Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 05, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | SALISBURY BANCORP INC | |
Entity Central Index Key | 0001060219 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Entity Incorporation, State or Country Code | CT | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-24751 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Interactive Data Current | Yes | |
Is Entity Emerging Growth Company? | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 2,843,292 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 7,391 | $ 7,406 |
Interest bearing demand deposits with other banks | 77,104 | 19,479 |
Total cash and cash equivalents | 84,495 | 26,885 |
Interest bearing Time Deposits with Financial Institutions | 750 | 750 |
Securities | ||
Available-for-sale at fair value | 89,452 | 91,801 |
CRA mutual fund at fair value | 912 | 882 |
Federal Home Loan Bank of Boston stock at cost | 3,353 | 3,242 |
Loans held-for-sale | 5,313 | 332 |
Loans receivable, net (allowance for loan losses: $12,371 and $8,895) | 1,040,358 | 927,413 |
Other real estate owned | 314 | |
Bank premises and equipment, net | 17,950 | 17,385 |
Goodwill | 13,815 | 13,815 |
Intangible assets (net of accumulated amortization: $5,054 and $4,884) | 825 | 995 |
Accrued interest receivable | 3,988 | 3,415 |
Cash surrender value of life insurance policies | 20,846 | 20,580 |
Deferred taxes | 1,935 | 1,249 |
Other assets | 3,145 | 3,390 |
Total Assets | 1,287,137 | 1,112,448 |
Deposits | ||
Demand (non-interest bearing) | 325,531 | 237,852 |
Demand (interest bearing) | 188,487 | 153,314 |
Money market | 251,242 | 239,504 |
Savings and other | 170,537 | 161,112 |
Certificates of deposit | 149,802 | 127,724 |
Total deposits | 1,085,599 | 919,506 |
Repurchase agreements | 7,809 | 8,530 |
Federal Home Loan Bank of Boston advances | 55,118 | 50,887 |
Subordinated debt | 9,871 | 9,859 |
Note payable | 228 | 246 |
Finance lease obligations | 1,696 | 1,718 |
Accrued interest and other liabilities | 8,372 | 8,047 |
Total Liabilities | 1,168,693 | 998,793 |
Shareholders' Equity | ||
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,843,292 and 2,825,912; Outstanding: 2,843,292 and 2,825,912 | 284 | 283 |
Unearned compensation - restricted stock awards | (1,031) | (795) |
Paid-in capital | 45,096 | 44,490 |
Retained earnings | 71,461 | 68,320 |
Accumulated other comprehensive income, net | 2,634 | 1,357 |
Total Shareholders' Equity | 118,444 | 113,655 |
Total Liabilities and Shareholders' Equity | $ 1,287,137 | $ 1,112,448 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Allowance for loan losses, loans receivable | $ 12,371 | $ 8,895 |
Accumulated amortization, intangible assets | $ 5,054 | $ 4,884 |
Shareholders' Equity | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 5,000,000 | 5,000,000 |
Common stock, issued | 2,843,292 | 2,825,912 |
Common stock, outstanding | 2,843,292 | 2,825,912 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 10,313 | $ 9,880 | $ 20,300 | $ 19,814 |
Interest on debt securities | ||||
Taxable | 409 | 583 | 864 | 1,204 |
Tax exempt | 171 | 117 | 356 | 189 |
Other interest and dividends | 51 | 252 | 142 | 479 |
Total interest and dividend income | 10,944 | 10,832 | 21,662 | 21,686 |
Interest expense | ||||
Deposits | 988 | 1,999 | 2,497 | 3,795 |
Repurchase agreements | 4 | 4 | 10 | 7 |
Finance lease | 35 | 46 | 71 | 92 |
Note payable | 4 | 4 | 7 | 8 |
Subordinated Debt | 156 | 156 | 312 | 312 |
Federal Home Loan Bank of Boston advances | 140 | 279 | 359 | 691 |
Total interest expense | 1,327 | 2,488 | 3,256 | 4,905 |
Net interest and dividend income | 9,617 | 8,344 | 18,406 | 16,781 |
Provision for loan losses | 1,806 | 151 | 3,512 | 445 |
Net interest and dividend income after provision for loan losses | 7,811 | 8,193 | 14,894 | 16,336 |
Non-interest income | ||||
Trust and wealth advisory | 1,031 | 1,044 | 2,061 | 1,950 |
Service charges and fees | 598 | 1,012 | 1,503 | 1,932 |
Gains on sales of mortgage loans, net | 252 | 1 | 313 | 8 |
Mortgage servicing, net | 66 | 80 | 133 | 156 |
Gains on CRA mutual fund | 8 | 12 | 22 | 23 |
Gains on available-for-sale securities, net | 181 | 281 | 182 | 272 |
BOLI income and gains | 133 | 87 | 266 | 166 |
Other | 47 | 31 | 80 | 68 |
Total non-interest income | 2,316 | 2,548 | 4,560 | 4,575 |
Non-interest expense | ||||
Salaries | 2,411 | 2,959 | 5,261 | 5,952 |
Employee benefits | 1,037 | 1,042 | 2,183 | 2,227 |
Premises and equipment | 981 | 1,004 | 1,891 | 1,976 |
Data processing | 557 | 577 | 1,098 | 1,086 |
Professional fees | 758 | 583 | 1,385 | 1,118 |
OREO gains, losses and write-downs, net | 270 | 322 | ||
Collections, OREO, and loan related | 79 | 79 | 104 | 209 |
FDIC insurance | 103 | 140 | 208 | 303 |
Marketing and community support | 169 | 151 | 293 | 307 |
Amortization of core deposit intangibles | 83 | 99 | 170 | 203 |
Other | 611 | 535 | 1,133 | 947 |
Total non-interest expense | 6,789 | 7,439 | 13,726 | 14,650 |
Income before income taxes | 3,338 | 3,302 | 5,728 | 6,261 |
Income tax provision | 604 | 599 | 947 | 1,124 |
Net income | 2,734 | 2,703 | 4,781 | 5,137 |
Net income allocated to common stock | $ 2,691 | $ 2,671 | $ 4,704 | $ 5,079 |
Basic earnings per common share | $ 0.96 | $ 0.96 | $ 1.68 | $ 1.83 |
Diluted earnings per common share | 0.96 | 0.95 | 1.68 | 1.82 |
Common dividends per share | $ 0.29 | $ 0.28 | $ 0.58 | $ 0.56 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Net income | $ 2,734 | $ 2,703 | $ 4,781 | $ 5,137 |
Other comprehensive income | ||||
Net unrealized gains on securities available-for-sale | 470 | 1,261 | 1,799 | 2,390 |
Reclassification of net realized gains in net income | (181) | (281) | (182) | (272) |
Unrealized gains on securities available-for-sale | 289 | 980 | 1,617 | 2,118 |
Income tax (expense) | (61) | (206) | (340) | (444) |
Unrealized gains on securities available-for-sale, net of tax | 228 | 774 | 1,277 | 1,674 |
Comprehensive income | $ 2,962 | $ 3,477 | $ 6,058 | $ 6,811 |
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 (loss) income | Total |
Balance - Beginning, shares at Dec. 31, 2018 | 2,806,781 | |||||
Balance - Beginning, amount at Dec. 31, 2018 | $ 281 | $ 43,770 | $ 60,339 | $ (711) | $ (220) | $ 103,459 |
Net income | 5,137 | 5,137 | ||||
Other comprehensive income, net of tax | 1,674 | 1,674 | ||||
Common stock dividends declared | (1,571) | (1,571) | ||||
Issuance of restricted stock awards, shares | 11,530 | |||||
Issuance of restricted stock awards, amount | $ 1 | 457 | (458) | |||
Stock options exercised, shares | 2,025 | |||||
Stock options exercised, amount | 34 | 34 | ||||
Forfeiture of restricted stock awards, shares | (460) | |||||
Forfeiture of restricted stock awards, amount | (21) | 21 | ||||
Issuance of director's restricted stock awards, shares | 3,600 | |||||
Issuance of director's restricted stock awards, amount | 142 | (142) | ||||
Stock based compensation - restricted stock awards | 215 | 215 | ||||
Balance - Ending, shares at Jun. 30, 2019 | 2,823,476 | |||||
Balance - Ending, amount at Jun. 30, 2019 | $ 282 | 44,382 | 63,905 | (1,075) | 1,454 | 108,948 |
Balance - Beginning, shares at Mar. 31, 2019 | 2,806,681 | |||||
Balance - Beginning, amount at Mar. 31, 2019 | $ 281 | 43,765 | 61,989 | (606) | 680 | 106,109 |
Net income | 2,703 | 2,703 | ||||
Other comprehensive income, net of tax | 774 | 774 | ||||
Common stock dividends declared | (787) | (787) | ||||
Issuance of restricted stock awards, shares | 11,530 | |||||
Issuance of restricted stock awards, amount | $ 1 | 457 | (458) | |||
Stock options exercised, shares | 2,025 | |||||
Stock options exercised, amount | 34 | 34 | ||||
Forfeiture of restricted stock awards, shares | (360) | |||||
Forfeiture of restricted stock awards, amount | (16) | 16 | ||||
Issuance of director's restricted stock awards, shares | 3,600 | |||||
Issuance of director's restricted stock awards, amount | 142 | (142) | ||||
Stock based compensation - restricted stock awards | 115 | 115 | ||||
Balance - Ending, shares at Jun. 30, 2019 | 2,823,476 | |||||
Balance - Ending, amount at Jun. 30, 2019 | $ 282 | 44,382 | 63,905 | (1,075) | 1,454 | 108,948 |
Balance - Beginning, shares at Dec. 31, 2019 | 2,825,912 | |||||
Balance - Beginning, amount at Dec. 31, 2019 | $ 283 | 44,490 | 68,320 | (795) | 1,357 | 113,655 |
Net income | 4,781 | 4,781 | ||||
Other comprehensive income, net of tax | 1,277 | 1,277 | ||||
Common stock dividends declared | (1,640) | (1,640) | ||||
Issuance of restricted stock awards, shares | 11,775 | |||||
Issuance of restricted stock awards, amount | $ 1 | 421 | (422) | |||
Stock options exercised, shares | 3,105 | |||||
Stock options exercised, amount | 53 | 53 | ||||
Forfeiture of restricted stock awards, shares | (700) | |||||
Forfeiture of restricted stock awards, amount | (29) | 29 | ||||
Issuance of director's restricted stock awards, shares | 3,200 | |||||
Issuance of director's restricted stock awards, amount | 114 | (114) | ||||
Stock based compensation - restricted stock awards | 47 | 271 | 318 | |||
Balance - Ending, shares at Jun. 30, 2020 | 2,843,292 | |||||
Balance - Ending, amount at Jun. 30, 2020 | $ 284 | 45,096 | 71,461 | (1,031) | 2,634 | 118,444 |
Balance - Beginning, shares at Mar. 31, 2020 | 2,829,017 | |||||
Balance - Beginning, amount at Mar. 31, 2020 | $ 283 | 44,566 | 69,547 | (659) | 2,406 | 116,143 |
Net income | 2,734 | 2,734 | ||||
Other comprehensive income, net of tax | 228 | 228 | ||||
Common stock dividends declared | (820) | (820) | ||||
Issuance of restricted stock awards, shares | 11,775 | |||||
Issuance of restricted stock awards, amount | $ 1 | 421 | (422) | |||
Stock options exercised, shares | ||||||
Stock options exercised, amount | ||||||
Forfeiture of restricted stock awards, shares | (700) | |||||
Forfeiture of restricted stock awards, amount | (29) | 29 | ||||
Issuance of director's restricted stock awards, shares | 3,200 | |||||
Issuance of director's restricted stock awards, amount | 114 | (114) | ||||
Stock based compensation - restricted stock awards | 24 | 135 | 159 | |||
Balance - Ending, shares at Jun. 30, 2020 | 2,843,292 | |||||
Balance - Ending, amount at Jun. 30, 2020 | $ 284 | $ 45,096 | $ 71,461 | $ (1,031) | $ 2,634 | $ 118,444 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Activities | ||
Net income | $ 4,781 | $ 5,137 |
Amortization (accretion) and depreciation | ||
Securities | 231 | 137 |
Bank premises and equipment | 720 | 813 |
Core deposit intangible | 170 | 203 |
Modification fees on Federal Home Loan Bank of Boston advances | 59 | 115 |
Subordinated debt issuance costs | 12 | 12 |
Mortgage servicing rights | 28 | 24 |
Fair value adjustment on loans | (64) | |
Fair value adjustment on deposits | (2) | (4) |
Gains on sales and calls of securities available-for-sale, net | 182 | 272 |
Gain on CRA mutual fund | (22) | (23) |
Gain on sales of loans, excluding capitalized servicing rights | (295) | (7) |
OREO losses and write-downs | 322 | |
Provision for loan losses | 3,512 | 445 |
Proceeds from loans sold | 18,117 | 458 |
Loans originated for sale | (22,803) | (854) |
Decrease in deferred loan origination fees and costs, net | 2,701 | 92 |
Mortgage servicing rights originated | (143) | (5) |
Increase in interest receivable | (573) | (291) |
(Increase) decrease in deferred tax benefit | (1,026) | 125 |
Decrease in prepaid expenses | 367 | 101 |
Increase in cash surrender value of life insurance policies | (266) | (167) |
Decrease in income tax receivable | 13 | |
(Increase) decrease in other assets | (8) | 694 |
Increase in income tax payable | 1,728 | |
Decrease in accrued expenses | (1,556) | (1,072) |
Increase in interest payable | 109 | 339 |
Increase (decrease) in other liabilities | 44 | (378) |
Stock based compensation - restricted stock awards | 318 | 215 |
Net cash provided by operating activities | 6,021 | 6,108 |
Investing Activities | ||
Net (purchases) redemptions of Federal Home Loan Bank of Boston stock | (111) | 1,657 |
Purchases of securities available-for-sale | (15,417) | (41,255) |
Proceeds from sales of securities available-for-sale | 10,598 | 28,170 |
Proceeds from calls of securities available-for-sale | 655 | 25 |
Proceeds from maturities of securities available-for-sale | 8,082 | 6,982 |
Reinvestment of CRA mutual fund | (8) | (10) |
Loan originations and principle collections, net | (119,192) | (1,813) |
Recoveries of loans previously charged off | 34 | 46 |
Proceeds from sales of other real estate owned | 314 | 1,087 |
Capital expenditures | (1,285) | (247) |
Purchase of life insurance policies | (750) | |
Net cash utilized by investing activities | (116,330) | (6,108) |
Financing Activities | ||
Increase in deposit transaction accounts, net | 144,015 | 13,442 |
Increase in time deposits, net | 22,080 | 10,546 |
(Decrease) increase in securities sold under agreements to repurchase, net | (721) | 2,204 |
Federal Home Loan Bank of Boston short-term advances, net change | (20,000) | (9,500) |
Advances (principal payments) on Federal Home Loan Bank of Boston long term advances | 25,000 | (25,000) |
Principal payments on Amortizing FHLB Advances | (828) | |
Principal payments on note payable | (18) | (17) |
Decrease in finance lease obligation | (22) | (70) |
Stock options exercised | 53 | 34 |
Common stock dividends paid | (1,640) | (1,571) |
Net cash provided (utilized) by financing activities | 167,919 | (9,932) |
Net increase (decrease) in cash and cash equivalents | 57,610 | (9,932) |
Cash and cash equivalents, beginning of period | 26,885 | 58,445 |
Cash and cash equivalents, end of period | 84,495 | 48,513 |
Cash paid during period | ||
Interest | 3,078 | 4,443 |
Income taxes | 245 | 986 |
Non-cash investing and financing activities | ||
Finance lease obligation | ||
Adoption of new accounting principle - Other assets | 1,552 | |
Adoption of new accounting principle - Other liabilities | $ (1,552) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2020 | |
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, 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 June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2019 Annual Report on Form 10-K for the year ended December 31, 2019. 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. Risks and Uncertainties The outbreak of the COVID-19 pandemic (“virus” or “COVID-19”) has adversely impacted a broad range of industries in which the Bank's customers operate and could impair their ability to fulfill their financial obligations to the Bank. The spread of the outbreak has caused significant disruptions in the U.S. economy and has disrupted banking and other financial activity in the areas in which the Bank operates. Salisbury proactively implemented many operational changes in March 2020 to protect its employees and customers, which included the closing of the lobbies of its branches to customers, implementing banking by appointment and requiring employees to work remotely or from different locations. Salisbury has experienced neither a significant interruption in service provided to its customers nor a material decline in business activity as a result of the virus. On July 8, 2020, Salisbury reopened its branches to customers. The Coronavirus Aid, Relief and Economic Security(“CARES”) Act was signed into law on March 27, 2020 as a legislative economic stimulus package. The goal of the CARES Act was to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to small businesses. While the states in the Bank's market area have begun a phased reopening, economic conditions have not returned to pre-COVID-19 levels and many businesses remain closed or are operating at reduced capacity. It is also unknown if the northeast will experience a resurgence of the virus similar to many southern states. Such a resurgence may cause the states in the Bank's market area to close businesses again. If this were to happen, the Bank could experience a material adverse effect on its business, financial condition, results of operations and cash flows. While it is not possible to know the full extent of the impact that the virus and an economic shutdown will have on Salisbury's operations, Salisbury is disclosing the material items of which it is currently aware. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. In April 2019, the FASB issued ASU 2019-04 which clarified the treatment of accrued interest when measuring credit losses. Entities may: (1) measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets; (2) make various accounting policy elections regarding the treatment of accrued interest receivable; or (3) elect a practical expedient to disclose separately the total amount of accrued interest included in the amortized cost basis as a single balance to meet certain disclosure requirements. ASU 2019-04 also clarified that expected recoveries of amounts previously written off and expected to be written off should be included in the valuation account and should not exceed the aggregate of amounts previously written off and expected to be written off by the entity. In addition, for collateral dependent financial assets, the amendments clarify that an allowance for credit losses that is added to the amortized cost basis of the financial asset(s) should not exceed amounts previously written off. In November 2019, the FASB issued ASU 2019-10, which delayed the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022 for smaller reporting companies, although early adoption is permitted. Salisbury meets the definition of a smaller reporting company because its public float is less than $250 million. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” which clarified or addressed specific issues about certain aspects of the amendments in ASU 2016-13. The amendments in ASU 2019-11 clarified the following: (1) The allowance for credit losses for purchased financial assets with credit deterioration should include expected recoveries of amounts previously written off and expected to be written off by the entity and should not exceed the aggregate of amounts of the amortized cost basis previously written off and expected to be written off by an entity. In addition, the amendments clarify that when a method other than a discounted cash flow method is used to estimate expected credit losses, expected recoveries should not include any amounts that result in an acceleration of the noncredit discount. An entity may include increases in expected cashflows after acquisition; (2) Transition relief will be provided by permitting entities an accounting policy election to adjust the effective interest rate on existing troubled debt restructurings using prepayment assumptions on the date of adoption of Topic 326 rather than the prepayment assumptions in effect immediately before the restructuring; (3) Disclosure relief will be extended for accrued interest receivable balances to additional relevant disclosures involving amortized cost basis; (4) An entity should assess whether it reasonably expects the borrower will be able to continually replenish collateral securing the financial asset to apply the practical expedient. The amendments clarify that an entity applying the practical expedient should estimate expected credit losses for any difference between the amount of the amortized cost basis that is greater than the fair value of the collateral securing the financial asset (that is, the unsecured portion of the amortized cost basis). An entity may determine that the expectation of nonpayment for the amount of the amortized cost basis equal to the fair value of the collateral securing the financial asset is zero. Upon adoption, Salisbury will apply the standards' provisions as a cumulative effect adjustment to retained earnings as of the first reporting period in which the guidance is effective. Salisbury anticipates that the adoption of ASU 2016-13 and related updates will impact the consolidated financial statements as it relates to the balance in the allowance for loan losses. Salisbury has engaged a third-party software vendor to model the allowance for loan and losses in conformance with this ASU. Salisbury will continue to refine this model and assess the impact to its 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. Entities should apply the guidance prospectively. On January 1, 2020, the Bank adopted the new standard, which did not have a material impact on Salisbury's Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. On January, 1, 2020, the Bank adopted the new standard, which only revised disclosure requirements and did not have a material impact on Salisbury's Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting or Income Taxes.” The amendments in this Update simplify the accounting for income taxes by removing the following exceptions:1. Exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income) 2. Exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment 3. Exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary 4. Exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in this Update also simplify the accounting for income taxes by doing the following: 1. Requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax. 2. Requiring that an entity evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. 3. Specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority. 4. Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. 5. Making minor Codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years; early adoption is permitted. Salisbury is currently evaluating the provisions of ASU 2019-12 to determine the potential impact the new standard will have on Salisbury's Consolidated Financial Statements. Other Regulatory Pronouncements On March 12, 2020 the Securities and Exchange Commission finalized amendments to the definitions of “accelerated” and “large accelerated filer”. The amendments increase the threshold criteria for meeting these categories and are effective on April 27, 2020 and apply to annual reports due on or after such effective date. Prior to these changes, Salisbury was designated as a “smaller reporting company” and an “accelerated” filer as it had more than $75 million in public float but less than $700 million at the end of Salisbury's most recent second quarter. The rule changed the definition of “accelerated filer” and expands the category of “non-accelerated filer” to include entities with public float of less than $700 million and less than $100 million in annual revenues. Salisbury meets the new definition of non-accelerated filer while continuing to qualify as a “smaller reporting company”, and will no longer be considered an accelerated filer. The categorization of “accelerated” or “large accelerated filer” determines the requirement for a public company to obtain an auditor attestation of its internal control over financial reporting. Non-accelerated filers also have additional time to file quarterly and annual reports. All public companies are required to obtain and file annual financial statements audits as well as provide management's assertion on the effectiveness of internal controls over financial reporting, but the external auditor attestation of internal control over financial reporting is not required for non-accelerated filers. As the Bank has total assets exceeding $1.0 billion, it remains subject to the rules of the Federal Deposit Insurance Corporation, which requires an auditor attestation of internal controls over the Bank's regulatory financial reporting. As such, other than additional time provided to file quarterly and annual reports, this amendment to the definition of accelerated filer does not significantly change Salisbury's annual reporting and audit requirements and does not change the auditor's role in the financial statement audit. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 Available-for-sale U.S. Government Agency notes $ 4,186 $ 176 $ 1 $ 4,361 Municipal bonds 24,701 1,207 12 25,896 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 30,881 1,179 35 32,025 Collateralized mortgage obligations: U.S. Government agencies 20,349 699 — 21,048 Corporate bonds 6,000 147 25 6,122 Total securities available-for-sale $ 86,117 $ 3,408 $ 73 $ 89,452 CRA mutual fund $ 912 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,353 $ — $ — $ 3,353 (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value December 31, 2019 Available-for-sale U.S. Government Agency notes $ 4,520 $ 125 $ 1 $ 4,644 Municipal bonds 26,562 704 73 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 28,961 420 24 29,357 Collateralized mortgage obligations: U.S. Government agencies 25,041 468 10 25,499 Corporate bonds 5,000 108 — 5,108 Total securities available-for-sale $ 90,084 $ 1,825 $ 108 $ 91,801 CRA mutual fund $ 882 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,242 $ — $ — $ 3,242 Salisbury sold $10.6 million of available-for-sale securities during the six month period ended June 30, 2020 realizing a pre-tax gain of $182 thousand and a related tax expense of $38 thousand. Salisbury sold $10.6 million in securities available-for-sale during the three month period ended June 30, 2020 realizing a pre-tax gain of $181 thousand and related tax expense of $38 thousand. Salisbury sold $28.2 million of available-for-sale securities during the six month period ended June 30, 2019 realizing a pre-tax gain of $272 thousand and a related tax expense of $57 thousand. Salisbury sold $27.2 million in securities available-for-sale during the three month period ended June 30, 2019 realizing a pre-tax gain of $281 thousand and related tax expense of $59 thousand. The following table summarizes the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: Less than 12 Months 12 Months or Longer Total June 30, 2020 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 102 $ 1 $ 102 $ 1 Municipal bonds 2,074 12 — — 2,074 12 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 4,160 34 105 1 4,265 35 Corporate bonds 725 25 — — 725 25 Total temporarily impaired securities $ 6,959 $ 71 $ 207 $ 2 $ 7,166 $ 73 Less than 12 Months 12 Months or Longer Total December 31, 2019 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 195 $ 1 $ 195 $ 1 Municipal bonds 6,273 73 — — 6,273 73 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 5,781 22 704 2 6,485 24 Collateralized mortgage obligations: U.S. Government Agencies 1,438 10 — — 1,438 10 Total temporarily impaired securities $ 13,492 $ 105 $ 899 $ 3 $ 14,391 $ 108 The amortized cost, fair value and tax equivalent yield of securities, by maturity, are as follows: June 30, 2020 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes After 5 year but within 10 years $ 2,496 $ 2,557 3.48 % Total 2,496 2,557 3.48 Municipal bonds After 5 year but within 10 years 1,720 1,881 3.16 After 10 years 22,981 24,015 3.07 Total 24,701 25,896 3.08 Mortgage-backed securities and Collateralized mortgage obligations U.S. Government agencies 52,920 54,877 2.85 Corporate bonds After 5 years but within 10 years 6,000 6,122 5.21 Securities available-for-sale $ 86,117 $ 89,452 3.17 % (1) Salisbury evaluates debt 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 June 30, 2020. U.S. Government Agency notes: The contractual cash flows are guaranteed by the U.S. government. Three securities had unrealized losses at June 30, 2020, which approximated 0.95% 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 June 30, 2020. Municipal bonds: Salisbury performed a detailed analysis of the municipal bond portfolio. Three securities had unrealized losses at June 30, 2020, which approximated 0.60% 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. 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 June 30, 2020. U.S. Government agency and U.S. Government-sponsored mortgage-backed securities and collateralized mortgage obligations: The contractual cash flows are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Six securities had unrealized losses at June 30, 2020, which approximated 0.81% 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 June 30, 2020. Corporate bonds: Salisbury regularly monitors and analyzes its corporate bond portfolio for credit quality. One security had unrealized losses at June 30, 2020, which approximated 3.29% 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. 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 June 30, 2020. 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 June 30, 2020. 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 | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
LOANS | NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: (In thousands) June 30, 2020 December 31, 2019 Residential 1-4 family $ 357,518 $ 346,299 Residential 5+ multifamily 38,353 35,455 Construction of residential 1-4 family 11,041 11,889 Home equity lines of credit 30,286 33,798 Residential real estate 437,198 427,441 Commercial 309,935 289,795 Construction of commercial 13,699 8,466 Commercial real estate 323,634 298,261 Farm land 3,324 3,641 Vacant land 13,879 7,893 Real estate secured 778,035 737,236 Commercial and industrial (1) 247,440 169,411 Municipal 20,707 21,914 Consumer 7,886 6,385 Loans receivable, gross 1,054,068 934,946 Deferred loan origination (fees) and costs, net (1,339 ) 1,362 Loans receivable, gross $ 1,052,729 $ 936,308 Allowance for loan losses (12,371 ) (8,895 ) Loans receivable, net $ 1,040,358 $ 927,413 Loans held-for-sale Residential 1-4 family $ 5,313 $ 332 (1) Commercial and industrial balance as of June 30, 2020 includes $98.9 million of Paycheck Protection Program loans. Salisbury has entered into loan participation agreements with other banks and transferred a portion of its originated loans to the participating banks. Transferred amounts are accounted for as sales and excluded from Salisbury's loans receivable. Salisbury and its participating lenders share ratably in any gains or losses that may result from a borrower's lack of compliance with contractual terms of the loan. Salisbury services the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments (net of servicing fees) to participating lenders and disburses required escrow funds to relevant parties. Salisbury also has entered into loan participation agreements with other banks and purchased a portion of the other banks' originated loans. Purchased amounts are accounted for as loans without recourse to the originating bank. Salisbury and its originating lenders share ratably in any gains or losses that may result from a borrower's lack of compliance with contractual terms of the loan. The originating banks service the loans on behalf of the participating lenders and, as such, collect cash payments from the borrowers, remit payments (net of servicing fees) to participating lenders and disburse required escrow funds to relevant parties. At June 30, 2020 and December 31, 2019, Salisbury serviced commercial loans for other banks under loan participation agreements totaling $61.9 million and $67.0 million, respectively. Concentrations of Credit Risk Salisbury's loans consist primarily of residential and commercial real estate loans located principally in Litchfield County, Connecticut; Dutchess, Orange and Ulster Counties, New York; and Berkshire County, Massachusetts, which constitute Salisbury's service area. Salisbury offers a broad range of loan and credit facilities to borrowers in its service area, including residential mortgage loans, commercial real estate loans, construction loans, working capital loans, equipment loans, and a variety of consumer loans, including home equity lines of credit, installment loans 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. Salisbury's commercial loan portfolio is comprised of loans to diverse industries, several of which may experience operating challenges from the economic downturn caused by the COVID-19 virus pandemic (“virus”). Approximately 35% of the Bank's commercial gross loans receivable are to entities who operate rental properties, which include commercial strip malls, smaller rental units as well as multi-unit dwellings. Approximately 15% of the Bank's gross commercial loan receivables is to entities in the hospitality industry, which includes hotels, bed & breakfast inns and restaurants. Approximately 8% of gross commercial loan receivables is to educational institutions and approximately 5% of Salisbury's gross commercial loan receivables is to entertainment and recreation related businesses, which include a ski resort, bowling alleys and amusement parks. Salisbury's commercial loan exposure is mitigated by a variety of factors including the personal liquidity of the borrower, real estate and/or non-real estate collateral, U.S. Department of Agriculture or Small Business Administration (“SBA”) guarantees, loan payment deferrals and economic stimulus loans from the U.S. government as a result of the virus, and other factors. The duration of the economic shutdown and the time required for businesses to recover may adversely affect the ability of some borrowers to make timely loan payments. During such economic shutdown and recovery, the Bank may experience higher loan payment delinquencies and higher loan charge-offs, which could warrant increased provisions for loan losses. 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" (5) 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" (6) 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" (7) 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" (8) 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 Federal Deposit Insurance Corporation (“FDIC”) and the Connecticut Department of Banking (“CTDOB”). The composition of loans receivable by risk rating grade is as follows: (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2020 Residential 1-4 family $ 350,494 $ 3,357 $ 3,667 $ — $ — $ 357,518 Residential 5+ multifamily 36,539 96 1,718 — — 38,353 Construction of residential 1-4 family 11,041 — — — — 11,041 Home equity lines of credit 29,689 332 265 — — 30,286 Residential real estate 427,763 3,785 5,650 — — 437,198 Commercial 292,546 3,081 14,237 71 — 309,935 Construction of commercial 13,464 — 235 — — 13,699 Commercial real estate 306,010 3,081 14,472 71 — 323,634 Farm land 1,637 — 1,687 — — 3,324 Vacant land 13,785 55 39 — — 13,879 Real estate secured 749,195 6,921 21,848 71 — 778,035 Commercial and industrial 245,768 581 731 360 — 247,440 Municipal 20,707 — — — — 20,707 Consumer 7,851 3 32 — — 7,886 Loans receivable, gross $ 1,023,521 $ 7,505 $ 22,611 $ 431 $ — $ 1,054,068 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2019 Residential 1-4 family $ 337,302 $ 4,278 $ 4,719 $ — $ — $ 346,299 Residential 5+ multifamily 33,619 99 1,737 — — 35,455 Construction of residential 1-4 family 11,889 — — — — 11,889 Home equity lines of credit 33,381 312 105 — — 33,798 Residential real estate 416,191 4,689 6,561 — — 427,441 Commercial 271,708 10,964 7,052 71 — 289,795 Construction of commercial 8,225 — 241 — — 8,466 Commercial real estate 279,933 10,964 7,293 71 — 298,261 Farm land 1,934 — 1,707 — — 3,641 Vacant land 7,834 59 — — — 7,893 Real estate secured 705,892 15,712 15,561 71 — 737,236 Commercial and industrial 167,458 443 1,510 — — 169,411 Municipal 21,914 — — — — 21,914 Consumer 6,344 3 38 — — 6,385 Loans receivable, gross $ 901,608 $ 16,158 $ 17,109 $ 71 $ — $ 934,946 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 June 30, 2020 Residential 1-4 family $ 356,297 $ 349 $ 618 $ 217 $ 37 $ 1,221 $ — $ 1,410 Residential 5+ multifamily 37,492 — — — 861 861 — 861 Construction of residential 1-4 family 11,041 — — — — — — — Home equity lines of credit 29,825 62 159 73 167 461 — 265 Residential real estate 434,655 411 777 290 1,065 2,543 — 2,536 Commercial 308,473 954 — 437 71 1,462 — 1,281 Construction of commercial 13,699 — — — — — — — Commercial real estate 322,172 954 — 437 71 1,462 — 1,281 Farm land 3,155 — 169 — — 169 — 174 Vacant land 13,879 — — — — — — 39 Real estate secured 773,861 1,365 946 727 1,136 4,174 — 4,030 Commercial and industrial 246,535 781 — — 124 905 11 774 Municipal 20,707 — — — — — — — Consumer 7,853 3 30 — — 33 — — Loans receivable, gross $ 1,048,956 $ 2,149 $ 976 $ 727 $ 1,260 $ 5,112 $ 11 $ 4,804 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, 2019 Residential 1-4 family $ 344,085 $ 971 $ 351 $ 200 $ 692 $ 2,214 $ — $ 1,551 Residential 5+ multifamily 34,594 — — — 861 861 — 861 Construction of residential 1-4 family 11,889 — — — — — — — Home equity lines of credit 33,522 152 46 — 78 276 — 105 Residential real estate 424,090 1,123 397 200 1,631 3,351 — 2,517 Commercial 289,103 336 141 71 144 692 — 914 Construction of commercial 8,466 — — — — — — — Commercial real estate 297,569 336 141 71 144 692 — 914 Farm land 3,461 180 — — — 180 — 186 Vacant land 7,852 — 41 — — 41 — — Real estate secured 732,972 1,639 579 271 1,775 4,264 — 3,617 Commercial and industrial 169,262 2 146 1 — 149 1 — Municipal 21,914 — — — — — — — Consumer 6,382 — 1 2 — 3 2 — Loans receivable, gross $ 930,530 $ 1,641 $ 726 $ 274 $ 1,775 $ 4,416 $ 3 $ 3,617 Troubled Debt Restructurings (TDRs) Troubled debt restructurings are as follows: For the three months ending June 30, 2020 For the three months ending June 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate — $ — $ — 2 $ 623 $ 623 Commercial real estate — — — — — — Consumer — — — 1 42 42 Troubled debt restructurings — $ — $ — 3 $ 665 $ 665 Interest only payments to sell property — $ — $ — — $ — $ — Rate reduction — — — 3 665 665 Modification and Rate reduction — — — — — — Workout refinance. Extension of new funds to pay outstanding taxes — — — — — — Modification and term extension — — — — — — Troubled debt restructurings — $ — $ — 3 $ 665 $ 665 For the six months ending June 30, 2020 For the six months ending June 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate — $ — $ — 2 $ 623 $ 623 Commercial real estate 1 133 133 — — — Consumer — — — 1 42 42 Troubled debt restructurings 1 $ 133 $ 133 3 $ 665 $ 665 Interest only payments to sell property — $ — $ — — $ — $ — Rate reduction — — — 3 665 665 Modification and Rate reduction — — — — — — Workout refinance. Extension of new funds to pay outstanding taxes 1 133 133 — — — Modification and term extension — — — — — — Troubled debt restructurings 1 $ 133 $ 133 3 $ 665 $ 665 For the second quarter 2020, there were no troubled debt restructurings, and for the same period in 2019, two residential loans with a combined loan balance of $623 thousand and one consumer loan of $42 thousand were modified in troubled debt restructurings for rate reductions. For the six months ended June 2020, one troubled debt restructuring of $133 thousand was modified to extend new funds to pay outstanding taxes and for the same period in 2019, three troubled debt restructurings with a combined loan balance of $665 thousand were modified for a rate reduction. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Three months ended June 30, 2020 Three months ended June 30, 2019 (in thousands) Beginning balance Provision (Benefit) Charge-offs Reco-veries Ending balance Beginning balance Provision (Benefit) Charge-offs Reco-veries Ending balance Residential 1-4 family $ 2,706 $ 342 $ — $ — $ 3,048 $ 1,980 $ 95 ($ 1 ) $ — $ 2,074 Residential 5+ multifamily 508 122 (41 ) — 589 466 29 — — 495 Construction of residential 1-4 family 87 — — — 87 77 2 — — 79 Home equity lines of credit 278 5 — — 283 209 15 — — 224 Residential real estate 3,579 469 (41 ) — 4,007 2,732 141 (1 ) — 2,872 Commercial 4,519 645 (4 ) — 5,160 3,803 (13 ) (14 ) 1 3,777 Construction of commercial 126 79 — — 205 143 (16 ) — — 127 Commercial real estate 4,645 724 (4 ) — 5,365 3,946 (29 ) (14 ) 1 3,904 Farm land 52 8 — — 60 47 — — — 47 Vacant land 144 38 — — 182 89 — — — 89 Real estate secured 8,420 1,239 (45 ) — 9,614 6,814 112 (15 ) 1 6,912 Commercial and industrial 1,071 444 — — 1,515 1,233 (67 ) (19 ) 29 1,176 Municipal 53 (17 ) — — 36 14 16 — — 30 Consumer 102 (20 ) (13 ) 5 74 51 40 (18 ) 8 81 Unallocated 972 160 — — 1,132 638 50 — — 688 Totals $ 10,618 $ 1,806 ($ 58 ) $ 5 $ 12,371 $ 8,750 $ 151 ($ 52 ) $ 38 $ 8,887 In first quarter 2019 Salisbury transferred the remaining unearned credit-related discount on loans acquired in its 2014 acquisition of Riverside Bank to the allowance for loan loss reserves. As a result of this transfer, which is reflected in the table below as the “acquisition discount transfer”, gross loans receivable and the allowance for loan losses increased by $663 thousand. The balance of net loans receivable did not change as a result of this transfer. Six months ended June 30, 2020 Six months ended June 30, 2019 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Acquisition Discount Transfer Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,393 $ 647 $ — $ 8 $ 3,048 $ 2,149 $ 10 ($ 85 ) $ (1 ) $ 1 $ 2,074 Residential 5+ multifamily 446 185 (42 ) — 589 413 — 82 — — 495 Construction of residential 1-4 family 75 12 — — 87 83 — (4 ) — — 79 Home equity lines of credit 197 86 — — 283 219 1 4 — — 224 Residential real estate 3,111 930 (42 ) 8 4,007 2,864 11 (3 ) (1 ) 1 2,872 Commercial 3,742 1,402 (3 ) 19 5,160 3,048 488 262 (23 ) 2 3,777 Construction of commercial 104 101 — — 205 122 — 5 — — 127 Commercial real estate 3,846 1,503 (3 ) 19 5,365 3,170 488 267 (23 ) 2 3,904 Farm land 47 13 — — 60 33 — 14 — — 47 Vacant land 71 111 — — 182 100 — (11 ) — — 89 Real estate secured 7,075 2,557 (45 ) 27 9,614 6,167 499 267 (24 ) 3 6,912 Commercial and industrial 1,145 370 — — 1,515 1,158 164 (127 ) (50 ) 31 1,176 Municipal 46 (10 ) — — 36 12 — 18 — — 30 Consumer 60 32 (25 ) 7 74 56 — 37 (24 ) 12 81 Unallocated 569 563 — — 1,132 438 — 250 — — 688 Totals $ 8,895 $ 3,512 ($ 70 ) $ 34 $ 12,371 $ 7,831 $ 663 $ 445 ($ 98 ) $ 46 $ 8,887 The composition of loans receivable and the allowance for loan losses is as follows: (in thousands) Collectively evaluated 1 Individually evaluated 1 Total portfolio Loans Allowance Loans Allowance Loans Allowance June 30, 2020 Residential 1-4 family $ 352,590 $ 2,642 $ 4,928 $ 406 $ 357,518 $ 3,048 Residential 5+ multifamily 37,382 589 971 — 38,353 589 Construction of residential 1-4 family 11,041 87 — — 11,041 87 Home equity lines of credit 30,021 263 265 20 30,286 283 Residential real estate 431,034 3,581 6,164 426 437,198 4,007 Commercial 305,393 4,836 4,542 324 309,935 5,160 Construction of commercial 13,699 205 — — 13,699 205 Commercial real estate 319,092 5,041 4,542 324 323,634 5,365 Farm land 3,150 60 174 — 3,324 60 Vacant land 13,705 179 174 3 13,879 182 Real estate secured 766,981 8,861 11,054 753 778,035 9,614 Commercial and industrial 246,544 1,139 896 376 247,440 1,515 Municipal 20,707 36 — — 20,707 36 Consumer 7,855 55 31 19 7,886 74 Unallocated allowance — 1,132 — — — 1,132 Totals $ 1,042,087 $ 11,223 $ 11,981 $ 1,148 $ 1,054,068 $ 12,371 (in thousands) Collectively evaluated 1 Individually evaluated 1 Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2019 Residential 1-4 family $ 340,847 $ 2,117 $ 5,452 $ 276 $ 346,299 $ 2,393 Residential 5+ multifamily 34,478 446 977 — 35,455 446 Construction of residential 1-4 family 11,889 75 — — 11,889 75 Home equity lines of credit 33,693 197 105 — 33,798 197 Residential real estate 420,907 2,835 6,534 276 427,441 3,111 Commercial 285,462 3,333 4,333 409 289,795 3,742 Construction of commercial 8,466 104 — — 8,466 104 Commercial real estate 293,928 3,437 4,333 409 298,261 3,846 Farm land 3,455 47 186 — 3,641 47 Vacant land 7,713 66 180 5 7,893 71 Real estate secured 726,003 6,385 11,233 690 737,236 7,075 Commercial and industrial 169,285 1,143 126 2 169,411 1,145 Municipal 21,914 46 — — 21,914 46 Consumer 6,349 59 36 1 6,385 60 Unallocated allowance — 569 — — — 569 Totals $ 923,551 $ 8,202 $ 11,395 $ 693 $ 934,946 $ 8,895 1 The credit quality segments of loans receivable and the allowance for loan losses are as follows: June 30, 2020 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,027,217 $ 9,157 $ — $ — $ 1,027,217 $ 9,157 Potential problem loans 1 14,870 934 — — 14,870 934 Impaired loans — — 11,981 1,148 11,981 1,148 Unallocated allowance — 1,132 — — — 1,132 Totals $ 1,042,087 $ 11,223 $ 11,981 $ 1,148 $ 1,054,068 $ 12,371 December 31, 2019 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 913,648 $ 7,251 $ — $ — $ 913,648 $ 7,251 Potential problem loans 1 9,903 382 — — 9,903 382 Impaired loans — — 11,395 693 11,395 693 Unallocated allowance — 569 — — — 569 Totals $ 923,551 $ 8,202 $ 11,395 $ 693 $ 934,946 $ 8,895 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, in accordance with the most likely means of recovery. 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 Loan balance Recorded Investment Note Average Specific allowance Income recognized Recorded Investment Note Average Income recognized June 30, 2020 Residential $ 4,203 $ 4,345 $ 4,066 $ 406 $ 45 $ 1,696 $ 2,043 $ 1,919 $ 13 Home equity lines of credit 227 540 79 20 — 38 74 100 — Residential real estate 4,430 4,885 4,145 426 45 1,734 2,117 2,019 13 Commercial 3,727 3,818 3,452 324 75 816 1,411 899 16 Construction of commercial — — — — — — — — — Farm land — — — — — 174 325 181 — Vacant land 39 41 40 3 — 134 151 137 5 Real estate secured 8,196 8,744 7,637 753 120 2,858 4,004 3,236 34 Commercial and industrial 896 901 241 376 7 — 151 64 — Consumer 31 31 34 19 1 — — — — Totals $ 9,123 $ 9,676 $ 7,912 $ 1,148 $ 128 $ 2,858 $ 4,155 $ 3,300 $ 34 Note: The income recognized is for the six month period ended June 30, 2020. Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Loan balance Recorded Investment Note Average Specific allowance Income recognized Recorded Investment Note Average Income recognized June 30, 2019 Residential $ 4,629 $ 4,985 $ 3,032 $ 172 $ 66 $ 1,991 $ 2,659 $ 3,299 $ 13 Home equity lines of credit 43 43 45 1 1 483 575 442 — Residential real estate 4,672 5,028 3,077 173 67 2,474 3,234 3,741 13 Commercial 2,565 2,571 2,239 186 51 1,236 2,519 2,287 27 Construction of commercial — — 143 — — — 3 72 — Farm land — — — — — 204 428 211 — Vacant land 42 42 42 2 1 143 163 145 5 Real estate secured 7,279 7,641 5,501 361 119 4,057 6,347 6,456 45 Commercial and industrial 3 3 — — — 135 236 395 3 Consumer 41 41 6 35 — — — 6 — Totals $ 7,323 $ 7,685 $ 5,507 $ 396 $ 119 $ 4,192 $ 6,583 $ 6,857 $ 48 Note: The income recognized is for the six month period ended June 30, 2019. Certain data with respect to loans individually evaluated for impairment is as follows as of and for the year ended December 31, 2019: Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Loan balance Recorded Investment Note Average Specific allowance Income recognized Recorded Investment Note Average Income recognized December 31, 2019 Residential $ 4,111 $ 4,190 $ 3,725 $ 276 $ 162 $ 2,318 $ 3,081 $ 2,940 $ 52 Home equity lines of credit — — 52 — — 105 450 391 — Residential real estate 4,111 4,190 3,777 276 162 2,423 3,531 3,331 52 Commercial 3,309 3,335 2,574 409 90 1,024 1,733 1,747 54 Construction of commercial — — 77 — — — — 39 — Farm land — — — — — 186 329 203 — Vacant land 41 41 42 5 3 139 157 143 10 Real estate secured 7,461 7,566 6,470 690 255 3,772 5,750 5,463 116 Commercial and industrial 93 97 16 2 4 33 188 265 4 Consumer 36 36 21 1 — — — 3 — Totals $ 7,590 $ 7,699 $ 6,507 $ 693 $ 259 $ 3,805 $ 5,938 $ 5,731 $ 120 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
LEASES | NOTE 4 – LEASES The following table provides the assets and liabilities as well as the costs of operating and finance leases that are included in the Bank's consolidated balance sheet as of June 30, 2020 and consolidated income statements for the six months and three months ended June 30, 2020. ($ in thousands, except lease term and discount rate) Classification June 30, 2020 December 31, 2019 Assets Operating Other assets $ 1,258 $ 1,360 Finance Bank premises and equipment 1 1,453 1,503 Total Leased Assets $ 2,711 $ 2,863 Liabilities Operating Other liabilities $ 1,258 $ 1,360 Finance Finance lease 1,696 1,718 Total lease liabilities $ 2,954 $ 3,078 1 Lease cost Classification Six months ended June 30, 2020 Three months ended June 30, 2020 Operating leases Premises and equipment $ 123 $ 61 Finance leases: Amortization of leased assets Premises and equipment 51 25 Interest on finance leases Interest expense 71 36 Total lease cost $ 245 $ 122 Lease cost Classification Six months ended June 30, 2019 Three months ended June 30, 2019 Operating leases Premises and equipment $ 123 $ 61 Finance leases: Amortization of leased assets Premises and equipment 120 47 Interest on finance leases Interest expense 92 46 Total lease cost $ 335 $ 154 Weighted Average Remaining Lease Term June 30, 2020 December 31, 2019 Operating leases 8.3 years 8.6 years Financing leases 14.9 years 13.1 years Weighted Average Discount Rate 1 Operating leases 3.73% 3.70% Financing leases 8.38% 6.20% 1 The following is a schedule by years of the present value of the net minimum lease payments as of June 30, 2020. Future minimum lease payments (in thousands) Operating Leases Finance Leases 2020 $ 128 $ 93 2021 250 192 2022 198 195 2023 148 197 2024 129 200 Thereafter 654 1,980 Total future minimum lease payments 1,507 2,857 Less amount representing interest (249 ) (1,161 ) Total present value of net future minimum lease payments $ 1,258 $ 1,696 |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2020 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE SERVICING RIGHTS | NOTE 5 - MORTGAGE SERVICING RIGHTS The following tables provide the balance of the residential mortgage loans serviced for others as well as the balance of mortgage servicing rights associated with those loans. The increase in balances from December 31, 2019 reflected the sale of additional loans to FHLB Boston for which the Bank retained servicing rights. (in thousands) June 30, 2020 December 31, 2019 Residential mortgage loans serviced for others $ 110,933 $ 106,255 Fair value of mortgage servicing rights 613 813 Changes in mortgage servicing rights are as follows: Three months ended Six months ended Periods ended June 30, (in thousands) 2020 2019 2020 2019 Mortgage Servicing Rights Balance, beginning of period $ 255 $ 221 $ 238 $ 228 Originated 110 1 143 5 Amortization (1) (12 ) (13 ) (28 ) (24 ) Balance, end of period $ 353 $ 209 $ 353 $ 209 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
PLEDGED ASSETS
PLEDGED ASSETS | 6 Months Ended |
Jun. 30, 2020 | |
Guarantees [Abstract] | |
PLEDGED ASSETS | NOTE 6 - PLEDGED ASSETS (in thousands) June 30, 2020 December 31, 2019 Securities available-for-sale (at fair value) $ 54,195 $ 52,845 Loans receivable (at book value) 428,772 434,329 Total pledged assets $ 482,967 $ 487,174 At June 30, 2020, securities were pledged as follows: $45.68 million to secure public deposits, $8.47 million to secure repurchase agreements and $0.05 million to secure FHLBB advances. Additionally, loans receivable were pledged to secure FHLBB advances and credit facilities. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 7 – 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 Six months ended Periods ended June 30, (in thousands, except per share data) 2020 2019 2020 2019 Net income $ 2,734 $ 2,703 $ 4,781 $ 5,137 Less: Undistributed earnings allocated to participating securities (43 ) (32 ) (77 ) (58 ) Net income allocated to common stock $ 2,691 $ 2,671 $ 4,704 $ 5,079 Weighted-average common shares issued 2,834 2,813 2,831 2,810 Less: Unvested restricted stock awards (38 ) (33 ) (38 ) (31 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,796 2,780 2,793 2,779 Add: Dilutive effect of stock options 7 20 8 16 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,803 2,800 2,801 2,795 Earnings per common share (basic) $ 0.96 $ 0.96 $ 1.68 $ 1.83 Earnings per common share (diluted) $ 0.96 $ 0.95 $ 1.68 $ 1.82 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 8 – SHAREHOLDERS' EQUITY Capital Requirements The Bank is 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 the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. 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 Board (“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. As of June 30, 2020, the Bank exceeded the regulatory requirement for the capital conservation buffer. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. A bank can be considered “well-capitalized” even if it does not maintain the capital conservation buffer as long as it meets the “well-capitalized” levels set forth below (and provided it is not subject to any written order, agreement, capital directive, etc.). A bank with a capital conservation buffer of at least 2.5% means that it generally will not be subject to certain limitations regarding capital distributions, such as dividend payments, discretionary payments on tier 1 instruments, share buybacks, and certain discretionary bonus payments to executive officers. The Bank's risk-weighted assets at June 30, 2020 and December 31, 2019 were $918.5 million and $891.0 million, respectively. 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 the Bank are as follows: Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2020 Total Capital (to risk-weighted assets) $ 120,802 13.15 % $ 73,480 8.0 % $ 96,443 10.5 % $ 91,850 10.0 % Tier 1 Capital (to risk-weighted assets) 109,309 11.90 55,110 6.0 78,073 8.5 73,480 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 109,309 11.90 41,333 4.5 64,295 7.0 59,703 6.5 Tier 1 Capital (to average assets) $ 109,309 8.95 $ 48,856 4.0 $ 48,856 4.0 $ 61,071 5.0 December 31, 2019 Total Capital (to risk-weighted assets) $ 114,421 12.84 % $ 71,278 8.0 % $ 93,553 10.5 % $ 89,098 10.0 % Tier 1 Capital (to risk-weighted assets) 105,430 11.83 53,459 6.0 75,733 8.5 71,278 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 105,430 11.83 40,094 4.5 62,368 7.0 57,914 6.5 Tier 1 Capital (to average assets) $ 105,430 9.60 $ 43,944 4.0 $ 43,944 4.0 $ 54,930 5.0 Restrictions on 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 | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
BENEFITS | NOTE 9 – BENEFITS Salisbury's 401(k) Plan expense was $200 thousand and $192 thousand, respectively, for the three-month periods ended June 30, 2020 and 2019, and $438 thousand and $431 thousand, respectively, for the six-month periods ended June 30, 2020 and 2019. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $14 thousand and $27 thousand, respectively, for the three-month periods ended June 30, 2020 and 2019, and $38 thousand and $48 thousand, respectively, for the six-month periods ended June 30, 2020 and 2019. ESOP Salisbury offers an ESOP to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan. Discretionary contributions vest in full upon six years and reflect the following schedule of qualified service: 20% after the second year, 20% per year thereafter, vesting at 100% after six full years of service. Salisbury's ESOP expense was $56 thousand and $53 thousand, respectively, for the three-month periods ended June 30, 2020 and 2019, and $113 thousand and $102 thousand, respectively, for the six-month periods ended June 30, 2020 and 2019. 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 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 $33 thousand and $29 thousand, respectively, for the three-month periods ended June 30, 2020 and 2019, and $67 thousand and $58 thousand, respectively, for the six-month periods ended June 30, 2020 and 2019. Grants of Restricted Stock and Options Restricted stock Restricted stock expense was $135 thousand and $115 thousand, respectively; for the three-month periods ended June 30, 2020 and 2019, and $271 thousand and $215 thousand, respectively; for the six-month periods ended June 30, 2020 and 2019. The second quarter 2020 included an expense of $32 thousand for the accelerated vesting of restricted stock awards previously granted to certain Directors, who retired from Salisbury's Board of Directors during the quarter. The tax benefit from restricted stock expense was $25 thousand and $21 thousand, respectively; for the three-month periods ended June 30, 2020 and 2019, and $49 thousand and $39 thousand, respectively; for the six-month periods ended June 30, 2020 and 2019. In second quarter 2020, Salisbury granted a total of 14,975 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 approximately $536 thousand. The restricted stock will vest three years from the grant date. Unrecognized compensation cost relating to the awards as of June 30, 2020 and 2019 totaled $1,031 thousand and $1,075 thousand, respectively. There were forfeitures of $29 thousand or 700 shares in the second quarter of 2020 and forfeitures of $29 thousand or 700 shares for year to date. There were forfeitures of $16 thousand or 360 shares in the second quarter of 2019 and forfeitures of $21 thousand or 460 shares for year to date. Performance-based restricted stock units On March 29, 2019, the Compensation Committee granted performance-based restricted stock units (RSU) pursuant to the 2017 Long-Term Incentive Plan to further align compensation with the Bank's performance. This RSU plan replaced the Bank's Phantom Stock Appreciation Units plan. The performance goal is based on the increase in the Bank's tangible book value by $3.50 per share over the performance period for threshold performance. Vesting will range from 75% of target for achieving threshold performance, to 100% of target for achieving target payout performance ($5.00 increase in tangible book value per share) to 150% of target for achieving in excess of target payout performance and, if the performance goals are achieved, vesting will occur no later than March 29, 2022. A total of 6,800 performance-based restricted stock units were granted, including 3,500 units to three Named Executive Officers. Mr. Cantele received 1,500 units, Mr. Davies received 1,000 units and Mr. Albero received 1,000 units. Compensation expense was recorded with respect to these RSUs, for the quarter a total of $24 thousand and $21 thousand, and year to date $47 thousand and $39 thousand, were expensed in 2020 and 2019, respectively. No performance-based restricted stock units were awarded to date in 2020 and prior to March 29, 2019. Options Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In the second quarter 2020, there were no stock options exercised and year to date 2020, 1,755 stock options were exercised at $17.04 per share by one former Riverside Bank executive, who is currently a Named Executive Officer of Salisbury. Also, in the first quarter of 2020, a former Riverside employee exercised 1,350 stock options at $17.04 per share. In the second quarter 2019, a former Riverside employee exercised 2,025 at $17.04 per share, these was the only activity year to date in 2019. |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF 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 in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury's market assumptions. These two types of inputs have created the following fair value hierarchy: Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 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. 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 six month period ended June 30, 2020. Assets measured at fair value are as follows: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value June 30, 2020 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,361 $ — $ 4,361 Municipal bonds — 25,896 — 25,896 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 32,025 — 32,025 Collateralized mortgage obligations: U.S. Government agencies — 21,048 — 21,048 Corporate bonds — 6,122 — 6,122 Securities available-for-sale $ — $ 89,452 $ — $ 89,452 CRA mutual funds 912 — — 912 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 1,282 $ 1,282 Other real estate owned $ — $ — $ — $ — December 31, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,644 $ — $ 4,644 Municipal bonds — 27,193 — 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 29,357 — 29,357 Collateralized mortgage obligations: U.S. Government agencies — 25,499 — 25,499 Corporate bonds — 5,108 — 5,108 Securities available-for-sale $ — $ 91,801 $ — $ 91,801 CRA mutual funds 882 — — 882 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 1,593 $ 1,593 Other real estate owned $ — $ — $ 314 $ 314 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 June 30, 2020 Financial Assets Cash and cash equivalents $ 84,495 $ 84,495 $ 84,495 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale, net 89,452 89,452 — 89,452 — CRA mutual fund 912 912 912 — — Federal Home Loan Bank of Boston stock 3,353 3,353 3,353 — — Loans held-for-sale 5,313 5,392 — — 5,392 Loans receivable, net 1,040,358 1,062,289 — — 1,062,289 Accrued interest receivable 3,988 3,988 3,988 — — Cash surrender value of life insurance policies 20,846 20,846 20,846 — — Financial Liabilities Demand (non-interest-bearing) $ 325,531 $ 325,531 $ — $ 325,531 $ — Demand (interest-bearing) 188,487 188,487 — 188,487 — Money market 251,242 251,242 — 251,242 — Savings and other 170,537 170,537 — 170,537 — Certificates of deposit 149,802 151,315 — 151,315 — Deposits 1,085,599 1,087,112 — 1,087,112 — Repurchase agreements 7,809 7,809 — 7,809 — FHLBB advances 55,118 55,377 — 55,377 — Subordinated debt 9,871 9,910 9,910 — — Note payable 228 231 — 231 — Finance lease obligation 1,696 1,902 — — 1,902 Accrued interest payable 187 187 187 — — December 31, 2019 Financial Assets Cash and cash equivalents $ 26,885 $ 26,885 $ 26,885 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 91,801 91,801 — 91,801 — CRA mutual fund 882 882 882 — — Federal Home Loan Bank of Boston stock 3,242 3,242 3,242 — — Loans held-for-sale 332 334 — — 334 Loans receivable, net 927,413 933,287 — — 933,287 Accrued interest receivable 3,415 3,415 3,415 — — Cash surrender value of life insurance policies 20,580 20,580 20,580 — — Financial Liabilities Demand (non-interest-bearing) $ 237,852 $ 237,852 $ — $ 237,852 $ — Demand (interest-bearing) 153,314 153,314 — 153,314 — Money market 239,504 239,504 — 239,504 — Savings and other 161,112 161,112 — 161,112 — Certificates of deposit 127,724 128,629 — 128,629 — Deposits 919,506 920,411 — 920,411 — Repurchase agreements 8,530 8,530 — 8,530 — FHLBB advances 50,887 51,028 — 51,028 — Subordinated debt 9,859 10,113 10,113 — — Note payable 246 251 — 251 — Finance lease liability 1,718 1,967 — — 1,967 Accrued interest payable 78 78 78 — — 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 | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11 – SUBSEQUENT EVENTS In July 2020, Salisbury was notified of the death of a former employee who was covered under a Bank Owned Life Insurance policy (“BOLI”). Under the terms of the BOLI policy, the Bank will record a tax-free gain of $600 thousand in July 2020. On July 29, 2020, the Compensation Committee of the Board of Directors approved grants of performance-based restricted stock units (“RSUs”) to named executive officers (“NEOs”) and other key employees under the Company’s 2017 Long Term Incentive Plan. The Compensation Committee granted a total of 7,250 RSUs, including 3,500 RSUs to NEOs. Richard J. Cantele, Jr., President and Chief Executive Officer received 1,500 target RSUs; John M. Davies, President of NY Region and Chief Lending Officer received 1,000 target RSUs; and Peter Albero, Executive Vice President and Chief Financial Officer received 1,000 target RSUs. The maximum number of shares deliverable upon vesting of RSUs assuming 150% of the TBV growth target is met or exceeded, will be 10,875. On July 31, 2020 the Board of Directors declared a dividend of $0.29 per common share payable on August 28, 2020 to shareholders of record as of August 14, 2020. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Other Regulatory Pronouncements | Other Regulatory Pronouncements On March 12, 2020 the Securities and Exchange Commission finalized amendments to the definitions of “accelerated” and “large accelerated filer”. The amendments increase the threshold criteria for meeting these categories and are effective on April 27, 2020 and apply to annual reports due on or after such effective date. Prior to these changes, Salisbury was designated as a “smaller reporting company” and an “accelerated” filer as it had more than $75 million in public float but less than $700 million at the end of Salisbury's most recent second quarter. The rule changed the definition of “accelerated filer” and expands the category of “non-accelerated filer” to include entities with public float of less than $700 million and less than $100 million in annual revenues. Salisbury meets the new definition of non-accelerated filer while continuing to qualify as a “smaller reporting company”, and will no longer be considered an accelerated filer. The categorization of “accelerated” or “large accelerated filer” determines the requirement for a public company to obtain an auditor attestation of its internal control over financial reporting. Non-accelerated filers also have additional time to file quarterly and annual reports. All public companies are required to obtain and file annual financial statements audits as well as provide management's assertion on the effectiveness of internal controls over financial reporting, but the external auditor attestation of internal control over financial reporting is not required for non-accelerated filers. As the Bank has total assets exceeding $1.0 billion, it remains subject to the rules of the Federal Deposit Insurance Corporation, which requires an auditor attestation of internal controls over the Bank's regulatory financial reporting. As such, other than additional time provided to file quarterly and annual reports, this amendment to the definition of accelerated filer does not significantly change Salisbury's annual reporting and audit requirements and does not change the auditor's role in the financial statement audit. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 Available-for-sale U.S. Government Agency notes $ 4,186 $ 176 $ 1 $ 4,361 Municipal bonds 24,701 1,207 12 25,896 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 30,881 1,179 35 32,025 Collateralized mortgage obligations: U.S. Government agencies 20,349 699 — 21,048 Corporate bonds 6,000 147 25 6,122 Total securities available-for-sale $ 86,117 $ 3,408 $ 73 $ 89,452 CRA mutual fund $ 912 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,353 $ — $ — $ 3,353 (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value December 31, 2019 Available-for-sale U.S. Government Agency notes $ 4,520 $ 125 $ 1 $ 4,644 Municipal bonds 26,562 704 73 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 28,961 420 24 29,357 Collateralized mortgage obligations: U.S. Government agencies 25,041 468 10 25,499 Corporate bonds 5,000 108 — 5,108 Total securities available-for-sale $ 90,084 $ 1,825 $ 108 $ 91,801 CRA mutual fund $ 882 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,242 $ — $ — $ 3,242 |
Aggreggate fair value and gross unrealized loss of securities | Less than 12 Months 12 Months or Longer Total June 30, 2020 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 102 $ 1 $ 102 $ 1 Municipal bonds 2,074 12 — — 2,074 12 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 4,160 34 105 1 4,265 35 Corporate bonds 725 25 — — 725 25 Total temporarily impaired securities $ 6,959 $ 71 $ 207 $ 2 $ 7,166 $ 73 Less than 12 Months 12 Months or Longer Total December 31, 2019 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 195 $ 1 $ 195 $ 1 Municipal bonds 6,273 73 — — 6,273 73 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 5,781 22 704 2 6,485 24 Collateralized mortgage obligations: U.S. Government Agencies 1,438 10 — — 1,438 10 Total temporarily impaired securities $ 13,492 $ 105 $ 899 $ 3 $ 14,391 $ 108 |
Amortized cost, fair value and tax equivalent yield of securities | June 30, 2020 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes After 5 year but within 10 years $ 2,496 $ 2,557 3.48 % Total 2,496 2,557 3.48 Municipal bonds After 5 year but within 10 years 1,720 1,881 3.16 After 10 years 22,981 24,015 3.07 Total 24,701 25,896 3.08 Mortgage-backed securities and Collateralized mortgage obligations U.S. Government agencies 52,920 54,877 2.85 Corporate bonds After 5 years but within 10 years 6,000 6,122 5.21 Securities available-for-sale $ 86,117 $ 89,452 3.17 % (1) |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Composition of loans receivable and loans held-for-sale | (In thousands) June 30, 2020 December 31, 2019 Residential 1-4 family $ 357,518 $ 346,299 Residential 5+ multifamily 38,353 35,455 Construction of residential 1-4 family 11,041 11,889 Home equity lines of credit 30,286 33,798 Residential real estate 437,198 427,441 Commercial 309,935 289,795 Construction of commercial 13,699 8,466 Commercial real estate 323,634 298,261 Farm land 3,324 3,641 Vacant land 13,879 7,893 Real estate secured 778,035 737,236 Commercial and industrial (1) 247,440 169,411 Municipal 20,707 21,914 Consumer 7,886 6,385 Loans receivable, gross 1,054,068 934,946 Deferred loan origination (fees) and costs, net (1,339 ) 1,362 Loans receivable, gross $ 1,052,729 $ 936,308 Allowance for loan losses (12,371 ) (8,895 ) Loans receivable, net $ 1,040,358 $ 927,413 Loans held-for-sale Residential 1-4 family $ 5,313 $ 332 (1) Commercial and industrial balance as of June 30, 2020 includes $98.9 million of Paycheck Protection Program loans. |
Composition of loans receivable by risk rating grade | (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2020 Residential 1-4 family $ 350,494 $ 3,357 $ 3,667 $ — $ — $ 357,518 Residential 5+ multifamily 36,539 96 1,718 — — 38,353 Construction of residential 1-4 family 11,041 — — — — 11,041 Home equity lines of credit 29,689 332 265 — — 30,286 Residential real estate 427,763 3,785 5,650 — — 437,198 Commercial 292,546 3,081 14,237 71 — 309,935 Construction of commercial 13,464 — 235 — — 13,699 Commercial real estate 306,010 3,081 14,472 71 — 323,634 Farm land 1,637 — 1,687 — — 3,324 Vacant land 13,785 55 39 — — 13,879 Real estate secured 749,195 6,921 21,848 71 — 778,035 Commercial and industrial 245,768 581 731 360 — 247,440 Municipal 20,707 — — — — 20,707 Consumer 7,851 3 32 — — 7,886 Loans receivable, gross $ 1,023,521 $ 7,505 $ 22,611 $ 431 $ — $ 1,054,068 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2019 Residential 1-4 family $ 337,302 $ 4,278 $ 4,719 $ — $ — $ 346,299 Residential 5+ multifamily 33,619 99 1,737 — — 35,455 Construction of residential 1-4 family 11,889 — — — — 11,889 Home equity lines of credit 33,381 312 105 — — 33,798 Residential real estate 416,191 4,689 6,561 — — 427,441 Commercial 271,708 10,964 7,052 71 — 289,795 Construction of commercial 8,225 — 241 — — 8,466 Commercial real estate 279,933 10,964 7,293 71 — 298,261 Farm land 1,934 — 1,707 — — 3,641 Vacant land 7,834 59 — — — 7,893 Real estate secured 705,892 15,712 15,561 71 — 737,236 Commercial and industrial 167,458 443 1,510 — — 169,411 Municipal 21,914 — — — — 21,914 Consumer 6,344 3 38 — — 6,385 Loans receivable, gross $ 901,608 $ 16,158 $ 17,109 $ 71 $ — $ 934,946 |
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 June 30, 2020 Residential 1-4 family $ 356,297 $ 349 $ 618 $ 217 $ 37 $ 1,221 $ — $ 1,410 Residential 5+ multifamily 37,492 — — — 861 861 — 861 Construction of residential 1-4 family 11,041 — — — — — — — Home equity lines of credit 29,825 62 159 73 167 461 — 265 Residential real estate 434,655 411 777 290 1,065 2,543 — 2,536 Commercial 308,473 954 — 437 71 1,462 — 1,281 Construction of commercial 13,699 — — — — — — — Commercial real estate 322,172 954 — 437 71 1,462 — 1,281 Farm land 3,155 — 169 — — 169 — 174 Vacant land 13,879 — — — — — — 39 Real estate secured 773,861 1,365 946 727 1,136 4,174 — 4,030 Commercial and industrial 246,535 781 — — 124 905 11 774 Municipal 20,707 — — — — — — — Consumer 7,853 3 30 — — 33 — — Loans receivable, gross $ 1,048,956 $ 2,149 $ 976 $ 727 $ 1,260 $ 5,112 $ 11 $ 4,804 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, 2019 Residential 1-4 family $ 344,085 $ 971 $ 351 $ 200 $ 692 $ 2,214 $ — $ 1,551 Residential 5+ multifamily 34,594 — — — 861 861 — 861 Construction of residential 1-4 family 11,889 — — — — — — — Home equity lines of credit 33,522 152 46 — 78 276 — 105 Residential real estate 424,090 1,123 397 200 1,631 3,351 — 2,517 Commercial 289,103 336 141 71 144 692 — 914 Construction of commercial 8,466 — — — — — — — Commercial real estate 297,569 336 141 71 144 692 — 914 Farm land 3,461 180 — — — 180 — 186 Vacant land 7,852 — 41 — — 41 — — Real estate secured 732,972 1,639 579 271 1,775 4,264 — 3,617 Commercial and industrial 169,262 2 146 1 — 149 1 — Municipal 21,914 — — — — — — — Consumer 6,382 — 1 2 — 3 2 — Loans receivable, gross $ 930,530 $ 1,641 $ 726 $ 274 $ 1,775 $ 4,416 $ 3 $ 3,617 |
Troubled debt restructurings | For the three months ending June 30, 2020 For the three months ending June 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate — $ — $ — 2 $ 623 $ 623 Commercial real estate — — — — — — Consumer — — — 1 42 42 Troubled debt restructurings — $ — $ — 3 $ 665 $ 665 Interest only payments to sell property — $ — $ — — $ — $ — Rate reduction — — — 3 665 665 Modification and Rate reduction — — — — — — Workout refinance. Extension of new funds to pay outstanding taxes — — — — — — Modification and term extension — — — — — — Troubled debt restructurings — $ — $ — 3 $ 665 $ 665 For the six months ending June 30, 2020 For the six months ending June 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate — $ — $ — 2 $ 623 $ 623 Commercial real estate 1 133 133 — — — Consumer — — — 1 42 42 Troubled debt restructurings 1 $ 133 $ 133 3 $ 665 $ 665 Interest only payments to sell property — $ — $ — — $ — $ — Rate reduction — — — 3 665 665 Modification and Rate reduction — — — — — — Workout refinance. Extension of new funds to pay outstanding taxes 1 133 133 — — — Modification and term extension — — — — — — Troubled debt restructurings 1 $ 133 $ 133 3 $ 665 $ 665 |
Changes in allowance for loan losses | Three months ended June 30, 2020 Three months ended June 30, 2019 (in thousands) Beginning balance Provision (Benefit) Charge-offs Reco-veries Ending balance Beginning balance Provision (Benefit) Charge-offs Reco-veries Ending balance Residential 1-4 family $ 2,706 $ 342 $ — $ — $ 3,048 $ 1,980 $ 95 ($ 1 ) $ — $ 2,074 Residential 5+ multifamily 508 122 (41 ) — 589 466 29 — — 495 Construction of residential 1-4 family 87 — — — 87 77 2 — — 79 Home equity lines of credit 278 5 — — 283 209 15 — — 224 Residential real estate 3,579 469 (41 ) — 4,007 2,732 141 (1 ) — 2,872 Commercial 4,519 645 (4 ) — 5,160 3,803 (13 ) (14 ) 1 3,777 Construction of commercial 126 79 — — 205 143 (16 ) — — 127 Commercial real estate 4,645 724 (4 ) — 5,365 3,946 (29 ) (14 ) 1 3,904 Farm land 52 8 — — 60 47 — — — 47 Vacant land 144 38 — — 182 89 — — — 89 Real estate secured 8,420 1,239 (45 ) — 9,614 6,814 112 (15 ) 1 6,912 Commercial and industrial 1,071 444 — — 1,515 1,233 (67 ) (19 ) 29 1,176 Municipal 53 (17 ) — — 36 14 16 — — 30 Consumer 102 (20 ) (13 ) 5 74 51 40 (18 ) 8 81 Unallocated 972 160 — — 1,132 638 50 — — 688 Totals $ 10,618 $ 1,806 ($ 58 ) $ 5 $ 12,371 $ 8,750 $ 151 ($ 52 ) $ 38 $ 8,887 Six months ended June 30, 2020 Six months ended June 30, 2019 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Acquisition Discount Transfer Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,393 $ 647 $ — $ 8 $ 3,048 $ 2,149 $ 10 ($ 85 ) $ (1 ) $ 1 $ 2,074 Residential 5+ multifamily 446 185 (42 ) — 589 413 — 82 — — 495 Construction of residential 1-4 family 75 12 — — 87 83 — (4 ) — — 79 Home equity lines of credit 197 86 — — 283 219 1 4 — — 224 Residential real estate 3,111 930 (42 ) 8 4,007 2,864 11 (3 ) (1 ) 1 2,872 Commercial 3,742 1,402 (3 ) 19 5,160 3,048 488 262 (23 ) 2 3,777 Construction of commercial 104 101 — — 205 122 — 5 — — 127 Commercial real estate 3,846 1,503 (3 ) 19 5,365 3,170 488 267 (23 ) 2 3,904 Farm land 47 13 — — 60 33 — 14 — — 47 Vacant land 71 111 — — 182 100 — (11 ) — — 89 Real estate secured 7,075 2,557 (45 ) 27 9,614 6,167 499 267 (24 ) 3 6,912 Commercial and industrial 1,145 370 — — 1,515 1,158 164 (127 ) (50 ) 31 1,176 Municipal 46 (10 ) — — 36 12 — 18 — — 30 Consumer 60 32 (25 ) 7 74 56 — 37 (24 ) 12 81 Unallocated 569 563 — — 1,132 438 — 250 — — 688 Totals $ 8,895 $ 3,512 ($ 70 ) $ 34 $ 12,371 $ 7,831 $ 663 $ 445 ($ 98 ) $ 46 $ 8,887 |
Composition of loans receivable and allowance for loan losses | (in thousands) Collectively evaluated 1 Individually evaluated 1 Total portfolio Loans Allowance Loans Allowance Loans Allowance June 30, 2020 Residential 1-4 family $ 352,590 $ 2,642 $ 4,928 $ 406 $ 357,518 $ 3,048 Residential 5+ multifamily 37,382 589 971 — 38,353 589 Construction of residential 1-4 family 11,041 87 — — 11,041 87 Home equity lines of credit 30,021 263 265 20 30,286 283 Residential real estate 431,034 3,581 6,164 426 437,198 4,007 Commercial 305,393 4,836 4,542 324 309,935 5,160 Construction of commercial 13,699 205 — — 13,699 205 Commercial real estate 319,092 5,041 4,542 324 323,634 5,365 Farm land 3,150 60 174 — 3,324 60 Vacant land 13,705 179 174 3 13,879 182 Real estate secured 766,981 8,861 11,054 753 778,035 9,614 Commercial and industrial 246,544 1,139 896 376 247,440 1,515 Municipal 20,707 36 — — 20,707 36 Consumer 7,855 55 31 19 7,886 74 Unallocated allowance — 1,132 — — — 1,132 Totals $ 1,042,087 $ 11,223 $ 11,981 $ 1,148 $ 1,054,068 $ 12,371 (in thousands) Collectively evaluated 1 Individually evaluated 1 Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2019 Residential 1-4 family $ 340,847 $ 2,117 $ 5,452 $ 276 $ 346,299 $ 2,393 Residential 5+ multifamily 34,478 446 977 — 35,455 446 Construction of residential 1-4 family 11,889 75 — — 11,889 75 Home equity lines of credit 33,693 197 105 — 33,798 197 Residential real estate 420,907 2,835 6,534 276 427,441 3,111 Commercial 285,462 3,333 4,333 409 289,795 3,742 Construction of commercial 8,466 104 — — 8,466 104 Commercial real estate 293,928 3,437 4,333 409 298,261 3,846 Farm land 3,455 47 186 — 3,641 47 Vacant land 7,713 66 180 5 7,893 71 Real estate secured 726,003 6,385 11,233 690 737,236 7,075 Commercial and industrial 169,285 1,143 126 2 169,411 1,145 Municipal 21,914 46 — — 21,914 46 Consumer 6,349 59 36 1 6,385 60 Unallocated allowance — 569 — — — 569 Totals $ 923,551 $ 8,202 $ 11,395 $ 693 $ 934,946 $ 8,895 1 |
Credit quality segments of loans receivable and allowance for loan losses | June 30, 2020 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,027,217 $ 9,157 $ — $ — $ 1,027,217 $ 9,157 Potential problem loans 1 14,870 934 — — 14,870 934 Impaired loans — — 11,981 1,148 11,981 1,148 Unallocated allowance — 1,132 — — — 1,132 Totals $ 1,042,087 $ 11,223 $ 11,981 $ 1,148 $ 1,054,068 $ 12,371 December 31, 2019 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 913,648 $ 7,251 $ — $ — $ 913,648 $ 7,251 Potential problem loans 1 9,903 382 — — 9,903 382 Impaired loans — — 11,395 693 11,395 693 Unallocated allowance — 569 — — — 569 Totals $ 923,551 $ 8,202 $ 11,395 $ 693 $ 934,946 $ 8,895 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 Loan balance Recorded Investment Note Average Specific allowance Income recognized Recorded Investment Note Average Income recognized June 30, 2020 Residential $ 4,203 $ 4,345 $ 4,066 $ 406 $ 45 $ 1,696 $ 2,043 $ 1,919 $ 13 Home equity lines of credit 227 540 79 20 — 38 74 100 — Residential real estate 4,430 4,885 4,145 426 45 1,734 2,117 2,019 13 Commercial 3,727 3,818 3,452 324 75 816 1,411 899 16 Construction of commercial — — — — — — — — — Farm land — — — — — 174 325 181 — Vacant land 39 41 40 3 — 134 151 137 5 Real estate secured 8,196 8,744 7,637 753 120 2,858 4,004 3,236 34 Commercial and industrial 896 901 241 376 7 — 151 64 — Consumer 31 31 34 19 1 — — — — Totals $ 9,123 $ 9,676 $ 7,912 $ 1,148 $ 128 $ 2,858 $ 4,155 $ 3,300 $ 34 Note: The income recognized is for the six month period ended June 30, 2020. Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Loan balance Recorded Investment Note Average Specific allowance Income recognized Recorded Investment Note Average Income recognized June 30, 2019 Residential $ 4,629 $ 4,985 $ 3,032 $ 172 $ 66 $ 1,991 $ 2,659 $ 3,299 $ 13 Home equity lines of credit 43 43 45 1 1 483 575 442 — Residential real estate 4,672 5,028 3,077 173 67 2,474 3,234 3,741 13 Commercial 2,565 2,571 2,239 186 51 1,236 2,519 2,287 27 Construction of commercial — — 143 — — — 3 72 — Farm land — — — — — 204 428 211 — Vacant land 42 42 42 2 1 143 163 145 5 Real estate secured 7,279 7,641 5,501 361 119 4,057 6,347 6,456 45 Commercial and industrial 3 3 — — — 135 236 395 3 Consumer 41 41 6 35 — — — 6 — Totals $ 7,323 $ 7,685 $ 5,507 $ 396 $ 119 $ 4,192 $ 6,583 $ 6,857 $ 48 Note: The income recognized is for the six month period ended June 30, 2019. |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Assets and liabilities as well as the costs of operating and financial leases | ($ in thousands, except lease term and discount rate) Classification June 30, 2020 December 31, 2019 Assets Operating Other assets $ 1,258 $ 1,360 Finance Bank premises and equipment 1 1,453 1,503 Total Leased Assets $ 2,711 $ 2,863 Liabilities Operating Other liabilities $ 1,258 $ 1,360 Finance Finance lease 1,696 1,718 Total lease liabilities $ 2,954 $ 3,078 1 Lease cost Classification Six months ended June 30, 2020 Three months ended June 30, 2020 Operating leases Premises and equipment $ 123 $ 61 Finance leases: Amortization of leased assets Premises and equipment 51 25 Interest on finance leases Interest expense 71 36 Total lease cost $ 245 $ 122 Lease cost Classification Six months ended June 30, 2019 Three months ended June 30, 2019 Operating leases Premises and equipment $ 123 $ 61 Finance leases: Amortization of leased assets Premises and equipment 120 47 Interest on finance leases Interest expense 92 46 Total lease cost $ 335 $ 154 Weighted Average Remaining Lease Term June 30, 2020 December 31, 2019 Operating leases 8.3 years 8.6 years Financing leases 14.9 years 13.1 years Weighted Average Discount Rate 1 Operating leases 3.73% 3.70% Financing leases 8.38% 6.20% 1 |
Present value of the net minimum lease payments | Future minimum lease payments (in thousands) Operating Leases Finance Leases 2020 $ 128 $ 93 2021 250 192 2022 198 195 2023 148 197 2024 129 200 Thereafter 654 1,980 Total future minimum lease payments 1,507 2,857 Less amount representing interest (249 ) (1,161 ) Total present value of net future minimum lease payments $ 1,258 $ 1,696 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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) June 30, 2020 December 31, 2019 Residential mortgage loans serviced for others $ 110,933 $ 106,255 Fair value of mortgage servicing rights 613 813 |
Changes in mortgage servicing rights | Three months ended Six months ended Periods ended June 30, (in thousands) 2020 2019 2020 2019 Mortgage Servicing Rights Balance, beginning of period $ 255 $ 221 $ 238 $ 228 Originated 110 1 143 5 Amortization (1) (12 ) (13 ) (28 ) (24 ) Balance, end of period $ 353 $ 209 $ 353 $ 209 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net. |
PLEDGED ASSETS (Tables)
PLEDGED ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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) June 30, 2020 December 31, 2019 Securities available-for-sale (at fair value) $ 54,195 $ 52,845 Loans receivable (at book value) 428,772 434,329 Total pledged assets $ 482,967 $ 487,174 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | Three months ended Six months ended Periods ended June 30, (in thousands, except per share data) 2020 2019 2020 2019 Net income $ 2,734 $ 2,703 $ 4,781 $ 5,137 Less: Undistributed earnings allocated to participating securities (43 ) (32 ) (77 ) (58 ) Net income allocated to common stock $ 2,691 $ 2,671 $ 4,704 $ 5,079 Weighted-average common shares issued 2,834 2,813 2,831 2,810 Less: Unvested restricted stock awards (38 ) (33 ) (38 ) (31 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,796 2,780 2,793 2,779 Add: Dilutive effect of stock options 7 20 8 16 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,803 2,800 2,801 2,795 Earnings per common share (basic) $ 0.96 $ 0.96 $ 1.68 $ 1.83 Earnings per common share (diluted) $ 0.96 $ 0.95 $ 1.68 $ 1.82 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Actual regulatory capital position and minimum capital requirements | Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2020 Total Capital (to risk-weighted assets) $ 120,802 13.15 % $ 73,480 8.0 % $ 96,443 10.5 % $ 91,850 10.0 % Tier 1 Capital (to risk-weighted assets) 109,309 11.90 55,110 6.0 78,073 8.5 73,480 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 109,309 11.90 41,333 4.5 64,295 7.0 59,703 6.5 Tier 1 Capital (to average assets) $ 109,309 8.95 $ 48,856 4.0 $ 48,856 4.0 $ 61,071 5.0 December 31, 2019 Total Capital (to risk-weighted assets) $ 114,421 12.84 % $ 71,278 8.0 % $ 93,553 10.5 % $ 89,098 10.0 % Tier 1 Capital (to risk-weighted assets) 105,430 11.83 53,459 6.0 75,733 8.5 71,278 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 105,430 11.83 40,094 4.5 62,368 7.0 57,914 6.5 Tier 1 Capital (to average assets) $ 105,430 9.60 $ 43,944 4.0 $ 43,944 4.0 $ 54,930 5.0 |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,361 $ — $ 4,361 Municipal bonds — 25,896 — 25,896 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 32,025 — 32,025 Collateralized mortgage obligations: U.S. Government agencies — 21,048 — 21,048 Corporate bonds — 6,122 — 6,122 Securities available-for-sale $ — $ 89,452 $ — $ 89,452 CRA mutual funds 912 — — 912 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 1,282 $ 1,282 Other real estate owned $ — $ — $ — $ — December 31, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,644 $ — $ 4,644 Municipal bonds — 27,193 — 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 29,357 — 29,357 Collateralized mortgage obligations: U.S. Government agencies — 25,499 — 25,499 Corporate bonds — 5,108 — 5,108 Securities available-for-sale $ — $ 91,801 $ — $ 91,801 CRA mutual funds 882 — — 882 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 1,593 $ 1,593 Other real estate owned $ — $ — $ 314 $ 314 |
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 June 30, 2020 Financial Assets Cash and cash equivalents $ 84,495 $ 84,495 $ 84,495 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale, net 89,452 89,452 — 89,452 — CRA mutual fund 912 912 912 — — Federal Home Loan Bank of Boston stock 3,353 3,353 3,353 — — Loans held-for-sale 5,313 5,392 — — 5,392 Loans receivable, net 1,040,358 1,062,289 — — 1,062,289 Accrued interest receivable 3,988 3,988 3,988 — — Cash surrender value of life insurance policies 20,846 20,846 20,846 — — Financial Liabilities Demand (non-interest-bearing) $ 325,531 $ 325,531 $ — $ 325,531 $ — Demand (interest-bearing) 188,487 188,487 — 188,487 — Money market 251,242 251,242 — 251,242 — Savings and other 170,537 170,537 — 170,537 — Certificates of deposit 149,802 151,315 — 151,315 — Deposits 1,085,599 1,087,112 — 1,087,112 — Repurchase agreements 7,809 7,809 — 7,809 — FHLBB advances 55,118 55,377 — 55,377 — Subordinated debt 9,871 9,910 9,910 — — Note payable 228 231 — 231 — Finance lease obligation 1,696 1,902 — — 1,902 Accrued interest payable 187 187 187 — — December 31, 2019 Financial Assets Cash and cash equivalents $ 26,885 $ 26,885 $ 26,885 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 91,801 91,801 — 91,801 — CRA mutual fund 882 882 882 — — Federal Home Loan Bank of Boston stock 3,242 3,242 3,242 — — Loans held-for-sale 332 334 — — 334 Loans receivable, net 927,413 933,287 — — 933,287 Accrued interest receivable 3,415 3,415 3,415 — — Cash surrender value of life insurance policies 20,580 20,580 20,580 — — Financial Liabilities Demand (non-interest-bearing) $ 237,852 $ 237,852 $ — $ 237,852 $ — Demand (interest-bearing) 153,314 153,314 — 153,314 — Money market 239,504 239,504 — 239,504 — Savings and other 161,112 161,112 — 161,112 — Certificates of deposit 127,724 128,629 — 128,629 — Deposits 919,506 920,411 — 920,411 — Repurchase agreements 8,530 8,530 — 8,530 — FHLBB advances 50,887 51,028 — 51,028 — Subordinated debt 9,859 10,113 10,113 — — Note payable 246 251 — 251 — Finance lease liability 1,718 1,967 — — 1,967 Accrued interest payable 78 78 78 — — |
SECURITIES - Composition of Sec
SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized cost basis (1) | ||
Available-for-sale | ||
U.S. Government Agency notes | $ 4,186 | $ 4,520 |
Municipal bonds | 24,701 | 26,562 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 30,881 | 28,961 |
Collateralized mortgage obligations, U.S. Government Agencies | 20,349 | 25,041 |
Corporate bonds | 6,000 | 5,000 |
Total securities available-for-sale | 86,117 | 90,084 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | 3,353 | 3,242 |
Gross unrealized gains | ||
Available-for-sale | ||
U.S. Government Agency notes | 176 | 125 |
Municipal bonds | 1,207 | 704 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 1,179 | 420 |
Collateralized mortgage obligations, U.S. Government Agencies | 699 | 468 |
Corporate bonds | 147 | 108 |
Total securities available-for-sale | 3,408 | 1,825 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Gross unrealized losses | ||
Available-for-sale | ||
U.S. Government Agency notes | 1 | 1 |
Municipal bonds | 12 | 73 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 35 | 24 |
Collateralized mortgage obligations, U.S. Government Agencies | 10 | |
Corporate bonds | 25 | |
Total securities available-for-sale | 73 | 108 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Fair value | ||
Available-for-sale | ||
U.S. Government Agency notes | 4,361 | 4,644 |
Municipal bonds | 25,896 | 27,193 |
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises | 32,025 | 29,357 |
Collateralized mortgage obligations, U.S. Government Agencies | 21,048 | 25,499 |
Corporate bonds | 6,122 | 5,108 |
Total securities available-for-sale | 89,452 | 91,801 |
CRA mutual funds | 912 | 882 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | $ 3,353 | $ 3,242 |
SECURITIES - Aggreggate fair va
SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Less Than 12 Months, Fair value | ||
Available-for-sale | ||
U.S. Government Agency notes | ||
Municipal bonds | 2,074 | 6,273 |
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises | 4,160 | 5,781 |
Collateralized mortgage obligations: U.S. Government agencies | 1,438 | |
Corporate bonds | 725 | |
Total temporarily impaired securities | 6,959 | 13,492 |
Less Than 12 Months, Unrealized losses | ||
Available-for-sale | ||
U.S. Government Agency notes | ||
Municipal bonds | 12 | 73 |
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises | 34 | 22 |
Collateralized mortgage obligations: U.S. Government agencies | 10 | |
Corporate bonds | 25 | |
Total temporarily impaired securities | 71 | 105 |
12 Months or Longer, Fair value | ||
Available-for-sale | ||
U.S. Government Agency notes | 102 | 195 |
Municipal bonds | ||
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises | 105 | 704 |
Collateralized mortgage obligations: U.S. Government agencies | ||
Corporate bonds | ||
Total temporarily impaired securities | 207 | 899 |
12 Months or Longer, Unrealized losses | ||
Available-for-sale | ||
U.S. Government Agency notes | 1 | 1 |
Municipal bonds | ||
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises | 1 | 2 |
Collateralized mortgage obligations: U.S. Government agencies | ||
Corporate bonds | ||
Total temporarily impaired securities | 2 | 3 |
Total, Fair value | ||
Available-for-sale | ||
U.S. Government Agency notes | 102 | 195 |
Municipal bonds | 2,074 | 6,273 |
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises | 4,265 | 6,485 |
Collateralized mortgage obligations: U.S. Government agencies | 1,438 | |
Corporate bonds | 725 | |
Total temporarily impaired securities | 7,166 | 14,391 |
Total, Unrealized losses | ||
Available-for-sale | ||
U.S. Government Agency notes | 1 | 1 |
Municipal bonds | 12 | 73 |
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises | 35 | 24 |
Collateralized mortgage obligations: U.S. Government agencies | 10 | |
Corporate bonds | 25 | |
Total temporarily impaired securities | $ 73 | $ 108 |
SECURITIES - Amortized cost, fa
SECURITIES - Amortized cost, fair value and tax equivalent yield of securities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
U.S. Government agency notes - After 5 years but within 10 years | |
Amortized cost | $ 2,496 |
Fair value | $ 2,557 |
Yield | 3.48% |
U.S. Government agency notes - Total | |
Amortized cost | $ 2,496 |
Fair value | $ 2,557 |
Yield | 3.48% |
Municipal bonds - After 5 year but within 10 years | |
Amortized cost | $ 1,720 |
Fair value | $ 1,881 |
Yield | 3.16% |
Municipal bonds - After 10 years | |
Amortized cost | $ 22,981 |
Fair value | $ 24,015 |
Yield | 3.07% |
Municipal bonds - Total | |
Amortized cost | $ 24,701 |
Fair value | $ 25,896 |
Yield | 3.08% |
Mortgage-backed securities and Collateralized mortgage obligations - U.S. Government agencies | |
Amortized cost | $ 52,920 |
Fair value | $ 54,877 |
Yield | 2.85% |
Corporate bonds - After 5 years but within 10 years | |
Amortized cost | $ 6,000 |
Fair value | $ 6,122 |
Yield | 5.21% |
Securities available-for-sale | |
Amortized cost | $ 86,117 |
Fair value | $ 89,452 |
Yield | 3.17% |
SECURITIES (Details Narrative)
SECURITIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Sales of securities available-for-sale | $ 10,600 | $ 27,200 | $ 10,598 | $ 28,170 |
Pre-tax gain on sale of securities available-for-sale | 181 | 281 | 182 | 272 |
Related tax expense on sale of securities available-for-sale | $ (38) | $ (59) | $ (38) | $ (57) |
LOANS - Composition of loans re
LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loans receivable, net | $ 1,040,358 | $ 927,413 |
Total | ||
Residential 1-4 family | 357,518 | 346,299 |
Residential 5+ multifamily | 38,353 | 35,455 |
Construction of residential 1-4 family | 11,041 | 11,889 |
Home equity lines of credit | 30,286 | 33,798 |
Residential real estate | 437,198 | 427,441 |
Commercial | 309,935 | 289,795 |
Construction of commercial | 13,699 | 8,466 |
Commercial real estate | 323,634 | 298,261 |
Farm land | 3,324 | 3,641 |
Vacant land | 13,879 | 7,893 |
Real estate secured | 778,035 | 737,236 |
Commercial and industrial | 247,440 | 169,411 |
Municipal | 20,707 | 21,914 |
Consumer | 7,886 | 6,385 |
Loans receivable, gross | 1,054,068 | 934,946 |
Deferred loan origination (fees) and costs, net | (1,339) | 1,362 |
Loans receivable, gross | 1,052,729 | 936,308 |
Allowance for loan losses | (12,371) | (8,895) |
Loans receivable, net | 1,040,358 | 927,413 |
Loans held-for-sale | ||
Residential 1-4 family | $ 5,313 | $ 332 |
LOANS - Composition of loans _2
LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Pass | ||
Residential 1-4 family | $ 350,494 | $ 337,302 |
Residential 5+ multifamily | 36,539 | 33,619 |
Construction of residential 1-4 family | 11,041 | 11,889 |
Home equity lines of credit | 29,689 | 33,381 |
Residential real estate | 427,763 | 416,191 |
Commercial | 292,546 | 271,708 |
Construction of commercial | 13,464 | 8,225 |
Commercial real estate | 306,010 | 279,933 |
Farm land | 1,637 | 1,934 |
Vacant land | 13,785 | 7,834 |
Real estate secured | 749,195 | 705,892 |
Commercial and industrial | 245,768 | 167,458 |
Municipal | 20,707 | 21,914 |
Consumer | 7,851 | 6,344 |
Loans receivable, gross | 1,023,521 | 901,608 |
Special mention | ||
Residential 1-4 family | 3,357 | 4,278 |
Residential 5+ multifamily | 96 | 99 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 332 | 312 |
Residential real estate | 3,785 | 4,689 |
Commercial | 3,081 | 10,964 |
Construction of commercial | ||
Commercial real estate | 3,081 | 10,964 |
Farm land | ||
Vacant land | 55 | 59 |
Real estate secured | 6,921 | 15,712 |
Commercial and industrial | 581 | 443 |
Municipal | ||
Consumer | 3 | 3 |
Loans receivable, gross | 7,505 | 16,158 |
Substandard | ||
Residential 1-4 family | 3,667 | 4,719 |
Residential 5+ multifamily | 1,718 | 1,737 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 265 | 105 |
Residential real estate | 5,650 | 6,561 |
Commercial | 14,237 | 7,052 |
Construction of commercial | 235 | 241 |
Commercial real estate | 14,472 | 7,293 |
Farm land | 1,687 | 1,707 |
Vacant land | 39 | |
Real estate secured | 21,848 | 15,561 |
Commercial and industrial | 731 | 1,510 |
Municipal | ||
Consumer | 32 | 38 |
Loans receivable, gross | 22,611 | 17,109 |
Doubtful | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | ||
Residential real estate | ||
Commercial | 71 | 71 |
Construction of commercial | ||
Commercial real estate | 71 | 71 |
Farm land | ||
Vacant land | ||
Real estate secured | 71 | 71 |
Commercial and industrial | 360 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 431 | 71 |
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 | 357,518 | 346,299 |
Residential 5+ multifamily | 38,353 | 35,455 |
Construction of residential 1-4 family | 11,041 | 11,889 |
Home equity lines of credit | 30,286 | 33,798 |
Residential real estate | 437,198 | 427,441 |
Commercial | 309,935 | 289,795 |
Construction of commercial | 13,699 | 8,466 |
Commercial real estate | 323,634 | 298,261 |
Farm land | 3,324 | 3,641 |
Vacant land | 13,879 | 7,893 |
Real estate secured | 778,035 | 737,236 |
Commercial and industrial | 247,440 | 169,411 |
Municipal | 20,707 | 21,914 |
Consumer | 7,886 | 6,385 |
Loans receivable, gross | $ 1,054,068 | $ 934,946 |
LOANS - Composition of loans _3
LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current | ||
Residential 1-4 family | $ 349,628 | $ 344,085 |
Residential 5+ multifamily | 34,147 | 34,594 |
Construction of residential 1-4 family | 12,214 | 11,889 |
Home equity lines of credit | 31,300 | 33,522 |
Residential real estate | 427,289 | 424,090 |
Commercial | 307,973 | 289,103 |
Construction of commercial | 10,922 | 8,466 |
Commercial real estate | 318,895 | 297,569 |
Farm land | 3,436 | 3,461 |
Vacant land | 14,447 | 7,852 |
Real estate secured | 764,067 | 732,972 |
Commercial and industrial | 157,341 | 169,262 |
Municipal | 20,964 | 21,914 |
Consumer | 8,190 | 6,382 |
Loans receivable, gross | 950,562 | 930,530 |
Past due 30-59 days | ||
Residential 1-4 family | 3,211 | 971 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 337 | 152 |
Residential real estate | 3,548 | 1,123 |
Commercial | 2,114 | 336 |
Construction of commercial | ||
Commercial real estate | 2,114 | 336 |
Farm land | 176 | 180 |
Vacant land | ||
Real estate secured | 5,838 | 1,639 |
Commercial and industrial | 83 | 2 |
Municipal | ||
Consumer | 4 | |
Loans receivable, gross | 5,925 | 1,641 |
Past due 60-89 days | ||
Residential 1-4 family | 236 | 351 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 89 | 46 |
Residential real estate | 325 | 397 |
Commercial | 278 | 141 |
Construction of commercial | ||
Commercial real estate | 278 | 141 |
Farm land | ||
Vacant land | 41 | |
Real estate secured | 603 | 579 |
Commercial and industrial | 25 | 146 |
Municipal | ||
Consumer | 1 | 1 |
Loans receivable, gross | 629 | 726 |
Past due 90-179 days | ||
Residential 1-4 family | 37 | 200 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 103 | |
Residential real estate | 140 | 200 |
Commercial | 71 | |
Construction of commercial | ||
Commercial real estate | 71 | |
Farm land | ||
Vacant land | 41 | |
Real estate secured | 181 | 271 |
Commercial and industrial | 124 | 1 |
Municipal | ||
Consumer | 2 | |
Loans receivable, gross | 305 | 274 |
Past due 180 days and over | ||
Residential 1-4 family | 692 | |
Residential 5+ multifamily | 861 | 861 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 78 | 78 |
Residential real estate | 939 | 1,631 |
Commercial | 71 | 144 |
Construction of commercial | ||
Commercial real estate | 71 | 144 |
Farm land | ||
Vacant land | ||
Real estate secured | 1,010 | 1,775 |
Commercial and industrial | ||
Municipal | ||
Consumer | ||
Loans receivable, gross | 1,010 | 1,775 |
Past due 30 days and over | ||
Residential 1-4 family | 3,484 | 2,214 |
Residential 5+ multifamily | 861 | 861 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 607 | 276 |
Residential real estate | 4,952 | 3,351 |
Commercial | 2,463 | 692 |
Construction of commercial | ||
Commercial real estate | 2,463 | 692 |
Farm land | 176 | 180 |
Vacant land | 41 | 41 |
Real estate secured | 7,632 | 4,264 |
Commercial and industrial | 232 | 149 |
Municipal | ||
Consumer | 5 | 3 |
Loans receivable, gross | 7,869 | 4,416 |
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 | 41 | |
Real estate secured | 41 | |
Commercial and industrial | 27 | 1 |
Municipal | ||
Consumer | 2 | |
Loans receivable, gross | 68 | 3 |
Non-accrual | ||
Residential 1-4 family | 1,019 | 1,551 |
Residential 5+ multifamily | 861 | 861 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 207 | 105 |
Residential real estate | 2,087 | 2,517 |
Commercial | 755 | 914 |
Construction of commercial | ||
Commercial real estate | 755 | 914 |
Farm land | 181 | 186 |
Vacant land | ||
Real estate secured | 3,023 | 3,617 |
Commercial and industrial | 97 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 3,120 | $ 3,617 |
LOANS - Troubled debt restructu
LOANS - Troubled debt restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)Integer | Jun. 30, 2019USD ($)Integer | Jun. 30, 2020USD ($)Integer | Jun. 30, 2019USD ($)Integer | |
Residential real estate | ||||
Quantity of troubled debt restructurings | Integer | 2 | 2 | ||
Pre-modification balance | $ 623 | $ 623 | ||
Post-modification balance | $ 623 | $ 623 | ||
Commercial real estate | ||||
Quantity of troubled debt restructurings | Integer | 1 | |||
Pre-modification balance | $ 133 | |||
Post-modification balance | $ 133 | |||
Consumer | ||||
Quantity of troubled debt restructurings | Integer | 1 | 1 | 1 | |
Pre-modification balance | $ 42 | $ 42 | ||
Post-modification balance | $ 42 | $ 42 | ||
Troubled debt restructurings | ||||
Quantity of troubled debt restructurings | Integer | 3 | 1 | 3 | |
Pre-modification balance | $ 665 | $ 133 | $ 665 | |
Post-modification balance | $ 665 | $ 133 | $ 665 | |
Interest only payments to sell property | ||||
Quantity of troubled debt restructurings | Integer | ||||
Pre-modification balance | ||||
Post-modification balance | ||||
Rate reduction | ||||
Quantity of troubled debt restructurings | Integer | 3 | 3 | ||
Pre-modification balance | $ 665 | $ 665 | ||
Post-modification balance | $ 665 | $ 665 | ||
Modification and Rate reduction | ||||
Quantity of troubled debt restructurings | Integer | ||||
Pre-modification balance | ||||
Post-modification balance | ||||
Workout refinance. Extension of new funds to pay outstanding taxes | ||||
Quantity of troubled debt restructurings | Integer | 1 | |||
Pre-modification balance | $ 133 | |||
Post-modification balance | $ 133 | |||
Modification and term extension | ||||
Quantity of troubled debt restructurings | Integer | ||||
Pre-modification balance | ||||
Post-modification balance |
LOANS - Changes in allowance fo
LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Residential 1-4 family | ||||
Beginning balance | $ 2,706 | $ 1,980 | $ 2,393 | $ 2,149 |
Acquisition Discount Transfer | 10 | |||
Provision | 342 | 95 | 647 | (85) |
Charge-offs | (1) | (1) | ||
Recoveries | 8 | 1 | ||
Ending balance | 3,048 | 2,074 | 3,048 | 2,074 |
Residential 5+ multifamily | ||||
Beginning balance | 508 | 466 | 446 | 413 |
Acquisition Discount Transfer | ||||
Provision | 122 | 29 | 185 | 82 |
Charge-offs | (41) | (42) | ||
Recoveries | ||||
Ending balance | 589 | 495 | 589 | 495 |
Construction of residential 1-4 family | ||||
Beginning balance | 87 | 77 | 75 | 83 |
Acquisition Discount Transfer | ||||
Provision | 2 | 12 | (4) | |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 87 | 79 | 87 | 79 |
Home equity lines of credit | ||||
Beginning balance | 278 | 209 | 197 | 219 |
Acquisition Discount Transfer | 1 | |||
Provision | 5 | 15 | 81 | 4 |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 283 | 224 | 283 | 224 |
Residential real estate | ||||
Beginning balance | 3,579 | 2,732 | 3,111 | 2,864 |
Acquisition Discount Transfer | 11 | |||
Provision | 469 | 141 | 930 | (3) |
Charge-offs | (41) | (1) | (42) | (1) |
Recoveries | 8 | 1 | ||
Ending balance | 4,007 | 2,872 | 4,007 | 2,872 |
Commercial | ||||
Beginning balance | 4,519 | 3,803 | 3,742 | 3,048 |
Acquisition Discount Transfer | 488 | |||
Provision | 645 | (13) | 1,402 | 262 |
Charge-offs | (4) | (14) | (3) | (23) |
Recoveries | 1 | 19 | 2 | |
Ending balance | 5,160 | 3,777 | 5,160 | 3,777 |
Construction of commercial | ||||
Beginning balance | 126 | 143 | 104 | 122 |
Acquisition Discount Transfer | ||||
Provision | 79 | (16) | 101 | 5 |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 205 | 127 | 205 | 127 |
Commercial real estate | ||||
Beginning balance | 4,645 | 3,946 | 3,846 | 3,170 |
Acquisition Discount Transfer | 488 | |||
Provision | 724 | (29) | 1,503 | 267 |
Charge-offs | (4) | (14) | (3) | (23) |
Recoveries | 1 | 19 | 2 | |
Ending balance | 5,365 | 3,904 | 5,365 | 3,904 |
Farm land | ||||
Beginning balance | 52 | 47 | 47 | 33 |
Acquisition Discount Transfer | ||||
Provision | 8 | 13 | 14 | |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 60 | 47 | 60 | 47 |
Vacant land | ||||
Beginning balance | 144 | 89 | 71 | 100 |
Acquisition Discount Transfer | ||||
Provision | 38 | 111 | (11) | |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 182 | 89 | 182 | 89 |
Real estate secured | ||||
Beginning balance | 8,420 | 6,814 | 7,075 | 6,167 |
Acquisition Discount Transfer | 499 | |||
Provision | 1,239 | 112 | 2,557 | 267 |
Charge-offs | (45) | (15) | (45) | (24) |
Recoveries | 1 | 27 | 3 | |
Ending balance | 9,614 | 6,912 | 9,614 | 6,912 |
Commercial real estate | ||||
Beginning balance | 1,071 | 1,233 | 1,145 | 1,158 |
Acquisition Discount Transfer | 164 | |||
Provision | 444 | (67) | 370 | (127) |
Charge-offs | (19) | (50) | ||
Recoveries | 29 | 31 | ||
Ending balance | 1,515 | 1,176 | 1,515 | 1,176 |
Municipal | ||||
Beginning balance | 53 | 14 | 46 | 12 |
Acquisition Discount Transfer | ||||
Provision | (17) | 16 | (10) | 18 |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 36 | 30 | 36 | 30 |
Consumer | ||||
Beginning balance | 102 | 51 | 60 | 56 |
Acquisition Discount Transfer | ||||
Provision | (20) | 40 | 32 | 37 |
Charge-offs | (13) | (18) | (25) | (24) |
Recoveries | 5 | 8 | 7 | 12 |
Ending balance | 74 | 81 | 74 | 81 |
Unallocated | ||||
Beginning balance | 972 | 638 | 569 | 438 |
Acquisition Discount Transfer | ||||
Provision | 160 | 50 | 563 | 250 |
Charge-offs | ||||
Recoveries | ||||
Ending balance | 1,132 | 688 | 1,132 | 688 |
Total | ||||
Beginning balance | 10,618 | 8,750 | 8,895 | 7,831 |
Acquisition Discount Transfer | 663 | |||
Provision | 1,806 | 151 | 3,512 | 445 |
Charge-offs | (58) | (52) | (70) | (98) |
Recoveries | 5 | 38 | 34 | 46 |
Ending balance | $ 12,371 | $ 8,887 | $ 12,371 | $ 8,887 |
LOANS - Composition of loans _4
LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Totals | $ 1,040,358 | $ 927,413 |
Collectively evaluated Loans | ||
Residential 1-4 family | 352,590 | 340,847 |
Residential 5+ multifamily | 37,382 | 34,478 |
Construction of residential 1-4 family | 11,041 | 11,889 |
Home equity lines credit | 30,021 | 33,693 |
Residential real estate | 431,034 | 420,907 |
Commercial | 305,393 | 285,462 |
Construction of commercial | 13,699 | 8,466 |
Commercial real estate | 319,092 | 293,928 |
Farm land | 3,150 | 3,455 |
Vacant land | 13,705 | 7,713 |
Real estate secured | 766,981 | 726,003 |
Commercial and industrial | 246,544 | 169,285 |
Municipal | 20,707 | 21,914 |
Consumer | 7,855 | 6,349 |
Unallocated allowance | ||
Totals | 1,042,087 | 923,551 |
Collectively evaluated Allowance | ||
Residential 1-4 family | 2,642 | 2,117 |
Residential 5+ multifamily | 589 | 446 |
Construction of residential 1-4 family | 87 | 75 |
Home equity lines credit | 263 | 197 |
Residential real estate | 3,581 | 2,835 |
Commercial | 4,836 | 3,333 |
Construction of commercial | 205 | 104 |
Commercial real estate | 5,041 | 3,437 |
Farm land | 60 | 47 |
Vacant land | 179 | 66 |
Real estate secured | 8,861 | 6,385 |
Commercial and industrial | 1,139 | 1,143 |
Municipal | 36 | 46 |
Consumer | 55 | 59 |
Unallocated allowance | 1,132 | 569 |
Totals | 11,223 | 8,202 |
Individually evaluated Loans | ||
Residential 1-4 family | 4,928 | 5,452 |
Residential 5+ multifamily | 971 | 977 |
Construction of residential 1-4 family | ||
Home equity lines credit | 265 | 105 |
Residential real estate | 6,164 | 6,534 |
Commercial | 4,542 | 4,333 |
Construction of commercial | ||
Commercial real estate | 4,542 | 4,333 |
Farm land | 174 | 186 |
Vacant land | 174 | 180 |
Real estate secured | 11,054 | 11,233 |
Commercial and industrial | 896 | 126 |
Municipal | ||
Consumer | 31 | 36 |
Unallocated allowance | ||
Totals | 11,981 | 11,395 |
Individually evaluated Allowance | ||
Residential 1-4 family | 406 | 276 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines credit | 20 | |
Residential real estate | 426 | 276 |
Commercial | 324 | 409 |
Construction of commercial | ||
Commercial real estate | 324 | 409 |
Farm land | ||
Vacant land | 3 | 5 |
Real estate secured | 753 | 690 |
Commercial and industrial | 376 | 2 |
Municipal | ||
Consumer | 19 | 1 |
Unallocated allowance | ||
Totals | 1,148 | 693 |
Total portfolio Loans | ||
Residential 1-4 family | 357,518 | 346,299 |
Residential 5+ multifamily | 38,353 | 35,455 |
Construction of residential 1-4 family | 11,041 | 11,889 |
Home equity lines credit | 30,286 | 33,798 |
Residential real estate | 437,198 | 427,441 |
Commercial | 309,935 | 289,795 |
Construction of commercial | 13,699 | 8,466 |
Commercial real estate | 323,634 | 298,261 |
Farm land | 3,324 | 3,641 |
Vacant land | 13,879 | 7,893 |
Real estate secured | 778,035 | 737,236 |
Commercial and industrial | 247,440 | 169,411 |
Municipal | 20,707 | 21,914 |
Consumer | 7,886 | 6,385 |
Unallocated allowance | ||
Totals | 1,054,068 | 934,946 |
Total portfolio Allowance | ||
Residential 1-4 family | 3,048 | 2,393 |
Residential 5+ multifamily | 589 | 446 |
Construction of residential 1-4 family | 87 | 75 |
Home equity lines credit | 283 | 197 |
Residential real estate | 4,007 | 3,111 |
Commercial | 5,160 | 3,742 |
Construction of commercial | 205 | 104 |
Commercial real estate | 5,365 | 3,846 |
Farm land | 60 | 47 |
Vacant land | 182 | 71 |
Real estate secured | 9,614 | 7,075 |
Commercial and industrial | 1,515 | 1,145 |
Municipal | 36 | 46 |
Consumer | 74 | 60 |
Unallocated allowance | 1,132 | 569 |
Totals | $ 12,371 | $ 8,895 |
LOANS - Credit quality segments
LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Totals | $ 1,040,358 | $ 927,413 |
Collectively evaluated Loans | ||
Performing loans | 1,027,217 | 913,648 |
Potential problem loans | 14,870 | 9,903 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 1,042,087 | 923,551 |
Collectively evaluated Allowance | ||
Performing loans | 9,157 | 7,251 |
Potential problem loans | 934 | 382 |
Impaired loans | ||
Unallocated allowance | 1,132 | 569 |
Totals | 11,223 | 8,202 |
Individually evaluated Loans | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 11,981 | 11,395 |
Unallocated allowance | ||
Totals | 11,981 | 11,395 |
Individually evaluated Allowance | ||
Performing loans | ||
Potential problem loans | ||
Impaired loans | 1,148 | 693 |
Unallocated allowance | ||
Totals | 1,148 | 693 |
Total portfolio Loans | ||
Performing loans | 1,027,217 | 913,648 |
Potential problem loans | 14,870 | 9,903 |
Impaired loans | 11,981 | 11,395 |
Unallocated allowance | ||
Totals | 1,054,068 | 934,946 |
Total portfolio Allowance | ||
Performing loans | 9,157 | 7,251 |
Potential problem loans | 934 | 382 |
Impaired loans | 1,148 | 693 |
Unallocated allowance | 1,132 | 569 |
Totals | $ 12,371 | $ 8,895 |
LOANS - Certain data with respe
LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Totals | $ 1,040,358 | $ 927,413 | |
Impaired loans with specific allowance - Loan balance - Book | |||
Residential | 4,203 | 4,111 | $ 4,629 |
Home equity lines of credit | 227 | 43 | |
Residential real estate | 4,430 | 4,111 | 4,672 |
Commercial | 3,727 | 3,309 | 2,565 |
Construction of commercial | |||
Farm land | |||
Vacant land | 39 | 41 | 42 |
Real estate secured | 8,196 | 7,461 | 7,279 |
Commercial and industrial | 896 | 93 | 3 |
Consumer | 31 | 36 | 41 |
Totals | 9,123 | 7,590 | 7,323 |
Impaired loans with specific allowance - Loan balance - Note | |||
Residential | 4,345 | 4,190 | 4,985 |
Home equity lines of credit | 540 | 43 | |
Residential real estate | 4,885 | 4,190 | 5,028 |
Commercial | 3,818 | 3,335 | 2,571 |
Construction of commercial | |||
Farm land | |||
Vacant land | 41 | 41 | 42 |
Real estate secured | 8,744 | 7,566 | 7,641 |
Commercial and industrial | 901 | 97 | 3 |
Consumer | 31 | 36 | 41 |
Totals | 9,676 | 7,699 | 7,685 |
Impaired loans with specific allowance - Loan balance - Average | |||
Residential | 4,066 | 3,725 | 3,032 |
Home equity lines of credit | 79 | 52 | 45 |
Residential real estate | 4,145 | 3,777 | 3,077 |
Commercial | 3,452 | 2,574 | 2,239 |
Construction of commercial | 77 | 143 | |
Farm land | |||
Vacant land | 40 | 42 | 42 |
Real estate secured | 7,637 | 6,470 | 5,501 |
Commercial and industrial | 241 | 16 | |
Consumer | 34 | 21 | 6 |
Totals | 7,912 | 6,507 | 5,507 |
Impaired loans with specific allowance - Specific allowance | |||
Residential | 406 | 276 | 172 |
Home equity lines of credit | 20 | 1 | |
Residential real estate | 426 | 276 | 173 |
Commercial | 324 | 409 | 186 |
Construction of commercial | |||
Farm land | |||
Vacant land | 3 | 5 | 2 |
Real estate secured | 753 | 690 | 361 |
Commercial and industrial | 376 | 2 | |
Consumer | 19 | 1 | 35 |
Totals | 1,148 | 693 | 396 |
Impaired loans with specific allowance - Income recognized | |||
Residential | 45 | 162 | 66 |
Home equity lines of credit | 1 | ||
Residential real estate | 45 | 162 | 67 |
Commercial | 75 | 90 | 51 |
Construction of commercial | |||
Farm land | |||
Vacant land | 3 | 1 | |
Real estate secured | 120 | 255 | 119 |
Commercial and industrial | 7 | 4 | |
Consumer | 1 | ||
Totals | 128 | 259 | 119 |
Impaired loans with no specific allowance - Loan balance - Book | |||
Residential | 1,696 | 2,318 | 1,991 |
Home equity lines of credit | 38 | 105 | 483 |
Residential real estate | 1,734 | 2,423 | 2,474 |
Commercial | 816 | 1,024 | 1,236 |
Construction of commercial | |||
Farm land | 174 | 186 | 204 |
Vacant land | 134 | 139 | 143 |
Real estate secured | 2,858 | 3,772 | 4,057 |
Commercial and industrial | 33 | 135 | |
Consumer | |||
Totals | 2,858 | 3,805 | 4,192 |
Impaired loans with no specific allowance - Loan balance - Note | |||
Residential | 2,043 | 3,081 | 2,659 |
Home equity lines of credit | 74 | 450 | 575 |
Residential real estate | 2,117 | 3,531 | 3,234 |
Commercial | 1,411 | 1,733 | 2,519 |
Construction of commercial | 3 | ||
Farm land | 325 | 329 | 428 |
Vacant land | 151 | 157 | 163 |
Real estate secured | 4,004 | 5,750 | 6,347 |
Commercial and industrial | 151 | 188 | 236 |
Consumer | |||
Totals | 4,155 | 5,938 | 6,583 |
Impaired loans with no specific allowance - Loan balance - Average | |||
Residential | 1,919 | 2,940 | 3,299 |
Home equity lines of credit | 100 | 391 | 442 |
Residential real estate | 2,019 | 3,331 | 3,741 |
Commercial | 899 | 1,747 | 2,287 |
Construction of commercial | 39 | 72 | |
Farm land | 181 | 203 | 211 |
Vacant land | 137 | 143 | 145 |
Real estate secured | 3,236 | 5,463 | 6,456 |
Commercial and industrial | 64 | 265 | 395 |
Consumer | 3 | 6 | |
Totals | 3,300 | 5,731 | 6,857 |
Impaired loans with no specific allowance - Income recognized | |||
Residential | 13 | 52 | 13 |
Home equity lines of credit | |||
Residential real estate | 13 | 52 | 13 |
Commercial | 16 | 54 | 27 |
Construction of commercial | |||
Farm land | |||
Vacant land | 5 | 10 | 5 |
Real estate secured | 34 | 116 | 45 |
Commercial and industrial | 4 | 3 | |
Consumer | |||
Totals | $ 34 | $ 120 | $ 48 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loans | ||
Commercial loans for other banks serviced by Company under loan participation agreements | $ 61,900 | $ 67,000 |
LEASES - Assets and liabilities
LEASES - Assets and liabilities as well as the costs of operating and financial leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases - Assets | |||||
Operating - Other assets | $ 1,258 | $ 1,258 | $ 1,360 | ||
Finance - Bank premises and equipment | 1,453 | 1,453 | 1,503 | ||
Total Leased Assets | 2,711 | 2,711 | 2,863 | ||
Leases - Liabilities | |||||
Operating - Other liabilities | 1,258 | 1,258 | 1,360 | ||
Finance - Finance lease | 1,696 | 1,696 | 1,718 | ||
Total lease liabilities | 2,954 | 2,954 | $ 3,078 | ||
Lease cost | |||||
Operating leases - Premises and equipment | 61 | $ 61 | 123 | $ 123 | |
Finance leases: Amortization of leased assets - Premises and equipment | 25 | 47 | 51 | 120 | |
Finance leases: Interest on finance leases - Interest expense | 36 | 46 | 71 | 92 | |
Total lease cost | $ 122 | $ 154 | $ 245 | $ 335 | |
Weighted Average Remaining Lease Term | |||||
Operating leases | 8 years 3 months 18 days | 8 years 3 months 18 days | 8 years 7 months 6 days | ||
Financing leases | 14 years 10 months 24 days | 14 years 10 months 24 days | 13 years 1 month 6 days | ||
Weighted Average Discount Rate | |||||
Operating leases | 3.73% | 3.73% | 3.70% | ||
Financing leases | 8.38% | 8.38% | 6.20% |
LEASES - Present value of the n
LEASES - Present value of the net minimum lease payments (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Operating Leases | |
2020 | $ 128 |
2021 | 250 |
2022 | 198 |
2023 | 148 |
2024 | 129 |
Thereafter | 654 |
Total future minimum lease payments | 1,507 |
Less amount representing interest | (249) |
Total present value of net future minimum lease payments | 1,258 |
Finance Leases | |
2020 | 93 |
2021 | 192 |
2022 | 195 |
2023 | 197 |
2024 | 200 |
Thereafter | 1,980 |
Total future minimum lease payments | 2,857 |
Less amount representing interest | (1,161) |
Total present value of net future minimum lease payments | $ 1,696 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Residential mortgage loans serviced for others | $ 110,933 | $ 106,255 |
Fair value of mortgage servicing rights | $ 613 | $ 813 |
MORTGAGE SERVICING RIGHTS - Cha
MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Mortgage Servicing Rights | ||||
Balance, beginning of period | $ 225 | $ 221 | $ 238 | $ 228 |
Originated | 110 | 1 | 143 | 5 |
Amortization | (12) | (13) | (28) | (24) |
Balance, end of period | $ 353 | $ 209 | $ 353 | $ 209 |
PLEDGED ASSETS - Securities and
PLEDGED ASSETS - Securities and loans pledged (Details) - Pledged Assets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Securities available-for-sale (at fair value) | $ 54,195 | $ 52,845 |
Loans receivable | 428,772 | 434,329 |
Total pledged assets | $ 482,967 | $ 487,174 |
PLEDGED ASSETS (Details Narrati
PLEDGED ASSETS (Details Narrative) $ in Thousands | Jun. 30, 2020USD ($) |
Guarantees [Abstract] | |
Securities pledged to secure public deposits | $ 45,680 |
Securities pledged to secure repurchase agreements | 8,470 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,734 | $ 2,703 | $ 4,781 | $ 5,137 |
Less: Undistributed earnings allocated to participating securities | (43) | (32) | (77) | (58) |
Net income allocated to common stock | 2,691 | 2,671 | 4,704 | 5,079 |
Weighted average common shares issued | 2,834 | 2,813 | 2,831 | 2,810 |
Less: Unvested restricted stock awards | (38) | (33) | (38) | (31) |
Weighted average common shares outstanding used to calculate basic earnings per common share | 2,796 | 2,780 | 2,793 | 2,779 |
Add: Dilutive effect of stock options | 7 | 20 | 8 | 16 |
Weighted average common shares outstanding used to calculate diluted earnings per common share | $ 2,803 | $ 2,800 | $ 2,801 | $ 2,795 |
Earnings per common share (basic) | $ 0.96 | $ 0.96 | $ 1.68 | $ 1.83 |
Earnings per common share (diluted) | $ 0.96 | $ 0.95 | $ 1.68 | $ 1.82 |
SHAREHOLDERS' EQUITY - Actual r
SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) $ in Thousands | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Total Capital (to risk-weighted assets) | ||
Actual - Amount | $ 120,802 | $ 114,421 |
Actual - Ratio | .1315 | .1284 |
Minimum Capital Required For Capital Adequacy - Amount | $ 73,480 | $ 71,278 |
Minimum Capital Required For Capital Adequacy - Ratio | .08 | .080 |
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount | $ 96,443 | $ 93,553 |
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio | 10.50% | 10.50% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 91,850 | $ 89,098 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | .100 | .100 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual - Amount | $ 109,309 | $ 105,430 |
Actual - Ratio | .1190 | .1183 |
Minimum Capital Required For Capital Adequacy - Amount | $ 55,110 | $ 53,459 |
Minimum Capital Required For Capital Adequacy - Ratio | .060 | .060 |
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount | $ 78,073 | $ 75,733 |
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio | 8.50% | 8.50% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 73,480 | $ 71,278 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 0.080 | 0.080 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual - Amount | $ 109,309 | $ 105,430 |
Actual - Ratio | .1190 | .1183 |
Minimum Capital Required For Capital Adequacy - Amount | $ 41,333 | $ 40,094 |
Minimum Capital Required For Capital Adequacy - Ratio | 4.50% | 4.50% |
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount | $ 64,295 | $ 62,368 |
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio | 7.00% | 7.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 59,703 | $ 57,914 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.50% | 6.50% |
Tier 1 Capital (to average assets) | ||
Actual - Amount | $ 109,309 | $ 105,430 |
Actual - Ratio | .0895 | .0960 |
Minimum Capital Required For Capital Adequacy - Amount | $ 48,856 | $ 43,944 |
Minimum Capital Required For Capital Adequacy - Ratio | 0.040 | 0.040 |
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount | $ 48,856 | $ 43,944 |
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $ 61,071 | $ 54,930 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 0.050 | 0.050 |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
Risk-weighted assets | $ 918,500 | $ 891,000 |
BENEFITS (Details Narrative)
BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Retirement Benefits [Abstract] | ||||
401(k) Plan contribution expense | $ 200 | $ 192 | $ 438 | $ 431 |
Employee Stock Ownership Plan (ESOP) | ||||
ESOP expense | 56 | 53 | 113 | 102 |
Other Retirement Plans | ||||
Restricted stock expense | 135 | 115 | 271 | 215 |
Tax benefit from restricted stock expense | 25 | 21 | 49 | 39 |
Expenses for Non-Qualified Deferred Compensation Plan | 33 | 29 | 67 | 58 |
Restricted stock | ||||
Compensation expense | 135 | 115 | 271 | 215 |
Unrecognized compensation cost relating to awards | $ 1,031 | $ 1,075 | $ 1,031 | $ 1,075 |
Forfeitures of restricted stock, shares | (700) | (360) | (700) | (460) |
Forfeitures of restricted stock, amount | $ (29) | $ (16) | $ (29) | $ (21) |
Performance-based restricted stock units | ||||
Performance-based restricted stock units pursuant to 2017 Long-Term Incentive Plan, compensation expense | $ 24 | $ 21 | $ 47 | $ 39 |
Options | ||||
Options exercised by former Riverside executive, issued in conjunction with Riverside Bank acquisition, shares | 1,755 | |||
Options exercised by former Riverside executive, issued in conjunction with Riverside Bank acquisition, exercise price | $ 17.04 | |||
Options exercised by former Riverside employee, issued in conjunction with Riverside Bank acquisition, shares | 2,025 | 1,350 | ||
Options exercised by former Riverside employee, issued in conjunction with Riverside Bank acquisition, exercise price | $ 17.04 | $ 17.04 |
FAIR VALUE OF ASSETS AND LIAB_3
FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets at fair value | ||
Assets at fair value on a recurring basis | ||
U.S. Government Agency notes | $ 4,361 | $ 4,644 |
Municipal bonds | 25,896 | 27,193 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 32,025 | 29,357 |
Collateralized mortgage obligations: U.S. Government agencies | 21,048 | 25,499 |
Corporate bonds | 6,122 | 5,108 |
Securities available-for-sale | 89,452 | 91,801 |
CRA mutual funds | 912 | 882 |
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | 1,282 | 1,593 |
Other real estate owned | 314 | |
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 | ||
Corporate bonds | ||
Securities available-for-sale | ||
CRA mutual funds | 912 | 882 |
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 | 4,361 | 4,644 |
Municipal bonds | 25,896 | 27,193 |
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises | 32,025 | 29,357 |
Collateralized mortgage obligations: U.S. Government agencies | 21,048 | 25,499 |
Corporate bonds | 6,122 | 5,108 |
Securities available-for-sale | 89,452 | 91,801 |
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 | ||
Corporate bonds | ||
Securities available-for-sale | ||
CRA mutual funds | ||
Assets at fair value on a non-recurring basis | ||
Collateral dependent impaired loans | 1,282 | 1,593 |
Other real estate owned | $ 314 |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying value | ||
Financial Assets | ||
Cash and cash equivalents | $ 84,495 | $ 26,885 |
Interest bearing time deposits with financial institutions | 750 | 750 |
Securities available-for-sale, net | 89,452 | 91,801 |
CRA mutual fund | 912 | 882 |
Federal Home Loan Bank of Boston stock | 3,353 | 3,242 |
Loans held-for-sale | 5,313 | 332 |
Loans receivable, net | 1,040,358 | 927,413 |
Accrued interest receivable | 3,988 | 3,415 |
Cash surrender value of life insurance policies | 20,846 | 20,580 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 325,531 | 237,852 |
Demand (interest-bearing) | 188,487 | 153,314 |
Money market | 251,242 | 239,504 |
Savings and other | 170,537 | 161,112 |
Certificates of deposit | 149,802 | 127,724 |
Deposits | 1,085,599 | 919,506 |
Repurchase agreements | 7,809 | 8,530 |
FHLBB advances | 55,118 | 50,887 |
Subordinated debt | 9,871 | 9,859 |
Note payable | 228 | 246 |
Finance lease liability | 1,696 | 1,718 |
Accrued interest payable | 187 | 78 |
Estimated fair value | ||
Financial Assets | ||
Cash and cash equivalents | 84,495 | 26,885 |
Interest bearing time deposits with financial institutions | 750 | 750 |
Securities available-for-sale, net | 89,452 | 91,801 |
CRA mutual fund | 912 | 882 |
Federal Home Loan Bank of Boston stock | 3,353 | 3,242 |
Loans held-for-sale | 5,392 | 334 |
Loans receivable, net | 1,062,289 | 933,287 |
Accrued interest receivable | 3,988 | 3,415 |
Cash surrender value of life insurance policies | 20,846 | 20,580 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 325,531 | 237,852 |
Demand (interest-bearing) | 188,487 | 153,314 |
Money market | 251,242 | 239,504 |
Savings and other | 170,537 | 161,112 |
Certificates of deposit | 151,315 | 128,629 |
Deposits | 1,087,112 | 920,411 |
Repurchase agreements | 7,809 | 8,530 |
FHLBB advances | 55,377 | 51,028 |
Subordinated debt | 9,910 | 10,113 |
Note payable | 231 | 251 |
Finance lease liability | 1,902 | 1,967 |
Accrued interest payable | 187 | 78 |
Fair Value Measurements Using - Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 84,495 | 26,885 |
Interest bearing time deposits with financial institutions | 750 | 750 |
Securities available-for-sale, net | ||
CRA mutual fund | 912 | 882 |
Federal Home Loan Bank of Boston stock | 3,353 | 3,242 |
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | 3,988 | 3,415 |
Cash surrender value of life insurance policies | 20,846 | 20,580 |
Financial Liabilities | ||
Demand (non-interest-bearing) | ||
Demand (interest-bearing) | ||
Money market | ||
Savings and other | ||
Certificates of deposit | ||
Deposits | ||
Repurchase agreements | ||
FHLBB advances | ||
Subordinated debt | 9,910 | 10,113 |
Note payable | ||
Finance lease liability | ||
Accrued interest payable | 187 | 78 |
Fair Value Measurements Using - Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | ||
Interest bearing time deposits with financial institutions | ||
Securities available-for-sale, net | 89,452 | 91,801 |
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) | 325,531 | 237,852 |
Demand (interest-bearing) | 188,487 | 153,314 |
Money market | 251,242 | 239,504 |
Savings and other | 170,537 | 161,112 |
Certificates of deposit | 151,315 | 128,629 |
Deposits | 1,087,112 | 920,411 |
Repurchase agreements | 7,809 | 8,530 |
FHLBB advances | 55,377 | 51,028 |
Subordinated debt | ||
Note payable | 231 | 251 |
Finance lease liability | ||
Accrued interest payable | ||
Fair Value Measurements Using - Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | ||
Interest bearing time deposits with financial institutions | ||
Securities available-for-sale, net | ||
CRA mutual fund | ||
Federal Home Loan Bank of Boston stock | ||
Loans held-for-sale | 5,392 | 334 |
Loans receivable, net | 1,062,289 | 933,287 |
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 | ||
Finance lease liability | 1,902 | 1,967 |
Accrued interest payable |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) $ / shares in Units, $ in Thousands | 1 Months Ended |
Jul. 31, 2020USD ($)$ / shares | |
Subsequent Events [Abstract] | |
Tax-free gain from BOLI policy | $ | $ 600 |
Dividend declared | $ / shares | $ .29 |