Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 08, 2018 | |
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, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | false | |
Elected Not To Use the Extended Transition Period | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 2,804,881 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 5,860 | $ 9,357 |
Interest bearing demand deposits with other banks | 36,360 | 39,129 |
Total cash and cash equivalents | 42,220 | 48,486 |
Securities | ||
Available-for-sale at fair value | 95,780 | 78,212 |
CRA mutual fund | 823 | 835 |
Federal Home Loan Bank of Boston stock at cost | 4,988 | 3,813 |
Loans held-for-sale | 589 | 669 |
Loans receivable, net (allowance for loan losses: $7,745 and $6,776) | 898,625 | 801,703 |
Other real estate owned | 340 | 719 |
Bank premises and equipment, net | 18,494 | 16,401 |
Goodwill | 13,815 | 13,815 |
Intangible assets (net of accumulated amortization: $4,390 and $4,043) | 1,490 | 1,837 |
Accrued interest receivable | 3,317 | 2,665 |
Cash surrender value of life insurance policies | 14,627 | 14,381 |
Deferred taxes | 1,454 | 677 |
Other assets | 2,153 | 2,771 |
Total Assets | 1,098,715 | 986,984 |
Deposits | ||
Demand (non-interest bearing) | 233,935 | 220,536 |
Demand (interest bearing) | 151,830 | 142,575 |
Money market | 202,308 | 190,953 |
Savings and other | 176,415 | 144,600 |
Certificates of deposit | 137,673 | 116,831 |
Total deposits | 902,161 | 815,495 |
Repurchase agreements | 6,658 | 1,668 |
Federal Home Loan Bank of Boston advances | 67,596 | 54,422 |
Subordinated debt | 9,829 | 9,811 |
Note payable | 289 | 313 |
Capital lease liability | 3,114 | 1,835 |
Accrued interest and other liabilities | 8,301 | 5,926 |
Total Liabilities | 997,948 | 889,470 |
Shareholders' Equity | ||
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,885,788 and 2,872,578; Outstanding: 2,804,881 and 2,785,216 | 280 | 279 |
Unearned compensation - restricted stock awards | (857) | (606) |
Paid-in capital | 43,757 | 42,998 |
Retained earnings | 58,561 | 54,664 |
Accumulated other comprehensive (loss) income, net | (974) | 179 |
Total Shareholders' Equity | 100,767 | 97,514 |
Total Liabilities and Shareholders' Equity | $ 1,098,715 | $ 986,984 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Allowance for loan losses, loans receivable | $ 7,745 | $ 6,776 |
Accumulated amortization, intangible assets | $ 4,390 | $ 4,043 |
Shareholders' Equity | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 5,000,000 | 5,000,000 |
Common stock, issued | 2,885,788 | 2,872,578 |
Common stock, outstanding | 2,804,881 | 2,785,216 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 9,570 | $ 8,196 | $ 27,226 | $ 24,544 |
Interest on debt securities | ||||
Taxable | 596 | 443 | 1,588 | 1,115 |
Tax exempt | 28 | 68 | 89 | 345 |
Other interest and dividends | 322 | 175 | 662 | 351 |
Total interest and dividend income | 10,516 | 8,882 | 29,565 | 26,355 |
Interest expense | ||||
Deposits | 1,323 | 682 | 3,098 | 1,776 |
Repurchase agreements | 4 | 2 | 6 | 4 |
Capital lease | 48 | 29 | 130 | 66 |
Note payable | 4 | 6 | 14 | 13 |
Subordinated debt | 156 | 156 | 468 | 468 |
Federal Home Loan Bank of Boston advances | 481 | 241 | 1,314 | 769 |
Total interest expense | 2,016 | 1,116 | 5,030 | 3,096 |
Net interest and dividend income | 8,500 | 7,766 | 24,535 | 23,259 |
Provision for loan losses | 378 | 237 | 1,171 | 953 |
Net interest and dividend income after provision for loan losses | 8,122 | 7,529 | 23,364 | 22,306 |
Non-interest income | ||||
Trust and wealth advisory | 936 | 874 | 2,779 | 2,620 |
Service charges and fees | 932 | 935 | 2,693 | 2,799 |
Gains on sales of mortgage loans, net | 21 | 25 | 38 | 104 |
Mortgage servicing, net | 84 | 104 | 251 | 180 |
Losses on CRA mutual fund | (6) | (26) | ||
Gain (losses) on available-for-sale securities, net | 16 | (14) | ||
Other | 121 | 142 | 370 | 365 |
Total non-interest income | 2,088 | 2,080 | 6,121 | 6,054 |
Non-interest expense | ||||
Salaries | 3,078 | 2,829 | 8,864 | 8,266 |
Employee benefits | 1,065 | 1,004 | 3,192 | 2,923 |
Premises and equipment | 1,036 | 995 | 3,161 | 2,797 |
Data processing | 519 | 545 | 1,561 | 1,521 |
Professional fees | 496 | 481 | 1,725 | 1,962 |
OREO gains, (losses) and (write-downs) | 38 | 218 | 91 | 362 |
Collections and other real estate owned | 116 | 201 | 432 | 513 |
FDIC insurance | 141 | 106 | 394 | 354 |
Marketing and community support | 167 | 220 | 630 | 623 |
Amortization of intangibles | 111 | 142 | 347 | 395 |
Other | 562 | 479 | 1,528 | 1,561 |
Total non-interest expense | 7,329 | 7,220 | 21,925 | 21,277 |
Income before income taxes | 2,881 | 2,389 | 7,560 | 7,083 |
Income tax provision | 537 | 695 | 1,301 | 1,903 |
Net income | 2,344 | 1,694 | 6,259 | 5,180 |
Net income available to common stock | $ 2,311 | $ 1,678 | $ 6,186 | $ 5,139 |
Basic earnings per common share | $ 0.84 | $ 0.61 | $ 2.24 | $ 1.87 |
Weighted average common shares outstanding, to calculate basic earnings per share | 2,764 | 2,759 | 2,762 | 2,755 |
Diluted earnings per common share | $ 0.83 | $ 0.60 | $ 2.23 | $ 1.85 |
Weighted average common shares outstanding, to calculate diluted earnings per share | 2,779 | 2,779 | 2,780 | 2,774 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net income | $ 2,344 | $ 1,694 | $ 6,259 | $ 5,180 |
Other comprehensive (loss) income | ||||
Net unrealized (losses) gains on securities available-for-sale | (162) | (16) | (1,475) | 106 |
Reclassification of net realized losses (gains) and write-downs in net income | (16) | 14 | ||
Unrealized (losses) gains on securities available-for-sale | (162) | (16) | (1,491) | 120 |
Income tax benefit (expense) | 34 | 5 | 322 | (41) |
Other comprehensive (loss) income | (128) | (11) | (1,169) | 79 |
Comprehensive income | $ 2,216 | $ 1,683 | $ 5,090 | $ 5,259 |
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, 2016 | $ 276 | $ 42,085 | $ 51,521 | $ (352) | $ 477 | $ 94,007 |
Balance - Beginning, shares at Dec. 31, 2016 | 2,758,086 | |||||
Net income | 5,180 | 5,180 | ||||
Other comprehensive loss, 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 | 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 | |||||
Balance - Beginning, amount at Dec. 31, 2017 | $ 279 | 42,998 | 54,664 | (606) | 179 | $ 97,514 |
Balance - Beginning, shares at Dec. 31, 2017 | 2,785,216 | 2,785,216 | ||||
Net income | 6,259 | $ 6,259 | ||||
Adoption of new accounting principle | (16) | 16 | ||||
Other comprehensive loss, net of tax | (1,169) | (1,169) | ||||
Common stock dividends declared | (2,346) | (2,346) | ||||
Stock options exercised, amount | 175 | $ 175 | ||||
Stock options exercised, shares | 6,455 | 3,350 | ||||
Issuance of restricted stock, amount | $ 1 | 409 | (410) | |||
Issuance of restricted stock, shares | 9,250 | |||||
Issuance of director's restricted stock awards, amount | 175 | (175) | ||||
Issuance of director's restricted stock awards, shares | 3,960 | |||||
Stock based compensation - restricted stock awards | 334 | 334 | ||||
Balance - Ending, amount at Sep. 30, 2018 | $ 280 | $ 43,757 | $ 58,561 | $ (857) | $ (974) | $ 100,767 |
Balance - Ending, shares at Sep. 30, 2018 | 2,804,881 | 2,804,881 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activities | ||
Net income | $ 6,259 | $ 5,180 |
(Accretion), amortization and depreciation: | ||
Securities | 32 | 116 |
Bank premises and equipment | 1,249 | 979 |
Core deposit intangible | 347 | 395 |
Modification fees on Federal Home Loan Bank of Boston advances | 174 | 176 |
Subordinated debt issuance costs | 18 | 17 |
Mortgage servicing rights | 34 | 149 |
Fair value adjustment on loans | (658) | (969) |
Fair value adjustment on deposits | (30) | (64) |
(Gains) and losses, including write-downs | ||
Sales and calls of securities available-for-sale, net | (16) | 14 |
CRA mutual fund | 26 | |
Sales of loans, excluding capitalized servicing rights | (28) | (79) |
Other real estate owned | 91 | 395 |
Sales/disposals of premises and equipment | 1 | 1 |
Provision for loan losses | 1,171 | 953 |
Proceeds from loans sold | 1,946 | 4,495 |
Loans originated for sale | (1,838) | (4,977) |
Increase in deferred loan origination fees and costs, net | (179) | (38) |
Mortgage servicing rights originated | (18) | (53) |
(Decrease) increase in mortgage servicing rights impairment reserve | (24) | |
Increase in interest receivable | (647) | (84) |
Deferred tax benefit | (471) | |
Increase in prepaid expenses | (167) | (59) |
Increase in cash surrender value of life insurance policies | (246) | (259) |
Decrease in income tax receivable | 839 | 43 |
(Increase) decrease in other assets | (48) | 920 |
Increase (decrease) in accrued expenses | 496 | (384) |
Increase in interest payable | 283 | 157 |
Increase (decrease) in other liabilities | 1,596 | (16) |
Stock based compensation - restricted stock awards | 334 | 200 |
Net cash provided by operating activities | 10,550 | 7,184 |
Investing Activities | ||
(Purchases) redemption of Federal Home Loan Bank of Boston stock, net of redemptions | (1,175) | 173 |
Purchases of securities available-for-sale | (40,035) | (36,654) |
Proceeds from sales of securities available-for-sale | 8,410 | |
Proceeds from calls of securities available-for-sale | 995 | 11,141 |
Proceeds from maturities of securities available-for-sale | 11,554 | 19,618 |
Reinvestment of CRA mutual fund | (14) | |
Loan originations and principle collections, net | (89,457) | (14,776) |
Recoveries of loans previously charged off | 50 | 232 |
Proceeds from sales of other real estate owned | 288 | 177 |
Capital expenditures | (1,209) | (1,306) |
Cash and cash equivalents (paid) acquired from acquisition | (298) | 22,387 |
Net cash (used by) provided by investing activities | (110,891) | 992 |
Financing Activities | ||
Increase in deposit transaction accounts, net | 57,502 | 18,714 |
Increase in time deposits, net | 20,872 | 136 |
Increase (decrease) in securities sold under agreements to repurchase, net | 4,990 | (1,006) |
Federal Home Loan Bank of Boston advances | 82,000 | |
Principal payments on Federal Home Loan Bank of Boston advances | (69,000) | (10,000) |
Principal payments on note payable | (24) | (23) |
Decrease in capital lease obligation | (94) | (139) |
Proceeds from exercise of stock options | 175 | 312 |
Issuance of shares for directors' fees | 81 | |
Common stock dividends paid | (2,346) | (2,333) |
Net cash provided by financing activities | 94,075 | 5,742 |
Net (decrease) increase in cash and cash equivalents | (6,266) | 13,918 |
Cash and cash equivalents, beginning of period | 48,486 | 35,485 |
Cash and cash equivalents, end of period | 42,220 | 49,403 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 4,585 | 2,810 |
Cash paid for income taxes | 665 | 1,958 |
Non-cash investing and financing activities: | ||
Transfer from loans to other real estate owned | 743 | |
Assets acquired under capital lease | 1,373 | |
Adoption of new accounting principle | 16 | |
Branch Acquisitions | ||
Cash and cash equivalents (paid) acquired | (298) | 22,387 |
Net loans acquired | 7,849 | 7,097 |
Fixed assets acquired (including capital leases) | 761 | 1,605 |
Accrued interest receivable acquired | 5 | 12 |
Other assets acquired | 5 | 20 |
Core deposit intangible | 632 | |
Goodwill | 1,263 | |
Deposits assumed | 8,322 | 31,433 |
Capital lease assumed | 1,580 | |
Other liabilities assumed | $ 3 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2018 | |
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, changes in 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, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The accompanying financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2017 Annual Report on Form 10-K for the year ended December 31, 2017. 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. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Bank completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including trust and asset management fees, deposit related fees, interchange fees, and merchant income. Salisbury’s revenue recognition policies conformed to Topic 606. As a result, no changes were required to be made to prior period financial statements due to the adoption of this ASU and no changes in revenue recognition were required in the three and nine month periods ending September 30, 2018. In January 2016, the FASB issued ASU 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 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Salisbury adopted the provisions of this ASU effective January 1, 2018. Adoption of this ASU did not have a material impact on Salisbury’s financial statements. In accordance with (5) above, Salisbury measured the fair value of its loan portfolio as of September 30, 2018 using an exit price notion (see note 10). 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 does not expect ASU 2016-02 to have a material 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. 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 twelve month period ended December 31, 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. Entities are 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. Salisbury adopted ASU 2016-15 on January 1, 2018. ASU 2016-15 did not 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." This ASU is 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 update provide a screen to determine when a set of inputs, processes, and outputs is not a business. 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 adopted ASU 2017-01 on January 1, 2018. ASU 2017-01 did not impact 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. The FASB is researching whether similar amendments should be considered for other entities, including public business entities. 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 provides 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. Entities should apply the guidance prospectively to an award modified on or after the adoption date. Salisbury adopted ASU 2017-09 on January 1, 2018. ASU 2017-09 did not impact Salisbury’s Consolidated Financial Statements. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value September 30, 2018 Available-for-sale U.S. Government Agency notes $ 4,991 $ — $ 28 $ 4,963 Municipal bonds 5,392 5 7 5,390 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 34,845 21 467 34,399 Collateralized mortgage obligations: U.S. Government agencies 18,255 1 404 17,852 Non-agency 1,423 395 21 1,797 SBA bonds 28,607 — 757 27,850 Corporate bonds 3,500 29 — 3,529 Total securities available-for-sale $ 97,013 $ 451 $ 1,684 $ 95,780 CRA mutual fund $ 823 $ — $ — $ 823 Non-marketable securities Federal Home Loan Bank of Boston stock $ 4,988 $ — $ — $ 4,988 (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value December 31, 2017 Available-for-sale Municipal bonds $ 3,476 $ 11 $ 1 $ 3,486 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 45,983 152 267 45,868 Collateralized mortgage obligations: U.S. Government agencies 10,462 2 87 10,377 Non-agency 2,271 410 17 2,664 SBA bonds 12,278 9 20 12,267 Corporate bonds 3,500 59 9 3,550 Total securities available-for-sale $ 77,970 $ 643 $ 401 $ 78,212 CRA mutual fund $ 835 $ — $ — $ 835 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,813 $ — $ — $ 3,813 (1) Net of other-than-temporary impairment write-downs recognized in earnings. Salisbury sold $8.4 million in securities available-for-sale during the nine month period ended September 30, 2018 realizing a pre-tax gain of $16 thousand and related tax expense of $3 thousand. Salisbury did not sell any available-for-sale securities during the three month period ended September 30, 2018 or the nine month period ended September 30, 2017. 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, 2018 (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 U.S. Government Agency notes $ 4,963 $ 28 $ — $ — $ 4,963 $ 28 Municipal bonds 1,674 7 — — 1,674 7 Mortgage-backed securities 12,694 210 19,584 257 32,278 467 Collateralized mortgage obligations: U.S. Government Agencies 13,546 225 3,949 179 17,495 404 Non-agency 94 4 — — 94 4 SBA bonds 25,346 643 2,428 114 27,774 757 Total -temporarily impaired securities $ 58,317 $ 1,117 $ 25,961 $ 550 $ 84,278 $ 1,667 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency — — 75 17 75 17 Total temporarily impaired and other-than-temporarily impaired securities $ 58,317 $ 1,117 $ 26,036 $ 567 $ 84,343 $ 1,684 December 31, 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 Municipal bonds $ 479 $ 1 $ — $ — $ 479 $ 1 Mortgage-backed securities 15,914 99 17,892 168 33,806 267 Collateralized mortgage obligations U.S. Government Agencies 9,317 87 — — 9,317 87 Non-agency — — 77 3 77 3 SBA bonds 8,519 20 — — 8,519 20 Corporate bonds 1,491 9 — — 1,491 9 Total temporarily impaired securities 35,720 216 17,969 171 53,689 387 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency 101 14 — — 101 14 Total temporarily impaired and other-than-temporarily impaired securities $ 35,821 $ 230 $ 17,969 $ 171 $ 53,790 $ 401 The amortized cost, fair value and tax equivalent yield of securities, by maturity, are as follows: September 30, 2018 (in thousands) Maturity Amortized cost Fair value Yield(1) U.S. Government agency notes After 5 years but within 10 years $ 4,991 $ 4,963 3.59 % Total 4,991 4,963 3.59 Municipal bonds Within 1 year 347 347 2.37 After 1 year but within 5 years 137 137 2.78 After 10 years but within 15 years 4,373 4,374 4.55 After 15 years 535 532 3.35 Total 5,392 5,390 4.29 Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 34,845 34,399 2.43 Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 18,255 17,852 3.00 Non-agency 1,423 1,797 5.36 SBA bonds 28,607 27,850 3.06 Corporate bonds After 5 years but within 10 years 3,500 3,529 5.57 Securities available-for-sale $ 97,013 $ 95,780 3.05 % (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, 2018. U.S. Government agency notes: The contractual cash flows are guaranteed by U.S. government agencies. Two securities had unrealized losses at September 30, 2018, which approximated 0.57% of their amortized cost. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Therefore, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. Municipal bonds: Salisbury regularly monitors and analyzes its municipal bond portfolio for credit quality. Eight securities had unrealized losses at September 30, 2018, which approximated 0.44% of their amortized cost. 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 these debt securities, and concluded that the gross unrealized losses were temporary in nature and does not consider these investments to be other-than temporarily impaired at September 30, 2018. 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. Thirty-four securities had unrealized losses at September 30, 2018, which approximated 1.72% of their amortized cost. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Therefore, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. SBA bonds: The contractual cash flows are guaranteed by the U.S. government. Sixteen securities had unrealized losses at September 30, 2018, which approximated 2.65% of their amortized cost. 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. Management evaluated the impairment status of these debt securities, and concluded that the gross unrealized losses were temporary in nature. Therefore, management does not consider these investments to be other-than temporarily impaired at September 30, 2018. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at September 30, 2018, to assess whether any of the securities were OTTI. Four securities had unrealized losses at September 30, 2018, which approximated 11.20% of its amortized cost. 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 other non-agency CMO securities not to have additional OTTI and all other CMO securities not to be OTTI as of September 30, 2018. It is possible that future loss assumptions could change necessitating Salisbury to recognize future OTTI for further deterioration in credit quality. Salisbury evaluates these securities for strategic fit and depending upon such factor could reduce its position in these securities, although it has no present intention to do so, and it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis. The following table presents activity related to credit losses recognized into earnings on the non-agency CMOs held by Salisbury for which a portion of an OTTI charge was recognized in accumulated other comprehensive income: Nine months ended September 30 (in thousands) 2018 2017 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, 2018. 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, 2018 | |
Receivables [Abstract] | |
LOANS | NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: September 30, 2018 December 31, 2017 (In thousands) Total Loans Total Loans Residential 1-4 family $ 348,218 $ 317,639 Residential 5+ multifamily 30,715 18,108 Construction of residential 1-4 family 13,125 11,197 Home equity lines of credit 34,863 33,771 Residential real estate 426,921 380,715 Commercial 280,640 249,311 Construction of commercial 10,685 9,988 Commercial real estate 291,325 259,299 Farm land 4,222 4,274 Vacant land 8,726 7,883 Real estate secured 731,194 652,171 Commercial and industrial 150,715 132,731 Municipal 18,388 17,494 Consumer 4,605 4,794 Loans receivable, gross 904,902 807,190 Deferred loan origination fees and costs, net 1,468 1,289 Allowance for loan losses (7,745 ) (6,776 ) Loans receivable, net $ 898,625 $ 801,703 Loans held-for-sale Residential 1-4 family $ 589 $ 669 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. Credit Quality Salisbury uses credit risk ratings as part of its determination of the allowance for loan losses. Credit risk ratings categorize loans by common financial and structural characteristics that measure the credit strength of a borrower. The rating model has eight risk rating grades, with each grade corresponding to a progressively greater risk of default. Grades 1 through 4 are pass ratings and 5 through 8 are criticized as defined by the regulatory agencies. Risk ratings are assigned to differentiate risk within the portfolio and are reviewed on an ongoing basis and revised, if needed, to reflect changes in the borrowers' current financial position and outlook, risk profiles and the related collateral and structural positions. Loans rated as "special mention" possess credit deficiencies or potential weaknesses deserving management’s close attention that if left uncorrected may result in deterioration of the repayment prospects for the loans at some future date. Loans rated as "substandard" are loans where the Bank’s position is clearly not protected adequately by borrower current net worth or payment capacity. These loans have well defined weaknesses based on objective evidence and include loans where future losses to the Bank may result if deficiencies are not corrected, and loans where the primary source of repayment such as income is diminished and the Bank must rely on sale of collateral or other secondary sources of collection. Loans rated "doubtful" have the same weaknesses as substandard loans with the added characteristic that the weakness makes collection or liquidation in full, given current facts, conditions, and values, to be highly improbable. The possibility of loss is high, but due to certain important and reasonably specific pending factors, which may work to strengthen the loan, its reclassification as an estimated loss is deferred until its exact status can be determined. Loans classified as "loss" are considered uncollectible and of such little value that continuance as Bank assets is unwarranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this loan even though partial recovery may be made in the future. Management actively reviews and tests its credit risk ratings against actual experience and engages an independent third-party to annually validate its assignment of credit risk ratings. In addition, the Bank’s loan portfolio is examined periodically by its regulatory agencies, the FDIC and the Connecticut Department of Banking. The composition of loans receivable by risk rating grade is as follows: (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2018 Residential 1-4 family $ 337,510 $ 4,330 $ 6,378 $ — $ — $ 348,218 Residential 5+ multifamily 28,925 787 1,003 — — 30,715 Construction of residential 1-4 family 13,125 — — — — 13,125 Home equity lines of credit 34,039 311 513 — — 34,863 Residential real estate 413,599 5,428 7,894 — — 426,921 Commercial 266,678 3,195 10,767 — — 280,640 Construction of commercial 10,324 — 361 — — 10,685 Commercial real estate 277,002 3,195 11,128 — — 291,325 Farm land 3,998 — 224 — — 4,222 Vacant land 8,655 71 — — — 8,726 Real estate secured 703,254 8,694 19,246 — — 731,194 Commercial and industrial 147,897 1,850 968 — — 150,715 Municipal 18,388 — — — — 18,388 Consumer 4,572 33 — — — 4,605 Loans receivable, gross $ 874,111 $ 10,577 $ 20,214 $ — $ — $ 904,902 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2017 Residential 1-4 family $ 307,240 $ 6,452 $ 3,947 $ — $ — $ 317,639 Residential 5+ multifamily 16,129 957 1,022 — — 18,108 Construction of residential 1-4 family 11,197 — — — — 11,197 Home equity lines of credit 32,891 710 170 — — 33,771 Residential real estate 367,457 8,119 5,139 — — 380,715 Commercial 232,492 4,456 12,363 — — 249,311 Construction of commercial 9,622 — 366 — — 9,988 Commercial real estate 242,114 4,456 12,729 — — 259,299 Farm land 4,024 — 250 — — 4,274 Vacant land 7,806 77 — — — 7,883 Real estate secured 621,401 12,652 18,118 — — 652,171 Commercial and industrial 129,219 2,536 976 — — 132,731 Municipal 17,494 — — — — 17,494 Consumer 4,744 50 — — — 4,794 Loans receivable, gross $ 772,858 $ 15,238 $ 19,094 $ — $ — $ 807,190 The composition of loans receivable by delinquency status is as follows: Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual September 30, 2018 Residential 1-4 family $ 344,342 $ 909 $ 32 $ 1,511 $ 1,424 $ 3,876 $ — $ 3,599 Residential 5+ multifamily 29,828 658 — 229 — 887 — 1,003 Construction of residential 1-4 family 13,125 — — — — — — — Home equity lines of credit 34,357 107 40 — 359 506 — 413 Residential real estate 421,652 1,674 72 1,740 1,783 5,269 — 5,015 Commercial 277,924 774 179 — 1,763 2,716 — 2,221 Construction of commercial 10,428 — — — 257 257 — 257 Commercial real estate 288,352 774 179 — 2,020 2,973 — 2,478 Farm land 4,005 217 — — — 217 — 224 Vacant land 8,726 — — — — — — — Real estate secured 722,735 2,665 251 1,740 3,803 8,459 — 7,717 Commercial and industrial 150,176 53 30 96 360 539 96 360 Municipal 18,388 — — — — — — — Consumer 4,584 11 10 — — 21 — — Loans receivable, gross $ 895,883 $ 2,729 $ 291 $ 1,836 $ 4,163 $ 9,019 $ 96 $ 8,077 Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual December 31, 2017 Residential 1-4 family $ 314,798 $ 1,410 $ 165 $ 156 $ 1,110 $ 2,841 $ — $ 2,045 Residential 5+ multifamily 18,108 — — — — — — 151 Construction of residential 1-4 family 11,197 — — — — — — — Home equity lines of credit 33,219 75 477 — — 552 — 66 Residential real estate 377,322 1,485 642 156 1,110 3,393 — 2,262 Commercial 244,869 1,888 758 — 1,796 4,442 — 3,364 Construction of commercial 9,730 — — — 258 258 — 258 Commercial real estate 254,599 1,888 758 — 2,054 4,700 — 3,622 Farm land 4,032 242 — — — 242 — 250 Vacant land 7,883 — — — — — — — Real estate secured 643,836 3,615 1,400 156 3,164 8,335 — 6,134 Commercial and industrial 131,991 131 218 391 — 740 31 470 Municipal 17,494 — — — — — — — Consumer 4,752 34 8 — — 42 — — Loans receivable, gross $ 798,073 $ 3,780 $ 1,626 $ 547 $ 3,164 $ 9,117 $ 31 $ 6,604 There were no troubled debt restructurings in the third quarter of 2018 or 2017. For the nine months ended September 2018, there was one troubled debt restructuring with a loan balance of $686 thousand and for the same period in 2017 there was one loan with a balance of $600 thousand. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Three months ended September 30, 2018 Three months ended September 30, 2017 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,007 $ 201 $ — $ 2 $ 2,210 $ 1,917 $ (1 ) $ (88 ) $ 4 $ 1,832 Residential 5+ multifamily 258 80 — — 338 116 9 — — 125 Construction of residential 1-4 family 82 8 — — 90 71 5 — — 76 Home equity lines of credit 234 21 — — 255 249 21 (5 ) — 265 Residential real estate $ 2,581 $ 310 $ — $ 2 $ 2,893 $ 2,353 $ 34 $ (93 ) $ 4 $ 2,298 Commercial 2,776 211 (26 ) 1 2,962 2,338 78 (190 ) 117 2,343 Construction of commercial 102 12 — — 114 46 25 — — 71 Commercial real estate 2,878 223 (26 ) 1 3,076 2,384 103 (190 ) 117 2,414 Farm land 37 (12 ) — 7 32 23 32 (27 ) — 28 Vacant land 134 (27 ) — — 107 131 19 — — 150 Real estate secured 5,630 494 (26 ) 10 6,108 4,891 188 (310 ) 121 4,890 Commercial and industrial 1,144 (173 ) (2 ) 7 976 1,001 (28 ) (41 ) 7 939 Municipal 29 (11 ) — — 18 18 2 — — 20 Consumer 63 (9 ) (10 ) 7 51 69 12 (17 ) 4 68 Unallocated 515 77 — — 592 514 63 — — 577 Totals $ 7,381 $ 378 $ (38 ) $ 24 $ 7,745 $ 6,493 $ 237 $ (368 ) $ 132 $ 6,494 Nine months ended September 30, 2018 Nine months ended September 30, 2017 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 1,862 $ 355 $ (10 ) $ 3 $ 2,210 $ 1,925 $ 67 $ (167 ) $ 7 $ 1,832 Residential 5+ multifamily 155 183 — — 338 62 63 — — 125 Construction of residential 1-4 family 75 15 — — 90 91 (15 ) — — 76 Home equity lines of credit 236 18 — 1 255 348 (79 ) (5 ) 1 265 Residential real estate $ 2,328 $ 571 $ (10 ) $ 4 $ 2,893 $ 2,426 $ 36 $ (172 ) $ 8 $ 2,298 Commercial 2,547 589 (175 ) 1 2,962 1,919 656 (378 ) 146 2,343 Construction of commercial 80 34 — — 114 38 33 — — 71 Commercial real estate 2,627 623 (175 ) 1 3,076 1,957 689 (378 ) 146 2,414 Farm land 32 (7 ) — 7 32 28 43 (43 ) — 28 Vacant land 131 (24 ) — — 107 170 (20 ) — — 150 Real estate secured 5,118 1,163 (185 ) 12 6,108 4,581 748 (593 ) 154 4,890 Commercial and industrial 984 (14 ) (12 ) 18 976 1,080 (44 ) (162 ) 65 939 Municipal 30 (12 ) — — 18 53 (33 ) — — 20 Consumer 81 5 (55 ) 20 51 76 42 (63 ) 13 68 Unallocated 563 29 — — 592 337 240 — — 577 Totals $ 6,776 $ 1,171 $ (252 ) $ 50 $ 7,745 $ 6,127 $ 953 $ (818 ) $ 232 $ 6,494 The composition of loans receivable and the allowance for loan losses is as follows: (in thousands) Collectively evaluated 1 Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance September 30, 2018 Residential 1-4 family $ 341,775 $ 2,087 $ 6,443 $ 123 $ 348,218 $ 2,210 Residential 5+ multifamily 29,037 338 1,678 — 30,715 338 Construction of residential 1-4 family 13,125 90 — — 13,125 90 Home equity lines of credit 34,402 234 461 21 34,863 255 Residential real estate 418,339 2,749 8,582 144 426,921 2,893 Commercial 275,564 2,808 5,076 154 280,640 2,962 Construction of commercial 10,324 114 361 — 10,685 114 Commercial real estate 285,888 2,922 5,437 154 291,325 3,076 Farm land 3,998 32 224 — 4,222 32 Vacant land 8,534 104 192 3 8,726 107 Real estate secured 716,759 5,807 14,435 301 731,194 6,108 Commercial and industrial 150,210 976 505 — 150,715 976 Municipal 18,388 18 — — 18,388 18 Consumer 4,605 51 — — 4,605 51 Unallocated allowance — 592 — — — 592 Totals $ 889,962 $ 7,444 $ 14,940 $ 301 $ 904,902 $ 7,745 (in thousands) Collectively evaluated 1 Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2017 Residential 1-4 family $ 312,456 $ 1,759 $ 5,183 $ 103 $ 317,639 $ 1,862 Residential 5+ multifamily 16,361 154 1,747 1 18,108 155 Construction of residential 1-4 family 11,197 75 — — 11,197 75 Home equity lines of credit 33,658 235 113 1 33,771 236 Residential real estate 373,672 2,223 7,043 105 380,715 2,328 Commercial 243,602 2,432 5,709 115 249,311 2,547 Construction of commercial 9,622 80 366 — 9,988 80 Commercial real estate 253,224 2,512 6,075 115 259,299 2,627 Farm land 4,024 32 250 — 4,274 32 Vacant land 7,684 129 199 3 7,883 132 Real estate secured 638,604 4,896 13,567 223 652,171 5,119 Commercial and industrial 132,212 952 519 32 132,731 984 Municipal 17,494 30 — — 17,494 30 Consumer 4,794 80 — — 4,794 80 Unallocated allowance — 563 — — — 563 Totals $ 793,104 $ 6,521 $ 14,086 $ 255 $ 807,190 $ 6,776 1 The credit quality segments of loans receivable and the allowance for loan losses are as follows: September 30, 2018 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 880,412 $ 6,671 $ — $ — $ 880,412 $ 6,671 Potential problem loans 1 9,550 181 — — 9,550 181 Impaired loans — — 14,940 301 14,940 301 Unallocated allowance — 592 — — — 592 Totals $ 889,962 $ 7,444 $ 14,940 $ 301 $ 904,902 $ 7,745 December 31, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 783,206 $ 5,619 $ — $ — $ 783,206 $ 5,619 Potential problem loans 1 9,898 339 — — 9,898 339 Impaired loans — — 14,086 255 14,086 255 Unallocated allowance — 563 — — — 563 Totals $ 793,104 $ 6,521 $ 14,086 $ 255 $ 807,190 $ 6,776 1 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, if the loan is collateral dependent. Certain data with respect to loans individually evaluated for impairment is as follows: 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, 2018 Residential $ 2,818 $ 2,864 $ 3,633 $ 123 $ 74 $ 5,303 $ 6,358 $ 3,540 $ 83 Home equity lines of credit 406 437 155 21 2 55 110 61 — Residential real estate 3,224 3,301 3,788 144 76 5,358 6,468 3,601 83 Commercial 2,286 2,304 2,012 154 48 2,790 4,295 3,075 53 Construction of commercial — — 11 — — 361 384 352 5 Farm land — — — — — 224 435 236 — Vacant land 43 43 43 3 2 149 171 152 8 Real estate secured 5,553 5,648 5,854 301 126 8,882 11,753 7,416 149 Commercial and industrial — — 52 — — 505 602 459 3 Consumer — — — — — — 4 — — Totals $ 5,553 $ 5,648 $ 5,906 $ 301 $ 126 $ 9,387 $ 12,359 $ 7,875 $ 152 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 1,894 2,033 2,916 149 59 4,743 6,195 3,438 93 Construction of commercial 110 116 44 — 5 258 272 326 — Farm land — — — — — 980 1,177 982 — Vacant land 44 44 45 3 2 157 181 161 8 Real estate secured 5,351 5,607 6,481 239 147 10,150 12,730 8,685 196 Commercial and industrial 110 110 44 32 2 76 171 110 2 Consumer — — — — — — 6 2 — Totals $ 5,461 $ 5,717 $ 6,525 $ 271 $ 149 $ 10,226 $ 12,907 $ 8,797 $ 198 |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE SERVICING RIGHTS | NOTE 4 - MORTGAGE SERVICING RIGHTS (in thousands) September 30, 2018 December 31, 2017 Residential mortgage loans serviced for others $ 111,957 $ 117,538 Fair value of mortgage servicing rights 1,034 1,010 Changes in mortgage servicing rights are as follows: Three months ended Nine months ended Periods ended September 30, (in thousands) 2018 2017 2018 2017 Mortgage Servicing Rights Balance, beginning of period $ 217 $ 241 $ 233 $ 339 Originated 11 15 18 53 Amortization (1) (11 ) (13 ) (34 ) (149 ) Balance, end of period $ 217 $ 243 $ 217 $ 243 Valuation Allowance Balance, beginning of period $ — $ (25 ) $ — $ (23 ) Decrease (increase) in impairment reserve (1) — 26 — 24 Balance, end of period $ — $ 1 $ — $ 1 Mortgage servicing rights, net $ 217 $ 244 $ 217 $ 244 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
PLEDGED ASSETS
PLEDGED ASSETS | 9 Months Ended |
Sep. 30, 2018 | |
Guarantees [Abstract] | |
PLEDGED ASSETS | NOTE 5 - PLEDGED ASSETS (in thousands) September 30, 2018 December 31, 2017 Securities available-for-sale (at fair value) $ 77,498 $ 67,377 Loans receivable (at book value) 320,953 204,354 Total pledged assets $ 398,451 $ 271,731 At September 30, 2018, securities were pledged as follows: $70.65 million to secure public deposits, $6.80 million to secure repurchase agreements and $0.05 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, 2018 | |
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 ended Nine months ended Periods ended September 30, (in thousands, except per share data) 2018 2017 2018 2017 Net income $ 2,344 $ 1,694 $ 6,259 $ 5,180 Less: Undistributed earnings allocated to participating securities (33 ) (16 ) (73 ) (41 ) Net income allocated to common stock $ 2,311 $ 1,678 $ 6,185 $ 5,139 Weighted average common shares issued 2,804 2,785 2,795 2,777 Less: Unvested restricted stock awards (40 ) (26 ) (33 ) (22 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,764 2,759 2,762 2,755 Add: Dilutive effect of stock options 15 20 18 19 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,779 2,779 2,780 2,774 Earnings per common share (basic) $ 0.84 $ 0.61 $ 2.24 $ 1.87 Earnings per common share (diluted) $ 0.83 $ 0.60 $ 2.23 $ 1.85 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 7 – SHAREHOLDERS’ EQUITY Capital Requirements Salisbury and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional and discretionary actions by the regulators that, if undertaken, could have a direct material effect on Salisbury’s and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Salisbury and the Bank must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Salisbury and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The requirements of the final rules approved by the Federal Reserve Bank (“FRB”) and FDIC, 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, 2018, 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, 2018 Total Capital (to risk-weighted assets) Salisbury $ 104,815 12.26 % $ 68,400 8.0 % n/a — Bank 101,836 11.91 68,400 8.0 $ 85,500 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 86,961 10.17 51,300 6.0 n/a — Bank 93,983 10.99 51,300 6.0 68,400 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 86,961 10.17 38,475 4.5 n/a — Bank 93,983 10.99 38,475 4.5 55,575 6.5 Tier 1 Capital (to average assets) Salisbury 86,961 8.02 43,396 4.0 n/a — Bank 93,983 8.66 43,396 4.0 54,245 5.0 December 31, 2017 Total Capital (to risk-weighted assets) Salisbury $ 98,920 12.94 % $ 61,154 8.0 % n/a — Bank 95,810 12.54 61,130 8.0 $ 76,413 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 82,034 10.73 45,865 6.0 n/a — Bank 88,924 11.64 45,848 6.0 61,130 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 82,034 10.73 34,399 4.5 n/a — Bank 88,924 11.64 34,386 4.5 49,668 6.5 Tier 1 Capital (to average assets) Salisbury 82,034 8.53 38,461 4.0 n/a — Bank 88,924 9.25 38,461 4.0 48,076 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, 2018 | |
Retirement Benefits [Abstract] | |
BENEFITS | NOTE 8 – BENEFITS Salisbury’s 401(k) Plan expense was $240,000 and $210,000, respectively, for the three month periods ended September 30, 2018 and 2017, and $765,000 and $681,000, respectively, for the nine month periods ended September 30, 2018 and 2017. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $19,000 and $53,000, respectively, for the three month periods ended September 30, 2018 and 2017, and $20,000 and $88,000, respectively, for the nine month periods ended September 30, 2018 and 2017. 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 $62,000 and $34,000, respectively, for the three month periods ended September 30, 2018 and 2017, and $188,000 and $83,000, respectively, for the nine month periods ended September 30, 2018 and 2017. Other Retirement Plans A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. Salisbury’s expense for this plan was $28 thousand and $36 thousand, respectively, for the three month periods ended September 30, 2018 and 2017, and $85 thousand and $77 thousand, respectively, for the nine month periods ended September 30, 2018 and 2017. On January 19, 2018, the Compensation Committee granted a total of 53,500 Phantom Stock Appreciation Units pursuant to the 2013 Phantom Stock Appreciation Unit and Long-Term Incentive Plan (the “Plan”), including 20,000 units to three Named Executive Officers. Mr. Cantele received 10,000 units, Mr. Davies received 5,000 units and Mr. Albero received 5,000 units. The units will vest on the third anniversary of the grant date. Salisbury’s expense for all Phantom Stock Appreciation Units was $60 thousand and $53 thousand, respectively, for the three month periods ended September 30, 2018 and 2017, and $180 thousand and $87 thousand, respectively, for the nine month periods ended September 30, 2018 and 2017. Grants of Restricted Stock and Options Restricted stock Restricted stock expense was $105 thousand and $74 thousand, respectively, for the three month periods ended September 30, 2018 and 2017, and $260 thousand and $194 thousand, respectively, for the nine month periods ended September 30, 2018 and 2017. In second quarter 2018, Salisbury granted a total of 13,210 shares of restricted stock to certain employees and Directors pursuant to its 2017 Long Term Incentive Plan. The fair value of the stock at grant date was $585,000. The restricted stock will vest three years from the grant date. Unrecognized compensation cost relating to the awards as of September 30, 2018 and 2017 totaled $857 thousand and $660 thousand, respectively. There were no forfeitures in the third quarter of 2018 or 2017, and year to date for 2018 and 2017 there were 0 and 200 shares forfeited, respectively. Options Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In the first quarter 2018, 1,350 stock options were exercised at $31.11 per share by one former Riverside Bank executive, who is currently a Named Executive Officer of Salisbury. In the second quarter 2018, there were 3,350 stock options exercised at $31.11 by two employees. In the third quarter 2018, there were 1,755 stock options exercised at $16.94 by one former Riverside employee. In the first quarter 2017, 12,150 stock options were exercised at $25.93 by former Riverside Bank executives. No stock options were exercised in the third or second quarters of 2017. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The components of accumulated other comprehensive (loss) income are as follows: (in thousands) September 30, 2018 December 31, 2017 Unrealized (losses) gains on securities available-for-sale, net of tax $ (974 ) $ 179 Accumulated other comprehensive (loss) income, net $ (974 ) $ 179 |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE ASSETS AND LIABILITIES | NOTE 10 – FAIR VALUE OF ASSETS AND LIABILITIES Salisbury uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, other assets are recorded at fair value on a nonrecurring basis, such as loans held for sale, collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. Salisbury adopted ASC 820-10, “Fair Value Measurement - Overall,” which provides a framework for measuring fair value under generally accepted accounting principles. In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value i n 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 may also include 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. Salisbury adopted ASC 2016-01, “Financial Instruments – overall (subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities”, which requires the exit price notion to be used when measuring the fair value of financial instruments for disclosure. Salisbury estimated the fair value of its loan portfolio based on a loan-level assessment that incorporated probabilities of default by loan type and internal risk rating, product-level loss given defaults and prepayment rates as well as discount rates. 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 month period ended September 30, 2018. 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, 2018 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,963 $ — $ 4,963 Municipal bonds — 5,390 — 5,390 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 34,399 — 34,399 Collateralized mortgage obligations: U.S. Government agencies — 17,852 — 17,852 Non-agency — 1,797 — 1,797 SBA bonds — 27,850 — 27,850 Corporate bonds — 3,529 — 3,529 Securities available-for-sale $ — $ 95,780 $ — $ 95,780 CRA mutual funds 823 — — 823 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 6,002 $ 6,002 Other real estate owned $ — $ — $ 340 $ 340 December 31, 2017 Assets at fair value on a recurring basis Municipal bonds $ — $ 3,486 $ — $ 3,486 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 45,868 — 45,868 Collateralized mortgage obligations: U.S. Government agencies — 10,377 — 10,377 Non-agency — 2,664 — 2,664 SBA bonds — 12,267 — 12,267 Corporate bonds — 3,550 — 3,550 Securities available-for-sale $ — $ 78,212 $ — $ 78,212 CRA mutual funds 835 — — 835 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,863 $ 5,863 Other real estate owned $ — $ — $ 719 $ 719 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, 2018 Financial Assets Cash and cash equivalents $ 42,220 $ 42,220 $ 42,220 $ — $ — Securities available-for-sale 95,780 95,780 — 95,780 — CRA mutual fund 823 823 823 — — Federal Home Loan Bank of Boston stock 4,988 4,988 — — 4,988 Loans held-for-sale 589 599 — — 599 Loans receivable, net 1 898,625 873,397 — — 873,397 Accrued interest receivable 3,317 3,317 — — 3,317 Cash surrender value of life insurance policies 14,627 14,627 14,627 — — Financial Liabilities Demand (non-interest-bearing) $ 233,935 $ 233,935 $ — $ — $ 233,935 Demand (interest-bearing) 151,830 151,830 — — 151,830 Money market 202,308 202,308 — — 202,308 Savings and other 176,415 176,415 — — 176,415 Certificates of deposit 137,673 137,648 — — 137,648 Deposits 902,161 902,136 — — 902,136 Repurchase agreements 6,658 6,658 — — 6,658 FHLBB advances 67,596 67,589 — — 67,589 Subordinated debt 9,829 10,063 — — 10,063 Note payable 289 297 — — 297 Capital lease liability 3,114 3,391 — — 3,391 Accrued interest payable 382 382 — — 382 December 31, 2017 Financial Assets Cash and cash equivalents $ 48,486 $ 48,486 $ 48,486 $ — $ — Securities available-for-sale 78,212 78,212 — 78,212 — CRA mutual fund 835 835 835 — — Federal Home Loan Bank of Boston stock 3,813 3,813 — — 3,813 Loans held-for-sale 669 669 — — 669 Loans receivable, net 1 801,703 816,451 — — 816,451 Accrued interest receivable 2,665 2,665 — — 2,665 Cash surrender value of life insurance policies 14,381 14,381 14,381 — — Financial Liabilities Demand (non-interest-bearing) $ 220,536 $ 220,536 $ — $ — $ 220,536 Demand (interest-bearing) 142,575 142,575 — — 142,575 Money market 190,953 190,953 — — 190,953 Savings and other 144,600 144,600 — — 144,600 Certificates of deposit 116,831 115,290 — — 115,290 Deposits 815,495 813,954 — — 813,954 Repurchase agreements 1,668 1,668 — — 1,668 FHLBB advances 54,422 54,918 — — 54,918 Subordinated debt 9,811 10,313 — — 10,313 Note payable 313 341 — — 341 Capital lease liability 1,835 2,161 — — 2,161 Accrued interest payable 99 99 — — 99 1 The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets under the indicated captions or are included in accrued interest and other liabilities. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS On October 26, 2018 the Board of Directors declared a dividend of $0.28 per common share payable on November 30, 2018 to shareholders of record as of November 16, 2018. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Bank completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including trust and asset management fees, deposit related fees, interchange fees, and merchant income. Salisbury’s revenue recognition policies conformed to Topic 606. As a result, no changes were required to be made to prior period financial statements due to the adoption of this ASU and no changes in revenue recognition were required in the three and nine month periods ending September 30, 2018. In January 2016, the FASB issued ASU 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 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Salisbury adopted the provisions of this ASU effective January 1, 2018. Adoption of this ASU did not have a material impact on Salisbury’s financial statements. In accordance with (5) above, Salisbury measured the fair value of its loan portfolio as of September 30, 2018 using an exit price notion (see note 10). 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 does not expect ASU 2016-02 to have a material 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. 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 twelve month period ended December 31, 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. Entities are 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. Salisbury adopted ASU 2016-15 on January 1, 2018. ASU 2016-15 did not 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." This ASU is 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 update provide a screen to determine when a set of inputs, processes, and outputs is not a business. 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 adopted ASU 2017-01 on January 1, 2018. ASU 2017-01 did not impact 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. The FASB is researching whether similar amendments should be considered for other entities, including public business entities. 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 provides 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. Entities should apply the guidance prospectively to an award modified on or after the adoption date. Salisbury adopted ASU 2017-09 on January 1, 2018. ASU 2017-09 did not impact Salisbury’s Consolidated Financial Statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Composition of Securities | (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value September 30, 2018 Available-for-sale U.S. Government Agency notes $ 4,991 $ — $ 28 $ 4,963 Municipal bonds 5,392 5 7 5,390 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 34,845 21 467 34,399 Collateralized mortgage obligations: U.S. Government agencies 18,255 1 404 17,852 Non-agency 1,423 395 21 1,797 SBA bonds 28,607 — 757 27,850 Corporate bonds 3,500 29 — 3,529 Total securities available-for-sale $ 97,013 $ 451 $ 1,684 $ 95,780 CRA mutual fund $ 823 $ — $ — $ 823 Non-marketable securities Federal Home Loan Bank of Boston stock $ 4,988 $ — $ — $ 4,988 (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value December 31, 2017 Available-for-sale Municipal bonds $ 3,476 $ 11 $ 1 $ 3,486 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 45,983 152 267 45,868 Collateralized mortgage obligations: U.S. Government agencies 10,462 2 87 10,377 Non-agency 2,271 410 17 2,664 SBA bonds 12,278 9 20 12,267 Corporate bonds 3,500 59 9 3,550 Total securities available-for-sale $ 77,970 $ 643 $ 401 $ 78,212 CRA mutual fund $ 835 $ — $ — $ 835 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,813 $ — $ — $ 3,813 (1) Net of other-than-temporary impairment write-downs recognized in earnings. |
Aggreggate fair value and gross unrealized loss of securities | September 30, 2018 (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 U.S. Government Agency notes $ 4,963 $ 28 $ — $ — $ 4,963 $ 28 Municipal bonds 1,674 7 — — 1,674 7 Mortgage-backed securities 12,694 210 19,584 257 32,278 467 Collateralized mortgage obligations: U.S. Government Agencies 13,546 225 3,949 179 17,495 404 Non-agency 94 4 — — 94 4 SBA bonds 25,346 643 2,428 114 27,774 757 Total -temporarily impaired securities $ 58,317 $ 1,117 $ 25,961 $ 550 $ 84,278 $ 1,667 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency — — 75 17 75 17 Total temporarily impaired and other-than-temporarily impaired securities $ 58,317 $ 1,117 $ 26,036 $ 567 $ 84,343 $ 1,684 December 31, 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 Municipal bonds $ 479 $ 1 $ — $ — $ 479 $ 1 Mortgage-backed securities 15,914 99 17,892 168 33,806 267 Collateralized mortgage obligations U.S. Government Agencies 9,317 87 — — 9,317 87 Non-agency — — 77 3 77 3 SBA bonds 8,519 20 — — 8,519 20 Corporate bonds 1,491 9 — — 1,491 9 Total temporarily impaired securities 35,720 216 17,969 171 53,689 387 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency 101 14 — — 101 14 Total temporarily impaired and other-than-temporarily impaired securities $ 35,821 $ 230 $ 17,969 $ 171 $ 53,790 $ 401 |
Amortized cost, fair value and tax equivalent yield of securities | September 30, 2018 (in thousands) Maturity Amortized cost Fair value Yield(1) U.S. Government agency notes After 5 years but within 10 years $ 4,991 $ 4,963 3.59 % Total 4,991 4,963 3.59 Municipal bonds Within 1 year 347 347 2.37 After 1 year but within 5 years 137 137 2.78 After 10 years but within 15 years 4,373 4,374 4.55 After 15 years 535 532 3.35 Total 5,392 5,390 4.29 Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 34,845 34,399 2.43 Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 18,255 17,852 3.00 Non-agency 1,423 1,797 5.36 SBA bonds 28,607 27,850 3.06 Corporate bonds After 5 years but within 10 years 3,500 3,529 5.57 Securities available-for-sale $ 97,013 $ 95,780 3.05 % (1) Yield is based on amortized cost. |
Activity related to credit losses recognized into earnings | Nine months ended September 30 (in thousands) 2018 2017 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, 2018 | |
Receivables [Abstract] | |
Composition of loans receivable and loans held-for-sale | September 30, 2018 December 31, 2017 (In thousands) Total Loans Total Loans Residential 1-4 family $ 348,218 $ 317,639 Residential 5+ multifamily 30,715 18,108 Construction of residential 1-4 family 13,125 11,197 Home equity lines of credit 34,863 33,771 Residential real estate 426,921 380,715 Commercial 280,640 249,311 Construction of commercial 10,685 9,988 Commercial real estate 291,325 259,299 Farm land 4,222 4,274 Vacant land 8,726 7,883 Real estate secured 731,194 652,171 Commercial and industrial 150,715 132,731 Municipal 18,388 17,494 Consumer 4,605 4,794 Loans receivable, gross 904,902 807,190 Deferred loan origination fees and costs, net 1,468 1,289 Allowance for loan losses (7,745 ) (6,776 ) Loans receivable, net $ 898,625 $ 801,703 Loans held-for-sale Residential 1-4 family $ 589 $ 669 |
Composition of loans receivable by risk rating grade | (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2018 Residential 1-4 family $ 337,510 $ 4,330 $ 6,378 $ — $ — $ 348,218 Residential 5+ multifamily 28,925 787 1,003 — — 30,715 Construction of residential 1-4 family 13,125 — — — — 13,125 Home equity lines of credit 34,039 311 513 — — 34,863 Residential real estate 413,599 5,428 7,894 — — 426,921 Commercial 266,678 3,195 10,767 — — 280,640 Construction of commercial 10,324 — 361 — — 10,685 Commercial real estate 277,002 3,195 11,128 — — 291,325 Farm land 3,998 — 224 — — 4,222 Vacant land 8,655 71 — — — 8,726 Real estate secured 703,254 8,694 19,246 — — 731,194 Commercial and industrial 147,897 1,850 968 — — 150,715 Municipal 18,388 — — — — 18,388 Consumer 4,572 33 — — — 4,605 Loans receivable, gross $ 874,111 $ 10,577 $ 20,214 $ — $ — $ 904,902 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2017 Residential 1-4 family $ 307,240 $ 6,452 $ 3,947 $ — $ — $ 317,639 Residential 5+ multifamily 16,129 957 1,022 — — 18,108 Construction of residential 1-4 family 11,197 — — — — 11,197 Home equity lines of credit 32,891 710 170 — — 33,771 Residential real estate 367,457 8,119 5,139 — — 380,715 Commercial 232,492 4,456 12,363 — — 249,311 Construction of commercial 9,622 — 366 — — 9,988 Commercial real estate 242,114 4,456 12,729 — — 259,299 Farm land 4,024 — 250 — — 4,274 Vacant land 7,806 77 — — — 7,883 Real estate secured 621,401 12,652 18,118 — — 652,171 Commercial and industrial 129,219 2,536 976 — — 132,731 Municipal 17,494 — — — — 17,494 Consumer 4,744 50 — — — 4,794 Loans receivable, gross $ 772,858 $ 15,238 $ 19,094 $ — $ — $ 807,190 |
Composition of loans receivable by delinquency status | Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual September 30, 2018 Residential 1-4 family $ 344,342 $ 909 $ 32 $ 1,511 $ 1,424 $ 3,876 $ — $ 3,599 Residential 5+ multifamily 29,828 658 — 229 — 887 — 1,003 Construction of residential 1-4 family 13,125 — — — — — — — Home equity lines of credit 34,357 107 40 — 359 506 — 413 Residential real estate 421,652 1,674 72 1,740 1,783 5,269 — 5,015 Commercial 277,924 774 179 — 1,763 2,716 — 2,221 Construction of commercial 10,428 — — — 257 257 — 257 Commercial real estate 288,352 774 179 — 2,020 2,973 — 2,478 Farm land 4,005 217 — — — 217 — 224 Vacant land 8,726 — — — — — — — Real estate secured 722,735 2,665 251 1,740 3,803 8,459 — 7,717 Commercial and industrial 150,176 53 30 96 360 539 96 360 Municipal 18,388 — — — — — — — Consumer 4,584 11 10 — — 21 — — Loans receivable, gross $ 895,883 $ 2,729 $ 291 $ 1,836 $ 4,163 $ 9,019 $ 96 $ 8,077 Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual December 31, 2017 Residential 1-4 family $ 314,798 $ 1,410 $ 165 $ 156 $ 1,110 $ 2,841 $ — $ 2,045 Residential 5+ multifamily 18,108 — — — — — — 151 Construction of residential 1-4 family 11,197 — — — — — — — Home equity lines of credit 33,219 75 477 — — 552 — 66 Residential real estate 377,322 1,485 642 156 1,110 3,393 — 2,262 Commercial 244,869 1,888 758 — 1,796 4,442 — 3,364 Construction of commercial 9,730 — — — 258 258 — 258 Commercial real estate 254,599 1,888 758 — 2,054 4,700 — 3,622 Farm land 4,032 242 — — — 242 — 250 Vacant land 7,883 — — — — — — — Real estate secured 643,836 3,615 1,400 156 3,164 8,335 — 6,134 Commercial and industrial 131,991 131 218 391 — 740 31 470 Municipal 17,494 — — — — — — — Consumer 4,752 34 8 — — 42 — — Loans receivable, gross $ 798,073 $ 3,780 $ 1,626 $ 547 $ 3,164 $ 9,117 $ 31 $ 6,604 |
Changes in allowance for loan losses | Three months ended September 30, 2018 Three months ended September 30, 2017 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,007 $ 201 $ — $ 2 $ 2,210 $ 1,917 $ (1 ) $ (88 ) $ 4 $ 1,832 Residential 5+ multifamily 258 80 — — 338 116 9 — — 125 Construction of residential 1-4 family 82 8 — — 90 71 5 — — 76 Home equity lines of credit 234 21 — — 255 249 21 (5 ) — 265 Residential real estate $ 2,581 $ 310 $ — $ 2 $ 2,893 $ 2,353 $ 34 $ (93 ) $ 4 $ 2,298 Commercial 2,776 211 (26 ) 1 2,962 2,338 78 (190 ) 117 2,343 Construction of commercial 102 12 — — 114 46 25 — — 71 Commercial real estate 2,878 223 (26 ) 1 3,076 2,384 103 (190 ) 117 2,414 Farm land 37 (12 ) — 7 32 23 32 (27 ) — 28 Vacant land 134 (27 ) — — 107 131 19 — — 150 Real estate secured 5,630 494 (26 ) 10 6,108 4,891 188 (310 ) 121 4,890 Commercial and industrial 1,144 (173 ) (2 ) 7 976 1,001 (28 ) (41 ) 7 939 Municipal 29 (11 ) — — 18 18 2 — — 20 Consumer 63 (9 ) (10 ) 7 51 69 12 (17 ) 4 68 Unallocated 515 77 — — 592 514 63 — — 577 Totals $ 7,381 $ 378 $ (38 ) $ 24 $ 7,745 $ 6,493 $ 237 $ (368 ) $ 132 $ 6,494 Nine months ended September 30, 2018 Nine months ended September 30, 2017 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 1,862 $ 355 $ (10 ) $ 3 $ 2,210 $ 1,925 $ 67 $ (167 ) $ 7 $ 1,832 Residential 5+ multifamily 155 183 — — 338 62 63 — — 125 Construction of residential 1-4 family 75 15 — — 90 91 (15 ) — — 76 Home equity lines of credit 236 18 — 1 255 348 (79 ) (5 ) 1 265 Residential real estate $ 2,328 $ 571 $ (10 ) $ 4 $ 2,893 $ 2,426 $ 36 $ (172 ) $ 8 $ 2,298 Commercial 2,547 589 (175 ) 1 2,962 1,919 656 (378 ) 146 2,343 Construction of commercial 80 34 — — 114 38 33 — — 71 Commercial real estate 2,627 623 (175 ) 1 3,076 1,957 689 (378 ) 146 2,414 Farm land 32 (7 ) — 7 32 28 43 (43 ) — 28 Vacant land 131 (24 ) — — 107 170 (20 ) — — 150 Real estate secured 5,118 1,163 (185 ) 12 6,108 4,581 748 (593 ) 154 4,890 Commercial and industrial 984 (14 ) (12 ) 18 976 1,080 (44 ) (162 ) 65 939 Municipal 30 (12 ) — — 18 53 (33 ) — — 20 Consumer 81 5 (55 ) 20 51 76 42 (63 ) 13 68 Unallocated 563 29 — — 592 337 240 — — 577 Totals $ 6,776 $ 1,171 $ (252 ) $ 50 $ 7,745 $ 6,127 $ 953 $ (818 ) $ 232 $ 6,494 |
Composition of loans receivable and allowance for loan losses | (in thousands) Collectively evaluated 1 Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance September 30, 2018 Residential 1-4 family $ 341,775 $ 2,087 $ 6,443 $ 123 $ 348,218 $ 2,210 Residential 5+ multifamily 29,037 338 1,678 — 30,715 338 Construction of residential 1-4 family 13,125 90 — — 13,125 90 Home equity lines of credit 34,402 234 461 21 34,863 255 Residential real estate 418,339 2,749 8,582 144 426,921 2,893 Commercial 275,564 2,808 5,076 154 280,640 2,962 Construction of commercial 10,324 114 361 — 10,685 114 Commercial real estate 285,888 2,922 5,437 154 291,325 3,076 Farm land 3,998 32 224 — 4,222 32 Vacant land 8,534 104 192 3 8,726 107 Real estate secured 716,759 5,807 14,435 301 731,194 6,108 Commercial and industrial 150,210 976 505 — 150,715 976 Municipal 18,388 18 — — 18,388 18 Consumer 4,605 51 — — 4,605 51 Unallocated allowance — 592 — — — 592 Totals $ 889,962 $ 7,444 $ 14,940 $ 301 $ 904,902 $ 7,745 (in thousands) Collectively evaluated 1 Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2017 Residential 1-4 family $ 312,456 $ 1,759 $ 5,183 $ 103 $ 317,639 $ 1,862 Residential 5+ multifamily 16,361 154 1,747 1 18,108 155 Construction of residential 1-4 family 11,197 75 — — 11,197 75 Home equity lines of credit 33,658 235 113 1 33,771 236 Residential real estate 373,672 2,223 7,043 105 380,715 2,328 Commercial 243,602 2,432 5,709 115 249,311 2,547 Construction of commercial 9,622 80 366 — 9,988 80 Commercial real estate 253,224 2,512 6,075 115 259,299 2,627 Farm land 4,024 32 250 — 4,274 32 Vacant land 7,684 129 199 3 7,883 132 Real estate secured 638,604 4,896 13,567 223 652,171 5,119 Commercial and industrial 132,212 952 519 32 132,731 984 Municipal 17,494 30 — — 17,494 30 Consumer 4,794 80 — — 4,794 80 Unallocated allowance — 563 — — — 563 Totals $ 793,104 $ 6,521 $ 14,086 $ 255 $ 807,190 $ 6,776 1 |
Credit quality segments of loans receivable and allowance for loan losses | September 30, 2018 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 880,412 $ 6,671 $ — $ — $ 880,412 $ 6,671 Potential problem loans 1 9,550 181 — — 9,550 181 Impaired loans — — 14,940 301 14,940 301 Unallocated allowance — 592 — — — 592 Totals $ 889,962 $ 7,444 $ 14,940 $ 301 $ 904,902 $ 7,745 December 31, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 783,206 $ 5,619 $ — $ — $ 783,206 $ 5,619 Potential problem loans 1 9,898 339 — — 9,898 339 Impaired loans — — 14,086 255 14,086 255 Unallocated allowance — 563 — — — 563 Totals $ 793,104 $ 6,521 $ 14,086 $ 255 $ 807,190 $ 6,776 1 |
Certain data with respect to loans individually evaluated for impairment | 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, 2018 Residential $ 2,818 $ 2,864 $ 3,633 $ 123 $ 74 $ 5,303 $ 6,358 $ 3,540 $ 83 Home equity lines of credit 406 437 155 21 2 55 110 61 — Residential real estate 3,224 3,301 3,788 144 76 5,358 6,468 3,601 83 Commercial 2,286 2,304 2,012 154 48 2,790 4,295 3,075 53 Construction of commercial — — 11 — — 361 384 352 5 Farm land — — — — — 224 435 236 — Vacant land 43 43 43 3 2 149 171 152 8 Real estate secured 5,553 5,648 5,854 301 126 8,882 11,753 7,416 149 Commercial and industrial — — 52 — — 505 602 459 3 Consumer — — — — — — 4 — — Totals $ 5,553 $ 5,648 $ 5,906 $ 301 $ 126 $ 9,387 $ 12,359 $ 7,875 $ 152 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 1,894 2,033 2,916 149 59 4,743 6,195 3,438 93 Construction of commercial 110 116 44 — 5 258 272 326 — Farm land — — — — — 980 1,177 982 — Vacant land 44 44 45 3 2 157 181 161 8 Real estate secured 5,351 5,607 6,481 239 147 10,150 12,730 8,685 196 Commercial and industrial 110 110 44 32 2 76 171 110 2 Consumer — — — — — — 6 2 — Totals $ 5,461 $ 5,717 $ 6,525 $ 271 $ 149 $ 10,226 $ 12,907 $ 8,797 $ 198 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Balance of loans serviced for others and fair value of mortgage servicing rights | (in thousands) September 30, 2018 December 31, 2017 Residential mortgage loans serviced for others $ 111,957 $ 117,538 Fair value of mortgage servicing rights 1,034 1,010 |
Changes in mortgage servicing rights | Three months ended Nine months ended Periods ended September 30, (in thousands) 2018 2017 2018 2017 Mortgage Servicing Rights Balance, beginning of period $ 217 $ 241 $ 233 $ 339 Originated 11 15 18 53 Amortization (1) (11 ) (13 ) (34 ) (149 ) Balance, end of period $ 217 $ 243 $ 217 $ 243 Valuation Allowance Balance, beginning of period $ — $ (25 ) $ — $ (23 ) Decrease (increase) in impairment reserve (1) — 26 — 24 Balance, end of period $ — $ 1 $ — $ 1 Mortgage servicing rights, net $ 217 $ 244 $ 217 $ 244 (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, 2018 | |
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, 2018 December 31, 2017 Securities available-for-sale (at fair value) $ 77,498 $ 67,377 Loans receivable (at book value) 320,953 204,354 Total pledged assets $ 398,451 $ 271,731 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | Three months ended Nine months ended Periods ended September 30, (in thousands, except per share data) 2018 2017 2018 2017 Net income $ 2,344 $ 1,694 $ 6,259 $ 5,180 Less: Undistributed earnings allocated to participating securities (33 ) (16 ) (73 ) (41 ) Net income allocated to common stock $ 2,311 $ 1,678 $ 6,185 $ 5,139 Weighted average common shares issued 2,804 2,785 2,795 2,777 Less: Unvested restricted stock awards (40 ) (26 ) (33 ) (22 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,764 2,759 2,762 2,755 Add: Dilutive effect of stock options 15 20 18 19 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,779 2,779 2,780 2,774 Earnings per common share (basic) $ 0.84 $ 0.61 $ 2.24 $ 1.87 Earnings per common share (diluted) $ 0.83 $ 0.60 $ 2.23 $ 1.85 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 Total Capital (to risk-weighted assets) Salisbury $ 104,815 12.26 % $ 68,400 8.0 % n/a — Bank 101,836 11.91 68,400 8.0 $ 85,500 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 86,961 10.17 51,300 6.0 n/a — Bank 93,983 10.99 51,300 6.0 68,400 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 86,961 10.17 38,475 4.5 n/a — Bank 93,983 10.99 38,475 4.5 55,575 6.5 Tier 1 Capital (to average assets) Salisbury 86,961 8.02 43,396 4.0 n/a — Bank 93,983 8.66 43,396 4.0 54,245 5.0 December 31, 2017 Total Capital (to risk-weighted assets) Salisbury $ 98,920 12.94 % $ 61,154 8.0 % n/a — Bank 95,810 12.54 61,130 8.0 $ 76,413 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 82,034 10.73 45,865 6.0 n/a — Bank 88,924 11.64 45,848 6.0 61,130 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 82,034 10.73 34,399 4.5 n/a — Bank 88,924 11.64 34,386 4.5 49,668 6.5 Tier 1 Capital (to average assets) Salisbury 82,034 8.53 38,461 4.0 n/a — Bank 88,924 9.25 38,461 4.0 48,076 5.0 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Components of accumulated other comprehensive (loss) income | (in thousands) September 30, 2018 December 31, 2017 Unrealized (losses) gains on securities available-for-sale, net of tax $ (974 ) $ 179 Accumulated other comprehensive (loss) income, net $ (974 ) $ 179 |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,963 $ — $ 4,963 Municipal bonds — 5,390 — 5,390 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 34,399 — 34,399 Collateralized mortgage obligations: U.S. Government agencies — 17,852 — 17,852 Non-agency — 1,797 — 1,797 SBA bonds — 27,850 — 27,850 Corporate bonds — 3,529 — 3,529 Securities available-for-sale $ — $ 95,780 $ — $ 95,780 CRA mutual funds 823 — — 823 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 6,002 $ 6,002 Other real estate owned $ — $ — $ 340 $ 340 December 31, 2017 Assets at fair value on a recurring basis Municipal bonds $ — $ 3,486 $ — $ 3,486 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 45,868 — 45,868 Collateralized mortgage obligations: U.S. Government agencies — 10,377 — 10,377 Non-agency — 2,664 — 2,664 SBA bonds — 12,267 — 12,267 Corporate bonds — 3,550 — 3,550 Securities available-for-sale $ — $ 78,212 $ — $ 78,212 CRA mutual funds 835 — — 835 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,863 $ 5,863 Other real estate owned $ — $ — $ 719 $ 719 |
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, 2018 Financial Assets Cash and cash equivalents $ 42,220 $ 42,220 $ 42,220 $ — $ — Securities available-for-sale 95,780 95,780 — 95,780 — CRA mutual fund 823 823 823 — — Federal Home Loan Bank of Boston stock 4,988 4,988 — — 4,988 Loans held-for-sale 589 599 — — 599 Loans receivable, net 1 898,625 873,397 — — 873,397 Accrued interest receivable 3,317 3,317 — — 3,317 Cash surrender value of life insurance policies 14,627 14,627 14,627 — — Financial Liabilities Demand (non-interest-bearing) $ 233,935 $ 233,935 $ — $ — $ 233,935 Demand (interest-bearing) 151,830 151,830 — — 151,830 Money market 202,308 202,308 — — 202,308 Savings and other 176,415 176,415 — — 176,415 Certificates of deposit 137,673 137,648 — — 137,648 Deposits 902,161 902,136 — — 902,136 Repurchase agreements 6,658 6,658 — — 6,658 FHLBB advances 67,596 67,589 — — 67,589 Subordinated debt 9,829 10,063 — — 10,063 Note payable 289 297 — — 297 Capital lease liability 3,114 3,391 — — 3,391 Accrued interest payable 382 382 — — 382 December 31, 2017 Financial Assets Cash and cash equivalents $ 48,486 $ 48,486 $ 48,486 $ — $ — Securities available-for-sale 78,212 78,212 — 78,212 — CRA mutual fund 835 835 835 — — Federal Home Loan Bank of Boston stock 3,813 3,813 — — 3,813 Loans held-for-sale 669 669 — — 669 Loans receivable, net 1 801,703 816,451 — — 816,451 Accrued interest receivable 2,665 2,665 — — 2,665 Cash surrender value of life insurance policies 14,381 14,381 14,381 — — Financial Liabilities Demand (non-interest-bearing) $ 220,536 $ 220,536 $ — $ — $ 220,536 Demand (interest-bearing) 142,575 142,575 — — 142,575 Money market 190,953 190,953 — — 190,953 Savings and other 144,600 144,600 — — 144,600 Certificates of deposit 116,831 115,290 — — 115,290 Deposits 815,495 813,954 — — 813,954 Repurchase agreements 1,668 1,668 — — 1,668 FHLBB advances 54,422 54,918 — — 54,918 Subordinated debt 9,811 10,313 — — 10,313 Note payable 313 341 — — 341 Capital lease liability 1,835 2,161 — — 2,161 Accrued interest payable 99 99 — — 99 1 |
SECURITIES - Composition of Sec
SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized cost (1) | ||
Available-for-sale | ||
U.S. Government Agency notes | $ 4,991 | |
Municipal bonds | 5,392 | $ 3,476 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 34,845 | 45,983 |
Collateralized mortgage obligations, U.S. Government Agencies | 18,255 | 10,462 |
Collateralized mortgage obligations, Non-agency | 1,423 | 2,271 |
SBA bonds | 28,607 | 12,278 |
Corporate bonds | 3,500 | 3,500 |
Total securities available-for-sale | 97,013 | 77,970 |
CRA mutual funds | 823 | 835 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | 4,988 | 3,813 |
Gross unrealized gains | ||
Available-for-sale | ||
U.S. Government Agency notes | ||
Municipal bonds | 5 | 11 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 21 | 152 |
Collateralized mortgage obligations, U.S. Government Agencies | 1 | 2 |
Collateralized mortgage obligations, Non-agency | 395 | 410 |
SBA bonds | 9 | |
Corporate bonds | 29 | 59 |
Total securities available-for-sale | 451 | 643 |
CRA mutual funds | ||
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Gross unrealized losses | ||
Available-for-sale | ||
U.S. Government Agency notes | 28 | |
Municipal bonds | 7 | 1 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 467 | 267 |
Collateralized mortgage obligations, U.S. Government Agencies | 404 | 87 |
Collateralized mortgage obligations, Non-agency | 21 | 17 |
SBA bonds | 757 | 20 |
Corporate bonds | 9 | |
Total securities available-for-sale | 1,684 | 401 |
CRA mutual funds | ||
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Fair value | ||
Available-for-sale | ||
U.S. Government Agency notes | 4,963 | |
Municipal bonds | 5,390 | 3,486 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 34,399 | 45,868 |
Collateralized mortgage obligations, U.S. Government Agencies | 17,852 | 10,377 |
Collateralized mortgage obligations, Non-agency | 1,797 | 2,664 |
SBA bonds | 27,850 | 12,267 |
Corporate bonds | 3,529 | 3,550 |
Total securities available-for-sale | 95,780 | 78,212 |
CRA mutual funds | 823 | 835 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | $ 4,988 | $ 3,813 |
SECURITIES - Aggreggate fair va
SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Less Than 12 Months, Fair value | ||
Available-for-sale | ||
U.S. Government Agency notes | $ 4,963 | |
Municipal bonds | 1,674 | $ 479 |
Mortgage-backed securities | 12,694 | 15,914 |
Collateralized mortgage obligations, U.S. Government agencies | 13,546 | 9,317 |
Collateralized mortgage obligations, Non-agency | 94 | |
SBA bonds | 25,346 | 8,519 |
Corporate bonds | 1,491 | |
Total temporarily impaired securities | 58,317 | 35,720 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 101 | |
Total temporarily impaired and other-than-temporarily impaired securities | 58,317 | 35,821 |
Less Than 12 Months, Unrealized losses | ||
Available-for-sale | ||
U.S. Government Agency notes | 28 | |
Municipal bonds | 7 | 1 |
Mortgage-backed securities | 210 | 99 |
Collateralized mortgage obligations, U.S. Government agencies | 225 | 87 |
Collateralized mortgage obligations, Non-agency | 4 | |
SBA bonds | 643 | 20 |
Corporate bonds | 9 | |
Total temporarily impaired securities | 1,117 | 216 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 14 | |
Total temporarily impaired and other-than-temporarily impaired securities | 1,117 | 230 |
12 Months or Longer, Fair value | ||
Available-for-sale | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
Mortgage-backed securities | 19,584 | 17,892 |
Collateralized mortgage obligations, U.S. Government agencies | 3,949 | |
Collateralized mortgage obligations, Non-agency | 77 | |
SBA bonds | 2,428 | |
Corporate bonds | ||
Total temporarily impaired securities | 25,961 | 17,969 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 75 | |
Total temporarily impaired and other-than-temporarily impaired securities | 26,036 | 17,969 |
12 Months or Longer, Unrealized losses | ||
Available-for-sale | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
Mortgage-backed securities | 257 | 168 |
Collateralized mortgage obligations, U.S. Government agencies | 179 | |
Collateralized mortgage obligations, Non-agency | 3 | |
SBA bonds | 114 | |
Corporate bonds | ||
Total temporarily impaired securities | 550 | 171 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 17 | |
Total temporarily impaired and other-than-temporarily impaired securities | 567 | 171 |
Total, Fair value | ||
Available-for-sale | ||
U.S. Government Agency notes | 4,963 | |
Municipal bonds | 1,674 | 479 |
Mortgage-backed securities | 32,278 | 33,806 |
Collateralized mortgage obligations, U.S. Government agencies | 17,495 | 9,317 |
Collateralized mortgage obligations, Non-agency | 94 | 77 |
SBA bonds | 27,774 | 8,519 |
Corporate bonds | 1,491 | |
Total temporarily impaired securities | 84,278 | 53,689 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 75 | 101 |
Total temporarily impaired and other-than-temporarily impaired securities | 84,343 | 53,790 |
Total, Unrealized losses | ||
Available-for-sale | ||
U.S. Government Agency notes | 28 | |
Municipal bonds | 7 | 1 |
Mortgage-backed securities | 467 | 267 |
Collateralized mortgage obligations, U.S. Government agencies | 404 | 87 |
Collateralized mortgage obligations, Non-agency | 4 | 3 |
SBA bonds | 757 | 20 |
Corporate bonds | 9 | |
Total temporarily impaired securities | 1,667 | 387 |
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency | 17 | 14 |
Total temporarily impaired and other-than-temporarily impaired securities | $ 1,684 | $ 401 |
SECURITIES - Amortized cost, fa
SECURITIES - Amortized cost, fair value and tax equivalent yield of securities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
U.S. Government agency notes - After 5 years but within 10 years | |
Amortized cost | $ 4,991 |
Fair value | $ 4,963 |
Yield | 3.59% |
U.S. Government agency notes - Total | |
Amortized cost | $ 4,991 |
Fair value | $ 4,963 |
Yield | 3.59% |
Municipal bonds - Within 1 year | |
Amortized cost | $ 347 |
Fair value | $ 347 |
Yield | 2.37% |
Municipal bonds - After 1 year but within 5 years | |
Amortized cost | $ 137 |
Fair value | $ 137 |
Yield | 2.78% |
Municipal bonds - After 10 years but within 15 years | |
Amortized cost | $ 4,373 |
Fair value | $ 4,374 |
Yield | 4.55% |
Municipal bonds - After 15 years | |
Amortized cost | $ 535 |
Fair value | $ 532 |
Yield | 3.35% |
Municipal bonds - Total | |
Amortized cost | $ 5,392 |
Fair value | $ 5,390 |
Yield | 4.29% |
Mortgage-backed securities - U.S. Government agency and U.S. Government-sponsored enterprises | |
Amortized cost | $ 34,845 |
Fair value | $ 34,399 |
Yield | 2.43% |
Collateralized mortgage obligations - U.S. Government agency and U.S. Government-sponsored enterprises | |
Amortized cost | $ 18,255 |
Fair value | $ 17,852 |
Yield | 3.00% |
Collateralized mortgage obligations - Non-agency | |
Amortized cost | $ 1,423 |
Fair value | $ 1,797 |
Yield | 5.36% |
SBA bonds | |
Amortized cost | $ 28,607 |
Fair value | $ 27,850 |
Yield | 3.06% |
Corporate bonds - After 5 years but within 10 years | |
Amortized cost | $ 3,500 |
Fair value | $ 3,529 |
Yield | 5.57% |
Fair value | |
Amortized cost | $ 97,013 |
Fair value | $ 95,780 |
Yield | 3.05% |
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, 2018 | Sep. 30, 2017 | |
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, 2018 | Sep. 30, 2017 | Dec. 31, 2009 | |
Investments, Debt and Equity Securities [Abstract] | |||
Sales of securities available-for-sale | $ 8,410 | ||
Pre-tax gain on sale of securities available-for-sale | 16 | ||
Related tax expense on sale of securities available-for-sale | $ 3 | ||
Recognized losses for deterioration in credit quality | $ 1,128 |
LOANS - Composition of loans re
LOANS - Composition of loans receivable and loans held-for-sale (Details) - Total - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Residential 1-4 family | $ 348,218 | $ 317,639 |
Residential 5+ multifamily | 30,715 | 18,108 |
Construction of residential 1-4 family | 13,125 | 11,197 |
Home equity lines of credit | 34,863 | 33,771 |
Residential real estate | 426,921 | 380,715 |
Commercial | 280,640 | 249,311 |
Construction of commercial | 10,685 | 9,988 |
Commercial real estate | 291,325 | 259,299 |
Farm land | 4,222 | 4,274 |
Vacant land | 8,726 | 7,883 |
Real estate secured | 731,194 | 652,171 |
Commercial and industrial | 150,715 | 132,731 |
Municipal | 18,388 | 17,494 |
Consumer | 4,605 | 4,794 |
Loans receivable, gross | 904,902 | 807,190 |
Deferred loan origination fees and costs, net | 1,468 | 1,289 |
Allowance for loan losses | (7,745) | (6,776) |
Loans receivable, net | 898,625 | 801,703 |
Loans held-for-sale | ||
Residential 1-4 family | $ 589 | $ 669 |
LOANS - Composition of loans _2
LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Pass | ||
Residential 1-4 family | $ 337,510 | $ 307,240 |
Residential 5+ multifamily | 28,925 | 16,129 |
Construction of residential 1-4 family | 13,125 | 11,197 |
Home equity lines of credit | 34,039 | 32,891 |
Residential real estate | 413,599 | 367,457 |
Commercial | 266,678 | 232,492 |
Construction of commercial | 10,324 | 9,622 |
Commercial real estate | 277,002 | 242,114 |
Farm land | 3,998 | 4,024 |
Vacant land | 8,655 | 7,806 |
Real estate secured | 703,254 | 621,401 |
Commercial and industrial | 147,897 | 129,219 |
Municipal | 18,388 | 17,494 |
Consumer | 4,572 | 4,744 |
Loans receivable, gross | 874,111 | 772,858 |
Special mention | ||
Residential 1-4 family | 4,330 | 6,452 |
Residential 5+ multifamily | 787 | 957 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 311 | 710 |
Residential real estate | 5,428 | 8,119 |
Commercial | 3,195 | 4,456 |
Construction of commercial | ||
Commercial real estate | 3,195 | 4,456 |
Farm land | ||
Vacant land | 71 | 77 |
Real estate secured | 8,694 | 12,652 |
Commercial and industrial | 1,850 | 2,536 |
Municipal | ||
Consumer | 33 | 50 |
Loans receivable, gross | 10,577 | 15,238 |
Substandard | ||
Residential 1-4 family | 6,378 | 3,947 |
Residential 5+ multifamily | 1,003 | 1,022 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 513 | 170 |
Residential real estate | 7,894 | 5,139 |
Commercial | 10,767 | 12,363 |
Construction of commercial | 361 | 366 |
Commercial real estate | 11,128 | 12,729 |
Farm land | 224 | 250 |
Vacant land | ||
Real estate secured | 19,246 | 18,118 |
Commercial and industrial | 968 | 976 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 20,214 | 19,094 |
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 | ||
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 | ||
Total | ||
Residential 1-4 family | 348,218 | 317,639 |
Residential 5+ multifamily | 30,715 | 18,108 |
Construction of residential 1-4 family | 13,125 | 11,197 |
Home equity lines of credit | 34,863 | 33,771 |
Residential real estate | 426,921 | 380,715 |
Commercial | 280,640 | 249,311 |
Construction of commercial | 10,685 | 9,988 |
Commercial real estate | 291,325 | 259,299 |
Farm land | 4,222 | 4,274 |
Vacant land | 8,726 | 7,883 |
Real estate secured | 731,194 | 652,171 |
Commercial and industrial | 150,715 | 132,731 |
Municipal | 18,388 | 17,494 |
Consumer | 4,605 | 4,794 |
Loans receivable, gross | $ 904,902 | $ 807,190 |
LOANS - Composition of loans _3
LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current | ||
Residential 1-4 family | $ 344,342 | $ 314,798 |
Residential 5+ multifamily | 29,828 | 18,108 |
Construction of residential 1-4 family | 13,125 | 11,197 |
Home equity lines of credit | 34,357 | 33,219 |
Residential real estate | 421,652 | 377,322 |
Commercial | 277,924 | 244,869 |
Construction of commercial | 10,428 | 9,730 |
Commercial real estate | 288,352 | 254,599 |
Farm land | 4,005 | 4,032 |
Vacant land | 8,726 | 7,883 |
Real estate secured | 722,735 | 643,836 |
Commercial and industrial | 150,176 | 131,991 |
Municipal | 18,388 | 17,494 |
Consumer | 4,584 | 4,752 |
Loans receivable, gross | 895,883 | 798,073 |
Past due 30-59 days | ||
Residential 1-4 family | 909 | 1,410 |
Residential 5+ multifamily | 658 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 107 | 75 |
Residential real estate | 1,674 | 1,485 |
Commercial | 774 | 1,888 |
Construction of commercial | ||
Commercial real estate | 774 | 1,888 |
Farm land | 217 | 242 |
Vacant land | ||
Real estate secured | 2,665 | 3,615 |
Commercial and industrial | 53 | 131 |
Municipal | ||
Consumer | 11 | 34 |
Loans receivable, gross | 2,729 | 3,780 |
Past due 60-89 days | ||
Residential 1-4 family | 32 | 165 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 40 | 477 |
Residential real estate | 72 | 642 |
Commercial | 179 | 758 |
Construction of commercial | ||
Commercial real estate | 179 | 758 |
Farm land | ||
Vacant land | ||
Real estate secured | 251 | 1,400 |
Commercial and industrial | 30 | 218 |
Municipal | ||
Consumer | 10 | 8 |
Loans receivable, gross | 291 | 1,626 |
Past due 90-179 days | ||
Residential 1-4 family | 1,511 | 156 |
Residential 5+ multifamily | 229 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | 1,740 | 156 |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | 1,740 | 156 |
Commercial and industrial | 96 | 391 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 1,836 | 547 |
Past due 180 days and over | ||
Residential 1-4 family | 1,424 | 1,110 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 359 | |
Residential real estate | 1,783 | 1,110 |
Commercial | 1,763 | 1,796 |
Construction of commercial | 257 | 258 |
Commercial real estate | 2,020 | 2,054 |
Farm land | ||
Vacant land | ||
Real estate secured | 3,803 | 3,164 |
Commercial and industrial | 360 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 4,163 | 3,164 |
Past due 30 days and over | ||
Residential 1-4 family | 3,876 | 2,841 |
Residential 5+ multifamily | 887 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 506 | 552 |
Residential real estate | 5,269 | 3,393 |
Commercial | 2,716 | 4,442 |
Construction of commercial | 257 | 258 |
Commercial real estate | 2,973 | 4,700 |
Farm land | 217 | 242 |
Vacant land | ||
Real estate secured | 8,459 | 8,335 |
Commercial and industrial | 539 | 740 |
Municipal | ||
Consumer | 21 | 42 |
Loans receivable, gross | 9,019 | 9,117 |
Past due Accruing 90 days and over | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | ||
Commercial and industrial | 96 | 31 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 96 | 31 |
Non-accrual | ||
Residential 1-4 family | 3,599 | 2,045 |
Residential 5+ multifamily | 1,003 | 151 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 413 | 66 |
Residential real estate | 5,015 | 2,262 |
Commercial | 2,221 | 3,364 |
Construction of commercial | 257 | 258 |
Commercial real estate | 2,478 | 3,622 |
Farm land | 224 | 250 |
Vacant land | ||
Real estate secured | 7,717 | 6,134 |
Commercial and industrial | 360 | 470 |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 8,077 | $ 6,604 |
LOANS - Changes in allowance fo
LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Residential 1-4 family | ||||
Beginning balance | $ 2,007 | $ 1,917 | $ 1,862 | $ 1,925 |
Provision | 201 | (1) | 355 | 67 |
Charge-offs | (88) | (10) | (167) | |
Recoveries | 2 | 4 | 3 | 7 |
Ending balance | 2,210 | 1,832 | 2,210 | 1,832 |
Residential 5+ multifamily | ||||
Beginning balance | 258 | 116 | 155 | 62 |
Provision | 80 | 9 | 183 | 63 |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 338 | 125 | 338 | 125 |
Construction of residential 1-4 family | ||||
Beginning balance | 82 | 71 | 75 | 91 |
Provision | 8 | 5 | 15 | (15) |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 90 | 76 | 90 | 76 |
Home equity lines of credit | ||||
Beginning balance | 234 | 249 | 236 | 348 |
Provision | 21 | 21 | 18 | (79) |
Charge-offs | (5) | (5) | ||
Recoveries | 1 | 1 | ||
Ending balance | 255 | 265 | 255 | 265 |
Residential real estate | ||||
Beginning balance | 2,581 | 2,353 | 2,328 | 2,426 |
Provision | 310 | 34 | 571 | 36 |
Charge-offs | (93) | (10) | (172) | |
Recoveries | 2 | 4 | 4 | 8 |
Ending balance | 2,893 | 2,298 | 2,893 | 2,298 |
Commercial | ||||
Beginning balance | 2,776 | 2,338 | 2,547 | 1,919 |
Provision | 211 | 78 | 589 | 656 |
Charge-offs | (26) | (190) | (175) | (378) |
Recoveries | 1 | 117 | 1 | 146 |
Ending balance | 2,962 | 2,343 | 2,962 | 2,343 |
Construction of commercial | ||||
Beginning balance | 102 | 46 | 80 | 38 |
Provision | 12 | 25 | 34 | 33 |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 114 | 71 | 114 | 71 |
Commercial real estate | ||||
Beginning balance | 2,878 | 2,384 | 2,627 | 1,957 |
Provision | 223 | 103 | 623 | 689 |
Charge-offs | (26) | (190) | (175) | (378) |
Recoveries | 1 | 117 | 1 | 146 |
Ending balance | 3,076 | 2,414 | 3,076 | 2,414 |
Farm land | ||||
Beginning balance | 37 | 23 | 32 | 28 |
Provision | (12) | 32 | (7) | 43 |
Charge-offs | (27) | (43) | ||
Recoveries | 7 | 7 | ||
Ending balance | 32 | 28 | 32 | 28 |
Vacant land | ||||
Beginning balance | 134 | 131 | 131 | 170 |
Provision | (27) | 19 | (24) | (20) |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 107 | 150 | 107 | 150 |
Real estate secured | ||||
Beginning balance | 5,630 | 4,891 | 5,118 | 4,581 |
Provision | 494 | 188 | 1,163 | 748 |
Charge-offs | (26) | (310) | (185) | (593) |
Recoveries | 10 | 121 | 12 | 154 |
Ending balance | 6,108 | 4,890 | 6,108 | 4,890 |
Commercial and industrial | ||||
Beginning balance | 1,144 | 1,001 | 984 | 1,080 |
Provision | (173) | (28) | (14) | (44) |
Charge-offs | (2) | (41) | (12) | (162) |
Recoveries | 7 | 7 | 18 | 65 |
Ending balance | 976 | 939 | 976 | 939 |
Municipal | ||||
Beginning balance | 29 | 18 | 30 | 53 |
Provision | (11) | 2 | (12) | (33) |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 18 | 20 | 18 | 20 |
Consumer | ||||
Beginning balance | 63 | 69 | 81 | 76 |
Provision | (9) | 12 | 5 | 42 |
Charge-offs | (10) | (17) | (55) | (63) |
Recoveries | 7 | 4 | 20 | 13 |
Ending balance | 51 | 68 | 51 | 68 |
Unallocated | ||||
Beginning balance | 515 | 514 | 563 | 337 |
Provision | 77 | 63 | 29 | 240 |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 592 | 577 | 592 | 577 |
Totals | ||||
Beginning balance | 7,381 | 6,493 | 6,776 | 6,127 |
Provision | 378 | 237 | 1,171 | 953 |
Charge-offs | (38) | (368) | (252) | (818) |
Recoveries | 24 | 132 | 50 | 232 |
Ending balance | $ 7,745 | $ 6,494 | $ 7,745 | $ 6,494 |
LOANS - Composition of loans _4
LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Collectively evaluated Loans | ||
Residential 1-4 family | $ 341,775 | $ 312,456 |
Residential 5+ multifamily | 29,037 | 16,361 |
Construction of residential 1-4 family | 13,125 | 11,197 |
Home equity lines credit | 34,402 | 33,658 |
Residential real estate | 418,339 | 373,672 |
Commercial | 275,564 | 243,602 |
Construction of commercial | 10,324 | 9,622 |
Commercial real estate | 285,888 | 253,224 |
Farm land | 3,998 | 4,024 |
Vacant land | 8,534 | 7,684 |
Real estate secured | 716,759 | 638,604 |
Commercial and industrial | 150,210 | 132,212 |
Municipal | 18,388 | 17,494 |
Consumer | 4,605 | 4,794 |
Unallocated allowance | ||
Totals | 889,962 | 793,104 |
Collectively evaluated Allowance | ||
Residential 1-4 family | 2,087 | 1,759 |
Residential 5+ multifamily | 338 | 154 |
Construction of residential 1-4 family | 90 | 75 |
Home equity lines credit | 234 | 235 |
Residential real estate | 2,749 | 2,223 |
Commercial | 2,808 | 2,432 |
Construction of commercial | 114 | 80 |
Commercial real estate | 2,922 | 2,512 |
Farm land | 32 | 32 |
Vacant land | 104 | 129 |
Real estate secured | 5,807 | 4,896 |
Commercial and industrial | 976 | 952 |
Municipal | 18 | 30 |
Consumer | 51 | 80 |
Unallocated allowance | 592 | 563 |
Totals | 7,444 | 6,521 |
Individually evaluated Loans | ||
Residential 1-4 family | 6,443 | 5,183 |
Residential 5+ multifamily | 1,678 | 1,747 |
Construction of residential 1-4 family | ||
Home equity lines credit | 461 | 113 |
Residential real estate | 8,582 | 7,043 |
Commercial | 5,076 | 5,709 |
Construction of commercial | 361 | 366 |
Commercial real estate | 5,437 | 6,075 |
Farm land | 224 | 250 |
Vacant land | 192 | 199 |
Real estate secured | 14,435 | 13,567 |
Commercial and industrial | 505 | 519 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 14,940 | 14,086 |
Individually evaluated Allowance | ||
Residential 1-4 family | 123 | 103 |
Residential 5+ multifamily | 1 | |
Construction of residential 1-4 family | ||
Home equity lines credit | 21 | 1 |
Residential real estate | 144 | 105 |
Commercial | 154 | 115 |
Construction of commercial | ||
Commercial real estate | 154 | 115 |
Farm land | ||
Vacant land | 3 | 3 |
Real estate secured | 301 | 223 |
Commercial and industrial | 32 | |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 301 | 255 |
Total portfolio Loans | ||
Residential 1-4 family | 348,218 | 317,639 |
Residential 5+ multifamily | 30,715 | 18,108 |
Construction of residential 1-4 family | 13,125 | 11,197 |
Home equity lines credit | 34,863 | 33,771 |
Residential real estate | 426,921 | 380,715 |
Commercial | 280,640 | 249,311 |
Construction of commercial | 10,685 | 9,988 |
Commercial real estate | 291,325 | 259,299 |
Farm land | 4,222 | 4,274 |
Vacant land | 8,726 | 7,883 |
Real estate secured | 731,194 | 652,171 |
Commercial and industrial | 150,715 | 132,731 |
Municipal | 18,388 | 17,494 |
Consumer | 4,605 | 4,794 |
Unallocated allowance | ||
Totals | 904,902 | 807,190 |
Total portfolio Allowance | ||
Residential 1-4 family | 2,210 | 1,862 |
Residential 5+ multifamily | 338 | 155 |
Construction of residential 1-4 family | 90 | 75 |
Home equity lines credit | 255 | 236 |
Residential real estate | 2,893 | 2,328 |
Commercial | 2,962 | 2,547 |
Construction of commercial | 114 | 80 |
Commercial real estate | 3,076 | 2,627 |
Farm land | 32 | 32 |
Vacant land | 107 | 132 |
Real estate secured | 6,108 | 5,119 |
Commercial and industrial | 976 | 984 |
Municipal | 18 | 30 |
Consumer | 51 | 80 |
Unallocated allowance | 592 | 563 |
Totals | $ 7,745 | $ 6,776 |
LOANS - Credit quality segments
LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Collectively evaluated Loans | ||
Performing loans | $ 880,412 | $ 783,206 |
Potential problem loans | 9,550 | 9,898 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 889,962 | 793,104 |
Collectively evaluated Allowance | ||
Performing loans | 6,671 | 5,619 |
Potential problem loans | 181 | 339 |
Impaired loans | ||
Unallocated allowance | 592 | 563 |
Totals | 7,444 | 6,521 |
Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 14,940 | 14,086 |
Unallocated allowance | ||
Totals | 14,940 | 14,086 |
Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 301 | 255 |
Unallocated allowance | ||
Totals | 301 | 255 |
Total portfolio Loans | ||
Performing loans | 880,412 | 783,206 |
Potential problem loans | 9,550 | 9,898 |
Impaired loans | 14,940 | 14,086 |
Unallocated allowance | ||
Totals | 904,902 | 807,190 |
Total portfolio Allowance | ||
Performing loans | 6,671 | 5,619 |
Potential problem loans | 181 | 339 |
Impaired loans | 301 | 255 |
Unallocated allowance | 592 | 563 |
Totals | $ 7,745 | $ 6,776 |
LOANS - Certain data with respe
LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Impaired loans with specific allowance - Loan balance - Book | ||
Residential | $ 2,818 | $ 3,256 |
Home equity lines of credit | 406 | 47 |
Residential real estate | 3,224 | 3,303 |
Commercial | 2,286 | 1,894 |
Construction of commercial | 110 | |
Farm land | ||
Vacant land | 43 | 44 |
Real estate secured | 5,553 | 5,351 |
Commercial and industrial | 110 | |
Consumer | ||
Totals | 5,553 | 5,461 |
Impaired loans with specific allowance - Loan balance - Note | ||
Residential | 2,864 | 3,367 |
Home equity lines of credit | 437 | 47 |
Residential real estate | 3,301 | 3,414 |
Commercial | 2,304 | 2,033 |
Construction of commercial | 116 | |
Farm land | ||
Vacant land | 43 | 44 |
Real estate secured | 5,648 | 5,607 |
Commercial and industrial | 110 | |
Consumer | ||
Totals | 5,648 | 5,717 |
Impaired loans with specific allowance - Loan balance - Average | ||
Residential | 3,633 | 3,388 |
Home equity lines of credit | 155 | 88 |
Residential real estate | 3,788 | 3,476 |
Commercial | 2,012 | 2,916 |
Construction of commercial | 11 | 44 |
Farm land | ||
Vacant land | 43 | 45 |
Real estate secured | 5,854 | 6,481 |
Commercial and industrial | 52 | 44 |
Consumer | ||
Totals | 5,906 | 6,525 |
Impaired loans with specific allowance - Specific allowance | ||
Residential | 123 | 86 |
Home equity lines of credit | 21 | 1 |
Residential real estate | 144 | 87 |
Commercial | 154 | 149 |
Construction of commercial | ||
Farm land | ||
Vacant land | 3 | 3 |
Real estate secured | 301 | 239 |
Commercial and industrial | 32 | |
Consumer | ||
Totals | 301 | 271 |
Impaired loans with specific allowance - Income recognized | ||
Residential | 74 | 80 |
Home equity lines of credit | 2 | 1 |
Residential real estate | 76 | 81 |
Commercial | 48 | 59 |
Construction of commercial | 5 | |
Farm land | ||
Vacant land | 2 | 2 |
Real estate secured | 126 | 147 |
Commercial and industrial | 2 | |
Consumer | ||
Totals | 126 | 149 |
Impaired loans with no specific allowance - Loan balance - Book | ||
Residential | 5,303 | 3,803 |
Home equity lines of credit | 55 | 209 |
Residential real estate | 5,358 | 4,012 |
Commercial | 2,790 | 4,743 |
Construction of commercial | 361 | 258 |
Farm land | 224 | 980 |
Vacant land | 149 | 157 |
Real estate secured | 8,882 | 10,150 |
Commercial and industrial | 505 | 76 |
Consumer | ||
Totals | 9,387 | 10,226 |
Impaired loans with no specific allowance - Loan balance - Note | ||
Residential | 6,358 | 4,641 |
Home equity lines of credit | 110 | 264 |
Residential real estate | 6,468 | 4,905 |
Commercial | 4,295 | 6,195 |
Construction of commercial | 384 | 272 |
Farm land | 435 | 1,177 |
Vacant land | 171 | 181 |
Real estate secured | 11,753 | 12,730 |
Commercial and industrial | 602 | 171 |
Consumer | 4 | 6 |
Totals | 12,359 | 12,907 |
Impaired loans with no specific allowance - Loan balance - Average | ||
Residential | 3,540 | 3,605 |
Home equity lines of credit | 61 | 173 |
Residential real estate | 3,601 | 3,778 |
Commercial | 3,075 | 3,438 |
Construction of commercial | 352 | 326 |
Farm land | 236 | 982 |
Vacant land | 152 | 161 |
Real estate secured | 7,416 | 8,685 |
Commercial and industrial | 459 | 110 |
Consumer | 2 | |
Totals | 7,875 | 8,797 |
Impaired loans with no specific allowance - Income recognized | ||
Residential | 83 | 89 |
Home equity lines of credit | 6 | |
Residential real estate | 83 | 95 |
Commercial | 53 | 93 |
Construction of commercial | 5 | |
Farm land | ||
Vacant land | 8 | 8 |
Real estate secured | 149 | 196 |
Commercial and industrial | 3 | 2 |
Consumer | ||
Totals | $ 152 | $ 198 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Loans | |||
CRE loan modified in troubled debt restructurings | $ 686 | $ 600 | |
ASC 310-30 loans | 1,700 | $ 2,400 | |
ASC 310-30 allowance | $ 92 |
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, 2018 | Dec. 31, 2017 | |
Residential mortgage loans serviced for others | $ 111,957 | $ 117,538 |
Fair value of mortgage servicing rights | $ 1,034 | $ 1,010 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Mortgage Servicing Rights | ||||
Balance, beginning of period | $ 217 | $ 241 | $ 233 | $ 339 |
Originated | 11 | 15 | 18 | 53 |
Amortization | (11) | (13) | (34) | (149) |
Balance, end of period | 217 | 243 | 217 | 243 |
Valuation Allowance | ||||
Balance, beginning of period | (25) | (23) | ||
Increase in impairment reserve | 26 | 24 | ||
Balance, end of period | 1 | 1 | ||
Mortgage servicing rights, net | $ 217 | $ 244 | $ 217 | $ 244 |
PLEDGED ASSETS - Securities and
PLEDGED ASSETS - Securities and loans pledged (Details) - Pledged Assets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Securities available-for-sale (at fair value) | $ 77,498 | $ 67,377 |
Loans receivable (at book value) | 320,953 | 204,354 |
Total pledged assets | $ 398,451 | $ 271,731 |
PLEDGED ASSETS (Details Narrati
PLEDGED ASSETS (Details Narrative) $ in Thousands | Sep. 30, 2018USD ($) |
Guarantees [Abstract] | |
Securities pledged to secure public deposits | $ 70,650 |
Securities pledged to secure repurchase agreements | 6,800 |
Securities pledged to secure FHLBB advances | $ 50 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,344 | $ 1,694 | $ 6,259 | $ 5,180 |
Less: Undistributed earnings allocated to participating securities | (33) | (16) | (73) | (41) |
Net income allocated to common stock | 2,311 | 1,678 | 6,186 | 5,139 |
Weighted average common shares issued | 2,804 | 2,785 | 2,795 | 2,777 |
Less: Unvested restricted stock awards | (40) | (26) | (33) | (22) |
Weighted average common shares outstanding used to calculate basic earnings per common share | 2,764 | 2,759 | 2,762 | 2,755 |
Add: Dilutive effect of stock options | 15 | 20 | 18 | 19 |
Weighted average common shares outstanding used to calculate diluted earnings per common share | $ 2,779 | $ 2,779 | $ 2,780 | $ 2,774 |
Earnings per common share (basic) | $ 0.84 | $ 0.61 | $ 2.24 | $ 1.87 |
Earnings per common share (diluted) | $ 0.83 | $ 0.60 | $ 2.23 | $ 1.85 |
SHAREHOLDERS' EQUITY - Actual r
SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Salisbury | ||
Total Capital (to risk-weighted assets) | ||
Actual - Amount | $ 104,815 | $ 98,920 |
Actual - Ratio | 12.26% | 12.94% |
For Capital Adequacy - Amount | $ 68,400 | $ 61,154 |
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 | $ 86,961 | $ 82,034 |
Actual - Ratio | 10.17% | 10.73% |
For Capital Adequacy - Amount | $ 51,300 | $ 45,865 |
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 | $ 86,961 | $ 82,034 |
Actual - Ratio | 10.17% | 10.73% |
For Capital Adequacy - Amount | $ 38,475 | $ 34,399 |
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 | $ 86,961 | $ 83,034 |
Actual - Ratio | 8.02% | 8.53% |
For Capital Adequacy - Amount | $ 43,396 | $ 38,461 |
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 | $ 101,836 | $ 95,810 |
Actual - Ratio | 11.91% | 12.54% |
For Capital Adequacy - Amount | $ 68,400 | $ 61,130 |
For Capital Adequacy - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 85,500 | $ 76,413 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets) | ||
Actual - Amount | $ 93,983 | $ 88,924 |
Actual - Ratio | 10.99% | 11.64% |
For Capital Adequacy - Amount | $ 51,300 | $ 45,848 |
For Capital Adequacy - Ratio | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 68,400 | $ 61,130 |
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 | $ 93,983 | $ 88,924 |
Actual - Ratio | 10.99% | 11.64% |
For Capital Adequacy - Amount | $ 38,475 | $ 34,386 |
For Capital Adequacy - Ratio | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 55,575 | $ 49,668 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.50% | 6.50% |
Tier 1 Capital (to average assets) | ||
Actual - Amount | $ 93,983 | $ 88,924 |
Actual - Ratio | 8.66% | 9.25% |
For Capital Adequacy - Amount | $ 43,396 | $ 38,461 |
For Capital Adequacy - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 54,245 | $ 48,076 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
BENEFITS (Details Narrative)
BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 19, 2018 | |
Retirement Benefits [Abstract] | ||||||||
401(k) Plan contribution expense | $ 240 | $ 210 | $ 765 | $ 681 | ||||
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements | 19 | 53 | 20 | 88 | ||||
Employee Stock Ownership Plan (ESOP) | ||||||||
ESOP expense | 62 | 34 | 188 | 83 | ||||
Other Retirement Plans | ||||||||
Expenses for Non-Qualified Deferred Compensation Plan | 28 | 36 | 85 | 77 | ||||
Grants of Phantom Stock Appreciation Units pursuant to the Plan | 53,500 | |||||||
Expense for Phantom Stock Appreciation Units | $ 60 | 53 | $ 180 | $ 87 | ||||
Grants of Restricted Stock and Options | ||||||||
Stock options exercised by former Riverside Bank executives, shares | 11,755 | 3,350 | 1,350 | 12,150 | 3,350 | 12,150 | ||
Stock options exercised by former Riverside Bank executives, price per share | $ 16.94 | $ 31.11 | $ 31.11 | $ 25.93 | $ 31.11 | $ 25.93 | ||
Shares of restricted stock granted pursuant to LTIP | 13,210 | |||||||
Fair value of the stock as of the grant date, LTIP | $ 585 | |||||||
Expense related to stock based compensation | $ 105 | 74 | 260 | $ 194 | ||||
Unrecognized compensation cost relating to awards | $ 857 | $ 600 | $ 857 | $ 600 | ||||
Forfeiture of restricted common stock, shares | (200) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Components of accumulated other comprehensive (loss) income (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Unrealized (losses) gains on securities available-for-sale, net of tax | $ (974) | $ 179 |
Accumulated other comprehensive (loss) income, net | $ (974) | $ 179 |
FAIR VALUE OF ASSETS AND LIAB_3
FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets at fair value | ||
Assets at fair value on a recurring basis | ||
U.S. Government Agency notes | $ 4,963 | |
Municipal bonds | 5,390 | $ 3,486 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 34,399 | 45,868 |
Collateralized mortgage obligations: U.S. Government agencies | 17,852 | 10,377 |
Collateralized mortgage obligations: Non-agency | 1,797 | 2,664 |
SBA bonds | 27,850 | 12,267 |
Corporate bonds | 3,529 | 3,550 |
Securities available-for-sale | 95,780 | 78,212 |
CRA mutual funds | 823 | 835 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | 6,002 | 5,863 |
Other real estate owned | 340 | 719 |
Fair Value Measurements Using - Level 1 | ||
Assets at fair value on a recurring basis | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | ||
Collateralized mortgage obligations: U.S. Government agencies | ||
Collateralized mortgage obligations: Non-agency | ||
SBA bonds | ||
Corporate bonds | ||
Securities available-for-sale | ||
CRA mutual funds | 823 | 835 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | ||
Other real estate owned | ||
Fair Value Measurements Using - Level 2 | ||
Assets at fair value on a recurring basis | ||
U.S. Government Agency notes | 4,963 | |
Municipal bonds | 5,390 | 3,486 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 34,399 | 45,868 |
Collateralized mortgage obligations: U.S. Government agencies | 17,852 | 10,377 |
Collateralized mortgage obligations: Non-agency | 1,797 | 2,664 |
SBA bonds | 27,850 | 12,267 |
Corporate bonds | 3,529 | 3,550 |
Securities available-for-sale | 95,780 | 78,212 |
CRA mutual funds | ||
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | ||
Other real estate owned | ||
Fair Value Measurements Using - Level 3 | ||
Assets at fair value on a recurring basis | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | ||
Collateralized mortgage obligations: U.S. Government agencies | ||
Collateralized mortgage obligations: Non-agency | ||
SBA bonds | ||
Corporate bonds | ||
Securities available-for-sale | ||
CRA mutual funds | ||
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | 6,002 | 5,863 |
Other real estate owned | $ 340 | $ 719 |
FAIR VALUE OF ASSETS AND LIAB_4
FAIR VALUE OF ASSETS AND LIABILITIES - Carrying value and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Carrying value | ||
Financial Assets | ||
Cash and cash equivalents | $ 42,220 | $ 48,486 |
Securities available-for-sale | 95,780 | 78,212 |
CRA mutual fund | 823 | 835 |
Federal Home Loan Bank of Boston stock | 4,988 | 3,813 |
Loans held-for-sale | 589 | 669 |
Loans receivable, net | 898,625 | 801,703 |
Accrued interest receivable | 3,317 | 2,665 |
Cash surrender value of life insurance policies | 14,627 | 14,381 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 233,935 | 220,536 |
Demand (interest-bearing) | 151,830 | 142,575 |
Money market | 202,308 | 190,953 |
Savings and other | 176,415 | 144,600 |
Certificates of deposit | 137,673 | 116,831 |
Deposits | 902,161 | 815,495 |
Repurchase agreements | 6,658 | 1,668 |
FHLBB advances | 67,596 | 54,422 |
Subordinated debt | 9,829 | 9,811 |
Note payable | 289 | 313 |
Capital lease liability | 3,114 | 1,835 |
Accrued interest payable | 382 | 99 |
Estimated fair value | ||
Financial Assets | ||
Cash and cash equivalents | 42,220 | 48,486 |
Securities available-for-sale | 95,780 | 78,212 |
CRA mutual fund | 823 | 835 |
Federal Home Loan Bank of Boston stock | 4,988 | 3,813 |
Loans held-for-sale | 599 | 669 |
Loans receivable, net | 873,397 | 816,451 |
Accrued interest receivable | 3,317 | 2,665 |
Cash surrender value of life insurance policies | 14,627 | 14,381 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 233,935 | 220,536 |
Demand (interest-bearing) | 151,830 | 142,575 |
Money market | 202,308 | 190,953 |
Savings and other | 176,415 | 144,600 |
Certificates of deposit | 137,648 | 115,290 |
Deposits | 902,136 | 813,954 |
Repurchase agreements | 6,658 | 1,668 |
FHLBB advances | 67,589 | 54,918 |
Subordinated debt | 10,063 | 10,313 |
Note payable | 297 | 341 |
Capital lease liability | 3,391 | 2,161 |
Accrued interest payable | 382 | 99 |
Fair Value Measurements Using - Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 42,220 | 48,486 |
Securities available-for-sale | ||
CRA mutual fund | 823 | 835 |
Federal Home Loan Bank of Boston stock | ||
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance policies | 14,627 | 14,381 |
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 | 95,780 | 78,212 |
CRA mutual fund | ||
Federal Home Loan Bank of Boston stock | ||
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance policies | ||
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 | ||
CRA mutual fund | ||
Federal Home Loan Bank of Boston stock | 4,988 | 3,813 |
Loans held-for-sale | 599 | 669 |
Loans receivable, net | 873,397 | 816,451 |
Accrued interest receivable | 3,317 | 2,665 |
Cash surrender value of life insurance policies | ||
Financial Liabilities | ||
Demand (non-interest-bearing) | 233,935 | 220,536 |
Demand (interest-bearing) | 151,830 | 142,575 |
Money market | 202,308 | 190,953 |
Savings and other | 176,415 | 144,600 |
Certificates of deposit | 137,648 | 115,290 |
Deposits | 902,136 | 813,954 |
Repurchase agreements | 6,658 | 1,668 |
FHLBB advances | 67,589 | 54,918 |
Subordinated debt | 10,063 | 10,313 |
Note payable | 297 | 341 |
Capital lease liability | 3,391 | 2,161 |
Accrued interest payable | $ 382 | $ 99 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Oct. 26, 2018$ / shares |
Subsequent Events [Abstract] | |
Dividend declared | $ .28 |