Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 15, 2017 | |
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 | Mar. 31, 2017 | |
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 | 2,782,842 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and due from banks | $ 6,376 | $ 5,434 | |
Interest bearing demand deposits with other banks | 34,916 | 30,051 | |
Total cash and cash equivalents | 41,292 | 35,485 | |
Securities | |||
Available-for-sale at fair value | 76,849 | 79,623 | |
Federal Home Loan Bank of Boston stock at cost | 3,510 | 3,211 | |
Loans held-for-sale | 53 | ||
Loans receivable, net (allowance for loan losses: $6,285 and $6,127) | 764,665 | 763,184 | |
Other real estate owned | 3,833 | 3,773 | |
Bank premises and equipment, net | 14,574 | 14,398 | |
Goodwill | 12,552 | 12,552 | |
Intangible assets (net of accumulated amortization: $3,638 and $3,511) | 1,611 | 1,737 | |
Accrued interest receivable | 2,431 | 2,424 | |
Cash surrender value of life insurance policies | 14,126 | 14,038 | |
Deferred taxes | 1,361 | 1,367 | |
Other assets | 2,692 | 3,574 | |
Total Assets | 939,549 | 935,366 | |
Deposits | |||
Demand (non-interest bearing) | 201,215 | 218,420 | |
Demand (interest bearing) | 132,527 | 127,854 | |
Money market | 182,438 | 182,476 | |
Savings and other | 141,085 | 135,435 | |
Certificates of deposit | 115,151 | 117,585 | |
Total deposits | 772,416 | 781,770 | |
Repurchase agreements | 2,350 | 5,535 | |
Federal Home Loan Bank of Boston advances | 52,745 | 37,188 | |
Subordinated debt | 9,794 | 9,788 | [1] |
Note payable | 335 | 344 | |
Capital lease liability | 417 | 418 | |
Accrued interest and other liabilities | 6,271 | 6,316 | |
Total Liabilities | 844,328 | 841,359 | |
Shareholders' Equity | |||
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,770,036 and 2,758,086 | 277 | 276 | |
Paid-in capital | 42,394 | 42,085 | |
Retained earnings | 52,351 | 51,521 | |
Unearned compensation - restricted stock awards | (288) | (352) | |
Accumulated other comprehensive income, net | 487 | 477 | |
Total Shareholders' Equity | 95,221 | 94,007 | |
Total Liabilities and Shareholders' Equity | $ 939,549 | $ 935,366 | |
[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 | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Allowance for loan losses, loans receivable | $ 6,285 | $ 6,127 |
Accumulated amortization, intangible assets | $ 3,638 | $ 3,511 |
Shareholders' Equity | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 5,000,000 | 5,000,000 |
Common stock, issued | 2,770,036 | 2,758,086 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest and dividend income | ||
Interest and fees on loans | $ 8,342 | $ 7,930 |
Interest on debt securities | ||
Taxable | 317 | 293 |
Tax exempt | 164 | 286 |
Other interest and dividends | 83 | 74 |
Total interest and dividend income | 8,906 | 8,583 |
Interest expense | ||
Deposits | 515 | 509 |
Repurchase agreements | 1 | 1 |
Capital lease | 17 | 17 |
Note payable | 2 | 5 |
Subordinated debt | 156 | 156 |
Federal Home Loan Bank of Boston advances | 262 | 231 |
Total interest expense | 953 | 919 |
Net interest and dividend income | 7,953 | 7,664 |
Provision for loan losses | 352 | 463 |
Net interest and dividend income after provision for loan losses | 7,601 | 7,201 |
Non-interest income | ||
Trust and wealth advisory | 854 | 784 |
Service charges and fees | 962 | 702 |
Gains on sales of mortgage loans, net | 49 | 39 |
Mortgage servicing, net | 45 | 34 |
Gains on sales and calls of available-for-sale securities, net | 2 | |
Other | 113 | 114 |
Total non-interest income | 2,023 | 1,675 |
Non-interest expense | ||
Salaries | 2,890 | 2,573 |
Employee benefits | 1,088 | 1,088 |
Premises and equipment | 895 | 892 |
Data processing | 472 | 447 |
Professional fees | 717 | 380 |
Collections and other real estate owned | 301 | 186 |
FDIC insurance | 149 | 134 |
Marketing and community support | 251 | 201 |
Amortization of core deposit intangibles | 126 | 155 |
Other | 538 | 781 |
Total non-interest expense | 7,427 | 6,837 |
Income before income taxes | 2,197 | 2,039 |
Income tax provision | 593 | 527 |
Net income | 1,604 | 1,512 |
Net income allocated to common stock | $ 1,594 | $ 1,499 |
Basic earnings per common share | $ .58 | $ 0.55 |
Weighted average common shares outstanding, to calculate basic earnings per share | 2,749 | 2,723 |
Diluted earnings per common share | $ .58 | $ 0.55 |
Weighted average common shares outstanding, to calculate diluted earnings per share | 2,768 | 2,741 |
Common dividends per share | $ .28 | $ 0.28 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Net income | $ 1,604 | $ 1,512 | |
Other comprehensive income (loss) | |||
Net unrealized gains (losses) on securities available-for-sale | 16 | (68) | |
Reclassification of net realized gains (losses) in net income | [1] | (2) | |
Unrealized gains (losses) on securities available-for-sale | 16 | (70) | |
Income tax (expense) benefit | (6) | 24 | |
Unrealized gains (losses) on securities available-for-sale, net of tax | 10 | (46) | |
Comprehensive income | $ 1,614 | $ 1,466 | |
[1] | (1) Reclassification adjustments include realized security gains and losses. The gains and losses have been reclassified out of accumulated other comprehensive income (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 | Paid-in capital | Retained earnings | Unearned compensation - restricted stock awards | Accumulated other comprehensive income | Total shareholders' equity |
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 | 1,512 | 1,512 | ||||
Other comprehensive loss, net of tax | (46) | (46) | ||||
Common stock dividends declared | (772) | (772) | ||||
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 | |||||
Stock based compensation - restricted stock awards | 47 | 47 | ||||
Balance - Ending, amount at Mar. 31, 2016 | $ 275 | 41,915 | 48,662 | (529) | 1,079 | 91,402 |
Balance - Ending, shares at Mar. 31, 2016 | 2,753,426 | |||||
Balance - Beginning, amount at Dec. 31, 2016 | $ 276 | 42,085 | 51,521 | (352) | 477 | 94,007 |
Balance - Beginning, shares at Dec. 31, 2016 | 2,758,086 | |||||
Net income | 1,604 | 1,604 | ||||
Other comprehensive loss, net of tax | 10 | 10 | ||||
Common stock dividends declared | (774) | (774) | ||||
Stock options exercised, amount | $ 1 | 312 | 313 | |||
Stock options exercised, shares | 12,150 | |||||
Forfeiture of restricted stock awards, amount | (3) | 3 | ||||
Forfeiture of restricted stock awards, shares | (200) | |||||
Stock based compensation - restricted stock awards | 61 | 61 | ||||
Balance - Ending, amount at Mar. 31, 2017 | $ 277 | $ 42,394 | $ 52,351 | $ (288) | $ 487 | $ 95,221 |
Balance - Ending, shares at Mar. 31, 2017 | 2,770,036 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | ||
Net income | $ 1,604 | $ 1,512 |
(Accretion), amortization and depreciation: | ||
Securities | 42 | 60 |
Bank premises and equipment | 327 | 306 |
Core deposit intangible | 126 | 155 |
Modification fees on Federal Home Loan Bank of Boston advances | 57 | 58 |
Subordinated debt issuance costs | 6 | 6 |
Mortgage servicing rights | 68 | 51 |
Fair value adjustment on loans | (495) | (586) |
Fair value adjustment on deposits | (24) | (38) |
(Gains) and losses, including write-downs | ||
Gains on sales and calls of securities, available-for-sale, net | (2) | |
Gains on sales of loans, excluding capitalized servicing rights | (36) | (19) |
Write-downs of other real estate owned | 144 | |
Loss on sale/disposals of premises and equipment | 13 | |
Provision for loan losses | 352 | 463 |
Proceeds from loans sold | 1,881 | 1,787 |
Loans originated for sale | (1,898) | (1,188) |
Decrease (increase) in deferred loan origination fees and costs, net | 152 | (44) |
Mortgage servicing rights originated | (25) | (20) |
Increase in mortgage servicing rights impairment reserve | 2 | 20 |
Increase in interest receivable | (7) | (144) |
Increase (decrease) in prepaid expenses | (269) | 47 |
Increase in cash surrender value of life insurance policies | (88) | (90) |
Decrease in income tax receivable | 293 | 506 |
Decrease in other assets | 813 | 125 |
Decrease in accrued expenses | (130) | (113) |
Increase (decrease) in interest payable | 149 | (30) |
(Decrease) increase in other liabilities | (64) | 51 |
Stock based compensation - restricted stock awards | 61 | 47 |
Net cash provided by operating activities | 3,041 | 2,933 |
Investing Activities | ||
(Purchase) redemption of Federal Home Loan Bank stock | (299) | 59 |
Purchases of securities available-for-sale | (5,016) | (10,072) |
Proceeds from calls of securities available-for-sale | 2,990 | 5,351 |
Proceeds from maturities of securities available-for-sale | 4,774 | 2,253 |
Loan originations and principle collections, net | (1,777) | (29,674) |
Recoveries of loans previously charged off | 83 | 14 |
Capital expenditures | (503) | (644) |
Net cash provided (utilized) by investing activities | 252 | (32,713) |
Financing Activities | ||
(Decrease) increase in deposit transaction accounts, net | (6,920) | 3,330 |
Decrease in time deposits, net | (2,410) | (2,167) |
Decrease in securities sold under agreements to repurchase, net | (3,185) | (1,294) |
Federal Home Loan Bank of Boston advances | 15,500 | |
Principal payments on Federal Home Loan Bank of Boston advances | (6) | |
Principal payments on note payable | (9) | (11) |
Decrease in capital lease obligation | (1) | (2) |
Stock options exercised | 313 | 87 |
Common stock dividends paid | (774) | (772) |
Net cash provided (utilized) by financing activities | 2,514 | (835) |
Net increase (decrease) in cash and cash equivalents | 5,807 | (30,615) |
Cash and cash equivalents, beginning of period | 35,485 | 62,118 |
Cash and cash equivalents, end of period | 41,292 | 31,503 |
Cash paid during year | ||
Interest | 765 | 760 |
Income taxes | 300 | 258 |
Non-cash investing and financing activities | ||
Transfer from loans to other real estate owned | $ 204 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The interim (unaudited) consolidated financial statements of Salisbury Bancorp, Inc. ("Salisbury") include those of Salisbury and its wholly owned subsidiary, Salisbury Bank and Trust Company (the "Bank"). In the opinion of management, the interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position of Salisbury and the 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. In preparing the financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of condition, and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, 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 March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2016 Annual Report on Form 10-K for the year ended December 31, 2016. The allowance for loan losses is a significant accounting policy and is presented in the Notes to Consolidated Financial Statements and in Management’s Discussion and Analysis, which provides information on how significant assets are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions and estimates underlying those amounts, management has identified the determination of the allowance for loan losses to be the accounting area that requires the most subjective judgments, and as such could be most subject to revision as new information becomes available. Impact of New Accounting Pronouncements Issued In May 2014, August 2015, May 2016, and December 2016, respectively, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, 2015-14, 2016-12, and 2016-20, “Revenue from Contracts with Customers (Topic 606).” The objective of ASU 2014-09 is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before the original effective date (i.e. interim and annual reporting periods beginning after December 15, 2016). The amendments in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but rather affect only certain narrow aspects aimed to reduce the potential for diversity in practice at initial application and the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The amendments in ASU 2016-20 include technical corrections and improvements to Topic 606 and other Topics amended by ASU 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to ASU 2014-09. Salisbury is currently reviewing ASU 2014-09, 2015-14, 2016-12, and 2016-20 to determine if they will have an impact on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – overall (subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Early application is permitted as of the beginning of the fiscal year of adoption only for provisions (3) and (6) above. Early adoption of the other provisions mentioned above is not permitted. Salisbury does not expect ASU No. 2016-01 to have a material impact on the Company's Consolidated Financial Statements; however, the Company will continue to closely monitor developments and additional guidance. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. They have the option to use certain relief; full retrospective application is prohibited. Salisbury is currently evaluating this ASU to determine the impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. Some of the key provisions of this new ASU include: (1) companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. The guidance also eliminates the requirement that excess tax benefits be realized before companies can recognize them. In addition, the guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity; (2) increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance will also require an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows (current guidance did not specify how these cash flows should be classified); and (3) permit companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted, but all of the guidance must be adopted in the same period. Adoption of ASU 2016-09 did not have a material effect on the financial results for the first quarter of 2017. 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 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 2016-15, “Classification of Certain Cash Receipts and Cash Payments." This ASU is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU 2016-15 is not expected to have a material impact on Salisbury’s Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." This ASU is intended to simplify and improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. Under the revised guidance, an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. Entities will be required to apply on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Salisbury is currently evaluating the provisions of ASU 2016-16 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business." The amendments in this ASU are intended to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this ASU provide a screen to determine when a set of input, processes, and outputs is not a business and provides a framework to assist entities in evaluating whether both an input and a substantive process are present. ASU 2017-01 is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted for transactions for which the acquisition date occurs before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance, or for transactions in which a subsidiary is deconsolidated or a group of assets is derecognized that occur before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. Entities should apply the guidance prospectively on or after the effective date. Salisbury is currently evaluating the provisions of ASU 2017-01 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This ASU is intended to allow companies to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for public business entities that are SEC filers for fiscal years beginning after December 15, 2019 and interim periods within those years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Entities should apply the guidance prospectively. Salisbury is currently evaluating the provisions of ASU 2017-04 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In February 2017, the FASB issued ASU 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20).” This ASU is intended to clarify the scope of Subtopic 610-20 and to add guidance for partial sales of nonfinancial assets. ASU 2017-05 is effective for public entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Entities may apply the guidance either retrospectively or modified retrospectively. Salisbury is currently evaluating the provisions of ASU 2017-05 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU is intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost and provide additional guidance on the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets. The amendments in this Update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments require that an employer disaggregate the service cost component from the other components of net benefit cost. ASU 2017-07 is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. Entities should apply the guidance retrospectively. Salisbury is currently evaluating the provisions of ASU 2017-07 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This ASU will amend the amortization period for certain purchased callable debt securities held at a premium. The Board is shortening the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for public business entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. Entities should apply the guidance on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Salisbury is currently evaluating the provisions of ASU 2017-08 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized cost basis (1) Gross un- realized gains Gross un- realized losses Fair Value March 31, 2017 Available-for-sale Municipal bonds $ 12,816 $ 137 $ — $ 12,953 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 49,217 221 229 49,209 Collateralized mortgage obligations: U.S. Government agencies 6,360 3 — 6,363 Non-agency 2,997 419 9 3,407 SBA bonds 1,876 7 1 1,882 CRA mutual funds 838 — 16 822 Corporate bonds 2,000 41 — 2,041 Preferred stock 7 165 — 172 Total securities available-for-sale $ 76,111 $ 993 $ 255 $ 76,849 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,510 $ — $ — $ 3,510 (in thousands) Amortized cost basis (1) Gross un- realized gains Gross un- realized losses Fair Value December 31, 2016 Available-for-sale Municipal bonds $ 15,800 $ 197 $ 1 $ 15,996 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 53,407 229 335 53,301 Collateralized mortgage obligations: U.S. Government agencies 1,470 4 — 1,474 Non-agency 3,327 414 6 3,735 SBA bonds 2,056 9 1 2,064 CRA mutual funds 834 — 16 818 Corporate bonds 2,000 16 3 2,013 Preferred stock 7 215 — 222 Total securities available-for-sale $ 78,901 $ 1,084 $ 362 $ 79,623 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,211 $ — $ — $ 3,211 (1) Net of other-than-temporary impairment write-downs recognized in earnings. Salisbury did not sell any available-for-sale securities during the three month periods ended March 31, 2017 and March 31, 2016. 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 in other comprehensive loss, the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: March 31, 2017 (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Available-for-sale Mortgage-backed securities $ 30,690 $ 223 $ 246 $ 6 $ 30,936 $ 229 Collateralized mortgage obligations: Non-agency 44 5 305 4 349 9 SBA bonds 348 1 74 — 422 1 CRA funds 822 16 — — 822 16 Total temporarily impaired securities $ 31,904 $ 245 $ 625 $ 10 $ 32,529 $ 255 At March 31, 2017 there were no other than temporarily impaired securities with unrealized losses. Less than 12 Months 12 Months or Longer Total December 31, 2016 (in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Available-for-sale Municipal bonds $ 517 $ 1 $ — $ — $ 517 $ 1 Mortgage-backed securities 34,758 329 249 6 35,007 335 Collateralized mortgage obligations Non-agency 60 — 339 5 399 5 SBA bonds 475 1 — — 475 1 CRA mutual funds 818 16 — — 818 16 Corporate bonds 498 3 — — 498 3 Total temporarily impaired securities 37,126 350 588 11 37,714 361 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency 174 1 — — 174 1 Total temporarily impaired and other-than-temporarily impaired securities $ 37,300 $ 351 $ 588 $ 11 $ 37,888 $ 362 The amortized cost, fair value and tax equivalent yield of securities, by maturity, are as follows: March 31, 2017 (in thousands) Maturity Amortized cost Fair value Yield(1) Municipal bonds Within 1 year $ 75 $ 75 4.92 % After 1 year but within 5 years 869 873 5.48 After 10 years but within 15 years 4,478 4,522 6.64 After 15 years 7,394 7,483 6.73 Total 12,816 12,953 6.61 Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 49,217 49,209 2.35 Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 6,360 6,363 2.64 Non-agency 2,997 3,407 4.04 SBA bonds 1,876 1,882 3.48 CRA mutual funds 838 822 4.51 Corporate bonds After 5 years but within 10 years 2,000 2,041 5.50 Preferred stock 7 172 0.00 Securities available-for-sale $ 76,111 $ 76,849 3.29 % (1) Yield is based on amortized cost. Salisbury evaluates securities for OTTI where the fair value of a security is less than its amortized cost basis at the balance sheet date. As part of this process, Salisbury considers whether it has the intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, Salisbury recognizes an OTTI charge to earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. For securities that meet neither of these conditions, an analysis is performed to determine if any of these securities are at risk for OTTI. The following summarizes, by security type, the basis for evaluating if the applicable securities were OTTI at March 31, 2017. 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 the twenty securities with unrealized losses at March 31, 2017 to be OTTI. SBA bonds: The contractual cash flows are guaranteed by the U.S. government. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality since time of purchase. 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 evaluated the impairment status of these debt securities, and concluded that the gross unrealized losses on two positions were temporary in nature and does not consider these investments to be other-than temporarily impaired at March 31, 2017. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at March 31, 2017, 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 March 31, 2017. 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. CRA mutual funds consist of an investment in a fixed income mutual fund ($822 thousand in total fair value and $16 thousand in total unrealized losses as of March 31, 2017). The severity of the impairment (fair value is approximately 1.91% less than cost) and the duration of the impairment correlates with interest rates in 2017. Salisbury evaluated the near-term prospects of this fund in relation to the severity and duration of the impairment. Based on that evaluation, Salisbury does not consider this investment to be OTTI at March 31, 2017. The following table presents activity related to credit losses recognized into earnings on the non-agency CMOs held by Salisbury for which a portion of an OTTI charge was recognized in accumulated other comprehensive income: Three months ended March 31 (in thousands) 2017 2016 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 March 31, 2017. Deterioration of the FHLBB’s capital levels may require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
LOANS | NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: March 31, 2017 December 31, 2016 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 297,111 $ 6,016 $ 303,127 $ 295,030 $ 6,098 $ 301,128 Residential 5+ multifamily 9,938 5,526 15,464 7,976 5,649 13,625 Construction of residential 1-4 family 10,990 — 10,990 10,951 — 10,951 Home equity lines of credit 35,033 — 35,033 35,487 — 35,487 Residential real estate 353,072 11,542 364,614 349,444 11,747 361,191 Commercial 176,318 72,308 248,626 155,628 79,854 235,482 Construction of commercial 4,352 1,857 6,209 3,481 1,917 5,398 Commercial real estate 180,670 74,165 254,835 159,109 81,771 240,880 Farm land 4,599 — 4,599 3,914 — 3,914 Vacant land 6,567 — 6,567 6,600 — 6,600 Real estate secured 544,908 85,707 630,615 519,067 93,518 612,585 Commercial and industrial 107,491 17,869 125,360 121,144 20,329 141,473 Municipal 8,737 — 8,737 8,626 — 8,626 Consumer 5,080 63 5,143 5,312 68 5,380 Loans receivable, gross 666,216 103,639 769,855 654,149 113,915 768,064 Deferred loan origination fees and costs, net 1,095 — 1,095 1,247 — 1,247 Allowance for loan losses (5,966 ) (319 ) (6,285 ) (5,816 ) (311 ) (6,127 ) Loans receivable, net $ 661,345 $ 103,320 $ 764,665 $ 649,580 $ 113,604 $ 763,184 Loans held-for-sale Residential 1-4 family $ 53 $ — $ 53 $ — $ — $ — 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 March 31, 2017 Residential 1-4 family $ 288,103 $ 6,112 $ 2,896 $ — $ — $ 297,111 Residential 5+ multifamily 7,928 1,849 161 — — 9,938 Construction of residential 1-4 family 10,990 — — — — 10,990 Home equity lines of credit 33,938 852 243 — — 35,033 Residential real estate 340,959 8,813 3,300 — — 353,072 Commercial 166,867 3,720 5,731 — — 176,318 Construction of commercial 4,239 — 113 — — 4,352 Commercial real estate 171,106 3,720 5,844 — — 180,670 Farm land 3,605 — 994 — — 4,599 Vacant land 6,484 83 — — — 6,567 Real estate secured 522,154 12,616 10,138 — — 544,908 Commercial and industrial 106,007 1,286 198 — — 107,491 Municipal 8,737 — — — — 8,737 Consumer 5,060 20 — — — 5,080 Loans receivable, gross $ 641,958 $ 13,922 $ 10,336 $ — $ — $ 666,216 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2017 Residential 1-4 family $ 5,909 $ 107 $ — $ — $ — $ 6,016 Residential 5+ multifamily 5,526 — — — — 5,526 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 11,435 107 — — — 11,542 Commercial 64,985 2,590 4,733 — — 72,308 Construction of commercial 1,598 — 259 — — 1,857 Commercial real estate 66,583 2,590 4,992 — — 74,165 Farm land — — — — — — Vacant land — — — — — — Real estate secured 78,018 2,697 4,992 — — 85,707 Commercial and industrial 16,823 987 59 — — 17,869 Municipal — — — — — — Consumer 61 2 — — — 63 Loans receivable, gross $ 94,902 $ 3,686 $ 5,051 $ — $ — $ 103,639 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2016 Residential 1-4 family $ 285,939 $ 6,170 $ 2,832 $ 89 $ — $ 295,030 Residential 5+ multifamily 5,907 1,906 163 — — 7,976 Construction of residential 1-4 family 10,951 — — — — 10,951 Home equity lines of credit 34,299 512 676 — — 35,487 Residential real estate 337,096 8,588 3,671 89 — 349,444 Commercial 145,849 3,759 6,020 — — 155,628 Construction of commercial 3,366 — 115 — — 3,481 Commercial real estate 149,215 3,759 6,135 — — 159,109 Farm land 2,912 — 1,002 — — 3,914 Vacant land 6,513 87 — — — 6,600 Real estate secured 495,736 12,434 10,808 89 — 519,067 Commercial and industrial 118,804 1,734 606 — — 121,144 Municipal 8,626 — — — — 8,626 Consumer 5,288 24 — — — 5,312 Loans receivable, gross $ 628,454 $ 14,192 $ 11,414 $ 89 $ — $ 654,149 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2016 Residential 1-4 family $ 5,989 $ 109 $ — $ — $ — $ 6,098 Residential 5+ multifamily 5,649 — — — — 5,649 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 11,638 109 — — — 11,747 Commercial 70,007 4,059 5,788 — — 79,854 Construction of commercial 1,659 — 258 — — 1,917 Commercial real estate 71,666 4,059 6,046 — — 81,771 Farm land — — — — — — Vacant land — — — — — — Real estate secured 83,304 4,168 6,046 — — 93,518 Commercial and industrial 19,110 1,160 59 — — 20,329 Municipal — — — — — — Consumer 65 3 — — — 68 Loans receivable, gross $ 102,479 $ 5,331 $ 6,105 $ — $ — $ 113,915 The composition of loans receivable by delinquency status is as follows: Business Activities Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over March 31, 2017 Residential 1-4 family $ 291,506 $ 3,624 $ 519 $ — $ 1,462 $ 5,605 $ — $ 2,138 Residential 5+ multifamily 9,814 124 — — — 124 — 161 Construction of residential 1-4 family 10,990 — — — — — — — Home equity lines of credit 34,418 421 181 13 — 615 — 87 Residential real estate 346,728 4,169 700 13 1,462 6,344 — 2,386 Commercial 173,684 497 344 — 1,793 2,634 — 1,793 Construction of commercial 4,352 — — — — — — — Commercial real estate 178,036 497 344 — 1,793 2,634 — 1,793 Farm land 3,866 10 — — 723 733 — 994 Vacant land 6,522 45 — — — 45 — — Real estate secured 535,152 4,721 1,044 13 3,978 9,756 — 5,173 Commercial and industrial 106,963 129 343 30 26 528 30 26 Municipal 8,737 — — — — — — — Consumer 5,057 16 7 — — 23 — 4 Loans receivable, gross $ 655,909 $ 4,866 $ 1,394 $ 43 $ 4,004 $ 10,307 $ 30 $ 5,203 Acquired Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over March 31, 2017 Residential 1-4 family $ 5,920 $ 47 $ 49 $ — $ — $ 96 $ — $ — Residential 5+ multifamily 5,526 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,446 47 49 — — 96 — — Commercial 66,214 2,349 2,179 — 1,566 6,094 — 1,566 Construction of commercial 1,493 106 — 258 364 — 258 Commercial real estate 67,707 2,455 2,179 — 1,824 6,458 — 1,824 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 79,153 2,502 2,228 — 1,824 6,554 — 1,824 Commercial and industrial 16,911 958 — — — 958 — — Municipal — — — — — — — — Consumer 63 — — — — — — — Loans receivable, gross $ 96,127 $ 3,460 $ 2,228 $ — $ 1,824 $ 7,512 $ — $ 1,824 The composition of loans receivable by delinquency status is as follows: Business Activities Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over December 31, 2016 Residential 1-4 family $ 291,941 $ 1,161 $ 213 $ 327 $ 1,388 $ 3,089 $ 236 $ 1,920 Residential 5+ multifamily 7,976 — — — — — — 163 Construction of residential 1-4 family 10,951 — — — — — — — Home equity lines of credit 35,190 155 88 — 54 297 — 519 Residential real estate 346,058 1,316 301 327 1,442 3,386 236 2,602 Commercial 152,905 451 250 1,793 229 2,723 — 2,022 Construction of commercial 3,481 — — — — — — — Commercial real estate 156,386 451 250 1,793 229 2,723 — 2,022 Farm land 2,402 789 — — 723 1,512 — 1,002 Vacant land 6,575 25 — — — 25 — — Real estate secured 511,421 2,581 551 2,120 2,394 7,646 236 5,626 Commercial and industrial 120,719 140 239 46 — 425 20 27 Municipal 8,626 — — — — — — — Consumer 5,268 26 15 3 — 44 — 4 Loans receivable, gross $ 646,034 $ 2,747 $ 805 $ 2,169 $ 2,394 $ 8,115 $ 256 $ 5,657 Acquired Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over December 31, 2016 Residential 1-4 family $ 5,954 $ 144 $ — $ — $ — $ 144 $ — $ — Residential 5+ multifamily 5,649 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,603 144 — — — 144 — — Commercial 76,471 762 — 346 2,275 3,383 — 2,621 Construction of commercial 1,659 — — — 258 258 — 258 Commercial real estate 78,130 762 — 346 2,533 3,641 — 2,879 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 89,733 906 — 346 2,533 3,785 — 2,879 Commercial and industrial 19,904 425 — — — 425 — — Municipal — — — — — — — — Consumer 68 — — — — — — — Loans receivable, gross $ 109,705 $ 1,331 $ — $ 346 $ 2,533 $ 4,210 $ — $ 2,879 Interest on non-accrual loans that would have been recorded as additional interest income for the quarters ended March 31, 2017 and 2016 had the loans been current in accordance with their original terms totaled $117 thousand and $365 thousand, respectively. Troubled Debt Restructurings Troubled debt restructurings occurring during the periods are as follows: Business Activities Loans March 31, 2017 March 31, 2016 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate — $ — $ — 1 $ 89 $ 89 Commercial real estate — — — — — — Home equity lines of credit — — — — — — Troubled debt restructurings — $ — $ — 1 $ 89 $ 89 Refinance — $ — $ — 1 $ 89 $ 89 Rate reduction and term extension — — — — — — Debt consolidation and term extension — — — — — — Debt consolidation, rate reduction, term extension and note bifurcation — — — — — — Term extension — — — — — — Troubled debt restructurings — $ — $ — 1 $ 89 $ 89 No acquired loans have been modified as a troubled debt restructure during the first quarter of March 31, 2017. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Business Activities Loans Acquired Loans (in thousands) Three months ended March 31, 2017 Three months ended March 31, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,427 $ 96 $ (43 ) $ 2 $ 2,482 $ — $ — $ — $ — $ — Commercial 1,683 107 (38 ) — 1,752 275 118 (150 ) 28 271 Land 198 6 (15 ) — 189 — — — — — Real estate 4,308 209 (96 ) 2 4,423 275 118 (150 ) 28 271 Commercial and industrial 1,043 (217 ) (1 ) 41 866 36 8 — 4 48 Municipal 53 2 — — 55 — — — — — Consumer 75 39 (30 ) 8 92 — — — — — Unallocated 337 193 — — 530 — — — — — Totals $ 5,816 $ 226 $ (127 ) $ 51 $ 5,966 $ 311 $ 126 $ (150 ) $ 32 $ 319 Business Activities Loans Acquired Loans (in thousands) Three months ended March 31, 2016 Three months ended March 31, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,477 $ 86 $ (106 ) $ 1 $ 2,458 $ 79 $ (10 ) $ — $ — $ 69 Commercial 1,466 154 (36 ) 1 1,585 132 56 (96 ) 2 94 Land 188 (1 ) (23 ) — 164 — — — — — Real estate 4,131 239 (165 ) 2 4,207 211 46 (96 ) 2 163 Commercial and industrial 683 125 (31 ) 4 781 24 114 (1 ) 4 141 Municipal 61 (2 ) — — 59 — — — — — Consumer 124 11 (23 ) 2 114 — — — — — Unallocated 482 (70 ) — — 412 — — — — — Totals $ 5,481 $ 303 $ (219 ) $ 8 $ 5,573 $ 235 $ 160 $ (97 ) $ 6 $ 304 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 March 31, 2017 Residential 1-4 family $ 291,788 $ 1,857 $ 5,323 $ 134 $ 297,111 $ 1,991 Residential 5+ multifamily 8,171 78 1,767 6 9,938 84 Construction of residential 1-4 family 10,990 77 — — 10,990 77 Home equity lines of credit 34,833 329 200 1 35,033 330 Residential real estate 345,782 2,341 7,290 141 353,072 2,482 Commercial 172,875 1,692 3,443 29 176,318 1,721 Construction of commercial 4,239 31 113 — 4,352 31 Commercial real estate 177,114 1,723 3,556 29 180,670 1,752 Farm land 3,605 39 994 — 4,599 39 Vacant land 6,360 146 207 4 6,567 150 Real estate secured 532,861 4,249 12,047 174 544,908 4,423 Commercial and industrial 107,410 866 81 — 107,491 866 Municipal 8,737 55 — — 8,737 55 Consumer 5,076 92 4 — 5,080 92 Unallocated allowance — 530 — — — 530 Totals $ 654,084 $ 5,792 $ 12,132 $ 174 $ 666,216 $ 5,966 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance March 31, 2017 Residential 1-4 family $ 6,016 $ — $ — $ — $ — $ — $ 6,016 $ — Residential 5+ multifamily 5,526 — — — — — 5,526 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,542 — — — — — 11,542 — Commercial 66,112 23 2,340 193 3,856 53 72,308 269 Construction of commercial 1,599 2 258 — — — 1,857 2 Commercial real estate 67,711 25 2,598 193 3,856 53 74,165 271 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 79,253 25 2,598 193 3,856 53 85,707 271 Commercial and industrial 17,736 14 — — 133 34 17,869 48 Municipal — — — — — — — — Consumer 48 — — — 15 — 63 — Unallocated allowance — — — — — — — — Totals $ 97,037 $ 39 $ 2,598 $ 193 $ 4,004 $ 87 $ 103,639 $ 319 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2016 Residential 1-4 family $ 289,900 $ 1,797 $ 5,130 $ 129 $ 295,030 $ 1,926 Residential 5+ multifamily 6,153 56 1,823 6 7,976 62 Construction of residential 1-4 family 10,951 91 — — 10,951 91 Home equity lines of credit 34,854 326 633 22 35,487 348 Residential real estate 341,858 2,270 7,586 157 349,444 2,427 Commercial 151,940 1,587 3,688 60 155,628 1,647 Construction of commercial 3,366 36 115 — 3,481 36 Commercial real estate 155,306 1,623 3,803 60 159,109 1,683 Farm land 2,912 28 1,002 — 3,914 28 Vacant land 6,390 166 210 4 6,600 170 Real estate secured 506,466 4,087 12,601 221 519,067 4,308 Commercial and industrial 121,060 1,043 84 — 121,144 1,043 Municipal 8,626 53 — — 8,626 53 Consumer 5,309 75 3 — 5,312 75 Unallocated allowance — 337 — — — 337 Totals $ 641,461 $ 5,595 $ 12,688 $ 221 $ 654,149 $ 5,816 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2016 Residential 1-4 family $ 6,098 $ — $ — $ — $ — $ — $ 6,098 $ — Residential 5+ multifamily 5,649 — — — — — 5,649 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,747 — — — — — 11,747 — Commercial 72,569 22 3,388 191 3,897 59 79,854 272 Construction of commercial 1,659 3 258 — — — 1,917 3 Commercial real estate 74,228 25 3,646 191 3,897 59 81,771 275 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 85,975 25 3,646 191 3,897 59 93,518 275 Commercial and industrial 20,020 16 — — 309 20 20,329 36 Municipal — — — — — — — — Consumer 52 — — — 16 — 68 — Unallocated allowance — — — — — — — — Totals $ 106,047 $ 41 $ 3,646 $ 191 $ 4,222 $ 79 $ 113,915 $ 311 The credit quality segments of loans receivable and the allowance for loan losses are as follows: Business Activities Loans March 31, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 649,738 $ 5,088 $ — $ — $ 649,738 $ 5,088 Potential problem loans 4,346 174 — — 4,346 174 Impaired loans — — 12,132 174 12,132 174 Unallocated allowance — 530 — — — 530 Totals $ 654,084 $ 5,792 $ 12,132 $ 174 $ 666,216 $ 5,966 Acquired Loans March 31, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 98,588 $ 51 $ — $ — $ 98,588 $ 51 Potential problem loans 2,453 75 — — 2,453 75 Impaired loans — — 2,598 193 2,598 193 Unallocated allowance — — — — — — Totals $ 101,041 $ 126 $ 2,598 $ 193 $ 103,639 $ 319 Business Activities Loans December 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 636,645 $ 5,062 $ — $ — $ 636,645 $ 5,062 Potential problem loans 4,816 196 — — 4,816 196 Impaired loans — — 12,688 221 12,688 221 Unallocated allowance — 337 — — — 337 Totals $ 641,461 $ 5,595 $ 12,688 $ 221 $ 654,149 $ 5,816 Acquired Loans December 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 107,810 $ 55 $ — $ — $ 107,810 $ 55 Potential problem loans 2,459 65 — — 2,459 65 Impaired loans — — 3,646 191 3,646 191 Unallocated allowance — — — — — — Totals $ 110,269 $ 120 $ 3,646 $ 191 $ 113,915 $ 311 A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the fair value of expected cash flows or collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment is as follows: 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 March 31, 2017 Residential $ 3,450 $ 3,608 $ 3,493 $ 140 $ 34 $ 3,640 $ 3,965 $ 3,594 $ 37 Home equity lines of credit 48 47 137 1 1 152 182 214 1 Residential real estate 3,498 3,655 3,630 141 35 3,792 4,147 3,808 38 Commercial 987 1,028 2,506 29 16 2,456 2,935 1,113 15 Construction of commercial — — — — — 113 120 114 2 Farm land — — — — — 994 1,153 976 — Vacant land 45 45 45 4 1 162 186 163 4 Real estate secured 4,530 4,728 6,181 174 52 7,517 8,541 6,174 59 Commercial and industrial — — — — — 81 104 129 1 Consumer — — — — — 4 7 4 — Totals $ 4,530 $ 4,728 $ 6,181 $ 174 $ 52 $ 7,602 $ 8,652 $ 6,307 $ 60 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 March 31, 2017 Residential $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity lines of credit — — — — — — — — — Residential real estate — — — — — — — — — Commercial 1,035 1,387 1,206 193 24 1,305 1,903 1,755 25 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,035 1,387 1,206 193 24 1,563 2,175 2,013 25 Commercial and industrial — — — — — — — — — Consumer — — — — — — — — — Totals $ 1,035 $ 1,387 $ 1,206 $ 193 $ 24 $ 1,563 $ 2,175 $ 2,013 $ 25 (1) The table above reflects the book, note and specific allowance as of March 31, 2017, while the average balances and income recognized are for the three months ended March 31, 2017. 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 March 31, 2016 Residential $ 7,155 $ 7,787 $ 8,032 $ 474 $ 18 $ 3,009 $ 3,230 $ 2,740 $ 20 Home equity lines of credit 488 513 503 21 — 330 347 296 — Residential real estate 7,643 8,300 8,535 495 18 3,339 3,577 3,036 20 Commercial 3,095 3,412 3,058 80 13 1,136 1,403 1,195 7 Construction of commercial 120 126 121 1 2 — — — — Farm land 11 13 372 1 — 1,013 1,109 656 — Vacant land 2,870 3,859 2,870 19 1 203 238 205 — Real estate secured 13,739 15,710 14,956 596 34 5,691 6,327 5,092 27 Commercial and industrial 94 98 95 1 — 415 468 421 1 Consumer — — — — — — — 20 — Totals $ 13,833 $ 15,808 $ 15,051 $ 597 $ 34 $ 6,106 $ 6,795 $ 5,533 $ 28 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 March 31, 2016 Residential $ 602 $ 716 $ 645 $ 69 $ — $ 300 $ 300 $ 263 $ — Home equity lines of credit — — — — — — — — — Residential real estate 602 716 645 69 — 300 300 263 — Commercial 331 723 547 27 4 2,255 2,853 2,176 13 Construction of commercial — — — — — 258 271 259 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 933 1,439 1,192 96 4 2,813 3,424 2,698 13 Commercial and industrial 332 439 83 114 — — — — — Consumer — — — — — — — — — Totals $ 1,265 $ 1,878 $ 1,275 $ 210 $ 4 $ 2,813 $ 3,424 $ 2,698 $ 13 (1) The table above reflects the book, note and specific allowance as of March 31, 2016, while the average balances and income recognized are for the three months ended March 31, 2016. As of March 31,2017 and December 31,2016 the recorded investment in residential mortgage loans collateralized by real estate that were in the process of foreclosure was $1.0 million and $2.1 million, respectively. At March 31, 2017 and December 31, 2016, the carrying amount of foreclosed residential real estate held as a result of obtaining physical possession amounted to $3.5 million and $3.6 million respectively. |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE SERVICING RIGHTS | NOTE 4 - MORTGAGE SERVICING RIGHTS (in thousands) March 31, 2017 December 31, 2016 Residential mortgage loans serviced for others $ 123,925 $ 125,243 Fair value of mortgage servicing rights 810 902 Changes in mortgage servicing rights are as follows: Three months ended March 31, (in thousands) 2017 2016 Mortgage Servicing Rights Balance, beginning of period $ 339 $ 486 Originated 25 20 Amortization (1) (68 ) (51) Balance, end of period $ 296 $ 455 Valuation Allowance Balance, beginning of period $ (23 ) $ (3 ) Increase in impairment reserve (1) (2 ) (20 ) Balance, end of period (25 ) (23 ) Mortgage servicing rights, net $ 271 $ 432 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net, in the consolidated statements of income. |
PLEDGED ASSETS
PLEDGED ASSETS | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees [Abstract] | |
PLEDGED ASSETS | NOTE 5 - PLEDGED ASSETS (in thousands) March 31, 2017 December 31, 2016 Securities available-for-sale (at fair value) $ 63,904 $ 63,833 Loans receivable 137,500 137,117 Total pledged assets $ 201,404 $ 200,950 At March 31, 2017, securities were pledged as follows: $58.4 million to secure public deposits, $5.5 million to secure repurchase agreements and $0.1 million to secure FHLBB advances. Additionally, loans receivable were pledged to secure FHLBB advances and credit facilities. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 6 – EARNINGS PER SHARE The Company defines unvested share-based payment awards that contain non-forfeitable rights to dividends as participating securities that are included in computing earnings per share (EPS) using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic EPS excludes dilution and is computed by dividing income allocated to common shareholders 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 ended March 31, (in thousands, except per share data) 2017 2016 Net income $ 1,604 $ 1,512 Less: Undistributed earnings allocated to participating securities (10 ) (13 ) Net income allocated to common stock $ 1,594 $ 1,499 Weighted-average common shares issued 2,765 2,747 Less: Unvested restricted stock awards (16 ) (24 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,749 2,723 Add: Dilutive effect of stock options 19 18 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,768 2,741 Earnings per common share (basic) $ 0.58 $ 0.55 Earnings per common share (diluted) $ 0.58 $ 0.55 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2017 | |
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. In July 2013, the Federal Reserve Bank (FRB) approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for bank holding companies and their bank subsidiaries. On July 9, 2013, the FDIC also approved, as an interim final rule, the regulatory capital requirements for U.S. banks, following the actions of the FRB. On April 8, 2014, the FDIC adopted as final its interim final rule, which is identical in substance to the final rules issued by the FRB in July 2013. Under the final rules, minimum requirements increased for both the quantity and quality of capital held by the Bank and Company. The rules include a common equity Tier 1 capital risk-weighted assets minimum ratio of 4.5%, minimum ratio of Tier 1 capital to risk-weighted assets of 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 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 began phasing in 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. As of March 31, 2017, the Bank exceeded the fully phased in regulatory requirement for the capital conservation buffer. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. 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 March 31, 2017 Total Capital (to risk-weighted assets) Salisbury $ 98,021 13.34 % $ 58,785 8.0 % n/a — Bank 94,859 12.91 58,785 8.0 $ 73,482 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 81,585 11.10 44,089 6.0 n/a — Bank 88,423 12.03 44,089 6.0 58,785 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 81,585 11.10 33,067 4.5 n/a — Bank 88,423 12.03 33,067 4.5 47,763 6.5 Tier 1 Capital (to average assets) Salisbury 81,585 8.83 37,498 4.0 n/a — Bank 88,423 9.59 37,423 4.0 46,778 5.0 To be Well Capitalized Actual For Capital Adequacy Purposes Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to risk-weighted assets) Salisbury $ 96,166 13.26 % $ 57,997 8.0 % n/a — Bank 93,690 12.92 57,996 8.0 $ 72,495 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 79,868 11.02 43,498 6.0 n/a — Bank 87,392 12.05 43,497 6.0 57,996 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 79,868 11.02 32,623 4.5 n/a — Bank 87,392 12.05 32,623 4.5 47,122 6.5 Tier 1 Capital (to average assets) Salisbury 79,868 8.69 37,282 4.0 n/a — Bank 87,392 9.57 36,762 4.0 45,953 5.0 Cash Dividends to Common Shareholders Salisbury's ability to pay cash dividends is substantially dependent on the Bank's ability to pay cash dividends to Salisbury. There are certain restrictions on the payment of cash dividends and other payments by the Bank to Salisbury. Under Connecticut law, the Bank cannot declare a cash dividend except from net profits, defined as the remainder of all earnings from current operations. The total of all cash dividends declared by the Bank in any calendar year shall not, unless specifically approved by the Banking Commissioner, exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. FRB Supervisory Letter SR 09-4, February 24, 2009, revised March 30, 2009, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the Federal Reserve and should eliminate, defer, or significantly reduce dividends if (1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (2) the prospective rate of earnings retention is not consistent with capital needs and overall current and prospective financial condition; or (3) the BHC will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. Moreover, a BHC should inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the BHC capital structure. |
BENEFITS
BENEFITS | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
BENEFITS | NOTE 8 –BENEFITS Salisbury’s 401(k) Plan expense was $285 thousand and $216 thousand, respectively, for the three month periods ended March 31, 2017 and 2016. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $18 thousand and $19 thousand for the three month periods ended March 31, 2017 and 2016, respectively. ESOP Salisbury offers an ESOP to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan, which generally vests in full upon six years of qualified service. Salisbury’s ESOP expense was $34 thousand and $36 thousand, respectively, for the three month periods ended March 31, 2017 and 2016. Other Retirement Plans A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. In 2017, 2016, 2015, and 2014, the Bank awarded nine (9), nine (9), six (6) and seven (7) Executives, respectively, with discretionary contributions to the plan. Expenses related to this plan amounted to $21 thousand for the first quarter of 2017 and $11 thousand for the first quarter of 2016. The vesting schedule is based on the Executive’s date of retirement and ranges from 7.7% per year to 50% per year with two exceptions which are both 10 year cliff vesting schedules from the date of initial award. On January 27, 2017, the Compensation Committee granted a total of 56,600 Phantom Stock Appreciation Units pursuant to the 2013 Phantom Stock Appreciation Unit and Long-Term Incentive Plan (the “Plan”), including 23,100 units to three Named Executive Officers. Mr. Cantele received 11,500 units, Mr. Davies received 6,000 units and Mr. White received 5,600 units. The units will vest on the third anniversary of the grant date. On January 29, 2016, the Compensation Committee granted a total of 47,470 Phantom Stock Appreciation Units pursuant to the 2013 Phantom Stock Appreciation Unit and Long-Term Incentive Plan (the “Plan”), including 23,012 units to three Named Executive Officers. Mr. Cantele received 11,484 units, Mr. Davies received 5,963 units and Mr. White received 5,565 units. The units will vest on the third anniversary of the grant date. On January 2, 2015, the Compensation Committee granted a total of 48,894 Phantom Stock Appreciation Units pursuant to the 2013 Phantom Stock Appreciation Unit and Long-Term Incentive Plan (the “Plan”), including 23,012 units to three Named Executive Officers. Mr. Cantele received 11,484 units, Mr. Davies received 5,963 units and Mr. White received 5,565 units. The units will vest on the third anniversary of the grant date. Grants of Restricted Stock and Options Restricted stock 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 the stock as of the grant date was determined to be $466,000 and the stock will be vested three years from the grant date. Expense in first quarter 2017 and 2016 related to stock based compensation totaled $61 thousand and $47 thousand respectively. Unrecognized compensation cost relating to the awards as of March 31, 2017 and 2016 totaled $288 thousand and $529 thousand, respectively. Forfeitures in the first quarter 2017 and 2016 totaled 200 and 0 shares, respectively. The Board of Directors adopted the 2017 Long Term Incentive Plan (the “2017 LTIP”) on February 24, 2017, which is subject to shareholder approval at the 2017 Annual Meeting. Upon shareholder approval of the 2017 LTIP, no further awards will be made under the 2011 LTIP, which shall remain in existence solely for purposes of administering outstanding grants. Under the 2017 LTIP, the total number of shares of Common Stock reserved and available for issuance in the next ten years in connection with awards under the 2017 LTIP is 200,000 shares of Common Stock, which represents approximately 7% of Salisbury’s 2,770,036 outstanding shares of Common Stock as of March 20, 2017. Of the maximum shares available under the 2017 LTIP, 200,000 shares may be issued upon the exercise of stock options (all of which may be granted as incentive stock options) and 150,000 shares may be issued as restricted stock or restricted stock units (including deferred stock units), provided that, to the extent that a share is issued as a restricted stock award or a restricted stock unit, the share would no longer be available for award as a stock option, unless the restricted stock award or restricted unit is forfeited or otherwise returned to the 2017 LTIP. On April 28, 2017, Salisbury granted a total of 10,750 shares of restricted stock pursuant to its 2011 Long Term Incentive Plan, which was approved by shareholders at the 2011 Annual Meeting, to 37 employees, including 2,500 shares to two Named Executive Officers. Richard J. Cantele, Jr., President and Chief Executive Officer received 2,000 and John Davies, President New York Region and Chief Lending Officer received 500 shares. The fair value of the stock as of the grant date was determined to be $419,250 and the stock will be vested three years from the grant date. On April 28, 2017, Salisbury granted a total of 2,056 shares of stock to directors as a component of their annual compensation. While all directors received partial awards for their 2016 service, Louise Brown received her full award due to her pending retirement from the board. The fair value of the stock as of the grant date was determined to be $80,184. Options On January 9, 2017, 2,700 shares of stock options were exercised at $25.93 per share by one former Riverside Bank executive. On February 1, 2017, 1,350 shares of stock options were exercised at $25.93 per share by one former Riverside Bank executive. On February 9, 2017, 1,350 shares of stock options were exercised at $25.93 per share by one former Riverside Bank executive. On February 14, 2017 and February 20, 2017, 5,400 and 1,350 shares of stock options were exercised, respectively, at $25.93 per share by two former Riverside Bank executives. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 9 –ACCUMULATED OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive income are as follows: (in thousands) March 31, 2017 December 31, 2016 Unrealized gains on securities available-for-sale, net of tax $ 487 $ 477 Accumulated other comprehensive income, net $ 487 $ 477 |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2017 | |
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. Salisbury adopted ASC 820-10, “Fair Value Measurement - Overall,” which provides a framework for measuring fair value under generally accepted accounting principles. This guidance permitted Salisbury the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. Salisbury did not elect fair value treatment for any financial assets or liabilities upon adoption. In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury, other U.S. Government and agency mortgage-backed securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2. Significant other observable inputs. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. • Level 3. Significant unobservable inputs. Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Salisbury did not have any significant transfers of assets between levels 1 and 2 of the fair value hierarchy during the year ended March 31, 2017. The following is a description of valuation methodologies for assets recorded at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy: • Securities available-for-sale. Securities available-for-sale are recorded at fair value on a recurring basis. Level 1 securities include exchange-traded equity securities. Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of the U.S. Treasury and U.S. government-sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, municipal bonds, SBA bonds, corporate bonds and certain preferred equities. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. • Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. • Other real estate owned acquired through foreclosure or repossession is adjusted to fair value less costs to sell upon transfer out of loans. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. Assets measured at fair value are as follows: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value March 31, 2017 Assets at fair value on a recurring basis Municipal bonds $ — $ 12,953 $ — $ 12,953 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 49,209 — 49,209 Collateralized mortgage obligations: U.S. Government agencies — 6,363 — 6,363 Non-agency — 3,407 — 3,407 SBA bonds — 1,882 — 1,882 CRA mutual funds 822 — — 822 Corporate bonds — 2,041 — 2,041 Preferred stock 172 — — 172 Securities available-for-sale $ 994 $ 75,855 $ — $ 76,849 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,139 $ 5,139 Other real estate owned $ — $ — $ 3,833 $ 3,833 December 31, 2016 Assets at fair value on a recurring basis Municipal bonds $ — $ 15,996 $ — $ 15,996 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 53,301 — 53,301 Collateralized mortgage obligations: U.S. Government agencies — 1,474 — 1,474 Non-agency — 3,735 — 3,735 SBA bonds — 2,064 — 2,064 CRA mutual funds 818 — — 818 Corporate bonds — 2,013 — 2,013 Preferred stock 222 — — 222 Securities available-for-sale $ 1,040 $ 78,583 $ — $ 79,623 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,256 $ 5,256 Other real estate owned $ — $ — $ 3,773 $ 3,773 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 March 31, 2017 Financial Assets Cash and cash equivalents $ 41,292 $ 41,292 $ 41,292 $ — $ — Securities available-for-sale 76,849 76,849 994 75,855 — Federal Home Loan Bank stock 3,510 3,510 — 3,510 Loans held-for-sale 53 53 — — 53 Loans receivable, net 764,665 777,371 — — 777,371 Accrued interest receivable 2,431 2,431 — — 2,431 Cash surrender value of life insurance 14,126 14,126 14,126 — — Financial Liabilities Demand (non-interest-bearing) $ 201,215 $ 201,215 $ — $ — $ 201,215 Demand (interest-bearing) 132,527 132,527 — — 132,527 Money market 182,438 182,438 — — 182,438 Savings and other 141,085 141,085 — — 141,085 Certificates of deposit 115,151 116,305 — — 116,305 Deposits 772,416 773,570 — — 773,570 Repurchase agreements 2,350 2,350 — — 2,350 FHLBB advances 52,745 53,857 — — 53,857 Subordinated debt 9,794 10,391 — — 10,391 Note payable 335 370 — — 370 Capital lease liability 417 829 — — 829 Accrued interest payable 238 238 — — 238 December 31, 2016 Financial Assets Cash and cash equivalents $ 35,485 $ 35,485 $ 35,485 $ — $ — Securities available-for-sale 79,623 79,623 1,040 78,583 — Federal Home Loan Bank stock 3,211 3,211 — — 3,211 Loans receivable, net 763,184 747,442 — — 747,442 Accrued interest receivable 2,424 2,424 — — 2,424 Cash surrender value of life insurance 14,038 14,038 14,038 — — Financial Liabilities Demand (non-interest-bearing) $ 218,420 $ 218,420 $ — $ — $ 218,420 Demand (interest-bearing) 127,854 127,854 — — 127,854 Money market 182,476 182,476 — — 182,476 Savings and other 135,435 135,435 — — 135,435 Certificates of deposit 117,585 118,610 — — 118,610 Deposits 781,770 782,795 — — 782,795 Repurchase agreements 5,535 5,535 — — 5,535 FHLBB advances 37,188 38,440 — — 38,440 Subordinated debt 9,788 10,378 — — 10,378 Note payable 344 377 — — 377 Capital lease liability 418 841 — — 841 Accrued interest payable 89 89 — — 89 The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets under the indicated captions or are included in accrued interest and other liabilities. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS On April 28, 2017 the Board of Directors approved the 2017 Long Term Incentive Plan, which is subject to shareholder approval. Refer to Note 8 for additional discussion. On April 28, 2017 the Board of Directors declared a dividend of $0.28 per common share payable on May 26, 2017 to shareholders of record on May 12, 2017. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Impact of New Accounting Pronouncements Issued | Impact of New Accounting Pronouncements Issued In May 2014, August 2015, May 2016, and December 2016, respectively, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, 2015-14, 2016-12, and 2016-20, “Revenue from Contracts with Customers (Topic 606).” The objective of ASU 2014-09 is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before the original effective date (i.e. interim and annual reporting periods beginning after December 15, 2016). The amendments in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but rather affect only certain narrow aspects aimed to reduce the potential for diversity in practice at initial application and the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The amendments in ASU 2016-20 include technical corrections and improvements to Topic 606 and other Topics amended by ASU 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to ASU 2014-09. Salisbury is currently reviewing ASU 2014-09, 2015-14, 2016-12, and 2016-20 to determine if they will have an impact on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – overall (subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Early application is permitted as of the beginning of the fiscal year of adoption only for provisions (3) and (6) above. Early adoption of the other provisions mentioned above is not permitted. Salisbury does not expect ASU No. 2016-01 to have a material impact on the Company's Consolidated Financial Statements; however, the Company will continue to closely monitor developments and additional guidance. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. They have the option to use certain relief; full retrospective application is prohibited. Salisbury is currently evaluating this ASU to determine the impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. Some of the key provisions of this new ASU include: (1) companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. The guidance also eliminates the requirement that excess tax benefits be realized before companies can recognize them. In addition, the guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity; (2) increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance will also require an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows (current guidance did not specify how these cash flows should be classified); and (3) permit companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted, but all of the guidance must be adopted in the same period. Adoption of ASU 2016-09 did not have a material effect on the financial results for the first quarter of 2017. 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 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 2016-15, “Classification of Certain Cash Receipts and Cash Payments." This ASU is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU 2016-15 is not expected to have a material impact on Salisbury’s Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." This ASU is intended to simplify and improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. Under the revised guidance, an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. Entities will be required to apply on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Salisbury is currently evaluating the provisions of ASU 2016-16 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business." The amendments in this ASU are intended to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this ASU provide a screen to determine when a set of input, processes, and outputs is not a business and provides a framework to assist entities in evaluating whether both an input and a substantive process are present. ASU 2017-01 is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted for transactions for which the acquisition date occurs before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance, or for transactions in which a subsidiary is deconsolidated or a group of assets is derecognized that occur before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. Entities should apply the guidance prospectively on or after the effective date. Salisbury is currently evaluating the provisions of ASU 2017-01 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This ASU is intended to allow companies to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for public business entities that are SEC filers for fiscal years beginning after December 15, 2019 and interim periods within those years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Entities should apply the guidance prospectively. Salisbury is currently evaluating the provisions of ASU 2017-04 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In February 2017, the FASB issued ASU 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20).” This ASU is intended to clarify the scope of Subtopic 610-20 and to add guidance for partial sales of nonfinancial assets. ASU 2017-05 is effective for public entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Entities may apply the guidance either retrospectively or modified retrospectively. Salisbury is currently evaluating the provisions of ASU 2017-05 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU is intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost and provide additional guidance on the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets. The amendments in this Update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments require that an employer disaggregate the service cost component from the other components of net benefit cost. ASU 2017-07 is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. Entities should apply the guidance retrospectively. Salisbury is currently evaluating the provisions of ASU 2017-07 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This ASU will amend the amortization period for certain purchased callable debt securities held at a premium. The Board is shortening the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for public business entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. Entities should apply the guidance on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Salisbury is currently evaluating the provisions of ASU 2017-08 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Composition of Securities | (in thousands) Amortized cost basis (1) Gross un- realized gains Gross un- realized losses Fair Value March 31, 2017 Available-for-sale Municipal bonds $ 12,816 $ 137 $ — $ 12,953 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 49,217 221 229 49,209 Collateralized mortgage obligations: U.S. Government agencies 6,360 3 — 6,363 Non-agency 2,997 419 9 3,407 SBA bonds 1,876 7 1 1,882 CRA mutual funds 838 — 16 822 Corporate bonds 2,000 41 — 2,041 Preferred stock 7 165 — 172 Total securities available-for-sale $ 76,111 $ 993 $ 255 $ 76,849 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,510 $ — $ — $ 3,510 (in thousands) Amortized cost basis (1) Gross un- realized gains Gross un- realized losses Fair Value December 31, 2016 Available-for-sale Municipal bonds $ 15,800 $ 197 $ 1 $ 15,996 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 53,407 229 335 53,301 Collateralized mortgage obligations: U.S. Government agencies 1,470 4 — 1,474 Non-agency 3,327 414 6 3,735 SBA bonds 2,056 9 1 2,064 CRA mutual funds 834 — 16 818 Corporate bonds 2,000 16 3 2,013 Preferred stock 7 215 — 222 Total securities available-for-sale $ 78,901 $ 1,084 $ 362 $ 79,623 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,211 $ — $ — $ 3,211 (1) Net of other-than-temporary impairment write-downs recognized in earnings. |
Aggreggate fair value and gross unrealized loss of securities | March 31, 2017 (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Available-for-sale Mortgage-backed securities $ 30,690 $ 223 $ 246 $ 6 $ 30,936 $ 229 Collateralized mortgage obligations: Non-agency 44 5 305 4 349 9 SBA bonds 348 1 74 — 422 1 CRA funds 822 16 — — 822 16 Total temporarily impaired securities $ 31,904 $ 245 $ 625 $ 10 $ 32,529 $ 255 At March 31, 2017 there were no other than temporarily impaired securities with unrealized losses. Less than 12 Months 12 Months or Longer Total December 31, 2016 (in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Available-for-sale Municipal bonds $ 517 $ 1 $ — $ — $ 517 $ 1 Mortgage-backed securities 34,758 329 249 6 35,007 335 Collateralized mortgage obligations Non-agency 60 — 339 5 399 5 SBA bonds 475 1 — — 475 1 CRA mutual funds 818 16 — — 818 16 Corporate bonds 498 3 — — 498 3 Total temporarily impaired securities 37,126 350 588 11 37,714 361 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency 174 1 — — 174 1 Total temporarily impaired and other-than-temporarily impaired securities $ 37,300 $ 351 $ 588 $ 11 $ 37,888 $ 362 |
Amortized cost, fair value and tax equivalent yield of securities | March 31, 2017 (in thousands) Maturity Amortized cost Fair value Yield(1) Municipal bonds Within 1 year $ 75 $ 75 4.92 % After 1 year but within 5 years 869 873 5.48 After 10 years but within 15 years 4,478 4,522 6.64 After 15 years 7,394 7,483 6.73 Total 12,816 12,953 6.61 Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 49,217 49,209 2.35 Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 6,360 6,363 2.64 Non-agency 2,997 3,407 4.04 SBA bonds 1,876 1,882 3.48 CRA mutual funds 838 822 4.51 Corporate bonds After 5 years but within 10 years 2,000 2,041 5.50 Preferred stock 7 172 0.00 Securities available-for-sale $ 76,111 $ 76,849 3.29 % (1) Yield is based on amortized cost. |
Activity related to credit losses recognized into earnings | Three months ended March 31 (in thousands) 2017 2016 Balance, beginning of period $ 1,128 $ 1,128 Credit component on debt securities in which OTTI was not previously recognized — — Balance, end of period $ 1,128 $ 1,128 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Composition of loans receivable and loans held-for-sale | March 31, 2017 December 31, 2016 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 297,111 $ 6,016 $ 303,127 $ 295,030 $ 6,098 $ 301,128 Residential 5+ multifamily 9,938 5,526 15,464 7,976 5,649 13,625 Construction of residential 1-4 family 10,990 — 10,990 10,951 — 10,951 Home equity lines of credit 35,033 — 35,033 35,487 — 35,487 Residential real estate 353,072 11,542 364,614 349,444 11,747 361,191 Commercial 176,318 72,308 248,626 155,628 79,854 235,482 Construction of commercial 4,352 1,857 6,209 3,481 1,917 5,398 Commercial real estate 180,670 74,165 254,835 159,109 81,771 240,880 Farm land 4,599 — 4,599 3,914 — 3,914 Vacant land 6,567 — 6,567 6,600 — 6,600 Real estate secured 544,908 85,707 630,615 519,067 93,518 612,585 Commercial and industrial 107,491 17,869 125,360 121,144 20,329 141,473 Municipal 8,737 — 8,737 8,626 — 8,626 Consumer 5,080 63 5,143 5,312 68 5,380 Loans receivable, gross 666,216 103,639 769,855 654,149 113,915 768,064 Deferred loan origination fees and costs, net 1,095 — 1,095 1,247 — 1,247 Allowance for loan losses (5,966 ) (319 ) (6,285 ) (5,816 ) (311 ) (6,127 ) Loans receivable, net $ 661,345 $ 103,320 $ 764,665 $ 649,580 $ 113,604 $ 763,184 Loans held-for-sale Residential 1-4 family $ 53 $ — $ 53 $ — $ — $ — |
Composition of loans receivable by risk rating grade | Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2017 Residential 1-4 family $ 288,103 $ 6,112 $ 2,896 $ — $ — $ 297,111 Residential 5+ multifamily 7,928 1,849 161 — — 9,938 Construction of residential 1-4 family 10,990 — — — — 10,990 Home equity lines of credit 33,938 852 243 — — 35,033 Residential real estate 340,959 8,813 3,300 — — 353,072 Commercial 166,867 3,720 5,731 — — 176,318 Construction of commercial 4,239 — 113 — — 4,352 Commercial real estate 171,106 3,720 5,844 — — 180,670 Farm land 3,605 — 994 — — 4,599 Vacant land 6,484 83 — — — 6,567 Real estate secured 522,154 12,616 10,138 — — 544,908 Commercial and industrial 106,007 1,286 198 — — 107,491 Municipal 8,737 — — — — 8,737 Consumer 5,060 20 — — — 5,080 Loans receivable, gross $ 641,958 $ 13,922 $ 10,336 $ — $ — $ 666,216 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2017 Residential 1-4 family $ 5,909 $ 107 $ — $ — $ — $ 6,016 Residential 5+ multifamily 5,526 — — — — 5,526 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 11,435 107 — — — 11,542 Commercial 64,985 2,590 4,733 — — 72,308 Construction of commercial 1,598 — 259 — — 1,857 Commercial real estate 66,583 2,590 4,992 — — 74,165 Farm land — — — — — — Vacant land — — — — — — Real estate secured 78,018 2,697 4,992 — — 85,707 Commercial and industrial 16,823 987 59 — — 17,869 Municipal — — — — — — Consumer 61 2 — — — 63 Loans receivable, gross $ 94,902 $ 3,686 $ 5,051 $ — $ — $ 103,639 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2016 Residential 1-4 family $ 285,939 $ 6,170 $ 2,832 $ 89 $ — $ 295,030 Residential 5+ multifamily 5,907 1,906 163 — — 7,976 Construction of residential 1-4 family 10,951 — — — — 10,951 Home equity lines of credit 34,299 512 676 — — 35,487 Residential real estate 337,096 8,588 3,671 89 — 349,444 Commercial 145,849 3,759 6,020 — — 155,628 Construction of commercial 3,366 — 115 — — 3,481 Commercial real estate 149,215 3,759 6,135 — — 159,109 Farm land 2,912 — 1,002 — — 3,914 Vacant land 6,513 87 — — — 6,600 Real estate secured 495,736 12,434 10,808 89 — 519,067 Commercial and industrial 118,804 1,734 606 — — 121,144 Municipal 8,626 — — — — 8,626 Consumer 5,288 24 — — — 5,312 Loans receivable, gross $ 628,454 $ 14,192 $ 11,414 $ 89 $ — $ 654,149 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2016 Residential 1-4 family $ 5,989 $ 109 $ — $ — $ — $ 6,098 Residential 5+ multifamily 5,649 — — — — 5,649 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 11,638 109 — — — 11,747 Commercial 70,007 4,059 5,788 — — 79,854 Construction of commercial 1,659 — 258 — — 1,917 Commercial real estate 71,666 4,059 6,046 — — 81,771 Farm land — — — — — — Vacant land — — — — — — Real estate secured 83,304 4,168 6,046 — — 93,518 Commercial and industrial 19,110 1,160 59 — — 20,329 Municipal — — — — — — Consumer 65 3 — — — 68 Loans receivable, gross $ 102,479 $ 5,331 $ 6,105 $ — $ — $ 113,915 |
Composition of loans receivable by delinquency status | Business Activities Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over March 31, 2017 Residential 1-4 family $ 291,506 $ 3,624 $ 519 $ — $ 1,462 $ 5,605 $ — $ 2,138 Residential 5+ multifamily 9,814 124 — — — 124 — 161 Construction of residential 1-4 family 10,990 — — — — — — — Home equity lines of credit 34,418 421 181 13 — 615 — 87 Residential real estate 346,728 4,169 700 13 1,462 6,344 — 2,386 Commercial 173,684 497 344 — 1,793 2,634 — 1,793 Construction of commercial 4,352 — — — — — — — Commercial real estate 178,036 497 344 — 1,793 2,634 — 1,793 Farm land 3,866 10 — — 723 733 — 994 Vacant land 6,522 45 — — — 45 — — Real estate secured 535,152 4,721 1,044 13 3,978 9,756 — 5,173 Commercial and industrial 106,963 129 343 30 26 528 30 26 Municipal 8,737 — — — — — — — Consumer 5,057 16 7 — — 23 — 4 Loans receivable, gross $ 655,909 $ 4,866 $ 1,394 $ 43 $ 4,004 $ 10,307 $ 30 $ 5,203 Acquired Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over March 31, 2017 Residential 1-4 family $ 5,920 $ 47 $ 49 $ — $ — $ 96 $ — $ — Residential 5+ multifamily 5,526 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,446 47 49 — — 96 — — Commercial 66,214 2,349 2,179 — 1,566 6,094 — 1,566 Construction of commercial 1,493 106 — 258 364 — 258 Commercial real estate 67,707 2,455 2,179 — 1,824 6,458 — 1,824 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 79,153 2,502 2,228 — 1,824 6,554 — 1,824 Commercial and industrial 16,911 958 — — — 958 — — Municipal — — — — — — — — Consumer 63 — — — — — — — Loans receivable, gross $ 96,127 $ 3,460 $ 2,228 $ — $ 1,824 $ 7,512 $ — $ 1,824 Business Activities Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over December 31, 2016 Residential 1-4 family $ 291,941 $ 1,161 $ 213 $ 327 $ 1,388 $ 3,089 $ 236 $ 1,920 Residential 5+ multifamily 7,976 — — — — — — 163 Construction of residential 1-4 family 10,951 — — — — — — — Home equity lines of credit 35,190 155 88 — 54 297 — 519 Residential real estate 346,058 1,316 301 327 1,442 3,386 236 2,602 Commercial 152,905 451 250 1,793 229 2,723 — 2,022 Construction of commercial 3,481 — — — — — — — Commercial real estate 156,386 451 250 1,793 229 2,723 — 2,022 Farm land 2,402 789 — — 723 1,512 — 1,002 Vacant land 6,575 25 — — — 25 — — Real estate secured 511,421 2,581 551 2,120 2,394 7,646 236 5,626 Commercial and industrial 120,719 140 239 46 — 425 20 27 Municipal 8,626 — — — — — — — Consumer 5,268 26 15 3 — 44 — 4 Loans receivable, gross $ 646,034 $ 2,747 $ 805 $ 2,169 $ 2,394 $ 8,115 $ 256 $ 5,657 Acquired Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over December 31, 2016 Residential 1-4 family $ 5,954 $ 144 $ — $ — $ — $ 144 $ — $ — Residential 5+ multifamily 5,649 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,603 144 — — — 144 — — Commercial 76,471 762 — 346 2,275 3,383 — 2,621 Construction of commercial 1,659 — — — 258 258 — 258 Commercial real estate 78,130 762 — 346 2,533 3,641 — 2,879 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 89,733 906 — 346 2,533 3,785 — 2,879 Commercial and industrial 19,904 425 — — — 425 — — Municipal — — — — — — — — Consumer 68 — — — — — — — Loans receivable, gross $ 109,705 $ 1,331 $ — $ 346 $ 2,533 $ 4,210 $ — $ 2,879 |
Troubled debt restructurings | March 31, 2017 March 31, 2016 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate — $ — $ — 1 $ 89 $ 89 Commercial real estate — — — — — — Home equity lines of credit — — — — — — Troubled debt restructurings — $ — $ — 1 $ 89 $ 89 Refinance — $ — $ — 1 $ 89 $ 89 Rate reduction and term extension — — — — — — Debt consolidation and term extension — — — — — — Debt consolidation, rate reduction, term extension and note bifurcation — — — — — — Term extension — — — — — — Troubled debt restructurings — $ — $ — 1 $ 89 $ 89 |
Changes in allowance for loan losses | Business Activities Loans Acquired Loans (in thousands) Three months ended March 31, 2017 Three months ended March 31, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,427 $ 96 $ (43 ) $ 2 $ 2,482 $ — $ — $ — $ — $ — Commercial 1,683 107 (38 ) — 1,752 275 118 (150 ) 28 271 Land 198 6 (15 ) — 189 — — — — — Real estate 4,308 209 (96 ) 2 4,423 275 118 (150 ) 28 271 Commercial and industrial 1,043 (217 ) (1 ) 41 866 36 8 — 4 48 Municipal 53 2 — — 55 — — — — — Consumer 75 39 (30 ) 8 92 — — — — — Unallocated 337 193 — — 530 — — — — — Totals $ 5,816 $ 226 $ (127 ) $ 51 $ 5,966 $ 311 $ 126 $ (150 ) $ 32 $ 319 Business Activities Loans Acquired Loans (in thousands) Three months ended March 31, 2016 Three months ended March 31, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,477 $ 86 $ (106 ) $ 1 $ 2,458 $ 79 $ (10 ) $ — $ — $ 69 Commercial 1,466 154 (36 ) 1 1,585 132 56 (96 ) 2 94 Land 188 (1 ) (23 ) — 164 — — — — — Real estate 4,131 239 (165 ) 2 4,207 211 46 (96 ) 2 163 Commercial and industrial 683 125 (31 ) 4 781 24 114 (1 ) 4 141 Municipal 61 (2 ) — — 59 — — — — — Consumer 124 11 (23 ) 2 114 — — — — — Unallocated 482 (70 ) — — 412 — — — — — Totals $ 5,481 $ 303 $ (219 ) $ 8 $ 5,573 $ 235 $ 160 $ (97 ) $ 6 $ 304 |
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 March 31, 2017 Residential 1-4 family $ 291,788 $ 1,857 $ 5,323 $ 134 $ 297,111 $ 1,991 Residential 5+ multifamily 8,171 78 1,767 6 9,938 84 Construction of residential 1-4 family 10,990 77 — — 10,990 77 Home equity lines of credit 34,833 329 200 1 35,033 330 Residential real estate 345,782 2,341 7,290 141 353,072 2,482 Commercial 172,875 1,692 3,443 29 176,318 1,721 Construction of commercial 4,239 31 113 — 4,352 31 Commercial real estate 177,114 1,723 3,556 29 180,670 1,752 Farm land 3,605 39 994 — 4,599 39 Vacant land 6,360 146 207 4 6,567 150 Real estate secured 532,861 4,249 12,047 174 544,908 4,423 Commercial and industrial 107,410 866 81 — 107,491 866 Municipal 8,737 55 — — 8,737 55 Consumer 5,076 92 4 — 5,080 92 Unallocated allowance — 530 — — — 530 Totals $ 654,084 $ 5,792 $ 12,132 $ 174 $ 666,216 $ 5,966 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance March 31, 2017 Residential 1-4 family $ 6,016 $ — $ — $ — $ — $ — $ 6,016 $ — Residential 5+ multifamily 5,526 — — — — — 5,526 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,542 — — — — — 11,542 — Commercial 66,112 23 2,340 193 3,856 53 72,308 269 Construction of commercial 1,599 2 258 — — — 1,857 2 Commercial real estate 67,711 25 2,598 193 3,856 53 74,165 271 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 79,253 25 2,598 193 3,856 53 85,707 271 Commercial and industrial 17,736 14 — — 133 34 17,869 48 Municipal — — — — — — — — Consumer 48 — — — 15 — 63 — Unallocated allowance — — — — — — — — Totals $ 97,037 $ 39 $ 2,598 $ 193 $ 4,004 $ 87 $ 103,639 $ 319 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2016 Residential 1-4 family $ 289,900 $ 1,797 $ 5,130 $ 129 $ 295,030 $ 1,926 Residential 5+ multifamily 6,153 56 1,823 6 7,976 62 Construction of residential 1-4 family 10,951 91 — — 10,951 91 Home equity lines of credit 34,854 326 633 22 35,487 348 Residential real estate 341,858 2,270 7,586 157 349,444 2,427 Commercial 151,940 1,587 3,688 60 155,628 1,647 Construction of commercial 3,366 36 115 — 3,481 36 Commercial real estate 155,306 1,623 3,803 60 159,109 1,683 Farm land 2,912 28 1,002 — 3,914 28 Vacant land 6,390 166 210 4 6,600 170 Real estate secured 506,466 4,087 12,601 221 519,067 4,308 Commercial and industrial 121,060 1,043 84 — 121,144 1,043 Municipal 8,626 53 — — 8,626 53 Consumer 5,309 75 3 — 5,312 75 Unallocated allowance — 337 — — — 337 Totals $ 641,461 $ 5,595 $ 12,688 $ 221 $ 654,149 $ 5,816 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2016 Residential 1-4 family $ 6,098 $ — $ — $ — $ — $ — $ 6,098 $ — Residential 5+ multifamily 5,649 — — — — — 5,649 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,747 — — — — — 11,747 — Commercial 72,569 22 3,388 191 3,897 59 79,854 272 Construction of commercial 1,659 3 258 — — — 1,917 3 Commercial real estate 74,228 25 3,646 191 3,897 59 81,771 275 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 85,975 25 3,646 191 3,897 59 93,518 275 Commercial and industrial 20,020 16 — — 309 20 20,329 36 Municipal — — — — — — — — Consumer 52 — — — 16 — 68 — Unallocated allowance — — — — — — — — Totals $ 106,047 $ 41 $ 3,646 $ 191 $ 4,222 $ 79 $ 113,915 $ 311 |
Credit quality segments of loans receivable and allowance for loan losses | Business Activities Loans March 31, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 649,738 $ 5,088 $ — $ — $ 649,738 $ 5,088 Potential problem loans 4,346 174 — — 4,346 174 Impaired loans — — 12,132 174 12,132 174 Unallocated allowance — 530 — — — 530 Totals $ 654,084 $ 5,792 $ 12,132 $ 174 $ 666,216 $ 5,966 Acquired Loans March 31, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 98,588 $ 51 $ — $ — $ 98,588 $ 51 Potential problem loans 2,453 75 — — 2,453 75 Impaired loans — — 2,598 193 2,598 193 Unallocated allowance — — — — — — Totals $ 101,041 $ 126 $ 2,598 $ 193 $ 103,639 $ 319 Business Activities Loans December 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 636,645 $ 5,062 $ — $ — $ 636,645 $ 5,062 Potential problem loans 4,816 196 — — 4,816 196 Impaired loans — — 12,688 221 12,688 221 Unallocated allowance — 337 — — — 337 Totals $ 641,461 $ 5,595 $ 12,688 $ 221 $ 654,149 $ 5,816 Acquired Loans December 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 107,810 $ 55 $ — $ — $ 107,810 $ 55 Potential problem loans 2,459 65 — — 2,459 65 Impaired loans — — 3,646 191 3,646 191 Unallocated allowance — — — — — — Totals $ 110,269 $ 120 $ 3,646 $ 191 $ 113,915 $ 311 |
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 March 31, 2017 Residential $ 3,450 $ 3,608 $ 3,493 $ 140 $ 34 $ 3,640 $ 3,965 $ 3,594 $ 37 Home equity lines of credit 48 47 137 1 1 152 182 214 1 Residential real estate 3,498 3,655 3,630 141 35 3,792 4,147 3,808 38 Commercial 987 1,028 2,506 29 16 2,456 2,935 1,113 15 Construction of commercial — — — — — 113 120 114 2 Farm land — — — — — 994 1,153 976 — Vacant land 45 45 45 4 1 162 186 163 4 Real estate secured 4,530 4,728 6,181 174 52 7,517 8,541 6,174 59 Commercial and industrial — — — — — 81 104 129 1 Consumer — — — — — 4 7 4 — Totals $ 4,530 $ 4,728 $ 6,181 $ 174 $ 52 $ 7,602 $ 8,652 $ 6,307 $ 60 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 March 31, 2017 Residential $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity lines of credit — — — — — — — — — Residential real estate — — — — — — — — — Commercial 1,035 1,387 1,206 193 24 1,305 1,903 1,755 25 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,035 1,387 1,206 193 24 1,563 2,175 2,013 25 Commercial and industrial — — — — — — — — — Consumer — — — — — — — — — Totals $ 1,035 $ 1,387 $ 1,206 $ 193 $ 24 $ 1,563 $ 2,175 $ 2,013 $ 25 (1) The table above reflects the book, note and specific allowance as of March 31, 2017, while the average balances and income recognized are for the three months ended March 31, 2017. 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 March 31, 2016 Residential $ 7,155 $ 7,787 $ 8,032 $ 474 $ 18 $ 3,009 $ 3,230 $ 2,740 $ 20 Home equity lines of credit 488 513 503 21 — 330 347 296 — Residential real estate 7,643 8,300 8,535 495 18 3,339 3,577 3,036 20 Commercial 3,095 3,412 3,058 80 13 1,136 1,403 1,195 7 Construction of commercial 120 126 121 1 2 — — — — Farm land 11 13 372 1 — 1,013 1,109 656 — Vacant land 2,870 3,859 2,870 19 1 203 238 205 — Real estate secured 13,739 15,710 14,956 596 34 5,691 6,327 5,092 27 Commercial and industrial 94 98 95 1 — 415 468 421 1 Consumer — — — — — — — 20 — Totals $ 13,833 $ 15,808 $ 15,051 $ 597 $ 34 $ 6,106 $ 6,795 $ 5,533 $ 28 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 March 31, 2016 Residential $ 602 $ 716 $ 645 $ 69 $ — $ 300 $ 300 $ 263 $ — Home equity lines of credit — — — — — — — — — Residential real estate 602 716 645 69 — 300 300 263 — Commercial 331 723 547 27 4 2,255 2,853 2,176 13 Construction of commercial — — — — — 258 271 259 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 933 1,439 1,192 96 4 2,813 3,424 2,698 13 Commercial and industrial 332 439 83 114 — — — — — Consumer — — — — — — — — — Totals $ 1,265 $ 1,878 $ 1,275 $ 210 $ 4 $ 2,813 $ 3,424 $ 2,698 $ 13 (1) The table above reflects the book, note and specific allowance as of March 31, 2016, while the average balances and income recognized are for the three months ended March 31, 2016. |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
Balance of loans serviced for others and fair value of mortgage servicing rights | (in thousands) March 31, 2017 December 31, 2016 Residential mortgage loans serviced for others $ 123,925 $ 125,243 Fair value of mortgage servicing rights 810 902 |
Changes in mortgage servicing rights | Three months ended March 31, (in thousands) 2017 2016 Mortgage Servicing Rights Balance, beginning of period $ 339 $ 486 Originated 25 20 Amortization (1) (68 ) (51) Balance, end of period $ 296 $ 455 Valuation Allowance Balance, beginning of period $ (23 ) $ (3 ) Increase in impairment reserve (1) (2 ) (20 ) Balance, end of period (25 ) (23 ) Mortgage servicing rights, net $ 271 $ 432 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net, in the consolidated statements of income. |
PLEDGED ASSETS (Tables)
PLEDGED ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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) March 31, 2017 December 31, 2016 Securities available-for-sale (at fair value) $ 63,904 $ 63,833 Loans receivable 137,500 137,117 Total pledged assets $ 201,404 $ 200,950 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | Three months ended March 31, (in thousands, except per share data) 2017 2016 Net income $ 1,604 $ 1,512 Less: Undistributed earnings allocated to participating securities (10 ) (13 ) Net income allocated to common stock $ 1,594 $ 1,499 Weighted-average common shares issued 2,765 2,747 Less: Unvested restricted stock awards (16 ) (24 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,749 2,723 Add: Dilutive effect of stock options 19 18 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,768 2,741 Earnings per common share (basic) $ 0.58 $ 0.55 Earnings per common share (diluted) $ 0.58 $ 0.55 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 Total Capital (to risk-weighted assets) Salisbury $ 98,021 13.34 % $ 58,785 8.0 % n/a — Bank 94,859 12.91 58,785 8.0 $ 73,482 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 81,585 11.10 44,089 6.0 n/a — Bank 88,423 12.03 44,089 6.0 58,785 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 81,585 11.10 33,067 4.5 n/a — Bank 88,423 12.03 33,067 4.5 47,763 6.5 Tier 1 Capital (to average assets) Salisbury 81,585 8.83 37,498 4.0 n/a — Bank 88,423 9.59 37,423 4.0 46,778 5.0 To be Well Capitalized Actual For Capital Adequacy Purposes Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to risk-weighted assets) Salisbury $ 96,166 13.26 % $ 57,997 8.0 % n/a — Bank 93,690 12.92 57,996 8.0 $ 72,495 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 79,868 11.02 43,498 6.0 n/a — Bank 87,392 12.05 43,497 6.0 57,996 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 79,868 11.02 32,623 4.5 n/a — Bank 87,392 12.05 32,623 4.5 47,122 6.5 Tier 1 Capital (to average assets) Salisbury 79,868 8.69 37,282 4.0 n/a — Bank 87,392 9.57 36,762 4.0 45,953 5.0 |
ACCUMULATED OTHER COMPREHENSI26
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income | (in thousands) March 31, 2017 December 31, 2016 Unrealized gains on securities available-for-sale, net of tax $ 487 $ 477 Accumulated other comprehensive income, net $ 487 $ 477 |
FAIR VALUE OF ASSETS AND LIAB27
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 Assets at fair value on a recurring basis Municipal bonds $ — $ 12,953 $ — $ 12,953 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 49,209 — 49,209 Collateralized mortgage obligations: U.S. Government agencies — 6,363 — 6,363 Non-agency — 3,407 — 3,407 SBA bonds — 1,882 — 1,882 CRA mutual funds 822 — — 822 Corporate bonds — 2,041 — 2,041 Preferred stock 172 — — 172 Securities available-for-sale $ 994 $ 75,855 $ — $ 76,849 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,139 $ 5,139 Other real estate owned $ — $ — $ 3,833 $ 3,833 December 31, 2016 Assets at fair value on a recurring basis Municipal bonds $ — $ 15,996 $ — $ 15,996 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 53,301 — 53,301 Collateralized mortgage obligations: U.S. Government agencies — 1,474 — 1,474 Non-agency — 3,735 — 3,735 SBA bonds — 2,064 — 2,064 CRA mutual funds 818 — — 818 Corporate bonds — 2,013 — 2,013 Preferred stock 222 — — 222 Securities available-for-sale $ 1,040 $ 78,583 $ — $ 79,623 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,256 $ 5,256 Other real estate owned $ — $ — $ 3,773 $ 3,773 |
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 March 31, 2017 Financial Assets Cash and cash equivalents $ 41,292 $ 41,292 $ 41,292 $ — $ — Securities available-for-sale 76,849 76,849 994 75,855 — Federal Home Loan Bank stock 3,510 3,510 — 3,510 Loans held-for-sale 53 53 — — 53 Loans receivable, net 764,665 777,371 — — 777,371 Accrued interest receivable 2,431 2,431 — — 2,431 Cash surrender value of life insurance 14,126 14,126 14,126 — — Financial Liabilities Demand (non-interest-bearing) $ 201,215 $ 201,215 $ — $ — $ 201,215 Demand (interest-bearing) 132,527 132,527 — — 132,527 Money market 182,438 182,438 — — 182,438 Savings and other 141,085 141,085 — — 141,085 Certificates of deposit 115,151 116,305 — — 116,305 Deposits 772,416 773,570 — — 773,570 Repurchase agreements 2,350 2,350 — — 2,350 FHLBB advances 52,745 53,857 — — 53,857 Subordinated debt 9,794 10,391 — — 10,391 Note payable 335 370 — — 370 Capital lease liability 417 829 — — 829 Accrued interest payable 238 238 — — 238 December 31, 2016 Financial Assets Cash and cash equivalents $ 35,485 $ 35,485 $ 35,485 $ — $ — Securities available-for-sale 79,623 79,623 1,040 78,583 — Federal Home Loan Bank stock 3,211 3,211 — — 3,211 Loans receivable, net 763,184 747,442 — — 747,442 Accrued interest receivable 2,424 2,424 — — 2,424 Cash surrender value of life insurance 14,038 14,038 14,038 — — Financial Liabilities Demand (non-interest-bearing) $ 218,420 $ 218,420 $ — $ — $ 218,420 Demand (interest-bearing) 127,854 127,854 — — 127,854 Money market 182,476 182,476 — — 182,476 Savings and other 135,435 135,435 — — 135,435 Certificates of deposit 117,585 118,610 — — 118,610 Deposits 781,770 782,795 — — 782,795 Repurchase agreements 5,535 5,535 — — 5,535 FHLBB advances 37,188 38,440 — — 38,440 Subordinated debt 9,788 10,378 — — 10,378 Note payable 344 377 — — 377 Capital lease liability 418 841 — — 841 Accrued interest payable 89 89 — — 89 |
SECURITIES - Composition of Sec
SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized cost (1) | ||
Available-for-sale | ||
Municipal bonds | $ 12,816 | $ 15,800 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 49,217 | 53,407 |
Collateralized mortgage obligations, U.S. Government Agencies | 6,360 | 1,470 |
Collateralized mortgage obligations, Non-agency | 2,997 | 3,327 |
SBA bonds | 1,876 | 2,056 |
CRA mutual funds | 838 | 834 |
Corporate bonds | 2,000 | 2,000 |
Preferred stock | 7 | 7 |
Total securities available-for-sale | 76,111 | 78,901 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | 3,510 | 3,211 |
Gross unrealized gains | ||
Available-for-sale | ||
Municipal bonds | 137 | 197 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 221 | 229 |
Collateralized mortgage obligations, U.S. Government Agencies | 3 | 4 |
Collateralized mortgage obligations, Non-agency | 419 | 414 |
SBA bonds | 7 | 9 |
CRA mutual funds | ||
Corporate bonds | 41 | 16 |
Preferred stock | 165 | 215 |
Total securities available-for-sale | 993 | 1,084 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Gross unrealized losses | ||
Available-for-sale | ||
Municipal bonds | 1 | |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 229 | 335 |
Collateralized mortgage obligations, U.S. Government Agencies | ||
Collateralized mortgage obligations, Non-agency | 9 | 6 |
SBA bonds | 1 | 1 |
CRA mutual funds | 16 | 16 |
Corporate bonds | 3 | |
Preferred stock | ||
Total securities available-for-sale | 255 | 362 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Fair value | ||
Available-for-sale | ||
Municipal bonds | 12,953 | 15,996 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 49,209 | 53,301 |
Collateralized mortgage obligations, U.S. Government Agencies | 6,363 | 1,474 |
Collateralized mortgage obligations, Non-agency | 3,407 | 3,735 |
SBA bonds | 1,882 | 2,064 |
CRA mutual funds | 822 | 818 |
Corporate bonds | 2,041 | 2,013 |
Preferred stock | 172 | 222 |
Total securities available-for-sale | 76,849 | 79,623 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | $ 3,510 | $ 3,211 |
SECURITIES - Aggreggate fair va
SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Less Than 12 Months, Fair value | ||
Available-for-sale | ||
Municipal bonds | $ 517 | |
Mortgage-backed securities | $ 30,690 | 34,758 |
Collateralized mortgage obligations, Non-agency | 44 | 60 |
SBA bonds | 348 | 475 |
CRA mutual funds | 822 | 818 |
Corporate bonds | 498 | |
Total temporarily impaired securities | 31,904 | 37,126 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 174 | |
Total temporarily impaired and other-than-temporarily impaired securities | 37,300 | |
Less Than 12 Months, Unrealized losses | ||
Available-for-sale | ||
Municipal bonds | 1 | |
Mortgage-backed securities | 223 | 329 |
Collateralized mortgage obligations, Non-agency | 5 | |
SBA bonds | 1 | 1 |
CRA mutual funds | 16 | 16 |
Corporate bonds | 3 | |
Total temporarily impaired securities | 245 | 350 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 1 | |
Total temporarily impaired and other-than-temporarily impaired securities | 351 | |
12 Months or Longer, Fair value | ||
Available-for-sale | ||
Municipal bonds | ||
Mortgage-backed securities | 246 | 249 |
Collateralized mortgage obligations, Non-agency | 305 | 339 |
SBA bonds | 74 | |
CRA mutual funds | ||
Corporate bonds | ||
Total temporarily impaired securities | 625 | 588 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | ||
Total temporarily impaired and other-than-temporarily impaired securities | 599 | |
12 Months or Longer, Unrealized losses | ||
Available-for-sale | ||
Municipal bonds | ||
Mortgage-backed securities | 6 | 6 |
Collateralized mortgage obligations, Non-agency | 4 | 5 |
SBA bonds | ||
CRA mutual funds | ||
Corporate bonds | ||
Total temporarily impaired securities | 10 | 11 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | ||
Total temporarily impaired and other-than-temporarily impaired securities | 11 | |
Total, Fair value | ||
Available-for-sale | ||
Municipal bonds | 517 | |
Mortgage-backed securities | 30,936 | 35,007 |
Collateralized mortgage obligations, Non-agency | 349 | 399 |
SBA bonds | 422 | 475 |
CRA mutual funds | 822 | 818 |
Corporate bonds | 498 | |
Total temporarily impaired securities | 32,529 | 37,714 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 174 | |
Total temporarily impaired and other-than-temporarily impaired securities | 37,888 | |
Total, Unrealized losses | ||
Available-for-sale | ||
Municipal bonds | 1 | |
Mortgage-backed securities | 229 | 335 |
Collateralized mortgage obligations, Non-agency | 9 | 5 |
SBA bonds | 1 | 1 |
CRA mutual funds | 16 | 16 |
Corporate bonds | 3 | |
Total temporarily impaired securities | $ 255 | 361 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 1 | |
Total temporarily impaired and other-than-temporarily impaired securities | $ 362 |
SECURITIES - Amortized cost, fa
SECURITIES - Amortized cost, fair value and tax equivalent yield of securities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Municipal bonds - Within 1 year | |
Amortized cost | $ 75 |
Fair value | $ 75 |
Yield | 4.92% |
Municipal bonds - After 1 year but within 5 years | |
Amortized cost | $ 869 |
Fair value | $ 873 |
Yield | 5.48% |
Municipal bonds - After 10 years but within 15 years | |
Amortized cost | $ 4,478 |
Fair value | $ 4,522 |
Yield | 6.64% |
Municipal bonds - After 15 years | |
Amortized cost | $ 7,394 |
Fair value | $ 7,483 |
Yield | 6.73% |
Municipal bonds - Total | |
Amortized cost | $ 12,816 |
Fair value | $ 12,953 |
Yield | 6.61% |
Mortgage-backed securities - U.S. Government agency and U.S. Government-sponsored enterprises | |
Amortized cost | $ 49,217 |
Fair value | $ 49,209 |
Yield | 2.35% |
Collateralized mortgage obligations - U.S. Government agency and U.S. Government-sponsored enterprises | |
Amortized cost | $ 6,360 |
Fair value | $ 6,363 |
Yield | 2.64% |
Collateralized mortgage obligations - Non-agency | |
Amortized cost | $ 2,997 |
Fair value | $ 3,407 |
Yield | 4.04% |
SBA bonds | |
Amortized cost | $ 1,876 |
Fair value | $ 1,882 |
Yield | 3.48% |
CRA mutual funds | |
Amortized cost | $ 838 |
Fair value | $ 822 |
Yield | 4.51% |
Corporate bonds - After 5 years but within 10 years | |
Amortized cost | $ 2,000 |
Fair value | $ 2,041 |
Yield | 5.50% |
Preferred stock | |
Amortized cost | $ 7 |
Fair value | $ 172 |
Yield | 0.00% |
Securities available-for-sale | |
Amortized cost | $ 76,111 |
Fair value | $ 76,849 |
Yield | 3.29% |
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 | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2009 | |
Investments, Debt and Equity Securities [Abstract] | ||
Recognized losses for deterioration in credit quality | $ 1,128 | |
CRA mutual funds total fair value | $ 822 | |
CRA mutual funds total unrealized losses | $ (16) |
LOANS - Composition of loans re
LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Business Activites Loans | ||
Residential 1-4 family | $ 297,111 | $ 295,030 |
Residential 5+ multifamily | 9,938 | 7,976 |
Construction of residential 1-4 family | 10,990 | 10,951 |
Home equity lines of credit | 35,033 | 35,487 |
Residential real estate | 353,072 | 349,444 |
Commercial | 176,318 | 155,628 |
Construction of commercial | 4,352 | 3,481 |
Commercial real estate | 180,670 | 159,109 |
Farm land | 4,599 | 3,914 |
Vacant land | 6,567 | 6,600 |
Real estate secured | 544,908 | 519,067 |
Commercial and industrial | 107,491 | 121,144 |
Municipal | 8,737 | 8,626 |
Consumer | 5,080 | 5,312 |
Loans receivable, gross | 666,216 | 654,149 |
Deferred loan origination fees and costs, net | 1,095 | 1,247 |
Allowance for loan losses | (5,966) | (5,816) |
Loans receivable, net | 661,345 | 649,580 |
Loans held-for-sale | ||
Residential 1-4 family | 53 | |
Acquired Loans | ||
Residential 1-4 family | 6,016 | 6,098 |
Residential 5+ multifamily | 5,526 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 11,542 | 11,747 |
Commercial | 72,308 | 79,854 |
Construction of commercial | 1,857 | 1,917 |
Commercial real estate | 74,165 | 81,771 |
Farm land | ||
Vacant land | ||
Real estate secured | 85,707 | 93,518 |
Commercial and industrial | 17,869 | 20,329 |
Municipal | ||
Consumer | 63 | 68 |
Loans receivable, gross | 103,639 | 113,915 |
Deferred loan origination fees and costs, net | ||
Allowance for loan losses | (319) | (311) |
Loans receivable, net | 103,320 | 113,604 |
Loans held-for-sale | ||
Residential 1-4 family | ||
Total | ||
Residential 1-4 family | 303,127 | 301,128 |
Residential 5+ multifamily | 15,464 | 13,625 |
Construction of residential 1-4 family | 10,990 | 10,951 |
Home equity lines of credit | 35,033 | 35,487 |
Residential real estate | 364,614 | 361,191 |
Commercial | 248,626 | 235,482 |
Construction of commercial | 6,209 | 5,398 |
Commercial real estate | 254,835 | 240,880 |
Farm land | 4,599 | 3,914 |
Vacant land | 6,567 | 6,600 |
Real estate secured | 630,615 | 612,585 |
Commercial and industrial | 125,360 | 141,473 |
Municipal | 8,737 | 8,626 |
Consumer | 5,143 | 5,380 |
Loans receivable, gross | 769,855 | 768,064 |
Deferred loan origination fees and costs, net | 1,095 | 1,247 |
Allowance for loan losses | (6,285) | (6,127) |
Loans receivable, net | 764,665 | 763,184 |
Loans held-for-sale | ||
Residential 1-4 family | $ 53 |
LOANS - Composition of loans 34
LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Business Activities Loans - Pass | ||
Residential 1-4 family | $ 288,103 | $ 285,939 |
Residential 5+ multifamily | 7,928 | 5,907 |
Construction of residential 1-4 family | 10,990 | 10,951 |
Home equity lines of credit | 33,938 | 34,299 |
Residential real estate | 340,959 | 337,096 |
Commercial | 166,867 | 145,849 |
Construction of commercial | 4,239 | 3,366 |
Commercial real estate | 171,106 | 149,215 |
Farm land | 3,605 | 2,912 |
Vacant land | 6,484 | 6,513 |
Real estate secured | 522,154 | 495,736 |
Commercial and industrial | 106,007 | 118,804 |
Municipal | 8,737 | 8,626 |
Consumer | 5,060 | 5,288 |
Loans receivable, gross | 641,958 | 628,454 |
Business Activities Loans - Special mention | ||
Residential 1-4 family | 6,112 | 6,170 |
Residential 5+ multifamily | 1,849 | 1,906 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 852 | 512 |
Residential real estate | 8,813 | 8,588 |
Commercial | 3,720 | 3,759 |
Construction of commercial | ||
Commercial real estate | 3,720 | 3,759 |
Farm land | ||
Vacant land | 83 | 87 |
Real estate secured | 12,616 | 12,434 |
Commercial and industrial | 1,286 | 1,734 |
Municipal | ||
Consumer | 20 | 24 |
Loans receivable, gross | 13,922 | 14,192 |
Business Activities Loans - Substandard | ||
Residential 1-4 family | 2,896 | 2,832 |
Residential 5+ multifamily | 161 | 163 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 243 | 676 |
Residential real estate | 3,300 | 3,671 |
Commercial | 5,731 | 6,020 |
Construction of commercial | 113 | 115 |
Commercial real estate | 5,844 | 6,135 |
Farm land | 994 | 1,002 |
Vacant land | ||
Real estate secured | 10,138 | 10,808 |
Commercial and industrial | 198 | 606 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 10,336 | 11,414 |
Business Activities Loans - Doubtful | ||
Residential 1-4 family | 89 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 89 | |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | 89 | |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 89 | |
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 | 297,111 | 295,030 |
Residential 5+ multifamily | 9,938 | 7,976 |
Construction of residential 1-4 family | 10,990 | 10,951 |
Home equity lines of credit | 35,033 | 35,487 |
Residential real estate | 353,072 | 349,444 |
Commercial | 176,318 | 155,628 |
Construction of commercial | 4,352 | 3,481 |
Commercial real estate | 180,670 | 159,109 |
Farm land | 4,599 | 3,914 |
Vacant land | 6,567 | 6,600 |
Real estate secured | 544,908 | 519,067 |
Commercial and industrial | 107,491 | 121,144 |
Municipal | 8,737 | 8,626 |
Consumer | 5,080 | 5,312 |
Loans receivable, gross | 666,216 | 654,149 |
Acquired Loans - Pass | ||
Residential 1-4 family | 5,909 | 5,989 |
Residential 5+ multifamily | 5,526 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 11,435 | 11,638 |
Commercial | 64,985 | 70,007 |
Construction of commercial | 1,598 | 1,659 |
Commercial real estate | 66,583 | 71,666 |
Farm land | ||
Vacant land | ||
Real estate secured | 78,018 | 83,304 |
Commercial and industrial | 16,823 | 19,110 |
Municipal | ||
Consumer | 61 | 65 |
Loans receivable, gross | 94,902 | 102,479 |
Acquired Loans - Special Mention | ||
Residential 1-4 family | 107 | 109 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 107 | 109 |
Commercial | 2,590 | 4,059 |
Construction of commercial | ||
Commercial real estate | 2,590 | 4,059 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,697 | 4,168 |
Commercial and industrial | 987 | 1,160 |
Municipal | ||
Consumer | 2 | 3 |
Loans receivable, gross | 3,686 | 5,331 |
Acquired Loans - Substandard | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 4,733 | 5,788 |
Construction of commercial | 259 | 258 |
Commercial real estate | 4,992 | 6,046 |
Farm land | ||
Vacant land | ||
Real estate secured | 4,992 | 6,046 |
Commercial and industrial | 59 | 59 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 5,051 | 6,105 |
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 | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | ||
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 | 6,016 | 6,098 |
Residential 5+ multifamily | 5,526 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 11,542 | 11,747 |
Commercial | 72,308 | 79,854 |
Construction of commercial | 1,857 | 1,917 |
Commercial real estate | 74,165 | 81,771 |
Farm land | ||
Vacant land | ||
Real estate secured | 85,707 | 93,518 |
Commercial and industrial | 17,869 | 20,329 |
Municipal | ||
Consumer | 63 | 68 |
Loans receivable, gross | $ 103,639 | $ 113,915 |
LOANS - Composition of loans 35
LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Business Activities Loans - Current | ||
Residential 1-4 family | $ 291,506 | $ 291,941 |
Residential 5+ multifamily | 9,814 | 7,976 |
Construction of residential 1-4 family | 10,990 | 10,951 |
Home equity lines of credit | 34,418 | 35,190 |
Residential real estate | 346,728 | 346,058 |
Commercial | 173,684 | 152,905 |
Construction of commercial | 4,352 | 3,481 |
Commercial real estate | 178,036 | 156,386 |
Farm land | 3,866 | 2,402 |
Vacant land | 6,522 | 6,575 |
Real estate secured | 535,152 | 511,421 |
Commercial and industrial | 106,963 | 120,719 |
Municipal | 8,737 | 8,626 |
Consumer | 5,057 | 5,268 |
Loans receivable, gross | 655,909 | 646,034 |
Business Activities Loans - Past due 30-59 days | ||
Residential 1-4 family | 3,624 | 1,161 |
Residential 5+ multifamily | 124 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 421 | 155 |
Residential real estate | 4,169 | 1,316 |
Commercial | 497 | 451 |
Construction of commercial | ||
Commercial real estate | 497 | 451 |
Farm land | 10 | 789 |
Vacant land | 45 | 25 |
Real estate secured | 4,721 | 2,581 |
Commercial and industrial | 129 | 140 |
Municipal | ||
Consumer | 16 | 26 |
Loans receivable, gross | 4,866 | 2,747 |
Business Activities Loans - Past due 60-89 days | ||
Residential 1-4 family | 519 | 213 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 181 | 88 |
Residential real estate | 700 | 301 |
Commercial | 344 | 250 |
Construction of commercial | ||
Commercial real estate | 344 | 250 |
Farm land | ||
Vacant land | ||
Real estate secured | 1,044 | 551 |
Commercial and industrial | 343 | 239 |
Municipal | ||
Consumer | 7 | 15 |
Loans receivable, gross | 1,394 | 805 |
Business Activities Loans - Past due 90-179 days | ||
Residential 1-4 family | 327 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 13 | |
Residential real estate | 13 | 327 |
Commercial | 1,793 | |
Construction of commercial | ||
Commercial real estate | 1,793 | |
Farm land | ||
Vacant land | ||
Real estate secured | 13 | 2,120 |
Commercial and industrial | 30 | 46 |
Municipal | ||
Consumer | 3 | |
Loans receivable, gross | 43 | 2,169 |
Business Activities Loans - Past due 180 days and over | ||
Residential 1-4 family | 1,462 | 1,388 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 54 | |
Residential real estate | 1,462 | 1,442 |
Commercial | 1,793 | 229 |
Construction of commercial | ||
Commercial real estate | 1,793 | 229 |
Farm land | 723 | 723 |
Vacant land | ||
Real estate secured | 3,978 | 2,394 |
Commercial and industrial | 26 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 4,004 | 2,394 |
Business Activities Loans - Past due 30 days and over | ||
Residential 1-4 family | 5,605 | 3,089 |
Residential 5+ multifamily | 124 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 615 | 297 |
Residential real estate | 6,344 | 3,386 |
Commercial | 2,634 | 2,723 |
Construction of commercial | ||
Commercial real estate | 2,634 | 2,723 |
Farm land | 733 | 1,512 |
Vacant land | 45 | 25 |
Real estate secured | 9,756 | 7,646 |
Commercial and industrial | 528 | 425 |
Municipal | ||
Consumer | 23 | 44 |
Loans receivable, gross | 10,307 | 8,115 |
Business Activities Loans - Accruing 90 days and over | ||
Residential 1-4 family | 236 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 236 | |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | 236 | |
Commercial and industrial | 30 | 20 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 30 | 256 |
Business Activities Loans - Non-accrual | ||
Residential 1-4 family | 2,138 | 1,920 |
Residential 5+ multifamily | 161 | 163 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 87 | 519 |
Residential real estate | 2,386 | 2,602 |
Commercial | 1,793 | 2,022 |
Construction of commercial | ||
Commercial real estate | 1,793 | 2,022 |
Farm land | 994 | 1,002 |
Vacant land | ||
Real estate secured | 5,173 | 5,626 |
Commercial and industrial | 26 | 27 |
Municipal | ||
Consumer | 4 | 4 |
Loans receivable, gross | 5,203 | 5,657 |
Acquired Loans - Current | ||
Residential 1-4 family | 5,920 | 5,954 |
Residential 5+ multifamily | 5,526 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 11,446 | 11,603 |
Commercial | 66,214 | 76,471 |
Construction of commercial | 1,493 | 1,659 |
Commercial real estate | 67,707 | 78,130 |
Farm land | ||
Vacant land | ||
Real estate secured | 79,153 | 89,733 |
Commercial and industrial | 16,911 | 19,904 |
Municipal | ||
Consumer | 63 | 68 |
Loans receivable, gross | 96,127 | 109,705 |
Acquired Loans - Past due 30-59 days | ||
Residential 1-4 family | 47 | 144 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 47 | 144 |
Commercial | 2,349 | 762 |
Construction of commercial | 106 | |
Commercial real estate | 2,455 | 762 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,502 | 906 |
Commercial and industrial | 958 | 425 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 3,460 | 1,331 |
Acquired Loans - Past due 60-89 days | ||
Residential 1-4 family | 49 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 49 | |
Commercial | 2,179 | |
Construction of commercial | ||
Commercial real estate | 2,179 | |
Farm land | ||
Vacant land | ||
Real estate secured | 2,228 | |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 2,228 | |
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 | 346 | |
Construction of commercial | ||
Commercial real estate | 346 | |
Farm land | ||
Vacant land | ||
Real estate secured | 346 | |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 346 | |
Acquired Loans - Past due 180 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 | 1,566 | 2,275 |
Construction of commercial | 258 | 258 |
Commercial real estate | 1,824 | 2,533 |
Farm land | ||
Vacant land | ||
Real estate secured | 1,824 | 2,533 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 1,824 | 2,533 |
Acquired Loans - Past due 30 days and over | ||
Residential 1-4 family | 96 | 144 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 96 | 144 |
Commercial | 6,094 | 3,383 |
Construction of commercial | 364 | 258 |
Commercial real estate | 6,458 | 3,641 |
Farm land | ||
Vacant land | ||
Real estate secured | 6,554 | 3,785 |
Commercial and industrial | 958 | 425 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 7,512 | 4,210 |
Acquired 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 | ||
Acquired Loans - Non-accrual | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 1,566 | 2,621 |
Construction of commercial | 258 | 258 |
Commercial real estate | 1,824 | 2,879 |
Farm land | ||
Vacant land | ||
Real estate secured | 1,824 | 2,879 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 1,824 | $ 2,879 |
LOANS - Troubled debt restructu
LOANS - Troubled debt restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Integer | Mar. 31, 2016USD ($)Integer | |
Business Activities Loans - Residential real estate | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 89 | |
Post-modification balance | $ 89 | |
Business Activities Loans - Commercial real estate | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Business Activities Loans - Home equity lines of credit | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Business Activities Loans - Troubled debt restructurings | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 89 | |
Post-modification balance | $ 89 | |
Business Activities Loans - Refinance | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 89 | |
Post-modification balance | $ 89 | |
Business Activities Loans - Rate reduction and term extension | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Business Activities Loans - Debt consolidation and term extension | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Business Activities Loans - Debt consolidation, rate reduction, term extension and note bifurcation | ||
Quantity of troubled debt restructurings | Integer | ||
Pre-modification balance | ||
Post-modification balance | ||
Business Activities 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 | Mar. 31, 2017 | Mar. 31, 2016 |
Business Activities Loans - Beginning balance | ||
Residential | $ 2,427 | $ 2,477 |
Commercial | 1,683 | 1,466 |
Land | 198 | 188 |
Real estate | 4,308 | 4,131 |
Commercial and industrial | 1,043 | 683 |
Municipal | 53 | 61 |
Consumer | 75 | 124 |
Unallocated | 337 | 482 |
Totals | 5,816 | 5,481 |
Business Activities Loans - Provision | ||
Residential | 96 | 86 |
Commercial | 107 | 154 |
Land | 6 | (1) |
Real estate | 209 | 239 |
Commercial and industrial | (217) | 125 |
Municipal | 2 | (2) |
Consumer | 39 | 11 |
Unallocated | 193 | (70) |
Totals | 226 | 303 |
Business Activities Loans - Charge-offs | ||
Residential | (43) | (106) |
Commercial | (38) | (36) |
Land | (15) | (23) |
Real estate | (96) | (165) |
Commercial and industrial | (1) | (31) |
Municipal | ||
Consumer | (30) | (23) |
Unallocated | ||
Totals | (127) | (219) |
Business Activities Loans - Recoveries | ||
Residential | 2 | 1 |
Commercial | 1 | |
Land | ||
Real estate | 2 | 2 |
Commercial and industrial | 41 | 4 |
Municipal | ||
Consumer | 8 | 2 |
Unallocated | ||
Totals | 51 | 8 |
Business Activities Loans - Ending balance | ||
Residential | 2,482 | 2,458 |
Commercial | 1,752 | 1,585 |
Land | 189 | 164 |
Real estate | 4,423 | 4,207 |
Commercial and industrial | 866 | 781 |
Municipal | 55 | 59 |
Consumer | 92 | 114 |
Unallocated | 530 | 412 |
Totals | 5,966 | 5,573 |
Acquired Loans - Beginning balance | ||
Residential | 79 | |
Commercial | 275 | 132 |
Land | ||
Real estate | 275 | 211 |
Commercial and industrial | 36 | 24 |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | 311 | 235 |
Acquired Loans - Provision | ||
Residential | (10) | |
Commercial | 118 | 56 |
Land | ||
Real estate | 118 | 46 |
Commercial and industrial | 8 | 114 |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | 126 | 160 |
Acquired Loans - Charge-offs | ||
Residential | ||
Commercial | (150) | (96) |
Land | ||
Real estate | (150) | (96) |
Commercial and industrial | (1) | |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | (150) | (97) |
Acquired Loans - Recoveries | ||
Residential | ||
Commercial | 28 | 2 |
Land | ||
Real estate | 28 | 2 |
Commercial and industrial | 4 | 4 |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | 32 | 6 |
Acquired Loans - Ending balance | ||
Residential | 69 | |
Commercial | 271 | 94 |
Land | ||
Real estate | 271 | 163 |
Commercial and industrial | 48 | 141 |
Municipal | ||
Consumer | ||
Unallocated | ||
Totals | $ 319 | $ 304 |
LOANS - Composition of loans 38
LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Business Activities Loans - Collectively evaluated Loans | ||
Residential 1-4 family | $ 291,788 | $ 289,900 |
Residential 5+ multifamily | 8,171 | 6,153 |
Construction of residential 1-4 family | 10,990 | 10,951 |
Home equity lines credit | 34,833 | 34,854 |
Residential real estate | 345,782 | 341,858 |
Commercial | 172,875 | 151,940 |
Construction of commercial | 4,239 | 3,366 |
Commercial real estate | 177,114 | 155,306 |
Farm land | 3,605 | 2,912 |
Vacant land | 6,360 | 6,390 |
Real estate secured | 532,861 | 506,466 |
Commercial and industrial | 107,410 | 121,060 |
Municipal | 8,737 | 8,626 |
Consumer | 5,076 | 5,309 |
Unallocated allowance | ||
Totals | 654,084 | 641,461 |
Business Activities Loans - Collectively evaluated Allowance | ||
Residential 1-4 family | 1,857 | 1,797 |
Residential 5+ multifamily | 78 | 56 |
Construction of residential 1-4 family | 77 | 91 |
Home equity lines credit | 329 | 326 |
Residential real estate | 2,341 | 2,270 |
Commercial | 1,692 | 1,587 |
Construction of commercial | 31 | 36 |
Commercial real estate | 1,723 | 1,623 |
Farm land | 39 | 28 |
Vacant land | 146 | 166 |
Real estate secured | 4,249 | 4,087 |
Commercial and industrial | 866 | 1,043 |
Municipal | 55 | 53 |
Consumer | 92 | 75 |
Unallocated allowance | 530 | 337 |
Totals | 5,792 | 5,595 |
Business Activities Loans - Individually evaluated Loans | ||
Residential 1-4 family | 5,323 | 5,130 |
Residential 5+ multifamily | 1,767 | 1,823 |
Construction of residential 1-4 family | ||
Home equity lines credit | 200 | 633 |
Residential real estate | 7,290 | 7,586 |
Commercial | 3,443 | 3,688 |
Construction of commercial | 113 | 115 |
Commercial real estate | 3,556 | 3,803 |
Farm land | 994 | 1,002 |
Vacant land | 207 | 210 |
Real estate secured | 12,047 | 12,601 |
Commercial and industrial | 81 | 84 |
Municipal | ||
Consumer | 4 | 3 |
Unallocated allowance | ||
Totals | 12,132 | 12,688 |
Business Activities Loans - Individually evaluated Allowance | ||
Residential 1-4 family | 134 | 129 |
Residential 5+ multifamily | 6 | 6 |
Construction of residential 1-4 family | ||
Home equity lines credit | 1 | 22 |
Residential real estate | 141 | 157 |
Commercial | 29 | 60 |
Construction of commercial | ||
Commercial real estate | 29 | 60 |
Farm land | ||
Vacant land | 4 | 4 |
Real estate secured | 174 | 221 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 174 | 221 |
Business Activities Loans - Total portfolio Loans | ||
Residential 1-4 family | 297,111 | 295,030 |
Residential 5+ multifamily | 9,938 | 7,976 |
Construction of residential 1-4 family | 10,990 | 10,951 |
Home equity lines credit | 35,033 | 35,487 |
Residential real estate | 353,072 | 349,444 |
Commercial | 176,318 | 155,628 |
Construction of commercial | 4,352 | 3,481 |
Commercial real estate | 180,670 | 159,109 |
Farm land | 4,599 | 3,914 |
Vacant land | 6,567 | 6,600 |
Real estate secured | 544,908 | 519,067 |
Commercial and industrial | 107,491 | 121,144 |
Municipal | 8,737 | 8,626 |
Consumer | 5,080 | 5,312 |
Unallocated allowance | ||
Totals | 666,216 | 654,149 |
Business Activities Loans - Total portfolio Allowance | ||
Residential 1-4 family | 1,991 | 1,926 |
Residential 5+ multifamily | 84 | 62 |
Construction of residential 1-4 family | 77 | 91 |
Home equity lines credit | 330 | 348 |
Residential real estate | 2,482 | 2,427 |
Commercial | 1,721 | 1,647 |
Construction of commercial | 31 | 36 |
Commercial real estate | 1,752 | 1,683 |
Farm land | 39 | 28 |
Vacant land | 150 | 170 |
Real estate secured | 4,423 | 4,308 |
Commercial and industrial | 866 | 1,043 |
Municipal | 55 | 53 |
Consumer | 92 | 75 |
Unallocated allowance | 530 | 337 |
Totals | 5,966 | 5,816 |
Acquired Loans - Collectively evaluated Loans | ||
Residential 1-4 family | 6,016 | 6,098 |
Residential 5+ multifamily | 5,526 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | 11,542 | 11,747 |
Commercial | 66,112 | 72,569 |
Construction of commercial | 1,599 | 1,659 |
Commercial real estate | 67,711 | 74,228 |
Farm land | ||
Vacant land | ||
Real estate secured | 79,253 | 85,975 |
Commercial and industrial | 17,736 | 20,020 |
Municipal | ||
Consumer | 48 | 52 |
Unallocated allowance | ||
Totals | 97,037 | 106,047 |
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 | 23 | 22 |
Construction of commercial | 2 | 3 |
Commercial real estate | 25 | 25 |
Farm land | ||
Vacant land | ||
Real estate secured | 25 | 25 |
Commercial and industrial | 14 | 16 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 39 | 41 |
Acquired Loans - Individually evaluated Loans | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | ||
Commercial | 2,340 | 3,388 |
Construction of commercial | 258 | 258 |
Commercial real estate | 2,598 | 3,646 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,598 | 3,646 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 2,598 | 3,646 |
Acquired Loans - Individually evaluated Allowance | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | ||
Commercial | 193 | 191 |
Construction of commercial | ||
Commercial real estate | 193 | 191 |
Farm land | ||
Vacant land | ||
Real estate secured | 193 | 191 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 193 | 191 |
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 | 3,856 | 3,897 |
Construction of commercial | ||
Commercial real estate | 3,856 | 3,897 |
Farm land | ||
Vacant land | ||
Real estate secured | 3,856 | 3,897 |
Commercial and industrial | 133 | 309 |
Municipal | ||
Consumer | 15 | 16 |
Unallocated allowance | ||
Totals | 4,004 | 4,222 |
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 | 53 | 59 |
Construction of commercial | ||
Commercial real estate | 53 | 59 |
Farm land | ||
Vacant land | ||
Real estate secured | 53 | 59 |
Commercial and industrial | 34 | 20 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 87 | 79 |
Acquired Loans - Total portfolio Loans | ||
Residential 1-4 family | 6,016 | 6,098 |
Residential 5+ multifamily | 5,526 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | 11,542 | 11,747 |
Commercial | 72,308 | 79,854 |
Construction of commercial | 1,857 | 1,917 |
Commercial real estate | 74,165 | 81,771 |
Farm land | ||
Vacant land | ||
Real estate secured | 85,707 | 93,518 |
Commercial and industrial | 17,869 | 20,329 |
Municipal | ||
Consumer | 63 | 68 |
Unallocated allowance | ||
Totals | 103,639 | 113,915 |
Acquired Loans - Total portfolio Allowance | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | ||
Commercial | 269 | 272 |
Construction of commercial | 2 | 3 |
Commercial real estate | 271 | 275 |
Farm land | ||
Vacant land | ||
Real estate secured | 271 | 275 |
Commercial and industrial | 48 | 36 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 319 | $ 311 |
LOANS - Credit quality segments
LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Business Activities Loans - Collectively evaluated Loans | ||
Performing loans | $ 649,738 | $ 636,645 |
Potential problem loans | 4,346 | 4,816 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 654,084 | 641,461 |
Business Activities Loans - Collectively evaluated Allowance | ||
Performing loans | 5,088 | 5,062 |
Potential problem loans | 174 | 196 |
Impaired loans | ||
Unallocated allowance | 530 | 337 |
Totals | 5,792 | 5,595 |
Business Activities Loans - Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 12,132 | 12,688 |
Unallocated allowance | ||
Totals | 12,132 | 12,688 |
Business Activities Loans - Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 174 | 221 |
Unallocated allowance | ||
Totals | 174 | 221 |
Business Activities Loans - Total portfolio Loans | ||
Performing loans | 649,738 | 636,645 |
Potential problem loans | 4,346 | 4,816 |
Impaired loans | 12,132 | 12,688 |
Unallocated allowance | ||
Totals | 666,216 | 654,149 |
Business Activities Loans - Total portfolio Allowance | ||
Performing loans | 5,088 | 5,062 |
Potential problem loans | 174 | 196 |
Impaired loans | 174 | 221 |
Unallocated allowance | 530 | 337 |
Totals | 5,966 | 5,816 |
Acquired Loans - Collectively evaluated Loans | ||
Performing loans | 98,588 | 107,810 |
Potential problem loans | 2,453 | 2,459 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 101,041 | 110,269 |
Acquired Loans - Collectively evaluated Allowance | ||
Performing loans | 51 | 55 |
Potential problem loans | 75 | 65 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 126 | 120 |
Acquired Loans - Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 2,598 | 3,646 |
Unallocated allowance | ||
Totals | 2,598 | 3,646 |
Acquired Loans - Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 193 | 191 |
Unallocated allowance | ||
Totals | 193 | 191 |
Acquired Loans - Total portfolio Loans | ||
Performing loans | 98,588 | 107,810 |
Potential problem loans | 2,453 | 2,459 |
Impaired loans | 2,598 | 3,646 |
Unallocated allowance | ||
Totals | 103,639 | 113,915 |
Acquired Loans - Total portfolio Allowance | ||
Performing loans | 51 | 55 |
Potential problem loans | 75 | 65 |
Impaired loans | 193 | 191 |
Unallocated allowance | ||
Totals | $ 319 | $ 311 |
LOANS - Certain data with respe
LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Book | ||
Residential 1-4 family | $ 3,450 | $ 7,155 |
Home equity lines of credit | 48 | 488 |
Residential real estate | 3,498 | 7,643 |
Commercial | 987 | 3,095 |
Commercial construction | 120 | |
Farm land | 11 | |
Vacant land | 45 | 2,870 |
Real estate secured | 4,530 | 13,739 |
Commercial and industrial | 94 | |
Consumer | ||
Totals | 4,530 | 13,833 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Note | ||
Residential 1-4 family | 3,608 | 7,787 |
Home equity lines of credit | 47 | 513 |
Residential real estate | 3,655 | 8,300 |
Commercial | 1,028 | 3,412 |
Commercial construction | 126 | |
Farm land | 13 | |
Vacant land | 45 | 3,859 |
Real estate secured | 4,728 | 15,710 |
Commercial and industrial | 98 | |
Consumer | ||
Totals | 4,728 | 15,808 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Average | ||
Residential 1-4 family | 3,493 | 8,032 |
Home equity lines of credit | 137 | 503 |
Residential real estate | 3,630 | 8,535 |
Commercial | 2,506 | 3,058 |
Commercial construction | 121 | |
Farm land | 372 | |
Vacant land | 45 | 2,870 |
Real estate secured | 6,181 | 14,956 |
Commercial and industrial | 95 | |
Consumer | ||
Totals | 6,181 | 15,051 |
Business Activities Loans - Impaired loans with specific allowance - Specific allowance | ||
Residential 1-4 family | 140 | 474 |
Home equity lines of credit | 1 | 21 |
Residential real estate | 141 | 495 |
Commercial | 29 | 80 |
Commercial construction | 1 | |
Farm land | 1 | |
Vacant land | 4 | 19 |
Real estate secured | 174 | 596 |
Commercial and industrial | 1 | |
Consumer | ||
Totals | 174 | 597 |
Business Activities Loans - Impaired loans with specific allowance - Income recognized | ||
Residential 1-4 family | 34 | 18 |
Home equity lines of credit | 1 | |
Residential real estate | 35 | 18 |
Commercial | 16 | 13 |
Commercial construction | 2 | |
Farm land | ||
Vacant land | 1 | 1 |
Real estate secured | 52 | 34 |
Commercial and industrial | ||
Consumer | ||
Totals | 52 | 34 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Book | ||
Residential 1-4 family | 3,640 | 3,009 |
Home equity lines of credit | 152 | 330 |
Residential real estate | 3,792 | 3,339 |
Commercial | 2,456 | 1,136 |
Commercial construction | 113 | |
Farm land | 994 | 1,013 |
Vacant land | 162 | 203 |
Real estate secured | 7,517 | 5,691 |
Commercial and industrial | 81 | 415 |
Consumer | 4 | |
Totals | 7,602 | 6,106 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Note | ||
Residential 1-4 family | 3,965 | 3,230 |
Home equity lines of credit | 182 | 347 |
Residential real estate | 4,147 | 3,577 |
Commercial | 2,935 | 1,403 |
Commercial construction | 120 | |
Farm land | 1,153 | 1,109 |
Vacant land | 186 | 238 |
Real estate secured | 8,541 | 6,327 |
Commercial and industrial | 104 | 468 |
Consumer | 7 | |
Totals | 8,652 | 6,795 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Average | ||
Residential 1-4 family | 3,594 | 2,740 |
Home equity lines of credit | 214 | 296 |
Residential real estate | 3,808 | 3,036 |
Commercial | 1,113 | 1,195 |
Commercial construction | 114 | |
Farm land | 976 | 656 |
Vacant land | 163 | 205 |
Real estate secured | 6,174 | 5,092 |
Commercial and industrial | 129 | 421 |
Consumer | 4 | 20 |
Totals | 6,307 | 5,533 |
Business Activities Loans - Impaired loans with no specific allowance - Income recognized | ||
Residential 1-4 family | 37 | 20 |
Home equity lines of credit | 1 | |
Residential real estate | 38 | 20 |
Commercial | 15 | 7 |
Commercial construction | 2 | |
Farm land | ||
Vacant land | 4 | |
Real estate secured | 59 | 27 |
Commercial and industrial | 1 | 1 |
Consumer | ||
Totals | 60 | 28 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Book | ||
Residential 1-4 family | 602 | |
Home equity lines of credit | ||
Residential real estate | 602 | |
Commercial | 1,035 | 331 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 1,035 | 933 |
Commercial and industrial | 332 | |
Consumer | ||
Totals | 1,035 | 1,265 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Note | ||
Residential 1-4 family | 716 | |
Home equity lines of credit | ||
Residential real estate | 716 | |
Commercial | 1,387 | 723 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 1,387 | 1,439 |
Commercial and industrial | 439 | |
Consumer | ||
Totals | 1,387 | 1,878 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Average | ||
Residential 1-4 family | 645 | |
Home equity lines of credit | ||
Residential real estate | 645 | |
Commercial | 1,206 | 547 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 1,206 | 1,192 |
Commercial and industrial | 83 | |
Consumer | ||
Totals | 1,206 | 1,275 |
Acquired Loans - Impaired loans with specific allowance - Specific allowance | ||
Residential 1-4 family | 69 | |
Home equity lines of credit | ||
Residential real estate | 69 | |
Commercial | 193 | 27 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 193 | 96 |
Commercial and industrial | 114 | |
Consumer | ||
Totals | 193 | 210 |
Acquired Loans - Impaired loans with specific allowance - Income recognized | ||
Residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 24 | 4 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 24 | 4 |
Commercial and industrial | ||
Consumer | ||
Totals | 24 | 4 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Book | ||
Residential 1-4 family | 300 | |
Home equity lines of credit | ||
Residential real estate | 300 | |
Commercial | 1,305 | 2,255 |
Commercial construction | 258 | 258 |
Farm land | ||
Vacant land | ||
Real estate secured | 1,563 | 2,813 |
Commercial and industrial | ||
Consumer | ||
Totals | 1,563 | 2,813 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Note | ||
Residential 1-4 family | 300 | |
Home equity lines of credit | ||
Residential real estate | 300 | |
Commercial | 1,903 | 2,853 |
Commercial construction | 272 | 271 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,175 | 3,424 |
Commercial and industrial | ||
Consumer | ||
Totals | 2,175 | 3,424 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Average | ||
Residential 1-4 family | 300 | |
Home equity lines of credit | ||
Residential real estate | 263 | |
Commercial | 1,755 | 2,176 |
Commercial construction | 258 | 259 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,013 | 2,698 |
Commercial and industrial | ||
Consumer | ||
Totals | 2,013 | 2,698 |
Acquired Loans - Impaired loans with no specific allowance - Income recognized | ||
Residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 25 | 13 |
Commercial construction | ||
Farm land | ||
Vacant land | ||
Real estate secured | 25 | 13 |
Commercial and industrial | ||
Consumer | ||
Totals | $ 25 | $ 13 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
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 | $ 117 | $ 365 | |
Investment in residential mortgage loans collateralized by real estate in process of foreclosure | 1,000 | $ 2,100 | |
Carrying amount of foreclosed residential real estate held as a result of obtaining physical possession | $ 3,500 | $ 3,600 |
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 | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2016 | |
Residential mortgage loans serviced for others | $ 123,925 | $ 125,243 | |
Fair value of mortgage servicing rights | $ 810 | $ 902 |
MORTGAGE SERVICING RIGHTS - Cha
MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - Changes in mortgage servicing rights - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Mortgage Servicing Rights | |||
Balance, beginning of period | $ 339 | $ 486 | |
Originated | 25 | 20 | |
Amortization (1) | [1] | (68) | (51) |
Balance, end of period | 296 | 455 | |
Valuation Allowance | |||
Balance, beginning of period | (23) | (3) | |
Increase in impairment reserve (1) | [1] | (2) | (20) |
Balance, end of period | (25) | (23) | |
Mortgage servicing rights, net | $ 271 | $ 432 | |
[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 | Mar. 31, 2017 | Dec. 31, 2016 |
Securities available-for-sale (at fair value) | $ 63,904 | $ 63,833 |
Loans receivable | 137,500 | 137,117 |
Total pledged assets | $ 201,404 | $ 200,950 |
PLEDGED ASSETS (Details Narrati
PLEDGED ASSETS (Details Narrative) $ in Thousands | Mar. 31, 2017USD ($) |
Guarantees [Abstract] | |
Securities pledged to secure public deposits | $ 58,400 |
Securities pledged to secure repurchase agreements | 5,500 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income | $ 1,604 | $ 1,512 |
Less: Undistributed earnings allocated to participating securities | (10) | (13) |
Net income allocated to common stock | 1,594 | 1,499 |
Weighted-average common shares issued | 2,765 | 2,747 |
Less: Unvested restricted stock awards | (16) | (24) |
Weighted average common shares outstanding used to calculate basic earnings per common share | 2,749 | 2,723 |
Add: Dilutive effect of stock options | 19 | 18 |
Weighted-average common shares outstanding used to calculate diluted earnings per common share | $ 2,768 | $ 2,741 |
Earnings per common share (basic) | $ 0.58 | $ 0.55 |
Earnings per common share (diluted) | $ 0.58 | $ 0.55 |
SHAREHOLDERS' EQUITY - Actual r
SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Salisbury | |||
Total Capital (to risk-weighted assets) | |||
Actual - Amount | $ 98,021 | $ 96,166 | |
Actual - Ratio | 13.34% | 13.26% | |
For Capital Adequacy - Amount | $ 58,785 | $ 57,997 | |
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 | $ 81,585 | $ 79,868 | |
Actual - Ratio | 11.10% | 11.02% | |
For Capital Adequacy - Amount | $ 44,089 | $ 43,498 | |
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 | $ 81,585 | $ 79,868 | |
Actual - Ratio | 11.10% | 11.02% | |
For Capital Adequacy - Amount | $ 33,067 | $ 32,623 | |
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 | $ 81,585 | $ 79,868 | |
Actual - Ratio | 8.83% | 8.69% | |
For Capital Adequacy - Amount | $ 37,498 | $ 37,282 | |
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 | $ 93,690 | $ 94,859 | |
Actual - Ratio | 12.92% | 12.91% | |
For Capital Adequacy - Amount | $ 57,996 | $ 58,785 | |
For Capital Adequacy - Ratio | 8.00% | 8.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 72,495 | $ 73,482 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 10.00% | 10.00% | |
Tier 1 Capital (to risk-weighted assets) | |||
Actual - Amount | $ 87,392 | $ 88,423 | |
Actual - Ratio | 12.05% | 12.03% | |
For Capital Adequacy - Amount | $ 43,497 | $ 44,089 | |
For Capital Adequacy - Ratio | 6.00% | 6.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 57,996 | $ 58,785 | |
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 | $ 87,392 | $ 88,423 | |
Actual - Ratio | 12.05% | 12.03% | |
For Capital Adequacy - Amount | $ 32,623 | $ 33,067 | |
For Capital Adequacy - Ratio | 4.50% | 4.50% | |
To Be Well Capitalized - Amount | $ 47,122 | $ 47,763 | |
To Be Well Capitalized - Ratio | 6.50% | 6.50% | |
Tier 1 Capital (to average assets) | |||
Actual - Amount | $ 87,392 | $ 88,423 | |
Actual - Ratio | 9.51% | 9.59% | |
For Capital Adequacy - Amount | $ 37,762 | $ 37,423 | |
For Capital Adequacy - Ratio | 4.00% | 4.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 45,953 | $ 46,778 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
BENEFITS (Details Narrative)
BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||||||
Mar. 31, 2017 | Mar. 31, 2016 | Apr. 28, 2017 | Feb. 20, 2017 | Feb. 14, 2017 | Feb. 09, 2017 | Feb. 01, 2017 | Jan. 27, 2017 | Jan. 09, 2017 | Jan. 29, 2016 | Jan. 02, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||||||||||
401(k) Plan contribution expense | $ 285 | $ 216 | |||||||||
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements | 18 | 19 | |||||||||
Employee Stock Ownership Plan (ESOP) | |||||||||||
ESOP expense | 34 | 36 | |||||||||
Other Retirement Plans | |||||||||||
Expenses related to discretionary contribution to Executives' account | 21 | 11 | |||||||||
Grants of Phantom Stock Appreciation Units pursuant to the Plan | 56,600 | 47,470 | 48,894 | ||||||||
Grants of Restricted Stock and Options | |||||||||||
Stock options exercised by former Riverside Bank executives, shares | 1,350 | 5,400 | 1,350 | 1,350 | 2,700 | ||||||
Stock options exercised by former Riverside Bank executives, price per share | $ 25.93 | $ 25.93 | $ 25.93 | $ 25.93 | $ 25.93 | ||||||
Shares of restricted stock granted pursuant to 2011 Long Term Incentive Plan | 10,750 | 15,800 | |||||||||
Fair value of the stock as of the grant date, 2011 Long Term Incentive Plan | $ 419 | $ 466 | |||||||||
Stock granted to directors as a component of annual compensation | 2,056 | ||||||||||
Fair value of the stock as of the grant date, component of annual compensation | $ 80 | ||||||||||
Expense related to grants of restricted stock and options | $ 61 | 47 | |||||||||
Total shares of common stock available under 2017 LTIP | 200,000 | ||||||||||
Unrecognized compensation cost relating to awards | $ 288 | $ 529 | |||||||||
Forfeiture of restricted common stock, shares | (200) |
ACCUMULATED OTHER COMPREHENSI49
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of accumulated other comprehensive income (Details) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Unrealized gains on securities available-for-sale, net of tax | $ 487 | $ 477 |
Accumulated other comprehensive income, net | $ 487 | $ 477 |
FAIR VALUE OF ASSETS AND LIAB50
FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Measurements Using - Level 1 | ||
Assets at fair value on a recurring basis | ||
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 | 822 | 818 |
Corporate bonds | ||
Preferred stock | 172 | 222 |
Securities available-for-sale | 994 | 1,040 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | ||
Other real estate owned | ||
Fair Value Measurements Using - Level 2 | ||
Assets at fair value on a recurring basis | ||
Municipal bonds | 12,953 | 15,996 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 49,209 | 53,301 |
Collateralized mortgage obligations: U.S. Government agencies | 6,363 | 1,474 |
Collateralized mortgage obligations: Non-agency | 3,407 | 3,735 |
SBA bonds | 1,882 | 2,064 |
CRA mutual funds | ||
Corporate bonds | 2,041 | 2,013 |
Preferred stock | ||
Securities available-for-sale | 75,855 | 78,583 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | ||
Other real estate owned | ||
Fair Value Measurements Using - Level 3 | ||
Assets at fair value on a recurring basis | ||
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 | 5,139 | 5,256 |
Other real estate owned | 3,833 | 3,773 |
Assets at fair value | ||
Assets at fair value on a recurring basis | ||
Municipal bonds | 12,953 | 15,996 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 49,209 | 53,301 |
Collateralized mortgage obligations: U.S. Government agencies | 6,363 | 1,474 |
Collateralized mortgage obligations: Non-agency | 3,407 | 3,735 |
SBA bonds | 1,882 | 2,064 |
CRA mutual funds | 822 | 818 |
Corporate bonds | 2,041 | 2,013 |
Preferred stock | 172 | 222 |
Securities available-for-sale | 76,849 | 79,623 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | 5,139 | 5,256 |
Other real estate owned | $ 3,833 | $ 3,773 |
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 | Mar. 31, 2017 | Dec. 31, 2016 |
Carrying value | ||
Financial Assets | ||
Cash and cash equivalents | $ 41,292 | $ 35,485 |
Securities available-for-sale | 76,849 | 79,623 |
Federal Home Loan Bank stock | 3,510 | 3,211 |
Loans held-for-sale | 53 | |
Loans receivable, net | 764,665 | 763,184 |
Accrued interest receivable | 2,431 | 2,424 |
Cash surrender value of life insurance | 14,126 | 14,038 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 201,215 | 218,420 |
Demand (interest-bearing) | 132,527 | 127,854 |
Money market | 182,438 | 182,476 |
Savings and other | 141,085 | 135,435 |
Certificates of deposit | 115,151 | 117,585 |
Deposits | 772,416 | 781,770 |
Repurchase agreements | 2,350 | 5,535 |
FHLBB advances | 52,745 | 37,188 |
Subordinated debt | 9,794 | 9,788 |
Note payable | 335 | 344 |
Capital lease liability | 417 | 418 |
Accrued interest payable | 238 | 89 |
Estimated fair value | ||
Financial Assets | ||
Cash and cash equivalents | 41,292 | 35,485 |
Securities available-for-sale | 76,849 | 79,623 |
Federal Home Loan Bank stock | 3,510 | 3,211 |
Loans held-for-sale | 53 | |
Loans receivable, net | 777,371 | 774,442 |
Accrued interest receivable | 2,431 | 2,424 |
Cash surrender value of life insurance | 14,126 | 14,038 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 201,215 | 218,420 |
Demand (interest-bearing) | 132,527 | 127,854 |
Money market | 182,438 | 182,476 |
Savings and other | 141,085 | 135,435 |
Certificates of deposit | 116,305 | 118,610 |
Deposits | 773,570 | 782,795 |
Repurchase agreements | 2,350 | 5,535 |
FHLBB advances | 53,857 | 38,440 |
Subordinated debt | 10,391 | 10,378 |
Note payable | 370 | 377 |
Capital lease liability | 829 | 841 |
Accrued interest payable | 238 | 89 |
Fair Value Measurements Using - Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 41,292 | 35,485 |
Securities available-for-sale | 994 | 1,040 |
Federal Home Loan Bank stock | ||
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance | 14,126 | 14,038 |
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 2 | ||
Financial Assets | ||
Cash and cash equivalents | ||
Securities available-for-sale | 75,855 | 78,583 |
Federal Home Loan Bank stock | 3,211 | |
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | ||
Demand (interest-bearing) | ||
Money market | ||
Savings and other | ||
Certificates of deposit | ||
Deposits | ||
Repurchase agreements | ||
FHLBB advances | ||
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 | 3,510 | |
Loans held-for-sale | 53 | |
Loans receivable, net | 777,371 | 774,442 |
Accrued interest receivable | 2,431 | 2,424 |
Cash surrender value of life insurance | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | 201,215 | 218,420 |
Demand (interest-bearing) | 132,527 | 127,854 |
Money market | 182,438 | 182,476 |
Savings and other | 141,085 | 135,435 |
Certificates of deposit | 116,305 | 118,610 |
Deposits | 773,570 | 782,795 |
Repurchase agreements | 2,350 | 5,535 |
FHLBB advances | 53,857 | 38,440 |
Subordinated debt | 10,391 | 10,378 |
Note payable | 370 | 377 |
Capital lease liability | 829 | 841 |
Accrued interest payable | $ 238 | $ 89 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - $ / shares | 1 Months Ended | |
May 26, 2017 | Apr. 28, 2017 | |
Subsequent Events Details Narrative | ||
Dividend declared, per common share payable | $ 0.28 | |
Dividend payable date | May 26, 2017 |