 $ 1,192 $ 128 $ 3,961 $ 8,298 $ — $ 7,918 Acquired Loans September 30, 2016 Residential 1-4 family $ 5,961 $ 282 $ — $ — $ — $ 779 $ 779 $ — $ 779 Residential 5+ multifamily 5,299 — 442 — — 123 565 — 123 Construction of residential 1-4 family — — — — — — — — — Home equity credit lines of credit — — — — — — — — — Residential real estate 11,260 282 442 — — 902 1344 — 902 Commercial 74,978 2,695 1,503 — 974 1,591 4,068 365 2,199 Construction of commercial 1,881 — — — — 258 258 — 258 Commercial real estate 76,859 2,695 1,503 — 974 1,849 4,326 365 2,457 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 88,119 2,977 1,945 — 974 2,751 5,670 365 3,359 Commercial and industrial 27,711 622 543 1,103 30 — 1,676 30 — Municipal — — — — — — — — — Consumer 68 — — — — — — — — Loans receivable, gross $ 115,898 $ 3,599 $ 2,488 $ 1,103 $ 1,004 $ 2,751 $ 7,346 $ 395 $ 3,359 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 30, 2015 Residential 1-4 family $ 254,152 $ 1,781 $ 1,931 $ 683 $ 973 $ 1,975 $ 5,562 $ — $ 5,671 Residential 5+ multifamily 6,254 — 68 — — 89 157 — 89 Construction of residential 1-4 family 7,826 172 — — — — — — — Home equity lines of credit 33,744 363 306 101 113 390 910 — 601 Residential real estate 301,976 2,316 2,305 784 1,086 2,454 6,629 — 6,361 Commercial 126,440 1,618 474 — 233 681 1,388 — 2,349 Construction of commercial 6,525 — — — — — — — — Commercial real estate 132,965 1,618 474 — 233 681 1,388 — 2,349 Farm land 2,172 298 — — — 723 723 — 1,031 Vacant land 5,734 — 6 — — 2,823 2,829 — 2,855 Real estate secured 442,847 4,232 2,785 784 1,319 6,681 11,569 — 12,596 Commercial and industrial 73,698 906 35 — — 18 53 — 461 Municipal 9,566 — — — — — — — — Consumer 6,096 61 21 17 — — 38 — 80 Loans receivable, gross $ 532,207 $ 5,199 $ 2,841 $ 801 $ 1,319 $ 6,699 $ 11,660 $ — $ 13,137 Acquired Loans December 30, 2015 Residential 1-4 family $ 6,823 $ — $ — $ 110 $ — $ 866 $ 976 $ 90 $ 776 Residential 5+ multifamily 6,136 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 12,959 — — 110 — 866 976 90 776 Commercial 81,140 4,848 916 — — 1,925 2,841 — 2,000 Construction of commercial 4,612 — — — — 262 262 — 262 Commercial real estate 85,752 4,848 916 — — 2,187 3,103 — 2,262 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 98,711 4,848 916 110 — 3,053 4,079 90 3,038 Commercial and industrial 46,128 471 83 82 — — 165 — — Municipal — — — — — — — — — Consumer 77 — — — — — — — — Loans receivable, gross $ 144,916 $ 5,319 $ 999 $ 192 $ — $ 3,053 $ 4,244 $ 90 $ 3,038 Interest on non-accrual loans that would have been recorded as additional interest income for the nine months ended September 30, 2016 and 2015 had the loans been current in accordance with their original terms totaled $666,000 and $609,000, respectively. Troubled Debt Restructurings Troubled debt restructurings occurring during the periods are as follows: Business Activities Loans Nine months ended September 30, 2016 September 30, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 4 $ 683 $ 683 2 $ 923 $ 923 Commercial real estate 2 2,123 2,123 1 294 294 Home equity lines of credit — — — 1 35 35 Troubled debt restructurings 6 $ 2,806 $ 2,806 4 1,252 1,252 Rate reduction and term extension 1 $ 174 $ 174 1 $ 294 $ 294 Interest only and term extension — — — — — — Debt consolidation 1 1,863 1,863 — — — Debt consolidation and term extension 1 260 260 — — — Note bifurcation — — — 1 48 48 Term extension 3 509 509 2 910 910 Troubled debt restructurings 6 $ 2,806 $ 2,806 4 1,252 1,252 Acquired Loans Nine months ended September 30, 2016 September 30, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 1 $ 88 $ 88 — $ — $ — Commercial real estate — — — 1 184 184 Home equity lines of credit — — — — — — Troubled debt restructurings 1 $ 88 $ 88 1 $ 184 $ 184 Rate reduction and term extension 1 $ 88 $ 88 1 $ 184 $ 184 Interest only and term extension — — — — — — Interest only — — — — — — Debt consolidation and term extension — — — — — — Term extension — — — — — — Troubled debt restructurings 1 $ 88 $ 88 1 $ 184 $ 184 Seven loans were modified in troubled debt restructurings during 2016, one of which was past due at September 30, 2016. As of September 30, 2016, there were no commitments to lend additional amounts on troubled debt restructurings. As of September 30, 2016, the Bank had $2,793,000 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, 2016 Three months ended September 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,248 $ 224 $ (155 ) $ 8 $ 2,325 $ 69 $ 5 $ — $ — $ 74 Commercial 1,734 29 (1 ) — 1,762 134 37 — — 171 Land 166 82 (42 ) — 206 — — — — — Real estate 4,148 335 (198 ) 8 4,293 203 42 — — 245 Commercial and industrial 851 (16 ) (2 ) 25 858 37 (11 ) — 8 34 Municipal 56 (3 ) — — 53 — — — — — Consumer 89 17 (17 ) 5 94 — — — — — Unallocated 334 (19 ) — — 315 — — — — — Totals $ 5,478 $ 314 $ (217 ) $ 38 $ 5,613 $ 240 $ 31 $ — $ 8 $ 279 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2016 Nine months ended September 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,477 $ 370 $ (550 ) $ 28 $ 2,325 $ 79 $ (5 ) $ — $ — $ 74 Commercial 1,466 332 (37 ) 1 1,762 132 133 (98 ) 4 171 Land 188 106 (88 ) — 206 — — — — — Real estate 4,131 808 (675 ) 29 4,293 211 128 (98 ) 4 245 Commercial and industrial 683 167 (32 ) 40 858 24 403 (416 ) 23 34 Municipal 61 (8 ) — — 53 — — — — — Consumer 124 1 (46 ) 15 94 — — — — — Unallocated 482 (167 ) — — 315 — — — — — Totals $ 5,481 $ 801 $ (753 ) $ 84 $ 5,613 $ 235 $ 531 $ (514 ) $ 27 $ 279 Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2015 Three months ended September 30, 2015 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision 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 Charge- offs Reco- veries Ending balance Beginning balance Provision 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 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, 2016 Residential 1-4 family $ 280,711 $ 1,698 $ 5,952 $ 147 $ 286,663 $ 1,845 Residential 5+ multifamily 5,860 54 1,830 — 7,690 54 Construction of residential 1-4 family 9,824 85 — — 9,824 85 Home equity lines of credit 34,674 324 796 17 35,470 341 Residential real estate 331,069 2,161 8,578 164 339,647 2,325 Commercial 158,185 1,646 4,417 69 162,602 1,715 Construction of commercial 3,949 48 117 — 4,066 48 Commercial real estate 162,134 1,694 4,534 69 166,668 1,763 Farm land 3,025 27 1,008 9 4,033 36 Vacant land 5,589 166 241 4 5,830 170 Real estate secured 501,817 4,048 14,361 246 516,178 4,294 Commercial and industrial 101,063 853 83 4 101,146 857 Municipal 8,475 53 — — 8,475 53 Consumer 5,593 94 — — 5,593 94 Unallocated allowance — 315 — — — 315 Totals $ 616,948 $ 5,363 $ 14,444 $ 250 $ 631,392 $ 5,613 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance September 30, 2016 Residential 1-4 family $ 6,244 $ — $ 779 $ 74 $ — $ — $ 7,023 $ 74 Residential 5+ multifamily 5,741 — 123 — — — 5,864 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,985 — 902 74 — — 12,887 74 Commercial 74,858 22 2,955 82 3,928 64 81,741 168 Construction of commercial 1,881 3 258 — — — 2,139 3 Commercial real estate 76,739 25 3,213 82 3,928 64 83,880 171 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 88,724 25 4,115 156 3,928 64 96,767 245 Commercial and industrial 29,676 26 — — 332 8 30,008 34 Municipal — — — — — — — — Consumer 52 — — — 16 — 68 — Unallocated allowance — — — — — — — — Totals $ 118,452 $ 51 $ 4,115 $ 156 $ 4,276 $ 72 $ 126,843 $ 279 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2015 Residential 1-4 family $ 253,156 $ 1,415 $ 8,339 $ 610 $ 261,495 $ 2,025 Residential 5+ multifamily 4,640 33 1,771 — 6,411 33 Construction of residential 1-4 family 7,998 65 — — 7,998 65 Home equity lines of credit 34,298 286 719 68 35,017 354 Residential real estate 300,092 1,799 10,829 678 310,921 2,477 Commercial 125,173 1,265 4,273 113 129,446 1,378 Construction of commercial 6,403 87 122 1 6,525 88 Commercial real estate 131,576 1,352 4,395 114 135,971 1,466 Farm land 2,162 23 1,031 14 3,193 37 Vacant land 5,486 122 3,077 29 8,563 151 Real estate secured 439,316 3,296 19,332 835 458,648 4,131 Commercial and industrial 74,131 673 526 10 74,657 683 Municipal 9,566 61 — — 9,566 61 Consumer 6,115 124 80 — 6,195 124 Unallocated allowance — 482 — — — 482 Totals $ 529,128 $ 4,636 $ 19,938 $ 845 $ 549,066 $ 5,481 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2015 Residential 1-4 family $ 7,023 $ — $ 776 $ 79 $ — $ — $ 7,799 $ 79 Residential 5+ multifamily 6,136 — — — — — 6,136 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 13,159 — 776 79 — — 13,935 79 Commercial 81,300 19 2,742 107 4,787 2 88,829 128 Construction of commercial 4,612 4 262 — — — 4,874 4 Commercial real estate 85,912 23 3,004 107 4,787 2 93,703 132 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 99,071 23 3,780 186 4,787 2 107,638 211 Commercial and industrial 45,650 24 — — 1,114 — 46,764 24 Municipal — — — — — — — — Consumer 61 — — — 16 — 77 — Unallocated allowance — — — — — — — — Totals $ 144,782 $ 47 $ 3,780 $ 186 $ 5,917 $ 2 $ 154,479 $ 235 The credit quality segments of loans receivable and the allowance for loan losses are as follows: Business Activities Loans September 30, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 612,039 $ 4,849 $ — $ — $ 612,039 $ 4,849 Potential problem loans 4,909 200 — — 4,909 200 Impaired loans — — 14,444 250 14,444 250 Unallocated allowance — 315 — — — 315 Totals $ 616,948 $ 5,364 $ 14,444 $ 250 $ 631,392 $ 5,614 Acquired Loans September 30, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 120,106 $ 70 $ — $ — $ 120,106 $ 70 Potential problem loans 2,622 53 — — 2,622 53 Impaired loans — — 4,115 156 4,115 156 Totals $ 122,728 $ 123 $ 4,115 $ 156 $ 126,843 $ 279 Business Activities Loans December 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 527,905 $ 4,110 $ — $ — $ 527,905 $ 4,110 Potential problem loans 1,223 44 — — 1,223 44 Impaired loans — — 19,938 845 19,938 845 Unallocated allowance — 482 — — — 482 Totals $ 529,128 $ 4,636 $ 19,938 $ 845 $ 549,066 $ 5,481 Acquired Loans December 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 148,580 $ 46 $ — $ — $ 148,580 $ 46 Potential problem loans 2,119 2 — — 2,119 2 Impaired loans — — 3,780 187 3,780 187 Unallocated allowance — — — — — — Totals $ 150,699 $ 48 $ 3,780 $ 187 $ 154,479 $ 235 A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the present value of expected cash flows or fair value of 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, 2016 Residential $ 5,530 $ 6,080 $ 6,418 $ 147 $ 72 $ 2,252 $ 2,409 $ 2,683 $ 69 Home equity lines of credit 410 436 463 17 1 386 419 346 5 Residential real estate 5,940 6,516 6,881 164 73 2,638 2,828 3,029 74 Commercial 3,568 3,958 3,393 69 73 849 1,106 996 17 Construction of commercial — — 72 — — 117 123 47 5 Farm land 723 784 440 9 — 286 358 580 — Vacant land 46 46 2,305 4 2 195 232 201 8 Real estate secured 10,277 11,304 13,091 246 148 4,085 4,647 4,853 104 Commercial and industrial 4 4 40 4 — 78 106 217 2 Consumer — — — — — — — 8 — Totals $ 10,281 $ 11,308 $ 13,131 $ 250 $ 148 $ 4,163 $ 4,753 $ 5,078 $ 106 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, 2016 Residential 1-4 family $ 779 $ 893 $ 637 $ 74 $ 3 $ 123 $ 123 $ 267 $ — Home equity credit — — — — — — — — — Residential real estate 779 893 637 74 3 123 123 267 — Commercial 1,146 1,557 577 82 111 1,809 2,268 2,085 158 Construction of commercial — — — — — 258 272 259 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,925 2,450 1,214 156 114 2,190 2,663 2,611 158 Commercial and industrial — — 100 — — — — 24 — Consumer — — — — — — — — — Totals $ 1,925 $ 2,450 $ 1,314 $ 156 $ 114 $ 2,190 $ 2,663 $ 2,635 $ 158 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, 2015 Residential 1-4 family $ 7,482 $ 8,094 $ 6,213 $ 610 $ 109 $ 2,628 $ 2,770 $ 3,043 $ 82 Home equity lines of credit 535 659 176 68 6 184 199 611 2 Residential real estate 8,017 8,753 6,389 678 115 2,812 2,969 3,654 84 Commercial 3,131 3,405 2,629 113 113 1,142 1,393 2,130 12 Construction of commercial 122 128 — 1 — — — 127 6 Farm land 733 773 445 14 — 298 352 270 15 Vacant land 2,870 3,836 3,058 29 2 207 241 5 7 Real estate secured 14,873 16,895 12,521 835 230 4,459 4,955 6,186 124 Commercial and industrial 95 98 120 10 8 431 481 464 7 Consumer — — — — — 80 108 — — Totals $ 14,968 $ 16,993 $ 12,641 $ 845 $ 238 $ 4,970 $ 5,544 $ 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 December 31, 2015 Residential 1-4 family $ 599 $ 716 $ 176 $ 79 $ — $ 177 $ 177 $ 436 $ 4 Home equity lines of credit — — — — — — — — — Residential real estate 599 716 176 79 — 177 177 436 4 Commercial 675 826 557 107 61 2,067 2,843 2,097 10 Construction of commercial — — — — — 262 273 138 16 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,274 1,542 733 186 61 2,506 3,293 2,671 30 Commercial and industrial — — 4 — 1 — 4 — — Consumer — — — — — — — — — Totals $ 1,274 $ 1,542 $ 737 $ 186 $ 62 $ 2,506 $ 3,297 $ 2,671 $ 30 (1) The table above reflects the book, note and specific allowance as of December 31, 2015, while the average balances and income recognized are for the nine months ended September 30, 2015. |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE SERVICING RIGHTS | NOTE 4 - MORTGAGE SERVICING RIGHTS September 30, (in thousands) 2016 2015 Residential mortgage loans serviced for others $ 125,988 $ 132,201 Fair value of mortgage servicing rights 962 1,429 Changes in mortgage servicing rights are as follows: Three months Nine months Periods ended September 30, (in thousands) 2016 2015 2016 2015 Mortgage Servicing Rights Balance, beginning of period $ 416 $ 599 $ 487 $ 694 Originated 27 22 71 124 Amortization (1) (67 ) (86 ) (182 ) (282 ) Balance, end of period 376 535 376 536 Valuation Allowance Balance, beginning of period (25 ) (2 ) (4 ) 1 (Increase) decrease in impairment reserve (1) 8 2 (13 ) (2 ) Balance, end of period (17 ) — (17 ) (1 ) Loan servicing rights, net $ 359 $ 535 $ 359 $ 535 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
PLEDGED ASSETS
PLEDGED ASSETS | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
PLEDGED ASSETS | NOTE 5 - PLEDGED ASSETS (in thousands) September 30, 2016 December 31, 2015 Securities available-for-sale (at fair value) $ 65,357 $ 67,750 Loans receivable 196,077 153,269 Total pledged assets $ 261,434 $ 221,019 At September 30, 2016, securities were pledged as follows: $59.6 million to secure public deposits, $5.7 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, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 6 – EARNINGS PER SHARE 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, except share and per share data) 2016 2015 2016 2015 Net income $ 1,922 $ 1,985 $ 5,165 $ 6,290 Less: Preferred stock dividends declared — (40 ) — (120 ) Net income available to common shareholders 1,922 1,945 5,165 6,170 Less: Undistributed earnings allocated to participating securities (15 ) (17 ) (41 ) (54 ) Net income allocated to common stock $ 1,907 $ 1,928 $ 5,124 $ 6,116 Weighted-average common shares issued 2,758 2,731 2,754 2,728 Less: Unvested restricted stock awards (21 ) (24 ) (22 ) (24 ) Weighted-average common shares outstanding used to calculate basic earnings per common share 2,737 2,707 2,732 2,704 Add: Dilutive effect of stock options 14 17 15 17 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,751 2,724 2,747 2,721 Earnings per common share (basic) $ 0.70 $ 0.71 $ 1.88 $ 2.26 Earnings per common share (diluted) $ 0.69 $ 0.71 $ 1.87 $ 2.25 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2016 | |
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 and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Board of Governors of the Federal Reserve System (FRB) and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for bank holding companies and their bank subsidiaries. Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by Salisbury and the Bank. The rules include a new common equity Tier 1 capital 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. The initial implementation of the capital conservation buffer was phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increases each subsequent January 1, 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. As of September 30, 2016, Salisbury and the Bank met each of their capital requirements and the most recent notification from the FDIC categorized the Bank as “well-capitalized.” There are no conditions or events since that notification that management believes have changed the Bank’s category. Actual regulatory capital position and minimum capital requirements as defined "To Be Well Capitalized Under Prompt Corrective Action Provisions" and "For Capital Adequacy Purposes" for Salisbury and the Bank 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, 2016 Total Capital (to risk-weighted assets) Salisbury $ 94,948 13.25 % $ 57,330 8.0 % n/a — Bank 92,739 12.94 57,330 8.0 71,662 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 78,875 11.01 42,997 6.0 n/a — Bank 86,666 12.09 42,997 6.0 57,329 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 78,875 11.01 41,868 4.5 n/a — Bank 86,666 12.09 41,871 4.5 60,481 6.5 Tier 1 Capital (to average assets) Salisbury 78,875 8.47 37,216 4.0 n/a — Bank 86,666 9.30 37,219 4.0 46,524 5.0 December 31, 2015 Total Capital (to risk-weighted assets) Salisbury $ 92,030 13.51 % $ 54,509 8.0 % n/a — Bank 89,249 13.10 54,504 8.0 $ 68,131 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 76,120 11.17 40,878 6.0 n/a — Bank 83,340 12.23 40,878 6.0 54,504 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 76,120 11.17 30,659 4.5 n/a — Bank 83,340 12.23 30,659 4.5 44,285 6.5 Tier 1 Capital (to average assets) Salisbury 76,120 8.56 36,102 4.0 n/a — Bank 83,340 9.37 35,593 4.0 44,491 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 December 21, 2015, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the FRB 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 FRB 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 qualified as Tier 1 capital for regulatory purposes and ranked senior to the Common Stock. During fourth quarter 2015, Salisbury completed an offering of $10 million of unsecured 6.00% fixed-to–floating rate subordinated notes due in 2025. The notes qualify as Tier II capital and are included as such within Salisbury’s total risk-based capital ratio. The net proceeds of the offering, along with cash on hand, were used during the fourth quarter 2015 to redeem the $16 million of Senior Non-Cumulative Perpetual Preferred Stock issued in conjunction with Salisbury’s participation in the U.S. Treasury’s SBLF program. |
BENEFITS
BENEFITS | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
BENEFITS | NOTE 8 – BENEFITS Salisbury’s 401(k) Plan expense was $179,000 and $166,000, respectively, for the three month periods ended September 30, 2016 and 2015, and $568,000 and $516,000, respectively, for the nine month periods ended September 30, 2016 and 2015. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $19,000 and $22,000, respectively, for the three month periods ended September 30, 2016 and 2015, and $56,000 and $53,000, respectively, for the nine month periods ended September 30, 2016 and 2015. In 2014, Salisbury terminated the Defined Benefit Pension Plan. Excess assets in the amount of $1,018,000 were distributed to the Bank’s Defined Contribution Plan (401k) and the Employee Stock Ownership Plan (ESOP) for future allocations to employees. The division of the excess pension assets was 66.67% to the 401k account (or $679,000) and 33.33% to the ESOP account (or $339,000). ESOP Salisbury offers an ESOP to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan, which generally vest in full upon six years of qualified service. Salisbury’s ESOP expense was $51,000 and $96,000, respectively, for the three month periods ended September 30, 2016 and 2015, and $132,000 and $287,000, respectively, for the nine month periods ended September 30, 2016 and 2015. 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 of the Code. In 2015, 2014, and 2013 the Bank awarded six (6), seven (7) and six (6) Executives, respectively, with discretionary contributions to the plan. Expenses related to this Plan amounted to $56,000 for the third quarter of 2016 and $34,000 for the third quarter of 2015. Additionally, expenses related to this plan amounted to $168,000 and $95,000 for the nine months ended September 30, 2016 and 2015, respectively. Based on the Executive’s date of retirement, the vesting schedule ranges from 7.7% per year to 50% per year. On January 29, 2016, the Compensation Committee granted a total of 47,470 Phantom Stock Appreciation Units pursuant to its 2011 Long Term Incentive Plan, which was approved by shareholders at the 2011 Annual Meeting, including 23,012 units to three Named Executive Officers. Richard J. Cantele, Jr., President and Chief Executive Officer received 11,484 units, John Davies, President of the New York Region and Chief Lending Officer received 5,963 units and Donald E. White, Chief Financial Officer received 5,565 units. The units will vest on the third anniversary of the grant date. Grants of Restricted Stock and Options On February 16, 2016, 1,350 shares of stock options were exercised at $21.48 per share by one former Riverside Bank executive. On January 29, 2016, Salisbury granted a total of 15,800 shares of restricted stock pursuant to its 2011 Long Term Incentive Plan, which was approved by shareholders at the 2011 Annual Meeting, to 42 employees, including 6,000 shares to three Named Executive Officers. Richard J. Cantele, Jr., President and Chief Executive Officer received 5,000 and John Davies, President New York Region and Chief Lending Officer and Donald E. White, Chief Financial Officer each received 500 shares. The fair value of all such stock as of the grant date was determined to be $466,000 and the stock will be vested three years from the grant date. On July 29, 2016, the Board of Directors approved the accelerated vesting of 200 shares for a recently retired employee. On January 26, 2016, 2,700 shares of stock options were exercised at $21.48 per share by two former Riverside Bank executives. 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 September 28, 2015, 2,700 shares of stock options were exercised at $21.48 per share by one former Riverside Bank executive. On March 27, 2015, Salisbury granted a total of 1,000 shares of restricted stock, pursuant to its 2011 Long Term Incentive Plan, to one (1) Named Executive Officer, Richard J. Cantele, Jr., President and Chief Executive Officer. The fair value of the stock as of the grant date was determined to be $29,000 and the stock vested immediately. Expense related to such grants in the three months ended September 30, 2016 and 2015 totaled $57,000 and $52,000, respectively, and for the nine months ended September 30, 2016 and 2015 totaled $164,000 and $167,000, respectively. Unrecognized compensation cost relating to the awards as of September 30, 2016 and 2015 totaled $431,000 and $186,000, respectively. There were 100 shares forfeited in the nine months ended September 30, 2016 and a total of 300 shares were forfeited in the nine months ended September 30, 2015. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 9 –ACCUMULATED OTHER COMPREHENSIVE INCOME (in thousands) September 30, 2016 December 31, 2015 Unrealized gains on securities available-for-sale, net of tax $ 883 $ 1,125 Accumulated other comprehensive income, net $ 883 $ 1,125 |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2016 | |
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. Accounting Standards Codification (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 spe cifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury, other U.S. Government and agency mortgage-backed securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2. Significant other observable inputs. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. • Level 3. Significant unobservable inputs. Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Salisbury did not have any significant transfers of assets between levels 1 and 2 of the fair value hierarchy during the quarter ended September 30, 2 016. The following is a description of valuation methodologies for assets recorded at fair value, including the general classification of such asse ts and liabilities pursuant to the valuation hierarchy. • Securities available-for-sale. Securities available-for-sale are recorded at fair value on a recurring basis. Level 1 securities include exchange-traded equity securities. Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of the U.S. Treasury and U.S. government-sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, municipal bonds, SBA bonds, corporate bonds and certain preferred equities. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. • Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. • Other real estate owned acquired through foreclosure or repossession is adjusted to fair value less costs to sell upon transfer out of loans. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. • Mortgage servicing assets are accounted for at cost, subject to impairment testing. When the carrying cost exceeds fair value, a valuation allowance is established to reduce the carrying cost to fair value. Fair value is calculated as the present value of estimated future net servicing income and relies on market based assumptions for loan prepayment speeds, servicing costs, discount rates, and other economic factors; as such, the primary risk inherent in valuing mortgage servicing assets is the impact of fluctuating interest rates on the servicing revenue stream. Mortgage servicing assets are classified within Level 2 of the fair value hierarchy. 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, 2016 Assets at fair value on a recurring basis Municipal bonds $ — $ 18,604 $ — $ 18,604 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 48,176 — 48,176 Collateralized mortgage obligations: U.S. Government agencies — 1,604 — 1,604 Non-agency — 4,032 — 4,032 SBA bonds — 2,286 — 2,286 CRA mutual funds — 838 — 838 Corporate bonds — 1,020 — 1,020 Preferred stock 241 — — 241 Securities available-for-sale $ 241 $ 76,560 $ — $ 76,801 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 11,801 11,801 Mortgage servicing rights — 962 — 962 December 31, 2015 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 2,541 $ — $ 2,541 U.S. Government agency notes — 498 — 498 Municipal bonds — 30,385 — 30,385 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 32,202 — 32,202 Collateralized mortgage obligations: U.S. Government agencies — 2,014 — 2,014 Non-agency — 4,948 — 4,948 SBA bonds — 3,096 — 3,096 CRA mutual funds — 764 — 764 Preferred stock 246 — — 246 Securities available-for-sale $ 246 $ 76,448 $ — $ 76,694 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 15,211 15,211 Mortgage servicing rights — 1,315 — 1,315 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, 2016 Financial Assets Cash and cash equivalents $ 42,638 $ 42,638 $ 42,638 $ — $ — Securities available-for-sale 76,801 76,801 241 76,560 — Federal Home Loan Bank stock 2,937 2,937 — 2,937 — Loans held-for-sale 837 852 — — 852 Loans receivable, net 753,623 765,433 — — 765,433 Accrued interest receivable 2,260 2,260 2,260 — — Cash surrender value of life insurance 13,952 13,952 13,952 — — Mortgage servicing rights 359 962 — 962 — Financial Liabilities Demand (non-interest-bearing) $ 210,396 $ 210,396 $ — $ — $ 210,396 Demand (interest-bearing) 126,064 126,064 — — 126,064 Money market 201,504 201,504 — — 201,504 Savings and other 127,595 127,595 — — 127,595 Certificates of deposit 121,171 122,448 — — 122,448 Deposits 786,730 788,007 — — 788,007 Repurchase agreements 3,581 3,581 — — 3,581 FHLBB advances 27,134 28,004 — — 28,004 Subordinated debt 9,782 10,432 — — 10,432 Note payable 351 385 — — 385 Capital lease liability 419 903 — — 903 Accrued interest payable 275 275 275 — — December 31, 2015 Financial Assets Cash and cash equivalents $ 62,118 $ 62,118 $ 62,118 $ — $ — Securities available-for-sale 76,694 76,694 246 76,448 — Federal Home Loan Bank stock 3,176 3,176 — 3,176 — Loans held-for-sale 763 778 — — 778 Loans receivable, net 699,018 707,154 — — 707,154 Accrued interest receivable 2,307 2,307 2,307 — — Cash surrender value of life insurance 13,685 13,685 13,685 — — Mortgage servicing rights 597 1,383 — 1,383 — Financial Liabilities Demand (non-interest-bearing) $ 201,340 $ 201,340 $ — $ — $ 201,340 Demand (interest-bearing) 125,465 125,465 — — 125,465 Money market 183,783 183,783 — — 183,783 Savings and other 119,651 119,651 — — 119,651 Certificates of deposit 124,294 125,437 — — 125,437 Deposits 754,533 755,676 — — 755,676 Repurchase agreements 3,914 3,914 — — 3,914 FHLBB advances 26,979 28,559 — — 28,559 Subordinated debt 9,764 9,764 — — 9,764 Note payable 376 405 — — 405 Capital lease liability 422 870 — — 870 Accrued interest payable 150 150 150 — — The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets under the indicated captions. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 11 – SUBSEQUENT EVENT On October 28, 2016, the Board of Directors of Salisbury declared a common stock dividend of $0.28 per common share payable on November 25, 2016 to shareholders of record on November 11, 2016. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Impact of New Accounting Pronouncements Issued | Impact of New Accounting Pronouncements Issued In January 2016, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – overall (subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). . In March 2016, the FASB issued ASU No. 2016-09, Compensation–Stock Compensation (Topic 718): "Improvements to Employee Share-Based Payment Accounting.” In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after December 15, 2019. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Salisbury is currently evaluating the provisions of ASU No. 2016-13 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, “ " |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Composition of Securities | (in thousands) Amortized cost (1) Gross un- realized gains Gross un- realized losses Fair Value September 30, 2016 Available-for-sale Municipal bonds $ 18,252 $ 352 $ — $ 18,604 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 47,881 372 (77 ) 48,176 Collateralized mortgage obligations U.S. Government agencies 1,596 8 — 1,604 Non-agency 3,619 418 (5 ) 4,032 SBA bonds 2,268 18 — 2,286 CRA mutual funds 828 10 — 838 Corporate bonds 1,000 20 — 1,020 Preferred stock 20 221 — 241 Total securities available-for-sale $ 75,464 $ 1,419 $ (82 ) $ 76,801 Non-marketable securities Federal Home Loan Bank of Boston stock $ 2,937 $ — $ — $ 2,937 (in thousands) Amortized cost (1) Gross un- realized gains Gross un- realized losses Fair Value December 31, 2015 Available-for-sale U.S. Treasury notes $ 2,499 $ 42 $ — $ 2,541 U.S. Government agency notes 498 — — 498 Municipal bonds 29,752 633 — 30,385 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 31,900 385 (83 ) 32,202 Collateralized mortgage obligations U.S. Government agencies 2,002 12 — 2,014 Non-agency 4,487 468 (7 ) 4,948 SBA bonds 3,065 31 — 3,096 CRA mutual funds 766 — (2 ) 764 Preferred stock 20 226 — 246 Total securities available-for-sale $ 74,989 $ 1,797 $ (92 ) $ 76,694 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,176 $ — $ — $ 3,176 (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, 2016 Available-for-sale Mortgage-backed securities $ 27,770 $ (71 ) $ 310 $ (6 ) $ 28,080 $ (77 ) Collateralized mortgage obligations: Non-agency 203 (1 ) 175 (4 ) 378 (5 ) Total temporarily impaired securities $ 27,973 $ (72 ) $ 485 $ (10 ) $ 28,458 $ (82 ) (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses December 31, 2015 Available-for-sale Mortgage-backed securities $ 14,750 $ (83 ) $ 53 $ — $ 14,803 $ (83 ) Collateralized mortgage obligations: Non-agency 237 — 226 (7 ) 463 (7 ) CRA mutual funds 764 (2 ) — — 764 (2 ) Total temporarily impaired securities $ 15,751 $ (85 ) $ 279 $ (7 ) $ 16,030 $ (92 ) |
Activity related to credit losses recognized into earnings | Nine months ended September 30 (in thousands) 2016 2015 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, 2016 | |
Receivables [Abstract] | |
Composition of loans receivable and loans held-for-sale | September 30, 2016 December 31, 2015 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 286,663 $ 7,022 $ 293,685 $ 261,495 $ 7,799 $ 269,294 Residential 5+ multifamily 7,690 5,864 13,554 6,411 6,136 12,547 Construction of residential 1-4 family 9,824 — 9,824 7,998 — 7,998 Home equity lines of credit 35,470 — 35,470 35,017 — 35,017 Residential real estate 339,647 12,886 352,533 310,921 13,935 324,856 Commercial 162,602 81,741 244,343 129,446 88,829 218,275 Construction of commercial 4,066 2,139 6,205 6,525 4,874 11,399 Commercial real estate 166,668 83,880 250,548 135,971 93,703 229,674 Farm land 4,033 — 4,033 3,193 — 3,193 Vacant land 5,830 — 5,830 8,563 — 8,563 Real estate secured 516,178 96,766 612,944 458,648 107,638 566,286 Commercial and industrial 101,146 30,009 131,155 74,657 46,764 121,421 Municipal 8,475 — 8,475 9,566 — 9,566 Consumer 5,593 68 5,661 6,195 77 6,272 Loans receivable, gross 631,392 126,843 758,235 549,066 154,479 703,545 Deferred loan origination costs, net 1,280 — 1,280 1,189 — 1,189 Allowance for loan losses (5,613 ) (279 ) (5,892 ) (5,481 ) (235 ) (5,716 ) Loans receivable, net $ 627,059 $ 126,564 $ 753,623 $ 544,774 $ 154,244 $ 699,018 Loans held-for-sale Residential 1-4 family $ 837 $ — $ 837 $ 763 $ — $ 763 |
Composition of loans receivable by risk rating grade | Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2016 Residential 1-4 family $ 276,508 $ 6,111 $ 3,955 $ 89 $ — $ 286,663 Residential 5+ multifamily 5,611 1,912 167 — — 7,690 Construction of residential 1-4 family 9,824 — — — — 9,824 Home equity lines of credit 34,102 528 840 — — 35,470 Residential real estate 326,045 8,551 4,962 89 — 339,647 Commercial 152,026 3,541 7,035 — — 162,602 Construction of commercial 3,949 — 117 — — 4,066 Commercial real estate 155,975 3,541 7,152 — — 166,668 Farm land 3,025 — 1,008 — — 4,033 Vacant land 5,739 63 28 — — 5,830 Real estate secured 490,784 12,155 13,150 89 — 516,178 Commercial and industrial 98,795 1,716 635 — — 101,146 Municipal 8,475 — — — — 8,475 Consumer 5,566 27 — — — 5,593 Loans receivable, gross $ 603,620 $ 13,898 $ 13,785 $ 89 $ — $ 631,392 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2016 Residential 1-4 family $ 6,133 $ 110 $ 779 $ — $ — $ 7,022 Residential 5+ multifamily 5,741 — 123 — — 5,864 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 11,874 110 902 — — 12,886 Commercial 72,288 4,082 5,371 — — 81,741 Construction of commercial 1,881 — 258 — — 2,139 Commercial real estate 74,169 4,082 5,629 — — 83,880 Farm land — — — — — — Vacant land — — — — — — Real estate secured 86,043 4,192 6,531 — — 96,766 Commercial and industrial 28,566 1,238 205 — — 30,009 Municipal — — — — — — Consumer 65 3 — — — 68 Loans receivable, gross $ 114,674 $ 5,433 $ 6,736 $ — $ — $ 126,843 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2015 Residential 1-4 family $ 248,027 $ 6,933 $ 6,444 $ 91 $ — $ 261,495 Residential 5+ multifamily 4,507 1,815 89 — — 6,411 Construction of residential 1-4 family 7,111 887 — — — 7,998 Home equity lines of credit 33,687 545 785 — — 35,017 Residential real estate 293,332 10,180 7,318 91 — 310,921 Commercial 120,903 4,801 3,742 — — 129,446 Construction of commercial 6,525 — — — — 6,525 Commercial real estate 127,428 4,801 3,742 — — 135,971 Farm land 2,162 — 1,031 — — 3,193 Vacant land 5,567 69 2,927 — — 8,563 Real estate secured 428,489 15,050 15,018 91 — 458,648 Commercial and industrial 72,887 1,214 555 1 — 74,657 Municipal 9,566 — — — — 9,566 Consumer 6,171 18 6 — — 6,195 Loans receivable, gross $ 517,113 $ 16,282 $ 15,579 $ 92 $ — $ 549,066 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2015 Residential 1-4 family $ 6,824 $ 199 $ 776 $ — $ — $ 7,799 Residential 5+ multifamily 6,136 — — — — 6,136 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 12,960 199 776 — — 13,935 Commercial 80,406 4,005 4,418 — — 88,829 Construction of commercial 4,612 — 262 — — 4,874 Commercial real estate 85,018 4,005 4,680 — — 93,703 Farm land — — — — — — Vacant land — — — — — — Real estate secured 97,978 4,204 5,456 — — 107,638 Commercial and industrial 45,363 875 443 83 — 46,764 Municipal — — — — — — Consumer 71 6 — — — 77 Loans receivable, gross $ 143,412 $ 5,085 $ 5,899 $ 83 $ — $ 154,479 |
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, 2016 Residential 1-4 family $ 281,558 $ 1,892 $ 313 $ 679 $ 74 $ 2,147 $ 3,213 $ — $ 3,017 Residential 5+ multifamily 7,690 — — — — — — — 167 Construction of residential 1-4 family 9,824 — — — — — — — — Home equity lines of credit 34,949 69 151 90 54 157 452 — 681 Residential real estate 334,021 1,961 464 769 128 2,304 3,665 — 3,865 Commercial 158,272 1,251 1,917 252 — 910 3,079 — 2,993 Construction of commercial 4,066 — — — — — — — — Commercial real estate 162,338 1,251 1,917 252 — 910 3,079 — 2,993 Farm land 2,514 795 — — — 724 724 — 1,009 Vacant land 5,784 46 — — — — — — 28 Real estate secured 504,657 4,053 2,381 1,021 128 3,938 7,468 — 7,895 Commercial and industrial 99,230 1,105 627 161 — 23 811 — 23 Municipal 8,475 — — — — — — — — Consumer 5,555 19 9 10 — — 19 — — Loans receivable, gross $ 617,917 $ 5,177 $ 3,017 $ 1,192 $ 128 $ 3,961 $ 8,298 $ — $ 7,918 Acquired Loans September 30, 2016 Residential 1-4 family $ 5,961 $ 282 $ — $ — $ — $ 779 $ 779 $ — $ 779 Residential 5+ multifamily 5,299 — 442 — — 123 565 — 123 Construction of residential 1-4 family — — — — — — — — — Home equity credit lines of credit — — — — — — — — — Residential real estate 11,260 282 442 — — 902 1344 — 902 Commercial 74,978 2,695 1,503 — 974 1,591 4,068 365 2,199 Construction of commercial 1,881 — — — — 258 258 — 258 Commercial real estate 76,859 2,695 1,503 — 974 1,849 4,326 365 2,457 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 88,119 2,977 1,945 — 974 2,751 5,670 365 3,359 Commercial and industrial 27,711 622 543 1,103 30 — 1,676 30 — Municipal — — — — — — — — — Consumer 68 — — — — — — — — Loans receivable, gross $ 115,898 $ 3,599 $ 2,488 $ 1,103 $ 1,004 $ 2,751 $ 7,346 $ 395 $ 3,359 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 30, 2015 Residential 1-4 family $ 254,152 $ 1,781 $ 1,931 $ 683 $ 973 $ 1,975 $ 5,562 $ — $ 5,671 Residential 5+ multifamily 6,254 — 68 — — 89 157 — 89 Construction of residential 1-4 family 7,826 172 — — — — — — — Home equity lines of credit 33,744 363 306 101 113 390 910 — 601 Residential real estate 301,976 2,316 2,305 784 1,086 2,454 6,629 — 6,361 Commercial 126,440 1,618 474 — 233 681 1,388 — 2,349 Construction of commercial 6,525 — — — — — — — — Commercial real estate 132,965 1,618 474 — 233 681 1,388 — 2,349 Farm land 2,172 298 — — — 723 723 — 1,031 Vacant land 5,734 — 6 — — 2,823 2,829 — 2,855 Real estate secured 442,847 4,232 2,785 784 1,319 6,681 11,569 — 12,596 Commercial and industrial 73,698 906 35 — — 18 53 — 461 Municipal 9,566 — — — — — — — — Consumer 6,096 61 21 17 — — 38 — 80 Loans receivable, gross $ 532,207 $ 5,199 $ 2,841 $ 801 $ 1,319 $ 6,699 $ 11,660 $ — $ 13,137 Acquired Loans December 30, 2015 Residential 1-4 family $ 6,823 $ — $ — $ 110 $ — $ 866 $ 976 $ 90 $ 776 Residential 5+ multifamily 6,136 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 12,959 — — 110 — 866 976 90 776 Commercial 81,140 4,848 916 — — 1,925 2,841 — 2,000 Construction of commercial 4,612 — — — — 262 262 — 262 Commercial real estate 85,752 4,848 916 — — 2,187 3,103 — 2,262 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 98,711 4,848 916 110 — 3,053 4,079 90 3,038 Commercial and industrial 46,128 471 83 82 — — 165 — — Municipal — — — — — — — — — Consumer 77 — — — — — — — — Loans receivable, gross $ 144,916 $ 5,319 $ 999 $ 192 $ — $ 3,053 $ 4,244 $ 90 $ 3,038 |
Troubled debt restructurings | Business Activities Loans Nine months ended September 30, 2016 September 30, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 4 $ 683 $ 683 2 $ 923 $ 923 Commercial real estate 2 2,123 2,123 1 294 294 Home equity lines of credit — — — 1 35 35 Troubled debt restructurings 6 $ 2,806 $ 2,806 4 1,252 1,252 Rate reduction and term extension 1 $ 174 $ 174 1 $ 294 $ 294 Interest only and term extension — — — — — — Debt consolidation 1 1,863 1,863 — — — Debt consolidation and term extension 1 260 260 — — — Note bifurcation — — — 1 48 48 Term extension 3 509 509 2 910 910 Troubled debt restructurings 6 $ 2,806 $ 2,806 4 1,252 1,252 Acquired Loans Nine months ended September 30, 2016 September 30, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 1 $ 88 $ 88 — $ — $ — Commercial real estate — — — 1 184 184 Home equity lines of credit — — — — — — Troubled debt restructurings 1 $ 88 $ 88 1 $ 184 $ 184 Rate reduction and term extension 1 $ 88 $ 88 1 $ 184 $ 184 Interest only and term extension — — — — — — Interest only — — — — — — Debt consolidation and term extension — — — — — — Term extension — — — — — — Troubled debt restructurings 1 $ 88 $ 88 1 $ 184 $ 184 |
Changes in allowance for loan losses | Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2016 Three months ended September 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,248 $ 224 $ (155 ) $ 8 $ 2,325 $ 69 $ 5 $ — $ — $ 74 Commercial 1,734 29 (1 ) — 1,762 134 37 — — 171 Land 166 82 (42 ) — 206 — — — — — Real estate 4,148 335 (198 ) 8 4,293 203 42 — — 245 Commercial and industrial 851 (16 ) (2 ) 25 858 37 (11 ) — 8 34 Municipal 56 (3 ) — — 53 — — — — — Consumer 89 17 (17 ) 5 94 — — — — — Unallocated 334 (19 ) — — 315 — — — — — Totals $ 5,478 $ 314 $ (217 ) $ 38 $ 5,613 $ 240 $ 31 $ — $ 8 $ 279 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2016 Nine months ended September 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,477 $ 370 $ (550 ) $ 28 $ 2,325 $ 79 $ (5 ) $ — $ — $ 74 Commercial 1,466 332 (37 ) 1 1,762 132 133 (98 ) 4 171 Land 188 106 (88 ) — 206 — — — — — Real estate 4,131 808 (675 ) 29 4,293 211 128 (98 ) 4 245 Commercial and industrial 683 167 (32 ) 40 858 24 403 (416 ) 23 34 Municipal 61 (8 ) — — 53 — — — — — Consumer 124 1 (46 ) 15 94 — — — — — Unallocated 482 (167 ) — — 315 — — — — — Totals $ 5,481 $ 801 $ (753 ) $ 84 $ 5,613 $ 235 $ 531 $ (514 ) $ 27 $ 279 Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2015 Three months ended September 30, 2015 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision 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 Charge- offs Reco- veries Ending balance Beginning balance Provision 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 |
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, 2016 Residential 1-4 family $ 280,711 $ 1,698 $ 5,952 $ 147 $ 286,663 $ 1,845 Residential 5+ multifamily 5,860 54 1,830 — 7,690 54 Construction of residential 1-4 family 9,824 85 — — 9,824 85 Home equity lines of credit 34,674 324 796 17 35,470 341 Residential real estate 331,069 2,161 8,578 164 339,647 2,325 Commercial 158,185 1,646 4,417 69 162,602 1,715 Construction of commercial 3,949 48 117 — 4,066 48 Commercial real estate 162,134 1,694 4,534 69 166,668 1,763 Farm land 3,025 27 1,008 9 4,033 36 Vacant land 5,589 166 241 4 5,830 170 Real estate secured 501,817 4,048 14,361 246 516,178 4,294 Commercial and industrial 101,063 853 83 4 101,146 857 Municipal 8,475 53 — — 8,475 53 Consumer 5,593 94 — — 5,593 94 Unallocated allowance — 315 — — — 315 Totals $ 616,948 $ 5,363 $ 14,444 $ 250 $ 631,392 $ 5,613 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance September 30, 2016 Residential 1-4 family $ 6,244 $ — $ 779 $ 74 $ — $ — $ 7,023 $ 74 Residential 5+ multifamily 5,741 — 123 — — — 5,864 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,985 — 902 74 — — 12,887 74 Commercial 74,858 22 2,955 82 3,928 64 81,741 168 Construction of commercial 1,881 3 258 — — — 2,139 3 Commercial real estate 76,739 25 3,213 82 3,928 64 83,880 171 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 88,724 25 4,115 156 3,928 64 96,767 245 Commercial and industrial 29,676 26 — — 332 8 30,008 34 Municipal — — — — — — — — Consumer 52 — — — 16 — 68 — Unallocated allowance — — — — — — — — Totals $ 118,452 $ 51 $ 4,115 $ 156 $ 4,276 $ 72 $ 126,843 $ 279 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2015 Residential 1-4 family $ 253,156 $ 1,415 $ 8,339 $ 610 $ 261,495 $ 2,025 Residential 5+ multifamily 4,640 33 1,771 — 6,411 33 Construction of residential 1-4 family 7,998 65 — — 7,998 65 Home equity lines of credit 34,298 286 719 68 35,017 354 Residential real estate 300,092 1,799 10,829 678 310,921 2,477 Commercial 125,173 1,265 4,273 113 129,446 1,378 Construction of commercial 6,403 87 122 1 6,525 88 Commercial real estate 131,576 1,352 4,395 114 135,971 1,466 Farm land 2,162 23 1,031 14 3,193 37 Vacant land 5,486 122 3,077 29 8,563 151 Real estate secured 439,316 3,296 19,332 835 458,648 4,131 Commercial and industrial 74,131 673 526 10 74,657 683 Municipal 9,566 61 — — 9,566 61 Consumer 6,115 124 80 — 6,195 124 Unallocated allowance — 482 — — — 482 Totals $ 529,128 $ 4,636 $ 19,938 $ 845 $ 549,066 $ 5,481 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2015 Residential 1-4 family $ 7,023 $ — $ 776 $ 79 $ — $ — $ 7,799 $ 79 Residential 5+ multifamily 6,136 — — — — — 6,136 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 13,159 — 776 79 — — 13,935 79 Commercial 81,300 19 2,742 107 4,787 2 88,829 128 Construction of commercial 4,612 4 262 — — — 4,874 4 Commercial real estate 85,912 23 3,004 107 4,787 2 93,703 132 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 99,071 23 3,780 186 4,787 2 107,638 211 Commercial and industrial 45,650 24 — — 1,114 — 46,764 24 Municipal — — — — — — — — Consumer 61 — — — 16 — 77 — Unallocated allowance — — — — — — — — Totals $ 144,782 $ 47 $ 3,780 $ 186 $ 5,917 $ 2 $ 154,479 $ 235 |
Credit quality segments of loans receivable and allowance for loan losses | Business Activities Loans September 30, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 612,039 $ 4,849 $ — $ — $ 612,039 $ 4,849 Potential problem loans 4,909 200 — — 4,909 200 Impaired loans — — 14,444 250 14,444 250 Unallocated allowance — 315 — — — 315 Totals $ 616,948 $ 5,364 $ 14,444 $ 250 $ 631,392 $ 5,614 Acquired Loans September 30, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 120,106 $ 70 $ — $ — $ 120,106 $ 70 Potential problem loans 2,622 53 — — 2,622 53 Impaired loans — — 4,115 156 4,115 156 Totals $ 122,728 $ 123 $ 4,115 $ 156 $ 126,843 $ 279 Business Activities Loans December 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 527,905 $ 4,110 $ — $ — $ 527,905 $ 4,110 Potential problem loans 1,223 44 — — 1,223 44 Impaired loans — — 19,938 845 19,938 845 Unallocated allowance — 482 — — — 482 Totals $ 529,128 $ 4,636 $ 19,938 $ 845 $ 549,066 $ 5,481 Acquired Loans December 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 148,580 $ 46 $ — $ — $ 148,580 $ 46 Potential problem loans 2,119 2 — — 2,119 2 Impaired loans — — 3,780 187 3,780 187 Unallocated allowance — — — — — — Totals $ 150,699 $ 48 $ 3,780 $ 187 $ 154,479 $ 235 |
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, 2016 Residential $ 5,530 $ 6,080 $ 6,418 $ 147 $ 72 $ 2,252 $ 2,409 $ 2,683 $ 69 Home equity lines of credit 410 436 463 17 1 386 419 346 5 Residential real estate 5,940 6,516 6,881 164 73 2,638 2,828 3,029 74 Commercial 3,568 3,958 3,393 69 73 849 1,106 996 17 Construction of commercial — — 72 — — 117 123 47 5 Farm land 723 784 440 9 — 286 358 580 — Vacant land 46 46 2,305 4 2 195 232 201 8 Real estate secured 10,277 11,304 13,091 246 148 4,085 4,647 4,853 104 Commercial and industrial 4 4 40 4 — 78 106 217 2 Consumer — — — — — — — 8 — Totals $ 10,281 $ 11,308 $ 13,131 $ 250 $ 148 $ 4,163 $ 4,753 $ 5,078 $ 106 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, 2016 Residential 1-4 family $ 779 $ 893 $ 637 $ 74 $ 3 $ 123 $ 123 $ 267 $ — Home equity lines of credit — — — — — — — — — Residential real estate 779 893 637 74 3 123 123 267 — Commercial 1,146 1,557 577 82 111 1,809 2,268 2,085 158 Construction of commercial — — — — — 258 272 259 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,925 2,450 1,214 156 114 2,190 2,663 2,611 158 Commercial and industrial — — 100 — — — — 24 — Consumer — — — — — — — — — Totals $ 1,925 $ 2,450 $ 1,314 $ 156 $ 114 $ 2,190 $ 2,663 $ 2,635 $ 158 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, 2015 Residential 1-4 family $ 7,482 $ 8,094 $ 6,213 $ 610 $ 109 $ 2,628 $ 2,770 $ 3,043 $ 82 Home equity lines of credit 535 659 176 68 6 184 199 611 2 Residential real estate 8,017 8,753 6,389 678 115 2,812 2,969 3,654 84 Commercial 3,131 3,405 2,629 113 113 1,142 1,393 2,130 12 Construction of commercial 122 128 — 1 — — — 127 6 Farm land 733 773 445 14 — 298 352 270 15 Vacant land 2,870 3,836 3,058 29 2 207 241 5 7 Real estate secured 14,873 16,895 12,521 835 230 4,459 4,955 6,186 124 Commercial and industrial 95 98 120 10 8 431 481 464 7 Consumer — — — — — 80 108 — — Totals $ 14,968 $ 16,993 $ 12,641 $ 845 $ 238 $ 4,970 $ 5,544 $ 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 December 31, 2015 Residential 1-4 family $ 599 $ 716 $ 176 $ 79 $ — $ 177 $ 177 $ 436 $ 4 Home equity lines of credit — — — — — — — — — Residential real estate 599 716 176 79 — 177 177 436 4 Commercial 675 826 557 107 61 2,067 2,843 2,097 10 Construction of commercial — — — — — 262 273 138 16 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,274 1,542 733 186 61 2,506 3,293 2,671 30 Commercial and industrial — — 4 — 1 — 4 — — Consumer — — — — — — — — — Totals $ 1,274 $ 1,542 $ 737 $ 186 $ 62 $ 2,506 $ 3,297 $ 2,671 $ 30 (1) The table above reflects the book, note and specific allowance as of December 31, 2015, while the average balances and income recognized are for the nine months ended September 30, 2015. |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Balance of loans serviced for others and fair value of mortgage servicing rights | September 30, (in thousands) 2016 2015 Residential mortgage loans serviced for others $ 125,988 $ 132,201 Fair value of mortgage servicing rights 962 1,429 |
Changes in mortgage servicing rights | Three months Nine months Periods ended September 30, (in thousands) 2016 2015 2016 2015 Mortgage Servicing Rights Balance, beginning of period $ 416 $ 599 $ 487 $ 694 Originated 27 22 71 124 Amortization (1) (67 ) (86 ) (182 ) (282 ) Balance, end of period 376 535 376 536 Valuation Allowance Balance, beginning of period (25 ) (2 ) (4 ) 1 (Increase) decrease in impairment reserve (1) 8 2 (13 ) (2 ) Balance, end of period (17 ) — (17 ) (1 ) Loan servicing rights, net $ 359 $ 535 $ 359 $ 535 (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, 2016 | |
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, 2016 December 31, 2015 Securities available-for-sale (at fair value) $ 65,357 $ 67,750 Loans receivable 196,077 153,269 Total pledged assets $ 261,434 $ 221,019 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | Three months Nine months Periods ended September 30, (in thousands, except share and per share data) 2016 2015 2016 2015 Net income $ 1,922 $ 1,985 $ 5,165 $ 6,290 Less: Preferred stock dividends declared — (40 ) — (120 ) Net income available to common shareholders 1,922 1,945 5,165 6,170 Less: Undistributed earnings allocated to participating securities (15 ) (17 ) (41 ) (54 ) Net income allocated to common stock $ 1,907 $ 1,928 $ 5,124 $ 6,116 Weighted-average common shares issued 2,758 2,731 2,754 2,728 Less: Unvested restricted stock awards (21 ) (24 ) (22 ) (24 ) Weighted-average common shares outstanding used to calculate basic earnings per common share 2,737 2,707 2,732 2,704 Add: Dilutive effect of stock options 14 17 15 17 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,751 2,724 2,747 2,721 Earnings per common share (basic) $ 0.70 $ 0.71 $ 1.88 $ 2.26 Earnings per common share (diluted) $ 0.69 $ 0.71 $ 1.87 $ 2.25 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 Total Capital (to risk-weighted assets) Salisbury $ 94,948 13.25 % $ 57,330 8.0 % n/a — Bank 92,739 12.94 57,330 8.0 71,662 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 78,875 11.01 42,997 6.0 n/a — Bank 86,666 12.09 42,997 6.0 57,329 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 78,875 11.01 41,868 4.5 n/a — Bank 86,666 12.09 41,871 4.5 60,481 6.5 Tier 1 Capital (to average assets) Salisbury 78,875 8.47 37,216 4.0 n/a — Bank 86,666 9.30 37,219 4.0 46,524 5.0 December 31, 2015 Total Capital (to risk-weighted assets) Salisbury $ 92,030 13.51 % $ 54,509 8.0 % n/a — Bank 89,249 13.10 54,504 8.0 $ 68,131 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 76,120 11.17 40,878 6.0 n/a — Bank 83,340 12.23 40,878 6.0 54,504 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 76,120 11.17 30,659 4.5 n/a — Bank 83,340 12.23 30,659 4.5 44,285 6.5 Tier 1 Capital (to average assets) Salisbury 76,120 8.56 36,102 4.0 n/a — Bank 83,340 9.37 35,593 4.0 44,491 5.0 |
ACCUMULATED OTHER COMPREHENSI26
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income | (in thousands) September 30, 2016 December 31, 2015 Unrealized gains on securities available-for-sale, net of tax $ 883 $ 1,125 Accumulated other comprehensive income, net $ 883 $ 1,125 |
FAIR VALUE OF ASSETS AND LIAB27
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 Assets at fair value on a recurring basis Municipal bonds $ — $ 18,604 $ — $ 18,604 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 48,176 — 48,176 Collateralized mortgage obligations: U.S. Government agencies — 1,604 — 1,604 Non-agency — 4,032 — 4,032 SBA bonds — 2,286 — 2,286 CRA mutual funds — 838 — 838 Corporate bonds — 1,020 — 1,020 Preferred stock 241 — — 241 Securities available-for-sale $ 241 $ 76,560 $ — $ 76,801 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 11,801 11,801 Mortgage servicing rights — 962 — 962 December 31, 2015 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 2,541 $ — $ 2,541 U.S. Government agency notes — 498 — 498 Municipal bonds — 30,385 — 30,385 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 32,202 — 32,202 Collateralized mortgage obligations: U.S. Government agencies — 2,014 — 2,014 Non-agency — 4,948 — 4,948 SBA bonds — 3,096 — 3,096 CRA mutual funds — 764 — 764 Preferred stock 246 — — 246 Securities available-for-sale $ 246 $ 76,448 $ — $ 76,694 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 15,211 15,211 Mortgage servicing rights — 1,315 — 1,315 |
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, 2016 Financial Assets Cash and cash equivalents $ 42,638 $ 42,638 $ 42,638 $ — $ — Securities available-for-sale 76,801 76,801 241 76,560 — Federal Home Loan Bank stock 2,937 2,937 — 2,937 — Loans held-for-sale 837 852 — — 852 Loans receivable, net 753,623 765,433 — — 765,433 Accrued interest receivable 2,260 2,260 2,260 — — Cash surrender value of life insurance 13,952 13,952 13,952 — — Mortgage servicing rights 359 962 — 962 — Financial Liabilities Demand (non-interest-bearing) $ 210,396 $ 210,396 $ — $ — $ 210,396 Demand (interest-bearing) 126,064 126,064 — — 126,064 Money market 201,504 201,504 — — 201,504 Savings and other 127,595 127,595 — — 127,595 Certificates of deposit 121,171 122,448 — — 122,448 Deposits 786,730 788,007 — — 788,007 Repurchase agreements 3,581 3,581 — — 3,581 FHLBB advances 27,134 28,004 — — 28,004 Subordinated debt 9,782 10,432 — — 10,432 Note payable 351 385 — — 385 Capital lease liability 419 903 — — 903 Accrued interest payable 275 275 275 — — December 31, 2015 Financial Assets Cash and cash equivalents $ 62,118 $ 62,118 $ 62,118 $ — $ — Securities available-for-sale 76,694 76,694 246 76,448 — Federal Home Loan Bank stock 3,176 3,176 — 3,176 — Loans held-for-sale 763 778 — — 778 Loans receivable, net 699,018 707,154 — — 707,154 Accrued interest receivable 2,307 2,307 2,307 — — Cash surrender value of life insurance 13,685 13,685 13,685 — — Mortgage servicing rights 597 1,383 — 1,383 — Financial Liabilities Demand (non-interest-bearing) $ 201,340 $ 201,340 $ — $ — $ 201,340 Demand (interest-bearing) 125,465 125,465 — — 125,465 Money market 183,783 183,783 — — 183,783 Savings and other 119,651 119,651 — — 119,651 Certificates of deposit 124,294 125,437 — — 125,437 Deposits 754,533 755,676 — — 755,676 Repurchase agreements 3,914 3,914 — — 3,914 FHLBB advances 26,979 28,559 — — 28,559 Subordinated debt 9,764 9,764 — — 9,764 Note payable 376 405 — — 405 Capital lease liability 422 870 — — 870 Accrued interest payable 150 150 150 — — |
SECURITIES - Composition of Sec
SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized cost (1) | ||
Available-for-sale | ||
U.S. Treasury notes | $ 2,499 | |
U.S. Government Agency notes | 498 | |
Municipal bonds | $ 18,252 | 29,752 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 47,881 | 31,900 |
Collateralized mortgage obligations, U.S. Government Agencies | 1,596 | 2,002 |
Collateralized mortgage obligations, Non-agency | 3,619 | 4,487 |
SBA bonds | 2,268 | 3,065 |
CRA mutual funds | 828 | 766 |
Corporate bonds | 1,000 | |
Preferred stock | 20 | 20 |
Total securities available-for-sale | 75,464 | 74,989 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | 2,937 | 3,176 |
Gross unrealized gains | ||
Available-for-sale | ||
U.S. Treasury notes | 42 | |
U.S. Government Agency notes | ||
Municipal bonds | 352 | 633 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 372 | 385 |
Collateralized mortgage obligations, U.S. Government Agencies | 8 | 12 |
Collateralized mortgage obligations, Non-agency | 418 | 468 |
SBA bonds | 18 | 31 |
CRA mutual funds | 10 | |
Corporate bonds | 20 | |
Preferred stock | 221 | 226 |
Total securities available-for-sale | 1,419 | 1,797 |
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 | ||
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | (77) | (83) |
Collateralized mortgage obligations, U.S. Government Agencies | ||
Collateralized mortgage obligations, Non-agency | (5) | (7) |
SBA bonds | ||
CRA mutual funds | (2) | |
Corporate bonds | ||
Preferred stock | ||
Total securities available-for-sale | (82) | (92) |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Fair value | ||
Available-for-sale | ||
U.S. Treasury notes | 2,541 | |
U.S. Government Agency notes | 498 | |
Municipal bonds | 18,604 | 30,385 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 48,176 | 32,202 |
Collateralized mortgage obligations, U.S. Government Agencies | 1,604 | 2,014 |
Collateralized mortgage obligations, Non-agency | 4,032 | 4,948 |
SBA bonds | 2,286 | 3,096 |
CRA mutual funds | 838 | 764 |
Corporate bonds | 1,020 | |
Preferred stock | 241 | 246 |
Total securities available-for-sale | 76,801 | 76,694 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | $ 2,937 | $ 3,176 |
SECURITIES - Aggreggate fair va
SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Less Than 12 Months, Fair value | ||
Available-for-sale | ||
Mortgage-backed securities | $ 27,770 | $ 14,750 |
Collateralized mortgage obligations, Non-agency | 203 | 237 |
CRA mutual funds | 764 | |
Total temporarily impaired securities | 27,973 | 15,751 |
Less Than 12 Months, Unrealized losses | ||
Available-for-sale | ||
Mortgage-backed securities | (71) | (83) |
Collateralized mortgage obligations, Non-agency | (1) | |
CRA mutual funds | (2) | |
Total temporarily impaired securities | (72) | (85) |
12 Months or Longer, Fair value | ||
Available-for-sale | ||
Mortgage-backed securities | 310 | 53 |
Collateralized mortgage obligations, Non-agency | 175 | 226 |
CRA mutual funds | ||
Total temporarily impaired securities | 485 | 279 |
12 Months or Longer, Unrealized losses | ||
Available-for-sale | ||
Mortgage-backed securities | (6) | |
Collateralized mortgage obligations, Non-agency | (4) | (7) |
CRA mutual funds | ||
Total temporarily impaired securities | (10) | (7) |
Total, Fair value | ||
Available-for-sale | ||
Mortgage-backed securities | 28,080 | 14,803 |
Collateralized mortgage obligations, Non-agency | 378 | 463 |
CRA mutual funds | 764 | |
Total temporarily impaired securities | 28,458 | 16,030 |
Total, Unrealized losses | ||
Available-for-sale | ||
Mortgage-backed securities | (77) | (83) |
Collateralized mortgage obligations, Non-agency | (5) | (7) |
CRA mutual funds | (2) | |
Total temporarily impaired securities | $ (82) | $ (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, 2016 | Sep. 30, 2015 | |
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, 2016 | Sep. 30, 2015 | Dec. 31, 2009 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities sold | $ 3,600 | $ 3,700 | |
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, 2016 | Dec. 31, 2015 |
Business Activites Loans | ||
Residential 1-4 family | $ 286,663 | $ 261,495 |
Residential 5+ multifamily | 7,690 | 6,411 |
Construction of residential 1-4 family | 9,824 | 7,998 |
Home equity lines of credit | 35,470 | 35,017 |
Residential real estate | 339,647 | 310,921 |
Commercial | 162,602 | 129,446 |
Construction of commercial | 406 | 6,525 |
Commercial real estate | 166,668 | 135,971 |
Farm land | 4,033 | 3,193 |
Vacant land | 5,830 | 8,563 |
Real estate secured | 516,178 | 458,648 |
Commercial and industrial | 101,146 | 74,657 |
Municipal | 8,475 | 9,566 |
Consumer | 5,593 | 6,195 |
Loans receivable, gross | 631,392 | 549,066 |
Deferred loan origination fees and costs, net | 1,280 | 1,189 |
Allowance for loan losses | (5,613) | (5,481) |
Loans receivable, net | 627,059 | 544,744 |
Loans held-for-sale | ||
Residential 1-4 family | 837 | 763 |
Acquired Loans | ||
Residential 1-4 family | 7,022 | 7,799 |
Residential 5+ multifamily | 5,864 | 6,136 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 12,886 | 13,935 |
Commercial | 81,741 | 88,829 |
Construction of commercial | 2,139 | 4,874 |
Commercial real estate | 83,880 | 93,703 |
Farm land | ||
Vacant land | ||
Real estate secured | 96,766 | 107,638 |
Commercial and industrial | 30,009 | 46,764 |
Municipal | ||
Consumer | 68 | 77 |
Loans receivable, gross | 126,843 | 154,479 |
Deferred loan origination fees and costs, net | ||
Allowance for loan losses | (279) | (235) |
Loans receivable, net | 126,564 | 154,244 |
Loans held-for-sale | ||
Residential 1-4 family | ||
Total | ||
Residential 1-4 family | 293,685 | 269,294 |
Residential 5+ multifamily | 13,554 | 12,547 |
Construction of residential 1-4 family | 9,824 | 7,998 |
Home equity lines of credit | 35,470 | 35,017 |
Residential real estate | 352,533 | 324,856 |
Commercial | 244,343 | 218,275 |
Construction of commercial | 6,205 | 11,399 |
Commercial real estate | 250,548 | 229,674 |
Farm land | 4,033 | 3,193 |
Vacant land | 5,830 | 8,563 |
Real estate secured | 612,944 | 566,286 |
Commercial and industrial | 131,155 | 121,421 |
Municipal | 8,475 | 9,566 |
Consumer | 5,661 | 6,272 |
Loans receivable, gross | 758,235 | 703,545 |
Deferred loan origination fees and costs, net | 1,280 | 1,189 |
Allowance for loan losses | (5,892) | (5,716) |
Loans receivable, net | 753,623 | 699,018 |
Loans held-for-sale | ||
Residential 1-4 family | $ 837 | $ 763 |
LOANS - Composition of loans 33
LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Business Activities Loans - Pass | ||
Residential 1-4 family | $ 276,508 | $ 248,027 |
Residential 5+ multifamily | 5,611 | 4,507 |
Construction of residential 1-4 family | 9,824 | 7,111 |
Home equity lines of credit | 34,102 | 33,687 |
Residential real estate | 326,045 | 293,332 |
Commercial | 152,026 | 120,903 |
Construction of commercial | 3,949 | 6,525 |
Commercial real estate | 155,975 | 127,428 |
Farm land | 3,025 | 2,162 |
Vacant land | 5,739 | 5,567 |
Real estate secured | 490,784 | 428,489 |
Commercial and industrial | 98,795 | 72,887 |
Municipal | 8,475 | 9,566 |
Consumer | 5,566 | 6,171 |
Loans receivable, gross | 603,620 | 517,113 |
Business Activities Loans - Special mention | ||
Residential 1-4 family | 6,111 | 6,933 |
Residential 5+ multifamily | 1,912 | 1,815 |
Construction of residential 1-4 family | 887 | |
Home equity lines of credit | 528 | 545 |
Residential real estate | 8,551 | 10,180 |
Commercial | 3,541 | 4,801 |
Construction of commercial | ||
Commercial real estate | 3,541 | 4,801 |
Farm land | ||
Vacant land | 63 | 69 |
Real estate secured | 12,155 | 15,050 |
Commercial and industrial | 1,716 | 1,214 |
Municipal | ||
Consumer | 27 | 18 |
Loans receivable, gross | 13,898 | 16,282 |
Business Activities Loans - Substandard | ||
Residential 1-4 family | 3,955 | 6,444 |
Residential 5+ multifamily | 167 | 89 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 840 | 785 |
Residential real estate | 4,962 | 7,318 |
Commercial | 7,035 | 3,742 |
Construction of commercial | 117 | |
Commercial real estate | 7,152 | 3,742 |
Farm land | 1,008 | 1,031 |
Vacant land | 28 | 2,927 |
Real estate secured | 13,150 | 15,018 |
Commercial and industrial | 635 | 555 |
Municipal | ||
Consumer | 6 | |
Loans receivable, gross | 13,785 | 15,579 |
Business Activities Loans - Doubtful | ||
Residential 1-4 family | 89 | 91 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 89 | 91 |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | 89 | 91 |
Commercial and industrial | 1 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 89 | 92 |
Business Activities Loans - Loss | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of 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 | 286,663 | 261,495 |
Residential 5+ multifamily | 7,690 | 6,411 |
Construction of residential 1-4 family | 9,824 | 7,998 |
Home equity lines of credit | 35,470 | 35,017 |
Residential real estate | 339,647 | 310,921 |
Commercial | 162,602 | 129,446 |
Construction of commercial | 4,066 | 6,525 |
Commercial real estate | 166,668 | 135,971 |
Farm land | 4,033 | 3,193 |
Vacant land | 5,830 | 8,563 |
Real estate secured | 516,178 | 458,648 |
Commercial and industrial | 101,146 | 74,657 |
Municipal | 8,475 | 9,566 |
Consumer | 5,593 | 6,195 |
Loans receivable, gross | 631,392 | 549,066 |
Acquired Loans - Pass | ||
Residential 1-4 family | 6,133 | 6,824 |
Residential 5+ multifamily | 5,741 | 6,136 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 11,874 | 12,960 |
Commercial | 72,288 | 80,406 |
Construction of commercial | 1,881 | 4,612 |
Commercial real estate | 74,169 | 85,018 |
Farm land | ||
Vacant land | ||
Real estate secured | 86,043 | 97,978 |
Commercial and industrial | 28,566 | 45,363 |
Municipal | ||
Consumer | 65 | 71 |
Loans receivable, gross | 114,674 | 143,412 |
Acquired Loans - Special Mention | ||
Residential 1-4 family | 110 | 199 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 110 | 199 |
Commercial | 4,082 | 4,005 |
Construction of commercial | ||
Commercial real estate | 4,082 | 4,005 |
Farm land | ||
Vacant land | ||
Real estate secured | 4,192 | 4,204 |
Commercial and industrial | 1,238 | 875 |
Municipal | ||
Consumer | 3 | 6 |
Loans receivable, gross | 5,433 | 5,085 |
Acquired Loans - Substandard | ||
Residential 1-4 family | 779 | 776 |
Residential 5+ multifamily | 123 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 902 | 776 |
Commercial | 5,371 | 4,418 |
Construction of commercial | 258 | 262 |
Commercial real estate | 5,371 | 4,680 |
Farm land | ||
Vacant land | ||
Real estate secured | 6,531 | 5,456 |
Commercial and industrial | 205 | 443 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 6,736 | 5,899 |
Acquired Loans - Doubtful | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | ||
Commercial and industrial | 83 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 83 | |
Acquired Loans - Loss | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of 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 | 7,022 | 7,799 |
Residential 5+ multifamily | 5,864 | 6,136 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 12,886 | 13,935 |
Commercial | 81,741 | 88,829 |
Construction of commercial | 2,139 | 4,874 |
Commercial real estate | 81,741 | 93,703 |
Farm land | ||
Vacant land | ||
Real estate secured | 96,766 | 107,638 |
Commercial and industrial | 30,009 | 46,764 |
Municipal | ||
Consumer | 68 | 77 |
Loans receivable, gross | $ 126,843 | $ 154,479 |
LOANS - Composition of loans 34
LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Business Activities Loans - Current | ||
Residential 1-4 family | $ 281,558 | $ 254,152 |
Residential 5+ multifamily | 7,690 | 6,254 |
Construction of residential 1-4 family | 9,824 | 7,826 |
Home equity lines of credit | 34,949 | 33,744 |
Residential real estate | 334,021 | 301,976 |
Commercial | 158,272 | 126,440 |
Construction of commercial | 4,066 | 6,525 |
Commercial real estate | 162,338 | 132,965 |
Farm land | 2,514 | 2,172 |
Vacant land | 5,784 | 5,734 |
Real estate secured | 504,657 | 442,847 |
Commercial and industrial | 99,230 | 73,698 |
Municipal | 8,475 | 9,566 |
Consumer | 5,555 | 6,096 |
Loans receivable, gross | 617,917 | 532,207 |
Business Activities Loans - Past due 1-29 days | ||
Residential 1-4 family | 1,892 | 1,781 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | 172 | |
Home equity lines of credit | 69 | 363 |
Residential real estate | 1,961 | 2,316 |
Commercial | 1,251 | 1,618 |
Construction of commercial | ||
Commercial real estate | 1,251 | 1,618 |
Farm land | 795 | 298 |
Vacant land | 46 | |
Real estate secured | 4,053 | 4,232 |
Commercial and industrial | 1,105 | 906 |
Municipal | ||
Consumer | 19 | 61 |
Loans receivable, gross | 5,177 | 5,199 |
Business Activities Loans - Past due 30-59 days | ||
Residential 1-4 family | 313 | 1,931 |
Residential 5+ multifamily | 68 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 151 | 306 |
Residential real estate | 464 | 2,305 |
Commercial | 1,917 | 474 |
Construction of commercial | ||
Commercial real estate | 1,917 | 474 |
Farm land | ||
Vacant land | 6 | |
Real estate secured | 2,381 | 2,785 |
Commercial and industrial | 627 | 35 |
Municipal | ||
Consumer | 9 | 21 |
Loans receivable, gross | 3,017 | 2,841 |
Business Activities Loans - Past due 60-89 days | ||
Residential 1-4 family | 679 | 683 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 90 | 101 |
Residential real estate | 769 | 784 |
Commercial | 252 | |
Construction of commercial | ||
Commercial real estate | 252 | |
Farm land | ||
Vacant land | ||
Real estate secured | 1,021 | 784 |
Commercial and industrial | 161 | |
Municipal | ||
Consumer | 10 | 17 |
Loans receivable, gross | 1,192 | 801 |
Business Activities Loans - Past due 90-179 days | ||
Residential 1-4 family | 74 | 973 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 54 | 113 |
Residential real estate | 128 | 1,086 |
Commercial | 233 | |
Construction of commercial | ||
Commercial real estate | 233 | |
Farm land | ||
Vacant land | ||
Real estate secured | 128 | 1,319 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 128 | 1,319 |
Business Activities Loans - Past due 180 days and over | ||
Residential 1-4 family | 2,147 | 1,975 |
Residential 5+ multifamily | 89 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 157 | 390 |
Residential real estate | 2,304 | 2,454 |
Commercial | 910 | 681 |
Construction of commercial | ||
Commercial real estate | 910 | 681 |
Farm land | 724 | 723 |
Vacant land | 2,823 | |
Real estate secured | 3,938 | 6,681 |
Commercial and industrial | 23 | 18 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 3,961 | 6,699 |
Business Activities Loans - Past due 30 days and over | ||
Residential 1-4 family | 3,213 | 5,562 |
Residential 5+ multifamily | 157 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 452 | 910 |
Residential real estate | 3,665 | 6,629 |
Commercial | 3,079 | 1,388 |
Construction of commercial | ||
Commercial real estate | 3,079 | 1,388 |
Farm land | 724 | 723 |
Vacant land | 2,829 | |
Real estate secured | 7,468 | 11,569 |
Commercial and industrial | 811 | 53 |
Municipal | ||
Consumer | 19 | |
Loans receivable, gross | 8,298 | 11,660 |
Business Activities Loans - Accruing 90 days and over | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of 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 - Non-accrual | ||
Residential 1-4 family | 3,017 | 5,671 |
Residential 5+ multifamily | 167 | 89 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 681 | 601 |
Residential real estate | 3,865 | 6,361 |
Commercial | 2,993 | 2,349 |
Construction of commercial | ||
Commercial real estate | 2,993 | 2,349 |
Farm land | 1,009 | 1,031 |
Vacant land | 28 | 2,855 |
Real estate secured | 7,895 | 12,596 |
Commercial and industrial | 23 | 461 |
Municipal | ||
Consumer | 80 | |
Loans receivable, gross | 7,918 | 13,137 |
Acquired Loans - Current | ||
Residential 1-4 family | 5,961 | 6,823 |
Residential 5+ multifamily | 5,299 | 6,136 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 11,260 | 12,959 |
Commercial | 74,978 | 81,140 |
Construction of commercial | 1,881 | 4,612 |
Commercial real estate | 76,859 | 85,752 |
Farm land | ||
Vacant land | ||
Real estate secured | 88,119 | 98,711 |
Commercial and industrial | 27,711 | 46,128 |
Municipal | ||
Consumer | 68 | 77 |
Loans receivable, gross | 115,898 | 144,916 |
Acquired Loans - Past due 1-29 days | ||
Residential 1-4 family | 282 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 282 | |
Commercial | 2,695 | 4,848 |
Construction of commercial | ||
Commercial real estate | 2,695 | 4,848 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,977 | 4,848 |
Commercial and industrial | 622 | 471 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 3,599 | 5,319 |
Acquired Loans - Past due 30-59 days | ||
Residential 1-4 family | ||
Residential 5+ multifamily | 442 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 442 | |
Commercial | 1,503 | 916 |
Construction of commercial | ||
Commercial real estate | 1,503 | 916 |
Farm land | ||
Vacant land | ||
Real estate secured | 1,945 | 916 |
Commercial and industrial | 543 | 83 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 2,488 | 999 |
Acquired Loans - Past due 60-89 days | ||
Residential 1-4 family | 110 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 110 | |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | 110 | |
Commercial and industrial | 1,103 | 82 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 1,103 | 192 |
Acquired Loans - Past due 90-179 days | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 974 | |
Construction of commercial | ||
Commercial real estate | 974 | |
Farm land | ||
Vacant land | ||
Real estate secured | 974 | |
Commercial and industrial | 30 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 1,004 | |
Acquired Loans - Past due 180 days and over | ||
Residential 1-4 family | 779 | 866 |
Residential 5+ multifamily | 123 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 902 | 866 |
Commercial | 1,591 | 1,925 |
Construction of commercial | 258 | 262 |
Commercial real estate | 1,849 | 2,187 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,751 | 3,053 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 2,751 | 3,053 |
Acquired Loans - Past due 30 days and over | ||
Residential 1-4 family | 779 | 976 |
Residential 5+ multifamily | 565 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 1,344 | 976 |
Commercial | 4,068 | 2,841 |
Construction of commercial | 258 | 262 |
Commercial real estate | 4,326 | 3,103 |
Farm land | ||
Vacant land | ||
Real estate secured | 5,670 | 4,079 |
Commercial and industrial | 1,676 | 165 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 7,346 | 4,244 |
Acquired Loans - Accruing 90 days and over | ||
Residential 1-4 family | 90 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 90 | |
Commercial | 365 | |
Construction of commercial | ||
Commercial real estate | 365 | |
Farm land | ||
Vacant land | ||
Real estate secured | 365 | 90 |
Commercial and industrial | 30 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 395 | 90 |
Acquired Loans - Non-accrual | ||
Residential 1-4 family | 779 | 766 |
Residential 5+ multifamily | 123 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 902 | 766 |
Commercial | 2,199 | 2,000 |
Construction of commercial | 258 | 262 |
Commercial real estate | 2,457 | 2,262 |
Farm land | ||
Vacant land | ||
Real estate secured | 3,359 | 3,038 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 3,359 | $ 3,038 |
LOANS - Troubled debt restructu
LOANS - Troubled debt restructurings (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)Integer | Sep. 30, 2015USD ($)Integer | |
Business Activities Loans - Residential real estate | ||
Quantity of troubled debt restructurings | Integer | 3 | 2 |
Pre-modification balance | $ 683 | $ 923 |
Post-modification balance | $ 683 | $ 923 |
Business Activities Loans - Commercial real estate | ||
Quantity of troubled debt restructurings | Integer | 2 | 1 |
Pre-modification balance | $ 2,123 | $ 294 |
Post-modification balance | $ 2,123 | $ 294 |
Business Activities Loans - Home equity lines of credit | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 35 | |
Post-modification balance | $ 35 | |
Business Activities Loans - Troubled debt restructurings | ||
Quantity of troubled debt restructurings | Integer | 6 | 4 |
Pre-modification balance | $ 2,806 | $ 1,252 |
Post-modification balance | $ 2,806 | $ 1,252 |
Business Activities Loans - Rate reduction and term extension | ||
Quantity of troubled debt restructurings | Integer | 1 | 1 |
Pre-modification balance | $ 174 | $ 294 |
Post-modification balance | $ 174 | $ 294 |
Business Activities Loans - Interest only and term extension | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Business Activities Loans - Debt consolidation | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 1,863 | |
Post-modification balance | $ 1,863 | |
Business Activities Loans - Debt consolidation and term extension | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 260 | |
Post-modification balance | $ 260 | |
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 | 3 | 2 |
Pre-modification balance | $ 509 | $ 910 |
Post-modification balance | $ 509 | $ 910 |
Acquired Loans - Residential real estate | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 88 | |
Post-modification balance | $ 88 | |
Acquired Loans - Commercial real estate | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 184 | |
Post-modification balance | $ 184 | |
Acquired Loans - Home equity lines of credit | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Acquired Loans - Troubled debt restructurings | ||
Quantity of troubled debt restructurings | Integer | 1 | 1 |
Pre-modification balance | $ 88 | $ 184 |
Post-modification balance | $ 88 | $ 184 |
Acquired Loans - Rate reduction and term extension | ||
Quantity of troubled debt restructurings | Integer | 1 | 1 |
Pre-modification balance | $ 88 | $ 184 |
Post-modification balance | $ 88 | $ 184 |
Acquired Loans - Interest only and term extension | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Acquired Loans - Interest only | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Acquired Loans - Debt consolidation and term extension | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Acquired Loans - Term extension | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance |
LOANS - Changes in allowance fo
LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Activities Loans - Residential | ||||
Beginning balance | $ 2,248 | $ 2,147 | $ 2,477 | $ 2,306 |
Provision | 224 | 632 | 370 | 952 |
Charge-offs | (155) | (92) | (550) | (573) |
Recoveries | 8 | 111 | 28 | 113 |
Ending balance | 2,325 | 2,798 | 2,325 | 2,798 |
Business Activities Loans - Commercial | ||||
Beginning balance | 1,734 | 1,339 | 1,466 | 1,697 |
Provision | 29 | (102) | 332 | (256) |
Charge-offs | (1) | (10) | (37) | (214) |
Recoveries | 1 | |||
Ending balance | 1,762 | 1,227 | 1,762 | 1,227 |
Business Activities Loans - Land | ||||
Beginning balance | 166 | 182 | 188 | 164 |
Provision | 82 | 168 | 106 | 186 |
Charge-offs | (42) | 72 | (88) | (72) |
Recoveries | ||||
Ending balance | 206 | 278 | 206 | 278 |
Business Activities Loans - Real estate | ||||
Beginning balance | 4,148 | 3,668 | 4,131 | 4,167 |
Provision | 335 | 698 | 808 | 882 |
Charge-offs | (198) | (174) | (675) | (859) |
Recoveries | 8 | 111 | 29 | 113 |
Ending balance | 4,293 | 4,303 | 4,293 | 4,303 |
Business Activities Loans - Commercial and industrial | ||||
Beginning balance | 851 | 691 | 683 | 583 |
Provision | (16) | (197) | 167 | (484) |
Charge-offs | (2) | (32) | (56) | |
Recoveries | 25 | 4 | 40 | 455 |
Ending balance | 858 | 498 | 858 | 498 |
Business Activities Loans - Municipal | ||||
Beginning balance | 56 | 64 | 61 | 61 |
Provision | (3) | (16) | (8) | (13) |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 53 | 48 | 53 | 48 |
Business Activities Loans - Consumer | ||||
Beginning balance | 89 | 123 | 124 | 117 |
Provision | 17 | 1 | 1 | 30 |
Charge-offs | (17) | (17) | (46) | (47) |
Recoveries | 5 | 6 | 15 | 13 |
Ending balance | 94 | 113 | 94 | 113 |
Business Activities Loans - Unallocated | ||||
Beginning balance | 334 | 369 | 482 | 409 |
Provision | (19) | 55 | (167) | 15 |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 315 | 424 | 315 | 424 |
Business Activities Loans - Totals | ||||
Beginning balance | 5,478 | 4,915 | 5,481 | 5,337 |
Provision | 314 | 541 | 801 | 430 |
Charge-offs | (217) | (191) | (753) | (962) |
Recoveries | 38 | 121 | 84 | 581 |
Ending balance | 5,613 | 5,386 | 5,613 | 5,386 |
Acquired Loans - Residential | ||||
Beginning balance | 69 | 15 | 79 | |
Provision | 5 | 55 | (5) | 70 |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 74 | 70 | 74 | 70 |
Acquired Loans - Commercial | ||||
Beginning balance | 134 | 77 | 132 | 7 |
Provision | 37 | 81 | 133 | 151 |
Charge-offs | (98) | |||
Recoveries | 5 | 4 | 5 | |
Ending balance | 171 | 163 | 171 | 163 |
Acquired Activities Loans - Land | ||||
Beginning balance | ||||
Provision | ||||
Charge-offs | ||||
Recoveries | ||||
Ending balance | ||||
Acquired Loans - Real estate | ||||
Beginning balance | 203 | 92 | 211 | 7 |
Provision | 42 | 136 | 128 | 221 |
Charge-offs | (98) | |||
Recoveries | 5 | 4 | 5 | |
Ending balance | 245 | 223 | 245 | 223 |
Acquired Loans - Commercial and industrial | ||||
Beginning balance | 37 | 52 | 24 | 14 |
Provision | (11) | (22) | 403 | |
Charge-offs | (416) | |||
Recoveries | 8 | 10 | 23 | 26 |
Ending balance | 34 | 40 | 34 | 40 |
Acquired Loans - Municipal | ||||
Beginning balance | ||||
Provision | ||||
Charge-offs | ||||
Recoveries | ||||
Ending balance | ||||
Acquired Loans - Consumer | ||||
Beginning balance | ||||
Provision | ||||
Charge-offs | ||||
Recoveries | ||||
Ending balance | ||||
Acquired Loans - Unallocated | ||||
Beginning balance | ||||
Provision | ||||
Charge-offs | ||||
Recoveries | ||||
Ending balance | ||||
Acquired Loans - Total | ||||
Beginning balance | 240 | 144 | 235 | 21 |
Provision | 31 | 114 | 531 | 221 |
Charge-offs | (514) | |||
Recoveries | 9 | 15 | 27 | 31 |
Ending balance | $ 279 | $ 273 | $ 279 | $ 273 |
LOANS - Composition of loans 37
LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Business Activities Loans - Collectively evaluated Loans | ||
Residential 1-4 family | $ 280,711 | $ 253,156 |
Residential 5+ multifamily | 5,860 | 4,640 |
Construction of residential 1-4 family | 9,824 | 7,998 |
Home equity lines credit | 34,674 | 34,298 |
Residential real estate | 331,069 | 300,092 |
Commercial | 158,185 | 125,173 |
Construction of commercial | 3,949 | 6,403 |
Commercial real estate | 162,134 | 131,576 |
Farm land | 3,025 | 2,162 |
Vacant land | 5,589 | 5,486 |
Real estate secured | 501,817 | 439,316 |
Commercial and industrial | 101,063 | 74,131 |
Municipal | 8,475 | 9,566 |
Consumer | 5,593 | 6,115 |
Unallocated allowance | ||
Totals | 616,948 | 529,128 |
Business Activities Loans - Collectively evaluated Allowance | ||
Residential 1-4 family | 1,698 | 1,415 |
Residential 5+ multifamily | 54 | 33 |
Construction of residential 1-4 family | 85 | 65 |
Home equity lines credit | 324 | 286 |
Residential real estate | 2,161 | 1,799 |
Commercial | 1,646 | 1,265 |
Construction of commercial | 48 | 87 |
Commercial real estate | 1,694 | 1,352 |
Farm land | 27 | 23 |
Vacant land | 166 | 122 |
Real estate secured | 4,048 | 3,296 |
Commercial and industrial | 853 | 673 |
Municipal | 53 | 61 |
Consumer | 94 | 124 |
Unallocated allowance | 315 | 482 |
Totals | 5,363 | 4,636 |
Business Activities Loans - Individually evaluated Loans | ||
Residential 1-4 family | 5,952 | 8,339 |
Residential 5+ multifamily | 1,830 | 1,771 |
Construction of residential 1-4 family | ||
Home equity lines credit | 796 | 719 |
Residential real estate | 8,578 | 10,829 |
Commercial | 4,417 | 4,273 |
Construction of commercial | 117 | 122 |
Commercial real estate | 4,534 | 4,395 |
Farm land | 1,008 | 1,031 |
Vacant land | 241 | 3,077 |
Real estate secured | 14,361 | 19,332 |
Commercial and industrial | 83 | 526 |
Municipal | ||
Consumer | 80 | |
Unallocated allowance | ||
Totals | 14,444 | 19,938 |
Business Activities Loans - Individually evaluated Allowance | ||
Residential 1-4 family | 147 | 610 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | 17 | 68 |
Residential real estate | 164 | 678 |
Commercial | 69 | 113 |
Construction of commercial | 1 | |
Commercial real estate | 69 | 114 |
Farm land | 9 | 14 |
Vacant land | 4 | 29 |
Real estate secured | 246 | 835 |
Commercial and industrial | 4 | 10 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 250 | 845 |
Business Activities Loans - Total portfolio Loans | ||
Residential 1-4 family | 286,663 | 261,495 |
Residential 5+ multifamily | 7,690 | 6,411 |
Construction of residential 1-4 family | 9,824 | 7,998 |
Home equity lines credit | 35,470 | 35,017 |
Residential real estate | 339,647 | 310,921 |
Commercial | 162,602 | 129,446 |
Construction of commercial | 4,066 | 6,525 |
Commercial real estate | 166,668 | 135,971 |
Farm land | 4,033 | 3,193 |
Vacant land | 5,830 | 8,563 |
Real estate secured | 516,178 | 458,648 |
Commercial and industrial | 101,146 | 74,657 |
Municipal | 8,475 | 9,566 |
Consumer | 5,593 | 6,195 |
Unallocated allowance | ||
Totals | 631,392 | 549,066 |
Business Activities Loans - Total portfolio Allowance | ||
Residential 1-4 family | 1,845 | 2,025 |
Residential 5+ multifamily | 54 | 33 |
Construction of residential 1-4 family | 85 | 65 |
Home equity lines credit | 341 | 354 |
Residential real estate | 2,325 | 2,477 |
Commercial | 1,715 | 1,378 |
Construction of commercial | 48 | 88 |
Commercial real estate | 1,763 | 1,466 |
Farm land | 36 | 37 |
Vacant land | 170 | 151 |
Real estate secured | 4,294 | 4,131 |
Commercial and industrial | 857 | 683 |
Municipal | 53 | 61 |
Consumer | 94 | 124 |
Unallocated allowance | 315 | 482 |
Totals | 5,613 | 5,481 |
Acquired Loans - Collectively evaluated Loans | ||
Residential 1-4 family | 6,244 | 7,023 |
Residential 5+ multifamily | 5,741 | 6,136 |
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | 11,985 | 13,159 |
Commercial | 74,858 | 81,300 |
Construction of commercial | 1,881 | 4,612 |
Commercial real estate | 76,739 | 85,912 |
Farm land | ||
Vacant land | ||
Real estate secured | 88,724 | 99,071 |
Commercial and industrial | 29,676 | 45,650 |
Municipal | ||
Consumer | 52 | 61 |
Unallocated allowance | ||
Totals | 118,452 | 144,782 |
Acquired Loans - Collectively evaluated Allowance | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | ||
Commercial | 22 | 19 |
Construction of commercial | 3 | 4 |
Commercial real estate | 25 | 23 |
Farm land | ||
Vacant land | ||
Real estate secured | 25 | 23 |
Commercial and industrial | 26 | 24 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 51 | 47 |
Acquired Loans - Individually evaluated Loans | ||
Residential 1-4 family | 779 | 776 |
Residential 5+ multifamily | 123 | |
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | 902 | 776 |
Commercial | 2,955 | 2,742 |
Construction of commercial | 258 | 262 |
Commercial real estate | 3,213 | 3,004 |
Farm land | ||
Vacant land | ||
Real estate secured | 4,115 | 3,780 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 4,115 | 3,780 |
Acquired Loans - Individually evaluated Allowance | ||
Residential 1-4 family | 74 | 79 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | 74 | 79 |
Commercial | 82 | 107 |
Construction of commercial | ||
Commercial real estate | 82 | 107 |
Farm land | ||
Vacant land | ||
Real estate secured | 156 | 186 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 156 | 186 |
Acquired Loans - ASC 310-30 Loans | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | ||
Commercial | 3,928 | 4,787 |
Construction of commercial | ||
Commercial real estate | 3,928 | 4,787 |
Farm land | ||
Vacant land | ||
Real estate secured | 3,928 | 4,787 |
Commercial and industrial | 332 | 1,114 |
Municipal | ||
Consumer | 16 | 16 |
Unallocated allowance | ||
Totals | 4,276 | 5,917 |
Acquired Loans - ASC 310-30 loans Allowance | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | ||
Commercial | 64 | 2 |
Construction of commercial | ||
Commercial real estate | 64 | 2 |
Farm land | ||
Vacant land | ||
Real estate secured | 64 | 2 |
Commercial and industrial | 9 | |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 72 | 2 |
Acquired Loans - Total portfolio Loans | ||
Residential 1-4 family | 7,023 | 7,799 |
Residential 5+ multifamily | 5,864 | 6,136 |
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | 12,887 | 13,935 |
Commercial | 81,741 | 88,829 |
Construction of commercial | 2,139 | 4,874 |
Commercial real estate | 83,880 | 93,703 |
Farm land | ||
Vacant land | ||
Real estate secured | 96,767 | 107,638 |
Commercial and industrial | 30,008 | 46,764 |
Municipal | ||
Consumer | 68 | 77 |
Unallocated allowance | ||
Totals | 126,843 | 154,479 |
Acquired Loans - Total portfolio Allowance | ||
Residential 1-4 family | 74 | 79 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | 74 | 79 |
Commercial | 168 | 128 |
Construction of commercial | 3 | 4 |
Commercial real estate | 171 | 132 |
Farm land | ||
Vacant land | ||
Real estate secured | 245 | 211 |
Commercial and industrial | 34 | 24 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 279 | $ 235 |
LOANS - Credit quality segments
LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Business Activities Loans - Collectively evaluated Loans | ||
Performing loans | $ 612,039 | $ 527,905 |
Potential problem loans | 4,909 | 1,223 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 616,948 | 529,128 |
Business Activities Loans - Collectively evaluated Allowance | ||
Performing loans | 4,849 | 4,110 |
Potential problem loans | 200 | 44 |
Impaired loans | ||
Unallocated allowance | 315 | 482 |
Totals | 5,364 | 4,636 |
Business Activities Loans - Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 14,444 | 19,938 |
Unallocated allowance | ||
Totals | 14,444 | 19,938 |
Business Activities Loans - Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 250 | 845 |
Unallocated allowance | ||
Totals | 250 | 845 |
Business Activities Loans - Total portfolio Loans | ||
Performing loans | 612,039 | 527,905 |
Potential problem loans | 4,909 | 1,223 |
Impaired loans | 14,444 | 19,938 |
Unallocated allowance | ||
Totals | 631,392 | 549,066 |
Business Activities Loans - Total portfolio Allowance | ||
Performing loans | 4,849 | 4,110 |
Potential problem loans | 200 | 44 |
Impaired loans | 250 | 845 |
Unallocated allowance | 315 | 482 |
Totals | 5,614 | 5,481 |
Acquired Loans - Collectively evaluated Loans | ||
Performing loans | 120,106 | 148,580 |
Potential problem loans | 2,622 | 2,119 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 122,728 | 150,699 |
Acquired Loans - Collectively evaluated Allowance | ||
Performing loans | 70 | 46 |
Potential problem loans | 53 | 2 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 123 | 48 |
Acquired Loans - Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 4,115 | 3,780 |
Unallocated allowance | ||
Totals | 4,115 | 3,780 |
Acquired Loans - Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 156 | 187 |
Unallocated allowance | ||
Totals | 156 | 187 |
Acquired Loans - Total portfolio Loans | ||
Performing loans | 120,106 | 148,580 |
Potential problem loans | 2,622 | 2,119 |
Impaired loans | 4,115 | 3,780 |
Unallocated allowance | ||
Totals | 126,843 | 154,479 |
Acquired Loans - Total portfolio Allowance | ||
Performing loans | 70 | 46 |
Potential problem loans | 53 | 2 |
Impaired loans | 156 | 187 |
Unallocated allowance | ||
Totals | $ 279 | $ 235 |
LOANS - Certain data with respe
LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Book | ||
Residential 1-4 family | $ 5,530 | $ 7,482 |
Home equity lines of credit | 410 | 535 |
Residential real estate | 5,940 | 8,017 |
Commercial | 3,568 | 3,131 |
Commercial construction | 122 | |
Farm land | 723 | 733 |
Vacant land | 46 | 2,870 |
Real estate secured | 10,277 | 14,873 |
Commercial and industrial | 4 | 95 |
Consumer | ||
Totals | 10,281 | 14,968 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Note | ||
Residential 1-4 family | 6,080 | 8,094 |
Home equity lines of credit | 436 | 659 |
Residential real estate | 6,516 | 8,753 |
Commercial | 3,958 | 3,405 |
Commercial construction | 128 | |
Farm land | 784 | 773 |
Vacant land | 46 | 3,836 |
Real estate secured | 11,304 | 16,895 |
Commercial and industrial | 4 | 98 |
Consumer | ||
Totals | 11,308 | 16,993 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Average | ||
Residential 1-4 family | 6,418 | 6,213 |
Home equity lines of credit | 463 | 176 |
Residential real estate | 6,881 | 6,389 |
Commercial | 3,393 | 2,629 |
Commercial construction | 72 | |
Farm land | 440 | 445 |
Vacant land | 2,305 | 3,058 |
Real estate secured | 13,091 | 12,521 |
Commercial and industrial | 40 | 120 |
Consumer | ||
Totals | 13,131 | 12,641 |
Business Activities Loans - Impaired loans with specific allowance - Specific allowance | ||
Residential 1-4 family | 147 | 610 |
Home equity lines of credit | 17 | 68 |
Residential real estate | 164 | 678 |
Commercial | 69 | 113 |
Commercial construction | 1 | |
Farm land | 9 | 14 |
Vacant land | 4 | 29 |
Real estate secured | 246 | 835 |
Commercial and industrial | 4 | 10 |
Consumer | ||
Totals | 250 | 845 |
Business Activities Loans - Impaired loans with specific allowance - Income recognized | ||
Residential 1-4 family | 72 | 109 |
Home equity lines of credit | 1 | 6 |
Residential real estate | 73 | 115 |
Commercial | 73 | 113 |
Commercial construction | ||
Farm land | ||
Vacant land | 2 | 2 |
Real estate secured | 148 | 230 |
Commercial and industrial | 8 | |
Consumer | ||
Totals | 148 | 238 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Book | ||
Residential 1-4 family | 2,252 | 2,628 |
Home equity lines of credit | 386 | 184 |
Residential real estate | 2,638 | 2,812 |
Commercial | 849 | 1,142 |
Commercial construction | 117 | |
Farm land | 286 | 298 |
Vacant land | 195 | 207 |
Real estate secured | 4,085 | 4,459 |
Commercial and industrial | 78 | 431 |
Consumer | 80 | |
Totals | 4,163 | 4,970 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Note | ||
Residential 1-4 family | 2,409 | 2,770 |
Home equity lines of credit | 419 | 199 |
Residential real estate | 2,828 | 2,969 |
Commercial | 1,106 | 1,393 |
Commercial construction | 123 | |
Farm land | 358 | 352 |
Vacant land | 232 | 241 |
Real estate secured | 4,647 | 4,955 |
Commercial and industrial | 106 | 481 |
Consumer | 108 | |
Totals | 4,753 | 5,544 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Average | ||
Residential 1-4 family | 2,683 | 3,043 |
Home equity lines of credit | 346 | 611 |
Residential real estate | 3,029 | 3,654 |
Commercial | 996 | 2,130 |
Commercial construction | 47 | 127 |
Farm land | 580 | 270 |
Vacant land | 201 | 5 |
Real estate secured | 4,853 | 6,186 |
Commercial and industrial | 217 | 464 |
Consumer | 8 | |
Totals | 5,078 | 6,650 |
Business Activities Loans - Impaired loans with no specific allowance - Income recognized | ||
Residential 1-4 family | 69 | 82 |
Home equity lines of credit | 5 | 2 |
Residential real estate | 74 | 84 |
Commercial | 17 | 12 |
Commercial construction | 5 | 6 |
Farm land | 15 | |
Vacant land | 8 | 7 |
Real estate secured | 104 | 124 |
Commercial and industrial | 2 | 7 |
Consumer | ||
Totals | 106 | 131 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Book | ||
Residential 1-4 family | 779 | 599 |
Home equity lines of credit | ||
Residential real estate | 779 | 599 |
Commercial | 1,146 | 675 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 1,925 | 1,274 |
Commercial and industrial | ||
Consumer | ||
Totals | 1,925 | 1,274 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Note | ||
Residential 1-4 family | 893 | 716 |
Home equity lines of credit | ||
Residential real estate | 893 | 716 |
Commercial | 1,557 | 826 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 2,450 | 1,542 |
Commercial and industrial | ||
Consumer | ||
Totals | 2,450 | 1,542 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Average | ||
Residential 1-4 family | 637 | 176 |
Home equity lines of credit | ||
Residential real estate | 637 | 176 |
Commercial | 577 | 557 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 1,214 | 733 |
Commercial and industrial | 100 | 4 |
Consumer | ||
Totals | 1,314 | 737 |
Acquired Loans - Impaired loans with specific allowance - Specific allowance | ||
Residential 1-4 family | 74 | 79 |
Home equity lines of credit | ||
Residential real estate | 74 | 79 |
Commercial | 82 | 107 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 156 | 186 |
Commercial and industrial | ||
Consumer | ||
Totals | 156 | 186 |
Acquired Loans - Impaired loans with specific allowance - Income recognized | ||
Residential 1-4 family | 3 | |
Home equity lines of credit | ||
Residential real estate | 3 | |
Commercial | 111 | 61 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 114 | 61 |
Commercial and industrial | 1 | |
Consumer | ||
Totals | 114 | 62 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Book | ||
Residential 1-4 family | 123 | 177 |
Home equity lines of credit | ||
Residential real estate | 123 | 177 |
Commercial | 1,809 | 2,067 |
Commercial construction | 258 | 262 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,190 | 2,506 |
Commercial and industrial | ||
Consumer | ||
Totals | 2,190 | 2,506 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Note | ||
Residential 1-4 family | 123 | 177 |
Home equity lines of credit | ||
Residential real estate | 123 | 177 |
Commercial | 2,268 | 2,843 |
Commercial construction | 272 | 273 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,663 | 3,293 |
Commercial and industrial | 4 | |
Consumer | ||
Totals | 2,663 | 3,297 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Average | ||
Residential 1-4 family | 267 | 436 |
Home equity lines of credit | ||
Residential real estate | 267 | 436 |
Commercial | 2,085 | 2,097 |
Commercial construction | 259 | 138 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,611 | 2,671 |
Commercial and industrial | 24 | |
Consumer | ||
Totals | 2,635 | 2,671 |
Acquired Loans - Impaired loans with no specific allowance - Income recognized | ||
Residential 1-4 family | 4 | |
Home equity lines of credit | ||
Residential real estate | 4 | |
Commercial | 158 | 10 |
Commercial construction | 16 | |
Farm land | ||
Vacant land | ||
Real estate secured | 158 | 30 |
Commercial and industrial | ||
Consumer | ||
Totals | $ 158 | $ 30 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
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 | $ 666 | $ 609 |
Loans collateralized by residential real estate property in the process of foreclosure | $ 2,793 |
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, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | |
Residential mortgage loans serviced for others | $ 125,988 | $ 132,201 | |
Fair value of mortgage servicing rights | $ 962 | $ 1,429 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Mortgage Servicing Rights | |||||
Balance, beginning of period | $ 416 | $ 599 | $ 487 | $ 694 | |
Originated | 27 | 22 | 71 | 124 | |
Amortization (1) | [1] | (67) | (86) | (182) | (282) |
Balance, end of period | 376 | 535 | 376 | 535 | |
Valuation Allowance | |||||
Balance, beginning of period | (25) | (2) | (4) | 1 | |
(Increase) decrease in impairment reserve (1) | [1] | 8 | 2 | (13) | (2) |
Balance, end of period | (17) | (17) | |||
Loan servicing rights, net | $ 359 | $ 535 | $ 359 | $ 535 | |
[1] | (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net, in the consolidated statements of income. |
PLEDGED ASSETS - Securities and
PLEDGED ASSETS - Securities and loans pledged (Details) - Securities and loans pledged - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Securities available-for-sale (at fair value) | $ 65,357 | $ 67,750 |
Loans receivable | 196,077 | 153,269 |
Total pledged assets | $ 261,434 | $ 221,019 |
PLEDGED ASSETS (Details Narrati
PLEDGED ASSETS (Details Narrative) $ in Thousands | Sep. 30, 2016USD ($) |
Guarantees [Abstract] | |
Securities pledged to secure public deposits | $ 59,600 |
Securities pledged to secure repurchase agreements | 5,700 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 1,922 | $ 1,985 | $ 5,165 | $ 6,290 |
Less: Preferred stock dividends declared | (40) | (120) | ||
Net income available to common shareholders | 1,922 | 1,945 | 5,165 | 6,170 |
Less: Undistributed earnings allocated to participating securities | (15) | (17) | (41) | (54) |
Net income allocated to common stock | 1,907 | 1,928 | 5,124 | 6,116 |
Weighted-average common shares issued | 2,758 | 2,731 | 2,754 | 2,728 |
Less: Unvested restricted stock awards | (21) | (24) | (22) | (24) |
Weighted average common shares outstanding used to calculate basic earnings per common share | 2,737 | 2,707 | 2,732 | 2,704 |
Add: Dilutive effect of stock options | 14 | 17 | 15 | 17 |
Weighted-average common shares outstanding used to calculate diluted earnings per common share | $ 2,751 | $ 2,724 | $ 2,747 | $ 2,721 |
Earnings per common share (basic) | $ .70 | $ .71 | $ 1.88 | $ 2.26 |
Earnings per common share (diluted) | $ .69 | $ .71 | $ 1.87 | $ 2.25 |
SHAREHOLDERS' EQUITY - Actual r
SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Salisbury | |||
Total Capital (to risk-weighted assets) | |||
Actual - Amount | $ 94,948 | $ 92,030 | |
Actual - Ratio | 13.25% | 13.51% | |
For Capital Adequacy - Amount | $ 57,330 | $ 54,509 | |
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 | $ 78,875 | $ 76,120 | |
Actual - Ratio | 11.01% | 11.17% | |
For Capital Adequacy - Amount | $ 42,997 | $ 40,878 | |
For Capital Adequacy - Ratio | 6.00% | 6.00% | |
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 | $ 78,875 | $ 76,120 | |
Actual - Ratio | 11.01% | 11.17% | |
For Capital Adequacy - Amount | $ 41,868 | $ 30,659 | |
For Capital Adequacy - Ratio | 4.50% | 4.50% | |
To Be Well Capitalized - Amount | |||
To Be Well Capitalized - Ratio | |||
Tier 1 Capital (to average assets) | |||
Actual - Amount | $ 78,875 | $ 76,120 | |
Actual - Ratio | 8.47% | 8.56% | |
For Capital Adequacy - Amount | $ 37,216 | $ 36,102 | |
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 | $ 89,249 | $ 92,739 | |
Actual - Ratio | 13.10% | 12.94% | |
For Capital Adequacy - Amount | $ 54,504 | $ 57,330 | |
For Capital Adequacy - Ratio | 8.00% | 8.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 68,131 | $ 71,662 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 10.00% | 10.00% | |
Tier 1 Capital (to risk-weighted assets) | |||
Actual - Amount | $ 83,340 | $ 86,666 | |
Actual - Ratio | 12.23% | 12.09% | |
For Capital Adequacy - Amount | $ 40,878 | $ 42,997 | |
For Capital Adequacy - Ratio | 6.00% | 6.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 54,504 | $ 57,329 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 8.00% | 8.00% | |
Common Equity Tier 1 Capital (to risk-weighted assets) | |||
Actual - Amount | $ 83,340 | $ 86,666 | |
Actual - Ratio | 12.23% | 12.09% | |
For Capital Adequacy - Amount | $ 30,659 | $ 41,871 | |
For Capital Adequacy - Ratio | 4.50% | 4.50% | |
To Be Well Capitalized - Amount | $ 44,285 | $ 60,481 | |
To Be Well Capitalized - Ratio | 6.50% | 6.50% | |
Tier 1 Capital (to average assets) | |||
Actual - Amount | $ 83,340 | $ 86,666 | |
Actual - Ratio | 9.37% | 9.30% | |
For Capital Adequacy - Amount | $ 35,593 | $ 37,219 | |
For Capital Adequacy - Ratio | 4.00% | 4.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 44,491 | $ 46,524 | |
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 | 3 Months Ended | |
Dec. 31, 2015 | Aug. 31, 2011 | |
Series B Preferred Stock issued to Treasury under SBLF program | $ 16,000 | |
Completed offering of unsecured fixed-to-floating rate subordinated notes | $ 10,000 | |
Senior Non-Cumulative Perpetual Preferred Stock redeemed | $ 16,000 |
BENEFITS (Details Narrative)
BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2014 | Feb. 16, 2016 | Jan. 29, 2016 | Jan. 26, 2016 | Sep. 28, 2015 | Mar. 27, 2015 | Feb. 25, 2015 | Feb. 17, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
401(k) Plan contribution expense | $ 179 | $ 166 | $ 568 | $ 516 | ||||||||
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements | 19 | 22 | 56 | 53 | ||||||||
Excess assets distributed to 401k and ESOP for future allocations to employees | $ 1,018 | |||||||||||
Employee Stock Ownership Plan (ESOP) | ||||||||||||
ESOP expense | 51 | 96 | 132 | 287 | ||||||||
Other Retirement Plans | ||||||||||||
Discretionary contribution to Executives' account | 56 | 34 | 168 | 95 | ||||||||
Phantom Stock Appreciation Units granted | 47,470 | |||||||||||
Grants of Restricted Stock and Options | ||||||||||||
Stock options exercised by former Riverside Bank executives, shares | 1,350 | 2,700 | 2,700 | 5,400 | 1,350 | |||||||
Stock options exercised by former Riverside Bank executives, price per share | $ 21.48 | $ 21.48 | $ 21.48 | $ 18.52 | $ 18.52 | |||||||
Shares of restricted stock granted pursuant to 2011 Long Term Incentive Plan | 15,800 | 1,000 | ||||||||||
Fair value of the stock as of the grant date | $ 466 | $ 29 | ||||||||||
Expense related to grants of restricted stock and options | 57 | 52 | 164 | 167 | ||||||||
Unrecognized compensation cost relating to awards | $ 431 | $ 186 | $ 431 | $ 186 | ||||||||
Forfeiture of restricted common stock, shares | (100) | (300) |
ACCUMULATED OTHER COMPREHENSI49
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of accumulated other comprehensive income (Details) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Unrealized gains on securities available-for-sale, net of tax | $ 883 | $ 1,125 |
Accumulated other comprehensive income, net | $ 883 | $ 1,125 |
FAIR VALUE OF ASSETS AND LIAB50
FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Measurements Using - Level 1 | ||
Assets at fair value on a recurring basis | ||
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 | ||
Corporate bonds | ||
Preferred stock | 241 | 246 |
Securities available-for-sale | 241 | 246 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | ||
Mortgage servicing rights | ||
Fair Value Measurements Using - Level 2 | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury notes | 2,541 | |
U.S. Government agency notes | 498 | |
Municipal bonds | 18,604 | 30,385 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 48,176 | 32,202 |
Collateralized mortgage obligations: U.S. Government agencies | 1,604 | 2,014 |
Collateralized mortgage obligations: Non-agency | 4,032 | 4,948 |
SBA bonds | 2,286 | 3,096 |
CRA mutual funds | 838 | 764 |
Corporate bonds | 1,020 | |
Preferred stock | ||
Securities available-for-sale | 76,560 | 76,448 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | ||
Mortgage servicing rights | 962 | |
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 | ||
Corporate bonds | ||
Preferred stock | ||
Securities available-for-sale | ||
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | 11,801 | 15,211 |
Mortgage servicing rights | 1,315 | |
Assets at fair value | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury notes | 2,541 | |
U.S. Government agency notes | 498 | |
Municipal bonds | 18,604 | 30,385 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 48,176 | 32,202 |
Collateralized mortgage obligations: U.S. Government agencies | 1,604 | 2,014 |
Collateralized mortgage obligations: Non-agency | 4,032 | 4,948 |
SBA bonds | 2,286 | 3,096 |
CRA mutual funds | 838 | 764 |
Corporate bonds | 1,020 | |
Preferred stock | 241 | 246 |
Securities available-for-sale | 76,801 | 76,694 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | 11,801 | 15,211 |
Mortgage servicing rights | $ 962 | $ 1,315 |
FAIR VALUE OF ASSETS AND LIAB51
FAIR VALUE OF ASSETS AND LIABILITIES - Carrying value and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Carrying value | ||
Financial Assets | ||
Cash and cash equivalents | $ 42,638 | $ 62,118 |
Securities available-for-sale | 76,801 | 76,694 |
Federal Home Loan Bank stock | 2,937 | 3,176 |
Loans held-for-sale | 837 | 763 |
Loans receivable, net | 753,623 | 699,018 |
Accrued interest receivable | 2,260 | 2,307 |
Cash surrender value of life insurance | 13,952 | 13,685 |
Mortgage servicing rights | 359 | 597 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 210,396 | 201,340 |
Demand (interest-bearing) | 126,064 | 125,465 |
Money market | 201,504 | 183,783 |
Savings and other | 127,595 | 119,651 |
Certificates of deposit | 121,171 | 124,294 |
Deposits | 786,730 | 754,533 |
Repurchase agreements | 3,581 | 3,914 |
FHLBB advances | 27,134 | 26,979 |
Subordinated debt | 9,782 | 9,764 |
Note payable | 351 | 376 |
Capital lease liability | 419 | 422 |
Accrued interest payable | 275 | 150 |
Estimated fair value | ||
Financial Assets | ||
Cash and cash equivalents | 42,638 | 62,118 |
Securities available-for-sale | 76,801 | 76,694 |
Federal Home Loan Bank stock | 2,937 | 3,176 |
Loans held-for-sale | 852 | 778 |
Loans receivable, net | 765,433 | 707,154 |
Accrued interest receivable | 2,260 | 2,307 |
Cash surrender value of life insurance | 13,952 | 13,685 |
Mortgage servicing rights | 962 | 1,383 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 210,396 | 201,340 |
Demand (interest-bearing) | 126,064 | 125,465 |
Money market | 201,504 | 183,783 |
Savings and other | 127,595 | 119,651 |
Certificates of deposit | 122,448 | 125,437 |
Deposits | 788,007 | 755,676 |
Repurchase agreements | 3,581 | 3,914 |
FHLBB advances | 28,004 | 28,559 |
Subordinated debt | 10,432 | 9,764 |
Note payable | 385 | 405 |
Capital lease liability | 903 | 870 |
Accrued interest payable | 275 | 150 |
Fair Value Measurements Using - Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 42,638 | 62,118 |
Securities available-for-sale | 241 | 246 |
Federal Home Loan Bank stock | ||
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | 2,260 | 2,307 |
Cash surrender value of life insurance | 13,952 | 13,685 |
Mortgage servicing rights | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | ||
Demand (interest-bearing) | ||
Money market | ||
Savings and other | ||
Certificates of deposit | ||
Deposits | ||
Repurchase agreements | ||
FHLBB advances | ||
Subordinated debt | ||
Note payable | ||
Capital lease liability | ||
Accrued interest payable | 275 | 150 |
Fair Value Measurements Using - Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | ||
Securities available-for-sale | 76,560 | 76,448 |
Federal Home Loan Bank stock | 2,937 | 3,176 |
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance | ||
Mortgage servicing rights | 962 | 1,383 |
Financial Liabilities | ||
Demand (non-interest-bearing) | ||
Demand (interest-bearing) | ||
Money market | ||
Savings and other | ||
Certificates of deposit | ||
Deposits | ||
Repurchase agreements | ||
FHLBB advances | ||
Subordinated debt | ||
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 | 852 | 778 |
Loans receivable, net | 765,433 | 707,154 |
Accrued interest receivable | ||
Cash surrender value of life insurance | ||
Mortgage servicing rights | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | 210,396 | 201,340 |
Demand (interest-bearing) | 126,064 | 125,465 |
Money market | 201,504 | 183,783 |
Savings and other | 127,595 | 119,651 |
Certificates of deposit | 122,448 | 125,437 |
Deposits | 788,007 | 755,676 |
Repurchase agreements | 3,581 | 3,914 |
FHLBB advances | 28,004 | 28,559 |
Subordinated debt | 10,432 | 9,764 |
Note payable | 385 | 405 |
Capital lease liability | 903 | 870 |
Accrued interest payable |
SUBSEQUENT EVENT (Details Narra
SUBSEQUENT EVENT (Details Narrative) - Declaration of dividend | Oct. 28, 2016$ / shares |
Common stock dividend declared | $ .28 |
Dividend payable date | Nov. 25, 2016 |