Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-14854 | |
Entity Registrant Name | SALISBURY BANCORP, INC. | |
Entity Central Index Key | 0001060219 | |
Entity Tax Identification Number | 06-1514263 | |
Entity Incorporation, State or Country Code | CT | |
Entity Address, Address Line One | 5 Bissell Street | |
Entity Address, City or Town | Lakeville | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06039 | |
City Area Code | 860 | |
Local Phone Number | 435-9801 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SAL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,783,966 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 8,611 | $ 6,404 |
Interest bearing demand deposits with other banks | 62,856 | 168,931 |
Total cash and cash equivalents | 71,467 | 175,335 |
Interest bearing Time Deposits with Financial Institutions | 750 | 750 |
Securities | ||
Available-for-sale at fair value | 203,110 | 202,396 |
Mutual funds at fair value | 1,672 | 901 |
Federal Home Loan Bank of Boston stock at cost | 945 | 1,397 |
Loans held-for-sale | 2,684 | |
Loans receivable, net (allowance for loan losses: $13,703 and $12,962) | 1,135,758 | 1,066,750 |
Bank premises and equipment, net | 22,710 | 22,625 |
Goodwill | 13,815 | 13,815 |
Intangible assets (net of accumulated amortization: $5,567 and $5,463) | 314 | 418 |
Accrued interest receivable | 6,123 | 6,260 |
Cash surrender value of life insurance policies | 28,063 | 27,738 |
Deferred taxes | 6,460 | 2,588 |
Other assets | 5,334 | 5,527 |
Total Assets | 1,496,521 | 1,529,184 |
Deposits | ||
Demand (non-interest bearing) | 383,674 | 416,073 |
Demand (interest bearing) | 233,947 | 233,600 |
Money market | 314,244 | 330,436 |
Savings and other | 231,322 | 237,075 |
Certificates of deposit | 153,352 | 119,009 |
Total deposits | 1,316,539 | 1,336,193 |
Repurchase agreements | 16,574 | 11,430 |
Federal Home Loan Bank of Boston advances | 7,656 | |
Subordinated debt | 24,502 | 24,474 |
Note payable | 149 | 170 |
Finance lease obligations | 4,329 | 4,107 |
Accrued interest and other liabilities | 7,125 | 8,554 |
Total Liabilities | 1,369,218 | 1,392,584 |
Shareholders' Equity 1 | ||
Outstanding: 5,783,966 and 5,723,394 | 578 | 286 |
Unearned compensation – restricted stock awards | (1,512) | (925) |
Paid-in capital | 47,205 | 46,374 |
Retained earnings | 95,568 | 89,995 |
Accumulated other comprehensive (loss) income, net | (14,536) | 870 |
Total Shareholders' Equity | 127,303 | 136,600 |
Total Liabilities and Shareholders' Equity | $ 1,496,521 | $ 1,529,184 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Loans and Leases Receivable, Allowance | $ 13,703 | $ 12,962 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 5,567 | $ 5,463 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 5,783,966 | 5,723,394 |
Common Stock, Shares, Outstanding | 5,783,966 | 5,723,394 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 10,576 | $ 9,901 | $ 20,740 | $ 20,377 |
Interest on debt securities | ||||
Taxable | 859 | 488 | 1,583 | 912 |
Tax exempt | 187 | 172 | 362 | 334 |
Other interest and dividends | 107 | 61 | 164 | 95 |
Total interest and dividend income | 11,729 | 10,622 | 22,849 | 21,718 |
Interest expense | ||||
Deposits | 577 | 567 | 1,055 | 1,121 |
Repurchase agreements | 4 | 4 | 6 | 8 |
Finance lease | 41 | 36 | 82 | 69 |
Note payable | 2 | 3 | 5 | 6 |
Subordinated debt | 233 | 415 | 466 | 534 |
Federal Home Loan Bank of Boston advances | 32 | 55 | 65 | |
Total interest expense | 857 | 1,057 | 1,669 | 1,803 |
Net interest and dividend income | 10,872 | 9,565 | 21,180 | 19,915 |
Provision (release) for loan losses | 1,100 | (1,075) | 1,463 | (917) |
Net interest and dividend income after provision (release) for loan losses | 9,772 | 10,640 | 19,717 | 20,832 |
Non-interest income | ||||
Trust and wealth advisory | 1,293 | 1,254 | 2,533 | 2,399 |
Service charges and fees | 1,723 | 1,374 | 2,861 | 2,325 |
Mortgage banking activities, net | 77 | 196 | 432 | 804 |
(Losses) gains on mutual fund | (30) | 3 | (72) | (14) |
(Losses) gains on sales and calls of available -for-sale securities, net | (45) | (9) | 165 | (9) |
BOLI income and gains | 252 | 125 | 414 | 251 |
Other | 27 | 28 | 57 | 57 |
Total non-interest income | 3,297 | 2,971 | 6,390 | 5,813 |
Non-interest expense | ||||
Salaries | 3,657 | 3,403 | 7,135 | 6,304 |
Employee benefits | 1,288 | 1,356 | 2,565 | 2,668 |
Premises and equipment | 973 | 1,019 | 2,086 | 1,973 |
Information processing and services | 702 | 628 | 1,387 | 1,193 |
Professional fees | 821 | 644 | 1,609 | 1,355 |
Collections, OREO, and loan related | 116 | 113 | 232 | 197 |
FDIC insurance | 122 | 80 | 293 | 225 |
Marketing and community support | 262 | 214 | 447 | 296 |
Amortization of intangibles | 50 | 65 | 104 | 137 |
Other | 541 | 564 | 1,328 | 999 |
Total non-interest expense | 8,532 | 8,086 | 17,186 | 15,347 |
Income before income taxes | 4,537 | 5,525 | 8,921 | 11,298 |
Income tax provision | 692 | 1,172 | 1,507 | 2,419 |
Net income | 3,845 | 4,353 | 7,414 | 8,879 |
Net income available to common shareholders | $ 3,772 | $ 4,287 | $ 7,280 | $ 8,749 |
Basic earnings per common share 1 | $ 0.67 | $ 0.76 | $ 1.29 | $ 1.56 |
Diluted earnings per common share 1 | 0.66 | 0.76 | 1.28 | 1.55 |
Common dividends per share 1 | $ 0.16 | $ 0.15 | $ 0.32 | $ 0.30 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net income | $ 3,845 | $ 4,353 | $ 7,414 | $ 8,879 |
Other comprehensive (loss) income | ||||
Net unrealized (losses) gains on securities available-for-sale | (7,788) | 874 | (19,337) | (954) |
Reclassification of net realized losses (gains) in net income 1 | 45 | 9 | (165) | 9 |
Unrealized (losses) gains on securities available-for-sale | (7,743) | 883 | (19,502) | (945) |
Income tax benefit (expense) | 1,626 | (186) | 4,096 | 197 |
Unrealized (losses) gains on securities available-for-sale, net of tax | (6,117) | 697 | (15,406) | (748) |
Comprehensive (loss) income | $ (2,272) | $ 5,050 | $ (7,992) | $ 8,131 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Deferred Compensation, Share-Based Payments [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 284 | $ 45,264 | $ 76,974 | $ (774) | $ 3,004 | $ 124,752 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2020 | 5,686,584 | |||||
Net income | 8,879 | 8,879 | ||||
Other comprehensive loss, net of tax | (748) | (748) | ||||
Common stock dividends declared | (1,679) | (1,679) | ||||
Issuance of restricted stock awards | $ 1 | 623 | (624) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 27,700 | |||||
Issuance of director’s restricted stock awards | 126 | (126) | ||||
[custom:StockIssuedDuringPeriodSharesDirectorsRestrictedStockAwards] | 5,600 | |||||
Stock based compensation-restricted stock awards | 174 | 300 | 474 | |||
Stock options exercised | $ 1 | 30 | 31 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 3,510 | |||||
Ending balance, value at Jun. 30, 2021 | $ 286 | 46,217 | 84,174 | (1,224) | 2,256 | $ 131,709 |
Shares, Outstanding, Ending Balance at Jun. 30, 2021 | 5,723,394 | 5,723,394 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 285 | 45,369 | 80,675 | (646) | 1,559 | $ 127,242 |
Shares, Outstanding, Beginning Balance at Mar. 31, 2021 | 5,690,294 | |||||
Net income | 4,353 | 4,353 | ||||
Other comprehensive loss, net of tax | 697 | 697 | ||||
Common stock dividends declared | (854) | (854) | ||||
Issuance of restricted stock awards | $ 1 | 619 | (620) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 27,500,000 | |||||
Issuance of director’s restricted stock awards | 126 | (126) | ||||
[custom:StockIssuedDuringPeriodSharesDirectorsRestrictedStockAwards] | 5,600 | |||||
Stock based compensation-restricted stock awards | 103 | 168 | 271 | |||
Ending balance, value at Jun. 30, 2021 | $ 286 | 46,217 | 84,174 | (1,224) | 2,256 | $ 131,709 |
Shares, Outstanding, Ending Balance at Jun. 30, 2021 | 5,723,394 | 5,723,394 | ||||
Beginning balance, value at Dec. 31, 2021 | $ 286 | 46,374 | 89,995 | (925) | 870 | $ 136,600 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 | 5,723,394 | |||||
Net income | 7,414 | 7,414 | ||||
Other comprehensive loss, net of tax | (15,406) | (15,406) | ||||
Common stock dividends declared | (1,841) | (1,841) | ||||
Issuance of restricted stock awards | $ 2 | 811 | (813) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 28,700 | |||||
Issuance of director’s restricted stock awards | 205 | (205) | ||||
[custom:StockIssuedDuringPeriodSharesDirectorsRestrictedStockAwards] | 7,980 | |||||
Stock based compensation-restricted stock awards | 193 | 431 | 624 | |||
Stock options exercised | $ 1 | 94 | 95 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 11,070 | |||||
Transfer due to 2-for-1 forward stock split | $ 289 | (289) | ||||
Issuance of performance based stock awards | (183) | (183) | ||||
[custom:StockIssuedDuringPeriodSharesPerformanceBasedStockAwards] | 12,822,000 | |||||
Ending balance, value at Jun. 30, 2022 | $ 578 | 47,205 | 95,568 | (1,512) | (14,536) | 127,303 |
Shares, Outstanding, Ending Balance at Jun. 30, 2022 | 5,783,966 | |||||
Beginning balance, value at Mar. 31, 2022 | $ 288 | 47,099 | 92,648 | (1,550) | (8,419) | 130,066 |
Shares, Outstanding, Beginning Balance at Mar. 31, 2022 | 5,764,916 | |||||
Net income | 3,845 | 3,845 | ||||
Other comprehensive loss, net of tax | (6,117) | (6,117) | ||||
Common stock dividends declared | (925) | (925) | ||||
Issuance of director’s restricted stock awards | 205 | (205) | ||||
[custom:StockIssuedDuringPeriodSharesDirectorsRestrictedStockAwards] | 7,980 | |||||
Stock based compensation-restricted stock awards | 96 | 243 | 339 | |||
Stock options exercised | $ 1 | 94 | 95 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 11,070 | |||||
Transfer due to 2-for-1 forward stock split | $ 289 | (289) | ||||
Ending balance, value at Jun. 30, 2022 | $ 578 | $ 47,205 | $ 95,568 | $ (1,512) | $ (14,536) | $ 127,303 |
Shares, Outstanding, Ending Balance at Jun. 30, 2022 | 5,783,966 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities | ||
Net income | $ 7,414 | $ 8,879 |
Amortization(accretion) and depreciation | ||
Securities | 723 | 463 |
Bank premises and equipment | 801 | 756 |
Core deposit intangible | 104 | 136 |
Modification fees on Federal Home Loan Bank of Boston advances | 21 | 11 |
Subordinated debt issuance costs | 28 | 144 |
Mortgage servicing rights | 78 | 131 |
(Gain) loss on sales and calls of securities available-for-sale, net | (165) | 9 |
Loss on mutual funds | 72 | 14 |
Gain on sales of loans, excluding capitalized servicing rights | (292) | (621) |
Loss (gain) on sale of disposed assets | 3 | (6) |
Provision (release) for loan losses | 1,463 | (917) |
Proceeds from loans sold | 11,119 | 28,546 |
Loans originated for sale | (4,459) | (25,605) |
(Increase) decrease in deferred loan origination fees and costs, net | (733) | 517 |
Increase in mortgage servicing rights originated | (72) | (258) |
Decrease in mortgage impairment charge | (9) | |
Decrease in interest receivable | 137 | 16 |
Decrease in deferred tax benefit | 224 | 219 |
Decrease (increase) in prepaid expenses | 202 | (97) |
Increase in cash surrender value of life insurance policies | (414) | (251) |
Decrease in income tax receivable | 37 | |
(Increase) decrease in other assets | (52) | 80 |
Increase in income taxes payable | 631 | |
Decrease in accrued expenses | (1,442) | (188) |
Decrease in interest payable | (5) | (1,174) |
Increase in other liabilities | 19 | 80 |
Stock based compensation-restricted stock awards | 624 | 474 |
Net cash provided by operating activities | 15,435 | 11,982 |
Investing Activities | ||
Net redemptions of Federal Home Loan Bank of Boston stock | 452 | 209 |
Purchases of securities available-for-sale | (52,175) | (72,654) |
Proceeds from sales of securities available-for-sale | 22,012 | 2,407 |
Proceeds from calls of securities available-for-sale | 1,500 | |
Proceeds from maturities of securities available-for-sale | 9,389 | 14,306 |
Reinvestment/purchase of mutual funds | (843) | (6) |
Loan originations and principal collections, net | (73,434) | (4,258) |
Recoveries of loans previously charged off | 12 | 51 |
Proceeds from life insurance | 89 | |
Proceeds from sales of disposed assets | 18 | |
Capital expenditures | (601) | (1,788) |
Net cash utilized by investing activities | (95,099) | (60,215) |
Financing Activities | ||
(Decrease) increase in deposit transaction accounts, net | (53,997) | 109,153 |
Increase in time deposits, net | 34,343 | 5,142 |
Increase in securities sold under agreements to repurchase, net | 5,144 | 10,376 |
Payments Federal Home Loan Bank of Boston advances | (6,000) | |
Principal payments on amortizing FHLB advances | (1,677) | (2,498) |
Issuance of Subordinated debt, net of issuance costs | 24,418 | |
Repayment of Subordinated debt | (10,000) | |
Principal payments on note payable | (21) | (19) |
Decrease in finance lease obligation | (67) | (27) |
Stock options exercised | 95 | 31 |
Net settlement of restricted stock units | (183) | |
Common stock dividends paid | (1,841) | (1,679) |
Net cash (utilized) provided by financing activities | (24,204) | 134,897 |
Net (decrease) increase in cash and cash equivalents | (103,868) | 86,664 |
Cash and cash equivalents, beginning of period | 175,335 | 93,162 |
Cash and cash equivalents, end of period | 71,467 | 179,826 |
Cash paid during period | ||
Interest | 1,625 | 1,649 |
Income taxes | 1,310 | 1,563 |
Non-cash supplemental | ||
Available for Sale Security Due from Broker | 904 | |
Fixed Asset | 289 | |
Finance lease liability | (289) | |
Loans transferred to Loans Held for Sale | $ 3,684 |
NOTE 1 - BASIS OF PRESENTATION
NOTE 1 - BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
NOTE 1 - 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 and unrealized gains and losses related to available-for-sale securities. Salisbury increased the number of issued and authorized common shares and effected a two-for-one forward stock split of the Company’s common stock on June 30, 2022. The par value of common stock was not adjusted as a result of the forward stock split. All share and per share amounts in the financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this forward stock split. 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, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2021 Annual Report on Form 10-K for the year ended December 31, 2021. 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. 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. 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 removes all recognition thresholds and requires 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 clarifies 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 clarifies 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. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” which clarifies or addresses specific issues about certain aspects of the amendments in ASU 2016-13. The amendments in ASU 2019-11 clarify the following: (1) The allowance for credit losses (ACL) 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. In March 2022, the FASB issued ASU 2022-02, which clarifies the treatment of accrued interest when measuring credit losses. The amendments in this Update eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. 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 losses in conformance with this ASU. Salisbury will continue to refine this model and assess the impact to its consolidated financial statements. The Bank is working towards the completion of its ACL methodology. To estimate the ACL for loans and off-balance sheet credit exposures, such as unfunded loan commitments, Salisbury will utilize a discounted cash flow model that contains additional assumptions to calculate credit losses over the estimated life of financial assets and off-balance sheet credit exposures and will include the impact of forecasted economic conditions. The estimate is expected to include a one-year reasonable and supportable forecast period and thereafter a one-year reversion period to the historical mean of its macroeconomic assumption. The estimate will also include qualitative factors that may not be reflected in quantitatively derived results to ensure that the ACL reflects a reasonable estimate of current expected credit losses. The Bank is currently refining various ACL assumptions and running parallel calculations on a monthly basis. Salisbury estimates that under the CECL framework, the ACL would be $13.6 million compared with the allowance for loan losses of $13.7 million reported on the consolidated balance sheet at June 30, 2022. In addition, Salisbury estimates that the ACL for unfunded commitments would be approximately $1.2 million compared with the allowance of $0.2 million recorded on its consolidated balance sheet as of June 30, 2022. Salisbury will continue to refine its ACL methodology prior to implementation of CECL on January 1, 2023. In addition, the estimated ACL and allowance for unfunded commitments under both the Incurred Loss method and CECL will be affected by various factors, which include but are not limited to, changes in the composition and balance of Salisbury’s loan portfolio and unfunded commitments, changes to internal risk ratings of borrowers, changes to the risk-profile of the loan portfolio, changes in various macro-economic indicators, the impact of COVID-19 and geo-political events on the business environment, and other factors. Based on the credit quality of Salisbury’s existing available for sale debt securities portfolio, which primarily consists of obligations of U.S. government agency and U.S. government-sponsored enterprise securities, including mortgage-backed securities, Salisbury does not expect the adoption of ASU 2016-13, as it relates to debt securities, to be significant. For available for sale debt securities with unrealized losses, credit losses will be recognized as an allowance rather than a reduction in the amortized cost of the securities. As a result, improvements to estimated credit losses will be recognized immediately in earnings rather than as interest income over time. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848).” In response to the risk of cessation of the London Interbank Offered Rate (LIBOR) as a reference rate, this ASU clarifies the scope of Topic 848 so that derivatives affected by this transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. An entity may elect to apply the amendments in this ASU on a full retrospective basis as of any date from the beginning interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that the financial statements are available to be issued. The transition from LIBOR is not expected to have a material impact on Salisbury’s Consolidated Financial Statements. In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815) Fair Value Hedging – Portfolio Layer Method.” The amendments in this update clarified the following: (1) The current last-of-layer method that permits only one hedged layer has been expanded to allow multiple hedged layers of a single closed portfolio. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method; (2) The scope of the portfolio layer method has been expanded to include non-pre-payable financial assets; (3) Eligible hedging instruments in a single-layer hedge may include spot-starting or forward-starting constant-notional swaps, or spot-or forward-starting amortizing-notional swaps and that the number of hedged layers (that is, single or multiple) corresponds with the number of hedges designated; (4) Additional guidance is provided on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method whether a single hedged layer or multiple hedged layers are designated; and (5) How hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted for any entity that has adopted the amendments in ASU 2017-12 for the corresponding period. Salisbury does not expect the implementation of ASU 2022-01 to have a material impact on its consolidated financial statements. |
NOTE 2 - SECURITIES
NOTE 2 - SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
NOTE 2 - SECURITIES | NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value June 30, 2022 Available-for-sale U.S. Treasury $ 19,250 $ — $ 1,578 $ 17,672 U.S. Government Agency notes 31,301 128 1,711 29,718 Municipal bonds 55,339 2 7,074 48,267 Mortgage-backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 77,339 52 5,924 71,467 Collateralized mortgage obligations: U.S. Government agencies 24,531 — 1,979 22,552 Corporate bonds 13,750 10 326 13,434 Total securities available-for-sale $ 221,510 $ 192 $ 18,592 $ 203,110 Mutual fund $ 1,672 Non-marketable securities Federal Home Loan Bank of Boston stock $ 945 $ — $ — $ 945 (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value December 31, 2021 Available-for-sale U.S. Treasury $ 15,301 $ 12 $ 182 $ 15,131 U.S. Government Agency notes 31,623 237 256 31,604 Municipal bonds 46,469 1,557 204 47,822 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 74,703 643 805 74,541 Collateralized mortgage obligations: U.S. Government agencies 20,948 135 185 20,898 Corporate bonds 12,250 158 8 12,400 Total securities available-for-sale $ 201,294 $ 2,742 $ 1,640 $ 202,396 Mutual fund $ 901 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,397 $ — $ — $ 1,397 Salisbury sold $ 22.0 165 35 4.0 45 9 3.3 9 2 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, 2022 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 17,672 $ 1,578 $ — $ — $ 17,672 $ 1,578 U.S. Government Agency notes 14,998 1,367 9,267 344 24,265 1,711 Municipal bonds 45,603 6,717 1,518 357 47,121 7,074 Mortgage- backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 50,249 4,679 14,709 1,245 64,958 5,924 Collateralized mortgage obligations: U.S. Government agencies 22,552 1,979 — — 22,552 1,979 Corporate bonds 7,424 326 — — 7,424 326 Total temporarily impaired securities $ 158,498 $ 16,646 $ 25,494 $ 1,946 $ 183,992 $ 18,592 Less than 12 Months 12 Months or Longer Total December 31, 2021 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 12,155 $ 182 $ — $ — $ 12,155 $ 182 U.S. Government Agency notes 22,137 235 2,019 21 24,156 256 Municipal bonds 12,496 204 552 — 13,048 204 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 52,619 740 3,195 65 55,814 805 Collateralized mortgage obligations 11,554 185 — — 11,554 185 Corporate bonds 1,742 8 — — 1,742 8 Total temporarily impaired securities $ 112,703 $ 1,554 $ 5,766 $ 86 $ 118,469 $ 1,640 The table below presents the amortized cost, fair value and tax equivalent yield of securities, by maturity. Debt securities issued by U.S. Government agencies (SBA securities), MBS, and CMOS are disclosed separately in the table below as these securities may prepay prior to the scheduled contractual maturity dates. June 30, 2022 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Treasury After 1 year but within 5 years $ 7,859 $ 7,444 1.32 % After 5 year but within 10 years 11,391 10,228 1.18 Total 19,250 17,672 1.24 U.S. Government Agency notes After 1 year but within 5 years 3,990 3,666 0.92 After 5 year but within 10 years 11,923 10,721 1.34 Total 15,913 14,387 1.23 Municipal bonds After 1 year but within 5 years 512 478 1.74 After 5 year but within 10 years 12,792 11,179 2.38 After 10 years but within 15 years 12,971 11,282 2.36 After 15 years 29,064 25,328 2.84 Total 55,339 48,267 2.61 Mortgage-backed securities and Collateralized mortgage obligations Securities not due at a single maturity date 117,258 109,350 2.00 Total 117,258 109,350 2.00 Corporate bonds After 5 years but within 10 years 13,750 13,434 4.35 Total 13,750 13,434 4.35 Securities available-for-sale $ 221,510 $ 203,110 2.27 % (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, 2022. U.S. Treasury notes: The contractual cash flows are guaranteed by the U.S. government. Ten securities had unrealized losses at June 30, 2022, which approximated 8.20% 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, 2022. U.S. Government Agency notes: The contractual cash flows are guaranteed by the U.S. government. Twenty-three securities had unrealized losses at June 30, 2022, which approximated 6.59% 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, 2022. Municipal bonds: Salisbury performed a detailed analysis of the municipal bond portfolio. Sixty-five securities had unrealized losses at June 30, 2022, which approximated 13.05% 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, 2022. 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. Ninety securities had unrealized losses at June 30, 2022, which approximated 8.28% 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, 2022. Corporate bonds: Salisbury regularly monitors and analyzes its corporate bond portfolio for credit quality. Ten securities had unrealized losses at June 30, 2022, which approximated 4.20% 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, 2022. 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, 2022. 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. |
NOTE 3 _ LOANS
NOTE 3 – LOANS | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
NOTE 3 – LOANS | NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: (In thousands) June 30, 2022 December 31, 2021 Residential 1-4 family $ 398,556 $ 373,131 Residential 5+ multifamily 69,272 52,325 Construction of residential 1-4 family 22,379 19,738 Home equity lines of credit 23,763 23,270 Residential real estate 513,970 468,464 Commercial 338,091 310,923 Construction of commercial 49,696 58,838 Commercial real estate 387,787 369,761 Farm land 3,668 2,807 Vacant land 15,397 14,182 Real estate secured 920,822 855,214 Commercial and industrial ex PPP Loans 189,086 169,543 PPP Loans 2,894 25,589 Total Commercial and industrial 191,980 195,132 Municipal 17,486 16,534 Consumer 18,155 12,547 Loans receivable, gross 1,148,443 1,079,427 Deferred loan origination costs, net 1,018 285 Allowance for loan losses (13,703 ) (12,962 ) Loans receivable, net $ 1,135,758 $ 1,066,750 Loans held-for-sale Residential 1-4 family $ — $ 2,684 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, 2022 and December 31, 2021, Salisbury serviced commercial loans for other banks under loan participation agreements totaling $ 83.4 77.5 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 are subject to operating challenges due to the COVID-19 virus pandemic (“virus”). Approximately 40% of the Bank’s commercial loan portfolio are to entities who operate rental properties, which include commercial strip malls, smaller rental units as well as multi-unit dwellings. Approximately 10% of the Bank’s commercial loans are to entities in the hospitality industry, which includes hotels, bed & breakfast inns and restaurants. Approximately 9% of the Bank’s commercial loans are to educational institutions and approximately 5% of Salisbury’s commercial loans are to entertainment and recreation related businesses, which include camps and amusement parks. Salisbury’s commercial real estate exposure as a percentage of the Bank’s total risk-based capital, which represents Tier 1 plus Tier 2 capital, was approximately 187% as of June 30, 2022 and 179% at December 31, 2021 compared to the regulatory monitoring guideline of 300%. 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. Due to the COVID-19 pandemic, the Bank may experience higher loan payment delinquencies and higher loan charge-offs, which could warrant increased provisions for loan losses. At June 30, 2022 Salisbury had gross PPP loan balances of $ 3 26 For the three months ended June 30, 2022, Salisbury recorded interest income and net origination fees of $ 22 236 204 582 68 671 436 1.6 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 considered not criticized and are aggregated as pass rated, 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. Salisbury sold approximately $3.7 million of non-performing and under-performing loans during the six-month period ended June 30, 2022 to further manage the Bank’s credit risk proactively. 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 FDIC and the CTDOB. The composition of loans receivable by risk rating grade is presented in the table below. The decrease in substandard loans from year end 2021 primarily reflected management’s upgrade of the internal risk rating on approximately $17 million of loans that were mostly related to the hospitality and entertainment and recreation industries. These loans were previously downgraded due to concerns over COVID-19 but the businesses have since demonstrated a return to pre-pandemic levels of activity and liquidity. (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2022 Residential 1-4 family $ 393,642 $ 3,093 $ 1,821 $ — $ — $ 398,556 Residential 5+ multifamily 69,117 75 80 — — 69,272 Construction of residential 1-4 family 20,279 — 2,100 — — 22,379 Home equity lines of credit 23,592 171 — — — 23,763 Residential real estate 506,630 3,339 4,001 — — 513,970 Commercial 312,206 20,455 5,430 — — 338,091 Construction of commercial 49,696 — — — — 49,696 Commercial real estate 361,902 20,455 5,430 — — 387,787 Farm land 1,963 1,296 409 — — 3,668 Vacant land 15,362 35 — — — 15,397 Real estate secured 885,857 25,125 9,840 — — 920,822 Commercial and industrial 189,228 920 1,832 — — 191,980 Municipal 17,486 — — — — 17,486 Consumer 18,155 — — — — 18,155 Loans receivable, gross $ 1,110,726 $ 26,045 $ 11,672 $ — $ — $ 1,148,443 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2021 Residential 1-4 family $ 367,225 $ 3,543 $ 2,363 $ — $ — $ 373,131 Residential 5+ multifamily 50,588 79 1,658 — — 52,325 Construction of residential 1-4 family 19,738 — — — — 19,738 Home equity lines of credit 23,037 212 21 — — 23,270 Residential real estate 460,588 3,834 4,042 — — 468,464 Commercial 271,821 16,034 23,068 — — 310,923 Construction of commercial 58,838 — — — — 58,838 Commercial real estate 330,659 16,034 23,068 — — 369,761 Farm land 1,162 1,214 431 — — 2,807 Vacant land 14,143 39 — — — 14,182 Real estate secured 806,552 21,121 27,541 — — 855,214 Commercial and industrial 191,857 688 2,587 — — 195,132 Municipal 16,534 — — — — 16,534 Consumer 12,547 — — — — 12,547 Loans receivable, gross $ 1,027,490 $ 21,809 $ 30,128 $ — $ — $ 1,079,427 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, 2022 Residential 1-4 family $ 398,234 $ 152 $ 155 $ — $ 15 $ 322 $ — $ 350 Residential 5+ multifamily 69,272 — — — — — — — Construction of residential 1-4 family 22,310 — — 69 — 69 69 2,100 Home equity lines of credit 23,437 326 — — — 326 — — Residential real estate 513,253 478 155 69 15 717 69 2,450 Commercial 338,006 — 85 — — 85 — 1,228 Construction of commercial 49,696 — — — — — — — Commercial real estate 387,702 — 85 — — 85 — 1,228 Farm land 3,668 — — — — — — 409 Vacant land 15,397 — — — — — — — Real estate secured 920,020 478 240 69 15 802 69 4,087 Commercial and industrial 191,780 189 — — 11 200 11 62 Municipal 17,486 — — — — — — — Consumer 18,061 87 7 — — 94 — — Loans receivable, gross $ 1,147,347 $ 754 $ 247 $ 69 $ 26 $ 1,096 $ 80 $ 4,149 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, 2021 Residential 1-4 family $ 372,620 $ 223 $ 135 $ 63 $ 90 $ 511 $ — $ 750 Residential 5+ multifamily 51,464 — — — 861 861 — 861 Construction of residential 1-4 family 19,668 — 70 — — 70 — — Home equity lines of credit 23,000 165 98 — 7 270 — 21 Residential real estate 466,752 388 303 63 958 1,712 — 1,632 Commercial 310,331 87 251 — 254 592 — 1,924 Construction of commercial 58,838 — — — — — — — Commercial real estate 369,169 87 251 — 254 592 — 1,924 Farm land 2,807 — — — — — — 432 Vacant land 14,182 — — — — — — — Real estate secured 852,910 475 554 63 1,212 2,304 — 3,988 Commercial and industrial 194,838 250 32 1 11 294 11 200 Municipal 16,534 — — — — — — — Consumer 12,503 40 4 — — 44 — — Loans receivable, gross $ 1,076,785 $ 765 $ 590 $ 64 $ 1,223 $ 2,642 $ 11 $ 4,188 Troubled Debt Restructurings (TDRs) There were no troubled debt restructurings during the second quarter of 2022 or second quarter of 2021 or for the six months ended June 30, 2022 and June 30, 2021, respectively. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Three months ended June 30, 2022 Three months ended June 30, 2021 Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Residential 1-4 family $ 3,063 $ 232 $ ( 9 ) $ — $ 3,286 $ 2,430 $ ( 55 ) $ ( 1 ) $ 3 $ 2,377 Residential 5+ multifamily 820 337 — — 1,157 622 (77 ) — — 545 Construction of residential 1-4 family 195 138 — — 333 77 18 — — 95 Home equity lines of credit 198 16 (9 ) — 205 195 (5 ) — — 190 Residential real estate 4,276 723 (18 ) — 4,981 3,324 (119 ) (1 ) 3 3,207 Commercial 5,196 241 (269 ) 1 5,169 7,080 (875 ) — 7 6,212 Construction of commercial 1,139 (267 ) — — 872 584 102 (18 ) — 668 Commercial real estate 6,335 (26 ) (269 ) 1 6,041 7,664 (773 ) (18 ) 7 6,880 Farm land 19 8 — — 27 50 (18 ) — — 32 Vacant land 110 (2 ) — — 108 109 (22 ) — — 87 Real estate secured 10,740 703 (287 ) 1 11,157 11,147 (932 ) (19 ) 10 10,206 Commercial and industrial 1,176 304 — — 1,480 1,369 (27 ) (131 ) 45 1,256 Municipal 27 8 — — 35 43 (11 ) — — 32 Consumer 105 51 (30 ) 4 130 52 22 (11 ) 3 66 Unallocated 867 34 — — 901 1,275 (127 ) — — 1,148 Totals $ 12,915 $ 1,100 $ (317 ) $ 5 $ 13,703 $ 13,886 $ ( 1,075 ) $ ( 161 ) $ 58 $ 12,708 Six months ended June 30, 2022 Six months ended June 30, 2021 Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,846 $ 468 $ ( 28 ) $ — $ 3,286 $ 2,646 $ ( 264 ) $ ( 10 ) $ 5 $ 2,377 Residential 5+ multifamily 817 571 (231 ) — 1,157 686 (141 ) — — 545 Construction of residential 1-4 family 186 147 — — 333 65 30 — — 95 Home equity lines of credit 198 18 (11 ) — 205 252 (62 ) — — 190 Residential real estate 4,047 1,204 (270 ) — 4,981 3,649 (437 ) (10 ) 5 3,207 Commercial 5,416 125 (373 ) 1 5,169 6,546 (345 ) (6 ) 17 6,212 Construction of commercial 1,025 (153 ) — — 872 596 90 (18 ) — 668 Commercial real estate 6,441 (28 ) (373 ) 1 6,041 7,142 (255 ) (24 ) 17 6,880 Farm land 21 6 — — 27 59 (27 ) — — 32 Vacant land 95 13 — — 108 180 (93 ) — — 87 Real estate secured 10,604 1,195 (643 ) 1 11,157 11,030 (812 ) (34 ) 22 10,206 Commercial and industrial 1,364 161 (46 ) 1 1,480 1,397 (55 ) (131 ) 45 1,256 Municipal 31 4 — — 35 43 (11 ) — — 32 Consumer 82 83 (45 ) 10 130 77 20 (15 ) (16 ) 66 Unallocated 881 20 — — 901 1,207 (59 ) — — 1,148 Totals $ 12,962 $ 1,463 $ ( 734 ) $ 12 $ 13,703 $ 13,754 $ ( 917 ) $ ( 180 ) $ 51 $ 12,708 The composition of loans receivable and the allowance for loan losses is as follows: (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance June 30, 2022 Residential 1-4 family $ 396,703 $ 3,286 $ 1,853 $ — $ 398,556 $ 3,286 Residential 5+ multifamily 69,192 1,157 80 — 69,272 1,157 Construction of residential 1-4 family 20,279 192 2,100 141 22,379 333 Home equity lines of credit 23,763 205 — — 23,763 205 Residential real estate 509,937 4,840 4,033 141 513,970 4,981 Commercial 335,508 5,145 2,583 24 338,091 5,169 Construction of commercial 49,696 872 — — 49,696 872 Commercial real estate 385,204 6,017 2,583 24 387,787 6,041 Farm land 3,259 27 409 — 3,668 27 Vacant land 15,397 108 — — 15,397 108 Real estate secured 913,797 10,992 7,025 165 920,822 11,157 Commercial and industrial 191,844 1,478 136 2 191,980 1,480 Municipal 17,486 35 — — 17,486 35 Consumer 18,155 130 — — 18,155 130 Unallocated allowance — 901 — — — 901 Totals $ 1,141,282 $ 13,536 $ 7,161 $ 167 $ 1,148,443 $ 13,703 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2021 Residential 1-4 family $ 370,558 $ 2,845 $ 2,573 $ 1 $ 373,131 $ 2,846 Residential 5+ multifamily 51,376 817 949 — 52,325 817 Construction of residential 1-4 family 19,738 186 — — 19,738 186 Home equity lines of credit 23,249 198 21 — 23,270 198 Residential real estate 464,921 4,046 3,543 1 468,464 4,047 Commercial 307,377 5,388 3,546 28 310,923 5,416 Construction of commercial 58,838 1,025 — — 58,838 1,025 Commercial real estate 366,215 6,413 3,546 28 369,761 6,441 Farm land 2,375 21 432 — 2,807 21 Vacant land 14,182 95 — — 14,182 95 Real estate secured 847,694 10,575 7,520 29 855,214 10,604 Commercial and industrial 194,856 1,297 276 67 195,132 1,364 Municipal 16,534 31 — — 16,534 31 Consumer 12,547 82 — — 12,547 82 Unallocated allowance — 881 — — — 881 Totals $ 1,071,630 $ 12,866 $ 7,797 $ 96 $ 1,079,427 $ 12,962 The credit quality segments of loans receivable and the allowance for loan losses are as follows: June 30, 2022 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,134,514 $ 12,228 $ — $ — $ 1,134,514 $ 12,228 Potential problem loans 1 6,768 407 — — 6,768 407 Impaired loans — — 7,161 167 7,161 167 Unallocated allowance — 901 — — — 901 Totals $ 1,141,282 $ 13,536 $ 7,161 $ 167 $ 1,148,443 $ 13,703 December 31, 2021 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,046,614 $ 10,456 $ — $ — $ 1,046,614 $ 10,456 Potential problem loans 1 25,016 1,529 — — 25,016 1,529 Impaired loans — — 7,797 96 7,797 96 Unallocated allowance — 881 — — — 881 Totals $ 1,071,630 $ 12,866 $ 7,797 $ 96 $ 1,079,427 $ 12,962 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 Specific Income Loan balance Income Recorded Investment Note Average allowance recognized Recorded Investment Note Average recognized June 30, 2022 Residential $ 2,100 $ 2,106 $ 568 $ 141 $ 24 $ 1,933 $ 2,056 $ 2,531 $ 29 Home equity lines of credit — — — — — — — 15 — Residential real estate 2,100 2,106 568 141 24 1,933 2,056 2,546 29 Commercial 584 584 633 24 15 1,999 2,494 2,579 21 Construction of commercial — — — — — — — — — Farm land — — — — — 409 447 420 — Vacant land — — — — — — — — — Real estate secured 2,684 2,690 1,201 165 39 4,341 4,997 5,545 50 Commercial and industrial 73 73 115 2 2 63 60 62 1 Consumer — — — — — — — — — Totals $ 2,757 $ 2,763 $ 1,316 $ 167 $ 41 $ 4,404 $ 5,057 $ 5,607 $ 51 Note: The income recognized is for the six-month period ended June 30, 2022. Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Recorded Investment Note Average allowance recognized Recorded Investment Note Average recognized June 30, 2021 Residential $ 47 $ 49 $ 1,580 $ 3 $ 1 $ 4,326 $ 4,776 $ 3,401 $ 40 Home equity lines of credit — — 32 — — 147 188 168 — Residential real estate 47 49 1,612 3 1 4,473 4,964 3,569 40 Commercial 1,140 1,164 2,294 45 25 3,341 3,984 3,024 44 Construction of commercial — — — — — — — — — Farm land — — — — — 594 764 344 — Vacant land — — 104 — — 160 178 60 4 Real estate secured 1,187 1,213 4,010 48 26 8,568 9,890 6,997 88 Commercial and industrial 364 377 365 115 2 86 243 92 1 Consumer — — 11 — — 21 21 13 1 Totals $ 1,551 $ 1,590 $ 4,386 $ 163 $ 28 $ 8,675 $ 10,154 $ 7,102 $ 90 Note: The income recognized is for the six-month period ended June 30, 2021. Certain data with respect to loans individually evaluated for impairment is as follows as of and for the year ended December 31, 2021: Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Recorded Investment Note Average allowance recognized Recorded Investment Note Average recognized December 31, 2021 Residential $ 43 $ 44 $ 872 $ 1 $ 3 $ 3,480 $ 3,817 $ 3,689 $ 75 Home equity lines of credit — — 17 — — 21 23 131 — Residential real estate 43 44 889 1 3 3,501 3,840 3,820 75 Commercial 608 608 1,678 28 32 2,938 3,493 2,974 62 Construction of commercial — — — — — — — — — Farm land — — — — — 431 447 440 — Vacant land — — 56 — — — — 45 — Real estate secured 651 652 2,623 29 35 6,870 7,780 7,279 137 Commercial and industrial 216 224 309 67 3 60 72 90 — Consumer — — 6 — — — — 13 — Totals $ 867 $ 876 $ 2,938 $ 96 $ 38 $ 6,930 $ 7,852 $ 7,382 $ 137 |
NOTE 4 _ LEASES
NOTE 4 – LEASES | 6 Months Ended |
Jun. 30, 2022 | |
Note 4 Leases | |
NOTE 4 – LEASES | NOTE 4 – LEASES The Bank leases facilities and equipment with various expiration dates. The facilities leases have varying renewal options, generally require fixed annual rent, and provide that real estate taxes, insurance, and maintenance expenses are to be paid by Salisbury. The following table provides the assets and liabilities as of June 30, 2022 and December 31, 2021, as well as the costs of operating and financial leases, which are included in the Bank’s consolidated income statement for the six months ended June 30, 2022 and 2021. ($ in thousands, except lease term and discount rate) Classification June 30, 2022 December 31, 2021 Assets Operating Other assets $ 910 $ 1,021 Finance Bank premises and equipment 1 3,968 3,791 Total Leased Assets $ 4,878 $ 4,812 Liabilities Operating Other liabilities $ 910 $ 1,021 Finance Finance lease 4,330 4,107 Total lease liabilities $ 5,240 $ 5,128 1 Net of accumulated depreciation of $ 608 496 Lease cost Classification Six months ended Three months ended June 30, 2022 June 30, 2022 Operating leases Premises and equipment $ 147 $ 73 Finance leases: Amortization of leased assets Premises and equipment 112 77 Interest on finance leases Interest expense 82 41 Total lease cost $ 341 $ 191 Lease cost Classification Six months ended Three months ended June 30, 2021 June 30, 2021 Operating leases Premises and equipment $ 147 $ 68 Finance leases: Amortization of leased assets Premises and equipment 51 25 Interest on finance leases Interest expense 69 36 Total lease cost $ 267 $ 129 Weighted Average Remaining Lease Term June 30, 2022 December 31, 2021 Operating leases 6.8 years 6.9 years Financing leases 22.0 years 23.5 years Weighted Average Discount Rate 1 Operating leases 3.7 % 3.60 % Financing leases 3.40 % 5.00 % 1 Salisbury uses the FHLBB five-year Advance rate as the discount rate, as its leases do not provide an implicit rate. The following is a schedule by years of the present value of the net minimum lease payments as of June 30, 2022. Future minimum lease payments (in thousands) Operating Leases Finance Leases 2022 $ 99 $ 149 2023 167 304 2024 129 314 2025 137 324 2026 137 324 Thereafter 379 4,978 Total future minimum lease payments 1,048 6,393 Less amount representing interest (138 ) (2,064 ) Total present value of net future minimum lease payments $ 910 $ 4,329 |
NOTE 5 - MORTGAGE SERVICING RIG
NOTE 5 - MORTGAGE SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
NOTE 5 - MORTGAGE SERVICING RIGHTS | NOTE 5 - MORTGAGE SERVICING RIGHTS (in thousands) June 30, 2022 December 31, 2021 Residential mortgage loans serviced for others $ 140,344 $ 140,623 Fair value of mortgage servicing rights 1,338 1,043 Changes in mortgage servicing rights are as follows: Three months ended Six months ended Periods ended June 30, (in thousands) 2022 2021 2022 2021 Mortgage Servicing Rights Balance, beginning of period $ 716 $ 739 $ 700 $ 621 Originated 17 64 72 258 Amortization (1) (39 ) (55 ) (78 ) (131 ) Balance, end of period $ 694 $ 748 $ 694 $ 748 Valuation Allowance Balance, beginning of period — — — (9 ) Decrease in impairment reserve (1) — — — 9 Balance, end of period — — — — Mortgage servicing rights, net $ 694 $ 748 $ 694 $ 748 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage banking activities, net. |
NOTE 6 - PLEDGED ASSETS
NOTE 6 - PLEDGED ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Guarantees and Product Warranties [Abstract] | |
NOTE 6 - PLEDGED ASSETS | NOTE 6 - PLEDGED ASSETS The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available. (in thousands) June 30, 2022 December 31, 2021 Securities available-for-sale (at fair value) $ 79,241 $ 75,737 Loans receivable (at book value) 369,717 378,845 Total pledged assets $ 448,958 $ 454,582 At June 30, 2022, securities were pledged as follows: $ 62.65 16.57 0.02 |
NOTE 7 _ DERIVATIVES AND HEDGIN
NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES | NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives Salisbury is exposed to certain risk arising from both its business operations and economic conditions. The Bank principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Bank manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Bank enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Bank uses derivative financial instruments to manage differences in the amount, timing, and duration of the Bank’s known or expected cash receipts and its known or expected cash payments principally related to its portfolio of loans to first-time home buyers. Fair Value Hedges of Interest Rate Risk The Company is exposed to changes in the fair value of certain pools of its pre-payable fixed-rate assets due to changes in benchmark interest rates. Salisbury uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate, Federal Funds. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for Salisbury receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. As of June 30, 2022 and December 30, 2021, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges: Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Loans receivable (1) $ 9,955 $ 9,982 $ (45 ) $ (18 ) Total $ 9,955 $ 9,982 $ (45 ) $ (18 ) (1) These amounts include the amortized cost basis of closed portfolios used in designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At June 30, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $ 35.6 45 10.0 The table below presents the fair value of Salisbury’s derivative financial instrument and its classification on the Balance Sheet as of June 30, 2022 and December 31, 2021. As of June 30, 2022 As of December 31, 2021 (in thousands) Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedge instruments Interest Rate Products $ 10,000 Other assets $ 49 Other Assets $ 18 Total Derivatives designated as hedge instruments $ 49 $ 18 The table below presents the effect of the Company’s derivative financial instruments on the Income Statement for the three and six months ended June 30, 2022 and June 30, 2021. Three months ended Six months ended (in thousands) Interest Interest Interest Interest Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ 18 $ — $ 19 $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2 — (27 ) — Derivatives designated as hedging instruments $ 16 $ — $ 46 $ — Three months ended Six months ended (in thousands) Interest Interest Interest Interest Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ — $ — $ 1 $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (2 ) — (4 ) — Derivatives designated as hedging instruments $ 2 $ — $ 5 $ — Credit-Risk Related Contingent Features Salisbury has an agreement with its derivative counterparty that contains a provision that provides that if the Bank defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Bank could also be declared in default on its derivative obligations. The agreement also contains a provision where if the Bank fails to maintain its status as a well / adequate capitalized institution, then Salisbury could be required to post cash or certain marketable securities issued by the U.S. Treasury or U.S. Government-sponsored enterprises as collateral. The minimum amount that Salisbury would have to post as collateral is $250 thousand. As of June 30, 2022, the fair value of the derivative was $49 thousand in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements. As of June 30, 2022, Salisbury has not posted any collateral related to these agreements. |
NOTE 8 _ EARNINGS PER SHARE
NOTE 8 – EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
NOTE 8 – EARNINGS PER SHARE | NOTE 8 – 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. All per share data has been adjusted to reflect the two-for-one forward common share split, which was effective on June 30, 2022. Three months ended Six months ended Periods ended June 30, (in thousands, except per share data) 2022 2021 2022 2021 Net income $ 3,845 $ 4,353 $ 7,414 $ 8,879 Less: Undistributed earnings allocated to participating securities (73 ) (66 ) (134 ) (130 ) Net income allocated to common stock $ 3,772 $ 4,287 $ 7,280 $ 8,749 Weighted-average common shares issued 5,776 5,704 5,755 5,698 Less: Unvested restricted stock awards (110 ) (86 ) (104 ) (84 ) Weighted average common shares outstanding used to calculate basic earnings per common share 5,666 5,620 5,651 5,614 Add: Dilutive effect of stock options 33 38 48 36 Weighted-average common shares outstanding used to calculate diluted earnings per common share 5,699 5,658 5,699 5,650 Earnings per common share (basic) $ 0.67 $ 0.76 $ 1.29 $ 1.56 Earnings per common share (diluted) $ 0.66 $ 0.76 $ 1.28 $ 1.55 |
NOTE 9 _ SHAREHOLDERS_ EQUITY
NOTE 9 – SHAREHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
NOTE 9 – SHAREHOLDERS’ EQUITY | NOTE 9 – SHAREHOLDERS’ EQUITY Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional 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 Bank became subject to capital regulations adopted by the Board of Governors of the Federal Reserve System (FRB) and the FDIC, which implemented the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The required minimum regulatory capital ratios to which the Bank is subject, and the minimum ratios required for the Bank to be categorized as “well capitalized” under the prompt corrective action framework are noted in the table below. In addition, the regulations established a capital conservation buffer of 2.5% effective January 1, 2019. Failure to maintain the capital conservation buffer will limit the ability of the Company and the Bank to pay discretionary bonuses and dividends. At June 30, 2022, the Bank exceeded the minimum requirement for the capital conservation buffer. As of June 30, 2022, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed that categorization. On March 31, 2021, Salisbury issued $ 25 15 10 As of June 30, 2022, Salisbury had not repurchased any of its common shares pursuant to the Common Stock Repurchase Plan approved by the Board of Directors in March 2022. The Bank’s risk-weighted assets at June 30, 2022 and December 31, 2021 were $ 1,204.7 1,085.4 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, 2022 Total Capital (to risk-weighted assets) $ 160,002 13.28 % $ 96,377 8.0 % $ 126,495 10.5 % $ 120,471 10.0 % Tier 1 Capital (to risk-weighted assets) 146,112 12.13 72,283 6.0 102,401 8.5 96,377 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 146,112 12.13 54,212 4.5 84,330 7.0 78,306 6.5 Tier 1 Capital (to average assets) $ 146,112 10.04 $ 58,231 4.0 $ 58,231 4.0 $ 72,788 5.0 December 31, 2021 Total Capital (to risk-weighted assets) $ 152,789 14.08 % $ 86,832 8.0 % $ 113,968 10.5 % $ 108,541 10.0 % Tier 1 Capital (to risk-weighted assets) 139,681 12.87 65,124 6.0 92,259 8.5 86,832 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 139,681 12.87 48,843 4.5 75,978 7.0 70,551 6.5 Tier 1 Capital (to average assets) $ 139,681 9.42 $ 59,285 4.0 $ 59,285 4.0 $ 74,106 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 July 24, 2020, 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. |
NOTE 10 _ BENEFITS
NOTE 10 – BENEFITS | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
NOTE 10 – BENEFITS | NOTE 10 – BENEFITS 401(k) Salisbury’s 401(k) Plan expense was $ 257 308 551 594 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: 49 73 84 129 Other Retirement Plans Salisbury adopted ASC 715-60, “Compensation - Retirement Benefits - Defined Benefit Plans - Other Postretirement" and recognized a liability for Salisbury’s future postretirement benefit obligations under endorsement split-dollar life insurance arrangements. The total liability for the arrangements included in other liabilities was $ 771 779 86 8 173 A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. In 2021 and 2020, the Bank awarded seven (7) Executives with discretionary contributions to the plan. On December 27, 2021, the Board of Directors of Salisbury Bank and Trust Company executed the Salisbury Bank and Trust Company Amended and Restated Non-Qualified Deferred Compensation Plan (the “Plan”), effective as of January 1, 2022. The Plan permits the Board to select certain key employees of the Bank to participate in the Plan, provided that such employees also evidence their participation by execution of a Participation Agreement. Before amendment and restatement, the Plan provided solely for discretionary bank contributions to selected participant’s accounts. The participation agreement sets forth the vesting terms of the discretionary contributions and the “benefit age” at which a participant could retire with a fully vested benefit. The participation agreement also sets forth how a participant’s benefit would be distributed (i.e., in a lump sum or in annual installments over a period of up to 10 years, as selected by the participant). Until distribution, a participant’s account would earn interest as of the last day of the plan year at the highest certificate of deposit rate for that year, compounded annually. The participant’s benefits under the Plan are subject to the vesting schedule set forth in the participant’s participation agreement. Notwithstanding the vesting schedule, the participant’s account balance will become automatically 100% vested upon involuntary termination without cause, death, disability or a change in control. The amended and restated Plan allows participant deferrals and provides greater flexibility in participant elections and investment options. The amended and restated Plan also provides additional distribution options, including distributions in the event of an unforeseeable emergency and on the occurrence of a specified date before separation from service, and allows a participant to elect for each year’s contributions the manner in which such distributions will be paid. Installment distributions can be made in monthly, quarterly or annual installments. Payment of benefits under the Plan, other than benefits payable as a result of base salary deferrals, are conditioned on the participant’s covenant to comply with non-compete, non-solicitation and non-disclosure provisions for a period of one year following the participant’s separation from service. The Bank has established a grantor trust to hold the assets of the Plan. Until distributed, the assets of the Plan are not legally owned by the participants. In second quarter 2022, Salisbury contributed $ 100 47 29 94 57 Management Agreements: Salisbury or the Bank has entered into various management agreements with its named executive officers (“NEOs”), including a severance agreement with Mr. Cantele, President and Chief Executive Officer, a change in control agreement with Mr. Albero, Executive Vice President and Chief Financial Officer, and a severance agreement with Mr. Davies, President of the New York Region and Chief Lending Officer. In addition to these agreements, Salisbury has change in control agreements or a severance agreement, with change in control provisions, with ten other executives with payouts ranging from 0.5 to 1.0 times base salary, annual cash bonus and other benefits. Such agreements, and their subsequent amendments, are designed to allow Salisbury to retain the services of the designated executives while reducing, to the extent possible, unnecessary disruptions to Salisbury’s operations. |
NOTE 11 _ LONG TERM INCENTIVE P
NOTE 11 – LONG TERM INCENTIVE PLANS | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
NOTE 11 – LONG TERM INCENTIVE PLANS | NOTE 11 – LONG TERM INCENTIVE PLANS Restricted stock Restricted stock expense was $ 243 168 431 300 17 32 44 30 78 54 In second quarter 2022, Salisbury granted a total of 18,340 1.0 1.5 1.2 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 (Phantom). Salisbury paid out the final tranche of these awards in January 2021. The performance goal for awards granted under the RSU plan in 2019 was based on the increase in the Bank’s tangible book value by $3.50 per share over the performance period for threshold performance. The vesting ranged 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 This tranche of awards vested in second quarter 2022 at 150% for achieving tangible book value per share growth in excess of target payout performance. The vesting of these awards occurred prior to June 30, 2022 and was not affected by the two-for-one forward stock split. On July 29, 2020, the Compensation Committee granted an additional 14,500 On June 23, 2021, the Compensation Committee granted an additional 14,800 On February 28, 2022, the Compensation Committee granted an additional 13,900 The fair value of the awards granted under the RSU plan at the grant date was $ 394 354 96 103 193 174 Short Term Incentive Plan (STIP) Salisbury offers a short-term discretionary compensation plan to eligible employees on an annual basis. Under this incentive plan, Salisbury may reward employees with cash compensation if certain pre-determined Bank and individual performance goals have been achieved. The STIP expense, which is included in compensation expenses, totaled $ 271 310 538 548 Options Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In second quarter 2022, a former Riverside employee exercised 4,050 8.52 7,020 3,510 8.52 |
NOTE 12 _ FAIR VALUE OF ASSETS
NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES | NOTE 12 – 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 and the CRA mutual fund are recorded at fair value on a recurring basis. Additionally, from time to time, other assets are recorded at fair value on a nonrecurring basis, such as loans held for sale, collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. Salisbury adopted ASC 820-10, “Fair Value Measurement - Overall,” which provides a framework for measuring fair value under generally accepted accounting principles. This guidance permitted Salisbury the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. Salisbury did not elect fair value treatment for any financial assets or liabilities upon adoption. In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury’s market assumptions. These two types of inputs have created the following fair value hierarchy: Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange 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. The following is a description of valuation methodologies for assets recorded at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. Securities available-for-sale and the CRA mutual fund. Securities available-for-sale and the CRA mutual fund are recorded at fair value on a recurring basis. Level 1 securities include exchange-traded equity securities. Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of the U.S. Treasury and U.S. government-sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, municipal bonds, SBA bonds, corporate bonds and certain preferred equities. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. Derivative financial instruments. The fair value of the interest rate swap is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. Other real estate owned acquired through foreclosure or repossession is adjusted to fair value less costs to sell upon transfer out of loans. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. Assets measured at fair value are as follows: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value June 30, 2022 Assets at fair value on a recurring basis U.S. Treasury $ — $ 17,672 $ — $ 17,672 U.S. Government Agency notes — 29,718 — 29,718 Municipal bonds — 48,267 — 48,267 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 71,467 — 71,467 Collateralized mortgage obligations: U.S. Government agencies — 22,552 — 22,552 Corporate bonds — 13,434 — 13,434 Securities available-for-sale $ — $ 203,110 $ — $ 203,110 Mutual funds 1,672 — — 1,672 Derivative financial instruments — 49 — 49 December 31, 2021 Assets at fair value on a recurring basis U.S. Treasury $ — $ 15,131 $ — $ 15,131 U.S. Government Agency notes — 31,604 — 31,604 Municipal bonds — 47,822 — 47,822 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 74,541 — 74,541 Collateralized mortgage obligations: U.S. Government agencies — 20,898 — 20,898 Corporate bonds — 12,400 — 12,400 Securities available-for-sale $ — $ 202,396 $ — $ 202,396 Mutual fund 901 — — 901 Derivative financial instruments — 18 — 18 Assets at fair value on a non-recurring basis Assets held for sale 1 $ 700 $ — $ — $ 700 1 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, 2022 Financial Assets Cash and cash equivalents $ 71,467 $ 71,467 $ 71,467 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale, net 203,110 203,110 — 203,110 — Mutual funds 1,672 1,672 1,672 — — Federal Home Loan Bank of Boston stock 945 945 — 945 — Loans held-for-sale — — — — — Loans receivable, net 1,135,758 1,112,258 — — 1,112,258 Accrued interest receivable 6,123 6,123 — 6,123 — Cash surrender value of life insurance policies 28,063 28,063 — 28,063 — Derivative financial instruments 49 49 — 49 — Financial Liabilities Demand (non-interest-bearing) $ 383,674 $ 383,674 $ — $ 383,674 $ — Demand (interest-bearing) 233,947 233,947 — 233,947 — Money market 314,244 314,244 — 314,244 — Savings and other 231,322 231,322 — 231,322 — Certificates of deposit 153,352 153,321 — 153,321 — Deposits 1,316,539 1,316,508 — 1,316,508 — Repurchase agreements 16,574 16,574 — 16,574 — FHLBB advances — — — — — Subordinated debt 24,502 22,428 — 22,428 — Note payable 149 151 — 151 — Finance lease obligation 4,329 4,267 — — 4,267 Accrued interest payable 44 44 — 44 — December 31, 2021 Financial Assets Cash and cash equivalents $ 175,335 $ 175,335 $ 175,335 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 202,396 202,396 — 202,396 — Mutual funds 901 901 901 — — Federal Home Loan Bank of Boston stock 1,397 1,397 — 1,397 — Loans held-for-sale 2,684 2,721 — — 2,721 Loans receivable, net 1,066,750 1,066,733 — — 1,066,733 Accrued interest receivable 6,260 6,260 — 6,260 — Cash surrender value of life insurance policies 27,738 27,738 — 27,738 — Derivative financial instruments 18 18 — 18 — Financial Liabilities Demand (non-interest-bearing) $ 416,073 $ 416,073 $ — $ 416,073 $ — Demand (interest-bearing) 233,600 233,600 — 233,600 — Money market 330,436 330,436 — 330,436 — Savings and other 237,075 237,075 — 237,075 — Certificates of deposit 119,009 119,716 — 119,716 — Deposits 1,336,193 1,336,900 — 1,336,900 — Repurchase agreements 11,430 11,430 — 11,430 — FHLBB advances 7,656 7,714 — 7,714 — Subordinated debt 24,474 24,409 — 24,409 — Note payable 170 171 — 171 — Finance lease liability 4,107 4,223 — — 4,223 Accrued interest payable 49 49 — 49 — 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. |
NOTE 13 _ SUBSEQUENT EVENTS
NOTE 13 – SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
NOTE 13 – SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS On July 20, 2022 the Board of Directors of Salisbury approved a quarterly cash dividend of $ 0.16 In July 2022, Salisbury management discovered that the Bank’s trust department terminated a trust account in May 2020 and distributed approximately $1.0 million that should have been retained in continuance of the trust account. Salisbury is currently evaluating the Company’s potential financial exposure. At this time, management believes that Salisbury’s exposure is not yet known or knowable and could potentially range from zero to approximately $1.0 million depending upon the facts and circumstances and the scope of Salisbury’s insurance coverage. Salisbury has engaged legal counsel to advise the Company with respect to the proper actions to be taken to address this matter. |
NOTE 1 - BASIS OF PRESENTATION
NOTE 1 - BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | 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 removes all recognition thresholds and requires 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 clarifies 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 clarifies 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. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” which clarifies or addresses specific issues about certain aspects of the amendments in ASU 2016-13. The amendments in ASU 2019-11 clarify the following: (1) The allowance for credit losses (ACL) 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. In March 2022, the FASB issued ASU 2022-02, which clarifies the treatment of accrued interest when measuring credit losses. The amendments in this Update eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. 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 losses in conformance with this ASU. Salisbury will continue to refine this model and assess the impact to its consolidated financial statements. The Bank is working towards the completion of its ACL methodology. To estimate the ACL for loans and off-balance sheet credit exposures, such as unfunded loan commitments, Salisbury will utilize a discounted cash flow model that contains additional assumptions to calculate credit losses over the estimated life of financial assets and off-balance sheet credit exposures and will include the impact of forecasted economic conditions. The estimate is expected to include a one-year reasonable and supportable forecast period and thereafter a one-year reversion period to the historical mean of its macroeconomic assumption. The estimate will also include qualitative factors that may not be reflected in quantitatively derived results to ensure that the ACL reflects a reasonable estimate of current expected credit losses. The Bank is currently refining various ACL assumptions and running parallel calculations on a monthly basis. Salisbury estimates that under the CECL framework, the ACL would be $13.6 million compared with the allowance for loan losses of $13.7 million reported on the consolidated balance sheet at June 30, 2022. In addition, Salisbury estimates that the ACL for unfunded commitments would be approximately $1.2 million compared with the allowance of $0.2 million recorded on its consolidated balance sheet as of June 30, 2022. Salisbury will continue to refine its ACL methodology prior to implementation of CECL on January 1, 2023. In addition, the estimated ACL and allowance for unfunded commitments under both the Incurred Loss method and CECL will be affected by various factors, which include but are not limited to, changes in the composition and balance of Salisbury’s loan portfolio and unfunded commitments, changes to internal risk ratings of borrowers, changes to the risk-profile of the loan portfolio, changes in various macro-economic indicators, the impact of COVID-19 and geo-political events on the business environment, and other factors. Based on the credit quality of Salisbury’s existing available for sale debt securities portfolio, which primarily consists of obligations of U.S. government agency and U.S. government-sponsored enterprise securities, including mortgage-backed securities, Salisbury does not expect the adoption of ASU 2016-13, as it relates to debt securities, to be significant. For available for sale debt securities with unrealized losses, credit losses will be recognized as an allowance rather than a reduction in the amortized cost of the securities. As a result, improvements to estimated credit losses will be recognized immediately in earnings rather than as interest income over time. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848).” In response to the risk of cessation of the London Interbank Offered Rate (LIBOR) as a reference rate, this ASU clarifies the scope of Topic 848 so that derivatives affected by this transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. An entity may elect to apply the amendments in this ASU on a full retrospective basis as of any date from the beginning interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that the financial statements are available to be issued. The transition from LIBOR is not expected to have a material impact on Salisbury’s Consolidated Financial Statements. In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815) Fair Value Hedging – Portfolio Layer Method.” The amendments in this update clarified the following: (1) The current last-of-layer method that permits only one hedged layer has been expanded to allow multiple hedged layers of a single closed portfolio. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method; (2) The scope of the portfolio layer method has been expanded to include non-pre-payable financial assets; (3) Eligible hedging instruments in a single-layer hedge may include spot-starting or forward-starting constant-notional swaps, or spot-or forward-starting amortizing-notional swaps and that the number of hedged layers (that is, single or multiple) corresponds with the number of hedges designated; (4) Additional guidance is provided on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method whether a single hedged layer or multiple hedged layers are designated; and (5) How hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted for any entity that has adopted the amendments in ASU 2017-12 for the corresponding period. Salisbury does not expect the implementation of ASU 2022-01 to have a material impact on its consolidated financial statements. |
NOTE 2 - SECURITIES (Tables)
NOTE 2 - SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities [Table Text Block] | (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value June 30, 2022 Available-for-sale U.S. Treasury $ 19,250 $ — $ 1,578 $ 17,672 U.S. Government Agency notes 31,301 128 1,711 29,718 Municipal bonds 55,339 2 7,074 48,267 Mortgage-backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 77,339 52 5,924 71,467 Collateralized mortgage obligations: U.S. Government agencies 24,531 — 1,979 22,552 Corporate bonds 13,750 10 326 13,434 Total securities available-for-sale $ 221,510 $ 192 $ 18,592 $ 203,110 Mutual fund $ 1,672 Non-marketable securities Federal Home Loan Bank of Boston stock $ 945 $ — $ — $ 945 (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value December 31, 2021 Available-for-sale U.S. Treasury $ 15,301 $ 12 $ 182 $ 15,131 U.S. Government Agency notes 31,623 237 256 31,604 Municipal bonds 46,469 1,557 204 47,822 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 74,703 643 805 74,541 Collateralized mortgage obligations: U.S. Government agencies 20,948 135 185 20,898 Corporate bonds 12,250 158 8 12,400 Total securities available-for-sale $ 201,294 $ 2,742 $ 1,640 $ 202,396 Mutual fund $ 901 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,397 $ — $ — $ 1,397 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less than 12 Months 12 Months or Longer Total June 30, 2022 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 17,672 $ 1,578 $ — $ — $ 17,672 $ 1,578 U.S. Government Agency notes 14,998 1,367 9,267 344 24,265 1,711 Municipal bonds 45,603 6,717 1,518 357 47,121 7,074 Mortgage- backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 50,249 4,679 14,709 1,245 64,958 5,924 Collateralized mortgage obligations: U.S. Government agencies 22,552 1,979 — — 22,552 1,979 Corporate bonds 7,424 326 — — 7,424 326 Total temporarily impaired securities $ 158,498 $ 16,646 $ 25,494 $ 1,946 $ 183,992 $ 18,592 Less than 12 Months 12 Months or Longer Total December 31, 2021 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Treasury $ 12,155 $ 182 $ — $ — $ 12,155 $ 182 U.S. Government Agency notes 22,137 235 2,019 21 24,156 256 Municipal bonds 12,496 204 552 — 13,048 204 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 52,619 740 3,195 65 55,814 805 Collateralized mortgage obligations 11,554 185 — — 11,554 185 Corporate bonds 1,742 8 — — 1,742 8 Total temporarily impaired securities $ 112,703 $ 1,554 $ 5,766 $ 86 $ 118,469 $ 1,640 |
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block] | June 30, 2022 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Treasury After 1 year but within 5 years $ 7,859 $ 7,444 1.32 % After 5 year but within 10 years 11,391 10,228 1.18 Total 19,250 17,672 1.24 U.S. Government Agency notes After 1 year but within 5 years 3,990 3,666 0.92 After 5 year but within 10 years 11,923 10,721 1.34 Total 15,913 14,387 1.23 Municipal bonds After 1 year but within 5 years 512 478 1.74 After 5 year but within 10 years 12,792 11,179 2.38 After 10 years but within 15 years 12,971 11,282 2.36 After 15 years 29,064 25,328 2.84 Total 55,339 48,267 2.61 Mortgage-backed securities and Collateralized mortgage obligations Securities not due at a single maturity date 117,258 109,350 2.00 Total 117,258 109,350 2.00 Corporate bonds After 5 years but within 10 years 13,750 13,434 4.35 Total 13,750 13,434 4.35 Securities available-for-sale $ 221,510 $ 203,110 2.27 % (1) |
NOTE 3 _ LOANS (Tables)
NOTE 3 – LOANS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (In thousands) June 30, 2022 December 31, 2021 Residential 1-4 family $ 398,556 $ 373,131 Residential 5+ multifamily 69,272 52,325 Construction of residential 1-4 family 22,379 19,738 Home equity lines of credit 23,763 23,270 Residential real estate 513,970 468,464 Commercial 338,091 310,923 Construction of commercial 49,696 58,838 Commercial real estate 387,787 369,761 Farm land 3,668 2,807 Vacant land 15,397 14,182 Real estate secured 920,822 855,214 Commercial and industrial ex PPP Loans 189,086 169,543 PPP Loans 2,894 25,589 Total Commercial and industrial 191,980 195,132 Municipal 17,486 16,534 Consumer 18,155 12,547 Loans receivable, gross 1,148,443 1,079,427 Deferred loan origination costs, net 1,018 285 Allowance for loan losses (13,703 ) (12,962 ) Loans receivable, net $ 1,135,758 $ 1,066,750 Loans held-for-sale Residential 1-4 family $ — $ 2,684 |
Financing Receivable Credit Quality Indicators [Table Text Block] | (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2022 Residential 1-4 family $ 393,642 $ 3,093 $ 1,821 $ — $ — $ 398,556 Residential 5+ multifamily 69,117 75 80 — — 69,272 Construction of residential 1-4 family 20,279 — 2,100 — — 22,379 Home equity lines of credit 23,592 171 — — — 23,763 Residential real estate 506,630 3,339 4,001 — — 513,970 Commercial 312,206 20,455 5,430 — — 338,091 Construction of commercial 49,696 — — — — 49,696 Commercial real estate 361,902 20,455 5,430 — — 387,787 Farm land 1,963 1,296 409 — — 3,668 Vacant land 15,362 35 — — — 15,397 Real estate secured 885,857 25,125 9,840 — — 920,822 Commercial and industrial 189,228 920 1,832 — — 191,980 Municipal 17,486 — — — — 17,486 Consumer 18,155 — — — — 18,155 Loans receivable, gross $ 1,110,726 $ 26,045 $ 11,672 $ — $ — $ 1,148,443 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2021 Residential 1-4 family $ 367,225 $ 3,543 $ 2,363 $ — $ — $ 373,131 Residential 5+ multifamily 50,588 79 1,658 — — 52,325 Construction of residential 1-4 family 19,738 — — — — 19,738 Home equity lines of credit 23,037 212 21 — — 23,270 Residential real estate 460,588 3,834 4,042 — — 468,464 Commercial 271,821 16,034 23,068 — — 310,923 Construction of commercial 58,838 — — — — 58,838 Commercial real estate 330,659 16,034 23,068 — — 369,761 Farm land 1,162 1,214 431 — — 2,807 Vacant land 14,143 39 — — — 14,182 Real estate secured 806,552 21,121 27,541 — — 855,214 Commercial and industrial 191,857 688 2,587 — — 195,132 Municipal 16,534 — — — — 16,534 Consumer 12,547 — — — — 12,547 Loans receivable, gross $ 1,027,490 $ 21,809 $ 30,128 $ — $ — $ 1,079,427 |
Financing Receivable, Nonaccrual [Table Text Block] | 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, 2022 Residential 1-4 family $ 398,234 $ 152 $ 155 $ — $ 15 $ 322 $ — $ 350 Residential 5+ multifamily 69,272 — — — — — — — Construction of residential 1-4 family 22,310 — — 69 — 69 69 2,100 Home equity lines of credit 23,437 326 — — — 326 — — Residential real estate 513,253 478 155 69 15 717 69 2,450 Commercial 338,006 — 85 — — 85 — 1,228 Construction of commercial 49,696 — — — — — — — Commercial real estate 387,702 — 85 — — 85 — 1,228 Farm land 3,668 — — — — — — 409 Vacant land 15,397 — — — — — — — Real estate secured 920,020 478 240 69 15 802 69 4,087 Commercial and industrial 191,780 189 — — 11 200 11 62 Municipal 17,486 — — — — — — — Consumer 18,061 87 7 — — 94 — — Loans receivable, gross $ 1,147,347 $ 754 $ 247 $ 69 $ 26 $ 1,096 $ 80 $ 4,149 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, 2021 Residential 1-4 family $ 372,620 $ 223 $ 135 $ 63 $ 90 $ 511 $ — $ 750 Residential 5+ multifamily 51,464 — — — 861 861 — 861 Construction of residential 1-4 family 19,668 — 70 — — 70 — — Home equity lines of credit 23,000 165 98 — 7 270 — 21 Residential real estate 466,752 388 303 63 958 1,712 — 1,632 Commercial 310,331 87 251 — 254 592 — 1,924 Construction of commercial 58,838 — — — — — — — Commercial real estate 369,169 87 251 — 254 592 — 1,924 Farm land 2,807 — — — — — — 432 Vacant land 14,182 — — — — — — — Real estate secured 852,910 475 554 63 1,212 2,304 — 3,988 Commercial and industrial 194,838 250 32 1 11 294 11 200 Municipal 16,534 — — — — — — — Consumer 12,503 40 4 — — 44 — — Loans receivable, gross $ 1,076,785 $ 765 $ 590 $ 64 $ 1,223 $ 2,642 $ 11 $ 4,188 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Three months ended June 30, 2022 Three months ended June 30, 2021 Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Residential 1-4 family $ 3,063 $ 232 $ ( 9 ) $ — $ 3,286 $ 2,430 $ ( 55 ) $ ( 1 ) $ 3 $ 2,377 Residential 5+ multifamily 820 337 — — 1,157 622 (77 ) — — 545 Construction of residential 1-4 family 195 138 — — 333 77 18 — — 95 Home equity lines of credit 198 16 (9 ) — 205 195 (5 ) — — 190 Residential real estate 4,276 723 (18 ) — 4,981 3,324 (119 ) (1 ) 3 3,207 Commercial 5,196 241 (269 ) 1 5,169 7,080 (875 ) — 7 6,212 Construction of commercial 1,139 (267 ) — — 872 584 102 (18 ) — 668 Commercial real estate 6,335 (26 ) (269 ) 1 6,041 7,664 (773 ) (18 ) 7 6,880 Farm land 19 8 — — 27 50 (18 ) — — 32 Vacant land 110 (2 ) — — 108 109 (22 ) — — 87 Real estate secured 10,740 703 (287 ) 1 11,157 11,147 (932 ) (19 ) 10 10,206 Commercial and industrial 1,176 304 — — 1,480 1,369 (27 ) (131 ) 45 1,256 Municipal 27 8 — — 35 43 (11 ) — — 32 Consumer 105 51 (30 ) 4 130 52 22 (11 ) 3 66 Unallocated 867 34 — — 901 1,275 (127 ) — — 1,148 Totals $ 12,915 $ 1,100 $ (317 ) $ 5 $ 13,703 $ 13,886 $ ( 1,075 ) $ ( 161 ) $ 58 $ 12,708 Six months ended June 30, 2022 Six months ended June 30, 2021 Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,846 $ 468 $ ( 28 ) $ — $ 3,286 $ 2,646 $ ( 264 ) $ ( 10 ) $ 5 $ 2,377 Residential 5+ multifamily 817 571 (231 ) — 1,157 686 (141 ) — — 545 Construction of residential 1-4 family 186 147 — — 333 65 30 — — 95 Home equity lines of credit 198 18 (11 ) — 205 252 (62 ) — — 190 Residential real estate 4,047 1,204 (270 ) — 4,981 3,649 (437 ) (10 ) 5 3,207 Commercial 5,416 125 (373 ) 1 5,169 6,546 (345 ) (6 ) 17 6,212 Construction of commercial 1,025 (153 ) — — 872 596 90 (18 ) — 668 Commercial real estate 6,441 (28 ) (373 ) 1 6,041 7,142 (255 ) (24 ) 17 6,880 Farm land 21 6 — — 27 59 (27 ) — — 32 Vacant land 95 13 — — 108 180 (93 ) — — 87 Real estate secured 10,604 1,195 (643 ) 1 11,157 11,030 (812 ) (34 ) 22 10,206 Commercial and industrial 1,364 161 (46 ) 1 1,480 1,397 (55 ) (131 ) 45 1,256 Municipal 31 4 — — 35 43 (11 ) — — 32 Consumer 82 83 (45 ) 10 130 77 20 (15 ) (16 ) 66 Unallocated 881 20 — — 901 1,207 (59 ) — — 1,148 Totals $ 12,962 $ 1,463 $ ( 734 ) $ 12 $ 13,703 $ 13,754 $ ( 917 ) $ ( 180 ) $ 51 $ 12,708 |
[custom:CompositionOfLoansReceivableAndAllowanceForLoanLossesTableTextBlock] | (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance June 30, 2022 Residential 1-4 family $ 396,703 $ 3,286 $ 1,853 $ — $ 398,556 $ 3,286 Residential 5+ multifamily 69,192 1,157 80 — 69,272 1,157 Construction of residential 1-4 family 20,279 192 2,100 141 22,379 333 Home equity lines of credit 23,763 205 — — 23,763 205 Residential real estate 509,937 4,840 4,033 141 513,970 4,981 Commercial 335,508 5,145 2,583 24 338,091 5,169 Construction of commercial 49,696 872 — — 49,696 872 Commercial real estate 385,204 6,017 2,583 24 387,787 6,041 Farm land 3,259 27 409 — 3,668 27 Vacant land 15,397 108 — — 15,397 108 Real estate secured 913,797 10,992 7,025 165 920,822 11,157 Commercial and industrial 191,844 1,478 136 2 191,980 1,480 Municipal 17,486 35 — — 17,486 35 Consumer 18,155 130 — — 18,155 130 Unallocated allowance — 901 — — — 901 Totals $ 1,141,282 $ 13,536 $ 7,161 $ 167 $ 1,148,443 $ 13,703 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2021 Residential 1-4 family $ 370,558 $ 2,845 $ 2,573 $ 1 $ 373,131 $ 2,846 Residential 5+ multifamily 51,376 817 949 — 52,325 817 Construction of residential 1-4 family 19,738 186 — — 19,738 186 Home equity lines of credit 23,249 198 21 — 23,270 198 Residential real estate 464,921 4,046 3,543 1 468,464 4,047 Commercial 307,377 5,388 3,546 28 310,923 5,416 Construction of commercial 58,838 1,025 — — 58,838 1,025 Commercial real estate 366,215 6,413 3,546 28 369,761 6,441 Farm land 2,375 21 432 — 2,807 21 Vacant land 14,182 95 — — 14,182 95 Real estate secured 847,694 10,575 7,520 29 855,214 10,604 Commercial and industrial 194,856 1,297 276 67 195,132 1,364 Municipal 16,534 31 — — 16,534 31 Consumer 12,547 82 — — 12,547 82 Unallocated allowance — 881 — — — 881 Totals $ 1,071,630 $ 12,866 $ 7,797 $ 96 $ 1,079,427 $ 12,962 |
Financing Receivable, Noncurrent, Allowance for Credit Loss [Table Text Block] | June 30, 2022 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,134,514 $ 12,228 $ — $ — $ 1,134,514 $ 12,228 Potential problem loans 1 6,768 407 — — 6,768 407 Impaired loans — — 7,161 167 7,161 167 Unallocated allowance — 901 — — — 901 Totals $ 1,141,282 $ 13,536 $ 7,161 $ 167 $ 1,148,443 $ 13,703 December 31, 2021 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,046,614 $ 10,456 $ — $ — $ 1,046,614 $ 10,456 Potential problem loans 1 25,016 1,529 — — 25,016 1,529 Impaired loans — — 7,797 96 7,797 96 Unallocated allowance — 881 — — — 881 Totals $ 1,071,630 $ 12,866 $ 7,797 $ 96 $ 1,079,427 $ 12,962 1 |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block] | Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Recorded Investment Note Average allowance recognized Recorded Investment Note Average recognized June 30, 2022 Residential $ 2,100 $ 2,106 $ 568 $ 141 $ 24 $ 1,933 $ 2,056 $ 2,531 $ 29 Home equity lines of credit — — — — — — — 15 — Residential real estate 2,100 2,106 568 141 24 1,933 2,056 2,546 29 Commercial 584 584 633 24 15 1,999 2,494 2,579 21 Construction of commercial — — — — — — — — — Farm land — — — — — 409 447 420 — Vacant land — — — — — — — — — Real estate secured 2,684 2,690 1,201 165 39 4,341 4,997 5,545 50 Commercial and industrial 73 73 115 2 2 63 60 62 1 Consumer — — — — — — — — — Totals $ 2,757 $ 2,763 $ 1,316 $ 167 $ 41 $ 4,404 $ 5,057 $ 5,607 $ 51 Note: The income recognized is for the six-month period ended June 30, 2022. Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Recorded Investment Note Average allowance recognized Recorded Investment Note Average recognized June 30, 2021 Residential $ 47 $ 49 $ 1,580 $ 3 $ 1 $ 4,326 $ 4,776 $ 3,401 $ 40 Home equity lines of credit — — 32 — — 147 188 168 — Residential real estate 47 49 1,612 3 1 4,473 4,964 3,569 40 Commercial 1,140 1,164 2,294 45 25 3,341 3,984 3,024 44 Construction of commercial — — — — — — — — — Farm land — — — — — 594 764 344 — Vacant land — — 104 — — 160 178 60 4 Real estate secured 1,187 1,213 4,010 48 26 8,568 9,890 6,997 88 Commercial and industrial 364 377 365 115 2 86 243 92 1 Consumer — — 11 — — 21 21 13 1 Totals $ 1,551 $ 1,590 $ 4,386 $ 163 $ 28 $ 8,675 $ 10,154 $ 7,102 $ 90 Note: The income recognized is for the six-month period ended June 30, 2021. Certain data with respect to loans individually evaluated for impairment is as follows as of and for the year ended December 31, 2021: Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Recorded Investment Note Average allowance recognized Recorded Investment Note Average recognized December 31, 2021 Residential $ 43 $ 44 $ 872 $ 1 $ 3 $ 3,480 $ 3,817 $ 3,689 $ 75 Home equity lines of credit — — 17 — — 21 23 131 — Residential real estate 43 44 889 1 3 3,501 3,840 3,820 75 Commercial 608 608 1,678 28 32 2,938 3,493 2,974 62 Construction of commercial — — — — — — — — — Farm land — — — — — 431 447 440 — Vacant land — — 56 — — — — 45 — Real estate secured 651 652 2,623 29 35 6,870 7,780 7,279 137 Commercial and industrial 216 224 309 67 3 60 72 90 — Consumer — — 6 — — — — 13 — Totals $ 867 $ 876 $ 2,938 $ 96 $ 38 $ 6,930 $ 7,852 $ 7,382 $ 137 |
NOTE 4 _ LEASES (Tables)
NOTE 4 – LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Note 4 Leases | |
Finance Lease, Liability, Fiscal Year Maturity [Table Text Block] | ($ in thousands, except lease term and discount rate) Classification June 30, 2022 December 31, 2021 Assets Operating Other assets $ 910 $ 1,021 Finance Bank premises and equipment 1 3,968 3,791 Total Leased Assets $ 4,878 $ 4,812 Liabilities Operating Other liabilities $ 910 $ 1,021 Finance Finance lease 4,330 4,107 Total lease liabilities $ 5,240 $ 5,128 1 Net of accumulated depreciation of $ 608 496 Lease cost Classification Six months ended Three months ended June 30, 2022 June 30, 2022 Operating leases Premises and equipment $ 147 $ 73 Finance leases: Amortization of leased assets Premises and equipment 112 77 Interest on finance leases Interest expense 82 41 Total lease cost $ 341 $ 191 Lease cost Classification Six months ended Three months ended June 30, 2021 June 30, 2021 Operating leases Premises and equipment $ 147 $ 68 Finance leases: Amortization of leased assets Premises and equipment 51 25 Interest on finance leases Interest expense 69 36 Total lease cost $ 267 $ 129 Weighted Average Remaining Lease Term June 30, 2022 December 31, 2021 Operating leases 6.8 years 6.9 years Financing leases 22.0 years 23.5 years Weighted Average Discount Rate 1 Operating leases 3.7 % 3.60 % Financing leases 3.40 % 5.00 % 1 Salisbury uses the FHLBB five-year Advance rate as the discount rate, as its leases do not provide an implicit rate. |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Future minimum lease payments (in thousands) Operating Leases Finance Leases 2022 $ 99 $ 149 2023 167 304 2024 129 314 2025 137 324 2026 137 324 Thereafter 379 4,978 Total future minimum lease payments 1,048 6,393 Less amount representing interest (138 ) (2,064 ) Total present value of net future minimum lease payments $ 910 $ 4,329 |
NOTE 5 - MORTGAGE SERVICING R_2
NOTE 5 - MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule of Participating Mortgage Loans [Table Text Block] | (in thousands) June 30, 2022 December 31, 2021 Residential mortgage loans serviced for others $ 140,344 $ 140,623 Fair value of mortgage servicing rights 1,338 1,043 |
Servicing Liability at Amortized Cost [Table Text Block] | Three months ended Six months ended Periods ended June 30, (in thousands) 2022 2021 2022 2021 Mortgage Servicing Rights Balance, beginning of period $ 716 $ 739 $ 700 $ 621 Originated 17 64 72 258 Amortization (1) (39 ) (55 ) (78 ) (131 ) Balance, end of period $ 694 $ 748 $ 694 $ 748 Valuation Allowance Balance, beginning of period — — — (9 ) Decrease in impairment reserve (1) — — — 9 Balance, end of period — — — — Mortgage servicing rights, net $ 694 $ 748 $ 694 $ 748 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage banking activities, net. |
NOTE 6 - PLEDGED ASSETS (Tables
NOTE 6 - PLEDGED ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | (in thousands) June 30, 2022 December 31, 2021 Securities available-for-sale (at fair value) $ 79,241 $ 75,737 Loans receivable (at book value) 369,717 378,845 Total pledged assets $ 448,958 $ 454,582 |
NOTE 7 _ DERIVATIVES AND HEDG_2
NOTE 7 – DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Loans receivable (1) $ 9,955 $ 9,982 $ (45 ) $ (18 ) Total $ 9,955 $ 9,982 $ (45 ) $ (18 ) (1) These amounts include the amortized cost basis of closed portfolios used in designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At June 30, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $ 35.6 45 10.0 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | As of June 30, 2022 As of December 31, 2021 (in thousands) Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedge instruments Interest Rate Products $ 10,000 Other assets $ 49 Other Assets $ 18 Total Derivatives designated as hedge instruments $ 49 $ 18 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Three months ended Six months ended (in thousands) Interest Interest Interest Interest Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ 18 $ — $ 19 $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2 — (27 ) — Derivatives designated as hedging instruments $ 16 $ — $ 46 $ — Three months ended Six months ended (in thousands) Interest Interest Interest Interest Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ — $ — $ 1 $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (2 ) — (4 ) — Derivatives designated as hedging instruments $ 2 $ — $ 5 $ — |
NOTE 8 _ EARNINGS PER SHARE (Ta
NOTE 8 – EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended Periods ended June 30, (in thousands, except per share data) 2022 2021 2022 2021 Net income $ 3,845 $ 4,353 $ 7,414 $ 8,879 Less: Undistributed earnings allocated to participating securities (73 ) (66 ) (134 ) (130 ) Net income allocated to common stock $ 3,772 $ 4,287 $ 7,280 $ 8,749 Weighted-average common shares issued 5,776 5,704 5,755 5,698 Less: Unvested restricted stock awards (110 ) (86 ) (104 ) (84 ) Weighted average common shares outstanding used to calculate basic earnings per common share 5,666 5,620 5,651 5,614 Add: Dilutive effect of stock options 33 38 48 36 Weighted-average common shares outstanding used to calculate diluted earnings per common share 5,699 5,658 5,699 5,650 Earnings per common share (basic) $ 0.67 $ 0.76 $ 1.29 $ 1.56 Earnings per common share (diluted) $ 0.66 $ 0.76 $ 1.28 $ 1.55 |
NOTE 9 _ SHAREHOLDERS_ EQUITY (
NOTE 9 – SHAREHOLDERS’ EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | 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, 2022 Total Capital (to risk-weighted assets) $ 160,002 13.28 % $ 96,377 8.0 % $ 126,495 10.5 % $ 120,471 10.0 % Tier 1 Capital (to risk-weighted assets) 146,112 12.13 72,283 6.0 102,401 8.5 96,377 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 146,112 12.13 54,212 4.5 84,330 7.0 78,306 6.5 Tier 1 Capital (to average assets) $ 146,112 10.04 $ 58,231 4.0 $ 58,231 4.0 $ 72,788 5.0 December 31, 2021 Total Capital (to risk-weighted assets) $ 152,789 14.08 % $ 86,832 8.0 % $ 113,968 10.5 % $ 108,541 10.0 % Tier 1 Capital (to risk-weighted assets) 139,681 12.87 65,124 6.0 92,259 8.5 86,832 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 139,681 12.87 48,843 4.5 75,978 7.0 70,551 6.5 Tier 1 Capital (to average assets) $ 139,681 9.42 $ 59,285 4.0 $ 59,285 4.0 $ 74,106 5.0 |
NOTE 12 _ FAIR VALUE OF ASSET_2
NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value June 30, 2022 Assets at fair value on a recurring basis U.S. Treasury $ — $ 17,672 $ — $ 17,672 U.S. Government Agency notes — 29,718 — 29,718 Municipal bonds — 48,267 — 48,267 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 71,467 — 71,467 Collateralized mortgage obligations: U.S. Government agencies — 22,552 — 22,552 Corporate bonds — 13,434 — 13,434 Securities available-for-sale $ — $ 203,110 $ — $ 203,110 Mutual funds 1,672 — — 1,672 Derivative financial instruments — 49 — 49 December 31, 2021 Assets at fair value on a recurring basis U.S. Treasury $ — $ 15,131 $ — $ 15,131 U.S. Government Agency notes — 31,604 — 31,604 Municipal bonds — 47,822 — 47,822 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 74,541 — 74,541 Collateralized mortgage obligations: U.S. Government agencies — 20,898 — 20,898 Corporate bonds — 12,400 — 12,400 Securities available-for-sale $ — $ 202,396 $ — $ 202,396 Mutual fund 901 — — 901 Derivative financial instruments — 18 — 18 Assets at fair value on a non-recurring basis Assets held for sale 1 $ 700 $ — $ — $ 700 1 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 June 30, 2022 Financial Assets Cash and cash equivalents $ 71,467 $ 71,467 $ 71,467 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale, net 203,110 203,110 — 203,110 — Mutual funds 1,672 1,672 1,672 — — Federal Home Loan Bank of Boston stock 945 945 — 945 — Loans held-for-sale — — — — — Loans receivable, net 1,135,758 1,112,258 — — 1,112,258 Accrued interest receivable 6,123 6,123 — 6,123 — Cash surrender value of life insurance policies 28,063 28,063 — 28,063 — Derivative financial instruments 49 49 — 49 — Financial Liabilities Demand (non-interest-bearing) $ 383,674 $ 383,674 $ — $ 383,674 $ — Demand (interest-bearing) 233,947 233,947 — 233,947 — Money market 314,244 314,244 — 314,244 — Savings and other 231,322 231,322 — 231,322 — Certificates of deposit 153,352 153,321 — 153,321 — Deposits 1,316,539 1,316,508 — 1,316,508 — Repurchase agreements 16,574 16,574 — 16,574 — FHLBB advances — — — — — Subordinated debt 24,502 22,428 — 22,428 — Note payable 149 151 — 151 — Finance lease obligation 4,329 4,267 — — 4,267 Accrued interest payable 44 44 — 44 — December 31, 2021 Financial Assets Cash and cash equivalents $ 175,335 $ 175,335 $ 175,335 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 202,396 202,396 — 202,396 — Mutual funds 901 901 901 — — Federal Home Loan Bank of Boston stock 1,397 1,397 — 1,397 — Loans held-for-sale 2,684 2,721 — — 2,721 Loans receivable, net 1,066,750 1,066,733 — — 1,066,733 Accrued interest receivable 6,260 6,260 — 6,260 — Cash surrender value of life insurance policies 27,738 27,738 — 27,738 — Derivative financial instruments 18 18 — 18 — Financial Liabilities Demand (non-interest-bearing) $ 416,073 $ 416,073 $ — $ 416,073 $ — Demand (interest-bearing) 233,600 233,600 — 233,600 — Money market 330,436 330,436 — 330,436 — Savings and other 237,075 237,075 — 237,075 — Certificates of deposit 119,009 119,716 — 119,716 — Deposits 1,336,193 1,336,900 — 1,336,900 — Repurchase agreements 11,430 11,430 — 11,430 — FHLBB advances 7,656 7,714 — 7,714 — Subordinated debt 24,474 24,409 — 24,409 — Note payable 170 171 — 171 — Finance lease liability 4,107 4,223 — — 4,223 Accrued interest payable 49 49 — 49 — |
Composition of securities (Deta
Composition of securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-Sale, Cost of Security Sold or Transferred, Method, Specific Identification [Member] | ||
Available-for-sale | ||
U.S. Treasury | $ 19,250 | $ 15,301 |
U.S. Government Agency notes | 31,301 | 31,623 |
Municipal bonds | 55,339 | 46,469 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 77,339 | 74,703 |
U.S. Government agencies | 24,531 | 20,948 |
Corporate bonds | 13,750 | 12,250 |
Total securities available-for-sale | 221,510 | 201,294 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | 945 | 1,397 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | ||
Available-for-sale | ||
U.S. Treasury | 12 | |
U.S. Government Agency notes | 128 | 237 |
Municipal bonds | 2 | 1,557 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 52 | 643 |
U.S. Government agencies | 135 | |
Corporate bonds | 10 | 158 |
Total securities available-for-sale | 192 | 2,742 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Accumulated Net Unrealized Investment Gain Loss 1 [Member] | ||
Available-for-sale | ||
U.S. Treasury | 1,578 | 182 |
U.S. Government Agency notes | 1,711 | 256 |
Municipal bonds | 7,074 | 204 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 5,924 | 805 |
U.S. Government agencies | 1,979 | 185 |
Corporate bonds | 326 | 8 |
Total securities available-for-sale | 18,592 | 1,640 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | ||
Securities Financing Transaction, Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | 17,672 | 15,131 |
U.S. Government Agency notes | 29,718 | 31,604 |
Municipal bonds | 48,267 | 47,822 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 71,467 | 74,541 |
U.S. Government agencies | 22,552 | 20,898 |
Corporate bonds | 13,434 | 12,400 |
Total securities available-for-sale | 203,110 | 202,396 |
Mutual fund | 1,672 | 901 |
Non-marketable securities | ||
Federal Home Loan Bank of Boston stock | $ 945 | $ 1,397 |
Aggregate fair value and gross
Aggregate fair value and gross unrealized loss of securities that have been in a continous unrealized loss position (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Less Than 12 Months Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | $ 17,672 | $ 12,155 |
U.S. Government Agency notes | 14,998 | 22,137 |
Municipal bonds | 45,603 | 12,496 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 50,249 | 52,619 |
U.S. Government agencies | 22,552 | |
Corporate bonds | 7,424 | 1,742 |
Total temporarily impaired securities | 158,498 | 112,703 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Less Than 12 Months Unrealized Losses [Member] | ||
Available-for-sale | ||
U.S. Treasury | 1,578 | 182 |
U.S. Government Agency notes | 1,367 | 235 |
Municipal bonds | 6,717 | 204 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 4,679 | 740 |
U.S. Government agencies | 1,979 | |
Corporate bonds | 326 | 8 |
Total temporarily impaired securities | 16,646 | 1,554 |
Aggregate Fair Value Gross Unrealized Loss Of Securities 12 Months Or Longer Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | ||
U.S. Government Agency notes | 9,267 | 2,019 |
Municipal bonds | 1,518 | 552 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 14,709 | 3,195 |
U.S. Government agencies | ||
Corporate bonds | ||
Total temporarily impaired securities | 25,494 | 5,766 |
Aggregate Fair Value Gross Unrealized Loss Of Securities 12 Months Or Longer Unrealized Losses [Member] | ||
Available-for-sale | ||
U.S. Treasury | ||
U.S. Government Agency notes | 344 | 21 |
Municipal bonds | 357 | |
U.S. Government agencies and U.S. Government- sponsored enterprises | 1,245 | 65 |
U.S. Government agencies | ||
Corporate bonds | ||
Total temporarily impaired securities | 1,946 | 86 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Total Fair Value [Member] | ||
Available-for-sale | ||
U.S. Treasury | 17,672 | 12,155 |
U.S. Government Agency notes | 24,265 | 24,156 |
Municipal bonds | 47,121 | 13,048 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 64,958 | 55,814 |
U.S. Government agencies | 22,552 | |
Corporate bonds | 7,424 | 1,742 |
Total temporarily impaired securities | 183,992 | 118,469 |
Aggregate Fair Value Gross Unrealized Loss Of Securities Total Unrealized Losses [Member] | ||
Available-for-sale | ||
U.S. Treasury | 1,578 | 182 |
U.S. Government Agency notes | 1,711 | 256 |
Municipal bonds | 7,074 | 204 |
U.S. Government agencies and U.S. Government- sponsored enterprises | 5,924 | 805 |
U.S. Government agencies | 1,979 | |
Corporate bonds | 326 | 8 |
Total temporarily impaired securities | $ 18,592 | $ 1,640 |
Amortized cost, fair value and
Amortized cost, fair value and tax equivalent yield of securities, by maturity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
U S Treasury [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 7,859 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 7,444 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.32% |
U S Treasury 2 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 11,391 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 10,228 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.18% |
U S Treasury Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 19,250 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 17,672 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.24% |
U S Government Agency Notes [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 3,990 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 3,666 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 0.92% |
U S Government Agency Notes 2 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 11,923 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 10,721 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.34% |
U S Government Agency Notes Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 15,913 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 14,387 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.23% |
US States and Political Subdivisions Debt Securities [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 512 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 478 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 1.74% |
U S States And Political Subdivisions 2 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 12,792 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 11,179 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.38% |
U S States And Political Subdivisions 3 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 12,971 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 11,282 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.36% |
U S States And Political Subdivisions 4 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 29,064 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 25,328 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.84% |
U S States And Political Subdivisions Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 55,339 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 48,267 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.61% |
Mortgage Backed Securities Collateralized Mortgage Obligations [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 117,258 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 109,350 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2% |
Mortgage Backed Securities Collateralized Mortgage Obligations Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 117,258 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 109,350 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2% |
Corporate Debt Securities 2 [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 13,750 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 13,434 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.35% |
Corporate Debt Securities Total [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 13,750 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 13,434 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.35% |
Available-for-Sale Securities [Member] | |
Summary of Investment Holdings [Line Items] | |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | $ 221,510 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 203,110 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 2.27% |
NOTE 2 - SECURITIES (Details Na
NOTE 2 - SECURITIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from Sale of Debt Securities, Available-for-Sale | $ 4,000,000 | $ 3,300,000 | $ 22,000,000 | $ 3,300,000 |
Available-for-Sale Securities, Gross Realized Gain (Loss) | 45,000 | 9,000 | 165,000 | (9,000) |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, Tax | (9,000) | (2,000) | 35,000 | (2,000) |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, Tax | 9,000 | 2,000 | (35,000) | 2,000 |
Available-for-Sale Securities, Gross Realized Gain (Loss) | $ (45,000) | $ (9,000) | $ (165,000) | $ 9,000 |
Composition of loans receivable
Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | $ 1,135,758 | $ 1,066,750 |
Loans Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 398,556 | 373,131 |
Residential 5+ multifamily | 69,272 | 52,325 |
Construction of residential 1-4 family | 22,379 | 19,738 |
Home equity lines of credit | 23,763 | 23,270 |
Residential real estate | 513,970 | 468,464 |
Commercial | 338,091 | 310,923 |
Construction of commercial | 49,696 | 58,838 |
Commercial real estate | 387,787 | 369,761 |
Farm land | 3,668 | 2,807 |
Vacant land | 15,397 | 14,182 |
Real estate secured | 920,822 | 855,214 |
Commercial and industrial ex PPP Loans | 189,086 | 169,543 |
PPP Loans | 2,894 | 25,589 |
Total Commercial and industrial | 191,980 | 195,132 |
Municipal | 17,486 | 16,534 |
Consumer | 18,155 | 12,547 |
Loans receivable, gross | 1,148,443 | 1,079,427 |
Deferred loan origination costs, net | 1,018 | 285 |
Allowance for loan losses | (13,703) | (12,962) |
Loans receivable, net | 1,135,758 | 1,066,750 |
Loans held-for-sale | ||
Residential 1-4 family | $ 2,684 |
Composition of loans receivab_2
Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | $ 393,642 | $ 367,225 |
Residential 5+ multifamily | 69,117 | 50,588 |
Construction of residential 1-4 family | 20,279 | 19,738 |
Home equity lines of credit | 23,592 | 23,037 |
Residential real estate | 506,630 | 460,588 |
Commercial | 312,206 | 271,821 |
Construction of commercial | 49,696 | 58,838 |
Commercial real estate | 361,902 | 330,659 |
Farm land | 1,963 | 1,162 |
Vacant land | 15,362 | 14,143 |
Real estate secured | 885,857 | 806,552 |
Commercial and industrial | 189,228 | 191,857 |
Municipal | 17,486 | 16,534 |
Consumer | 18,155 | 12,547 |
Loans receivable, gross | 1,110,726 | 1,027,490 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | 3,093 | 3,543 |
Residential 5+ multifamily | 75 | 79 |
Construction of residential 1-4 family | ||
Home equity lines of credit | 171 | 212 |
Residential real estate | 3,339 | 3,834 |
Commercial | 20,455 | 16,034 |
Construction of commercial | ||
Commercial real estate | 20,455 | 16,034 |
Farm land | 1,296 | 1,214 |
Vacant land | 35 | 39 |
Real estate secured | 25,125 | 21,121 |
Commercial and industrial | 920 | 688 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 26,045 | 21,809 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | 1,821 | 2,363 |
Residential 5+ multifamily | 80 | 1,658 |
Construction of residential 1-4 family | 2,100 | |
Home equity lines of credit | 21 | |
Residential real estate | 4,001 | 4,042 |
Commercial | 5,430 | 23,068 |
Construction of commercial | ||
Commercial real estate | 5,430 | 23,068 |
Farm land | 409 | 431 |
Vacant land | ||
Real estate secured | 9,840 | 27,541 |
Commercial and industrial | 1,832 | 2,587 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 11,672 | 30,128 |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
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 | ||
Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
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 | ||
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Residential 1-4 family | 398,556 | 373,131 |
Residential 5+ multifamily | 69,272 | 52,325 |
Construction of residential 1-4 family | 22,379 | 19,738 |
Home equity lines of credit | 23,763 | 23,270 |
Residential real estate | 513,970 | 468,464 |
Commercial | 338,091 | 310,923 |
Construction of commercial | 49,696 | 58,838 |
Commercial real estate | 387,787 | 369,761 |
Farm land | 3,668 | 2,807 |
Vacant land | 15,397 | 14,182 |
Real estate secured | 920,822 | 855,214 |
Commercial and industrial | 191,980 | 195,132 |
Municipal | 17,486 | 16,534 |
Consumer | 18,155 | 12,547 |
Loans receivable, gross | $ 1,148,443 | $ 1,079,427 |
Composition of loans receivab_3
Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans Receivable Delinquency Status Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | $ 398,234 | $ 372,620 |
Residential 5+ multifamily | 69,272 | 51,464 |
Construction of residential 1-4 family | 22,310 | 19,668 |
Home equity lines of credit | 23,437 | 23,000 |
Residential real estate | 513,253 | 466,752 |
Commercial | 338,006 | 310,331 |
Construction of commercial | 49,696 | 58,838 |
Commercial real estate | 387,702 | 369,169 |
Farm land | 3,668 | 2,807 |
Vacant land | 15,397 | 14,182 |
Real estate secured | 920,020 | 852,910 |
Commercial and industrial | 191,780 | 194,838 |
Municipal | 17,486 | 16,534 |
Consumer | 18,061 | 12,503 |
Loans receivable, gross | 1,147,347 | 1,076,785 |
Loans Receivable Delinquency Status Period Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 152 | 223 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | ||
Home equity lines of credit | 326 | 165 |
Residential real estate | 478 | 388 |
Commercial | 87 | |
Construction of commercial | ||
Commercial real estate | 87 | |
Farm land | ||
Vacant land | ||
Real estate secured | 478 | 475 |
Commercial and industrial | 189 | 250 |
Municipal | ||
Consumer | 87 | 40 |
Loans receivable, gross | 754 | 765 |
Loans Receivable Delinquency Status Period Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 155 | 135 |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | 70 | |
Home equity lines of credit | 98 | |
Residential real estate | 155 | 303 |
Commercial | 85 | 251 |
Construction of commercial | ||
Commercial real estate | 85 | 251 |
Farm land | ||
Vacant land | ||
Real estate secured | 240 | 554 |
Commercial and industrial | 32 | |
Municipal | ||
Consumer | 7 | 4 |
Loans receivable, gross | 247 | 590 |
Loans Receivable Delinquency Status Period Four [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 63 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | 69 | |
Home equity lines of credit | ||
Residential real estate | 69 | 63 |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | 69 | 63 |
Commercial and industrial | 1 | |
Municipal | ||
Consumer | ||
Loans receivable, gross | 69 | 64 |
Loans Receivable Delinquency Status Period Five [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 15 | 90 |
Residential 5+ multifamily | 861 | |
Construction of residential 1-4 family | ||
Home equity lines of credit | 7 | |
Residential real estate | 15 | 958 |
Commercial | 254 | |
Construction of commercial | ||
Commercial real estate | 254 | |
Farm land | ||
Vacant land | ||
Real estate secured | 15 | 1,212 |
Commercial and industrial | 11 | 11 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 26 | 1,223 |
Loans Receivable Delinquency Status Period Six [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 322 | 511 |
Residential 5+ multifamily | 861 | |
Construction of residential 1-4 family | 69 | 70 |
Home equity lines of credit | 326 | 270 |
Residential real estate | 717 | 1,712 |
Commercial | 85 | 592 |
Construction of commercial | ||
Commercial real estate | 85 | 592 |
Farm land | ||
Vacant land | ||
Real estate secured | 802 | 2,304 |
Commercial and industrial | 200 | 294 |
Municipal | ||
Consumer | 94 | 44 |
Loans receivable, gross | 1,096 | 2,642 |
Loans Receivable Delinquency Accrual [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | ||
Residential 5+ multifamily | ||
Construction of residential 1-4 family | 69 | |
Home equity lines of credit | ||
Residential real estate | 69 | |
Commercial | ||
Construction of commercial | ||
Commercial real estate | ||
Farm land | ||
Vacant land | ||
Real estate secured | 69 | |
Commercial and industrial | 11 | 11 |
Municipal | ||
Consumer | ||
Loans receivable, gross | 80 | 11 |
Loans Receivable Delinquency Non Accrual [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential 1-4 family | 350 | 750 |
Residential 5+ multifamily | 861 | |
Construction of residential 1-4 family | 2,100 | |
Home equity lines of credit | 21 | |
Residential real estate | 2,450 | 1,632 |
Commercial | 1,228 | 1,924 |
Construction of commercial | ||
Commercial real estate | 1,228 | 1,924 |
Farm land | 409 | 432 |
Vacant land | ||
Real estate secured | 4,087 | 3,988 |
Commercial and industrial | 62 | 200 |
Municipal | ||
Consumer | ||
Loans receivable, gross | $ 4,149 | $ 4,188 |
Changes in allowance for loan l
Changes in allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | $ 12,962 | |||
Loans and Leases Receivable, Allowance | $ 13,703 | 13,703 | ||
Residential 1-4 family | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 3,063 | $ 2,430 | 2,846 | $ 2,646 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 232 | 55 | 468 | 264 |
Allowance for Loan and Lease Losses, Write-offs | 9 | 1 | 28 | 10 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 3 | 5 | ||
Loans and Leases Receivable, Allowance | 3,286 | 2,377 | 3,286 | 2,377 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | (3) | (5) | ||
Residential 5+ multifamily | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 820 | 622 | 817 | 686 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 337 | (77) | 571 | (141) |
Allowance for Loan and Lease Losses, Write-offs | (231) | |||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Loans and Leases Receivable, Allowance | 1,157 | 545 | 1,157 | 545 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Construction of residential 1-4 family | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 195 | 77 | 186 | 65 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 138 | 18 | 147 | 30 |
Allowance for Loan and Lease Losses, Write-offs | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Loans and Leases Receivable, Allowance | 333 | 95 | 333 | 95 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Home equity lines of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 198 | 195 | 198 | 252 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 16 | (5) | 18 | (62) |
Allowance for Loan and Lease Losses, Write-offs | (9) | (11) | ||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Loans and Leases Receivable, Allowance | 205 | 190 | 205 | 190 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Residential real estate | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 4,276 | 3,324 | 4,047 | 3,649 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 723 | (119) | 1,204 | (437) |
Allowance for Loan and Lease Losses, Write-offs | (18) | (1) | (270) | (10) |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 3 | 5 | ||
Loans and Leases Receivable, Allowance | 4,981 | 3,207 | 4,981 | 3,207 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | (3) | (5) | ||
Commercial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 5,196 | 7,080 | 5,416 | 6,546 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 241 | (875) | 125 | (345) |
Allowance for Loan and Lease Losses, Write-offs | (269) | (373) | (6) | |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 1 | 7 | 1 | 17 |
Loans and Leases Receivable, Allowance | 5,169 | 6,212 | 5,169 | 6,212 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | (1) | (7) | (1) | (17) |
Construction of commercial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 1,139 | 584 | 1,025 | 596 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (267) | 102 | (153) | 90 |
Allowance for Loan and Lease Losses, Write-offs | (18) | (18) | ||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Loans and Leases Receivable, Allowance | 872 | 668 | 872 | 668 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Commercial real estate | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 6,335 | 7,664 | 6,441 | 7,142 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (26) | (773) | (28) | (255) |
Allowance for Loan and Lease Losses, Write-offs | (269) | (18) | (373) | (24) |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 1 | 7 | 1 | 17 |
Loans and Leases Receivable, Allowance | 6,041 | 6,880 | 6,041 | 6,880 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | (1) | (7) | (1) | (17) |
Farm land | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 19 | 50 | 21 | 59 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 8 | (18) | 6 | (27) |
Allowance for Loan and Lease Losses, Write-offs | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Loans and Leases Receivable, Allowance | 27 | 32 | 27 | 32 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Vacant land | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 110 | 109 | 95 | 180 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (2) | (22) | 13 | (93) |
Allowance for Loan and Lease Losses, Write-offs | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Loans and Leases Receivable, Allowance | 108 | 87 | 108 | 87 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Real estate secured | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 10,740 | 11,147 | 10,604 | 11,030 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 703 | (932) | 1,195 | (812) |
Allowance for Loan and Lease Losses, Write-offs | (287) | (19) | (643) | (34) |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 1 | 10 | 1 | 22 |
Loans and Leases Receivable, Allowance | 11,157 | 10,206 | 11,157 | 10,206 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | (1) | (10) | (1) | (22) |
Commercial and industrial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 1,176 | 1,369 | 1,364 | 1,397 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 304 | (27) | 161 | (55) |
Allowance for Loan and Lease Losses, Write-offs | (131) | (46) | (131) | |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 45 | 1 | 45 | |
Loans and Leases Receivable, Allowance | 1,480 | 1,256 | 1,480 | 1,256 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | (45) | (1) | (45) | |
Municipal | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 27 | 43 | 31 | 43 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 8 | (11) | 4 | (11) |
Allowance for Loan and Lease Losses, Write-offs | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Loans and Leases Receivable, Allowance | 35 | 32 | 35 | 32 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Consumer | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 105 | 52 | 82 | 77 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 51 | 22 | 83 | 20 |
Allowance for Loan and Lease Losses, Write-offs | (30) | (11) | (45) | (15) |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 4 | 3 | 10 | 16 |
Loans and Leases Receivable, Allowance | 130 | 66 | 130 | 66 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | (4) | (3) | (10) | (16) |
Unallocated | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 867 | 1,275 | 881 | 1,207 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 34 | (127) | 20 | (59) |
Allowance for Loan and Lease Losses, Write-offs | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Loans and Leases Receivable, Allowance | 901 | 1,148 | 901 | 1,148 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | ||||
Totals | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and Leases Receivable, Allowance | 12,915 | 13,886 | 12,962 | 13,754 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 1,100 | 1,075 | 1,463 | 917 |
Allowance for Loan and Lease Losses, Write-offs | (317) | 161 | 734 | 180 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 5 | 58 | 12 | 51 |
Loans and Leases Receivable, Allowance | 13,703 | 12,708 | 13,703 | 12,708 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | $ (5) | $ (58) | $ (12) | $ (51) |
Composition of loans receivab_4
Composition of loans receivable and the allowance for loan losses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Totals | $ 1,135,758 | $ 1,066,750 |
Allowance For Loan And Lease Losses Collectively Evaluated Loans [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 396,703 | 370,558 |
Residential 5+ multifamily | 69,192 | 51,376 |
Construction of residential 1-4 family | 20,279 | 19,738 |
Home equity lines of credit | 23,763 | 23,249 |
Residential real estate | 509,937 | 464,921 |
Commercial | 335,508 | 307,377 |
Construction of commercial | 49,696 | 58,838 |
Commercial real estate | 385,204 | 366,215 |
Farm land | 3,259 | 2,375 |
Vacant land | 15,397 | 14,182 |
Real estate secured | 913,797 | 847,694 |
Commercial and industrial | 191,844 | 194,856 |
Municipal | 17,486 | 16,534 |
Consumer | 18,155 | 12,547 |
Unallocated allowance | ||
Totals | 1,141,282 | 1,071,630 |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss, Real Estate [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 3,286 | 2,845 |
Residential 5+ multifamily | 1,157 | 817 |
Construction of residential 1-4 family | 192 | 186 |
Home equity lines of credit | 205 | 198 |
Residential real estate | 4,840 | 4,046 |
Commercial | 5,145 | 5,388 |
Construction of commercial | 872 | 1,025 |
Commercial real estate | 6,017 | 6,413 |
Farm land | 27 | 21 |
Vacant land | 108 | 95 |
Real estate secured | 10,992 | 10,575 |
Commercial and industrial | 1,478 | 1,297 |
Municipal | 35 | 31 |
Consumer | 130 | 82 |
Unallocated allowance | 901 | 881 |
Totals | 13,536 | 12,866 |
Allowance For Loan And Lease Losses Individually Evaluated Loans [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 1,853 | 2,573 |
Residential 5+ multifamily | 80 | 949 |
Construction of residential 1-4 family | 2,100 | |
Home equity lines of credit | 21 | |
Residential real estate | 4,033 | 3,543 |
Commercial | 2,583 | 3,546 |
Construction of commercial | ||
Commercial real estate | 2,583 | 3,546 |
Farm land | 409 | 432 |
Vacant land | ||
Real estate secured | 7,025 | 7,520 |
Commercial and industrial | 136 | 276 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 7,161 | 7,797 |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 1 | |
Residential 5+ multifamily | ||
Construction of residential 1-4 family | 141 | |
Home equity lines of credit | ||
Residential real estate | 141 | 1 |
Commercial | 24 | 28 |
Construction of commercial | ||
Commercial real estate | 24 | 28 |
Farm land | ||
Vacant land | ||
Real estate secured | 165 | 29 |
Commercial and industrial | 2 | 67 |
Municipal | ||
Consumer | ||
Unallocated allowance | ||
Totals | 167 | 96 |
Allowance For Loan And Lease Losses Total Portfolio Loans [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 398,556 | 373,131 |
Residential 5+ multifamily | 69,272 | 52,325 |
Construction of residential 1-4 family | 22,379 | 19,738 |
Home equity lines of credit | 23,763 | 23,270 |
Residential real estate | 513,970 | 468,464 |
Commercial | 338,091 | 310,923 |
Construction of commercial | 49,696 | 58,838 |
Commercial real estate | 387,787 | 369,761 |
Farm land | 3,668 | 2,807 |
Vacant land | 15,397 | 14,182 |
Real estate secured | 920,822 | 855,214 |
Commercial and industrial | 191,980 | 195,132 |
Municipal | 17,486 | 16,534 |
Consumer | 18,155 | 12,547 |
Unallocated allowance | ||
Totals | 1,148,443 | 1,079,427 |
Allowance For Loan And Lease Losses Total Portfolio Allowance [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Residential 1-4 family | 3,286 | 2,846 |
Residential 5+ multifamily | 1,157 | 817 |
Construction of residential 1-4 family | 333 | 186 |
Home equity lines of credit | 205 | 198 |
Residential real estate | 4,981 | 4,047 |
Commercial | 5,169 | 5,416 |
Construction of commercial | 872 | 1,025 |
Commercial real estate | 6,041 | 6,441 |
Farm land | 27 | 21 |
Vacant land | 108 | 95 |
Real estate secured | 11,157 | 10,604 |
Commercial and industrial | 1,480 | 1,364 |
Municipal | 35 | 31 |
Consumer | 130 | 82 |
Unallocated allowance | 901 | 881 |
Totals | $ 13,703 | $ 12,962 |
Credit quality segments of loan
Credit quality segments of loans receivable and the allowance for loan losses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Totals | $ 1,135,758 | $ 1,066,750 |
Allowance For Loan And Lease Losses Collectively Evaluated Loans Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | 1,134,514 | 1,046,614 |
Potential problem loans 1 | 6,768 | 25,016 |
Impaired loans | ||
Unallocated allowance | ||
Totals | 1,141,282 | 1,071,630 |
Allowance For Loan And Lease Losses Collectively Evaluated Allowance Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | 12,228 | 10,456 |
Potential problem loans 1 | 407 | 1,529 |
Impaired loans | ||
Unallocated allowance | 901 | 881 |
Totals | 13,536 | 12,866 |
Allowance For Loan And Lease Losses Individually Evaluated Loans Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | ||
Potential problem loans 1 | ||
Impaired loans | 7,161 | 7,797 |
Unallocated allowance | ||
Totals | 7,161 | 7,797 |
Allowance For Loan And Lease Losses Individually Evaluated Allowance Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | ||
Potential problem loans 1 | ||
Impaired loans | 167 | 96 |
Unallocated allowance | ||
Totals | 167 | 96 |
Allowance For Loan And Lease Losses Total Portfolio Loans Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | 1,134,514 | 1,046,614 |
Potential problem loans 1 | 6,768 | 25,016 |
Impaired loans | 7,161 | 7,797 |
Unallocated allowance | ||
Totals | 1,148,443 | 1,079,427 |
Allowance For Loan And Lease Losses Total Portfolio Allowance Credit Quality Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Performing loans | 12,228 | 10,456 |
Potential problem loans 1 | 407 | 1,529 |
Impaired loans | 167 | 96 |
Unallocated allowance | 901 | 881 |
Totals | $ 13,703 | $ 12,962 |
Certain data with respect to lo
Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Totals | $ 1,135,758 | $ 1,066,750 | |
Impaired Loans Specific Allowance Loan Balance Book [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Residential | 2,100 | 43 | $ 47 |
Home equity lines of credit | |||
Residential real estate | 2,100 | 43 | 47 |
Commercial | 584 | 608 | 1,140 |
Construction of commercial | |||
Farm land | |||
Vacant land | |||
Real estate secured | 2,684 | 651 | 1,187 |
Commercial and industrial | 73 | 216 | 364 |
Consumer | |||
Totals | 2,757 | 867 | 1,551 |
Impaired Loans Specific Allowance Loan Balance Note [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Residential | 2,106 | 44 | 49 |
Home equity lines of credit | |||
Residential real estate | 2,106 | 44 | 49 |
Commercial | 584 | 608 | 1,164 |
Construction of commercial | |||
Farm land | |||
Vacant land | |||
Real estate secured | 2,690 | 652 | 1,213 |
Commercial and industrial | 73 | 224 | 377 |
Consumer | |||
Totals | 2,763 | 876 | 1,590 |
Impaired Loans Specific Allowance Loan Balance Average [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Residential | 568 | 872 | 1,580 |
Home equity lines of credit | 17 | 32 | |
Residential real estate | 568 | 889 | 1,612 |
Commercial | 633 | 1,678 | 2,294 |
Construction of commercial | |||
Farm land | |||
Vacant land | 56 | 104 | |
Real estate secured | 1,201 | 2,623 | 4,010 |
Commercial and industrial | 115 | 309 | 365 |
Consumer | 6 | 11 | |
Totals | 1,316 | 2,938 | 4,386 |
SEC Schedule, 12-09, Reserve, Impairment of Recognized Servicing Asset [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Residential | 141 | 1 | 3 |
Home equity lines of credit | |||
Residential real estate | 141 | 1 | 3 |
Commercial | 24 | 28 | 45 |
Construction of commercial | |||
Farm land | |||
Vacant land | |||
Real estate secured | 165 | 29 | 48 |
Commercial and industrial | 2 | 67 | 115 |
Consumer | |||
Totals | 167 | 96 | 163 |
Impaired Loans Specific Allowance Loan Income Recognized [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Residential | 24 | 3 | 1 |
Home equity lines of credit | |||
Residential real estate | 24 | 3 | 1 |
Commercial | 15 | 32 | 25 |
Construction of commercial | |||
Farm land | |||
Vacant land | |||
Real estate secured | 39 | 35 | 26 |
Commercial and industrial | 2 | 3 | 2 |
Consumer | |||
Totals | 41 | 38 | 28 |
Impaired Loans No Specific Allowance Loan Balance Book [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Residential | 1,933 | 3,480 | 4,326 |
Home equity lines of credit | 21 | 147 | |
Residential real estate | 1,933 | 3,501 | 4,473 |
Commercial | 1,999 | 2,938 | 3,341 |
Construction of commercial | |||
Farm land | 409 | 431 | 594 |
Vacant land | 160 | ||
Real estate secured | 4,341 | 6,870 | 8,568 |
Commercial and industrial | 63 | 60 | 86 |
Consumer | 21 | ||
Totals | 4,404 | 6,930 | 8,675 |
Impaired Loans No Specific Allowance Loan Balance Note [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Residential | 2,056 | 3,817 | 4,776 |
Home equity lines of credit | 23 | 188 | |
Residential real estate | 2,056 | 3,840 | 4,964 |
Commercial | 2,494 | 3,493 | 3,984 |
Construction of commercial | |||
Farm land | 447 | 447 | 764 |
Vacant land | 178 | ||
Real estate secured | 4,997 | 7,780 | 9,890 |
Commercial and industrial | 60 | 72 | 243 |
Consumer | 21 | ||
Totals | 5,057 | 7,852 | 10,154 |
Impaired Loans No Specific Allowance Loan Balance Average [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Residential | 2,531 | 3,689 | 3,401 |
Home equity lines of credit | 15 | 131 | 168 |
Residential real estate | 2,546 | 3,820 | 3,569 |
Commercial | 2,579 | 2,974 | 3,024 |
Construction of commercial | |||
Farm land | 420 | 440 | 344 |
Vacant land | 45 | 60 | |
Real estate secured | 5,545 | 7,279 | 6,997 |
Commercial and industrial | 62 | 90 | 92 |
Consumer | 13 | 13 | |
Totals | 5,607 | 7,382 | 7,102 |
Impaired Loans No Specific Allowance Loan Income Recognized [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Residential | 29 | 75 | 40 |
Home equity lines of credit | |||
Residential real estate | 29 | 75 | 40 |
Commercial | 21 | 62 | 44 |
Construction of commercial | |||
Farm land | |||
Vacant land | 4 | ||
Real estate secured | 50 | 137 | 88 |
Commercial and industrial | 1 | 1 | |
Consumer | 1 | ||
Totals | $ 51 | $ 137 | $ 90 |
NOTE 3 _ LOANS (Details Narrati
NOTE 3 – LOANS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Receivables [Abstract] | |||||
Other Real Estate, Covered | $ 83,400,000 | $ 83,400,000 | $ 77,500,000 | ||
[custom:SBAPPPLoanGrossBalances-0] | 3,000,000 | 3,000,000 | $ 26,000,000 | ||
Interest and Fee Income, Other Loans | 22,000 | $ 204,000 | 68,000 | $ 436,000 | |
Loans and Leases Receivable, Fees Earned but Excluded from Yield | $ 236,000 | $ 582,000 | $ 671,000 | $ 1,600,000 |
Assets and liabilities as well
Assets and liabilities as well as costs of operating and finance leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Liabilities | |||||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, Accumulated Depreciation and Amortization | $ 608 | $ 608 | $ 496 | ||
Operating leases | 73 | $ 68 | 147 | $ 147 | |
Amortization of leased assets | 77 | 25 | 112 | 51 | |
Interest on finance leases | 41 | 36 | 82 | 69 | |
Total lease cost | $ 191 | $ 129 | $ 341 | $ 267 | |
Operating leases | 6 years 292 days | 6 years 292 days | 6 years 328 days 12 hours | ||
Financing leases | 22 years | 22 years | 23 years 6 months | ||
Weighted Average Discount Rate 1 | |||||
Operating leases | 3.70% | 3.70% | 3.60% | ||
Financing leases | 3.40% | 3.40% | 5% | ||
Assets And Liabilities [Member] | |||||
Assets | |||||
Operating | $ 910 | $ 910 | $ 1,021 | ||
Finance | 3,968 | 3,968 | 3,791 | ||
Total Leased Assets | 4,878 | 4,878 | 4,812 | ||
Liabilities | |||||
Operating | 910 | 910 | 1,021 | ||
Finance | 4,330 | 4,330 | 4,107 | ||
Total lease liabilities | $ 5,240 | $ 5,240 | $ 5,128 |
Present value of net minimum le
Present value of net minimum lease payments (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Operating Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
$ 99 | |
167 | |
129 | |
137 | |
137 | |
379 | |
1,048 | |
(138) | |
910 | |
Finance Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
149 | |
304 | |
314 | |
324 | |
324 | |
4,978 | |
6,393 | |
(2,064) | |
$ 4,329 |
Balances of loans serviced for
Balances of loans serviced for others and fair value of mortgage servicing rights (Details) - Derivative Financial Instruments, Assets [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Residential mortgage loans serviced for others | $ 140,344 | $ 140,623 |
Fair value of mortgage servicing rights | $ 1,338 | $ 1,043 |
Changes in mortgage servicing r
Changes in mortgage servicing rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Mortgage Servicing Rights | ||||
Balance, beginning of period | $ 716 | $ 739 | $ 700 | $ 621 |
Originated | 17 | 64 | 72 | 258 |
Amortization (1) | (39) | (55) | (78) | (131) |
Balance, end of period | 694 | 748 | 694 | 748 |
Valuation Allowance | ||||
Balance, beginning of period | (9) | |||
Decrease in impairment reserve (1) | 9 | |||
Balance, end of period | ||||
Mortgage servicing rights, net | $ 694 | $ 748 | $ 694 | $ 748 |
Securities and loans pledged to
Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available (Details) - S A L Guarantee Type Other [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Securities available-for-sale (at fair value) | $ 79,241 | $ 75,737 |
Loans receivable (at book value) | 369,717 | 378,845 |
Total pledged assets | $ 448,958 | $ 454,582 |
NOTE 6 - PLEDGED ASSETS (Detail
NOTE 6 - PLEDGED ASSETS (Details Narrative) | Jun. 30, 2022 USD ($) |
Asset Pledged as Collateral [Member] | |
Variable Interest Entity [Line Items] | |
Debt Instrument, Collateral Amount | $ 62,650,000 |
Asset Pledged As Collateral 2 [Member] | |
Variable Interest Entity [Line Items] | |
Debt Instrument, Collateral Amount | 16,570,000 |
Asset Pledged As Collateral 3 [Member] | |
Variable Interest Entity [Line Items] | |
Debt Instrument, Collateral Amount | $ 20,000 |
Amounts recorded on the balance
Amounts recorded on the balance sheet related to cumulative basis adjustment for fair value hedges (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative, Net Liability Position, Aggregate Fair Value | $ (45,000) | $ (18,000) |
[custom:DerivativeNetLiabilityPositionAggregateFairValueTotal-0] | (45,000) | (18,000) |
Available-for-Sale Securities, Amortized Cost Basis | 35,600,000 | |
Available-for-Sale Equity Securities, Amortized Cost Basis | 45,000 | |
Derivative, Amount of Hedged Item | 10,000,000 | |
Hedged Assets Liabilities Carrying Amount [Member] | ||
Loans receivable(1) | 9,955,000 | 9,982,000 |
Total | $ 9,955,000 | $ 9,982,000 |
Fair value of Salisbury's deriv
Fair value of Salisbury's derivative financial instrument and its classification on the Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Notional Amount [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Rate Products | $ 10,000 | |
Derivative Instrument Fair Value [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Rate Products | 49 | $ 18 |
Total Derivatives designated as hedge instruments | $ 49 | $ 18 |
Effect of the Company's derivat
Effect of the Company's derivative financial instruments on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest Income Derivative Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded | $ 18 | $ 19 | $ 1 | |
Hedged items | 2 | (2) | (27) | (4) |
Derivatives designated as hedging instruments | 16 | 2 | 46 | 5 |
Interest Expense Derivative Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total amounts of interest income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded | ||||
Hedged items | ||||
Derivatives designated as hedging instruments |
Calculation of earnings per sha
Calculation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 3,845 | $ 4,353 | $ 7,414 | $ 8,879 |
Less: Undistributed earnings allocated to participating securities | (73) | (66) | (134) | (130) |
Net income allocated to common stock | 3,772 | 4,287 | 7,280 | 8,749 |
Weighted-average common shares issued | 5,776 | 5,704 | 5,755 | 5,698 |
Less: Unvested restricted stock awards | (110) | (86) | (104) | (84) |
Weighted average common shares outstanding used to calculate basic earnings per common share | 5,666 | 5,620 | 5,651 | 5,614 |
Add: Dilutive effect of stock options | 33 | 38 | 48 | 36 |
Weighted-average common shares outstanding used to calculate diluted earnings per common share | $ 5,699 | $ 5,658 | $ 5,699 | $ 5,650 |
Earnings per common share (basic) | $ 0.67 | $ 0.76 | $ 1.29 | $ 1.56 |
Earnings per common share (diluted) | $ 0.66 | $ 0.76 | $ 1.28 | $ 1.55 |
Actual regulatory capital posit
Actual regulatory capital position and minimum capital requirements (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Total Capital To Risk Weighted Assets [Member] | ||
Banking Regulation, Total Capital, Actual | $ 160,002 | $ 152,789 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1328 | 0.1408 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 96,377 | $ 86,832 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.080 | 0.080 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 126,495 | $ 113,968 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 10.50% | 10.50% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 120,471 | $ 108,541 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.100 | 0.100 |
Tier 1 Capital To Risk Weighted Assets [Member] | ||
Banking Regulation, Total Capital, Actual | $ 146,112 | $ 139,681 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1213 | 0.1287 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 72,283 | $ 65,124 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.060 | 0.060 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 102,401 | $ 92,259 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 8.50% | 8.50% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 96,377 | $ 86,832 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.080 | 0.080 |
Common Equity Tier 1 Capital To Risk Weighted Assets [Member] | ||
Banking Regulation, Total Capital, Actual | $ 146,112 | $ 139,681 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1213 | 0.1287 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 54,212 | $ 48,843 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.045 | 0.045 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 84,330 | $ 75,978 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 7% | 7% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 78,306 | $ 70,551 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.065 | 0.065 |
Tier 1 Capital To Average Assets [Member] | ||
Banking Regulation, Total Capital, Actual | $ 146,112 | $ 139,681 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1004 | 0.0942 |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 58,231 | $ 59,285 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.040 | 0.040 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0] | $ 58,231 | $ 59,285 |
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0] | 4% | 4% |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 72,788 | $ 74,106 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.050 | 0.050 |
NOTE 9 _ SHAREHOLDERS_ EQUITY_2
NOTE 9 – SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | May 28, 2021 | Mar. 31, 2021 |
Equity [Abstract] | ||||
Subordinated Long-Term Debt, Noncurrent | $ 25,000,000 | |||
[custom:ProceedsFromSubordinatedDebtIssuedRetainedAtHoldingCompany-0] | $ 15,000,000 | |||
[custom:RedemptionOfSubordinatedDebtPreviouslyIssuedAndRetainedAtHoldingCompany-0] | $ 10,000,000 | |||
Banking Regulation, Risk-Weighted Assets, Actual | $ 1,204,700,000 | $ 1,085,400,000 |
NOTE 10 _ BENEFITS (Details Nar
NOTE 10 – BENEFITS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||||
Defined Contribution Plan, Administrative Expense | $ 257,000 | $ 308,000 | $ 551,000 | $ 594,000 | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | 49,000 | 73,000 | 84,000 | 129,000 | |
Liability, Pension and Other Postretirement and Postemployment Benefits, Current | 771,000 | 771,000 | $ 779,000 | ||
[custom:ExpensesUnderFuturePostretirementBenefitObligationsUnderEndorsementSplitdollarLifeInsuranceArrangements] | 86,000 | 173,000 | |||
[custom:NetCreditToExpenseFuturePostretirementBenefitObligationsUnderEndorsementSplitdollarLifeInsuranceArrangements] | 8 | ||||
[custom:CompanyContributionToAmendedAndRestatedPlan] | 100,000 | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 47,000 | $ 29,000 | $ 94,000 | $ 57,000 |
NOTE 11 _ LONG TERM INCENTIVE_2
NOTE 11 – LONG TERM INCENTIVE PLANS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2020 | |
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 243,000 | $ 168,000 | $ 431,000 | $ 300,000 | |
[custom:DeferredCompensationArrangementWithIndividualCompensationExpenseFromAcceleratedVestingOfRestrictedStockAwardsPreviouslyGranted] | 17,000 | 32,000 | |||
[custom:RestrictedStockExpenseTaxBenefit] | $ 44,000 | 30,000 | 78,000 | 54,000 | |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 18,340 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 1,000,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 1,500,000 | 1,200,000 | $ 1,500,000 | $ 1,200,000 | |
[custom:PerformancebasedRestrictedStockUnitsPursuantTo2017LongtermIncentivePlanGranted] | 13,900 | 14,800 | 14,500 | ||
[custom:PerformancebasedRestrictedStockUnitsPursuantTo2017LongtermIncentivePlanFairValue] | $ 394,000 | $ 354,000 | |||
[custom:PerformancebasedRestrictedStockUnitsPursuantTo2017LongtermIncentivePlanCompensationExpense] | 96,000 | 103,000 | 193,000 | 174,000 | |
[custom:ShortTermIncentivePlanExpenseIncludedInCompensationExpenses] | $ 271,000 | $ 310,000 | $ 538,000 | $ 548,000 | |
Outstanding Stock Options 1 [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 4,050 | ||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 8.52 | ||||
Outstanding Stock Options 2 [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 7,020 | 3,510 | |||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 8.52 | $ 8.52 |
Assets measured at fair value (
Assets measured at fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
U.S. Government agencies and U.S. Government-sponsored enterprises | ||
U.S. Government agencies | ||
Corporate bonds | ||
Securities available-for-sale | ||
Mutual fund | 901 | |
Derivative financial instruments | ||
Assets at fair value on a non-recurring basis | ||
Assets held for sale 1 | 700 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 15,131 | |
U.S. Government Agency notes | 31,604 | |
Municipal bonds | 47,822 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 74,541 | |
U.S. Government agencies | 20,898 | |
Corporate bonds | 12,400 | |
Securities available-for-sale | 202,396 | |
Mutual fund | ||
Derivative financial instruments | 18 | |
Assets at fair value on a non-recurring basis | ||
Assets held for sale 1 | ||
Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
U.S. Government agencies and U.S. Government-sponsored enterprises | ||
U.S. Government agencies | ||
Corporate bonds | ||
Securities available-for-sale | ||
Mutual fund | ||
Derivative financial instruments | ||
Assets at fair value on a non-recurring basis | ||
Assets held for sale 1 | ||
Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 15,131 | |
U.S. Government Agency notes | 31,604 | |
Municipal bonds | 47,822 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 74,541 | |
U.S. Government agencies | 20,898 | |
Corporate bonds | 12,400 | |
Securities available-for-sale | 202,396 | |
Mutual fund | 901 | |
Derivative financial instruments | 18 | |
Assets at fair value on a non-recurring basis | ||
Assets held for sale 1 | $ 700 | |
Fair Value Inputs Level 1 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
U.S. Government agencies and U.S. Government-sponsored enterprises | ||
U.S. Government agencies | ||
Corporate bonds | ||
Securities available-for-sale | ||
Mutual fund | 1,672 | |
Derivative financial instruments | ||
Fair Value Inputs Level 2 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 17,672 | |
U.S. Government Agency notes | 29,718 | |
Municipal bonds | 48,267 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 71,467 | |
U.S. Government agencies | 22,552 | |
Corporate bonds | 13,434 | |
Securities available-for-sale | 203,110 | |
Mutual fund | ||
Derivative financial instruments | 49 | |
Fair Value Inputs Level 3 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | ||
U.S. Government Agency notes | ||
Municipal bonds | ||
U.S. Government agencies and U.S. Government-sponsored enterprises | ||
U.S. Government agencies | ||
Corporate bonds | ||
Securities available-for-sale | ||
Mutual fund | ||
Derivative financial instruments | ||
Fair Value Inputs Level 12 And 3 S A L [Member] | ||
Assets at fair value on a recurring basis | ||
U.S. Treasury | 17,672 | |
U.S. Government Agency notes | 29,718 | |
Municipal bonds | 48,267 | |
U.S. Government agencies and U.S. Government-sponsored enterprises | 71,467 | |
U.S. Government agencies | 22,552 | |
Corporate bonds | 13,434 | |
Securities available-for-sale | 203,110 | |
Mutual fund | 1,672 | |
Derivative financial instruments | $ 49 |
Carrying values and estimated f
Carrying values and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Carrying Reported Amount Fair Value Disclosure S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | $ 71,467 | $ 175,335 |
Interest bearing time deposits with financial institutions | 750 | 750 |
Securities available-for-sale | 203,110 | 202,396 |
Mutual funds | 1,672 | 901 |
Federal Home Loan Bank of Boston stock | 945 | 1,397 |
Loans held-for-sale | 2,684 | |
Loans receivable, net | 1,135,758 | 1,066,750 |
Accrued interest receivable | 6,123 | 6,260 |
Cash surrender value of life insurance policies | 28,063 | 27,738 |
Derivative financial instruments | 49 | 18 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 383,674 | 416,073 |
Demand (interest-bearing) | 233,947 | 233,600 |
Money market | 314,244 | 330,436 |
Savings and other | 231,322 | 237,075 |
Certificates of deposit | 153,352 | 119,009 |
Deposits | 1,316,539 | 1,336,193 |
Repurchase agreements | 16,574 | 11,430 |
FHLBB advances | 7,656 | |
Subordinated debt | 24,502 | 24,474 |
Note payable | 149 | 170 |
Finance lease liability | 4,329 | 4,107 |
Accrued interest payable | 44 | 49 |
Estimate Of Fair Value Fair Value Disclosure S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 71,467 | 175,335 |
Interest bearing time deposits with financial institutions | 750 | 750 |
Securities available-for-sale | 203,110 | 202,396 |
Mutual funds | 1,672 | 901 |
Federal Home Loan Bank of Boston stock | 945 | 1,397 |
Loans held-for-sale | 2,721 | |
Loans receivable, net | 1,112,258 | 1,066,733 |
Accrued interest receivable | 6,123 | 6,260 |
Cash surrender value of life insurance policies | 28,063 | 27,738 |
Derivative financial instruments | 49 | 18 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 383,674 | 416,073 |
Demand (interest-bearing) | 233,947 | 233,600 |
Money market | 314,244 | 330,436 |
Savings and other | 231,322 | 237,075 |
Certificates of deposit | 153,321 | 119,716 |
Deposits | 1,316,508 | 1,336,900 |
Repurchase agreements | 16,574 | 11,430 |
FHLBB advances | 7,714 | |
Subordinated debt | 22,428 | 24,409 |
Note payable | 151 | 171 |
Finance lease liability | 4,267 | 4,223 |
Accrued interest payable | 44 | 49 |
Fair Value Inputs Level 1 S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 71,467 | 175,335 |
Interest bearing time deposits with financial institutions | 750 | 750 |
Securities available-for-sale | ||
Mutual funds | 1,672 | 901 |
Federal Home Loan Bank of Boston stock | ||
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
Cash surrender value of life insurance policies | ||
Derivative financial instruments | ||
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 | ||
Accrued interest payable | ||
Fair Value Inputs Level 2 S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | ||
Interest bearing time deposits with financial institutions | ||
Securities available-for-sale | 203,110 | 202,396 |
Mutual funds | ||
Federal Home Loan Bank of Boston stock | 945 | 1,397 |
Loans held-for-sale | ||
Loans receivable, net | ||
Accrued interest receivable | 6,123 | 6,260 |
Cash surrender value of life insurance policies | 28,063 | 27,738 |
Derivative financial instruments | 49 | 18 |
Financial Liabilities | ||
Demand (non-interest-bearing) | 383,674 | 416,073 |
Demand (interest-bearing) | 233,947 | 233,600 |
Money market | 314,244 | 330,436 |
Savings and other | 231,322 | 237,075 |
Certificates of deposit | 153,321 | 119,716 |
Deposits | 1,316,508 | 1,336,900 |
Repurchase agreements | 16,574 | 11,430 |
FHLBB advances | 7,714 | |
Subordinated debt | 22,428 | 24,409 |
Note payable | 151 | 171 |
Finance lease liability | ||
Accrued interest payable | 44 | 49 |
Fair Value Inputs Level 3 S A L [Member] | ||
Financial Assets | ||
Cash and cash equivalents | ||
Interest bearing time deposits with financial institutions | ||
Securities available-for-sale | ||
Mutual funds | ||
Federal Home Loan Bank of Boston stock | ||
Loans held-for-sale | 2,721 | |
Loans receivable, net | 1,112,258 | 1,066,733 |
Accrued interest receivable | ||
Cash surrender value of life insurance policies | ||
Derivative financial instruments | ||
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 | 4,267 | 4,223 |
Accrued interest payable |
NOTE 13 _ SUBSEQUENT EVENTS (De
NOTE 13 – SUBSEQUENT EVENTS (Details Narrative) | Jul. 20, 2022 $ / shares |
Subsequent Events [Abstract] | |
Dividends Payable, Amount Per Share | $ 0.16 |