Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 14, 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 | Sep. 30, 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 | 2,785,916 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 6,833 | $ 5,434 |
Interest bearing demand deposits with other banks | 42,570 | 30,051 |
Total cash and cash equivalents | 49,403 | 35,485 |
Securities | ||
Available-for-sale at fair value | 85,508 | 79,623 |
Federal Home Loan Bank of Boston stock at cost | 3,038 | 3,211 |
Loans held-for-sale | 561 | |
Loans receivable, net (allowance for loan losses: $6,494 and $6,127) | 784,136 | 763,184 |
Other real estate owned | 3,944 | 3,773 |
Bank premises and equipment, net | 16,329 | 14,398 |
Goodwill | 13,815 | 12,552 |
Intangible assets (net of accumulated amortization: $3,906 and $3,511) | 1,974 | 1,737 |
Accrued interest receivable | 2,520 | 2,424 |
Cash surrender value of life insurance policies | 14,297 | 14,038 |
Deferred taxes | 1,326 | 1,367 |
Other assets | 2,618 | 3,574 |
Total Assets | 979,469 | 935,366 |
Deposits | ||
Demand (non-interest bearing) | 225,496 | 218,420 |
Demand (interest bearing) | 139,521 | 127,854 |
Money market | 196,745 | 182,476 |
Savings and other | 152,570 | 135,435 |
Certificates of deposit | 117,657 | 117,585 |
Total deposits | 831,989 | 781,770 |
Repurchase agreements | 4,529 | 5,535 |
Federal Home Loan Bank of Boston advances | 27,364 | 37,188 |
Subordinated debt | 9,805 | 9,788 |
Note payable | 321 | 344 |
Capital lease liability | 1,859 | 418 |
Accrued interest and other liabilities | 6,076 | 6,316 |
Total Liabilities | 881,943 | 841,359 |
Shareholders' Equity | ||
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,785,916 and 2,758,086 | 279 | 276 |
Paid-in capital | 42,983 | 42,085 |
Retained earnings | 54,368 | 51,521 |
Unearned compensation - restricted stock awards | (660) | (352) |
Accumulated other comprehensive income, net | 556 | 477 |
Total Shareholders' Equity | 97,526 | 94,007 |
Total Liabilities and Shareholders' Equity | $ 979,469 | $ 935,366 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Allowance for loan losses, loans receivable | $ 6,494 | $ 6,127 |
Accumulated amortization, intangible assets | $ 3,906 | $ 3,511 |
Shareholders' Equity | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 5,000,000 | 5,000,000 |
Common stock, issued | 2,785,916 | 2,758,086 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 8,196 | $ 8,067 | $ 24,544 | $ 23,935 |
Interest on debt securities | ||||
Taxable | 443 | 310 | 1,115 | 889 |
Tax exempt | 68 | 202 | 345 | 725 |
Other interest and dividends | 175 | 91 | 351 | 226 |
Total interest and dividend income | 8,882 | 8,670 | 26,355 | 25,775 |
Interest expense | ||||
Deposits | 682 | 565 | 1,776 | 1,603 |
Repurchase agreements | 2 | 2 | 4 | 4 |
Capital lease | 29 | 17 | 66 | 53 |
Note payable | 6 | 6 | 13 | 15 |
Subordinated debt | 156 | 156 | 468 | 468 |
Federal Home Loan Bank of Boston advances | 241 | 237 | 769 | 714 |
Total interest expense | 1,116 | 983 | 3,096 | 2,857 |
Net interest and dividend income | 7,766 | 7,687 | 23,259 | 22,918 |
Provision for loan losses | 237 | 344 | 953 | 1,332 |
Net interest and dividend income after provision for loan losses | 7,529 | 7,343 | 22,306 | 21,586 |
Non-interest income | ||||
Trust and wealth advisory | 874 | 849 | 2,620 | 2,517 |
Service charges and fees | 935 | 822 | 2,799 | 2,277 |
Gains on sales of mortgage loans, net | 25 | 55 | 104 | 151 |
Mortgage servicing, net | 104 | 40 | 180 | 119 |
Gains (losses) on sales and calls of available-for-sale securities, net | 9 | (14) | 157 | |
Other | 142 | 113 | 365 | 343 |
Total non-interest income | 2,080 | 1,888 | 6,054 | 5,564 |
Non-interest expense | ||||
Salaries | 2,829 | 2,757 | 8,266 | 8,018 |
Employee benefits | 1,004 | 924 | 2,923 | 2,922 |
Premises and equipment | 995 | 809 | 2,797 | 2,546 |
Data processing | 545 | 473 | 1,521 | 1,369 |
Professional fees | 481 | 459 | 1,962 | 1,403 |
Collections, OREO and loan related | 419 | 109 | 875 | 420 |
FDIC insurance | 106 | 164 | 354 | 474 |
Marketing and community support | 220 | 144 | 623 | 524 |
Amortization of intangibles | 142 | 148 | 395 | 455 |
Other | 479 | 513 | 1,561 | 1,846 |
Total non-interest expense | 7,220 | 6,500 | 21,277 | 19,977 |
Income before income taxes | 2,389 | 2,731 | 7,083 | 7,173 |
Income tax provision | 695 | 812 | 1,903 | 2,008 |
Net income | 1,694 | 1,919 | 5,180 | 5,165 |
Net income available to common stock | $ 1,678 | $ 1,904 | $ 5,139 | $ 5,124 |
Basic earnings per common share | $ 0.61 | $ 0.70 | $ 1.87 | $ 1.88 |
Weighted average common shares outstanding, to calculate basic earnings per share | 2,759 | 2,737 | 2,755 | 2,732 |
Diluted earnings per common share | $ 0.60 | $ 0.69 | $ 1.85 | $ 1.87 |
Weighted average common shares outstanding, to calculate diluted earnings per share | 2,779 | 2,751 | 2,774 | 2,747 |
Common dividends per share | $ 0.28 | $ 0.28 | $ 0.84 | $ 0.84 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Income Statement [Abstract] | |||||
Net income | $ 1,694 | $ 1,919 | $ 5,180 | $ 5,165 | |
Other comprehensive (loss) income) | |||||
Net unrealized (losses) gains on securities available-for-sale | (16) | (332) | 106 | (211) | |
Reclassification of net realized (gains) losses and write-downs in net income | [1] | (10) | 14 | (157) | |
Unrealized (losses) gains on securities available-for-sale | (16) | (342) | 120 | (368) | |
Income tax benefit (expense) | 5 | 116 | (41) | 126 | |
Other comprehensive (loss) income | (11) | (226) | 79 | (242) | |
Comprehensive income | $ 1,683 | $ 1,693 | $ 5,259 | $ 4,923 | |
[1] | (1) Reclassification adjustments include realized security gains and losses. The gains and losses have been reclassified out of 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. The net tax effect for the three months ending September 30, 2017 and 2016 are $0 thousand and ($3) thousand, respectively. The net tax effect for the nine months ending September 30, 2017 and 2016 are $5 thousand and ($53) thousand, respectively. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Paid-in capital | Retained earnings | Unearned compensation restricted stock awards | Accumulated other comprehensive income | Total |
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 for the period | 5,165 | 5,165 | ||||
Other comprehensive loss, net of tax | (242) | (242) | ||||
Common stock dividends declared | (2,314) | (2,314) | ||||
Stock options exercised, amount | 87 | 87 | ||||
Stock options exercised, shares | 4,050 | |||||
Issuance of restricted stock, amount | $ 2 | 464 | (466) | |||
Issuance of restricted stock, shares | 15,800 | |||||
Forfeiture of restricted stock, amount | (3) | 3 | ||||
Forfeiture of restricted stock, shares | (100) | |||||
Issuance of vested common stock for directors, amount | $ 1 | 141 | 142 | |||
Issuance of vested common stock for directors, shares | 4,760 | |||||
Stock based compensation - restricted stock awards | 142 | 142 | ||||
Balance - Ending, amount at Sep. 30, 2016 | $ 276 | 42,053 | 50,773 | (431) | 883 | 93,554 |
Balance - Ending, shares at Sep. 30, 2016 | 2,758,086 | |||||
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 for the period | 5,180 | 5,180 | ||||
Other comprehensive loss, net of tax | 79 | |||||
Other comprehensive income, net of tax | 79 | 79 | ||||
Common stock dividends declared | (2,333) | (2,333) | ||||
Stock options exercised, amount | $ 1 | 311 | 312 | |||
Stock options exercised, shares | 12,150 | |||||
Issuance of restricted stock, amount | $ 2 | 426 | (428) | |||
Issuance of restricted stock, shares | 11,800 | |||||
Forfeiture of restricted stock, amount | (3) | 3 | ||||
Forfeiture of restricted stock, shares | (200) | |||||
Issuance of vested common stock for directors, amount | 81 | 81 | ||||
Issuance of vested common stock for directors, shares | 2,056 | |||||
Issuance of director's restricted stock awards, amount | 83 | (83) | ||||
Issuance of director's restricted stock awards, shares | 2,024 | |||||
Stock based compensation - restricted stock awards | 200 | 200 | ||||
Balance - Ending, amount at Sep. 30, 2017 | $ 279 | $ 42,983 | $ 54,368 | $ (660) | $ 556 | $ 97,526 |
Balance - Ending, shares at Sep. 30, 2017 | 2,785,916 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities | ||
Net income | $ 5,180 | $ 5,165 |
(Accretion), amortization and depreciation: | ||
Securities | 116 | 204 |
Bank premises and equipment | 979 | 889 |
Core deposit intangible | 395 | 455 |
Modification fees on Federal Home Loan Bank of Boston advances | 176 | 173 |
Subordinated debt issuance costs | 17 | 18 |
Mortgage servicing rights | 149 | 182 |
Fair value adjustment on loans | (969) | (1,429) |
Fair value adjustment on deposits | (64) | (97) |
(Gains) and losses, including write-downs | ||
Loss and (gain) and write-downs on sales and calls of securities, available-for-sale, net | (14) | 157 |
Gains on sales of loans, excluding capitalized servicing rights | (79) | (152) |
Write-downs of other real estate owned | 395 | |
Loss on sale/disposals of premises and equipment | 1 | 13 |
Provision for loan losses | 953 | 1,332 |
Proceeds from loans sold | 4,495 | 6,814 |
Loans originated for sale | (4,977) | (6,736) |
Increase in deferred loan origination fees and costs, net | (38) | (91) |
Mortgage servicing rights originated | (53) | (71) |
(Decrease) increase in mortgage servicing rights impairment reserve | (24) | 13 |
(Increase) decrease in interest receivable | (84) | 47 |
(Increase) decrease in prepaid expenses | (59) | 18 |
Increase in cash surrender value of life insurance policies | (259) | (267) |
Decrease in income tax receivable | 43 | 433 |
Decrease in other assets | 920 | 218 |
(Decrease) increase in accrued expenses | (384) | 1,079 |
Increase (decrease) in interest payable | 157 | (125) |
(Decrease) increase in other liabilities | (16) | 1,310 |
Stock based compensation - restricted stock awards | 200 | 142 |
Net cash provided by operating activities | 7,184 | 9,380 |
Investing Activities | ||
Redemption of Federal Home Loan Bank of Boston stock, net of purchases | 173 | 239 |
Purchases of securities available-for-sale | (36,654) | (45,317) |
Proceeds from sales of securities available for sale | 3,860 | |
Proceeds from calls of securities available-for-sale | 11,141 | 11,811 |
Proceeds from maturities of securities available-for-sale | 19,618 | 29,125 |
Loan originations and principle collections, net | (14,776) | (57,351) |
Recoveries of loans previously charged off | 232 | 111 |
Proceeds from sales of other real estate owned | 177 | |
Capital expenditures | (1,306) | (1,168) |
Cash and cash equivalents acquired from acquisition | 22,387 | |
Net cash provided (utilized) by investing activities | 992 | (58,690) |
Financing Activities | ||
Increase in deposit transaction accounts, net | 18,714 | 35,320 |
Increase (decrease) in time deposits, net | 136 | (3,026) |
Decrease in securities sold under agreements to repurchase, net | (1,006) | (333) |
Principal payments on Federal Home Loan Bank of Boston advances | (10,000) | (18) |
Principal payments on note payable | (23) | (25) |
Decrease in capital lease obligation | (139) | (3) |
Stock options exercised | 312 | 87 |
Issuance of shares for directors' fees | 81 | 142 |
Common stock dividends paid | (2,333) | (2,314) |
Net cash provided by financing activities | 5,742 | 29,830 |
Net increase (decrease) in cash and cash equivalents | 13,918 | (19,480) |
Cash and cash equivalents, beginning of period | 35,485 | 62,118 |
Cash and cash equivalents, end of period | 49,403 | 42,638 |
Cash paid during year | ||
Interest | 2,810 | 2,714 |
Income taxes | 1,958 | 842 |
Non-cash transfers | ||
From loans to other real estate owned | 743 | $ 2,823 |
Empire State Bank branch acquisition | ||
Cash and cash equivalents acquired | 22,387 | |
Net loans acquired | 7,097 | |
Fixed assets acquired (including capital lease) | 1,605 | |
Accrued interest receivable acquired | 12 | |
Other assets acquired | 20 | |
Core deposit intangible | 632 | |
Goodwill | 1,263 | |
Deposits assumed | 31,433 | |
Capital lease assumed | 1,580 | |
Other liabilities assumed | $ 3 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 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 consolidated financial position of Salisbury and the consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for the interim periods presented. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In preparing the financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, expected cash flows from loans acquired in a business combination, other-than-temporary impairment of securities and impairment of goodwill and intangibles. Certain financial information, which is normally included in financial statements prepared in accordance with generally accepted accounting principles, but which is not required for interim reporting purposes, has been condensed or omitted. Operating results for the interim period ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The accompanying 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. 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. Salisbury has opted to recognize forfeitures as they occur as the impact is not expected to be material. ASU 2016-09 was effective for interim and annual reporting periods beginning after December 15, 2016. Salisbury adopted ASU 2016-09 as of January 1, 2017. Adoption contributed a $105 thousand benefit to the tax provision in the second quarter 2017 and did not have a material effect on the financial results for the nine month period ended September 30, 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 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 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 and does not expect that the adoption of the new standard will have a material impact on Salisbury’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting.” This ASU will provide clarity in the accounting guidance regarding a change to the terms or conditions of a share-based payment award. ASU 2017-09 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, including adoption in an interim period. Entities should apply the guidance prospectively to an award modified on or after the adoption date. Salisbury is currently evaluating the provisions of ASU 2017-09 and does not expect that the adoption of the new standard will have a material impact on Salisbury’s Consolidated Financial Statements. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized Gross un- Gross un- Fair Value September 30, 2017 Available-for-sale Municipal bonds $ 4,611 $ 30 $ — $ 4,641 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises 49,655 274 172 49,757 Collateralized mortgage obligations: U.S. Government agencies 10,815 39 13 10,841 Non-agency 2,464 420 16 2,868 SBA bonds 12,767 59 10 12,816 CRA mutual funds 847 — 7 840 Corporate bonds 3,500 57 — 3,557 Preferred stock 7 181 — 188 Total securities available-for-sale $ 84,666 $ 1,060 $ 218 $ 85,508 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,038 $ — $ — $ 3,038 (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 nine month period ended September 30, 2017. Salisbury sold $3.9 million in securities available-for-sale during the nine month period ended September 30, 2016 realizing a pre-tax gain of $148 thousand and related tax expense of $50 thousand. 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 income (loss), the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the dates presented: September 30, 2017 (in thousands) Less than 12 Months 12 Months or Longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale Mortgage-backed securities $ 10,483 $ 56 $ 18,553 $ 116 $ 29,036 $ 172 Collateralized mortgage obligations: U.S. Government agencies 4,810 13 — — 4,810 13 Non-agency — — 118 3 118 3 SBA bonds 3,414 10 — — 3,414 10 Corporate bonds 500 — — — 500 — CRA mutual funds 840 7 — — 840 7 Total temporarily impaired securities 20,047 86 18,671 119 38,718 205 Other-than-temporarily impaired securities Collateralized mortgage obligations: Non-agency 107 13 — — 107 13 Total temporarily impaired and other-than-temporarily impaired securities $ 20,154 $ 99 $ 18,671 $ 119 $ 38,825 $ 218 December 31, 2016 (in thousands) Less than 12 Months 12 Months or Longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value 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: September 30, 2017 (in thousands) Maturity Amortized cost Fair value Yield(1) Municipal bonds Within 1 year $ 305 $ 306 6.26 % After 1 year but within 5 years 491 495 5.10 After 10 years but within 15 years 1,839 1,852 7.01 After 15 years 1,976 1,988 6.94 Total 4,611 4,641 6.73 Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 49,655 49,757 2.31 Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 10,815 10,841 2.73 Non-agency 2,464 2,868 3.99 SBA bonds 12,767 12,816 3.02 CRA mutual funds 847 840 2.30 Corporate bonds After 5 years but within 10 years 3,500 3,557 5.57 Preferred stock 7 188 5.49 Securities available-for-sale $ 84,666 $ 85,508 2.89 % (1) Yield is based on amortized cost. Salisbury evaluates securities for OTTI where the fair value of a security is less than its amortized cost basis at the balance sheet date. As part of this process, Salisbury considers whether it has the intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, Salisbury recognizes an OTTI charge to earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. For securities that meet neither of these conditions, an analysis is performed to determine if any of these securities are at risk for OTTI. The following summarizes, by security type, the basis for evaluating if the applicable securities were OTTI at September 30, 2017. U.S. Government agency mortgage-backed securities and collateralized mortgage obligations: 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-four securities with unrealized losses at September 30, 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 six positions were temporary in nature and does not consider these investments to be other-than temporarily impaired at September 30, 2017. Corporate bonds: Salisbury regularly monitors and analyzes its corporate bond portfolio for credit quality. Management believes the unrealized loss position is attributable to interest rate and spread 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 evaluated the impairment status of this debt security, and concluded that the gross unrealized loss was temporary in nature and does not consider this investment- to be other-than temporarily impaired at September 30, 2017. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at September 30, 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 September 30, 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 ($840 thousand in total fair value and $7 thousand in total unrealized losses as of September 30, 2017). The severity of the impairment (fair value is approximately 0.83% 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 September 30, 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: Nine months ended September 30 (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 September 30, 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 | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
LOANS | NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: September 30, 2017 December 31, 2016 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 304,711 $ 5,626 $ 310,337 $ 295,030 $ 6,098 $ 301,128 Residential 5+ multifamily 11,904 5,251 17,155 7,976 5,649 13,625 Construction of residential 1-4 family 11,582 — 11,582 10,951 — 10,951 Home equity lines of credit 35,529 — 35,529 35,487 — 35,487 Residential real estate 363,726 10,877 374,603 349,444 11,747 361,191 Commercial 180,055 67,306 247,361 155,628 79,854 235,482 Construction of commercial 8,444 809 9,253 3,481 1,917 5,398 Commercial real estate 188,499 68,115 256,614 159,109 81,771 240,880 Farm land 4,692 — 4,692 3,914 — 3,914 Vacant land 7,464 — 7,464 6,600 — 6,600 Real estate secured 564,381 78,992 643,373 519,067 93,518 612,585 Commercial and industrial 114,447 14,126 128,573 121,144 20,329 141,473 Municipal 12,499 — 12,499 8,626 — 8,626 Consumer 4,851 49 4,900 5,312 68 5,380 Loans receivable, gross 696,178 93,167 789,345 654,149 113,915 768,064 Deferred loan origination fees and costs, net 1,285 — 1,285 1,247 — 1,247 Allowance for loan losses (6,280 ) (214 ) (6,494 ) (5,816 ) (311 ) (6,127 ) Loans receivable, net $ 691,183 $ 92,953 $ 784,136 $ 649,580 $ 113,604 $ 763,184 Loans held-for-sale Residential 1-4 family $ 561 $ — $ 561 $ — $ — $ — Concentrations of Credit Risk Salisbury's loans consist primarily of residential and commercial real estate loans located principally in northwestern Connecticut, New York and Massachusetts towns, which constitute Salisbury's service area. Salisbury offers a broad range of loan and credit facilities to borrowers in its service area, including residential mortgage loans, commercial real estate loans, construction loans, working capital loans, equipment loans, and a variety of consumer loans, including home equity lines of credit, and installment and collateral loans. All residential and commercial mortgage loans are collateralized by first or second mortgages on real estate. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy as well as the health of the real estate economic sector in Salisbury’s market area. Loan Credit Quality The composition of loans receivable by risk rating grade is as follows: Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2017 Residential 1-4 family $ 294,812 $ 6,657 $ 3,242 $ — $ — $ 304,711 Residential 5+ multifamily 9,917 1,834 153 — — 11,904 Construction of residential 1-4 family 11,582 — — — — 11,582 Home equity lines of credit 34,463 738 328 — — 35,529 Residential real estate 350,774 9,229 3,723 — — 363,726 Commercial 170,227 3,611 6,217 — — 180,055 Construction of commercial 8,334 — 110 — — 8,444 Commercial real estate 178,561 3,611 6,327 — — 188,499 Farm land 3,712 — 980 — — 4,692 Vacant land 7,349 79 36 — — 7,464 Real estate secured 540,396 12,919 11,066 — — 564,381 Commercial and industrial 112,799 1,225 423 — — 114,447 Municipal 12,499 — — — — 12,499 Consumer 4,812 39 — — — 4,851 Loans receivable, gross $ 670,506 $ 14,183 $ 11,489 $ — $ — $ 696,178 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2017 Residential 1-4 family $ 5,475 $ 103 $ 48 $ — $ — $ 5,626 Residential 5+ multifamily 5,251 — — — — 5,251 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 10,726 103 48 — — 10,877 Commercial 59,511 2,118 5,677 — — 67,306 Construction of commercial 551 — 258 — — 809 Commercial real estate 60,062 2,118 5,935 — — 68,115 Farm land — — — — — — Vacant land — — — — — — Real estate secured 70,788 2,221 5,983 — — 78,992 Commercial and industrial 13,199 844 83 — — 14,126 Municipal — — — — — — Consumer 47 2 — — — 49 Loans receivable, gross $ 84,034 $ 3,067 $ 6,066 $ — $ — $ 93,167 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 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 September 30, 2017 Residential 1-4 family $ 301,613 $ 1,108 $ 228 $ 430 $ 1,332 $ 3,098 $ 102 $ 2,169 Residential 5+ multifamily 11,904 — — — — — — 153 Construction of residential 1-4 family 11,582 — — — — — — — Home equity lines of credit 34,753 293 394 89 — 776 — 209 Residential real estate 359,852 1,401 622 519 1,332 3,874 102 2,531 Commercial 177,985 276 — — 1,793 2,069 — 1,793 Construction of commercial 8,444 — — — — — — — Commercial real estate 186,429 276 — — 1,793 2,069 — 1,793 Farm land 3,711 258 — — 723 981 — 980 Vacant land 7,428 — — 36 — 36 36 — Real estate secured 557,420 1,935 622 555 3,848 6,960 138 5,304 Commercial and industrial 114,037 194 5 75 137 411 75 137 Municipal 12,499 — — — — — — — Consumer 4,774 75 2 — — 77 — — Loans receivable, gross $ 688,730 $ 2,204 $ 629 $ 630 $ 3,985 $ 7,448 $ 213 $ 5,441 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 September 30, 2017 Residential 1-4 family $ 5,626 $ — $ — $ — $ — $ — $ — $ — Residential 5+ multifamily 5,251 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 10,877 — — — — — — — Commercial 64,204 698 4 545 1,856 3,103 545 1,856 Construction of commercial 551 — — — 258 258 — 258 Commercial real estate 64,755 698 4 545 2,114 3,361 545 2,114 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 75,632 698 4 545 2,114 3,361 545 2,114 Commercial and industrial 13,754 61 310 — — 371 — — Municipal — — — — — — — — Consumer 49 — — — — — — — Loans receivable, gross $ 89,435 $ 759 $ 314 $ 545 $ 2,114 $ 3,732 $ 545 $ 2,114 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 nine months ended September 30, 2017 and 2016 had the loans been current in accordance with their original terms totaled $691 thousand and $666 thousand, respectively. Troubled Debt Restructurings Troubled debt restructurings occurring during the periods are as follows: Business Activities Loans Nine months ended September 30, 2017 September 30, 2016 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate — $ — $ — 4 $ 683 $ 683 Commercial real estate 1 600 600 2 2,123 2,123 Troubled debt restructurings 1 $ 600 $ 600 6 $ 2,806 $ 2,806 Rate reduction and term extension — $ — $ — 1 $ 174 $ 174 Debt consolidation — — — 2 2,123 2,123 Term extension 1 600 600 3 509 509 Troubled debt restructurings 1 $ 600 $ 600 6 $ 2,806 $ 2,806 Acquired Loans No acquired loans have been modified as a troubled debt restructure during the nine months ended September 30, 2017 and September 30, 2016. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2017 Three months ended September 30, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,353 $ 34 $ (93 ) $ 4 $ 2,298 $ — $ — $ — $ — $ — Commercial 2,099 50 — 69 2,218 285 53 (190 ) 48 196 Land 154 51 (27 ) — 178 — — — — — Real estate 4,606 135 (120 ) 73 4,694 285 53 (190 ) 48 196 Commercial and industrial 979 (59 ) — 1 921 22 31 (41 ) 6 18 Municipal 18 2 — — 20 — — — — — Consumer 69 12 (17 ) 4 68 — — — — — Unallocated 514 63 — — 577 — — — — — Totals $ 6,186 $ 153 $ (137 ) $ 78 $ 6,280 $ 307 $ 84 $ (231 ) $ 54 $ 214 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2017 Nine months ended September 30, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,427 $ 35 $ (172 ) $ 8 $ 2,298 $ — $ — $ — $ — $ — Commercial 1,683 504 (38 ) 69 2,218 275 184 (340 ) 77 196 Land 198 23 (43 ) — 178 — — — — — Real estate 4,308 562 (253 ) 77 4,694 275 184 (340 ) 77 196 Commercial and industrial 1,043 (115 ) (57 ) 50 921 36 72 (105 ) 15 18 Municipal 53 (33 ) — — 20 — — — — — Consumer 75 43 (63 ) 13 68 — — — — — Unallocated 337 240 — — 577 — — — — — Totals $ 5,816 $ 697 $ (373 ) $ 140 $ 6,280 $ 311 $ 256 $ (445 ) $ 92 $ 214 Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2016 Three months ended September 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,248 $ 224 $ (155 ) $ 8 $ 2,325 $ 69 $ 5 $ — $ — $ 74 Commercial 1,734 29 (1 ) — 1,762 134 37 — — 171 Land 166 82 (42 ) — 206 — — — — — Real estate 4,148 335 (198 ) 8 4,293 203 42 — — 245 Commercial and industrial 851 (16 ) (2 ) 25 858 37 (11 ) — 8 34 Municipal 56 (3 ) — — 53 — — — — — Consumer 89 17 (17 ) 5 94 — — — — — Unallocated 334 (19 ) — — 315 — — — — — Totals 5,478 $ 314 $ (217 ) $ 38 $ 5,613 $ 240 $ 31 $ — $ 8 $ 279 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2016 Nine months ended September 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 2,477 $ 370 $ (550 ) $ 28 $ 2,325 $ 79 $ (5 ) $ — $ — $ 74 Commercial 1,466 332 (37 ) 1 1,762 132 133 (98 ) 4 171 Land 188 106 (88 ) — 206 — — — — — Real estate 4,131 808 (675 ) 29 4,293 211 128 (98 ) 4 245 Commercial and industrial 683 (167 ) (32 ) 40 858 24 403 (416 ) 23 34 Municipal 61 (8 ) — — 53 — — — — — Consumer 124 1 (46 ) 15 94 — — — — — Unallocated 482 (167 ) — — 315 — — — — — Totals $ 5,481 $ 801 $ (753 ) $ 84 $ 5,613 $ 235 $ 531 $ (514 ) $ 27 $ 279 |
LOANS (Continued)
LOANS (Continued) | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
LOANS (Continued) | The composition of loans receivable and the allowance for loan losses is as follows: Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance September 30, 2017 Residential 1-4 family $ 299,406 $ 1,749 $ 5,305 $ 85 $ 304,711 $ 1,833 Residential 5+ multifamily 10,152 123 1,752 1 11,904 124 Construction of residential 1-4 family 11,582 76 — — 11,582 76 Home equity lines of credit 35,273 264 256 1 35,529 265 Residential real estate 356,413 2,211 7,313 87 363,726 2,298 Commercial 176,063 2,087 3,992 62 180,055 2,149 Construction of commercial 8,334 69 110 — 8,444 69 Commercial real estate 184,397 2,156 4,102 62 188,499 2,218 Farm land 3,712 28 980 — 4,692 28 Vacant land 7,263 147 201 3 7,464 150 Real estate secured 551,785 4,542 12,596 152 564,381 4,694 Commercial and industrial 114,260 889 187 32 114,447 921 Municipal 12,499 20 — — 12,499 20 Consumer 4,851 68 — — 4,851 68 Unallocated allowance — 577 — — — 577 Totals $ 683,395 $ 6,096 $ 12,783 $ 184 $ 696,178 $ 6,280 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance September 30, 2017 Residential 1-4 family $ 5,626 $ — $ — $ — $ — $ — $ 5,626 $ — Residential 5+ multifamily 5,251 — — — — — 5,251 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 10,877 — — — — — 10,877 — Commercial 60,904 27 2,645 87 3,757 81 67,306 195 Construction of commercial 551 1 258 — — — 809 1 Commercial real estate 61,455 28 2,903 87 3,757 81 68,115 196 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 72,332 28 2,903 87 3,757 81 78,992 196 Commercial and industrial 14,047 10 — — 79 8 14,126 18 Municipal — — — — — — — — Consumer 34 — — — 15 — 49 — Unallocated allowance — — — — — — — — Totals $ 86,413 $ 38 $ 2,903 $ 87 $ 3,851 $ 89 $ 93,167 $ 214 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 September 30, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 678,906 $ 5,313 $ — $ — $ 678,906 $ 5,313 Potential problem loans 4,489 206 — — 4,489 206 Impaired loans — — 12,783 184 12,783 184 Unallocated allowance — 577 — — — 577 Totals $ 683,395 $ 6,096 $ 12,783 $ 184 $ 696,178 $ 6,280 Acquired Loans September 30, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 87,102 $ 48 $ — $ — $ 87,102 $ 48 Potential problem loans 3,162 79 — — 3,162 79 Impaired loans — — 2,903 87 2,903 87 Unallocated allowance — — — — — — Totals $ 90,264 $ 127 $ 2,903 $ 87 $ 93,167 $ 214 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 present value of expected cash flows or fair value of collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment is as follows: Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2017 Residential $ 3,256 $ 3,367 $ 3,388 $ 86 $ 80 $ 3,803 $ 4,641 $ 3,605 $ 89 Home equity lines of credit 47 47 88 1 1 209 264 173 6 Residential real estate 3,303 3,414 3,476 87 81 4,012 4,905 3,778 95 Commercial 1,555 1,596 1,943 62 49 2,437 2,947 1,913 33 Construction of commercial 110 116 44 — 5 — — 68 — Farm land — — — — — 980 1,177 982 — Vacant land 44 44 45 3 2 157 181 161 8 Real estate secured 5,012 5,170 5,508 152 137 7,586 9,210 6,902 136 Commercial and industrial 110 110 44 32 2 76 171 110 2 Consumer — — — — — — 6 2 — Totals $ 5,122 $ 5,280 $ 5,552 $ 184 $ 139 $ 7,662 $ 9,387 $ 7,014 $ 138 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2017 Residential $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity lines of credit — — — — — — — — — Residential real estate — — — — — — — — — Commercial 339 437 973 87 10 2,306 3,248 1,525 60 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 339 437 973 87 10 2,564 3,520 1,783 60 Commercial and industrial — — — — — — — — — Consumer — — — — — — — — — Totals $ 339 $ 437 $ 973 $ 87 $ 10 $ 2,564 $ 3,520 $ 1,783 $ 60 Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2016 Residential $ 3,516 $ 3,684 $ 5,907 $ 135 $ 88 $ 3,437 $ 4,031 $ 2,822 $ 94 Home equity lines of credit 406 435 462 22 2 227 277 331 3 Residential real estate 3,922 4,119 6,369 157 90 3,664 4,308 3,153 97 Commercial 3,021 3,304 3,347 60 34 667 897 934 42 Construction of commercial — — 56 — — 115 121 63 8 Farm land — — 394 — — 1,002 1,140 622 — Vacant land 46 46 1,786 4 3 164 189 195 12 Real estate secured 6,989 7,469 11,952 221 127 5,612 6,655 4,967 159 Commercial and industrial — — 31 — — 84 130 201 3 Consumer — — — — — 3 16 7 — Totals $ 6,989 $ 7,469 $ 11,983 $ 221 $ 127 $ 5,699 $ 6,801 $ 5,175 $ 162 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2016 Residential $ — $ — $ 504 $ — $ — $ — $ — $ 238 $ — Home equity lines of credit — — — — — — — — — Residential real estate — — 504 — — — — 238 — Commercial 1,254 1,628 725 191 14 2,134 2,621 2,112 38 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,254 1,628 1,229 191 14 2,392 2,893 2,608 38 Commercial and industrial — 77 — — — — 19 — Consumer — — — — — — — — — Totals $ 1,254 $ 1,628 $ 1,306 $ 191 $ 14 $ 2,392 $ 2,893 $ 2,627 $ 38 As of September 30, 2017 and December 31, 2016 the recorded investment in residential mortgage loans collateralized by real estate that were in the process of foreclosure was $5.1 million and $2.1 million, respectively. At September 30, 2017 and December 31, 2016, the carrying amount of foreclosed residential real estate held as a result of obtaining physical possession amounted to $3.2 million and $3.6 million, respectively. |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE SERVICING RIGHTS | NOTE 4 - MORTGAGE SERVICING RIGHTS (in thousands) September 30, 2017 December 31, 2016 Residential mortgage loans serviced for others $ 120,429 $ 125,243 Fair value of mortgage servicing rights 1,004 902 Changes in mortgage servicing rights are as follows: Three months Nine months Periods ended September 30, (in thousands) 2017 2016 2017 2016 Mortgage Servicing Rights Balance, beginning of period $ 241 $ 416 $ 339 $ 487 Originated 15 28 53 71 Amortization (1) (13 ) (67 ) (149 ) (181 ) Balance, end of period $ 243 $ 377 $ 243 $ 377 Valuation Allowance Balance, beginning of period $ (25 ) $ (25 ) $ (23 ) $ (3 ) Decrease (increase) in impairment reserve (1) 26 7 24 (17 ) Balance, end of period 1 (18 ) 1 (20 ) Mortgage servicing rights, net $ 244 $ 359 $ 244 $ 357 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
PLEDGED ASSETS
PLEDGED ASSETS | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees [Abstract] | |
PLEDGED ASSETS | NOTE 5 - PLEDGED ASSETS (in thousands) September 30, 2017 December 31, 2016 Securities available-for-sale (at fair value) $ 69,795 $ 63,833 Loans receivable (at book value) 190,868 203,145 Total pledged assets $ 260,663 $ 266,978 At September 30, 2017, securities were pledged as follows: $64.6 million to secure public deposits, $5.1 million to secure repurchase agreements and $0.1 million to secure FHLBB advances. In addition to securities, loans receivable were pledged to secure FHLBB advances and credit facilities. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 6 – EARNINGS PER SHARE Salisbury defines unvested share-based payment awards that contain non-forfeitable rights to dividends as participating securities that are included in computing earnings per share (EPS) using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic EPS excludes dilution and is computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The following table sets forth the computation of earnings per share (basic and diluted) for the periods indicated: Three months Nine months Periods ended September 30, (in thousands, except per share data) 2017 2016 2017 2016 Net income $ 1,694 $ 1,919 $ 5,180 $ 5,165 Less: Undistributed earnings allocated to participating securities (16 ) (15 ) (41 ) (41 ) Net income allocated to common stock $ 1,678 $ 1,904 $ 5,139 $ 5,124 Weighted average common shares issued 2,785 2,758 2,777 2,754 Less: Unvested restricted stock awards (26 ) (21 ) (22 ) (22 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,759 2,737 2,755 2,732 Add: Dilutive effect of stock options 20 14 19 15 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,779 2,751 2,774 2,747 Earnings per common share (basic) $ 0.61 $ 0.70 $ 1.87 $ 1.88 Earnings per common share (diluted) $ 0.60 $ 0.69 $ 1.85 $ 1.87 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2017 Total Capital (to risk-weighted assets) Salisbury $ 98,246 13.20 % $ 59,563 8.0 % n/a — Bank 95,078 12.77 59,578 8.0 $ 74,473 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 81,576 10.96 44,672 6.0 n/a — Bank 88,408 11.87 44,684 6.0 59,578 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 81,576 10.96 33,504 4.5 n/a — Bank 88,408 11.87 33,513 4.5 48,407 6.5 Tier 1 Capital (to average assets) Salisbury 81,576 8.49 38,442 4.0 n/a — Bank 88,408 9.20 38,442 4.0 48,052 5.0 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 9.51 36,762 4.0 45,953 5.0 DIVIDENDS Cash Dividends to Common Shareholders Salisbury's ability to pay cash dividends is substantially dependent on the Bank's ability to pay cash dividends to Salisbury. There are certain restrictions on the payment of cash dividends and other payments by the Bank to Salisbury. Under Connecticut law, the Bank cannot declare a cash dividend except from net profits, defined as the remainder of all earnings from current operations. The total of all cash dividends declared by the Bank in any calendar year shall not, unless specifically approved by the Banking Commissioner, exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. FRB Supervisory Letter SR 09-4, February 24, 2009, revised March 30, 2009, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the Federal Reserve and should eliminate, defer, or significantly reduce dividends if (1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (2) the prospective rate of earnings retention is not consistent with capital needs and overall current and prospective financial condition; or (3) the BHC will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. Moreover, a BHC should inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the BHC capital structure. |
BENEFITS
BENEFITS | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
BENEFITS | NOTE 8 – BENEFITS Salisbury’s 401(k) Plan expense was $210,000 and $179,000, respectively, for the three month periods ended September 30, 2017 and 2016, and $681,000 and $568,000, respectively, for the nine month periods ended September 30, 2017 and 2016. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $53,000 and $19,000, respectively, for the three month periods ended September 30, 2017 and 2016, and $88,000 and $56,000, respectively, for the nine month periods ended September 30, 2017 and 2016. ESOP Salisbury offers an ESOP to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan, which generally vest in full upon six years of qualified service. Salisbury’s ESOP expense was $34,000 and $51,000, respectively, for the three month periods ended September 30, 2017 and 2016, and $83,000 and $132,000, respectively, for the nine month periods ended September 30, 2017 and 2016. Other Retirement Plans A Non-Qualified Deferred Compensation Plan (the "NQDC Plan") was adopted effective January 1, 2013. The NQDC 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 the NQDC 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. The NQDC Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. 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 10 year and 15 year cliff vesting schedules from the date of initial award. Additionally, pursuant to the 2013 Phantom Stock Appreciation Unit and Long-Term Incentive Plan (the “Phantom Stock Plan”), the Compensation Committee granted a total of 56,600 and 47,470 Phantom Stock Appreciation Units for the nine months ended September 30,2017 and 2016, respectively to certain employees, including the three Named Executive Officers. The units will vest on the third anniversary of the grant date. Expenses related to the NQDC Plan and the Phantom Stock Plan amounted to $89,000 for the third quarter of 2017 and $56,000 for the third quarter of 2016. Additionally, expenses related to these plans amounted to $165,000 and $168,000 for the nine months ended September 30, 2017 and 2016, respectively. 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 (“2011 LTIP”), 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 shares and John Davies, President New York Region and Chief Lending Officer and Donald E. White, who served as Chief Financial Officer until October 20, 2017, each received 500 shares. The fair value of the stock as of the grant date was determined to be $466 thousand and the stock will be vested three years from the grant date. Expense related to such grants in the three months ended September 30, 2017 and 2016 totaled $74,000 and $57,000, respectively, and for the nine months ended September 30, 2017 and 2016 totaled $194,000 and $164,000, respectively. Unrecognized compensation cost relating to the awards as of September 30, 2017 and 2016 totaled $660,000 and $431,000, respectively. There were no forfeitures in the three months ended September 30, 2017 and 2016, respectively. Forfeitures in the nine months ended September 30, 2017 and 2016 totaled 200 and 100 shares, respectively. The Board of Directors adopted the 2017 Long Term Incentive Plan (the “2017 LTIP”) on February 24, 2017, which was approved by shareholders at the 2017 Annual Meeting on May 17, 2017. Pursuant to the 2017 LTIP, as of May 2017, following 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 LTIP, 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 pursuant to its 2011 LTIP 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 $80,000. On May 26, 2017, Salisbury granted a total of 200 shares of restricted stock pursuant to its 2017 LTIP, which was approved by shareholders at the 2017 Annual Meeting, to one employee. The fair value of the stock as of the grant date was determined to be $8,000 and the stock will be vested three years from the grant date. On May 26, 2017, Salisbury granted a total of 2,024 shares of stock pursuant to the 2011 LTIP to directors as a component of their annual compensation. The fair value of the stock as of the grant date was determined to be $83,000. On August 23, 2017, Salisbury granted a total of 850 shares of restricted stock pursuant to its 2011 LTIP, to 2 employees, including 500 shares to a Named Executive Officer. Peter Albero, Executive Vice President and Chief Financial Officer received 500 shares. The fair value of the stock as of the grant date was determined to be $36,000 and the stock will be vested three years from the grant date. 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. The following table presents the pre-tax expense associated with stock options and restricted stock awards as well as the related recognized tax benefits: Three months ended Nine months ended Periods ended September 30, (in thousands) 2017 2016 2017 2016 Stock Options $ — $ — $ — $ — Restricted stock awards 74 57 200 142 Total stock based compensation expense $ 74 $ 57 $ 196 $ 142 Related tax benefits recognized in earnings $ 25 $ 19 $ 68 $ 48 Not included in the above is the excess tax benefit related to the adoption of ASU 2016-09 in the amount of $105,000 for both the three and nine month periods ending September 30, 2017, respectively. |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE ASSETS AND LIABILITIES | NOTE 9 – 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 nine months ended September 30, 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 September 30, 2017 Assets at fair value on a recurring basis Municipal bonds $ — $ 4,641 $ — $ 4,641 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 49,757 — 49,757 Collateralized mortgage obligations: U.S. Government agencies — 10,841 — 10,841 Non-agency — 2,868 — 2,868 SBA bonds — 12,816 — 12,816 CRA mutual funds 840 — — 840 Corporate bonds — 3,557 — 3,557 Preferred stock 188 — — 188 Securities available-for-sale $ 1,028 $ 84,480 $ — $ 85,508 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,064 $ 5,064 Other real estate owned $ — $ — $ 3,944 $ 3,944 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 September 30, 2017 Financial Assets Cash and cash equivalents $ 49,403 $ 49,403 $ 49,403 $ — $ — Securities available-for-sale 85,508 85,508 1,028 84,480 — Federal Home Loan Bank stock 3,038 3,038 — 3,038 — Loans held-for-sale 561 561 — — 561 Loans receivable, net 784,136 798,367 — — 798,367 Accrued interest receivable 2,520 2,520 — — 2,520 Cash surrender value of life insurance 14,297 14,297 14,297 — — Financial Liabilities Demand (non-interest bearing) $ 225,496 $ 225,496 $ — $ — $ 225,496 Demand (interest-bearing) 139,521 139,521 — — 139,521 Money market 196,745 196,745 — — 196,745 Savings and other 152,570 152,570 — — 152,570 Certificates of deposit 117,657 118,642 — — 118,642 Deposits 831,989 833,439 — — 833,439 Repurchase agreements 4,529 4,529 — — 4,529 FHLBB advances 27,364 28,212 — — 28,212 Subordinated debt 9,805 10,394 — — 10,394 Note payable 321 351 — — 351 Capital lease liability 1,859 2,249 — — 2,249 Accrued interest payable 246 246 — — 246 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 763,184 774,442 — — 774,442 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. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 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. 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. Salisbury has opted to recognize forfeitures as they occur as the impact is not expected to be material. ASU 2016-09 was effective for interim and annual reporting periods beginning after December 15, 2016. Salisbury adopted ASU 2016-09 as of January 1, 2017. Adoption contributed a $105 thousand benefit to the tax provision in the second quarter 2017 and did not have a material effect on the financial results for the nine month period ended September 30, 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 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 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 and does not expect that the adoption of the new standard will have a material impact on Salisbury’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting.” This ASU will provide clarity in the accounting guidance regarding a change to the terms or conditions of a share-based payment award. ASU 2017-09 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, including adoption in an interim period. Entities should apply the guidance prospectively to an award modified on or after the adoption date. Salisbury is currently evaluating the provisions of ASU 2017-09 and does not expect that the adoption of the new standard will have a material impact on Salisbury’s Consolidated Financial Statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Composition of Securities | (in thousands) Amortized Gross un- Gross un- Fair Value September 30, 2017 Available-for-sale Municipal bonds $ 4,611 $ 30 $ — $ 4,641 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises 49,655 274 172 49,757 Collateralized mortgage obligations: U.S. Government agencies 10,815 39 13 10,841 Non-agency 2,464 420 16 2,868 SBA bonds 12,767 59 10 12,816 CRA mutual funds 847 — 7 840 Corporate bonds 3,500 57 — 3,557 Preferred stock 7 181 — 188 Total securities available-for-sale $ 84,666 $ 1,060 $ 218 $ 85,508 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,038 $ — $ — $ 3,038 (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 | September 30, 2017 (in thousands) Less than 12 Months 12 Months or Longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale Mortgage-backed securities $ 10,483 $ 56 $ 18,553 $ 116 $ 29,036 $ 172 Collateralized mortgage obligations: U.S. Government agencies 4,810 13 — — 4,810 13 Non-agency — — 118 3 118 3 SBA bonds 3,414 10 — — 3,414 10 Corporate bonds 500 — — — 500 — CRA mutual funds 840 7 — — 840 7 Total temporarily impaired securities 20,047 86 18,671 119 38,718 205 Other-than-temporarily impaired securities Collateralized mortgage obligations: Non-agency 107 13 — — 107 13 Total temporarily impaired and other-than-temporarily impaired securities $ 20,154 $ 99 $ 18,671 $ 119 $ 38,825 $ 218 December 31, 2016 (in thousands) Less than 12 Months 12 Months or Longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value 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 | September 30, 2017 (in thousands) Maturity Amortized cost Fair value Yield(1) Municipal bonds Within 1 year $ 305 $ 306 6.26 % After 1 year but within 5 years 491 495 5.10 After 10 years but within 15 years 1,839 1,852 7.01 After 15 years 1,976 1,988 6.94 Total 4,611 4,641 6.73 Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 49,655 49,757 2.31 Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 10,815 10,841 2.73 Non-agency 2,464 2,868 3.99 SBA bonds 12,767 12,816 3.02 CRA mutual funds 847 840 2.30 Corporate bonds After 5 years but within 10 years 3,500 3,557 5.57 Preferred stock 7 188 5.49 Securities available-for-sale $ 84,666 $ 85,508 2.89 % (1) Yield is based on amortized cost. |
Activity related to credit losses recognized into earnings | Nine months ended September 30 (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) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Composition of loans receivable and loans held-for-sale | September 30, 2017 December 31, 2016 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 304,711 $ 5,626 $ 310,337 $ 295,030 $ 6,098 $ 301,128 Residential 5+ multifamily 11,904 5,251 17,155 7,976 5,649 13,625 Construction of residential 1-4 family 11,582 — 11,582 10,951 — 10,951 Home equity lines of credit 35,529 — 35,529 35,487 — 35,487 Residential real estate 363,726 10,877 374,603 349,444 11,747 361,191 Commercial 180,055 67,306 247,361 155,628 79,854 235,482 Construction of commercial 8,444 809 9,253 3,481 1,917 5,398 Commercial real estate 188,499 68,115 256,614 159,109 81,771 240,880 Farm land 4,692 — 4,692 3,914 — 3,914 Vacant land 7,464 — 7,464 6,600 — 6,600 Real estate secured 564,381 78,992 643,373 519,067 93,518 612,585 Commercial and industrial 114,447 14,126 128,573 121,144 20,329 141,473 Municipal 12,499 — 12,499 8,626 — 8,626 Consumer 4,851 49 4,900 5,312 68 5,380 Loans receivable, gross 696,178 93,167 789,345 654,149 113,915 768,064 Deferred loan origination fees and costs, net 1,285 — 1,285 1,247 — 1,247 Allowance for loan losses (6,280 ) (214 ) (6,494 ) (5,816 ) (311 ) (6,127 ) Loans receivable, net $ 691,183 $ 92,953 $ 784,136 $ 649,580 $ 113,604 $ 763,184 Loans held-for-sale Residential 1-4 family $ 561 $ — $ 561 $ — $ — $ — |
Composition of loans receivable by risk rating grade | Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2017 Residential 1-4 family $ 294,812 $ 6,657 $ 3,242 $ — $ — $ 304,711 Residential 5+ multifamily 9,917 1,834 153 — — 11,904 Construction of residential 1-4 family 11,582 — — — — 11,582 Home equity lines of credit 34,463 738 328 — — 35,529 Residential real estate 350,774 9,229 3,723 — — 363,726 Commercial 170,227 3,611 6,217 — — 180,055 Construction of commercial 8,334 — 110 — — 8,444 Commercial real estate 178,561 3,611 6,327 — — 188,499 Farm land 3,712 — 980 — — 4,692 Vacant land 7,349 79 36 — — 7,464 Real estate secured 540,396 12,919 11,066 — — 564,381 Commercial and industrial 112,799 1,225 423 — — 114,447 Municipal 12,499 — — — — 12,499 Consumer 4,812 39 — — — 4,851 Loans receivable, gross $ 670,506 $ 14,183 $ 11,489 $ — $ — $ 696,178 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2017 Residential 1-4 family $ 5,475 $ 103 $ 48 $ — $ — $ 5,626 Residential 5+ multifamily 5,251 — — — — 5,251 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 10,726 103 48 — — 10,877 Commercial 59,511 2,118 5,677 — — 67,306 Construction of commercial 551 — 258 — — 809 Commercial real estate 60,062 2,118 5,935 — — 68,115 Farm land — — — — — — Vacant land — — — — — — Real estate secured 70,788 2,221 5,983 — — 78,992 Commercial and industrial 13,199 844 83 — — 14,126 Municipal — — — — — — Consumer 47 2 — — — 49 Loans receivable, gross $ 84,034 $ 3,067 $ 6,066 $ — $ — $ 93,167 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 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 September 30, 2017 Residential 1-4 family $ 301,613 $ 1,108 $ 228 $ 430 $ 1,332 $ 3,098 $ 102 $ 2,169 Residential 5+ multifamily 11,904 — — — — — — 153 Construction of residential 1-4 family 11,582 — — — — — — — Home equity lines of credit 34,753 293 394 89 — 776 — 209 Residential real estate 359,852 1,401 622 519 1,332 3,874 102 2,531 Commercial 177,985 276 — — 1,793 2,069 — 1,793 Construction of commercial 8,444 — — — — — — — Commercial real estate 186,429 276 — — 1,793 2,069 — 1,793 Farm land 3,711 258 — — 723 981 — 980 Vacant land 7,428 — — 36 — 36 36 — Real estate secured 557,420 1,935 622 555 3,848 6,960 138 5,304 Commercial and industrial 114,037 194 5 75 137 411 75 137 Municipal 12,499 — — — — — — — Consumer 4,774 75 2 — — 77 — — Loans receivable, gross $ 688,730 $ 2,204 $ 629 $ 630 $ 3,985 $ 7,448 $ 213 $ 5,441 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 September 30, 2017 Residential 1-4 family $ 5,626 $ — $ — $ — $ — $ — $ — $ — Residential 5+ multifamily 5,251 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 10,877 — — — — — — — Commercial 64,204 698 4 545 1,856 3,103 545 1,856 Construction of commercial 551 — — — 258 258 — 258 Commercial real estate 64,755 698 4 545 2,114 3,361 545 2,114 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 75,632 698 4 545 2,114 3,361 545 2,114 Commercial and industrial 13,754 61 310 — — 371 — — Municipal — — — — — — — — Consumer 49 — — — — — — — Loans receivable, gross $ 89,435 $ 759 $ 314 $ 545 $ 2,114 $ 3,732 $ 545 $ 2,114 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 | Business Activities Loans Nine months ended September 30, 2017 September 30, 2016 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate — $ — $ — 4 $ 683 $ 683 Commercial real estate 1 600 600 2 2,123 2,123 Troubled debt restructurings 1 $ 600 $ 600 6 $ 2,806 $ 2,806 Rate reduction and term extension — $ — $ — 1 $ 174 $ 174 Debt consolidation — — — 2 2,123 2,123 Term extension 1 600 600 3 509 509 Troubled debt restructurings 1 $ 600 $ 600 6 $ 2,806 $ 2,806 Acquired Loans No acquired loans have been modified as a troubled debt restructure during the nine months ended September 30, 2017 and September 30, 2016. |
Changes in allowance for loan losses | Changes in the allowance for loan losses are as follows: Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2017 Three months ended September 30, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,353 $ 34 $ (93 ) $ 4 $ 2,298 $ — $ — $ — $ — $ — Commercial 2,099 50 — 69 2,218 285 53 (190 ) 48 196 Land 154 51 (27 ) — 178 — — — — — Real estate 4,606 135 (120 ) 73 4,694 285 53 (190 ) 48 196 Commercial and industrial 979 (59 ) — 1 921 22 31 (41 ) 6 18 Municipal 18 2 — — 20 — — — — — Consumer 69 12 (17 ) 4 68 — — — — — Unallocated 514 63 — — 577 — — — — — Totals $ 6,186 $ 153 $ (137 ) $ 78 $ 6,280 $ 307 $ 84 $ (231 ) $ 54 $ 214 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2017 Nine months ended September 30, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,427 $ 35 $ (172 ) $ 8 $ 2,298 $ — $ — $ — $ — $ — Commercial 1,683 504 (38 ) 69 2,218 275 184 (340 ) 77 196 Land 198 23 (43 ) — 178 — — — — — Real estate 4,308 562 (253 ) 77 4,694 275 184 (340 ) 77 196 Commercial and industrial 1,043 (115 ) (57 ) 50 921 36 72 (105 ) 15 18 Municipal 53 (33 ) — — 20 — — — — — Consumer 75 43 (63 ) 13 68 — — — — — Unallocated 337 240 — — 577 — — — — — Totals $ 5,816 $ 697 $ (373 ) $ 140 $ 6,280 $ 311 $ 256 $ (445 ) $ 92 $ 214 Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2016 Three months ended September 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,248 $ 224 $ (155 ) $ 8 $ 2,325 $ 69 $ 5 $ — $ — $ 74 Commercial 1,734 29 (1 ) — 1,762 134 37 — — 171 Land 166 82 (42 ) — 206 — — — — — Real estate 4,148 335 (198 ) 8 4,293 203 42 — — 245 Commercial and industrial 851 (16 ) (2 ) 25 858 37 (11 ) — 8 34 Municipal 56 (3 ) — — 53 — — — — — Consumer 89 17 (17 ) 5 94 — — — — — Unallocated 334 (19 ) — — 315 — — — — — Totals 5,478 $ 314 $ (217 ) $ 38 $ 5,613 $ 240 $ 31 $ — $ 8 $ 279 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2016 Nine months ended September 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 2,477 $ 370 $ (550 ) $ 28 $ 2,325 $ 79 $ (5 ) $ — $ — $ 74 Commercial 1,466 332 (37 ) 1 1,762 132 133 (98 ) 4 171 Land 188 106 (88 ) — 206 — — — — — Real estate 4,131 808 (675 ) 29 4,293 211 128 (98 ) 4 245 Commercial and industrial 683 (167 ) (32 ) 40 858 24 403 (416 ) 23 34 Municipal 61 (8 ) — — 53 — — — — — Consumer 124 1 (46 ) 15 94 — — — — — Unallocated 482 (167 ) — — 315 — — — — — Totals $ 5,481 $ 801 $ (753 ) $ 84 $ 5,613 $ 235 $ 531 $ (514 ) $ 27 $ 279 |
LOANS - Continued (Tables)
LOANS - Continued (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans - Continued Tables | |
Composition of loans receivable and allowance for loan losses | Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance September 30, 2017 Residential 1-4 family $ 299,406 $ 1,749 $ 5,305 $ 85 $ 304,711 $ 1,833 Residential 5+ multifamily 10,152 123 1,752 1 11,904 124 Construction of residential 1-4 family 11,582 76 — — 11,582 76 Home equity lines of credit 35,273 264 256 1 35,529 265 Residential real estate 356,413 2,211 7,313 87 363,726 2,298 Commercial 176,063 2,087 3,992 62 180,055 2,149 Construction of commercial 8,334 69 110 — 8,444 69 Commercial real estate 184,397 2,156 4,102 62 188,499 2,218 Farm land 3,712 28 980 — 4,692 28 Vacant land 7,263 147 201 3 7,464 150 Real estate secured 551,785 4,542 12,596 152 564,381 4,694 Commercial and industrial 114,260 889 187 32 114,447 921 Municipal 12,499 20 — — 12,499 20 Consumer 4,851 68 — — 4,851 68 Unallocated allowance — 577 — — — 577 Totals $ 683,395 $ 6,096 $ 12,783 $ 184 $ 696,178 $ 6,280 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance September 30, 2017 Residential 1-4 family $ 5,626 $ — $ — $ — $ — $ — $ 5,626 $ — Residential 5+ multifamily 5,251 — — — — — 5,251 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 10,877 — — — — — 10,877 — Commercial 60,904 27 2,645 87 3,757 81 67,306 195 Construction of commercial 551 1 258 — — — 809 1 Commercial real estate 61,455 28 2,903 87 3,757 81 68,115 196 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 72,332 28 2,903 87 3,757 81 78,992 196 Commercial and industrial 14,047 10 — — 79 8 14,126 18 Municipal — — — — — — — — Consumer 34 — — — 15 — 49 — Unallocated allowance — — — — — — — — Totals $ 86,413 $ 38 $ 2,903 $ 87 $ 3,851 $ 89 $ 93,167 $ 214 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 September 30, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 678,906 $ 5,313 $ — $ — $ 678,906 $ 5,313 Potential problem loans 4,489 206 — — 4,489 206 Impaired loans — — 12,783 184 12,783 184 Unallocated allowance — 577 — — — 577 Totals $ 683,395 $ 6,096 $ 12,783 $ 184 $ 696,178 $ 6,280 Acquired Loans September 30, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 87,102 $ 48 $ — $ — $ 87,102 $ 48 Potential problem loans 3,162 79 — — 3,162 79 Impaired loans — — 2,903 87 2,903 87 Unallocated allowance — — — — — — Totals $ 90,264 $ 127 $ 2,903 $ 87 $ 93,167 $ 214 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 September 30, 2017 Residential $ 3,256 $ 3,367 $ 3,388 $ 86 $ 80 $ 3,803 $ 4,641 $ 3,605 $ 89 Home equity lines of credit 47 47 88 1 1 209 264 173 6 Residential real estate 3,303 3,414 3,476 87 81 4,012 4,905 3,778 95 Commercial 1,555 1,596 1,943 62 49 2,437 2,947 1,913 33 Construction of commercial 110 116 44 — 5 — — 68 — Farm land — — — — — 980 1,177 982 — Vacant land 44 44 45 3 2 157 181 161 8 Real estate secured 5,012 5,170 5,508 152 137 7,586 9,210 6,902 136 Commercial and industrial 110 110 44 32 2 76 171 110 2 Consumer — — — — — — 6 2 — Totals $ 5,122 $ 5,280 $ 5,552 $ 184 $ 139 $ 7,662 $ 9,387 $ 7,014 $ 138 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2017 Residential $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity lines of credit — — — — — — — — — Residential real estate — — — — — — — — — Commercial 339 437 973 87 10 2,306 3,248 1,525 60 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 339 437 973 87 10 2,564 3,520 1,783 60 Commercial and industrial — — — — — — — — — Consumer — — — — — — — — — Totals $ 339 $ 437 $ 973 $ 87 $ 10 $ 2,564 $ 3,520 $ 1,783 $ 60 Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2016 Residential $ 3,516 $ 3,684 $ 5,907 $ 135 $ 88 $ 3,437 $ 4,031 $ 2,822 $ 94 Home equity lines of credit 406 435 462 22 2 227 277 331 3 Residential real estate 3,922 4,119 6,369 157 90 3,664 4,308 3,153 97 Commercial 3,021 3,304 3,347 60 34 667 897 934 42 Construction of commercial — — 56 — — 115 121 63 8 Farm land — — 394 — — 1,002 1,140 622 — Vacant land 46 46 1,786 4 3 164 189 195 12 Real estate secured 6,989 7,469 11,952 221 127 5,612 6,655 4,967 159 Commercial and industrial — — 31 — — 84 130 201 3 Consumer — — — — — 3 16 7 — Totals $ 6,989 $ 7,469 $ 11,983 $ 221 $ 127 $ 5,699 $ 6,801 $ 5,175 $ 162 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2016 Residential $ — $ — $ 504 $ — $ — $ — $ — $ 238 $ — Home equity lines of credit — — — — — — — — — Residential real estate — — 504 — — — — 238 — Commercial 1,254 1,628 725 191 14 2,134 2,621 2,112 38 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,254 1,628 1,229 191 14 2,392 2,893 2,608 38 Commercial and industrial — 77 — — — — 19 — Consumer — — — — — — — — — Totals $ 1,254 $ 1,628 $ 1,306 $ 191 $ 14 $ 2,392 $ 2,893 $ 2,627 $ 38 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
Balance of loans serviced for others and fair value of mortgage servicing rights | (in thousands) September 30, 2017 December 31, 2016 Residential mortgage loans serviced for others $ 120,429 $ 125,243 Fair value of mortgage servicing rights 1,004 902 |
Changes in mortgage servicing rights | Three months Nine months Periods ended September 30, (in thousands) 2017 2016 2017 2016 Mortgage Servicing Rights Balance, beginning of period $ 241 $ 416 $ 339 $ 487 Originated 15 28 53 71 Amortization (1) (13 ) (67 ) (149 ) (181 ) Balance, end of period $ 243 $ 377 $ 243 $ 377 Valuation Allowance Balance, beginning of period $ (25 ) $ (25 ) $ (23 ) $ (3 ) Decrease (increase) in impairment reserve (1) 26 7 24 (17 ) Balance, end of period 1 (18 ) 1 (20 ) Mortgage servicing rights, net $ 244 $ 359 $ 244 $ 357 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
PLEDGED ASSETS (Tables)
PLEDGED ASSETS (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, 2017 December 31, 2016 Securities available-for-sale (at fair value) $ 69,795 $ 63,833 Loans receivable (at book value) 190,868 203,145 Total pledged assets $ 260,663 $ 266,978 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | Three months Nine months Periods ended September 30, (in thousands, except per share data) 2017 2016 2017 2016 Net income $ 1,694 $ 1,919 $ 5,180 $ 5,165 Less: Undistributed earnings allocated to participating securities (16 ) (15 ) (41 ) (41 ) Net income allocated to common stock $ 1,678 $ 1,904 $ 5,139 $ 5,124 Weighted average common shares issued 2,785 2,758 2,777 2,754 Less: Unvested restricted stock awards (26 ) (21 ) (22 ) (22 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,759 2,737 2,755 2,732 Add: Dilutive effect of stock options 20 14 19 15 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,779 2,751 2,774 2,747 Earnings per common share (basic) $ 0.61 $ 0.70 $ 1.87 $ 1.88 Earnings per common share (diluted) $ 0.60 $ 0.69 $ 1.85 $ 1.87 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2017 Total Capital (to risk-weighted assets) Salisbury $ 98,246 13.20 % $ 59,563 8.0 % n/a — Bank 95,078 12.77 59,578 8.0 $ 74,473 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 81,576 10.96 44,672 6.0 n/a — Bank 88,408 11.87 44,684 6.0 59,578 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 81,576 10.96 33,504 4.5 n/a — Bank 88,408 11.87 33,513 4.5 48,407 6.5 Tier 1 Capital (to average assets) Salisbury 81,576 8.49 38,442 4.0 n/a — Bank 88,408 9.20 38,442 4.0 48,052 5.0 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 9.51 36,762 4.0 45,953 5.0 |
BENEFITS (Tables)
BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Benefits Tables | |
Pre-tax expense associated with stock options and restricted stock | Three months ended Nine months ended Periods ended September 30, (in thousands) 2017 2016 2017 2016 Stock Options $ — $ — $ — $ — Restricted stock awards 74 57 200 142 Total stock based compensation expense $ 74 $ 57 $ 196 $ 142 Related tax benefits recognized in earnings $ 25 $ 19 $ 68 $ 48 |
FAIR VALUE OF ASSETS AND LIAB27
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2017 Assets at fair value on a recurring basis Municipal bonds $ — $ 4,641 $ — $ 4,641 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 49,757 — 49,757 Collateralized mortgage obligations: U.S. Government agencies — 10,841 — 10,841 Non-agency — 2,868 — 2,868 SBA bonds — 12,816 — 12,816 CRA mutual funds 840 — — 840 Corporate bonds — 3,557 — 3,557 Preferred stock 188 — — 188 Securities available-for-sale $ 1,028 $ 84,480 $ — $ 85,508 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,064 $ 5,064 Other real estate owned $ — $ — $ 3,944 $ 3,944 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 September 30, 2017 Financial Assets Cash and cash equivalents $ 49,403 $ 49,403 $ 49,403 $ — $ — Securities available-for-sale 85,508 85,508 1,028 84,480 — Federal Home Loan Bank stock 3,038 3,038 — 3,038 — Loans held-for-sale 561 561 — — 561 Loans receivable, net 784,136 798,367 — — 798,367 Accrued interest receivable 2,520 2,520 — — 2,520 Cash surrender value of life insurance 14,297 14,297 14,297 — — Financial Liabilities Demand (non-interest bearing) $ 225,496 $ 225,496 $ — $ — $ 225,496 Demand (interest-bearing) 139,521 139,521 — — 139,521 Money market 196,745 196,745 — — 196,745 Savings and other 152,570 152,570 — — 152,570 Certificates of deposit 117,657 118,642 — — 118,642 Deposits 831,989 833,439 — — 833,439 Repurchase agreements 4,529 4,529 — — 4,529 FHLBB advances 27,364 28,212 — — 28,212 Subordinated debt 9,805 10,394 — — 10,394 Note payable 321 351 — — 351 Capital lease liability 1,859 2,249 — — 2,249 Accrued interest payable 246 246 — — 246 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 763,184 774,442 — — 774,442 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 | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized cost (1) | ||
Available-for-sale | ||
Municipal bonds | $ 4,611 | $ 15,800 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 49,655 | 53,407 |
Collateralized mortgage obligations, U.S. Government Agencies | 10,815 | 1,470 |
Collateralized mortgage obligations, Non-agency | 2,464 | 3,327 |
SBA bonds | 12,767 | 2,056 |
CRA mutual funds | 847 | 834 |
Corporate bonds | 3,500 | 2,000 |
Preferred stock | 7 | 7 |
Total securities available-for-sale | 84,666 | 78,901 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | 3,038 | 3,211 |
Gross unrealized gains | ||
Available-for-sale | ||
Municipal bonds | 30 | 197 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 274 | 229 |
Collateralized mortgage obligations, U.S. Government Agencies | 39 | 4 |
Collateralized mortgage obligations, Non-agency | 420 | 414 |
SBA bonds | 59 | 9 |
CRA mutual funds | ||
Corporate bonds | 57 | 16 |
Preferred stock | 181 | 215 |
Total securities available-for-sale | 1,060 | 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 | 172 | 335 |
Collateralized mortgage obligations, U.S. Government Agencies | 13 | |
Collateralized mortgage obligations, Non-agency | 16 | 6 |
SBA bonds | 10 | 1 |
CRA mutual funds | 7 | 16 |
Corporate bonds | 3 | |
Preferred stock | ||
Total securities available-for-sale | 218 | 362 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Fair value | ||
Available-for-sale | ||
Municipal bonds | 4,641 | 15,996 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 49,757 | 53,301 |
Collateralized mortgage obligations, U.S. Government Agencies | 10,841 | 1,474 |
Collateralized mortgage obligations, Non-agency | 2,868 | 3,735 |
SBA bonds | 12,816 | 2,064 |
CRA mutual funds | 840 | 818 |
Corporate bonds | 3,557 | 2,013 |
Preferred stock | 188 | 222 |
Total securities available-for-sale | 85,508 | 79,623 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | $ 3,038 | $ 3,211 |
SECURITIES - Aggreggate fair va
SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Less Than 12 Months, Fair value | ||
Available-for-sale | ||
Municipal bonds | $ 517 | |
Mortgage-backed securities | $ 10,483 | 34,758 |
Collateralized mortgage obligations, U.S. Government agencies | 4,810 | |
Collateralized mortgage obligations, Non-agency | 60 | |
SBA bonds | 3,414 | 475 |
CRA mutual funds | 500 | 818 |
Corporate bonds | 840 | 498 |
Total temporarily impaired securities | 20,047 | 37,126 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 107 | 174 |
Total temporarily impaired and other-than-temporarily impaired securities | 20,154 | 37,300 |
Less Than 12 Months, Unrealized losses | ||
Available-for-sale | ||
Municipal bonds | 1 | |
Mortgage-backed securities | 56 | 329 |
Collateralized mortgage obligations, U.S. Government agencies | 13 | |
Collateralized mortgage obligations, Non-agency | ||
SBA bonds | 10 | 1 |
CRA mutual funds | 16 | |
Corporate bonds | 7 | 3 |
Total temporarily impaired securities | 86 | 350 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 13 | 1 |
Total temporarily impaired and other-than-temporarily impaired securities | 99 | 351 |
12 Months or Longer, Fair value | ||
Available-for-sale | ||
Municipal bonds | ||
Mortgage-backed securities | 18,553 | 249 |
Collateralized mortgage obligations, U.S. Government agencies | ||
Collateralized mortgage obligations, Non-agency | 118 | 339 |
SBA bonds | ||
CRA mutual funds | ||
Corporate bonds | ||
Total temporarily impaired securities | 18,671 | 588 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | ||
Total temporarily impaired and other-than-temporarily impaired securities | 18,671 | 599 |
12 Months or Longer, Unrealized losses | ||
Available-for-sale | ||
Municipal bonds | ||
Mortgage-backed securities | 116 | 6 |
Collateralized mortgage obligations, U.S. Government agencies | ||
Collateralized mortgage obligations, Non-agency | 3 | 5 |
SBA bonds | ||
CRA mutual funds | ||
Corporate bonds | ||
Total temporarily impaired securities | 119 | 11 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | ||
Total temporarily impaired and other-than-temporarily impaired securities | 119 | 11 |
Total, Fair value | ||
Available-for-sale | ||
Municipal bonds | 517 | |
Mortgage-backed securities | 29,036 | 35,007 |
Collateralized mortgage obligations, U.S. Government agencies | 4,810 | |
Collateralized mortgage obligations, Non-agency | 118 | 399 |
SBA bonds | 3,414 | 475 |
CRA mutual funds | 500 | 818 |
Corporate bonds | 840 | 498 |
Total temporarily impaired securities | 38,718 | 37,714 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 107 | 174 |
Total temporarily impaired and other-than-temporarily impaired securities | 38,825 | 37,888 |
Total, Unrealized losses | ||
Available-for-sale | ||
Municipal bonds | 1 | |
Mortgage-backed securities | 172 | 335 |
Collateralized mortgage obligations, U.S. Government agencies | 13 | |
Collateralized mortgage obligations, Non-agency | 3 | 5 |
SBA bonds | 10 | 1 |
CRA mutual funds | 16 | |
Corporate bonds | 7 | 3 |
Total temporarily impaired securities | 205 | 361 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 13 | 1 |
Total temporarily impaired and other-than-temporarily impaired securities | $ 218 | $ 362 |
SECURITIES - Amortized cost, fa
SECURITIES - Amortized cost, fair value and tax equivalent yield of securities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Municipal bonds - Within 1 year | |
Amortized cost | $ 305 |
Fair value | $ 306 |
Yield | 6.26% |
Municipal bonds - After 1 year but within 5 years | |
Amortized cost | $ 491 |
Fair value | $ 495 |
Yield | 5.10% |
Municipal bonds - After 10 years but within 15 years | |
Amortized cost | $ 1,839 |
Fair value | $ 1,852 |
Yield | 7.01% |
Municipal bonds - After 15 years | |
Amortized cost | $ 1,976 |
Fair value | $ 1,988 |
Yield | 6.94% |
Municipal bonds - Total | |
Amortized cost | $ 4,611 |
Fair value | $ 4,641 |
Yield | 6.73% |
Mortgage-backed securities - U.S. Government agency and U.S. Government-sponsored enterprises | |
Amortized cost | $ 49,655 |
Fair value | $ 49,757 |
Yield | 2.31% |
Collateralized mortgage obligations - U.S. Government agency and U.S. Government-sponsored enterprises | |
Amortized cost | $ 10,815 |
Fair value | $ 10,841 |
Yield | 2.73% |
Collateralized mortgage obligations - Non-agency | |
Amortized cost | $ 2,464 |
Fair value | $ 2,868 |
Yield | 3.99% |
SBA bonds | |
Amortized cost | $ 12,767 |
Fair value | $ 12,816 |
Yield | 3.02% |
CRA mutual funds | |
Amortized cost | $ 847 |
Fair value | $ 840 |
Yield | 2.30% |
Corporate bonds - After 5 years but within 10 years | |
Amortized cost | $ 3,500 |
Fair value | $ 3,557 |
Yield | 5.57% |
Preferred stock | |
Amortized cost | $ 7 |
Fair value | $ 188 |
Yield | 5.49% |
Securities available-for-sale | |
Amortized cost | $ 84,666 |
Fair value | $ 85,508 |
Yield | 2.89% |
SECURITIES - Activity related t
SECURITIES - Activity related to credit losses recognized into earnings (Details) - Activity related to credit losses recognized into earnings - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2009 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sales of securities available-for-sale | $ 3,900 | |
Pre-tax gain on sale of securities available-for-sale | 148 | |
Related tax expense on sale of securities available-for-sale | 50 | |
Recognized losses for deterioration in credit quality | $ 1,128 | |
CRA mutual funds total fair value | 840 | |
CRA mutual funds total unrealized losses | $ (7) |
LOANS - Composition of loans re
LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Business Activites Loans | ||
Residential 1-4 family | $ 304,711 | $ 295,030 |
Residential 5+ multifamily | 11,904 | 7,976 |
Construction of residential 1-4 family | 11,582 | 10,951 |
Home equity lines of credit | 35,529 | 35,487 |
Residential real estate | 363,726 | 349,444 |
Commercial | 180,055 | 155,628 |
Construction of commercial | 8,444 | 3,481 |
Commercial real estate | 181,039 | 159,109 |
Farm land | 4,692 | 3,914 |
Vacant land | 7,464 | 6,600 |
Real estate secured | 564,381 | 519,067 |
Commercial and industrial | 114,447 | 121,144 |
Municipal | 12,499 | 8,626 |
Consumer | 4,851 | 5,312 |
Loans receivable, gross | 696,178 | 654,149 |
Deferred loan origination fees and costs, net | 1,285 | 1,247 |
Allowance for loan losses | (6,280) | (5,816) |
Loans receivable, net | 691,183 | 649,580 |
Loans held-for-sale | ||
Residential 1-4 family | 561 | |
Acquired Loans | ||
Residential 1-4 family | 5,626 | 6,098 |
Residential 5+ multifamily | 5,251 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 10,877 | 11,747 |
Commercial | 67,306 | 79,854 |
Construction of commercial | 809 | 1,917 |
Commercial real estate | 71,870 | 81,771 |
Farm land | ||
Vacant land | ||
Real estate secured | 78,992 | 93,518 |
Commercial and industrial | 14,126 | 20,329 |
Municipal | ||
Consumer | 49 | 68 |
Loans receivable, gross | 93,167 | 113,915 |
Deferred loan origination fees and costs, net | ||
Allowance for loan losses | (214) | (311) |
Loans receivable, net | 92,953 | 113,604 |
Loans held-for-sale | ||
Residential 1-4 family | ||
Total | ||
Residential 1-4 family | 310,337 | 301,128 |
Residential 5+ multifamily | 17,155 | 13,625 |
Construction of residential 1-4 family | 11,582 | 10,951 |
Home equity lines of credit | 35,529 | 35,487 |
Residential real estate | 374,603 | 361,191 |
Commercial | 247,361 | 235,482 |
Construction of commercial | 9,253 | 5,398 |
Commercial real estate | 252,909 | 240,880 |
Farm land | 4,692 | 3,914 |
Vacant land | 7,464 | 6,600 |
Real estate secured | 643,373 | 612,585 |
Commercial and industrial | 128,573 | 141,473 |
Municipal | 12,499 | 8,626 |
Consumer | 4,900 | 5,380 |
Loans receivable, gross | 789,345 | 768,064 |
Deferred loan origination fees and costs, net | 1,285 | 1,247 |
Allowance for loan losses | (6,494) | (6,127) |
Loans receivable, net | 784,136 | 763,184 |
Loans held-for-sale | ||
Residential 1-4 family | $ 561 |
LOANS - Composition of loans 34
LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Business Activities Loans - Pass | ||
Residential 1-4 family | $ 294,812 | $ 285,939 |
Residential 5+ multifamily | 9,917 | 5,907 |
Construction of residential 1-4 family | 11,582 | 10,951 |
Home equity lines of credit | 34,463 | 34,299 |
Residential real estate | 350,774 | 337,096 |
Commercial | 170,227 | 145,849 |
Construction of commercial | 8,334 | 3,366 |
Commercial real estate | 178,561 | 149,215 |
Farm land | 3,712 | 2,912 |
Vacant land | 7,349 | 6,513 |
Real estate secured | 540,396 | 495,736 |
Commercial and industrial | 112,799 | 118,804 |
Municipal | 12,499 | 8,626 |
Consumer | 4,812 | 5,288 |
Loans receivable, gross | 670,506 | 628,454 |
Business Activities Loans - Special mention | ||
Residential 1-4 family | 6,657 | 6,170 |
Residential 5+ multifamily | 1,834 | 1,906 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 738 | 512 |
Residential real estate | 9,229 | 8,588 |
Commercial | 3,611 | 3,759 |
Construction of commercial | ||
Commercial real estate | 3,611 | 3,759 |
Farm land | ||
Vacant land | 79 | 87 |
Real estate secured | 12,919 | 12,434 |
Commercial and industrial | 1,225 | 1,734 |
Municipal | ||
Consumer | 39 | 24 |
Loans receivable, gross | 14,183 | 14,192 |
Business Activities Loans - Substandard | ||
Residential 1-4 family | 3,242 | 2,832 |
Residential 5+ multifamily | 153 | 163 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 328 | 676 |
Residential real estate | 3,723 | 3,671 |
Commercial | 6,217 | 6,020 |
Construction of commercial | 110 | 115 |
Commercial real estate | 6,327 | 6,135 |
Farm land | 980 | 1,002 |
Vacant land | 36 | |
Real estate secured | 11,066 | 10,808 |
Commercial and industrial | 423 | 606 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 11,489 | 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 | 304,711 | 295,030 |
Residential 5+ multifamily | 11,904 | 7,976 |
Construction of residential 1-4 family | 11,582 | 10,951 |
Home equity lines of credit | 35,529 | 35,487 |
Residential real estate | 363,726 | 349,444 |
Commercial | 180,055 | 155,628 |
Construction of commercial | 8,444 | 3,481 |
Commercial real estate | 188,499 | 159,109 |
Farm land | 4,692 | 3,914 |
Vacant land | 7,464 | 6,600 |
Real estate secured | 564,381 | 519,067 |
Commercial and industrial | 114,447 | 121,144 |
Municipal | 12,499 | 8,626 |
Consumer | 4,851 | 5,312 |
Loans receivable, gross | 696,178 | 654,149 |
Acquired Loans - Pass | ||
Residential 1-4 family | 5,475 | 5,989 |
Residential 5+ multifamily | 5,251 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 10,726 | 11,638 |
Commercial | 59,511 | 70,007 |
Construction of commercial | 551 | 1,659 |
Commercial real estate | 60,062 | 71,666 |
Farm land | ||
Vacant land | ||
Real estate secured | 70,788 | 83,304 |
Commercial and industrial | 13,199 | 19,110 |
Municipal | ||
Consumer | 47 | 65 |
Loans receivable, gross | 84,034 | 102,479 |
Acquired Loans - Special Mention | ||
Residential 1-4 family | 103 | 109 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 103 | 109 |
Commercial | 2,118 | 4,059 |
Construction of commercial | ||
Commercial real estate | 2,118 | 4,059 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,221 | 4,168 |
Commercial and industrial | 844 | 1,160 |
Municipal | ||
Consumer | 2 | 3 |
Loans receivable, gross | 3,067 | 5,331 |
Acquired Loans - Substandard | ||
Residential 1-4 family | 48 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 48 | |
Commercial | 5,677 | 5,788 |
Construction of commercial | 258 | 258 |
Commercial real estate | 5,935 | 6,046 |
Farm land | ||
Vacant land | ||
Real estate secured | 5,983 | 6,046 |
Commercial and industrial | 83 | 59 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 6,066 | 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 | 5,626 | 6,098 |
Residential 5+ multifamily | 5,251 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 10,877 | 11,747 |
Commercial | 67,306 | 79,854 |
Construction of commercial | 809 | 1,917 |
Commercial real estate | 68,115 | 81,771 |
Farm land | ||
Vacant land | ||
Real estate secured | 78,992 | 93,518 |
Commercial and industrial | 14,126 | 20,329 |
Municipal | ||
Consumer | 49 | 68 |
Loans receivable, gross | $ 93,167 | $ 113,915 |
LOANS - Composition of loans 35
LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Business Activities Loans - Current | ||
Residential 1-4 family | $ 301,613 | $ 291,941 |
Residential 5+ multifamily | 11,904 | 7,976 |
Construction of residential 1-4 family | 11,582 | 10,951 |
Home equity lines of credit | 34,753 | 35,190 |
Residential real estate | 359,852 | 346,058 |
Commercial | 177,985 | 152,905 |
Construction of commercial | 8,444 | 3,481 |
Commercial real estate | 186,429 | 156,386 |
Farm land | 3,711 | 2,402 |
Vacant land | 7,428 | 6,575 |
Real estate secured | 557,420 | 511,421 |
Commercial and industrial | 114,037 | 120,719 |
Municipal | 12,499 | 8,626 |
Consumer | 4,774 | 5,268 |
Loans receivable, gross | 688,730 | 646,034 |
Business Activities Loans - Past due 30-59 days | ||
Residential 1-4 family | 1,108 | 1,161 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 293 | 155 |
Residential real estate | 1,401 | 1,316 |
Commercial | 276 | 451 |
Construction of commercial | ||
Commercial real estate | 276 | 451 |
Farm land | 258 | 789 |
Vacant land | 25 | |
Real estate secured | 1,935 | 2,581 |
Commercial and industrial | 194 | 140 |
Municipal | ||
Consumer | 75 | 26 |
Loans receivable, gross | 2,204 | 2,747 |
Business Activities Loans - Past due 60-89 days | ||
Residential 1-4 family | 228 | 213 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 394 | 88 |
Residential real estate | 622 | 301 |
Commercial | 250 | |
Construction of commercial | ||
Commercial real estate | 250 | |
Farm land | ||
Vacant land | ||
Real estate secured | 622 | 551 |
Commercial and industrial | 5 | 239 |
Municipal | ||
Consumer | 2 | 15 |
Loans receivable, gross | 629 | 805 |
Business Activities Loans - Past due 90-179 days | ||
Residential 1-4 family | 430 | 327 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 89 | |
Residential real estate | 519 | 327 |
Commercial | 1,793 | |
Construction of commercial | ||
Commercial real estate | 1,793 | |
Farm land | ||
Vacant land | 36 | |
Real estate secured | 555 | 2,120 |
Commercial and industrial | 75 | 46 |
Municipal | ||
Consumer | 3 | |
Loans receivable, gross | 630 | 2,169 |
Business Activities Loans - Past due 180 days and over | ||
Residential 1-4 family | 1,332 | 1,388 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 54 | |
Residential real estate | 1,332 | 1,442 |
Commercial | 1,793 | 229 |
Construction of commercial | ||
Commercial real estate | 1,793 | 229 |
Farm land | 723 | 723 |
Vacant land | ||
Real estate secured | 3,848 | 2,394 |
Commercial and industrial | 137 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 3,985 | 2,394 |
Business Activities Loans - Past due 30 days and over | ||
Residential 1-4 family | 3,098 | 3,089 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 776 | 297 |
Residential real estate | 3,874 | 3,386 |
Commercial | 2,069 | 2,723 |
Construction of commercial | ||
Commercial real estate | 2,069 | 2,723 |
Farm land | 981 | 1,512 |
Vacant land | 36 | 25 |
Real estate secured | 6,960 | 7,646 |
Commercial and industrial | 411 | 425 |
Municipal | ||
Consumer | 77 | 44 |
Loans receivable, gross | 7,448 | 8,115 |
Business Activities Loans - Accruing 90 days and over | ||
Residential 1-4 family | 102 | 236 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 102 | 236 |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | 36 | |
Real estate secured | 138 | 236 |
Commercial and industrial | 75 | 20 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 213 | 256 |
Business Activities Loans - Non-accrual | ||
Residential 1-4 family | 2,169 | 1,920 |
Residential 5+ multifamily | 153 | 163 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 209 | 519 |
Residential real estate | 2,531 | 2,602 |
Commercial | 1,793 | 2,022 |
Construction of commercial | ||
Commercial real estate | 1,793 | 2,022 |
Farm land | 980 | 1,002 |
Vacant land | ||
Real estate secured | 5,304 | 5,626 |
Commercial and industrial | 137 | 27 |
Municipal | ||
Consumer | 4 | |
Loans receivable, gross | 5,441 | 5,657 |
Acquired Loans - Current | ||
Residential 1-4 family | 5,626 | 5,954 |
Residential 5+ multifamily | 5,251 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 10,877 | 11,603 |
Commercial | 64,204 | 76,471 |
Construction of commercial | 551 | 1,659 |
Commercial real estate | 64,755 | 78,130 |
Farm land | ||
Vacant land | ||
Real estate secured | 75,632 | 89,733 |
Commercial and industrial | 13,754 | 19,904 |
Municipal | ||
Consumer | 49 | 68 |
Loans receivable, gross | 89,435 | 109,705 |
Acquired Loans - Past due 30-59 days | ||
Residential 1-4 family | 144 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 144 | |
Commercial | 698 | 762 |
Construction of commercial | ||
Commercial real estate | 698 | 762 |
Farm land | ||
Vacant land | ||
Real estate secured | 698 | 906 |
Commercial and industrial | 61 | 425 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 759 | 1,331 |
Acquired Loans - Past due 60-89 days | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 4 | |
Construction of commercial | ||
Commercial real estate | 4 | |
Farm land | ||
Vacant land | ||
Real estate secured | 4 | |
Commercial and industrial | 310 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 314 | |
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 | 545 | 346 |
Construction of commercial | ||
Commercial real estate | 545 | 346 |
Farm land | ||
Vacant land | ||
Real estate secured | 545 | 346 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 545 | 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 | 1,856 | 2,275 |
Construction of commercial | 258 | 258 |
Commercial real estate | 2,114 | 2,533 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,114 | 2,533 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 2,114 | 2,533 |
Acquired Loans - Past due 30 days and over | ||
Residential 1-4 family | 144 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 144 | |
Commercial | 3,103 | 3,383 |
Construction of commercial | 258 | 258 |
Commercial real estate | 3,361 | 3,641 |
Farm land | ||
Vacant land | ||
Real estate secured | 3,361 | 3,785 |
Commercial and industrial | 371 | 425 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 3,732 | 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 | 545 | |
Construction of commercial | ||
Commercial real estate | 545 | |
Farm land | ||
Vacant land | ||
Real estate secured | 545 | |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 545 | |
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 | 1,856 | 2,621 |
Construction of commercial | 258 | 258 |
Commercial real estate | 2,114 | 2,879 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,114 | 2,879 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 2,114 | $ 2,879 |
LOANS - Troubled debt restructu
LOANS - Troubled debt restructurings (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)Integer | Sep. 30, 2016USD ($)Integer | |
Business Activities Loans - Residential real estate | ||
Quantity of troubled debt restructurings | Integer | 4 | |
Pre-modification balance | $ 683 | |
Post-modification balance | $ 683 | |
Business Activities Loans - Commercial real estate | ||
Quantity of troubled debt restructurings | Integer | 1 | 2 |
Pre-modification balance | $ 600 | $ 2,123 |
Post-modification balance | $ 600 | $ 2,123 |
Business Activities Loans - Troubled debt restructurings | ||
Quantity of troubled debt restructurings | Integer | 1 | 6 |
Pre-modification balance | $ 600 | $ 2,806 |
Post-modification balance | $ 600 | $ 2,806 |
Business Activities Loans - Rate reduction and term extension | ||
Quantity of troubled debt restructurings | Integer | 1 | |
Pre-modification balance | $ 174 | |
Post-modification balance | $ 174 | |
Business Activities Loans - Debt consolidation | ||
Quantity of troubled debt restructurings | Integer | 2 | |
Pre-modification balance | $ 2,123 | |
Post-modification balance | $ 2,123 | |
Business Activities Loans - Term extension | ||
Quantity of troubled debt restructurings | Integer | 1 | 3 |
Pre-modification balance | $ 600 | $ 509 |
Post-modification balance | $ 600 | $ 509 |
LOANS - Changes in allowance fo
LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Activities Loans - Residential | ||||
Beginning balance | $ 2,353 | $ 2,248 | $ 2,427 | $ 2,477 |
Provision | 34 | 224 | 35 | 370 |
Charge-offs | (93) | (155) | (172) | (550) |
Recoveries | 4 | 8 | 8 | 28 |
Ending balance | 2,298 | 2,325 | 2,298 | 2,325 |
Business Activities Loans - Commercial | ||||
Beginning balance | 2,099 | 1,734 | 1,683 | 1,466 |
Provision | 50 | 29 | 504 | 332 |
Charge-offs | (1) | (38) | (37) | |
Recoveries | 69 | 69 | 1 | |
Ending balance | 2,218 | 1,762 | 2,218 | 1,762 |
Business Activities Loans - Land | ||||
Beginning balance | 154 | 166 | 198 | 188 |
Provision | 51 | 82 | 23 | 106 |
Charge-offs | (27) | (42) | (43) | (88) |
Recoveries | ||||
Ending balance | 178 | 206 | 178 | 206 |
Business Activities Loans - Real Estate | ||||
Beginning balance | 4,606 | 4,148 | 4,308 | 4,131 |
Provision | 135 | 335 | 562 | 808 |
Charge-offs | (120) | (198) | (253) | (675) |
Recoveries | 73 | 8 | 77 | 29 |
Ending balance | 4,694 | 4,293 | 4,694 | 4,293 |
Business Activities Loans - Commercial and industrial | ||||
Beginning balance | 979 | 851 | 1,043 | 683 |
Provision | (59) | (16) | (115) | (167) |
Charge-offs | (2) | (57) | (32) | |
Recoveries | 1 | 25 | 50 | 40 |
Ending balance | 921 | 858 | 921 | 858 |
Business Activities Loans - Municipal | ||||
Beginning balance | 18 | 56 | 53 | 61 |
Provision | 2 | (3) | (33) | (8) |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 20 | 53 | 20 | 53 |
Business Activities Loans - Consumer | ||||
Beginning balance | 69 | 89 | 75 | 124 |
Provision | 12 | 17 | 43 | 1 |
Charge-offs | (17) | (17) | (63) | (46) |
Recoveries | 4 | 5 | 13 | 15 |
Ending balance | 68 | 94 | 68 | 94 |
Business Activities Loans - Unallocated | ||||
Beginning balance | 514 | 334 | 337 | 482 |
Provision | 63 | (19) | 240 | (167) |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 577 | 315 | 577 | 315 |
Business Activities Loans - Totals | ||||
Beginning balance | 6,186 | 5,478 | 5,816 | 5,481 |
Provision | 153 | 314 | 697 | 801 |
Charge-offs | (137) | (217) | (373) | (753) |
Recoveries | 78 | 38 | 140 | 84 |
Ending balance | 6,280 | 5,613 | 6,280 | 5,613 |
Acquired Loans - Residential | ||||
Beginning balance | 69 | 79 | ||
Provision | 5 | (5) | ||
Charge-offs | ||||
Recoveries | ||||
Ending balance | 74 | 74 | ||
Acquired Loans - Commercial | ||||
Beginning balance | 285 | 134 | 275 | 132 |
Provision | 53 | 37 | 184 | 133 |
Charge-offs | (190) | (340) | (98) | |
Recoveries | 48 | 77 | 4 | |
Ending balance | 196 | 171 | 196 | 171 |
Acquired Loans - Land | ||||
Beginning balance | ||||
Provision | ||||
Charge-offs | ||||
Recoveries | ||||
Ending balance | ||||
Acquired Loans - Real Estate | ||||
Beginning balance | 285 | 203 | 275 | 211 |
Provision | 53 | 42 | 184 | 128 |
Charge-offs | (190) | (340) | (98) | |
Recoveries | 48 | 77 | 4 | |
Ending balance | 196 | 245 | 196 | 245 |
Acquired Loans - Commercial and industrial | ||||
Beginning balance | 22 | 37 | 36 | 24 |
Provision | 31 | (11) | 72 | 403 |
Charge-offs | (41) | (105) | (416) | |
Recoveries | 6 | 8 | 15 | 23 |
Ending balance | 18 | 34 | 18 | 34 |
Acquired Loans - Municipal | ||||
Beginning balance | ||||
Provision | ||||
Charge-offs | ||||
Recoveries | ||||
Ending balance | ||||
Acquired Loans - Consumer | ||||
Beginning balance | ||||
Provision | ||||
Charge-offs | ||||
Recoveries | ||||
Ending balance | ||||
Acquired Loans - Unallocated | ||||
Beginning balance | ||||
Provision | ||||
Charge-offs | ||||
Recoveries | ||||
Ending balance | ||||
Acquired Loans - Totals | ||||
Beginning balance | 307 | 240 | 311 | 235 |
Provision | 84 | 31 | 256 | 531 |
Charge-offs | (231) | (445) | (514) | |
Recoveries | 54 | 8 | 92 | 27 |
Ending balance | $ 214 | $ 279 | $ 214 | $ 279 |
LOANS - Continued - Composition
LOANS - Continued - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Business Activities Loans - Collectively evaluated Loans | ||
Residential 1-4 family | $ 299,406 | $ 289,900 |
Residential 5+ multifamily | 10,152 | 6,153 |
Construction of residential 1-4 family | 11,582 | 10,951 |
Home equity lines credit | 35,273 | 34,854 |
Residential real estate | 356,413 | 341,858 |
Commercial | 176,063 | 151,940 |
Construction of commercial | 8,334 | 3,366 |
Commercial real estate | 184,397 | 155,306 |
Farm land | 3,712 | 2,912 |
Vacant land | 7,263 | 6,390 |
Real estate secured | 551,785 | 506,466 |
Commercial and industrial | 114,260 | 121,060 |
Municipal | 12,499 | 8,626 |
Consumer | 4,851 | 5,309 |
Unallocated allowance | ||
Totals | 683,395 | 641,461 |
Business Activities Loans - Collectively evaluated Allowance | ||
Residential 1-4 family | 1,749 | 1,797 |
Residential 5+ multifamily | 123 | 56 |
Construction of residential 1-4 family | 76 | 91 |
Home equity lines credit | 264 | 326 |
Residential real estate | 2,211 | 2,270 |
Commercial | 2,087 | 1,587 |
Construction of commercial | 69 | 36 |
Commercial real estate | 2,156 | 1,623 |
Farm land | 28 | 28 |
Vacant land | 147 | 166 |
Real estate secured | 4,542 | 4,087 |
Commercial and industrial | 889 | 1,043 |
Municipal | 20 | 53 |
Consumer | 68 | 75 |
Unallocated allowance | 577 | 337 |
Totals | 6,096 | 5,595 |
Business Activities Loans - Individually evaluated Loans | ||
Residential 1-4 family | 5,305 | 5,130 |
Residential 5+ multifamily | 1,752 | 1,823 |
Construction of residential 1-4 family | ||
Home equity lines credit | 256 | 633 |
Residential real estate | 7,313 | 7,586 |
Commercial | 3,992 | 3,688 |
Construction of commercial | 110 | 115 |
Commercial real estate | 4,102 | 3,803 |
Farm land | 980 | 1,002 |
Vacant land | 201 | 210 |
Real estate secured | 12,596 | 12,601 |
Commercial and industrial | 187 | 84 |
Municipal | ||
Consumer | 3 | |
Unallocated allowance | ||
Totals | 12,783 | 12,688 |
Business Activities Loans - Individually evaluated Allowance | ||
Residential 1-4 family | 85 | 129 |
Residential 5+ multifamily | 1 | 6 |
Construction of residential 1-4 family | ||
Home equity lines credit | 1 | 22 |
Residential real estate | 87 | 157 |
Commercial | 62 | 60 |
Construction of commercial | ||
Commercial real estate | 62 | 60 |
Farm land | ||
Vacant land | 3 | 4 |
Real estate secured | 152 | 221 |
Commercial and industrial | 32 | |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 184 | 221 |
Business Activities Loans - Total portfolio Loans | ||
Residential 1-4 family | 304,711 | 295,030 |
Residential 5+ multifamily | 11,904 | 7,976 |
Construction of residential 1-4 family | 11,582 | 10,951 |
Home equity lines credit | 35,529 | 35,487 |
Residential real estate | 363,726 | 349,444 |
Commercial | 180,055 | 155,628 |
Construction of commercial | 8,444 | 3,481 |
Commercial real estate | 188,499 | 159,109 |
Farm land | 4,692 | 3,914 |
Vacant land | 7,464 | 6,600 |
Real estate secured | 564,381 | 519,067 |
Commercial and industrial | 114,447 | 121,144 |
Municipal | 12,499 | 8,626 |
Consumer | 4,851 | 5,312 |
Unallocated allowance | ||
Totals | 696,178 | 654,149 |
Business Activities Loans - Total portfolio Allowance | ||
Residential 1-4 family | 1,833 | 1,926 |
Residential 5+ multifamily | 124 | 62 |
Construction of residential 1-4 family | 76 | 91 |
Home equity lines credit | 265 | 348 |
Residential real estate | 2,298 | 2,427 |
Commercial | 2,149 | 1,647 |
Construction of commercial | 69 | 36 |
Commercial real estate | 2,218 | 1,683 |
Farm land | 28 | 28 |
Vacant land | 150 | 170 |
Real estate secured | 4,694 | 4,308 |
Commercial and industrial | 921 | 1,043 |
Municipal | 20 | 53 |
Consumer | 68 | 75 |
Unallocated allowance | 577 | 337 |
Totals | 6,280 | 5,816 |
Acquired Loans - Collectively evaluated Loans | ||
Residential 1-4 family | 5,626 | 6,098 |
Residential 5+ multifamily | 5,251 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | 10,877 | 11,747 |
Commercial | 60,904 | 72,569 |
Construction of commercial | 551 | 1,659 |
Commercial real estate | 61,455 | 74,228 |
Farm land | ||
Vacant land | ||
Real estate secured | 72,332 | 85,975 |
Commercial and industrial | 14,047 | 20,020 |
Municipal | ||
Consumer | 34 | 52 |
Unallocated allowance | ||
Totals | 86,413 | 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 | 27 | 22 |
Construction of commercial | 1 | 3 |
Commercial real estate | 28 | 25 |
Farm land | ||
Vacant land | ||
Real estate secured | 28 | 25 |
Commercial and industrial | 10 | 16 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 38 | 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 | 2,645 | 3,388 |
Construction of commercial | 258 | 258 |
Commercial real estate | 2,903 | 3,646 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,903 | 3,646 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 2,903 | 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 | 87 | 191 |
Construction of commercial | ||
Commercial real estate | 87 | 191 |
Farm land | ||
Vacant land | ||
Real estate secured | 87 | 191 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 87 | 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 | 3,757 | 3,897 |
Construction of commercial | ||
Commercial real estate | 3,757 | 3,897 |
Farm land | ||
Vacant land | ||
Real estate secured | 3,757 | 3,897 |
Commercial and industrial | 79 | 309 |
Municipal | ||
Consumer | 15 | 16 |
Unallocated allowance | ||
Totals | 3,851 | 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 | 81 | 59 |
Construction of commercial | ||
Commercial real estate | 81 | 59 |
Farm land | ||
Vacant land | ||
Real estate secured | 81 | 59 |
Commercial and industrial | 8 | 20 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 89 | 79 |
Acquired Loans - Total portfolio Loans | ||
Residential 1-4 family | 5,626 | 6,098 |
Residential 5+ multifamily | 5,251 | 5,649 |
Construction of residential 1-4 family | ||
Home equity lines credit | ||
Residential real estate | 10,877 | 11,747 |
Commercial | 67,306 | 79,854 |
Construction of commercial | 809 | 1,917 |
Commercial real estate | 68,115 | 81,771 |
Farm land | ||
Vacant land | ||
Real estate secured | 78,992 | 93,518 |
Commercial and industrial | 14,126 | 20,329 |
Municipal | ||
Consumer | 49 | 68 |
Unallocated allowance | ||
Totals | 93,167 | 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 | 195 | 272 |
Construction of commercial | 1 | 3 |
Commercial real estate | 196 | 275 |
Farm land | ||
Vacant land | ||
Real estate secured | 196 | 275 |
Commercial and industrial | 18 | 36 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | $ 214 | $ 311 |
LOANS - Continued - Credit qual
LOANS - Continued - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Business Activities Loans - Collectively evaluated Loans | ||
Performing loans | $ 678,906 | $ 636,645 |
Potential problem loans | 4,489 | 4,816 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 683,395 | 641,461 |
Business Activities Loans - Collectively evaluated Allowance | ||
Performing loans | 5,313 | 5,062 |
Potential problem loans | 206 | 196 |
Impaired loans | ||
Unallocated allowance | 577 | 337 |
Totals | 6,096 | 5,595 |
Business Activities Loans - Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 12,783 | 12,688 |
Unallocated allowance | ||
Totals | 12,783 | 12,688 |
Business Activities Loans - Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 184 | 221 |
Unallocated allowance | ||
Totals | 184 | 221 |
Business Activities Loans - Total portfolio Loans | ||
Performing loans | 678,906 | 636,645 |
Potential problem loans | 4,489 | 4,816 |
Impaired loans | 12,783 | 12,688 |
Unallocated allowance | ||
Totals | 696,178 | 654,149 |
Business Activities Loans - Total portfolio Allowance | ||
Performing loans | 5,313 | 5,062 |
Potential problem loans | 206 | 196 |
Impaired loans | 184 | 221 |
Unallocated allowance | 577 | 337 |
Totals | 6,280 | 5,816 |
Acquired Loans - Collectively evaluated Loans | ||
Performing loans | 87,102 | 107,810 |
Potential problem loans | 3,162 | 2,459 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 90,264 | 110,269 |
Acquired Loans - Collectively evaluated Allowance | ||
Performing loans | 48 | 55 |
Potential problem loans | 79 | 65 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 127 | 120 |
Acquired Loans - Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 2,903 | 3,646 |
Unallocated allowance | ||
Totals | 2,903 | 3,646 |
Acquired Loans - Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 87 | 191 |
Unallocated allowance | ||
Totals | 87 | 191 |
Acquired Loans - Total portfolio Loans | ||
Performing loans | 87,102 | 107,810 |
Potential problem loans | 3,162 | 2,459 |
Impaired loans | 2,903 | 3,646 |
Unallocated allowance | ||
Totals | 93,167 | 113,915 |
Acquired Loans - Total portfolio Allowance | ||
Performing loans | 48 | 55 |
Potential problem loans | 79 | 65 |
Impaired loans | 87 | 191 |
Unallocated allowance | ||
Totals | $ 214 | $ 311 |
LOANS - Continued - Certain dat
LOANS - Continued - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Book | ||
Residential | $ 3,256 | $ 3,516 |
Home equity lines of credit | 47 | 406 |
Residential real estate | 3,303 | 3,922 |
Commercial | 1,555 | 3,021 |
Construction of commercial | 110 | |
Farm land | ||
Vacant land | 44 | 46 |
Real estate secured | 5,012 | 6,989 |
Commercial and industrial | 110 | |
Consumer | ||
Totals | 5,122 | 6,989 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Note | ||
Residential | 3,367 | 3,684 |
Home equity lines of credit | 47 | 435 |
Residential real estate | 3,414 | 4,119 |
Commercial | 1,596 | 3,304 |
Construction of commercial | 116 | |
Farm land | ||
Vacant land | 44 | 46 |
Real estate secured | 5,170 | 7,469 |
Commercial and industrial | 110 | |
Consumer | ||
Totals | 5,280 | 7,469 |
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Average | ||
Residential | 3,388 | 5,907 |
Home equity lines of credit | 88 | 462 |
Residential real estate | 3,476 | 6,369 |
Commercial | 1,943 | 3,347 |
Construction of commercial | 44 | 56 |
Farm land | 394 | |
Vacant land | 45 | 1,786 |
Real estate secured | 5,508 | 11,952 |
Commercial and industrial | 44 | 31 |
Consumer | ||
Totals | 5,552 | 11,983 |
Business Activities Loans - Impaired loans with specific allowance - Specific allowance | ||
Residential | 86 | 135 |
Home equity lines of credit | 1 | 22 |
Residential real estate | 87 | 157 |
Commercial | 62 | 60 |
Construction of commercial | ||
Farm land | ||
Vacant land | 3 | 4 |
Real estate secured | 152 | 221 |
Commercial and industrial | 32 | |
Consumer | ||
Totals | 184 | 221 |
Business Activities Loans - Impaired loans with specific allowance - Income recognized | ||
Residential | 80 | 88 |
Home equity lines of credit | 1 | 2 |
Residential real estate | 81 | 90 |
Commercial | 49 | 34 |
Construction of commercial | 5 | |
Farm land | ||
Vacant land | 2 | 3 |
Real estate secured | 137 | 127 |
Commercial and industrial | 2 | |
Consumer | ||
Totals | 139 | 127 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Book | ||
Residential | 3,803 | 3,437 |
Home equity lines of credit | 209 | 227 |
Residential real estate | 4,012 | 3,664 |
Commercial | 2,437 | 667 |
Construction of commercial | 115 | |
Farm land | 980 | 1,002 |
Vacant land | 157 | 164 |
Real estate secured | 7,586 | 5,612 |
Commercial and industrial | 76 | 84 |
Consumer | 3 | |
Totals | 7,662 | 5,699 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Note | ||
Residential | 4,641 | 4,031 |
Home equity lines of credit | 264 | 277 |
Residential real estate | 4,905 | 4,308 |
Commercial | 2,947 | 897 |
Construction of commercial | 121 | |
Farm land | 1,177 | 1,140 |
Vacant land | 181 | 189 |
Real estate secured | 9,210 | 6,655 |
Commercial and industrial | 171 | 130 |
Consumer | 6 | 16 |
Totals | 9,387 | 6,801 |
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Average | ||
Residential | 3,605 | 2,822 |
Home equity lines of credit | 173 | 331 |
Residential real estate | 3,778 | 3,153 |
Commercial | 1,913 | 934 |
Construction of commercial | 68 | 63 |
Farm land | 982 | 622 |
Vacant land | 161 | 195 |
Real estate secured | 6,902 | 4,967 |
Commercial and industrial | 110 | 201 |
Consumer | 2 | 7 |
Totals | 7,014 | 5,175 |
Business Activities Loans - Impaired loans with no specific allowance - Income recognized | ||
Residential | 89 | 94 |
Home equity lines of credit | 6 | 3 |
Residential real estate | 95 | 97 |
Commercial | 33 | 42 |
Construction of commercial | 8 | |
Farm land | ||
Vacant land | 8 | 12 |
Real estate secured | 136 | 159 |
Commercial and industrial | 2 | 3 |
Consumer | ||
Totals | 138 | 162 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Book | ||
Residential | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 339 | 1,254 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 339 | 1,254 |
Commercial and industrial | ||
Consumer | ||
Totals | 339 | 1,254 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Note | ||
Residential | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 437 | 1,628 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 437 | 1,628 |
Commercial and industrial | ||
Consumer | ||
Totals | 437 | 1,628 |
Acquired Loans - Impaired loans with specific allowance - Loan balance - Average | ||
Residential | 504 | |
Home equity lines of credit | ||
Residential real estate | 504 | |
Commercial | 973 | 725 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 973 | 1,229 |
Commercial and industrial | 77 | |
Consumer | ||
Totals | 973 | 1,306 |
Acquired Loans - Impaired loans with specific allowance - Specific allowance | ||
Residential | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 87 | 191 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 87 | 191 |
Commercial and industrial | ||
Consumer | ||
Totals | 87 | 191 |
Acquired Loans - Impaired loans with specific allowance - Income recognized | ||
Residential | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 10 | 14 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 10 | 14 |
Commercial and industrial | ||
Consumer | ||
Totals | 10 | 14 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Book | ||
Residential | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 2,306 | 2,134 |
Construction of commercial | 258 | 258 |
Farm land | ||
Vacant land | ||
Real estate secured | 2,564 | 2,392 |
Commercial and industrial | ||
Consumer | ||
Totals | 2,564 | 2,392 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Note | ||
Residential | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 3,248 | 2,621 |
Construction of commercial | 272 | 272 |
Farm land | ||
Vacant land | ||
Real estate secured | 3,520 | 2,893 |
Commercial and industrial | ||
Consumer | ||
Totals | 3,520 | 2,893 |
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Average | ||
Residential | 238 | |
Home equity lines of credit | ||
Residential real estate | 238 | |
Commercial | 1,525 | 2,112 |
Construction of commercial | 258 | 258 |
Farm land | ||
Vacant land | ||
Real estate secured | 1,783 | 2,608 |
Commercial and industrial | 19 | |
Consumer | ||
Totals | 1,783 | 2,627 |
Acquired Loans - Impaired loans with no specific allowance - Income recognized | ||
Residential | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 60 | 38 |
Construction of commercial | ||
Farm land | ||
Vacant land | ||
Real estate secured | 60 | 38 |
Commercial and industrial | ||
Consumer | ||
Totals | $ 60 | $ 38 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 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 | $ 691 | $ 666 | |
Investment in residential mortgage loans collateralized by real estate in process of foreclosure | 5,100 | $ 2,100 | |
Carrying amount of foreclosed residential real estate held as a result of obtaining physical possession | $ 3,200 | $ 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Residential mortgage loans serviced for others | $ 120,429 | $ 125,243 |
Fair value of mortgage servicing rights | $ 1,004 | $ 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 | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||||
Mortgage Servicing Rights | ||||||||
Balance, beginning of period | $ 241 | $ 416 | $ 339 | $ 487 | ||||
Originated | 15 | 28 | 53 | 71 | ||||
Amortization | (13) | [1] | (67) | [1] | (149) | [1] | (181) | |
Balance, end of period | 243 | 377 | 243 | 377 | ||||
Valuation Allowance | ||||||||
Balance, beginning of period | (25) | (25) | (23) | (3) | ||||
Decrease (increase) in impairment reserve | [1] | 26 | 7 | 24 | (17) | |||
Balance, end of period | 1 | (18) | 1 | (20) | ||||
Mortgage servicing rights, net | $ 244 | $ 359 | $ 244 | $ 357 | ||||
[1] | (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
PLEDGED ASSETS - Securities and
PLEDGED ASSETS - Securities and loans pledged (Details) - Securities and loans pledged - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Securities available-for-sale (at fair value) | $ 69,795 | $ 63,833 |
Loans receivable (at book value) | 190,868 | 203,145 |
Total pledged assets | $ 260,663 | $ 266,978 |
PLEDGED ASSETS (Details Narrati
PLEDGED ASSETS (Details Narrative) $ in Thousands | Sep. 30, 2017USD ($) |
Guarantees [Abstract] | |
Securities pledged to secure public deposits | $ 64,600 |
Securities pledged to secure repurchase agreements | 5,100 |
Securities pledged to secure FHLBB advances | $ 100 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,694 | $ 1,919 | $ 5,180 | $ 5,165 |
Less: Undistributed earnings allocated to participating securities | (16) | (15) | (41) | (41) |
Net income allocated to common stock | 1,678 | 1,904 | 5,139 | 5,124 |
Weighted average common shares issued | 2,785 | 2,758 | 2,777 | 2,754 |
Less: Unvested restricted stock awards | (26) | (21) | (22) | (22) |
Weighted average common shares outstanding used to calculate basic earnings per common share | 2,759 | 2,737 | 2,755 | 2,732 |
Add: Dilutive effect of stock options | 20 | 14 | 19 | 15 |
Weighted average common shares outstanding used to calculate diluted earnings per common share | $ 2,779 | $ 2,751 | $ 2,774 | $ 2,747 |
Earnings per common share (basic) | $ 0.61 | $ 0.70 | $ 1.87 | $ 1.88 |
Earnings per common share (diluted) | $ 0.60 | $ 0.69 | $ 1.85 | $ 1.87 |
SHAREHOLDERS' EQUITY - Actual r
SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Salisbury | |||
Total Capital (to risk-weighted assets) | |||
Actual - Amount | $ 98,246 | $ 96,166 | |
Actual - Ratio | 13.20% | 13.26% | |
For Capital Adequacy - Amount | $ 59,563 | $ 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 | $ 81,576 | $ 79,868 | |
Actual - Ratio | 10.96% | 11.02% | |
For Capital Adequacy - Amount | $ 44,672 | $ 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 | $ 81,576 | $ 79,868 | |
Actual - Ratio | 10.96% | 11.02% | |
For Capital Adequacy - Amount | $ 33,504 | $ 32,623 | |
For Capital Adequacy - Ratio | 4.50% | 4.50% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | |||
Tier 1 Capital (to average assets) | |||
Actual - Amount | $ 81,576 | $ 79,868 | |
Actual - Ratio | 8.49% | 8.69% | |
For Capital Adequacy - Amount | $ 38,442 | $ 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 | $ 95,078 | |
Actual - Ratio | 12.92% | 12.77% | |
For Capital Adequacy - Amount | $ 57,996 | $ 59,578 | |
For Capital Adequacy - Ratio | 8.00% | 8.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 72,495 | $ 74,473 | |
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 | $ 88,408 | |
Actual - Ratio | 12.05% | 11.87% | |
For Capital Adequacy - Amount | $ 43,497 | $ 44,684 | |
For Capital Adequacy - Ratio | 6.00% | 6.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 57,996 | $ 59,578 | |
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 | $ 88,408 | |
Actual - Ratio | 12.05% | 11.87% | |
For Capital Adequacy - Amount | $ 32,623 | $ 33,513 | |
For Capital Adequacy - Ratio | 4.50% | 4.50% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 47,122 | $ 48,407 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.50% | 6.50% | |
Tier 1 Capital (to average assets) | |||
Actual - Amount | $ 87,392 | $ 88,408 | |
Actual - Ratio | 9.51% | 9.20% | |
For Capital Adequacy - Amount | $ 37,762 | $ 38,442 | |
For Capital Adequacy - Ratio | 4.00% | 4.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 45,953 | $ 48,052 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
BENEFITS - Pre-tax expense asso
BENEFITS - Pre-tax expense associated with stock options and restricted stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Total stock based compensation expense | $ 74 | $ 57 | $ 194 | $ 164 |
Pre-tax expense associated with stock options and restricted stock awards as well as related recognized tax benefits | ||||
Stock Options | ||||
Restricted stock awards | 74 | 57 | 200 | 142 |
Total stock based compensation expense | 74 | 57 | 196 | 142 |
Related tax benefits recognized in earnings | $ 25 | $ 19 | $ 68 | $ 48 |
BENEFITS (Details Narrative)
BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Aug. 23, 2017 | May 26, 2017 | 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 | |
Retirement Benefits [Abstract] | |||||||||||||||
401(k) Plan contribution expense | $ 210 | $ 179 | $ 681 | $ 568 | |||||||||||
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements | 53 | 19 | 88 | 56 | |||||||||||
Employee Stock Ownership Plan (ESOP) | |||||||||||||||
ESOP expense | 34 | 51 | 83 | 132 | |||||||||||
Other Retirement Plans | |||||||||||||||
Expenses related to discretionary contribution to Executives' account | 89 | 56 | 165 | 168 | |||||||||||
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 LTIP | 850 | 200 | 10,750 | 15,800 | |||||||||||
Fair value of the stock as of the grant date, LTIP | $ 36 | $ 8 | $ 419 | $ 466 | |||||||||||
Stock granted to directors as a component of annual compensation | 2,024 | 2,056 | |||||||||||||
Fair value of the stock as of the grant date, component of annual compensation | $ 83 | $ 80 | |||||||||||||
Expense related to grants of restricted stock and options | $ 74 | 57 | $ 194 | 164 | |||||||||||
Total shares of common stock available under 2017 LTIP | 200,000 | 200,000 | |||||||||||||
Unrecognized compensation cost relating to awards | $ 660 | $ 431 | $ 660 | $ 431 | |||||||||||
Forfeiture of restricted common stock, shares | (200) | (100) | |||||||||||||
Excess tax benefit not included in pre-tax expense associated with stock options and restricted stock awards | $ 105 | $ 105 |
FAIR VALUE OF ASSETS AND LIAB50
FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets at fair value | ||
Assets at fair value on a recurring basis | ||
Municipal bonds | $ 4,641 | $ 15,996 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 49,757 | 53,301 |
Collateralized mortgage obligations: U.S. Government agencies | 10,841 | 1,474 |
Collateralized mortgage obligations: Non-agency | 2,868 | 3,735 |
SBA bonds | 12,816 | 2,064 |
CRA mutual funds | 840 | 818 |
Corporate bonds | 3,557 | 2,013 |
Preferred stock | 188 | 222 |
Securities available-for-sale | 85,508 | 79,623 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | 5,064 | 5,256 |
Other real estate owned | 3,944 | 3,773 |
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 | 840 | 818 |
Corporate bonds | ||
Preferred stock | 188 | 222 |
Securities available-for-sale | 1,028 | 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 | 4,641 | 15,996 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 49,757 | 53,301 |
Collateralized mortgage obligations: U.S. Government agencies | 10,841 | 1,474 |
Collateralized mortgage obligations: Non-agency | 2,868 | 3,735 |
SBA bonds | 12,816 | 2,064 |
CRA mutual funds | ||
Corporate bonds | 3,557 | 2,013 |
Preferred stock | ||
Securities available-for-sale | 84,480 | 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 | 5,064 | 5,256 |
Other real estate owned | $ 3,944 | $ 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 | Sep. 30, 2017 | Dec. 31, 2016 |
Carrying value | ||
Financial Assets | ||
Cash and cash equivalents | $ 49,403 | $ 35,485 |
Securities available-for-sale | 85,508 | 79,623 |
Federal Home Loan Bank stock | 3,038 | 3,211 |
Loans held-for-sale | 561 | |
Loans receivable, net | 784,136 | 763,184 |
Accrued interest receivable | 2,520 | 2,424 |
Cash surrender value of life insurance | 14,297 | 14,038 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 225,496 | 218,420 |
Demand (interest-bearing) | 139,521 | 127,854 |
Money market | 196,745 | 182,476 |
Savings and other | 152,570 | 135,435 |
Certificates of deposit | 117,657 | 117,585 |
Deposits | 831,989 | 781,770 |
Repurchase agreements | 4,529 | 5,535 |
FHLBB advances | 27,364 | 37,188 |
Subordinated debt | 9,805 | 9,788 |
Note payable | 321 | 344 |
Capital lease liability | 1,859 | 418 |
Accrued interest payable | 246 | 89 |
Estimated fair value | ||
Financial Assets | ||
Cash and cash equivalents | 49,403 | 35,485 |
Securities available-for-sale | 85,508 | 79,623 |
Federal Home Loan Bank stock | 3,038 | 3,211 |
Loans held-for-sale | 561 | |
Loans receivable, net | 798,367 | 774,442 |
Accrued interest receivable | 2,520 | 2,424 |
Cash surrender value of life insurance | 14,297 | 14,038 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 225,496 | 218,420 |
Demand (interest-bearing) | 139,521 | 127,854 |
Money market | 196,745 | 182,476 |
Savings and other | 152,570 | 135,435 |
Certificates of deposit | 118,642 | 118,610 |
Deposits | 833,439 | 782,795 |
Repurchase agreements | 4,529 | 5,535 |
FHLBB advances | 28,212 | 38,440 |
Subordinated debt | 10,394 | 10,378 |
Note payable | 351 | 377 |
Capital lease liability | 2,249 | 841 |
Accrued interest payable | 246 | 89 |
Fair Value Measurements Using - Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 49,403 | 35,485 |
Securities available-for-sale | 1,028 | 1,040 |
Federal Home Loan Bank stock | ||
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance | 14,297 | 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 | 84,480 | 78,583 |
Federal Home Loan Bank stock | 3,038 | 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 | ||
Loans held-for-sale | 561 | |
Loans receivable, net | 798,367 | 774,442 |
Accrued interest receivable | 2,520 | 2,424 |
Cash surrender value of life insurance | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | 225,496 | 218,420 |
Demand (interest-bearing) | 139,521 | 127,854 |
Money market | 196,745 | 182,476 |
Savings and other | 152,570 | 135,435 |
Certificates of deposit | 119,642 | 118,610 |
Deposits | 833,439 | 782,795 |
Repurchase agreements | 4,529 | 5,535 |
FHLBB advances | 28,212 | 38,440 |
Subordinated debt | 10,394 | 10,378 |
Note payable | 351 | 377 |
Capital lease liability | 2,249 | 841 |
Accrued interest payable | $ 246 | $ 89 |