Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jun. 28, 2013 | Mar. 10, 2013 | |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'WFD | ' | ' |
Entity Registrant Name | 'WESTFIELD FINANCIAL INC | ' | ' |
Entity Central Index Key | '0001157647 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 19,856,131 |
Entity Public Float | ' | $145,215,420 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
CASH AND DUE FROM BANKS | $14,112 | $9,847 |
FEDERAL FUNDS SOLD | 521 | 459 |
INTEREST-BEARING DEPOSITS AND OTHER SHORT-TERM INVESTMENTS | 5,109 | 1,455 |
CASH AND CASH EQUIVALENTS | 19,742 | 11,761 |
SECURITIES AVAILABLE FOR SALE - AT FAIR VALUE | 243,204 | 621,507 |
SECURITIES HELD TO MATURITY (Fair value of $282,555 at December 31, 2013) | 295,013 | ' |
FEDERAL HOME LOAN BANK OF BOSTON AND OTHER RESTRICTED STOCK - AT COST | 15,631 | 14,269 |
LOANS - Net of allowance for loan losses of $7,459 and $7,794 at December 31, 2013 and 2012, respectively | 629,968 | 587,124 |
PREMISES AND EQUIPMENT, Net | 10,995 | 11,077 |
ACCRUED INTEREST RECEIVABLE | 4,201 | 4,602 |
BANK-OWNED LIFE INSURANCE | 47,179 | 46,222 |
DEFERRED TAX ASSET, Net | 6,334 | 123 |
OTHER REAL ESTATE OWNED | ' | 964 |
Other assets | 4,574 | 3,813 |
TOTAL ASSETS | 1,276,841 | 1,301,462 |
DEPOSITS : | ' | ' |
Noninterest-bearing | 145,040 | 114,388 |
Interest-bearing | 672,072 | 639,025 |
Total deposits | 817,112 | 753,413 |
Short-term borrowings | 48,197 | 69,934 |
Long-term debt | 248,377 | 278,861 |
DUE TO BROKER | 299 | ' |
Other liabilities | 8,712 | 10,067 |
TOTAL LIABILITIES | 1,122,697 | 1,112,275 |
SHAREHOLDERS' EQUITY: | ' | ' |
Preferred stock - $.01 par value, 5,000,000 shares authorized, none outstanding | ' | ' |
Common stock - $.01 par value, 75,000,000 shares authorized; 20,140,669 shares issued and outstanding at December 31, 2013; 22,843,722 shares issued and outstanding at December 31, 2012 | 201 | 228 |
Additional paid-in capital | 121,860 | 144,718 |
Unearned compensation - ESOP | -8,003 | -8,553 |
Unearned compensation - Equity Incentive Plan | -187 | -265 |
Retained earnings | 43,248 | 42,364 |
Accumulated other comprehensive income (loss) | -2,975 | 10,695 |
Total shareholders' equity | 154,144 | 189,187 |
TOTAL LIABILITIES AND EQUITY | $1,276,841 | $1,301,462 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
SECURITIES HELD TO MATURITY, Fair value | $282,555 | ' |
LOANS, allowance for loan losses | $7,459 | $7,794 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 20,140,669 | 22,843,722 |
Common stock, shares outstanding | 20,140,669 | 22,843,722 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INTEREST AND DIVIDEND INCOME: | ' | ' | ' |
Residential and commercial real estate loans | $20,204 | $20,449 | $19,500 |
Commercial and industrial loans | 5,064 | 4,994 | 5,630 |
Consumer loans | 140 | 160 | 188 |
Debt securities, taxable | 14,302 | 15,621 | 17,739 |
Debt securities, tax-exempt | 1,067 | 1,592 | 1,680 |
Equity securities | 152 | 186 | 205 |
Other investments - at cost | 93 | 94 | 62 |
Federal funds sold, interest-bearing deposits and other short-term investments | 9 | 8 | 1 |
Net interest and dividend income | 41,031 | 43,104 | 45,005 |
INTEREST EXPENSE: | ' | ' | ' |
Deposits | 5,525 | 6,142 | 7,589 |
Long-term debt | 4,591 | 6,406 | 6,731 |
Short-term borrowings | 174 | 115 | 147 |
Total interest expense | 10,290 | 12,663 | 14,467 |
Net interest and dividend income | 30,741 | 30,441 | 30,538 |
(Credit) provision for loan losses | -256 | 698 | 1,206 |
Net interest and dividend income after (credit) provision for loan losses | 30,997 | 29,743 | 29,332 |
NONINTEREST INCOME (LOSS): | ' | ' | ' |
Total other-than-temporary impairment losses on debt securities | ' | ' | -603 |
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income | ' | ' | 501 |
Net other-than-temporary impairment losses recognized in income | ' | ' | -102 |
Service charges and fees | 2,404 | 2,581 | 1,973 |
Income from bank-owned life insurance | 1,549 | 1,439 | 1,546 |
Gain on bank-owned life insurance death benefit | 563 | 80 | ' |
Loss on prepayment of borrowings | -3,370 | -1,017 | ' |
Gain on sales of securities, net | 3,126 | 2,907 | 414 |
Loss on sale of OREO | -6 | ' | -25 |
Total noninterest income | 4,272 | 5,990 | 3,806 |
NONINTEREST EXPENSE: | ' | ' | ' |
Salaries and employees benefits | 15,458 | 16,530 | 15,557 |
Occupancy | 2,898 | 2,775 | 2,671 |
Computer operations | 2,340 | 2,106 | 1,917 |
Professional fees | 2,033 | 1,872 | 2,033 |
OREO expense | 22 | 237 | 70 |
FDIC insurance assessment | 655 | 611 | 683 |
Other | 3,236 | 3,092 | 3,027 |
Total noninterest expense | 26,642 | 27,223 | 25,958 |
INCOME BEFORE INCOME TAXES | 8,627 | 8,510 | 7,180 |
INCOME TAX PROVISION | 1,871 | 2,256 | 1,306 |
NET INCOME | $6,756 | $6,254 | $5,874 |
EARNINGS PER COMMON SHARE: | ' | ' | ' |
Basic earnings per share | $0.34 | $0.26 | $0.22 |
Weighted average shares outstanding | 20,079,251 | 24,501,951 | 26,482,064 |
Diluted earnings per share | $0.34 | $0.26 | $0.22 |
Weighted average diluted shares outstanding | 20,079,265 | 24,519,515 | 26,589,510 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Net income | $6,756 | $6,254 | $5,874 | |||
Securities available for sale: | ' | ' | ' | |||
Unrealized holding (losses) gains | -20,970 | 7,371 | 21,778 | |||
Reclassification adjustment for gains realized in income | -3,126 | -2,907 | -414 | |||
Other-than-temporary impairment losses recognized in income | ' | ' | 102 | |||
Amortization of net unrealized loss on held-to-maturity securities | -234 | ' | ' | |||
Net unrealized (losses) gains | -24,330 | 4,464 | 21,466 | |||
Tax effect | 8,371 | -1,532 | -7,371 | |||
Net-of-tax amount | -15,959 | 2,932 | 14,095 | |||
Derivative instruments: | ' | ' | ' | |||
Change in fair value of derivatives used for cash flow hedges | 1,755 | ' | ' | |||
Tax effect | -597 | ' | ' | |||
Net-of-tax amount | 1,158 | ' | ' | |||
Defined benefit pension plans: | ' | ' | ' | |||
Gains (losses) arising during the period | 1,608 | -94 | -1,412 | |||
Reclassification adjustments: | ' | ' | ' | |||
Actuarial loss | 117 | [1] | 175 | [1] | 116 | [1] |
Transition asset | -11 | [1] | -11 | [1] | -12 | [1] |
Net adjustments pertaining to defined benefit plans | 1,714 | 70 | -1,308 | |||
Tax effect | -583 | -23 | 445 | |||
Net-of-tax amount | 1,131 | 47 | -863 | |||
Other comprehensive (loss) income | -13,670 | 2,979 | 13,232 | |||
Comprehensive (loss) income | ($6,914) | $9,233 | $19,106 | |||
[1] | (1) Amounts represent the reclassification of defined benefit plans amortization and have been recognized as a component of salaries and employee benefits expense. |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Unearned Compensation- ESOP | Unearned Compensation- Equity Incentive Plan | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data | |||||||
BEGINNING BALANCE at Dec. 31, 2010 | $221,245 | $282 | $181,842 | ($9,701) | ($2,158) | $56,496 | ($5,516) |
BEGINNING BALANCE (in shares) at Dec. 31, 2010 | ' | 28,166,419 | ' | ' | ' | ' | ' |
Comprehensive (loss) income | 19,106 | ' | ' | ' | ' | 5,874 | 13,232 |
Common stock held by ESOP committed to be released (84,261 shares in 2013, 84,261 shares in 2012 and 86,720 shares in 2011) | 694 | ' | 112 | 582 | ' | ' | ' |
Share-based compensation - stock options | 792 | ' | 792 | ' | ' | ' | ' |
Share-based compensation - equity incentive plan | 1,157 | ' | ' | ' | 1,157 | ' | ' |
Excess tax shortfall from equity incentive plan | -93 | ' | -93 | ' | ' | ' | ' |
Issuance of common stock to ESOP (in shares) | ' | 1,946 | ' | ' | ' | ' | ' |
Issuance of common stock to ESOP | 15 | ' | 15 | ' | ' | ' | ' |
Common stock repurchased (in shares) | ' | -1,331,856 | ' | ' | ' | ' | ' |
Common stock repurchased | -10,071 | -14 | -10,057 | ' | ' | ' | ' |
Issuance of common stock in connection with stock option exercises (in shares) | ' | 81,741 | ' | ' | ' | ' | ' |
Issuance of common stock in connection with stock option exercises | 359 | 1 | 688 | ' | ' | -330 | ' |
Issuance of common stock in connection with equity incentive plan | ' | ' | 227 | ' | -227 | ' | ' |
Excess tax benefits in connection with stock option exercises | 89 | ' | 89 | ' | ' | ' | ' |
Cash dividends declared and paid ($0.44 per share in 2013, $0.44 per share in 2012 and $0.54 per share in 2011) | -14,305 | ' | ' | ' | ' | -14,305 | ' |
ENDING BALANCE at Dec. 31, 2011 | 218,988 | 269 | 173,615 | -9,119 | -1,228 | 47,735 | 7,716 |
ENDING BALANCE (in shares) at Dec. 31, 2011 | ' | 26,918,250 | ' | ' | ' | ' | ' |
Comprehensive (loss) income | 9,233 | ' | ' | ' | ' | 6,254 | 2,979 |
Common stock held by ESOP committed to be released (84,261 shares in 2013, 84,261 shares in 2012 and 86,720 shares in 2011) | 628 | ' | 62 | 566 | ' | ' | ' |
Share-based compensation - stock options | 642 | ' | 642 | ' | ' | ' | ' |
Share-based compensation - equity incentive plan | 963 | ' | ' | ' | 963 | ' | ' |
Excess tax shortfall from equity incentive plan | -96 | ' | -96 | ' | ' | ' | ' |
Common stock repurchased (in shares) | ' | -4,311,841 | ' | ' | ' | ' | ' |
Common stock repurchased | -31,731 | -43 | -31,688 | ' | ' | ' | ' |
Issuance of common stock in connection with stock option exercises (in shares) | ' | 237,313 | ' | ' | ' | ' | ' |
Issuance of common stock in connection with stock option exercises | 1,041 | 2 | 1,943 | ' | ' | -904 | ' |
Excess tax benefits in connection with stock option exercises | 240 | ' | 240 | ' | ' | ' | ' |
Cash dividends declared and paid ($0.44 per share in 2013, $0.44 per share in 2012 and $0.54 per share in 2011) | -10,721 | ' | ' | ' | ' | -10,721 | ' |
ENDING BALANCE at Dec. 31, 2012 | 189,187 | 228 | 144,718 | -8,553 | -265 | 42,364 | 10,695 |
ENDING BALANCE (in shares) at Dec. 31, 2012 | ' | 22,843,722 | ' | ' | ' | ' | ' |
Comprehensive (loss) income | -6,914 | ' | ' | ' | ' | 6,756 | -13,670 |
Common stock held by ESOP committed to be released (84,261 shares in 2013, 84,261 shares in 2012 and 86,720 shares in 2011) | 599 | ' | 49 | 550 | ' | ' | ' |
Share-based compensation - stock options | 128 | ' | 128 | ' | ' | ' | ' |
Share-based compensation - equity incentive plan | 126 | ' | ' | ' | 126 | ' | ' |
Excess tax shortfall from equity incentive plan | -1 | ' | -1 | ' | ' | ' | ' |
Common stock repurchased (in shares) | ' | -2,703,053 | ' | ' | ' | ' | ' |
Common stock repurchased | -20,392 | -27 | -20,365 | ' | ' | ' | ' |
Issuance of common stock in connection with equity incentive plan | ' | ' | 48 | ' | -48 | ' | ' |
Tender offer to purchase outstanding options, including tax impact of $566,000 | -2,717 | ' | -2,717 | ' | ' | ' | ' |
Cash dividends declared and paid ($0.44 per share in 2013, $0.44 per share in 2012 and $0.54 per share in 2011) | -5,872 | ' | ' | ' | ' | -5,872 | ' |
ENDING BALANCE at Dec. 31, 2013 | $154,144 | $201 | $121,860 | ($8,003) | ($187) | $43,248 | ($2,975) |
ENDING BALANCE (in shares) at Dec. 31, 2013 | ' | 20,140,669 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Common stock held by ESOP committed to be released, shares | 81,803 | 84,261 | 86,720 |
Tender offer to purchase outstanding options, tax impact | $566,000 | ' | ' |
Cash dividends declared, per share | $0.29 | $0.44 | $0.54 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $6,756 | $6,254 | $5,874 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
(Credit) provision for loan losses | -256 | 698 | 1,206 |
Depreciation and amortization of premises and equipment | 1,102 | 1,049 | 1,120 |
Net amortization of premiums and discounts on securities and mortgage loans | 4,248 | 4,411 | 3,424 |
Net amortization of premiums on modified debt | 627 | 537 | 187 |
Share-based compensation expense | 254 | 1,605 | 1,949 |
Amortization of ESOP expense | 599 | 628 | 694 |
Excess tax shortfall from equity incentive plan | 1 | 96 | 93 |
Excess tax benefits in connection with stock option exercises | ' | -240 | -89 |
Excess tax expense in connection with tender offer completion | 566 | ' | ' |
Net gains on sales of securities | -3,126 | -2,907 | -414 |
Other than temporary impairment losses on securities | ' | ' | 102 |
Write-downs of other real estate owned | ' | 166 | ' |
Loss on sale of other real estate owned | 6 | ' | 25 |
Loss on prepayment of borrowings | 3,370 | 1,017 | ' |
Deferred income tax benefit | 980 | 185 | 21 |
Income from bank-owned life insurance | -1,549 | -1,439 | -1,546 |
Gain on bank-owned life insurance death benefit | -563 | -80 | ' |
Changes in assets and liabilities: | ' | ' | ' |
Accrued interest receivable | 401 | -580 | 248 |
Other assets | -21 | 976 | 1,587 |
Other liabilities | 807 | -1,066 | 309 |
Net cash provided by operating activities | 14,202 | 11,310 | 14,790 |
Securities, held to maturity: | ' | ' | ' |
Purchases | -3,461 | ' | ' |
Proceeds from calls, maturities, and principal collections | 6,064 | ' | ' |
Securities, available for sale: | ' | ' | ' |
Purchases | -212,765 | -375,168 | -257,289 |
Proceeds from sales | 206,788 | 288,116 | 203,665 |
Proceeds from calls, maturities, and principal collections | 61,270 | 86,210 | 89,183 |
Purchase of residential mortgages | -37,700 | -62,895 | -58,241 |
Loan originations and principal payments, net | -4,946 | 21,286 | 11,848 |
Purchase of Federal Home Loan Bank of Boston stock | -1,393 | -2,026 | -156 |
Proceeds from redemption of other restricted stock | 31 | 195 | ' |
Proceeds from sale of other real estate owned | 958 | ' | 198 |
Purchases of premises and equipment | -1,020 | -1,129 | -514 |
Purchase of bank-owned life insurance | ' | -2,600 | -2,000 |
Surrender of bank-owned life insurance | ' | 1,585 | ' |
Disbursement of bank-owned life insurance gain | -282 | ' | ' |
Proceeds from payout on bank-owned life insurance | 1,437 | ' | ' |
Net cash provided by (used in) investing activities | 14,981 | -46,426 | -13,306 |
FINANCING ACTIVITIES: | ' | ' | ' |
Net increase in deposits | 63,699 | 20,455 | 32,623 |
Net change in short-term borrowings | -21,737 | 16,949 | -9,952 |
Repayment of long-term debt | -66,620 | -88,748 | -5,150 |
Proceeds from long-term debt | 32,139 | 118,735 | 14,132 |
Tender offer to purchase outstanding options | -2,151 | ' | ' |
Excess tax expense in connection with tender offer completion | -566 | ' | 15 |
Cash dividends paid | -5,872 | -10,721 | -14,305 |
Common stock repurchased | -20,093 | -32,083 | -9,708 |
Issuance of common stock in connection with stock option exercises | ' | 1,041 | 359 |
Excess tax shortfall in connection with equity incentive plan | -1 | -96 | -93 |
Excess tax benefits in connection with stock option exercises | ' | 240 | 89 |
Purchase of common stock in connection with employee benefit program | -566 | ' | 15 |
Net cash (used in) provided by financing activities | -21,202 | 25,772 | 8,010 |
NET CHANGE IN CASH AND CASH EQUIVALENTS: | 7,981 | -9,344 | 9,494 |
Beginning of year | 11,761 | 21,105 | 11,611 |
End of year | 19,742 | 11,761 | 21,105 |
Supplemental cashflow information: | ' | ' | ' |
Transfer of loans to other real estate owned | ' | ' | 1,130 |
Securities reclassified from available-for-sale to held-to-maturity | 299,203 | ' | ' |
Net cash due to (from) broker for investment purchases | ' | -11 | -7,780 |
Net cash due to (from) broker for common stock repurchased | $299 | ($352) | $352 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
Nature of Operations and Basis of Presentation - Westfield Financial, Inc. (“Westfield Financial,” “we” or “us”) is a Massachusetts-chartered stock holding company for Westfield Bank, a federally chartered stock savings bank (the “Bank”). | |||||||||||||||||
The Bank’s deposits are insured to the limits specified by the Federal Deposit Insurance Corporation (“FDIC”). The Bank operates 11 banking offices in western Massachusetts and 1 banking office in Granby, Connecticut, and its primary sources of revenue are income from securities and earnings on loans to small and middle-market businesses and to residential property homeowners. | |||||||||||||||||
Elm Street Securities Corporation and WFD Securities Corporation, Massachusetts-chartered security corporations, were formed by Westfield Financial for the primary purpose of holding qualified securities. WB Real Estate Holdings, LLC, a Massachusetts-chartered limited liability company was formed for the primary purpose of holding real property acquired as security for debts previously contracted by the Bank. | |||||||||||||||||
Principles of Consolidation - The consolidated financial statements include the accounts of Westfield Financial, the Bank, Elm Street Securities Corporation, WB Real Estate Holdings and WFD Securities Corporation. All material intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses for each. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, other-than-temporary impairment of securities and the valuation of deferred tax assets. | |||||||||||||||||
Reclassifications – Amounts in the prior year financial statements are reclassified when necessary to conform to the current year presentation. | |||||||||||||||||
Cash and Cash Equivalents - We define cash on hand, cash due from banks, federal funds sold and interest-bearing deposits having an original maturity of 90 days or less as cash and cash equivalents. We are required to maintain a reserve balance with Bankers Bank Northeast (“BBN”) as part of our coin and currency contract and line of credit with BBN. The required reserve amounted to $975,000 at December 31, 2013 and $925,000 at December 31, 2012. There were no cash reserve requirements for the Federal Reserve Bank of Boston at December 31, 2013 or 2012. | |||||||||||||||||
Securities and Mortgage-Backed Securities - Debt securities, including mortgage-backed securities, which management has the positive intent and ability to hold until maturity are classified as held to maturity and are carried at amortized cost. Securities, including mortgage-backed securities, which have been identified as assets for which there is not a positive intent to hold to maturity are classified as available for sale and are carried at fair value with unrealized gains and losses, net of income taxes, reported as a separate component of comprehensive income/loss. We do not acquire securities and mortgage-backed securities for purposes of engaging in trading activities. | |||||||||||||||||
Realized gains and losses on sales of securities and mortgage-backed securities are computed using the specific identification method and are included in noninterest income on the trade date. The amortization of premiums and accretion of discounts is determined by using the level yield method to the maturity date. | |||||||||||||||||
Derivatives - The Company enters into interest rate swap agreements as part of the Company’s interest-rate risk management strategy for certain assets and liabilities and not for speculative purposes. Based on the Company’s intended use for the interest rate swaps these are hedging instruments subject to hedge accounting provisions. Cash flow hedges are recorded at fair value in other assets or liabilities within the Company’s balance sheets. Changes in the fair value of these cash flow hedges are initially recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the forecasted transaction affects earnings. Any hedge ineffectiveness assessed as part of the Company’s quarterly analysis is recorded directly to earnings. The Company would discontinue hedge accounting if the derivative was not expected to be or ceased to be highly effective as a hedge, and record changes in fair value of the derivative in earnings upon termination of the hedge relationship. | |||||||||||||||||
Other-than-Temporary Impairment of Securities - On a quarterly basis, we review securities with a decline in fair value below the amortized cost of the investment to determine whether the decline in fair value is temporary or other-than-temporary. Declines in the fair value of marketable equity securities below their cost that are deemed to be other-than-temporary based on the severity and duration of the impairment are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses for securities, impairment is required to be recognized if (1) we intend to sell the security; (2) it is “more likely than not” that we will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that we intend to sell, or more likely than not will be required to sell, the full amount of the other-than-temporary impairment is recognized through earnings. For all other impaired debt securities, credit-related other-than-temporary impairment is recognized through earnings, while non-credit related other-than-temporary impairment is recognized in other comprehensive income/loss, net of applicable taxes. | |||||||||||||||||
Fair Value Hierarchy - We group our assets generally measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. | |||||||||||||||||
Level 1 – Valuation is based on quoted prices in active markets for identical assets. Level 1 assets generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. | |||||||||||||||||
Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets. | |||||||||||||||||
Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | |||||||||||||||||
Transfers between levels are recognized at the end of a reporting period, if applicable. | |||||||||||||||||
Federal Home Loan Bank of Boston Stock - The Bank, as a member of the Federal Home Loan Bank of Boston (“FHLBB”) system, is required to maintain an investment in capital stock of the FHLBB. Based on the redemption provisions of the FHLBB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. Management reviews for impairment based on the ultimate recoverability of the cost basis in the FHLBB stock. As of December 31, 2013, no impairment has been recognized. | |||||||||||||||||
Loans - Loans are recorded at the principal amount outstanding, adjusted for charge-offs, unearned premiums and deferred loan fees and costs. Interest on loans is calculated using the effective yield method on daily balances of the principal amount outstanding and is credited to income on the accrual basis to the extent it is deemed collectible. Our general policy is to discontinue the accrual of interest when principal or interest payments are delinquent 90 days or more based on the contractual terms of the loan, or earlier if the loan is considered impaired. Any unpaid amounts previously accrued on these loans are reversed from income. Subsequent cash receipts are applied to the outstanding principal balance or to interest income if, in the judgment of management, collection of the principal balance is not in question. Loans are returned to accrual status when they become current as to both principal and interest and when subsequent performance reduces the concern as to the collectability of principal and interest. Loan fees, discounts and premiums on purchased loans, and certain direct loan origination costs are deferred and the net fee or cost is recognized as an adjustment to interest income over the estimated average lives of the related loans. | |||||||||||||||||
Allowance for Loan Losses - The allowance for loan losses is established through provisions for loan losses charged to expense. Loans are charged-off against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. | |||||||||||||||||
The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and allocated components, as further described below. | |||||||||||||||||
General component | |||||||||||||||||
The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, commercial and industrial, and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: trends in delinquencies and nonperforming loans; trends in volume and terms of loans; internal credit ratings; effects of changes in risk selection; underwriting standards and other changes in lending policies, procedures and practices; and national and local economic trends and industry conditions. There were no changes in our policies or methodology pertaining to the general component of the allowance for loan losses during 2013, 2012 and 2011. | |||||||||||||||||
The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: | |||||||||||||||||
Residential real estate – We require private mortgage insurance for all loans originated with a loan-to-value ratio greater than 80 percent and do not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. | |||||||||||||||||
Commercial real estate – Loans in this segment are primarily income-producing investment properties and owner occupied commercial properties throughout New England. The underlying cash flows generated by the properties or operations can be adversely impacted by a downturn in the economy due to increased vacancy rates or diminished cash flows, which in turn, would have an effect on the credit quality in this segment. Management obtains financial information annually and continually monitors the cash flows of these loans. | |||||||||||||||||
Commercial and industrial loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, decreased consumer spending, changes in technology and government spending are examples of what will have an effect on the credit quality in this segment. | |||||||||||||||||
Consumer loans – Loans in this segment are both secured and unsecured and repayment is dependent on the credit quality of the individual borrower. | |||||||||||||||||
Allocated component | |||||||||||||||||
The allocated component relates to loans that are classified as impaired. Impaired loans are identified by analysis of loan performance, internal credit ratings and watch list loans that management believes are subject to a higher risk of loss. Impairment is measured on a loan by loan basis for commercial real estate and commercial and industrial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, we do not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. | |||||||||||||||||
A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect all of the principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. We determine the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |||||||||||||||||
We may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are initially classified as impaired. | |||||||||||||||||
While we use our best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. | |||||||||||||||||
We also maintain a reserve for unfunded credit commitments to provide for the risk of loss inherent in these arrangements. This reserve is determined using a methodology similar to the analysis of the allowance for loan losses, taking into consideration probabilities of future funding requirements. This reserve for unfunded commitments is included in other liabilities and was $60,000 at December 31, 2013 and 2012. | |||||||||||||||||
Unallocated component | |||||||||||||||||
An unallocated component may be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. | |||||||||||||||||
Bank-owned Life Insurance – Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in noninterest income on the consolidated statements of income and are not subject to income taxes. | |||||||||||||||||
Transfers and Servicing of Financial Assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from us, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||||||||
Premises and Equipment – Land is carried at cost. Buildings, furniture and equipment are stated at cost, less accumulated depreciation and amortization, computed on the straight-line method over the estimated useful lives of the assets, or the expected lease term, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. The estimated useful lives of the assets are as follows: | |||||||||||||||||
Years | |||||||||||||||||
Buildings | 39 | ||||||||||||||||
Leasehold Improvements | 20-May | ||||||||||||||||
Furniture and Equipment | 7-Mar | ||||||||||||||||
The cost of maintenance and repairs is charged to expense when incurred. Major expenditures for betterments are capitalized and depreciated. | |||||||||||||||||
Other Real Estate Owned - Other real estate owned (“OREO”) represents property acquired through foreclosure or deeded to us in lieu of foreclosure. OREO is initially recorded at the estimated fair value of the real estate acquired, net of estimated selling costs, establishing a new cost basis. Initial write-downs are charged to the allowance for loan losses at the time the loan is transferred to OREO. Subsequent valuations are periodically performed by management and the carrying value is adjusted by a charge to expense to reflect any subsequent declines in the estimated fair value. Operating costs associated with OREO are expensed as incurred. | |||||||||||||||||
Retirement Plans and Employee Benefits - We provide a defined benefit pension plan for eligible employees in conjunction with a third-party provider. Our policy is to fund pension costs as accrued. Employees are also eligible to participate in a 401(k) plan through third-party provider. We make matching contributions to this plan at 50% of up to 6% of the employees’ eligible compensation. The compensation cost of an employee’s pension benefit is recognized on the projected unit credit method over the employee’s approximate service period. The aggregate cost method is utilized for funding purposes. | |||||||||||||||||
We currently offer postretirement life insurance benefits to retired employees. Such postretirement benefits represent a form of deferred compensation which requires that the cost and obligations of such benefits are recognized in the period in which services are rendered. | |||||||||||||||||
Share-based Compensation Plans – We measure and recognize compensation cost relating to share-based payment transactions based on the grant-date fair value of the equity instruments issued. Share-based compensation is recognized over the period the employee is required to provide services for the award. Reductions in compensation expense associated with forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted based on actual forfeiture experience. We use a binomial option-pricing model to determine the fair value of the stock options granted. | |||||||||||||||||
Employee Stock Ownership Plan – Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. We recognize compensation expense ratably over the year based upon our estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity in the consolidated balance sheets. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. | |||||||||||||||||
Advertising Costs – Advertising costs are expensed as incurred. | |||||||||||||||||
Income Taxes - We use the asset and liability method for income tax accounting, whereby, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance related to deferred tax assets is established when, in the judgment of management, it is more likely than not that all or a portion of such deferred tax assets will not be realized based on the available evidence including historical and projected taxable income. We do not have any uncertain tax positions at December 31, 2013 which require accrual or disclosure. We record interest and penalties as part of income tax expense. | |||||||||||||||||
Earnings per Share – Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. If rights to dividends or unvested awards are non-forfeitable, these unvested awards are considered outstanding in the computation of basic earnings per share. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by us relate solely to stock options and are determined using the treasury stock method. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. | |||||||||||||||||
Earnings per common share have been computed based on the following: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Net income applicable to common stock | $ | 6,756 | $ | 6,254 | $ | 5,874 | |||||||||||
Average number of common shares issued | 21,254 | 25,763 | 27,839 | ||||||||||||||
Less: Average unallocated ESOP Shares | (1,171 | ) | (1,254 | ) | (1,339 | ) | |||||||||||
Less: Average ungranted equity incentive plan shares | (4 | ) | (7 | ) | (18 | ) | |||||||||||
Average number of common shares outstanding used | |||||||||||||||||
to calculate basic earnings per common share | 20,079 | 24,502 | 26,482 | ||||||||||||||
Effect of dilutive stock options | - | 18 | 107 | ||||||||||||||
Average number of common shares outstanding used | |||||||||||||||||
to calculate diluted earnings per common share | 20,079 | 24,520 | 26,589 | ||||||||||||||
Basic earnings per share | $ | 0.34 | $ | 0.26 | $ | 0.22 | |||||||||||
Diluted earnings per share | $ | 0.34 | $ | 0.26 | $ | 0.22 | |||||||||||
Antidilutive shares (1) | 833 | 1,666 | 1,641 | ||||||||||||||
____________________ | |||||||||||||||||
(1) | Shares outstanding but not included in the computation of earnings per share because they were anti-dilutive, meaning the exercise price of such options exceeded the market value of our common stock. | ||||||||||||||||
Comprehensive Income (Loss) | |||||||||||||||||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss). | |||||||||||||||||
The components of accumulated other comprehensive income (loss), included in shareholders’ equity, are as follows: | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Net unrealized (losses) gains on securities available for sale | $ | (2,410 | ) | $ | 20,188 | ||||||||||||
Tax effect | 837 | (6,935 | ) | ||||||||||||||
Net-of-tax amount | (1,573 | ) | 13,253 | ||||||||||||||
Unamortized losses on securities transferred from available-for-sale to held-to-maturity | (1,732 | ) | - | ||||||||||||||
Tax effect | 599 | ||||||||||||||||
Net-of-tax amount | (1,133 | ) | - | ||||||||||||||
Fair value of derivatives used for cash flow hedges | 1,755 | - | |||||||||||||||
Tax effect | (597 | ) | - | ||||||||||||||
Net-of-tax amount | 1,158 | - | |||||||||||||||
Unrecognized transition asset pertaining to defined benefit plan | 10 | 21 | |||||||||||||||
Unrecognized deferred loss pertaining to defined benefit plan | (2,172 | ) | (3,897 | ) | |||||||||||||
Net adjustments pertaining to defined benefit plans | (2,162 | ) | (3,876 | ) | |||||||||||||
Tax effect | 735 | 1,318 | |||||||||||||||
Net-of-tax amount | (1,427 | ) | (2,558 | ) | |||||||||||||
Accumulated other comprehensive (loss) income | $ | (2,975 | ) | $ | 10,695 | ||||||||||||
The following table presents changes in accumulated other comprehensive (loss) income for the years ended December 31, 2013 and 2012 by component: | |||||||||||||||||
Securities | Derivatives | Defined Benefit | Accumulated Other Comprehensive | ||||||||||||||
Pension Plans | (Loss) Income | ||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2012 | $ | 13,253 | $ | - | $ | (2,558 | ) | $ | 10,695 | ||||||||
Current-period other comprehensive (loss) income | (15,959 | ) | 1,158 | 1,131 | (13,670 | ) | |||||||||||
Balance at December 31, 2013 | $ | (2,706 | ) | $ | 1,158 | $ | (1,427 | ) | $ | (2,975 | ) | ||||||
Balance at December 31, 2011 | $ | 10,321 | $ | - | $ | (2,605 | ) | $ | 7,716 | ||||||||
Current-period other comprehensive income | 2,932 | - | 47 | 2,979 | |||||||||||||
Balance at December 31, 2012 | $ | 13,253 | $ | - | $ | (2,558 | ) | $ | 10,695 | ||||||||
With regard to defined benefit plans, actuarial loss in the amount of $117,000 is expected to be recognized as a component of net periodic pension cost for the year ending December 31, 2014. Amortization of transition asset in the amount of $12,000 is expected to be recognized as a component of net periodic pension cost for the year ending December 31, 2014. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This update requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. This ASU is effective for public entities for reporting periods beginning after December 15, 2012. The amendments in ASU 2013-02 did not have a significant impact on our consolidated financial statements. | |||||||||||||||||
In January 2014, FASB issued ASU 2014-04- Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure.” This ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar agreement. In addition, the amendments require disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure in accordance with local requirements of the applicable jurisdiction. An entity can elect to adopt the amendments using either a modified retrospective method or a prospective transition method. The amendments are effective for annual and interim periods beginning after December 15, 2014. We do not expect the application of this guidance to have a material impact on our consolidated financial statements. |
Securities
Securities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Securities | ' | ||||||||||||||||
2. SECURITIES | |||||||||||||||||
Securities available for sale are summarized as follows: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 135,981 | $ | 419 | $ | (4,028 | ) | $ | 132,372 | ||||||||
U.S. government guaranteed mortgage-backed securities | 46,225 | 240 | (137 | ) | 46,328 | ||||||||||||
Corporate bonds | 26,716 | 766 | (93 | ) | 27,389 | ||||||||||||
State and municipal bonds | 18,240 | 659 | (2 | ) | 18,897 | ||||||||||||
Government-sponsored enterprise obligations | 10,992 | 18 | (310 | ) | 10,700 | ||||||||||||
Mutual funds | 6,150 | 8 | (239 | ) | 5,919 | ||||||||||||
Common and preferred stock | 1,310 | 289 | - | 1,599 | |||||||||||||
Total available for sale securities | 245,614 | 2,399 | (4,809 | ) | 243,204 | ||||||||||||
Held to maturity securities: | |||||||||||||||||
Government-sponsored mortgage-backed securities | 176,986 | - | (6,819 | ) | 170,167 | ||||||||||||
U.S. government guaranteed mortgage-backed securities | 39,705 | - | (1,391 | ) | 38,314 | ||||||||||||
Corporate bonds | 27,566 | 30 | (567 | ) | 27,029 | ||||||||||||
State and municipal bonds | 7,351 | 5 | (345 | ) | 7,011 | ||||||||||||
Government-sponsored enterprise obligations | 43,405 | - | (3,371 | ) | 40,034 | ||||||||||||
Total held to maturity securities | 295,013 | 35 | (12,493 | ) | 282,555 | ||||||||||||
Total | $ | 540,627 | $ | 2,434 | $ | (17,302 | ) | $ | 525,759 | ||||||||
31-Dec-12 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 318,951 | $ | 9,703 | $ | (631 | ) | $ | 328,023 | ||||||||
U.S. government guaranteed mortgage-backed securities | 124,650 | 6,085 | - | 130,735 | |||||||||||||
Corporate bonds | 50,782 | 1,618 | (63 | ) | 52,337 | ||||||||||||
State and municipal bonds | 38,788 | 2,067 | (9 | ) | 40,846 | ||||||||||||
Government-sponsored enterprise obligations | 60,840 | 1,257 | (37 | ) | 62,060 | ||||||||||||
Mutual funds | 5,998 | 117 | (69 | ) | 6,046 | ||||||||||||
Common and preferred stock | 1,310 | 150 | - | 1,460 | |||||||||||||
Total | $ | 601,319 | $ | 20,997 | $ | (809 | ) | $ | 621,507 | ||||||||
Our repurchase agreements and FHLBB advances are collateralized by government-sponsored enterprise obligations and certain mortgage-backed securities (see Notes 6 and 7). | |||||||||||||||||
The amortized cost and fair value of securities at December 31, 2013, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or repay obligations. | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Securities | Securities | ||||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||
Amortized | Fair Value | Amortized | Fair Value | ||||||||||||||
Cost | Cost | ||||||||||||||||
(In thousands) | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Due after five years through ten years | $ | 39,482 | $ | 37,783 | $ | 44,261 | $ | 41,476 | |||||||||
Due after ten years | 142,724 | 140,917 | 172,430 | 167,005 | |||||||||||||
Total | $ | 182,206 | $ | 178,700 | $ | 216,691 | $ | 208,481 | |||||||||
Debt securities: | |||||||||||||||||
Due in one year or less | $ | - | $ | - | $ | - | $ | - | |||||||||
Due after one year through five years | 34,533 | 35,204 | 14,751 | 14,486 | |||||||||||||
Due after five years through ten years | 21,230 | 21,586 | 48,014 | 45,268 | |||||||||||||
Due after ten years | 185 | 196 | 15,557 | 14,320 | |||||||||||||
Total | $ | 55,948 | $ | 56,986 | $ | 78,322 | $ | 74,074 | |||||||||
Gross realized gains and losses on sales of securities for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Gross gains realized | $ | 3,978 | $ | 4,068 | $ | 1,901 | |||||||||||
Gross losses realized | (852 | ) | (1,161 | ) | (1,487 | ) | |||||||||||
Net gain realized | $ | 3,126 | $ | 2,907 | $ | 414 | |||||||||||
Proceeds from the sale of securities available for sale amounted to $206.8 million, $288.1 million and $203.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
The tax provision applicable to net realized gains and losses were $1.1 million, $1.0 million and $144,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
Information pertaining to securities with gross unrealized losses at December 31, 2013 and 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Less Than 12 Months | Over 12 Months | ||||||||||||||||
Gross | Fair Value | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Available for sale: | |||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 3,717 | $ | 118,846 | $ | 311 | $ | 2,761 | |||||||||
U.S. government guaranteed mortgage-backed securities | 137 | 15,045 | - | - | |||||||||||||
Corporate bonds | 93 | 4,659 | - | - | |||||||||||||
State and municipal bonds | 2 | 256 | - | - | |||||||||||||
Government-sponsored enterprise obligations | 310 | 7,189 | - | - | |||||||||||||
Mutual funds | 84 | 3,205 | 155 | 1,656 | |||||||||||||
Total available for sale | 4,343 | 149,200 | 466 | 4,417 | |||||||||||||
Held to maturity: | |||||||||||||||||
Government-sponsored mortgage-backed securities | 5,866 | 145,438 | 953 | 24,729 | |||||||||||||
U.S. government guaranteed mortgage-backed securities | 1,391 | 38,314 | - | - | |||||||||||||
Corporate bonds | 567 | 22,059 | - | - | |||||||||||||
State and municipal bonds | 345 | 5,852 | - | - | |||||||||||||
Government-sponsored enterprise obligations | 3,330 | 38,228 | 41 | 1,806 | |||||||||||||
Total held to maturity | 11,499 | 249,891 | 994 | 26,535 | |||||||||||||
Total | $ | 15,842 | $ | 399,091 | $ | 1,460 | $ | 30,952 | |||||||||
December 31, 2012 | |||||||||||||||||
Less Than 12 Months | Over 12 Months | ||||||||||||||||
Gross | Fair Value | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 631 | $ | 49,081 | $ | - | $ | - | |||||||||
Corporate bonds | 63 | 4,330 | - | - | |||||||||||||
State and municipal bonds | 9 | 1,178 | - | - | |||||||||||||
Government-sponsored enterprise obligations | 37 | 17,918 | - | - | |||||||||||||
Mutual funds | - | - | 69 | 1,684 | |||||||||||||
Total | $ | 740 | $ | 72,507 | $ | 69 | $ | 1,684 | |||||||||
At December 31, 2013, 73 mortgage-backed securities had gross unrealized losses with aggregate depreciation of 3.4% from our amortized cost basis existing for less than 12 months. At December 31, 2013, nine mortgage-backed securities had gross unrealized losses with aggregate depreciation of 4.4% from our amortized cost basis existing for greater than 12 months. At December 31, 2013, 13 government-sponsored enterprise obligations had gross unrealized loss with aggregate depreciation of 7.4% from our amortized cost basis existing for less than 12 months. At December 31, 2013, one government-sponsored enterprise obligation had gross unrealized loss with aggregate depreciation of 2.2% from our amortized cost basis existing for greater than 12 months. At December 31, 2013, 10 corporate bonds had gross unrealized loss of 2.4% from our amortized cost basis existing for less than 12 months. At December 31, 2013, 14 municipal bonds had gross unrealized loss of 5.4% from our amortized cost basis existing for less than 12 months. These unrealized losses are the result of changes in interest rates and not credit quality. Because we do not intend to sell the securities and it is more likely than not that we will not be required to sell the investments before recovery of their amortized cost basis, no declines are deemed to be other-than-temporary. | |||||||||||||||||
At December 31, 2013, one mutual fund had a gross unrealized loss with aggregate depreciation of 2.6% from our amortized cost basis existing for less than 12 months. At December 31, 2013, one mutual fund had a gross unrealized loss with depreciation of 8.6% from our cost basis existing for greater than 12 months and was principally related to fluctuations in interest rates. These losses relate to mutual funds that invest primarily in short-term debt instruments and adjustable rate mortgage-backed securities. Because we do not intend to sell the securities and it is more likely than not that we will not be required to sell these prior to the recovery of the amortized cost basis, the losses are deemed temporary. | |||||||||||||||||
Credit losses on mortgage-backed securities for which a portion of other-than-temporary impairment was recognized in other comprehensive income (loss) in the amount of $442,000 was eliminated when the securities were sold during the year ended December 31, 2012. |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||
3. LOANS | |||||||||||||||||||||||||
Loans consisted of the following amounts: | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Commercial real estate | $ | 264,476 | $ | 245,764 | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 198,686 | 185,345 | |||||||||||||||||||||||
Home equity | 35,371 | 34,352 | |||||||||||||||||||||||
Commercial and industrial | 135,555 | 126,052 | |||||||||||||||||||||||
Consumer | 2,572 | 2,431 | |||||||||||||||||||||||
Total loans | 636,660 | 593,944 | |||||||||||||||||||||||
Unearned premiums and deferred loan fees and costs, net | 767 | 974 | |||||||||||||||||||||||
Allowance for loan losses | (7,459 | ) | (7,794 | ) | |||||||||||||||||||||
$ | 629,968 | $ | 587,124 | ||||||||||||||||||||||
During 2013 and 2012, we purchased residential real estate loans aggregating $37.7 million and $62.9 million, respectively. These purchased loans are subject to underwriting standards that are consistent with our originated loans and we consider the risk attributes to be similar to originated loans. | |||||||||||||||||||||||||
We have transferred a portion of our originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in our accompanying consolidated balance sheets. We share ratably with our participating lenders in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. We continue to 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 December 31, 2013 and 2012, we serviced loans for participants aggregating $14.3 million and $7.8 million, respectively. | |||||||||||||||||||||||||
An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||||||||||||||
Commercial | Residential | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||
Real Estate | Real Estate | and | |||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 3,406 | $ | 1,746 | $ | 2,167 | $ | 13 | $ | 462 | $ | 7,794 | |||||||||||||
Provision (credit) | 9 | 40 | 148 | 11 | (464 | ) | (256 | ) | |||||||||||||||||
Charge-offs | (20 | ) | (80 | ) | (208 | ) | (33 | ) | - | (341 | ) | ||||||||||||||
Recoveries | 155 | 1 | 84 | 22 | - | 262 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 3,549 | $ | 1,707 | $ | 2,192 | $ | 13 | $ | (2 | ) | $ | 7,459 | ||||||||||||
Balance at December 31, 2011 | $ | 3,504 | $ | 1,531 | $ | 2,712 | $ | 17 | $ | - | $ | 7,764 | |||||||||||||
Provision (credit) | 19 | 365 | (161 | ) | 13 | 462 | 698 | ||||||||||||||||||
Charge-offs | (195 | ) | (155 | ) | (391 | ) | (27 | ) | - | (768 | ) | ||||||||||||||
Recoveries | 78 | 5 | 7 | 10 | - | 100 | |||||||||||||||||||
Balance at December 31, 2012 | $ | 3,406 | $ | 1,746 | $ | 2,167 | $ | 13 | $ | 462 | $ | 7,794 | |||||||||||||
Balance at December 31, 2010 | $ | 3,182 | $ | 877 | $ | 2,849 | $ | 26 | $ | - | $ | 6,934 | |||||||||||||
Provision (credit) | 357 | 647 | 215 | (13 | ) | - | 1,206 | ||||||||||||||||||
Charge-offs | (175 | ) | (2 | ) | (442 | ) | (21 | ) | - | (640 | ) | ||||||||||||||
Recoveries | 140 | 9 | 90 | 25 | - | 264 | |||||||||||||||||||
Balance at December 31, 2011 | $ | 3,504 | $ | 1,531 | $ | 2,712 | $ | 17 | $ | - | $ | 7,764 | |||||||||||||
Further information pertaining to the allowance for loan losses by segment at December 31, 2013 and 2012 follows: | |||||||||||||||||||||||||
Commercial | Residential | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||
Real Estate | Real Estate | and | |||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amount of allowance for loans individually | $ | 82 | $ | - | $ | 15 | $ | - | $ | - | $ | 97 | |||||||||||||
evaluated and deemed impaired | |||||||||||||||||||||||||
Amount of allowance for loans collectively or | 3,467 | 1,707 | 2,177 | 13 | (2 | ) | 7,362 | ||||||||||||||||||
individually evaluated for impairment and not | |||||||||||||||||||||||||
deemed impaired | |||||||||||||||||||||||||
Total allowance for loan losses | 3,549 | 1,707 | 2,192 | 13 | (2 | ) | 7,459 | ||||||||||||||||||
Loans individually evaluated and deemed impaired | 14,962 | 234 | 1,352 | - | - | 16,548 | |||||||||||||||||||
Loan collectively evaluated and not deemed impaired | 249,514 | 233,823 | 134,203 | 2,572 | - | 620,112 | |||||||||||||||||||
Total loans | $ | 264,476 | $ | 234,057 | $ | 135,555 | $ | 2,572 | $ | - | $ | 636,660 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amount of allowance for loans individually | $ | 377 | $ | 57 | $ | 104 | $ | - | $ | - | $ | 538 | |||||||||||||
evaluated and deemed impaired | |||||||||||||||||||||||||
Amount of allowance for loans collectively or | 3,029 | 1,689 | 2,063 | 13 | 462 | 7,256 | |||||||||||||||||||
individually evaluated for impairment and not | |||||||||||||||||||||||||
deemed impaired | |||||||||||||||||||||||||
Total allowance for loan losses | 3,406 | 1,746 | 2,167 | 13 | 462 | 7,794 | |||||||||||||||||||
Loans individually evaluated and deemed impaired | 15,398 | 302 | 1,379 | - | - | 17,079 | |||||||||||||||||||
Loan collectively evaluated and not deemed impaired | 230,366 | 219,395 | 124,673 | 2,431 | - | 576,865 | |||||||||||||||||||
Total loans | $ | 245,764 | $ | 219,697 | $ | 126,052 | $ | 2,431 | $ | - | $ | 593,944 | |||||||||||||
The following is a summary of past due and non-accrual loans by class at December 31, 2013 and 2012: | |||||||||||||||||||||||||
30 – 59 Days | 60 – 89 Days | Greater than | Total Past | Past Due 90 | Loans on | ||||||||||||||||||||
Past Due | Past Due | 90 Days Past | Due | Days or More | Non-Accrual | ||||||||||||||||||||
Due | and Still | ||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Commercial real estate | $ | 430 | $ | 146 | $ | 793 | $ | 1,369 | $ | - | $ | 1,449 | |||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 1,004 | 325 | 311 | 1,640 | - | 712 | |||||||||||||||||||
Home equity | 217 | - | 2 | 219 | - | 38 | |||||||||||||||||||
Commercial and industrial | 516 | 780 | 140 | 1,436 | - | 386 | |||||||||||||||||||
Consumer | 25 | 16 | 1 | 42 | - | 1 | |||||||||||||||||||
Total | $ | 2,192 | $ | 1,267 | $ | 1,247 | $ | 4,706 | $ | - | $ | 2,586 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Commercial real estate | $ | 94 | $ | 331 | $ | 818 | $ | 1,243 | $ | - | $ | 1,558 | |||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 347 | 70 | 735 | 1,152 | - | 939 | |||||||||||||||||||
Home equity | 139 | 42 | - | 181 | - | 103 | |||||||||||||||||||
Commercial and industrial | 138 | - | 178 | 316 | - | 409 | |||||||||||||||||||
Consumer | - | 1 | - | 1 | - | - | |||||||||||||||||||
Total | $ | 718 | $ | 444 | $ | 1,731 | $ | 2,893 | $ | - | $ | 3,009 | |||||||||||||
The following is a summary of impaired loans by class: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
At December 31, 2013 | 31-Dec-13 | ||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | $ | 1,449 | $ | 1,756 | $ | - | $ | 1,502 | $ | - | |||||||||||||||
Residential real estate | 234 | 306 | - | 248 | - | ||||||||||||||||||||
Commercial and industrial | 385 | 487 | - | 403 | - | ||||||||||||||||||||
Total | 2,068 | 2,549 | - | 2,153 | - | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | 13,513 | 13,513 | 82 | 13,678 | 582 | ||||||||||||||||||||
Commercial and industrial | 967 | 967 | 15 | 979 | 42 | ||||||||||||||||||||
Total | 14,480 | 14,480 | 97 | 14,657 | 624 | ||||||||||||||||||||
Total impaired loans | $ | 16,548 | $ | 17,029 | $ | 97 | $ | 16,810 | $ | 624 | |||||||||||||||
Year Ended | |||||||||||||||||||||||||
At December 31, 2012 | 31-Dec-12 | ||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | $ | 1,011 | $ | 1,177 | $ | - | $ | 1,505 | $ | - | |||||||||||||||
Residential real estate | 118 | 125 | - | 119 | - | ||||||||||||||||||||
Commercial and industrial | 203 | 212 | - | 36 | - | ||||||||||||||||||||
Total | 1,332 | 1,514 | - | 1,660 | - | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | 14,387 | 14,454 | 377 | 14,053 | 643 | ||||||||||||||||||||
Residential real estate | 184 | 184 | 57 | 186 | - | ||||||||||||||||||||
Home equity | - | - | - | 72 | - | ||||||||||||||||||||
Commercial and industrial | 1,176 | 1,178 | 104 | 1,268 | 42 | ||||||||||||||||||||
Total | 15,747 | 15,816 | 538 | 15,579 | 685 | ||||||||||||||||||||
Total impaired loans | $ | 17,079 | $ | 17,330 | $ | 538 | $ | 17,239 | $ | 685 | |||||||||||||||
No interest income was recognized for impaired loans on a cash-basis method during the years ended December 31, 2013 and 2012. Interest income recognized during the years ended December 31, 2013 and 2012 related to TDRs. As of December 31, 2013, we have not committed to lend additional funds to customers with outstanding loans that are classified as impaired and TDRs. | |||||||||||||||||||||||||
We may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. These concessions could include a reduction in the interest rate on the loan, payment extensions, postponement or forgiveness of principal, forbearance or other actions intended to maximize collection. All TDRs are initially classified as impaired. | |||||||||||||||||||||||||
When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or use the current fair value of the collateral, less selling costs, for collateral dependent loans. If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all TDRs, including those that have payment defaults, for possible impairment and recognize impairment through the allowance. | |||||||||||||||||||||||||
Nonperforming TDRs are shown as nonperforming assets. Loans modified as TDRs in 2012 are shown in the table below. There were no loans modified as TDRs in 2013. One loan relationship, consisting of one commercial real estate loan and one commercial industrial loan totaling $14.8 million included below, was restructured in 2011 to reduce the interest rate. These loans were restructured again in June 2012 to commence principal and interest payments. The collateral supporting the loan relationship is deemed sufficient and the income levels going forward are expected to sustain continued principal and interest payments. The loan has performed since the June 2012 modification and we have received all scheduled principal and interest payments. Another loan relationship, consisting of three commercial real estate loans and three commercial industrial loans, totaling $1.0 million were allowed an extended interest only period through 2013. Another loan relationship, consisting of two commercial and industrial loans, totaling $150,000, was restructured in 2012 by extending the remaining amortization from five to ten years. The final commercial real estate loan for $126,000 was restructured in 2012 by extending the remaining amortization from seven to ten years. | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Number of | Pre- | Post- | |||||||||||||||||||||||
Contracts | Modification Outstanding | Modification Outstanding | |||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Commercial real estate | 5 | $ | 14,785 | $ | 14,785 | ||||||||||||||||||||
Commercial and industrial | 6 | 1,344 | 1,344 | ||||||||||||||||||||||
Total | 11 | $ | 16,129 | $ | 16,129 | ||||||||||||||||||||
The following is a summary of troubled debt restructurings that have subsequently defaulted (30 days or more past due) within one year of modification: | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Number of | Recorded | ||||||||||||||||||||||||
Contracts | Investment | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Commercial real estate | 4 | 944 | |||||||||||||||||||||||
Commercial and industrial | 1 | 141 | |||||||||||||||||||||||
Residential | - | - | |||||||||||||||||||||||
Total | 5 | $ | 1,085 | ||||||||||||||||||||||
There were no charge-offs on TDRs during the years ended December 31, 2013 or 2012. | |||||||||||||||||||||||||
Credit Quality Information | |||||||||||||||||||||||||
We use an eight-grade internal loan rating system for commercial real estate and commercial and industrial loans. Performing residential real estate, home equity and consumer loans are grouped with “Pass” rated loans. Nonperforming residential real estate, home equity and consumer loans are monitored individually for impairment and risk rated as “substandard.” | |||||||||||||||||||||||||
Loans rated 1 – 3 are considered “Pass” rated loans with low to average risk | |||||||||||||||||||||||||
Loans rated 4 are considered “Pass Watch,” which represent loans to borrowers with declining earnings, losses, or strained cash flow. | |||||||||||||||||||||||||
Loans rated 5 are considered “Special Mention.” These loans exhibit potential credit weaknesses or downward trends and are being closely monitored by us. | |||||||||||||||||||||||||
Loans rated 6 are considered “Substandard.” Generally, a loan is considered substandard if the borrower exhibits a well-defined weakness that may be inadequately protected by the current net worth and cash flow capacity to pay the current debt. | |||||||||||||||||||||||||
Loans rated 7 are considered “Doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable and that a partial loss of principal is likely. | |||||||||||||||||||||||||
Loans rated 8 are considered uncollectible and of such little value that their continuance as loans is not warranted. | |||||||||||||||||||||||||
On an annual basis, or more often if needed, we formally review the ratings on all commercial real estate and commercial and industrial loans. Construction loans are reported within commercial real estate loans and total $23.4 million and $16.3 million at December 31, 2013 and 2012, respectively. We engage an independent third party to review a significant portion of loans within these segments on at least an annual basis. We use the results of these reviews as part of our annual review process. | |||||||||||||||||||||||||
The following table presents our loans by risk rating at December 31, 2013 and December 31, 2012: | |||||||||||||||||||||||||
Commercial | Residential | Home Equity | Commercial | Consumer | Total | ||||||||||||||||||||
Real Estate | 1-4 family | and | |||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Loans rated 1 – 3 | $ | 213,985 | $ | 197,974 | $ | 35,333 | $ | 108,671 | $ | 2,571 | $ | 558,534 | |||||||||||||
Loans rated 4 | 41,459 | - | - | 15,722 | - | 57,181 | |||||||||||||||||||
Loans rated 5 | 1,972 | - | - | 3,509 | - | 5,481 | |||||||||||||||||||
Loans rated 6 | 7,060 | 712 | 38 | 7,653 | 1 | 15,464 | |||||||||||||||||||
$ | 264,476 | $ | 198,686 | $ | 35,371 | $ | 135,555 | $ | 2,572 | $ | 636,660 | ||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Loans rated 1 – 3 | $ | 203,756 | $ | 184,406 | $ | 34,249 | $ | 99,405 | $ | 2,431 | $ | 524,247 | |||||||||||||
Loans rated 4 | 19,027 | - | - | 15,804 | - | 34,831 | |||||||||||||||||||
Loans rated 5 | 1,943 | - | - | 941 | - | 2,884 | |||||||||||||||||||
Loans rated 6 | 21,038 | 939 | 103 | 9,902 | - | 31,982 | |||||||||||||||||||
$ | 245,764 | $ | 185,345 | $ | 34,352 | $ | 126,052 | $ | 2,431 | $ | 593,944 | ||||||||||||||
Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances of these loans totaled $1.4 million and $2.0 million at December 31, 2013 and 2012, respectively. Net service fee income of $5,000, $7,000 and $12,000 was recorded for the years ended December 31, 2013, 2012 and 2011, respectively, and is included in service charges and fees on the consolidated statements of income. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Premises and Equipment | ' | ||||||||
4. PREMISES AND EQUIPMENT | |||||||||
Premises and equipment are summarized as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Land | $ | 1,826 | $ | 1,826 | |||||
Buildings | 13,104 | 12,951 | |||||||
Leasehold improvements | 1,622 | 1,446 | |||||||
Furniture and equipment | 10,777 | 10,108 | |||||||
Total | 27,329 | 26,331 | |||||||
Accumulated depreciation and amortization | (16,334 | ) | (15,254 | ) | |||||
Premises and equipment, net | $ | 10,995 | $ | 11,077 | |||||
Depreciation and amortization expense for the years ended December 31, 2013, 2012 and 2011 amounted to $1.1 million, $1.0 million and $1.1 million, respectively. |
Deposits
Deposits | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Deposits | ' | ||||||||||||||||
5. DEPOSITS | |||||||||||||||||
Deposit accounts by type and weighted average rates are summarized as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Demand: | |||||||||||||||||
Interest-bearing | $ | 44,924 | 0.27 | % | $ | 52,595 | 0.3 | % | |||||||||
Noninterest-bearing deposits | 145,040 | - | 114,388 | - | |||||||||||||
Savings: | |||||||||||||||||
Regular | 81,244 | 0.1 | 92,188 | 0.17 | |||||||||||||
Money market | 204,469 | 0.38 | 168,195 | 0.38 | |||||||||||||
Time certificates of deposit | 341,435 | 1.28 | 326,047 | 1.46 | |||||||||||||
Total deposits | $ | 817,112 | 0.66 | % | $ | 753,413 | 0.76 | % | |||||||||
Time deposits of $100,000 or more totaled $139.6 million and $121.0 million at December 31, 2013 and 2012, respectively. Interest expense on such deposits totaled $1.6 million, $1.7 million and $2.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
At December 31, 2013, the scheduled maturities of time certificates of deposit are as follows: | |||||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | 212,901 | |||||||||||||||
2015 | 70,330 | ||||||||||||||||
2016 | 34,197 | ||||||||||||||||
2017 | 22,918 | ||||||||||||||||
2018 | 1,089 | ||||||||||||||||
$ | 341,435 | ||||||||||||||||
Interest expense on deposits for the years ended December 31, 2013, 2012 and 2011 is summarized as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Regular | $ | 119 | $ | 186 | $ | 515 | |||||||||||
Money market | 762 | 807 | 620 | ||||||||||||||
Time | 4,509 | 4,883 | 5,693 | ||||||||||||||
Interest-bearing demand | 135 | 266 | 761 | ||||||||||||||
$ | 5,525 | $ | 6,142 | $ | 7,589 | ||||||||||||
Cash paid for interest on deposits totaled $5.5 million, $6.2 million and $7.6 million for years ended December 31, 2013, 2012 and 2011, respectively. |
ShortTerm_Borrowings
Short-Term Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Short-Term Borrowings | ' | ||||||||
6. SHORT-TERM BORROWINGS | |||||||||
FHLBB Advances – FHLBB advances, including line of credit advances, with an original maturity of less than one year, amounted to $20.0 million and $41.7 million at December 31, 2013 and 2012, respectively, at a weighted average rate of 0.30% and 0.24%, respectively. | |||||||||
We have an “Ideal Way” line of credit with the FHLBB for $9.5 million for the years ended December 31, 2013 and 2012. Interest on this line of credit is payable at a rate determined and reset by the FHLBB on a daily basis. The outstanding principal is due daily but the portion not repaid will be automatically renewed. At December 31, 2013, there were no advances outstanding under this line. At December 31, 2012, there was an outstanding advance under this line, amounting to $8.7 million. | |||||||||
FHLBB advances are collateralized by a blanket lien on our residential real estate loans and certain mortgage-backed securities. | |||||||||
BBN Advances – We have a $4.0 million line of credit with BBN at an interest rate determined and reset by BBN on a daily basis. At December 31, 2013, there were no advances outstanding under this line. At December 31, 2012, we had $4.0 million outstanding under this line. As part of our contract with BBN, we are required to maintain a reserve balance of $300,000 with BBN for our use of this line. | |||||||||
Customer Repurchase Agreements – The following table summarizes information regarding repurchase agreements: | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in thousands) | |||||||||
Balance outstanding at end of year | $ | 28,197 | $ | 24,213 | |||||
Maximum amount outstanding during year | 40,860 | 43,027 | |||||||
Average amount outstanding during year | 31,754 | 24,270 | |||||||
Weighted average interest rate at end of year | 0.19 | % | 0.19 | % | |||||
Amortized cost of collateral pledged at end of year (1) | 53,714 | 51,000 | |||||||
Fair value of collateral pledged at end of year (1) | 54,885 | 54,957 | |||||||
(1) Includes collateral pledged toward $5.6 million in long-term customer repurchase agreements. | |||||||||
Our repurchase agreements are collateralized by government-sponsored enterprise obligations and certain mortgage-backed securities. The weighted average interest rate on the pledged collateral was 3.49% and 3.41% at December 31, 2013 and 2012, respectively. | |||||||||
Cash paid for interest on short-term borrowings totaled $111,000, $114,000 and $154,000 for years ended December 31, 2013, 2012 and 2011, respectively. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Long-Term Debt | ' | ||||||||||||||||
7. LONG-TERM DEBT | |||||||||||||||||
FHLBB Advances – The following advances are collateralized by a blanket lien on our residential real estate loans and certain mortgage-backed securities. | |||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Fixed-rate advances maturing: | |||||||||||||||||
2013 | $ | - | $ | 19,950 | - | % | 1.1 | % | |||||||||
2014 | 21,542 | 21,413 | 1.2 | 1.2 | |||||||||||||
2015 | 25,395 | 25,215 | 1.6 | 1.6 | |||||||||||||
2016 | 53,574 | 40,932 | 2.2 | 2.4 | |||||||||||||
2017 | 17,500 | 17,500 | 2.6 | 2.6 | |||||||||||||
2018 | 10,000 | 5,000 | 2.2 | 3.2 | |||||||||||||
2019 | 5,000 | 5,000 | 3.2 | 3.2 | |||||||||||||
2020 | 7,000 | - | 1.8 | - | |||||||||||||
140,011 | 134,470 | 2 | % | 2 | % | ||||||||||||
Variable-rate advances maturing: | |||||||||||||||||
2015 | 9,736 | 9,600 | 0.9 | 1.1 | |||||||||||||
2016* | 10,000 | 23,000 | 1.4 | 0.6 | |||||||||||||
2017* | 30,000 | 30,000 | (0.2 | ) | (0.2 | ) | |||||||||||
2018* | 32,000 | 12,000 | 0.4 | (0.1 | ) | ||||||||||||
2019* | 11,000 | 11,000 | (0.1 | ) | - | ||||||||||||
92,736 | 85,600 | 0.3 | 0.2 | ||||||||||||||
Total advances | $ | 232,747 | $ | 220,070 | 1.3 | % | 1.3 | % | |||||||||
*At December 31, 2013, the following amounts are callable at the option of FHLBB: $30.0 million in 2014 and $33.0 million in 2015. If these advances are not called, the weighted average rate on these advances, which is currently variable and resets based on LIBOR, will become fixed and increase to 2.2% for the 2014 call, and 2.3% for the 2015 call. No FHLBB advances were callable at December 31, 2012. | |||||||||||||||||
At December 31, 2013 and 2012, securities pledged as collateral to the FHLB had a carrying value of $245.1 million and $255.1 million, respectively. | |||||||||||||||||
During 2012, we completed a restructuring of our FHLBB advance portfolio in order to reduce our future cost of funds. Advances totaling $62.7 million with a weighted average rate of 2.68% were modified by extending their maturity dates and lowering the weighted average rate to 1.60%. A prepayment penalty of $1.6 million was paid upon restructuring and is being amortized to interest expense on a level yield method over the remaining maturity of the modified advances. | |||||||||||||||||
Customer Repurchase Agreements - At December 31, 2013, we had one long-term customer repurchase agreement for $5.6 million with a rate of 2.5% and a final maturity in 2014. At December 31, 2012, we had one long-term customer repurchase agreement for $5.5 million with a rate of 2.5% and a final maturity in 2013. | |||||||||||||||||
Securities Sold Under Agreements to Repurchase – The following securities sold under agreements to repurchase are secured by government-sponsored enterprise obligations with a carrying value of $12.4 million and $65.1 million as of December 31, 2013 and 2012, respectively. We may be required to provide additional collateral based on the fair value of the underlying securities. | |||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Fixed-rates maturing: | |||||||||||||||||
2013 | $ | - | $ | 14,800 | - | % | 2.5 | % | |||||||||
2018 | 10,000 | 29,500 | 2.7 | 2.9 | |||||||||||||
10,000 | 44,300 | 2.7 | 2.8 | ||||||||||||||
Variable-rates maturing: | |||||||||||||||||
2018 | - | 9,000 | - | 3.8 | |||||||||||||
Total | $ | 10,000 | $ | 53,300 | 2.7 | % | 2.9 | % | |||||||||
At December 31, 2013 and 2012, the years in which securities sold under agreements to repurchase are callable are as follows: | |||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
2013 | $ | - | $ | 48,300 | - | % | 3 | % | |||||||||
2014 | 10,000 | - | 2.7 | - | |||||||||||||
$ | 10,000 | $ | 48,300 | 2.7 | % | 3 | % | ||||||||||
Cash paid for interest on long-term debt totaled $4.8 million, $6.5 million and $6.7 million for years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
During 2013, we prepaid repurchase agreements in the amount of $43.3 million and incurred a prepayment expense of $3.4 million. The repurchase agreements had a weighted average cost of 2.99%. During the last week of 2012, we prepaid repurchase agreements in the amount of $28.0 million and incurred a prepayment expense of $1.0 million. The repurchase agreements had a weighted average cost of 3.06%. |
Stock_Plans_and_Employee_Stock
Stock Plans and Employee Stock Ownership Plan | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Stock Plans and Employee Stock Ownership Plan | ' | ||||||||
8. STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN | |||||||||
Stock Options - Under our 2002 Stock Option Plan and 2007 Stock Option Plan, we could grant both incentive and non-statutory options to our directors, officers, and employees for up to 1,631,682 and 1,560,101, respectively, shares of common stock, of which 1,631,682 and 1,503,869, respectively, have been granted. The exercise price of each option equals the market price of our stock on the date of grant with a maximum term of 10 years. The fair value of each option grant is estimated on the date of grant using the binomial option pricing model. | |||||||||
During the third quarter of 2013, we completed a tender offer to purchase for cancellation 1,665,415 outstanding options to purchase common stock. The recipients of each eligible option tendered received a cash payment equal to the current fair valuation of the option as measured under the binomial model. The total cash paid to purchase the options was $2.1 million and resulted in a decrease to cash and shareholders’ equity. A deferred tax asset of $566,000 was charged to shareholders’ equity as a result of the tender offer. As of December 31, 2013, 4,016 forfeited outstanding options and 56,232 stock options that had been available for future grants were cancelled and the 2002 and 2007 Stock Option Plans were terminated. | |||||||||
No stock options were granted in 2013 or 2012. | |||||||||
A summary of the status of our stock options at December 31, 2013 is presented below: | |||||||||
Shares | Weighted | ||||||||
Average | |||||||||
Exercise | |||||||||
Price | |||||||||
Outstanding at December 31, 2012 | 1,669,431 | $ | 10.02 | ||||||
Tender offer to purchase outstanding options | (1,665,415 | ) | - | ||||||
Cancelled | (4,016 | ) | - | ||||||
Outstanding at December 31, 2013 | - | $ | - | ||||||
The total intrinsic value of options exercised during the years ended December 31, 2012 and 2011 was $819,000, and $277,000, respectively. Cash received for options exercised during the years ended December 31, 2012 and 2011 was $1.0 million, and $359,000, respectively. | |||||||||
For the years ended December 31, 2013, 2012 and 2011, share-based compensation expense applicable to stock options was $128,000, $642,000 and $792,000, respectively, with related tax benefits of $35,000, $173,000 and $209,000, respectively. The completion of the tender offer caused the acceleration of vesting of certain stock options and resulted in $97,000 of total option expense with a related tax benefit of $26,000 for the year ended December 31, 3013. | |||||||||
Restricted Stock Awards – During 2002 and 2007, we adopted equity incentive plans under which 652,664 and 624,041 shares, respectively, were reserved for issuance as restricted stock awards to directors and employees, all of which are currently issued and outstanding as of December 31, 2013. Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by us. Any shares not issued because vesting requirements are not met will again be available for issuance under the plans. Shares awarded vest ratably over five years. The fair market value of shares awarded, based on the market price at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period. | |||||||||
A summary of the status of unvested restricted stock awards at December 31, 2013 is presented below: | |||||||||
Shares | Weighted Average Grant Date Fair | ||||||||
Value | |||||||||
Balance at December 31, 2012 | 33,800 | $ | 8.23 | ||||||
Shares vested | (15,520 | ) | 8.17 | ||||||
Shares granted | 7,440 | 7.08 | |||||||
Balance at December 31, 2013 | 25,720 | $ | 7.93 | ||||||
We recorded total expense for restricted stock awards of $126,000, $963,000 and $1.2 million for the years ended December 31, 2013, 2012, and 2011, respectively. Tax provisions related to equity incentive plan expense were $1,000, $96,000 and $93,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Unrecognized compensation cost for stock awards was $187,000 at December 31, 2013 with a remaining life of 2.34 years. | |||||||||
Employee Stock Ownership Plan - We established an ESOP for the benefit of each employee that has reached the age of 21 and has completed at least 1,000 hours of service in the previous 12-month period. In January 2002, as part of the initial stock conversion, we provided a loan to the ESOP Trust which was used to purchase 8%, or 1,305,359 shares, of the common stock sold in the initial public offering. | |||||||||
In January 2007, as part of the second-step stock conversion, we provided an additional loan to the ESOP Trust which was used to purchase 4.0%, or 736,000 shares, of the 18,400,000 shares of common stock sold in the offering. The 2002 and 2007 loans bear interest equal to 8.0% and provide for annual payments of interest and principal. | |||||||||
At December 31, 2013, the remaining principal balance is payable as follows: | |||||||||
Year Ending | |||||||||
December 31, | Amount | ||||||||
(In thousands) | |||||||||
2014 | $ | 447 | |||||||
2015 | 447 | ||||||||
2016 | 447 | ||||||||
2017 | 447 | ||||||||
2018 | 447 | ||||||||
Thereafter | 7,034 | ||||||||
$ | 9,269 | ||||||||
We have committed to make contributions to the ESOP sufficient to support the debt service of the loans. The loans are secured by the shares purchased, which are held in a suspense account for allocation among the participants as the loans are paid. Total compensation expense applicable to the ESOP amounted to $599,000, $628,000 and $694,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Shares held by the ESOP include the following at December 31, 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Allocated | 662,013 | 624,823 | |||||||
Committed to be allocated | 81,803 | 84,261 | |||||||
Unallocated | 1,120,096 | 1,201,899 | |||||||
1,863,912 | 1,910,983 | ||||||||
Cash dividends declared and received on allocated shares are allocated to participants and charged to retained earnings. Cash dividends declared and received on unallocated shares are held in suspense and are applied to repay the outstanding debt of the ESOP. The fair value of unallocated shares was $8.4 million and $8.7 million at December 31, 2013 and 2012, respectively. ESOP shares are considered outstanding for earnings per share calculations as they are committed to be allocated. Unallocated ESOP shares are excluded from earnings per share calculations. The cost of unearned shares to be allocated to ESOP participants for future services not yet performed is reflected as a reduction of shareholders’ equity. |
Retirement_Plans_and_Employee_
Retirement Plans and Employee Benefits | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Retirement Plans and Employee Benefits | ' | ||||||||||||||||
9. RETIREMENT PLANS AND EMPLOYEE BENEFITS | |||||||||||||||||
Pension Plan - We provide a defined benefit pension plan for eligible employees (the “Plan”). Employees must work a minimum of 1,000 hours per year to be eligible for the Plan. Eligible employees become vested in the Plan after five years of service. | |||||||||||||||||
The following table provides information for the Plan at or for the years ended December 31: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at beginning of year | $ | 18,752 | $ | 18,326 | $ | 16,191 | |||||||||||
Service cost | 1,170 | 1,094 | 989 | ||||||||||||||
Interest | 763 | 800 | 890 | ||||||||||||||
Actuarial (gain) loss | (1,540 | ) | 27 | 401 | |||||||||||||
Benefits paid | (106 | ) | (1,495 | ) | (145 | ) | |||||||||||
Benefit obligation at end of year | 19,039 | 18,752 | 18,326 | ||||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 12,200 | 11,377 | 10,950 | ||||||||||||||
Actual return (loss) on plan assets | 992 | 818 | (28 | ) | |||||||||||||
Employer contribution | 725 | 1,500 | 600 | ||||||||||||||
Benefits paid | (106 | ) | (1,495 | ) | (145 | ) | |||||||||||
Fair value of plan assets at end of year | 13,811 | 12,200 | 11,377 | ||||||||||||||
Funded status and accrued benefit at end of year | $ | 5,228 | $ | 6,552 | $ | 6,949 | |||||||||||
Accumulated benefit obligation at end of year | $ | 13,192 | $ | 13,297 | $ | 11,964 | |||||||||||
The following actuarial assumptions were used in determining the pension benefit obligation: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Discount rate | 5 | % | 4 | % | |||||||||||||
Rate of compensation increase | 4 | 4 | |||||||||||||||
Net pension cost includes the following components for the years ended December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 1,170 | $ | 1,094 | $ | 989 | |||||||||||
Interest cost | 763 | 800 | 890 | ||||||||||||||
Expected return on assets | (948 | ) | (867 | ) | (876 | ) | |||||||||||
Amortization of transition asset | (12 | ) | (12 | ) | (12 | ) | |||||||||||
Amortization of actuarial loss | 117 | 175 | 116 | ||||||||||||||
Net periodic pension cost | $ | 1,090 | $ | 1,190 | $ | 1,107 | |||||||||||
The following actuarial assumptions were used in determining the service costs for the years ended December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rate | 4 | % | 4.5 | % | 5.5 | % | |||||||||||
Expected return on plan assets | 8 | 8 | 8 | ||||||||||||||
Rate of compensation increase | 4 | 4 | 5 | ||||||||||||||
The fair value of major categories of our pension plan assets are summarized below: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Plan Assets | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(In thousands) | |||||||||||||||||
Large U.S. equity | $ | - | $ | 3,325 | $ | - | $ | 3,325 | |||||||||
Small/mid U.S. equity | - | 831 | - | 831 | |||||||||||||
International equity | - | 1,394 | - | 1,394 | |||||||||||||
Balanced/asset allocation | - | 693 | - | 693 | |||||||||||||
Short-term fixed income | - | 1,519 | - | 1,519 | |||||||||||||
Fixed income | - | 6,049 | - | 6,049 | |||||||||||||
$ | - | $ | 13,811 | $ | - | $ | 13,811 | ||||||||||
31-Dec-12 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(In thousands) | |||||||||||||||||
Large U.S. equity | $ | - | $ | 2,987 | $ | - | $ | 2,987 | |||||||||
Small/mid U.S. equity | - | 755 | - | 755 | |||||||||||||
International equity | - | 1,286 | - | 1,286 | |||||||||||||
Balanced/asset allocation | - | 603 | - | 603 | |||||||||||||
Short-term fixed income | - | 711 | - | 711 | |||||||||||||
Fixed income | - | 5,858 | - | 5,858 | |||||||||||||
$ | - | $ | 12,200 | $ | - | $ | 12,200 | ||||||||||
Plan assets are all measured at fair value in Level 2 are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. | |||||||||||||||||
The asset or liability fair value measurement level within fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The plan reports bonds and other obligations, short-term investments and equity securities at fair value based on published quotations. Collective funds are valued in accordance with valuations provided by such Funds, which generally value marketable equity securities at the last reported sales price on the valuation date and other investments at fair value, as determined by each Fund’s manager. | |||||||||||||||||
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. Furthermore, although the plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | |||||||||||||||||
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value: | |||||||||||||||||
Year Ended | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
Balance at beginning of year | $ | 844 | |||||||||||||||
Unrealized appreciation | - | ||||||||||||||||
Reductions for assets transferred during the year | (844 | ) | |||||||||||||||
Balance at end of year | $ | - | |||||||||||||||
We had no Level 3 investments in 2013. | |||||||||||||||||
The defined benefit plan offers a mixture of fixed income, equity and real assets as the underlying investment structure for its retirement structure for the pension plan. The target allocation mix for the pension plan for 2013 was an equity-based investment deployment of 40% of total portfolio assets based on advice received from an external advisory firm with confirmation by the Bank’s Investment Committee. The remainder of the portfolio is allocated to fixed income at 50% and other real assets up to 10% of total assets. The assets of the plan were transferred to a new third-party provider during 2012 and were allocated to similar fund categories within such provider’s platform. The investment objective is to diversify investments across a spectrum of investment types to limit risks from large market swings and to provide anticipated stabilized investment returns. Trustees of the Plan select investment managers for the portfolio and a second investment advisory firm is retained to provide allocation analysis. The overall investment objective is to diversify equity investments across a spectrum of types, small cap, large cap and international, along with investment styles such as growth and value. | |||||||||||||||||
We estimate that the benefits to be paid from the pension plan for years ended December 31 are as follows: | |||||||||||||||||
Year | Benefit Payments to Participants | ||||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | 1,210 | |||||||||||||||
2015 | 863 | ||||||||||||||||
2016 | 1,878 | ||||||||||||||||
2017 | 595 | ||||||||||||||||
2018 | 1,120 | ||||||||||||||||
In aggregate for 2019 – 2023 | 5,418 | ||||||||||||||||
We have not yet determined the amount of the contribution we expect to make to the plan during the fiscal year ending December 31, 2014. | |||||||||||||||||
Postretirement Benefits - We provided postretirement life insurance benefits to employees based on the employee’s salary at time of retirement. As of December 31, 2013 and 2012; the accrued liability recorded in other liabilities on the consolidated balance sheets amounted to $217,000 and $301,000, respectively. Total expense associated with this plan amounted to $27,000 for the year ended 2013, $29,000 for the year ended 2012 and $25,000 for the year ended December 31, 2011. | |||||||||||||||||
401(k) - Employees are eligible to participate in a 401(k) plan. We make a matching contribution of 50% with respect to the first 6% of each participant’s annual earnings contributed to the plan. Our contributions to the plan were $231,000, $214,000 and $205,000 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging Activities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Derivative Instruments And Hedging Activities | ' | ||||||||||||||||||||
10. DERIVATES AND HEDGING ACTIVITIES | |||||||||||||||||||||
Risk Management Objective of Using Derivatives | |||||||||||||||||||||
We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our assets and liabilities and the use of derivative financial instruments. Specifically, we entered 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. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to certain variable rate loan assets and variable rate borrowings. | |||||||||||||||||||||
Fair Values of Derivative Instruments on the Balance Sheet | |||||||||||||||||||||
The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of December 31, 2013. | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||
Location | Location | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | Other Assets | $ | 1,755 | N/A | - | ||||||||||||||||
Total derivatives designated as hedging instruments | $ | 1,755 | - | ||||||||||||||||||
At December 31, 2013, we held no derivatives that were not designated as hedging instruments. We had no derivative financial instruments at December 31, 2012. | |||||||||||||||||||||
Cash Flow Hedges of Interest Rate Risk | |||||||||||||||||||||
Our objectives in using interest rate derivatives are to add stability to interest income and expense and to manage our exposure to interest rate movements. To accomplish this objective, we entered into interest rate swaps in September 2013 as part of our interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for our making fixed payments. | |||||||||||||||||||||
The following table presents information about our cash flow hedges at December 31, 2013: | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Notional | Average | Weighted Average Rate | Estimated Fair | ||||||||||||||||||
Amount | Maturity | Received | Paid | Value | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||||
Interest rate swaps on FHLBB borrowings | $ | 20,000 | 3.8 | 0.24 | % | 1.17 | % | $ | 40 | ||||||||||||
Forward starting interest rate swaps on FHLBB borrowings | 135,000 | 7.2 | - | 2.93 | % | 1,715 | |||||||||||||||
Total cash flow hedges | $ | 155,000 | 6.8 | $ | 1,755 | ||||||||||||||||
The five forward-starting interest rate swaps will become effective in 2014, 2015, and 2016 with notional amounts of $20.0 million, $47.5 million and $67.5 million, respectively. | |||||||||||||||||||||
For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. We assess the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. We did not recognize any hedge ineffectiveness in earnings in 2013. | |||||||||||||||||||||
We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of six years (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). | |||||||||||||||||||||
Amounts reported in accumulated other comprehensive loss related to these derivatives are reclassified to interest expense as interest payments are made on our rate sensitive assets/liabilities. During the period ended December 31, 2013, we had no reclassifications to interest expense. During the next 12 months, we estimate that $239,000 will be reclassified as an increase in interest expense. | |||||||||||||||||||||
The table below presents the pre-tax net gain of our cash flow hedges for the period indicated. | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Effective Portion: | (In thousands) | ||||||||||||||||||||
Amount of gain recognized in OCI | $ | 1,755 | |||||||||||||||||||
During the year ended December 31, 2013, no gains or losses were reclassified from accumulated other comprehensive loss into income for ineffectiveness on cash flow hedges. | |||||||||||||||||||||
Credit-risk-related Contingent Features | |||||||||||||||||||||
By using derivative financial instruments, we expose the Company to credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative is negative, we owe the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that we believe to be creditworthy and by limiting the amount of exposure to each counterparty. | |||||||||||||||||||||
We have agreements with our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as well capitalized, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements. Certain of our agreements with our derivative counterparties contain provisions where if a formal administrative action by a federal or state regulatory agency occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. | |||||||||||||||||||||
As of December 31, 2013, we had no derivatives in a net liability position. |
Regulatory_Capital
Regulatory Capital | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Regulatory Capital | ' | ||||||||||||||||||||||||
11. REGULATORY CAPITAL | |||||||||||||||||||||||||
The Bank is subject to various regulatory capital requirements administered by the Office of Comptroller of the Currency (the “OCC”). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to savings and loan holding companies. | |||||||||||||||||||||||||
To ensure capital adequacy, the OCC regulations establish quantitative measures which require the Bank and Westfield Financial to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets, Tier 1 capital to average assets and of tangible capital to tangible assets. We believe, as of December 31, 2013 and 2012, that we met all capital adequacy requirements to which we are subject. Westfield Financial’s and the Bank’s capital ratios as of December 31, 2013 and 2012 are set forth in the following table. | |||||||||||||||||||||||||
As of December 31, 2013, the most recent notification from the OCC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Bank must maintain minimum total risk-based, Tier 1 risk based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category. | |||||||||||||||||||||||||
Actual | Minimum for Capital | Minimum To Be Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized Under Prompt | ||||||||||||||||||||||||
Corrective Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 164,605 | 21.17 | % | $ | 62,207 | 8 | % | N/A | - | |||||||||||||||
Bank | 157,484 | 20.3 | 62,073 | 8 | $ | 77,591 | 10 | % | |||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 157,119 | 20.21 | 31,104 | 4 | N/A | - | ||||||||||||||||||
Bank | 149,965 | 19.33 | 31,036 | 4 | 46,555 | 6 | |||||||||||||||||||
Tier 1 Capital (to Adjusted Total Assets): | |||||||||||||||||||||||||
Consolidated | $ | 157,119 | 12.28 | 51,193 | 4 | N/A | - | ||||||||||||||||||
Bank | 149,965 | 11.73 | 51,121 | 4 | 63,901 | 5 | |||||||||||||||||||
Tangible Equity (to Tangible Assets): | |||||||||||||||||||||||||
Consolidated | N/A | - | N/A | - | N/A | - | |||||||||||||||||||
Bank | 149,965 | 11.73 | 19,170 | 1.5 | N/A | - | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 186,084 | 25.41 | % | $ | 58,586 | 8 | % | N/A | - | |||||||||||||||
Bank | 176,904 | 24.24 | 58,390 | 8 | $ | 72,988 | 10 | % | |||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | 178,201 | 24.33 | 29,293 | 4 | N/A | - | |||||||||||||||||||
Bank | 169,191 | 23.18 | 29,195 | 4 | 43,793 | 6 | |||||||||||||||||||
Tier 1 Capital (to Adjusted Total Assets): | |||||||||||||||||||||||||
Consolidated | 178,201 | 13.91 | 51,239 | 4 | N/A | - | |||||||||||||||||||
Bank | 169,191 | 13.25 | 51,090 | 4 | 63,862 | 5 | |||||||||||||||||||
Tangible Equity (to Tangible Assets): | |||||||||||||||||||||||||
Consolidated | N/A | - | N/A | - | N/A | - | |||||||||||||||||||
Bank | 169,191 | 13.25 | 19,159 | 1.5 | N/A | - | |||||||||||||||||||
The following is a reconciliation of our GAAP capital to regulatory Tier 1 and total capital: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Consolidated GAAP capital | $ | 154,144 | $ | 189,187 | |||||||||||||||||||||
Unrealized losses (gains) on certain available-for-sale | |||||||||||||||||||||||||
securities, net of tax | 2,706 | (13,253 | ) | ||||||||||||||||||||||
Unrealized loss on defined benefit pension plan | 1,427 | 2,558 | |||||||||||||||||||||||
Accumulated net gain on cash flow hedges | (1,158 | ) | - | ||||||||||||||||||||||
Disallowed deferred tax asset | - | (291 | ) | ||||||||||||||||||||||
Tier 1 capital | 157,119 | 178,201 | |||||||||||||||||||||||
Unrealized gains on certain available-for-sale equity securities | 27 | 89 | |||||||||||||||||||||||
Allowance for loan losses | 7,459 | 7,794 | |||||||||||||||||||||||
Total regulatory capital | $ | 164,605 | $ | 186,084 | |||||||||||||||||||||
On September 17, 2013, the Board of Directors authorized the commencement of our current stock repurchase program, authorizing the repurchase of up to 1,037,000 shares, or 5% of our outstanding shares of common stock. There were 433,954 shares available to be purchased under the repurchase program as of December 31, 2013. | |||||||||||||||||||||||||
We are subject to dividend restrictions imposed by various regulators, including a limitation on the total of all dividends that the Bank may pay to the Company in any calendar year, to an amount that shall not exceed the Bank’s net income for the current year, plus its net income retained for the two previous years, without regulatory approval. In addition, the Bank may not declare or pay dividends on, and we may not repurchase, any of our shares of common stock if the effect thereof would cause shareholders’ equity to be reduced below applicable regulatory capital maintenance requirements or if such declaration, payment or repurchase would otherwise violate regulatory requirements. At December 31, 2013 and 2012, the Bank had no retained earnings available for payment of dividends without prior regulatory approval. The Bank will be prohibited from paying cash dividends to us to the extent that any such payment would reduce the Bank’s capital below required capital levels. Accordingly, $62.1 million and $58.4 million of our equity in the net assets of the Bank was restricted at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The only funds available for the payment of dividends on our capital stock will be cash and cash equivalents held by us, dividends paid from the Bank to us, and borrowings. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
12. INCOME TAXES | |||||||||||||
Income taxes consist of the following: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current tax provision: | |||||||||||||
Federal | $ | 795 | $ | 1,856 | $ | 1,179 | |||||||
State | 96 | 215 | 106 | ||||||||||
Total | 891 | 2,071 | 1,285 | ||||||||||
Deferred tax provision: | |||||||||||||
Federal | 980 | 184 | 21 | ||||||||||
State | - | 1 | - | ||||||||||
Total | 980 | 185 | 21 | ||||||||||
Total | $ | 1,871 | $ | 2,256 | $ | 1,306 | |||||||
The reasons for the differences between the statutory federal income tax rate and the effective rates are summarized below: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal income tax rate | 34 | % | 34 | % | 34 | % | |||||||
Increase (decrease) resulting from: | |||||||||||||
State taxes, net of federal tax benefit | 0.7 | 1.7 | 1 | ||||||||||
Tax exempt income | (4.7 | ) | (6.4 | ) | (9.3 | ) | |||||||
Bank-owned life insurance (BOLI) | (6.1 | ) | (5.7 | ) | (7.1 | ) | |||||||
Gain on life insurance proceeds | (3.3 | ) | (0.3 | ) | - | ||||||||
Tax benefit of stock option buyout | (2.1 | ) | - | - | |||||||||
Surrender of BOLI policies | - | 1.9 | - | ||||||||||
Other, net | 3.2 | 1.3 | (0.4 | ) | |||||||||
Effective tax rate | 21.7 | % | 26.5 | % | 18.2 | % | |||||||
Cash paid for income taxes for the years ended December 31, 2013, 2012 and 2011 was $941,000, $2.6 million and $16,000, respectively. | |||||||||||||
The tax effects of each item that gives rise to deferred taxes are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 2,536 | $ | 2,650 | |||||||||
Employee benefit and share-based compensation plans | 2,071 | 2,970 | |||||||||||
Net unrealized loss on securities available for sale | 837 | - | |||||||||||
Net unrealized loss on securities held to maturity | 599 | - | |||||||||||
Defined benefit plan | 735 | 1,318 | |||||||||||
Other-than-temporary impairment write-down | 110 | 110 | |||||||||||
Other | 334 | 245 | |||||||||||
7,222 | 7,293 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Net unrealized gain on derivative and hedging activity | (597 | ) | - | ||||||||||
Net unrealized gain on securities available for sale | - | (6,935 | ) | ||||||||||
Deferred loan fees | (117 | ) | (179 | ) | |||||||||
Other | (174 | ) | (56 | ) | |||||||||
(888 | ) | (7,170 | ) | ||||||||||
Net deferred tax asset | $ | 6,334 | $ | 123 | |||||||||
The federal income tax reserve for loan losses at the Bank’s base year is $5.8 million. If any portion of the reserve is used for purposes other than to absorb loan losses, approximately 150% of the amount actually used, limited to the amount of the reserve, would be subject to taxation in the fiscal year in which used. As the Bank intends to use the reserve solely to absorb loan losses, a deferred tax liability of $2.4 million has not been provided. | |||||||||||||
We do not have any uncertain tax positions at December 31, 2013 or 2012 which require accrual or disclosure. We record interest and penalties as part of income tax expense. Interest of $9,000 was recorded for the year ended December 31, 2013. No interest or penalties were recorded for the years ended December 31, 2012 and 2011. | |||||||||||||
Our income tax returns are subject to review and examination by federal and state tax authorities. We are currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2010 through 2013. The years open to examination by state taxing authorities vary by jurisdiction; however, no years prior to 2010 are open. |
Transactions_with_Directors_an
Transactions with Directors and Executive Officers | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Transactions with Directors and Executive Officers | ' | ||||||||
13. TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS | |||||||||
We have had, and expect to have in the future, loans with our directors and executive officers. Such loans, in our opinion, do not include more than the normal risk of collectability or other unfavorable features. Following is a summary of activity for such loans: | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Balance at beginning of year | $ | 16,264 | $ | 19,518 | |||||
Principal distributions | 2,713 | 1,063 | |||||||
Repayments of principal | (2,635 | ) | (4,317 | ) | |||||
Change in related party status | (10,117 | ) | - | ||||||
Balance at end of year | $ | 6,225 | $ | 16,264 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies | ' | ||||||||
14. COMMITMENTS AND CONTINGENCIES | |||||||||
In the normal course of business, various commitments and contingent liabilities are outstanding, such as standby letters of credit and commitments to extend credit with off-balance-sheet risk that are not reflected in the consolidated financial statements. Financial instruments with off-balance-sheet risk involve elements of credit, interest rate, liquidity and market risk. | |||||||||
We do not anticipate any significant losses as a result of these transactions. The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Commitments to extend credit: | |||||||||
Unused lines of credit | $ | 99,899 | $ | 86,474 | |||||
Loan commitments | 10,260 | 14,984 | |||||||
Existing construction loan agreements | 14,667 | 22,641 | |||||||
Standby letters of credit | 1,728 | 2,190 | |||||||
We use the same credit policies in making commitments and conditional obligations as for on balance sheet instruments. | |||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. | |||||||||
During 2012, we entered into a risk participation agreement (“RPA”) with another financial institution. The RPA is a guarantee to share credit risk associated with an interest rate swap on a participation loan in the event of counterparty default. As such, we accept a portion of the credit risk in order to participate in the loan and we receive a one-time fee. The interest rate swap is collateralized (generally by real estate or business assets) by us and the third party, which limits the credit risk associated with the RPA. Per the terms of the RPA, we must pledge collateral equal to our exposure for the interest rate swap. We monitor overall collateral as part of our off-balance sheet liability analysis, and at December 31, 2013, believe sufficient collateral is available to cover potential swap losses. The term of the RPA, which correspond to the term of the underlying swap, is 10 years. At December 31, 2013, the fair value of the interest rate swap was $632,000 of which we guarantee 50% of the amount in a default event. The maximum potential future payment guaranteed by us cannot be readily estimated, but is dependent upon the fair value of the interest rate swap and the probability of a default event. If an event of default on all contracts had occurred at December 31, 2013, we would have been required to make payments of approximately $316,000. | |||||||||
Standby letters of credit are written conditional commitments issued by us that guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. | |||||||||
At December 31, 2013, outstanding commitments to extend credit totaled $126.6 million, with $27.0 million in fixed rate commitments with interest rates ranging from 2.75% to 12.00% and $99.6 million in variable rate commitments. At December 31, 2012, outstanding commitments to extend credit totaled $126.3 million, with $35.5 million in fixed rate commitments with interest rates ranging from 3.50% to 12.00% and $91.3 million in variable rate commitments. | |||||||||
In the ordinary course of business, we are party to various legal proceedings, none of which, in our opinion, will have a material effect on our consolidated financial position or results of operations. | |||||||||
We lease facilities and certain equipment under cancelable and non-cancelable leases expiring in various years through the year 2046. Certain of the leases provide for renewal periods for up to forty years at our discretion. Rent expense under operating leases was $671,000, $625,000, and $591,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||
Aggregate future minimum rental payments under the terms of non-cancelable operating leases at December 31, 2013, are as follows: | |||||||||
Year Ending December 31, | Amount | ||||||||
(In thousands) | |||||||||
2014 | $ | 659 | |||||||
2015 | 630 | ||||||||
2016 | 508 | ||||||||
2017 | 406 | ||||||||
2018 | 370 | ||||||||
Thereafter | 9,073 | ||||||||
$ | 11,646 | ||||||||
Employment and change of control agreements | |||||||||
We have entered into employment and change of control agreements with certain senior officers. The initial term of the employment agreements is for three years subject to separate one-year extensions as approved by the Board of Directors at the end of each applicable fiscal year. Each employment agreement provides for minimum annual salaries, discretionary cash bonuses and other fringe benefits as well as severance benefits upon certain terminations of employment that are not for cause. The change of control agreements expire one year following a notice of non-extension and only provide for severance benefits upon certain terminations of employment that are not for cause and that are related to a change of control of the Company or the Bank. |
Concentrations_of_Credit_Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2013 | |
Concentrations of Credit Risk | ' |
15. CONCENTRATIONS OF CREDIT RISK | |
Most of our loans consist of residential and commercial real estate loans located in western Massachusetts. As of December 31, 2013 and 2012, our residential and commercial related real estate loans represented 78.3% and 78.4% of total loans, respectively. Our policy for collateral requires that the amount of the loan may not exceed 100% and 85% of the appraised value of the property for residential and commercial real estate, respectively, at the date the loan is granted. For residential loans, in cases where the loan exceeds 80%, private mortgage insurance is typically obtained for that portion of the loan in excess of 80% of the appraised value of the property. |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value of Assets and Liabilities | ' | ||||||||||||||||||||
16. FAIR VALUE OF ASSETS AND LIABLITIES | |||||||||||||||||||||
Determination of Fair Value | |||||||||||||||||||||
We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for our various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. | |||||||||||||||||||||
Methods and assumptions for valuing our financial instruments are set forth below. Estimated fair values are calculated based on the value without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications or estimated transaction cost. | |||||||||||||||||||||
Cash and cash equivalents - The carrying amounts of cash and short-term instruments approximate fair values based on the short-term nature of the assets. | |||||||||||||||||||||
Interest-bearing deposits in banks - The carrying amounts of interest-bearing deposits maturing within ninety days approximate their fair values. Fair values of other interest-bearing deposits are estimated using discounted cash flow analyses based on current market rates for similar types of deposits. | |||||||||||||||||||||
Securities and mortgage-backed securities - The securities measured at fair value in Level 1 are based on quoted market prices in an active exchange market. These securities include marketable equity securities. All other securities are measured at fair value in Level 2 and are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. These securities include government-sponsored enterprise obligations, state and municipal obligations, residential mortgage-backed securities guaranteed and sponsored by the U.S. government or an agency thereof, and private-label residential mortgage-backed securities. At December 31, 2013 and December 31, 2012, all fair value measurements are obtained from a third-party pricing service and are not adjusted by management. | |||||||||||||||||||||
Federal Home Loan Bank and other stock - These investments are carried at cost which is their estimated redemption value. | |||||||||||||||||||||
Loans receivable - For adjustable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans (e.g., commercial real estate and investment property mortgage loans, commercial and industrial loans and residential real estate) are estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. | |||||||||||||||||||||
Accrued interest - The carrying amounts of accrued interest approximate fair value. | |||||||||||||||||||||
Deposit liabilities - The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. | |||||||||||||||||||||
Short-term borrowings and long-term debt - The fair values of our debt instruments are estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements. | |||||||||||||||||||||
Interest rate swaps - The valuation of our interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. We have determined that the majority of the inputs used to value our interest rate derivatives fall within Level 2 of the fair value hierarchy. | |||||||||||||||||||||
Commitments to extend credit - The stated value of commitments to extend credit approximates fair value as the current interest rates for similar commitments do not differ significantly. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. Such differences are not considered significant. | |||||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||
Assets measured at fair value on a recurring basis are summarized below: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Securities available for sale: | (In thousands) | ||||||||||||||||||||
Government-sponsored residential mortgage-backed securities | $ | - | $ | 132,372 | $ | - | $ | 132,372 | |||||||||||||
U.S. government guaranteed residential mortgage-backed securities | - | 46,328 | - | 46,328 | |||||||||||||||||
Corporate bonds | - | 27,389 | - | 27,389 | |||||||||||||||||
State and municipal bonds | - | 18,897 | - | 18,897 | |||||||||||||||||
Government-sponsored enterprise obligations | - | 10,700 | - | 10,700 | |||||||||||||||||
Mutual funds | 5,919 | - | - | 5,919 | |||||||||||||||||
Common and preferred stock | 1,599 | - | - | 1,599 | |||||||||||||||||
Total securities available for sale | 7,518 | 235,686 | - | 243,204 | |||||||||||||||||
Interest rate swaps | - | 1,755 | - | 1,755 | |||||||||||||||||
Total assets | $ | 7,518 | $ | 237,441 | $ | - | $ | 244,959 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Securities available for sale: | (In thousands) | ||||||||||||||||||||
Government-sponsored residential mortgage-backed securities | $ | - | $ | 328,023 | $ | - | $ | 328,023 | |||||||||||||
U.S. government guaranteed residential mortgage-backed securities | - | 130,735 | - | 130,735 | |||||||||||||||||
Private-label residential mortgage-backed securities | - | 52,337 | - | 52,337 | |||||||||||||||||
State and municipal bonds | - | 40,846 | - | 40,846 | |||||||||||||||||
Government-sponsored enterprise obligations | - | 62,060 | - | 62,060 | |||||||||||||||||
Mutual funds | 6,046 | - | - | 6,046 | |||||||||||||||||
Common and preferred stock | 1,460 | - | - | 1,460 | |||||||||||||||||
Total assets | $ | 7,506 | $ | 614,001 | $ | - | $ | 621,507 | |||||||||||||
There were no transfers to or from Level 1 and 2 for assets measured at fair value on a recurring basis during the years ended December 31, 2013 and 2012. There were no interest rate swaps measured at fair value at December 31, 2012. | |||||||||||||||||||||
Assets Measured at Fair Value on a Non-recurring Basis | |||||||||||||||||||||
We may also be required, from time to time, to measure certain other financial assets on a nonrecurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets as of December 31, 2013 and 2012. | |||||||||||||||||||||
At | Year Ended | ||||||||||||||||||||
31-Dec-13 | 31-Dec-13 | ||||||||||||||||||||
Total | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Losses | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | - | $ | - | $ | 2,069 | $ | (31 | ) | ||||||||||||
Total assets | $ | - | $ | - | $ | 2,069 | $ | (31 | ) | ||||||||||||
At | Year Ended | ||||||||||||||||||||
31-Dec-12 | 31-Dec-12 | ||||||||||||||||||||
Total | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Losses | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | - | $ | - | $ | 1,229 | $ | 160 | |||||||||||||
Other real estate owned | - | - | 964 | (166 | ) | ||||||||||||||||
Total assets | $ | - | $ | - | $ | 2,193 | $ | (6 | ) | ||||||||||||
The amount of loans represents the carrying value and related write-down and valuation allowance of impaired loans for which adjustments are based on the estimated fair value of the underlying collateral. The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on real estate appraisals performed by independent licensed or certified appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management will discount appraisals as deemed necessary based on the date of the appraisal and new information deemed relevant to the valuation. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The resulting losses were recognized in earnings through the provision for loan losses. | |||||||||||||||||||||
The amount of other real estate owned represents the carrying value of the collateral based on the appraised value of the underlying collateral using the market approach less selling costs. | |||||||||||||||||||||
We do not measure any liabilities at fair value on a recurring or non-recurring basis on the consolidated balance sheets. | |||||||||||||||||||||
Summary of Fair Values of Financial Instruments | |||||||||||||||||||||
The estimated fair values of our financial instruments are as follows: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Value | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 19,742 | $ | 19,742 | $ | - | $ | - | $ | 19,742 | |||||||||||
Securities available for sale | 243,204 | 7,518 | 237,441 | - | 243,204 | ||||||||||||||||
Securities held to maturity | 295,013 | - | 282,555 | - | 282,555 | ||||||||||||||||
Federal Home Loan Bank of Boston and other restricted stock | 15,631 | - | - | 15,631 | 15,631 | ||||||||||||||||
Loans - net | 629,968 | - | - | 631,417 | 631,417 | ||||||||||||||||
Accrued interest receivable | 4,201 | - | - | 4,201 | 4,201 | ||||||||||||||||
Derivative assets | 1,755 | - | 1,755 | - | 1,755 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | 817,112 | - | - | 819,109 | 819,109 | ||||||||||||||||
Short-term borrowings | 48,197 | - | 48,197 | - | 48,197 | ||||||||||||||||
Long-term debt | 248,377 | - | 251,678 | - | 251,678 | ||||||||||||||||
Accrued interest payable | 392 | - | - | 392 | 392 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Value | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 11,761 | $ | 11,761 | $ | - | $ | - | $ | 11,761 | |||||||||||
Securities available for sale | 621,507 | 7,506 | 614,001 | - | 621,507 | ||||||||||||||||
Federal Home Loan Bank of Boston and other restricted stock | 14,269 | - | - | 14,269 | 14,269 | ||||||||||||||||
Loans - net | 587,124 | - | - | 610,695 | 610,695 | ||||||||||||||||
Accrued interest receivable | 4,602 | - | - | 4,602 | 4,602 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | 753,413 | - | - | 757,450 | 757,450 | ||||||||||||||||
Short-term borrowings | 69,934 | - | 69,936 | - | 69,936 | ||||||||||||||||
Long-term debt | 278,861 | - | 290,536 | - | 290,536 | ||||||||||||||||
Accrued interest payable | 471 | - | - | 471 | 471 | ||||||||||||||||
Limitations - Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Where quoted market prices are not available, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment. Changes in assumptions could significantly affect the estimates. |
Segment_Information
Segment Information | 12 Months Ended |
Dec. 31, 2013 | |
Segment Information | ' |
17. SEGMENT INFORMATION | |
We have one reportable segment, “Community Banking.” All of our activities are interrelated, and each activity is dependent and assessed based on how each of the activities supports the others. For example, commercial lending is dependent upon the ability of the Bank to fund itself with retail deposits and other borrowings and to manage interest rate and credit risk. This situation is also similar for consumer and residential mortgage lending. Accordingly, all significant operating decisions are based upon our analysis as one operating segment or unit. | |
We operate only in the U.S. domestic market, primarily in western Massachusetts. For the years ended December 31, 2013, 2012 and 2011, there is no customer that accounted for more than 10% of our revenue. |
Condensed_Parent_Company_Finan
Condensed Parent Company Financial Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Parent Company Financial Statements | ' | ||||||||||||
18. CONDENSED PARENT COMPANY FINANCIAL STATEMENTS | |||||||||||||
The condensed balance sheets of the parent company are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
ASSETS: | |||||||||||||
Cash equivalents | $ | 158 | $ | 572 | |||||||||
Securities available for sale | 1,599 | 2,772 | |||||||||||
Investment in subsidiaries | 146,951 | 179,784 | |||||||||||
ESOP loan receivable | 9,269 | 9,716 | |||||||||||
Other assets | 5,912 | 6,142 | |||||||||||
TOTAL ASSETS | 163,889 | 198,986 | |||||||||||
LIABILITIES: | |||||||||||||
ESOP loan payable | 9,269 | 9,716 | |||||||||||
Other liabilities | 476 | 83 | |||||||||||
EQUITY | 154,144 | 189,187 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 163,889 | $ | 198,986 | |||||||||
The condensed statements of income for the parent company are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
INCOME: | |||||||||||||
Dividends from subsidiaries | $ | 26,964 | $ | 42,372 | $ | 21,661 | |||||||
Interest income from securities | 16 | 68 | 98 | ||||||||||
ESOP loan interest income | 777 | 813 | 848 | ||||||||||
Gain (loss) on sale of securities, net | 3 | - | 134 | ||||||||||
Other income | - | - | 1 | ||||||||||
Total income | 27,760 | 43,253 | 22,742 | ||||||||||
OPERATING EXPENSE: | |||||||||||||
Salaries and employee benefits | 879 | 2,262 | 2,670 | ||||||||||
ESOP interest expense | 777 | 813 | 848 | ||||||||||
Other | 586 | 511 | 762 | ||||||||||
Total operating expense | 2,242 | 3,586 | 4,280 | ||||||||||
INCOME BEFORE EQUITY IN UNDISTRIBUTED | |||||||||||||
INCOME OF SUBSIDIARIES AND INCOME TAXES | 25,518 | 39,667 | 18,462 | ||||||||||
EQUITY IN UNDISTRIBUTED LOSS OF | (19,073 | ) | (34,130 | ) | (13,237 | ) | |||||||
SUBSIDIARIES | |||||||||||||
NET INCOME BEFORE TAXES | 6,445 | 5,537 | 5,225 | ||||||||||
INCOME TAX BENEFIT | (311 | ) | (717 | ) | (649 | ) | |||||||
NET INCOME | $ | 6,756 | $ | 6,254 | $ | 5,874 | |||||||
The condensed statements of cash flows of the parent company are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
OPERATING ACTIVITIES: | |||||||||||||
Net income | $ | 6,756 | $ | 6,254 | $ | 5,874 | |||||||
Dividends in excess of earnings of subsidiaries | 19,073 | 34,130 | 13,237 | ||||||||||
Net amortization of premiums and discounts on securities | - | - | 1 | ||||||||||
Net realized securities gains | (3 | ) | - | (134 | ) | ||||||||
Change in other liabilities | 198 | 36 | (10 | ) | |||||||||
Change in other assets | (487 | ) | (271 | ) | 29 | ||||||||
Other, net | 1,422 | 2,089 | 2,439 | ||||||||||
Net cash provided by operating activities | 26,959 | 42,238 | 21,799 | ||||||||||
INVESTING ACTIVITIES: | |||||||||||||
Purchase of securities | (349 | ) | (1,533 | ) | (1,095 | ) | |||||||
Proceeds from principal collections | 1,307 | 575 | 1 | ||||||||||
Sale of securities | 352 | 566 | 3,299 | ||||||||||
Net cash provided by (used in) investing activities | 1,310 | (392 | ) | 2,205 | |||||||||
FINANCING ACTIVITIES: | |||||||||||||
Cash dividends paid | (5,872 | ) | (10,721 | ) | (14,305 | ) | |||||||
Common stock repurchased | (20,093 | ) | (32,083 | ) | (9,708 | ) | |||||||
Tender offer to purchase outstanding options | (2,151 | ) | - | - | |||||||||
Excess tax expense in connection with tender offer completion | (566 | ) | |||||||||||
Excess tax (shortfall) benefit from share-based compensation | (1 | ) | 144 | (4 | ) | ||||||||
Issuance of common stock to ESOP | - | - | 15 | ||||||||||
Issuance of common stock in connection with stock option exercises | - | 1,041 | 359 | ||||||||||
Repayment of long-term debt | - | (446 | ) | (446 | ) | ||||||||
Net cash used in financing activities | (28,683 | ) | (42,065 | ) | (24,452 | ) | |||||||
NET DECREASE IN CASH AND | |||||||||||||
CASH EQUIVALENTS | (414 | ) | (219 | ) | (448 | ) | |||||||
CASH AND CASH EQUIVALENTS | |||||||||||||
Beginning of year | 572 | 791 | 1,239 | ||||||||||
End of year | $ | 158 | $ | 572 | $ | 791 | |||||||
Supplemental cashflow information: | |||||||||||||
Net cash due to (from) broker for common stock repurchased | 299 | (352 | ) | 352 |
Other_Noninterest_Expense
Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2013 | |
Other Noninterest Expense | ' |
19. OTHER NONINTEREST EXPENSE | |
There is no item that as a component of other noninterest expense exceeded 1% of the aggregate of total interest income and noninterest income for the years ended December 31, 2013, 2012 and 2011. |
Summary_of_Quarterly_Financial
Summary of Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
20. SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||
The following tables present a summary of our quarterly financial information for the periods indicated. The year to date totals may differ slightly due to rounding. | |||||||||||||||||
2013 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Interest and dividend income | $ | 10,349 | $ | 10,246 | $ | 10,348 | $ | 10,089 | |||||||||
Interest expense | 2,679 | 2,609 | 2,520 | 2,482 | |||||||||||||
Net interest and dividend income | 7,670 | 7,637 | 7,828 | 7,607 | |||||||||||||
Provision for loan losses | (235 | ) | (70 | ) | (71 | ) | 120 | ||||||||||
Other noninterest income | 957 | 981 | 1,003 | 1,013 | |||||||||||||
Gain on bank-owned life insurance | - | 563 | - | - | |||||||||||||
Loss on prepayment of borrowings | (1,426 | ) | (1,404 | ) | (540 | ) | - | ||||||||||
Gain on sales of securities, net | 1,427 | 823 | 546 | 330 | |||||||||||||
Noninterest expense | 6,515 | 6,789 | 6,851 | 6,488 | |||||||||||||
Income before income taxes | 2,348 | 1,881 | 2,057 | 2,342 | |||||||||||||
Income tax provision | 566 | 297 | 476 | 533 | |||||||||||||
Net income | $ | 1,782 | $ | 1,584 | $ | 1,581 | $ | 1,809 | |||||||||
Basic earnings per share | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.09 | |||||||||
Diluted earnings per share | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.09 | |||||||||
2012 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Interest and dividend income | $ | 10,715 | $ | 10,910 | $ | 10,853 | $ | 10,626 | |||||||||
Interest expense | 3,298 | 3,183 | 3,150 | 3,032 | |||||||||||||
Net interest and dividend income | 7,417 | 7,727 | 7,703 | 7,594 | |||||||||||||
Provision for loan losses | 220 | 260 | 218 | - | |||||||||||||
Other noninterest income | 968 | 804 | 1,007 | 1,321 | |||||||||||||
Loss on sale of OREO | - | - | - | (1,017 | ) | ||||||||||||
Gain on sales of securities, net | 1,585 | 97 | 174 | 1,051 | |||||||||||||
Noninterest expense | 6,844 | 6,833 | 6,798 | 6,748 | |||||||||||||
Income before income taxes | 2,906 | 1,535 | 1,868 | 2,201 | |||||||||||||
Income tax provision | 567 | 561 | 481 | 647 | |||||||||||||
Net income | $ | 2,339 | $ | 974 | $ | 1,387 | $ | 1,554 | |||||||||
Basic earnings per share | $ | 0.09 | $ | 0.04 | $ | 0.06 | $ | 0.07 | |||||||||
Diluted earnings per share | $ | 0.09 | $ | 0.04 | $ | 0.06 | $ | 0.07 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Nature of Operations and Basis of Presentation | ' | ||||||||||||||||
Nature of Operations and Basis of Presentation - Westfield Financial, Inc. (“Westfield Financial,” “we” or “us”) is a Massachusetts-chartered stock holding company for Westfield Bank, a federally chartered stock savings bank (the “Bank”). | |||||||||||||||||
The Bank’s deposits are insured to the limits specified by the Federal Deposit Insurance Corporation (“FDIC”). The Bank operates 11 banking offices in western Massachusetts and 1 banking office in Granby, Connecticut, and its primary sources of revenue are income from securities and earnings on loans to small and middle-market businesses and to residential property homeowners. | |||||||||||||||||
Elm Street Securities Corporation and WFD Securities Corporation, Massachusetts-chartered security corporations, were formed by Westfield Financial for the primary purpose of holding qualified securities. WB Real Estate Holdings, LLC, a Massachusetts-chartered limited liability company was formed for the primary purpose of holding real property acquired as security for debts previously contracted by the Bank. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation - The consolidated financial statements include the accounts of Westfield Financial, the Bank, Elm Street Securities Corporation, WB Real Estate Holdings and WFD Securities Corporation. All material intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Estimates | ' | ||||||||||||||||
Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses for each. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, other-than-temporary impairment of securities and the valuation of deferred tax assets. | |||||||||||||||||
Reclassifications | ' | ||||||||||||||||
Reclassifications – Amounts in the prior year financial statements are reclassified when necessary to conform to the current year presentation. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents - We define cash on hand, cash due from banks, federal funds sold and interest-bearing deposits having an original maturity of 90 days or less as cash and cash equivalents. We are required to maintain a reserve balance with Bankers Bank Northeast (“BBN”) as part of our coin and currency contract and line of credit with BBN. The required reserve amounted to $975,000 at December 31, 2013 and $925,000 at December 31, 2012. There were no cash reserve requirements for the Federal Reserve Bank of Boston at December 31, 2013 or 2012. | |||||||||||||||||
Securities and Mortgage-Backed Securities | ' | ||||||||||||||||
Securities and Mortgage-Backed Securities - Debt securities, including mortgage-backed securities, which management has the positive intent and ability to hold until maturity are classified as held to maturity and are carried at amortized cost. Securities, including mortgage-backed securities, which have been identified as assets for which there is not a positive intent to hold to maturity are classified as available for sale and are carried at fair value with unrealized gains and losses, net of income taxes, reported as a separate component of comprehensive income/loss. We do not acquire securities and mortgage-backed securities for purposes of engaging in trading activities. | |||||||||||||||||
Realized gains and losses on sales of securities and mortgage-backed securities are computed using the specific identification method and are included in noninterest income on the trade date. The amortization of premiums and accretion of discounts is determined by using the level yield method to the maturity date. | |||||||||||||||||
Derivatives | ' | ||||||||||||||||
Derivatives - The Company enters into interest rate swap agreements as part of the Company’s interest-rate risk management strategy for certain assets and liabilities and not for speculative purposes. Based on the Company’s intended use for the interest rate swaps these are hedging instruments subject to hedge accounting provisions. Cash flow hedges are recorded at fair value in other assets or liabilities within the Company’s balance sheets. Changes in the fair value of these cash flow hedges are initially recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings when the forecasted transaction affects earnings. Any hedge ineffectiveness assessed as part of the Company’s quarterly analysis is recorded directly to earnings. The Company would discontinue hedge accounting if the derivative was not expected to be or ceased to be highly effective as a hedge, and record changes in fair value of the derivative in earnings upon termination of the hedge relationship. | |||||||||||||||||
Other-than-Temporary Impairment of Securities | ' | ||||||||||||||||
Other-than-Temporary Impairment of Securities - On a quarterly basis, we review securities with a decline in fair value below the amortized cost of the investment to determine whether the decline in fair value is temporary or other-than-temporary. Declines in the fair value of marketable equity securities below their cost that are deemed to be other-than-temporary based on the severity and duration of the impairment are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses for securities, impairment is required to be recognized if (1) we intend to sell the security; (2) it is “more likely than not” that we will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that we intend to sell, or more likely than not will be required to sell, the full amount of the other-than-temporary impairment is recognized through earnings. For all other impaired debt securities, credit-related other-than-temporary impairment is recognized through earnings, while non-credit related other-than-temporary impairment is recognized in other comprehensive income/loss, net of applicable taxes. | |||||||||||||||||
Fair Value Hierarchy | ' | ||||||||||||||||
Fair Value Hierarchy - We group our assets generally measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. | |||||||||||||||||
Level 1 – Valuation is based on quoted prices in active markets for identical assets. Level 1 assets generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. | |||||||||||||||||
Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets. | |||||||||||||||||
Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | |||||||||||||||||
Transfers between levels are recognized at the end of a reporting period, if applicable. | |||||||||||||||||
Federal Home Loan Bank of Boston Stock | ' | ||||||||||||||||
Federal Home Loan Bank of Boston Stock - The Bank, as a member of the Federal Home Loan Bank of Boston (“FHLBB”) system, is required to maintain an investment in capital stock of the FHLBB. Based on the redemption provisions of the FHLBB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. Management reviews for impairment based on the ultimate recoverability of the cost basis in the FHLBB stock. As of December 31, 2013, no impairment has been recognized. | |||||||||||||||||
Loans | ' | ||||||||||||||||
Loans - Loans are recorded at the principal amount outstanding, adjusted for charge-offs, unearned premiums and deferred loan fees and costs. Interest on loans is calculated using the effective yield method on daily balances of the principal amount outstanding and is credited to income on the accrual basis to the extent it is deemed collectible. Our general policy is to discontinue the accrual of interest when principal or interest payments are delinquent 90 days or more based on the contractual terms of the loan, or earlier if the loan is considered impaired. Any unpaid amounts previously accrued on these loans are reversed from income. Subsequent cash receipts are applied to the outstanding principal balance or to interest income if, in the judgment of management, collection of the principal balance is not in question. Loans are returned to accrual status when they become current as to both principal and interest and when subsequent performance reduces the concern as to the collectability of principal and interest. Loan fees, discounts and premiums on purchased loans, and certain direct loan origination costs are deferred and the net fee or cost is recognized as an adjustment to interest income over the estimated average lives of the related loans. | |||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||
Allowance for Loan Losses - The allowance for loan losses is established through provisions for loan losses charged to expense. Loans are charged-off against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. | |||||||||||||||||
The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and allocated components, as further described below. | |||||||||||||||||
General component | |||||||||||||||||
The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, commercial and industrial, and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: trends in delinquencies and nonperforming loans; trends in volume and terms of loans; internal credit ratings; effects of changes in risk selection; underwriting standards and other changes in lending policies, procedures and practices; and national and local economic trends and industry conditions. There were no changes in our policies or methodology pertaining to the general component of the allowance for loan losses during 2013, 2012 and 2011. | |||||||||||||||||
The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: | |||||||||||||||||
Residential real estate – We require private mortgage insurance for all loans originated with a loan-to-value ratio greater than 80 percent and do not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. | |||||||||||||||||
Commercial real estate – Loans in this segment are primarily income-producing investment properties and owner occupied commercial properties throughout New England. The underlying cash flows generated by the properties or operations can be adversely impacted by a downturn in the economy due to increased vacancy rates or diminished cash flows, which in turn, would have an effect on the credit quality in this segment. Management obtains financial information annually and continually monitors the cash flows of these loans. | |||||||||||||||||
Commercial and industrial loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, decreased consumer spending, changes in technology and government spending are examples of what will have an effect on the credit quality in this segment. | |||||||||||||||||
Consumer loans – Loans in this segment are both secured and unsecured and repayment is dependent on the credit quality of the individual borrower. | |||||||||||||||||
Allocated component | |||||||||||||||||
The allocated component relates to loans that are classified as impaired. Impaired loans are identified by analysis of loan performance, internal credit ratings and watch list loans that management believes are subject to a higher risk of loss. Impairment is measured on a loan by loan basis for commercial real estate and commercial and industrial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, we do not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. | |||||||||||||||||
A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect all of the principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. We determine the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |||||||||||||||||
We may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are initially classified as impaired. | |||||||||||||||||
While we use our best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. | |||||||||||||||||
We also maintain a reserve for unfunded credit commitments to provide for the risk of loss inherent in these arrangements. This reserve is determined using a methodology similar to the analysis of the allowance for loan losses, taking into consideration probabilities of future funding requirements. This reserve for unfunded commitments is included in other liabilities and was $60,000 at December 31, 2013 and 2012. | |||||||||||||||||
Unallocated component | |||||||||||||||||
An unallocated component may be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. | |||||||||||||||||
Bank-Owned Life Insurance | ' | ||||||||||||||||
Bank-owned Life Insurance – Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in noninterest income on the consolidated statements of income and are not subject to income taxes. | |||||||||||||||||
Transfers and Servicing of Financial Assets | ' | ||||||||||||||||
Transfers and Servicing of Financial Assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from us, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||||||||
Premises and Equipment | ' | ||||||||||||||||
Premises and Equipment – Land is carried at cost. Buildings, furniture and equipment are stated at cost, less accumulated depreciation and amortization, computed on the straight-line method over the estimated useful lives of the assets, or the expected lease term, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. The estimated useful lives of the assets are as follows: | |||||||||||||||||
Years | |||||||||||||||||
Buildings | 39 | ||||||||||||||||
Leasehold Improvements | 20-May | ||||||||||||||||
Furniture and Equipment | 7-Mar | ||||||||||||||||
The cost of maintenance and repairs is charged to expense when incurred. Major expenditures for betterments are capitalized and depreciated. | |||||||||||||||||
Other Real Estate Owned | ' | ||||||||||||||||
Other Real Estate Owned - Other real estate owned (“OREO”) represents property acquired through foreclosure or deeded to us in lieu of foreclosure. OREO is initially recorded at the estimated fair value of the real estate acquired, net of estimated selling costs, establishing a new cost basis. Initial write-downs are charged to the allowance for loan losses at the time the loan is transferred to OREO. Subsequent valuations are periodically performed by management and the carrying value is adjusted by a charge to expense to reflect any subsequent declines in the estimated fair value. Operating costs associated with OREO are expensed as incurred. | |||||||||||||||||
Retirement Plans and Employee Benefits | ' | ||||||||||||||||
Retirement Plans and Employee Benefits - We provide a defined benefit pension plan for eligible employees in conjunction with a third-party provider. Our policy is to fund pension costs as accrued. Employees are also eligible to participate in a 401(k) plan through third-party provider. We make matching contributions to this plan at 50% of up to 6% of the employees’ eligible compensation. The compensation cost of an employee’s pension benefit is recognized on the projected unit credit method over the employee’s approximate service period. The aggregate cost method is utilized for funding purposes. | |||||||||||||||||
We currently offer postretirement life insurance benefits to retired employees. Such postretirement benefits represent a form of deferred compensation which requires that the cost and obligations of such benefits are recognized in the period in which services are rendered. | |||||||||||||||||
Share-based Compensation Plans | ' | ||||||||||||||||
Share-based Compensation Plans – We measure and recognize compensation cost relating to share-based payment transactions based on the grant-date fair value of the equity instruments issued. Share-based compensation is recognized over the period the employee is required to provide services for the award. Reductions in compensation expense associated with forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted based on actual forfeiture experience. We use a binomial option-pricing model to determine the fair value of the stock options granted. | |||||||||||||||||
Employee Stock Ownership Plan | ' | ||||||||||||||||
Employee Stock Ownership Plan – Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP multiplied by the average fair market value of the shares during the period. We recognize compensation expense ratably over the year based upon our estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of shareholders’ equity in the consolidated balance sheets. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. | |||||||||||||||||
Advertising Costs | ' | ||||||||||||||||
Advertising Costs – Advertising costs are expensed as incurred. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes - We use the asset and liability method for income tax accounting, whereby, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance related to deferred tax assets is established when, in the judgment of management, it is more likely than not that all or a portion of such deferred tax assets will not be realized based on the available evidence including historical and projected taxable income. We do not have any uncertain tax positions at December 31, 2013 which require accrual or disclosure. We record interest and penalties as part of income tax expense. | |||||||||||||||||
Earnings per Share | ' | ||||||||||||||||
Earnings per Share – Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. If rights to dividends or unvested awards are non-forfeitable, these unvested awards are considered outstanding in the computation of basic earnings per share. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by us relate solely to stock options and are determined using the treasury stock method. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. | |||||||||||||||||
Earnings per common share have been computed based on the following: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Net income applicable to common stock | $ | 6,756 | $ | 6,254 | $ | 5,874 | |||||||||||
Average number of common shares issued | 21,254 | 25,763 | 27,839 | ||||||||||||||
Less: Average unallocated ESOP Shares | (1,171 | ) | (1,254 | ) | (1,339 | ) | |||||||||||
Less: Average ungranted equity incentive plan shares | (4 | ) | (7 | ) | (18 | ) | |||||||||||
Average number of common shares outstanding used | |||||||||||||||||
to calculate basic earnings per common share | 20,079 | 24,502 | 26,482 | ||||||||||||||
Effect of dilutive stock options | - | 18 | 107 | ||||||||||||||
Average number of common shares outstanding used | |||||||||||||||||
to calculate diluted earnings per common share | 20,079 | 24,520 | 26,589 | ||||||||||||||
Basic earnings per share | $ | 0.34 | $ | 0.26 | $ | 0.22 | |||||||||||
Diluted earnings per share | $ | 0.34 | $ | 0.26 | $ | 0.22 | |||||||||||
Antidilutive shares (1) | 833 | 1,666 | 1,641 | ||||||||||||||
____________________ | |||||||||||||||||
(1) | Shares outstanding but not included in the computation of earnings per share because they were anti-dilutive, meaning the exercise price of such options exceeded the market value of our common stock. | ||||||||||||||||
Comprehensive Income (Loss) | ' | ||||||||||||||||
Comprehensive Income (Loss) | |||||||||||||||||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss). | |||||||||||||||||
The components of accumulated other comprehensive income (loss), included in shareholders’ equity, are as follows: | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Net unrealized (losses) gains on securities available for sale | $ | (2,410 | ) | $ | 20,188 | ||||||||||||
Tax effect | 837 | (6,935 | ) | ||||||||||||||
Net-of-tax amount | (1,573 | ) | 13,253 | ||||||||||||||
Unamortized losses on securities transferred from available-for-sale to held-to-maturity | (1,732 | ) | - | ||||||||||||||
Tax effect | 599 | ||||||||||||||||
Net-of-tax amount | (1,133 | ) | - | ||||||||||||||
Fair value of derivatives used for cash flow hedges | 1,755 | - | |||||||||||||||
Tax effect | (597 | ) | - | ||||||||||||||
Net-of-tax amount | 1,158 | - | |||||||||||||||
Unrecognized transition asset pertaining to defined benefit plan | 10 | 21 | |||||||||||||||
Unrecognized deferred loss pertaining to defined benefit plan | (2,172 | ) | (3,897 | ) | |||||||||||||
Net adjustments pertaining to defined benefit plans | (2,162 | ) | (3,876 | ) | |||||||||||||
Tax effect | 735 | 1,318 | |||||||||||||||
Net-of-tax amount | (1,427 | ) | (2,558 | ) | |||||||||||||
Accumulated other comprehensive (loss) income | $ | (2,975 | ) | $ | 10,695 | ||||||||||||
The following table presents changes in accumulated other comprehensive (loss) income for the years ended December 31, 2013 and 2012 by component: | |||||||||||||||||
Securities | Derivatives | Defined Benefit | Accumulated Other Comprehensive | ||||||||||||||
Pension Plans | (Loss) Income | ||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2012 | $ | 13,253 | $ | - | $ | (2,558 | ) | $ | 10,695 | ||||||||
Current-period other comprehensive (loss) income | (15,959 | ) | 1,158 | 1,131 | (13,670 | ) | |||||||||||
Balance at December 31, 2013 | $ | (2,706 | ) | $ | 1,158 | $ | (1,427 | ) | $ | (2,975 | ) | ||||||
Balance at December 31, 2011 | $ | 10,321 | $ | - | $ | (2,605 | ) | $ | 7,716 | ||||||||
Current-period other comprehensive income | 2,932 | - | 47 | 2,979 | |||||||||||||
Balance at December 31, 2012 | $ | 13,253 | $ | - | $ | (2,558 | ) | $ | 10,695 | ||||||||
With regard to defined benefit plans, actuarial loss in the amount of $117,000 is expected to be recognized as a component of net periodic pension cost for the year ending December 31, 2014. Amortization of transition asset in the amount of $12,000 is expected to be recognized as a component of net periodic pension cost for the year ending December 31, 2014. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This update requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. This ASU is effective for public entities for reporting periods beginning after December 15, 2012. The amendments in ASU 2013-02 did not have a significant impact on our consolidated financial statements. | |||||||||||||||||
In January 2014, FASB issued ASU 2014-04- Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure.” This ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar agreement. In addition, the amendments require disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure in accordance with local requirements of the applicable jurisdiction. An entity can elect to adopt the amendments using either a modified retrospective method or a prospective transition method. The amendments are effective for annual and interim periods beginning after December 15, 2014. We do not expect the application of this guidance to have a material impact on our consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Estimated Useful Lives of Assets | ' | ||||||||||||||||
The estimated useful lives of the assets are as follows: | |||||||||||||||||
Years | |||||||||||||||||
Buildings | 39 | ||||||||||||||||
Leasehold Improvements | 20-May | ||||||||||||||||
Furniture and Equipment | 7-Mar | ||||||||||||||||
Earnings Per Common Share | ' | ||||||||||||||||
Earnings per common share have been computed based on the following: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Net income applicable to common stock | $ | 6,756 | $ | 6,254 | $ | 5,874 | |||||||||||
Average number of common shares issued | 21,254 | 25,763 | 27,839 | ||||||||||||||
Less: Average unallocated ESOP Shares | (1,171 | ) | (1,254 | ) | (1,339 | ) | |||||||||||
Less: Average ungranted equity incentive plan shares | (4 | ) | (7 | ) | (18 | ) | |||||||||||
Average number of common shares outstanding used | |||||||||||||||||
to calculate basic earnings per common share | 20,079 | 24,502 | 26,482 | ||||||||||||||
Effect of dilutive stock options | - | 18 | 107 | ||||||||||||||
Average number of common shares outstanding used | |||||||||||||||||
to calculate diluted earnings per common share | 20,079 | 24,520 | 26,589 | ||||||||||||||
Basic earnings per share | $ | 0.34 | $ | 0.26 | $ | 0.22 | |||||||||||
Diluted earnings per share | $ | 0.34 | $ | 0.26 | $ | 0.22 | |||||||||||
Antidilutive shares (1) | 833 | 1,666 | 1,641 | ||||||||||||||
____________________ | |||||||||||||||||
(1) | Shares outstanding but not included in the computation of earnings per share because they were anti-dilutive, meaning the exercise price of such options exceeded the market value of our common stock. | ||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity | ' | ||||||||||||||||
The components of accumulated other comprehensive income (loss), included in shareholders’ equity, are as follows: | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Net unrealized (losses) gains on securities available for sale | $ | (2,410 | ) | $ | 20,188 | ||||||||||||
Tax effect | 837 | (6,935 | ) | ||||||||||||||
Net-of-tax amount | (1,573 | ) | 13,253 | ||||||||||||||
Unamortized losses on securities transferred from available-for-sale to held-to-maturity | (1,732 | ) | - | ||||||||||||||
Tax effect | 599 | ||||||||||||||||
Net-of-tax amount | (1,133 | ) | - | ||||||||||||||
Fair value of derivatives used for cash flow hedges | 1,755 | - | |||||||||||||||
Tax effect | (597 | ) | - | ||||||||||||||
Net-of-tax amount | 1,158 | - | |||||||||||||||
Unrecognized transition asset pertaining to defined benefit plan | 10 | 21 | |||||||||||||||
Unrecognized deferred loss pertaining to defined benefit plan | (2,172 | ) | (3,897 | ) | |||||||||||||
Net adjustments pertaining to defined benefit plans | (2,162 | ) | (3,876 | ) | |||||||||||||
Tax effect | 735 | 1,318 | |||||||||||||||
Net-of-tax amount | (1,427 | ) | (2,558 | ) | |||||||||||||
Accumulated other comprehensive (loss) income | $ | (2,975 | ) | $ | 10,695 | ||||||||||||
Changes in Accumulated Other Comprehensive (Loss) Income | ' | ||||||||||||||||
The following table presents changes in accumulated other comprehensive (loss) income for the years ended December 31, 2013 and 2012 by component: | |||||||||||||||||
Securities | Derivatives | Defined Benefit | Accumulated Other Comprehensive | ||||||||||||||
Pension Plans | (Loss) Income | ||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2012 | $ | 13,253 | $ | - | $ | (2,558 | ) | $ | 10,695 | ||||||||
Current-period other comprehensive (loss) income | (15,959 | ) | 1,158 | 1,131 | (13,670 | ) | |||||||||||
Balance at December 31, 2013 | $ | (2,706 | ) | $ | 1,158 | $ | (1,427 | ) | $ | (2,975 | ) | ||||||
Balance at December 31, 2011 | $ | 10,321 | $ | - | $ | (2,605 | ) | $ | 7,716 | ||||||||
Current-period other comprehensive income | 2,932 | - | 47 | 2,979 | |||||||||||||
Balance at December 31, 2012 | $ | 13,253 | $ | - | $ | (2,558 | ) | $ | 10,695 |
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Securities Available for Sale | ' | ||||||||||||||||
Securities available for sale are summarized as follows: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 135,981 | $ | 419 | $ | (4,028 | ) | $ | 132,372 | ||||||||
U.S. government guaranteed mortgage-backed securities | 46,225 | 240 | (137 | ) | 46,328 | ||||||||||||
Corporate bonds | 26,716 | 766 | (93 | ) | 27,389 | ||||||||||||
State and municipal bonds | 18,240 | 659 | (2 | ) | 18,897 | ||||||||||||
Government-sponsored enterprise obligations | 10,992 | 18 | (310 | ) | 10,700 | ||||||||||||
Mutual funds | 6,150 | 8 | (239 | ) | 5,919 | ||||||||||||
Common and preferred stock | 1,310 | 289 | - | 1,599 | |||||||||||||
Total available for sale securities | 245,614 | 2,399 | (4,809 | ) | 243,204 | ||||||||||||
Held to maturity securities: | |||||||||||||||||
Government-sponsored mortgage-backed securities | 176,986 | - | (6,819 | ) | 170,167 | ||||||||||||
U.S. government guaranteed mortgage-backed securities | 39,705 | - | (1,391 | ) | 38,314 | ||||||||||||
Corporate bonds | 27,566 | 30 | (567 | ) | 27,029 | ||||||||||||
State and municipal bonds | 7,351 | 5 | (345 | ) | 7,011 | ||||||||||||
Government-sponsored enterprise obligations | 43,405 | - | (3,371 | ) | 40,034 | ||||||||||||
Total held to maturity securities | 295,013 | 35 | (12,493 | ) | 282,555 | ||||||||||||
Total | $ | 540,627 | $ | 2,434 | $ | (17,302 | ) | $ | 525,759 | ||||||||
31-Dec-12 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 318,951 | $ | 9,703 | $ | (631 | ) | $ | 328,023 | ||||||||
U.S. government guaranteed mortgage-backed securities | 124,650 | 6,085 | - | 130,735 | |||||||||||||
Corporate bonds | 50,782 | 1,618 | (63 | ) | 52,337 | ||||||||||||
State and municipal bonds | 38,788 | 2,067 | (9 | ) | 40,846 | ||||||||||||
Government-sponsored enterprise obligations | 60,840 | 1,257 | (37 | ) | 62,060 | ||||||||||||
Mutual funds | 5,998 | 117 | (69 | ) | 6,046 | ||||||||||||
Common and preferred stock | 1,310 | 150 | - | 1,460 | |||||||||||||
Total | $ | 601,319 | $ | 20,997 | $ | (809 | ) | $ | 621,507 | ||||||||
Amortized Cost and Fair Value of Securities Available for Sale by Maturity | ' | ||||||||||||||||
The amortized cost and fair value of securities at December 31, 2013, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or repay obligations. | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Securities | Securities | ||||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||
Amortized | Fair Value | Amortized | Fair Value | ||||||||||||||
Cost | Cost | ||||||||||||||||
(In thousands) | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Due after five years through ten years | $ | 39,482 | $ | 37,783 | $ | 44,261 | $ | 41,476 | |||||||||
Due after ten years | 142,724 | 140,917 | 172,430 | 167,005 | |||||||||||||
Total | $ | 182,206 | $ | 178,700 | $ | 216,691 | $ | 208,481 | |||||||||
Debt securities: | |||||||||||||||||
Due in one year or less | $ | - | $ | - | $ | - | $ | - | |||||||||
Due after one year through five years | 34,533 | 35,204 | 14,751 | 14,486 | |||||||||||||
Due after five years through ten years | 21,230 | 21,586 | 48,014 | 45,268 | |||||||||||||
Due after ten years | 185 | 196 | 15,557 | 14,320 | |||||||||||||
Total | $ | 55,948 | $ | 56,986 | $ | 78,322 | $ | 74,074 | |||||||||
Gross Realized Gains and Losses on Sales of Securities | ' | ||||||||||||||||
Gross realized gains and losses on sales of securities for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Gross gains realized | $ | 3,978 | $ | 4,068 | $ | 1,901 | |||||||||||
Gross losses realized | (852 | ) | (1,161 | ) | (1,487 | ) | |||||||||||
Net gain realized | $ | 3,126 | $ | 2,907 | $ | 414 | |||||||||||
Securities with Gross Unrealized Losses in Continuous Loss Position | ' | ||||||||||||||||
Information pertaining to securities with gross unrealized losses at December 31, 2013 and 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Less Than 12 Months | Over 12 Months | ||||||||||||||||
Gross | Fair Value | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Available for sale: | |||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 3,717 | $ | 118,846 | $ | 311 | $ | 2,761 | |||||||||
U.S. government guaranteed mortgage-backed securities | 137 | 15,045 | - | - | |||||||||||||
Corporate bonds | 93 | 4,659 | - | - | |||||||||||||
State and municipal bonds | 2 | 256 | - | - | |||||||||||||
Government-sponsored enterprise obligations | 310 | 7,189 | - | - | |||||||||||||
Mutual funds | 84 | 3,205 | 155 | 1,656 | |||||||||||||
Total available for sale | 4,343 | 149,200 | 466 | 4,417 | |||||||||||||
Held to maturity: | |||||||||||||||||
Government-sponsored mortgage-backed securities | 5,866 | 145,438 | 953 | 24,729 | |||||||||||||
U.S. government guaranteed mortgage-backed securities | 1,391 | 38,314 | - | - | |||||||||||||
Corporate bonds | 567 | 22,059 | - | - | |||||||||||||
State and municipal bonds | 345 | 5,852 | - | - | |||||||||||||
Government-sponsored enterprise obligations | 3,330 | 38,228 | 41 | 1,806 | |||||||||||||
Total held to maturity | 11,499 | 249,891 | 994 | 26,535 | |||||||||||||
Total | $ | 15,842 | $ | 399,091 | $ | 1,460 | $ | 30,952 | |||||||||
December 31, 2012 | |||||||||||||||||
Less Than 12 Months | Over 12 Months | ||||||||||||||||
Gross | Fair Value | Gross | Fair Value | ||||||||||||||
Unrealized | Unrealized | ||||||||||||||||
Losses | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 631 | $ | 49,081 | $ | - | $ | - | |||||||||
Corporate bonds | 63 | 4,330 | - | - | |||||||||||||
State and municipal bonds | 9 | 1,178 | - | - | |||||||||||||
Government-sponsored enterprise obligations | 37 | 17,918 | - | - | |||||||||||||
Mutual funds | - | - | 69 | 1,684 | |||||||||||||
Total | $ | 740 | $ | 72,507 | $ | 69 | $ | 1,684 |
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||
Loans consisted of the following amounts: | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Commercial real estate | $ | 264,476 | $ | 245,764 | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 198,686 | 185,345 | |||||||||||||||||||||||
Home equity | 35,371 | 34,352 | |||||||||||||||||||||||
Commercial and industrial | 135,555 | 126,052 | |||||||||||||||||||||||
Consumer | 2,572 | 2,431 | |||||||||||||||||||||||
Total loans | 636,660 | 593,944 | |||||||||||||||||||||||
Unearned premiums and deferred loan fees and costs, net | 767 | 974 | |||||||||||||||||||||||
Allowance for loan losses | (7,459 | ) | (7,794 | ) | |||||||||||||||||||||
$ | 629,968 | $ | 587,124 | ||||||||||||||||||||||
Allowance for Loan Losses by Segment | ' | ||||||||||||||||||||||||
An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||||||||||||||
Commercial | Residential | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||
Real Estate | Real Estate | and | |||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 3,406 | $ | 1,746 | $ | 2,167 | $ | 13 | $ | 462 | $ | 7,794 | |||||||||||||
Provision (credit) | 9 | 40 | 148 | 11 | (464 | ) | (256 | ) | |||||||||||||||||
Charge-offs | (20 | ) | (80 | ) | (208 | ) | (33 | ) | - | (341 | ) | ||||||||||||||
Recoveries | 155 | 1 | 84 | 22 | - | 262 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 3,549 | $ | 1,707 | $ | 2,192 | $ | 13 | $ | (2 | ) | $ | 7,459 | ||||||||||||
Balance at December 31, 2011 | $ | 3,504 | $ | 1,531 | $ | 2,712 | $ | 17 | $ | - | $ | 7,764 | |||||||||||||
Provision (credit) | 19 | 365 | (161 | ) | 13 | 462 | 698 | ||||||||||||||||||
Charge-offs | (195 | ) | (155 | ) | (391 | ) | (27 | ) | - | (768 | ) | ||||||||||||||
Recoveries | 78 | 5 | 7 | 10 | - | 100 | |||||||||||||||||||
Balance at December 31, 2012 | $ | 3,406 | $ | 1,746 | $ | 2,167 | $ | 13 | $ | 462 | $ | 7,794 | |||||||||||||
Balance at December 31, 2010 | $ | 3,182 | $ | 877 | $ | 2,849 | $ | 26 | $ | - | $ | 6,934 | |||||||||||||
Provision (credit) | 357 | 647 | 215 | (13 | ) | - | 1,206 | ||||||||||||||||||
Charge-offs | (175 | ) | (2 | ) | (442 | ) | (21 | ) | - | (640 | ) | ||||||||||||||
Recoveries | 140 | 9 | 90 | 25 | - | 264 | |||||||||||||||||||
Balance at December 31, 2011 | $ | 3,504 | $ | 1,531 | $ | 2,712 | $ | 17 | $ | - | $ | 7,764 | |||||||||||||
Past Due and Non-Accrual Loans by Class | ' | ||||||||||||||||||||||||
The following is a summary of past due and non-accrual loans by class at December 31, 2013 and 2012: | |||||||||||||||||||||||||
30 – 59 Days | 60 – 89 Days | Greater than | Total Past | Past Due 90 | Loans on | ||||||||||||||||||||
Past Due | Past Due | 90 Days Past | Due | Days or More | Non-Accrual | ||||||||||||||||||||
Due | and Still | ||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Commercial real estate | $ | 430 | $ | 146 | $ | 793 | $ | 1,369 | $ | - | $ | 1,449 | |||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 1,004 | 325 | 311 | 1,640 | - | 712 | |||||||||||||||||||
Home equity | 217 | - | 2 | 219 | - | 38 | |||||||||||||||||||
Commercial and industrial | 516 | 780 | 140 | 1,436 | - | 386 | |||||||||||||||||||
Consumer | 25 | 16 | 1 | 42 | - | 1 | |||||||||||||||||||
Total | $ | 2,192 | $ | 1,267 | $ | 1,247 | $ | 4,706 | $ | - | $ | 2,586 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Commercial real estate | $ | 94 | $ | 331 | $ | 818 | $ | 1,243 | $ | - | $ | 1,558 | |||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 347 | 70 | 735 | 1,152 | - | 939 | |||||||||||||||||||
Home equity | 139 | 42 | - | 181 | - | 103 | |||||||||||||||||||
Commercial and industrial | 138 | - | 178 | 316 | - | 409 | |||||||||||||||||||
Consumer | - | 1 | - | 1 | - | - | |||||||||||||||||||
Total | $ | 718 | $ | 444 | $ | 1,731 | $ | 2,893 | $ | - | $ | 3,009 | |||||||||||||
Impaired Loans by Class | ' | ||||||||||||||||||||||||
The following is a summary of impaired loans by class: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
At December 31, 2013 | 31-Dec-13 | ||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | $ | 1,449 | $ | 1,756 | $ | - | $ | 1,502 | $ | - | |||||||||||||||
Residential real estate | 234 | 306 | - | 248 | - | ||||||||||||||||||||
Commercial and industrial | 385 | 487 | - | 403 | - | ||||||||||||||||||||
Total | 2,068 | 2,549 | - | 2,153 | - | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | 13,513 | 13,513 | 82 | 13,678 | 582 | ||||||||||||||||||||
Commercial and industrial | 967 | 967 | 15 | 979 | 42 | ||||||||||||||||||||
Total | 14,480 | 14,480 | 97 | 14,657 | 624 | ||||||||||||||||||||
Total impaired loans | $ | 16,548 | $ | 17,029 | $ | 97 | $ | 16,810 | $ | 624 | |||||||||||||||
Year Ended | |||||||||||||||||||||||||
At December 31, 2012 | 31-Dec-12 | ||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | $ | 1,011 | $ | 1,177 | $ | - | $ | 1,505 | $ | - | |||||||||||||||
Residential real estate | 118 | 125 | - | 119 | - | ||||||||||||||||||||
Commercial and industrial | 203 | 212 | - | 36 | - | ||||||||||||||||||||
Total | 1,332 | 1,514 | - | 1,660 | - | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | 14,387 | 14,454 | 377 | 14,053 | 643 | ||||||||||||||||||||
Residential real estate | 184 | 184 | 57 | 186 | - | ||||||||||||||||||||
Home equity | - | - | - | 72 | - | ||||||||||||||||||||
Commercial and industrial | 1,176 | 1,178 | 104 | 1,268 | 42 | ||||||||||||||||||||
Total | 15,747 | 15,816 | 538 | 15,579 | 685 | ||||||||||||||||||||
Total impaired loans | $ | 17,079 | $ | 17,330 | $ | 538 | $ | 17,239 | $ | 685 | |||||||||||||||
Performing Loans Modified as Troubled Debt Restructurings | ' | ||||||||||||||||||||||||
Nonperforming TDRs are shown as nonperforming assets. Loans modified as TDRs in 2012 are shown in the table below. There were no loans modified as TDRs in 2013. One loan relationship, consisting of one commercial real estate loan and one commercial industrial loan totaling $14.8 million included below, was restructured in 2011 to reduce the interest rate. These loans were restructured again in June 2012 to commence principal and interest payments. The collateral supporting the loan relationship is deemed sufficient and the income levels going forward are expected to sustain continued principal and interest payments. The loan has performed since the June 2012 modification and we have received all scheduled principal and interest payments. Another loan relationship, consisting of three commercial real estate loans and three commercial industrial loans, totaling $1.0 million were allowed an extended interest only period through 2013. Another loan relationship, consisting of two commercial and industrial loans, totaling $150,000, was restructured in 2012 by extending the remaining amortization from five to ten years. The final commercial real estate loan for $126,000 was restructured in 2012 by extending the remaining amortization from seven to ten years. | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Number of | Pre- | Post- | |||||||||||||||||||||||
Contracts | Modification Outstanding | Modification Outstanding | |||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Commercial real estate | 5 | $ | 14,785 | $ | 14,785 | ||||||||||||||||||||
Commercial and industrial | 6 | 1,344 | 1,344 | ||||||||||||||||||||||
Total | 11 | $ | 16,129 | $ | 16,129 | ||||||||||||||||||||
Summary of Troubled Debt Restructurings that Subsequently Defaulted | ' | ||||||||||||||||||||||||
The following is a summary of troubled debt restructurings that have subsequently defaulted (30 days or more past due) within one year of modification: | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Number of | Recorded | ||||||||||||||||||||||||
Contracts | Investment | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Commercial real estate | 4 | 944 | |||||||||||||||||||||||
Commercial and industrial | 1 | 141 | |||||||||||||||||||||||
Residential | - | - | |||||||||||||||||||||||
Total | 5 | $ | 1,085 | ||||||||||||||||||||||
Loans by Risk Rating | ' | ||||||||||||||||||||||||
The following table presents our loans by risk rating at December 31, 2013 and December 31, 2012: | |||||||||||||||||||||||||
Commercial | Residential | Home Equity | Commercial | Consumer | Total | ||||||||||||||||||||
Real Estate | 1-4 family | and | |||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Loans rated 1 – 3 | $ | 213,985 | $ | 197,974 | $ | 35,333 | $ | 108,671 | $ | 2,571 | $ | 558,534 | |||||||||||||
Loans rated 4 | 41,459 | - | - | 15,722 | - | 57,181 | |||||||||||||||||||
Loans rated 5 | 1,972 | - | - | 3,509 | - | 5,481 | |||||||||||||||||||
Loans rated 6 | 7,060 | 712 | 38 | 7,653 | 1 | 15,464 | |||||||||||||||||||
$ | 264,476 | $ | 198,686 | $ | 35,371 | $ | 135,555 | $ | 2,572 | $ | 636,660 | ||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Loans rated 1 – 3 | $ | 203,756 | $ | 184,406 | $ | 34,249 | $ | 99,405 | $ | 2,431 | $ | 524,247 | |||||||||||||
Loans rated 4 | 19,027 | - | - | 15,804 | - | 34,831 | |||||||||||||||||||
Loans rated 5 | 1,943 | - | - | 941 | - | 2,884 | |||||||||||||||||||
Loans rated 6 | 21,038 | 939 | 103 | 9,902 | - | 31,982 | |||||||||||||||||||
$ | 245,764 | $ | 185,345 | $ | 34,352 | $ | 126,052 | $ | 2,431 | $ | 593,944 | ||||||||||||||
Further Information | ' | ||||||||||||||||||||||||
Allowance for Loan Losses by Segment | ' | ||||||||||||||||||||||||
Further information pertaining to the allowance for loan losses by segment at December 31, 2013 and 2012 follows: | |||||||||||||||||||||||||
Commercial | Residential | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||
Real Estate | Real Estate | and | |||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amount of allowance for loans individually | $ | 82 | $ | - | $ | 15 | $ | - | $ | - | $ | 97 | |||||||||||||
evaluated and deemed impaired | |||||||||||||||||||||||||
Amount of allowance for loans collectively or | 3,467 | 1,707 | 2,177 | 13 | (2 | ) | 7,362 | ||||||||||||||||||
individually evaluated for impairment and not | |||||||||||||||||||||||||
deemed impaired | |||||||||||||||||||||||||
Total allowance for loan losses | 3,549 | 1,707 | 2,192 | 13 | (2 | ) | 7,459 | ||||||||||||||||||
Loans individually evaluated and deemed impaired | 14,962 | 234 | 1,352 | - | - | 16,548 | |||||||||||||||||||
Loan collectively evaluated and not deemed impaired | 249,514 | 233,823 | 134,203 | 2,572 | - | 620,112 | |||||||||||||||||||
Total loans | $ | 264,476 | $ | 234,057 | $ | 135,555 | $ | 2,572 | $ | - | $ | 636,660 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amount of allowance for loans individually | $ | 377 | $ | 57 | $ | 104 | $ | - | $ | - | $ | 538 | |||||||||||||
evaluated and deemed impaired | |||||||||||||||||||||||||
Amount of allowance for loans collectively or | 3,029 | 1,689 | 2,063 | 13 | 462 | 7,256 | |||||||||||||||||||
individually evaluated for impairment and not | |||||||||||||||||||||||||
deemed impaired | |||||||||||||||||||||||||
Total allowance for loan losses | 3,406 | 1,746 | 2,167 | 13 | 462 | 7,794 | |||||||||||||||||||
Loans individually evaluated and deemed impaired | 15,398 | 302 | 1,379 | - | - | 17,079 | |||||||||||||||||||
Loan collectively evaluated and not deemed impaired | 230,366 | 219,395 | 124,673 | 2,431 | - | 576,865 | |||||||||||||||||||
Total loans | $ | 245,764 | $ | 219,697 | $ | 126,052 | $ | 2,431 | $ | - | $ | 593,944 |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Premises and Equipment | ' | ||||||||
Premises and equipment are summarized as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Land | $ | 1,826 | $ | 1,826 | |||||
Buildings | 13,104 | 12,951 | |||||||
Leasehold improvements | 1,622 | 1,446 | |||||||
Furniture and equipment | 10,777 | 10,108 | |||||||
Total | 27,329 | 26,331 | |||||||
Accumulated depreciation and amortization | (16,334 | ) | (15,254 | ) | |||||
Premises and equipment, net | $ | 10,995 | $ | 11,077 |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Deposit Accounts by Type and Weighted Average Rates | ' | ||||||||||||||||
Deposit accounts by type and weighted average rates are summarized as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Demand: | |||||||||||||||||
Interest-bearing | $ | 44,924 | 0.27 | % | $ | 52,595 | 0.3 | % | |||||||||
Noninterest-bearing deposits | 145,040 | - | 114,388 | - | |||||||||||||
Savings: | |||||||||||||||||
Regular | 81,244 | 0.1 | 92,188 | 0.17 | |||||||||||||
Money market | 204,469 | 0.38 | 168,195 | 0.38 | |||||||||||||
Time certificates of deposit | 341,435 | 1.28 | 326,047 | 1.46 | |||||||||||||
Total deposits | $ | 817,112 | 0.66 | % | $ | 753,413 | 0.76 | % | |||||||||
Scheduled Maturities of Time Certificates of Deposit | ' | ||||||||||||||||
At December 31, 2013, the scheduled maturities of time certificates of deposit are as follows: | |||||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | 212,901 | |||||||||||||||
2015 | 70,330 | ||||||||||||||||
2016 | 34,197 | ||||||||||||||||
2017 | 22,918 | ||||||||||||||||
2018 | 1,089 | ||||||||||||||||
$ | 341,435 | ||||||||||||||||
Interest Expense on Deposits | ' | ||||||||||||||||
Interest expense on deposits for the years ended December 31, 2013, 2012 and 2011 is summarized as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Regular | $ | 119 | $ | 186 | $ | 515 | |||||||||||
Money market | 762 | 807 | 620 | ||||||||||||||
Time | 4,509 | 4,883 | 5,693 | ||||||||||||||
Interest-bearing demand | 135 | 266 | 761 | ||||||||||||||
$ | 5,525 | $ | 6,142 | $ | 7,589 |
ShortTerm_Borrowings_Tables
Short-Term Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Repurchase Agreements | ' | ||||||||
The following table summarizes information regarding repurchase agreements: | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in thousands) | |||||||||
Balance outstanding at end of year | $ | 28,197 | $ | 24,213 | |||||
Maximum amount outstanding during year | 40,860 | 43,027 | |||||||
Average amount outstanding during year | 31,754 | 24,270 | |||||||
Weighted average interest rate at end of year | 0.19 | % | 0.19 | % | |||||
Amortized cost of collateral pledged at end of year (1) | 53,714 | 51,000 | |||||||
Fair value of collateral pledged at end of year (1) | 54,885 | 54,957 | |||||||
(1) Includes collateral pledged toward $5.6 million in long-term customer repurchase agreements. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Advances Collateralized by Blanket Lien on Residential Real Estate Loans and Certain Mortgage-Backed Securities | ' | ||||||||||||||||
The following advances are collateralized by a blanket lien on our residential real estate loans and certain mortgage-backed securities. | |||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Fixed-rate advances maturing: | |||||||||||||||||
2013 | $ | - | $ | 19,950 | - | % | 1.1 | % | |||||||||
2014 | 21,542 | 21,413 | 1.2 | 1.2 | |||||||||||||
2015 | 25,395 | 25,215 | 1.6 | 1.6 | |||||||||||||
2016 | 53,574 | 40,932 | 2.2 | 2.4 | |||||||||||||
2017 | 17,500 | 17,500 | 2.6 | 2.6 | |||||||||||||
2018 | 10,000 | 5,000 | 2.2 | 3.2 | |||||||||||||
2019 | 5,000 | 5,000 | 3.2 | 3.2 | |||||||||||||
2020 | 7,000 | - | 1.8 | - | |||||||||||||
140,011 | 134,470 | 2 | % | 2 | % | ||||||||||||
Variable-rate advances maturing: | |||||||||||||||||
2015 | 9,736 | 9,600 | 0.9 | 1.1 | |||||||||||||
2016* | 10,000 | 23,000 | 1.4 | 0.6 | |||||||||||||
2017* | 30,000 | 30,000 | (0.2 | ) | (0.2 | ) | |||||||||||
2018* | 32,000 | 12,000 | 0.4 | (0.1 | ) | ||||||||||||
2019* | 11,000 | 11,000 | (0.1 | ) | - | ||||||||||||
92,736 | 85,600 | 0.3 | 0.2 | ||||||||||||||
Total advances | $ | 232,747 | $ | 220,070 | 1.3 | % | 1.3 | % | |||||||||
*At December 31, 2013, the following amounts are callable at the option of FHLBB: $30.0 million in 2014 and $33.0 million in 2015. If these advances are not called, the weighted average rate on these advances, which is currently variable and resets based on LIBOR, will become fixed and increase to 2.2% for the 2014 call, and 2.3% for the 2015 call. No FHLBB advances were callable at December 31, 2012. | |||||||||||||||||
Securities Sold under Agreements to Repurchase Secured by Government-Sponsored Enterprise Securities | ' | ||||||||||||||||
The following securities sold under agreements to repurchase are secured by government-sponsored enterprise obligations with a carrying value of $12.4 million and $65.1 million as of December 31, 2013 and 2012, respectively. We may be required to provide additional collateral based on the fair value of the underlying securities. | |||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Fixed-rates maturing: | |||||||||||||||||
2013 | $ | - | $ | 14,800 | - | % | 2.5 | % | |||||||||
2018 | 10,000 | 29,500 | 2.7 | 2.9 | |||||||||||||
10,000 | 44,300 | 2.7 | 2.8 | ||||||||||||||
Variable-rates maturing: | |||||||||||||||||
2018 | - | 9,000 | - | 3.8 | |||||||||||||
Total | $ | 10,000 | $ | 53,300 | 2.7 | % | 2.9 | % | |||||||||
Callable Securities Sold under Agreements to Repurchase | ' | ||||||||||||||||
At December 31, 2013 and 2012, the years in which securities sold under agreements to repurchase are callable are as follows: | |||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
2013 | $ | - | $ | 48,300 | - | % | 3 | % | |||||||||
2014 | 10,000 | - | 2.7 | - | |||||||||||||
$ | 10,000 | $ | 48,300 | 2.7 | % | 3 | % |
Stock_Plans_and_Employee_Stock1
Stock Plans and Employee Stock Ownership Plan (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Status of Stock Options | ' | ||||||||
A summary of the status of our stock options at December 31, 2013 is presented below: | |||||||||
Shares | Weighted | ||||||||
Average | |||||||||
Exercise | |||||||||
Price | |||||||||
Outstanding at December 31, 2012 | 1,669,431 | $ | 10.02 | ||||||
Tender offer to purchase outstanding options | (1,665,415 | ) | - | ||||||
Cancelled | (4,016 | ) | - | ||||||
Outstanding at December 31, 2013 | - | $ | - | ||||||
Status of Unvested Restricted Stock Awards | ' | ||||||||
A summary of the status of unvested restricted stock awards at December 31, 2013 is presented below: | |||||||||
Shares | Weighted Average Grant Date Fair | ||||||||
Value | |||||||||
Balance at December 31, 2012 | 33,800 | $ | 8.23 | ||||||
Shares vested | (15,520 | ) | 8.17 | ||||||
Shares granted | 7,440 | 7.08 | |||||||
Balance at December 31, 2013 | 25,720 | $ | 7.93 | ||||||
Remaining Principal Balance Payable | ' | ||||||||
At December 31, 2013, the remaining principal balance is payable as follows: | |||||||||
Year Ending | |||||||||
December 31, | Amount | ||||||||
(In thousands) | |||||||||
2014 | $ | 447 | |||||||
2015 | 447 | ||||||||
2016 | 447 | ||||||||
2017 | 447 | ||||||||
2018 | 447 | ||||||||
Thereafter | 7,034 | ||||||||
$ | 9,269 | ||||||||
Shares Held by Employee Stock Ownership Plan | ' | ||||||||
Shares held by the ESOP include the following at December 31, 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Allocated | 662,013 | 624,823 | |||||||
Committed to be allocated | 81,803 | 84,261 | |||||||
Unallocated | 1,120,096 | 1,201,899 | |||||||
1,863,912 | 1,910,983 |
Retirement_Plans_and_Employee_1
Retirement Plans and Employee Benefits (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Pension Plan | ' | ||||||||||||||||
The following table provides information for the Plan at or for the years ended December 31: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at beginning of year | $ | 18,752 | $ | 18,326 | $ | 16,191 | |||||||||||
Service cost | 1,170 | 1,094 | 989 | ||||||||||||||
Interest | 763 | 800 | 890 | ||||||||||||||
Actuarial (gain) loss | (1,540 | ) | 27 | 401 | |||||||||||||
Benefits paid | (106 | ) | (1,495 | ) | (145 | ) | |||||||||||
Benefit obligation at end of year | 19,039 | 18,752 | 18,326 | ||||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 12,200 | 11,377 | 10,950 | ||||||||||||||
Actual return (loss) on plan assets | 992 | 818 | (28 | ) | |||||||||||||
Employer contribution | 725 | 1,500 | 600 | ||||||||||||||
Benefits paid | (106 | ) | (1,495 | ) | (145 | ) | |||||||||||
Fair value of plan assets at end of year | 13,811 | 12,200 | 11,377 | ||||||||||||||
Funded status and accrued benefit at end of year | $ | 5,228 | $ | 6,552 | $ | 6,949 | |||||||||||
Accumulated benefit obligation at end of year | $ | 13,192 | $ | 13,297 | $ | 11,964 | |||||||||||
Actuarial Assumptions used in Determining Pension Benefit Obligation | ' | ||||||||||||||||
The following actuarial assumptions were used in determining the pension benefit obligation: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Discount rate | 5 | % | 4 | % | |||||||||||||
Rate of compensation increase | 4 | 4 | |||||||||||||||
Net Pension Cost | ' | ||||||||||||||||
Net pension cost includes the following components for the years ended December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 1,170 | $ | 1,094 | $ | 989 | |||||||||||
Interest cost | 763 | 800 | 890 | ||||||||||||||
Expected return on assets | (948 | ) | (867 | ) | (876 | ) | |||||||||||
Amortization of transition asset | (12 | ) | (12 | ) | (12 | ) | |||||||||||
Amortization of actuarial loss | 117 | 175 | 116 | ||||||||||||||
Net periodic pension cost | $ | 1,090 | $ | 1,190 | $ | 1,107 | |||||||||||
Actuarial Assumptions used in Determining Service Costs | ' | ||||||||||||||||
The following actuarial assumptions were used in determining the service costs for the years ended December 31: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rate | 4 | % | 4.5 | % | 5.5 | % | |||||||||||
Expected return on plan assets | 8 | 8 | 8 | ||||||||||||||
Rate of compensation increase | 4 | 4 | 5 | ||||||||||||||
Fair Value of Major Categories of Pension Plan Assets | ' | ||||||||||||||||
The fair value of major categories of our pension plan assets are summarized below: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Plan Assets | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(In thousands) | |||||||||||||||||
Large U.S. equity | $ | - | $ | 3,325 | $ | - | $ | 3,325 | |||||||||
Small/mid U.S. equity | - | 831 | - | 831 | |||||||||||||
International equity | - | 1,394 | - | 1,394 | |||||||||||||
Balanced/asset allocation | - | 693 | - | 693 | |||||||||||||
Short-term fixed income | - | 1,519 | - | 1,519 | |||||||||||||
Fixed income | - | 6,049 | - | 6,049 | |||||||||||||
$ | - | $ | 13,811 | $ | - | $ | 13,811 | ||||||||||
31-Dec-12 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
(In thousands) | |||||||||||||||||
Large U.S. equity | $ | - | $ | 2,987 | $ | - | $ | 2,987 | |||||||||
Small/mid U.S. equity | - | 755 | - | 755 | |||||||||||||
International equity | - | 1,286 | - | 1,286 | |||||||||||||
Balanced/asset allocation | - | 603 | - | 603 | |||||||||||||
Short-term fixed income | - | 711 | - | 711 | |||||||||||||
Fixed income | - | 5,858 | - | 5,858 | |||||||||||||
$ | - | $ | 12,200 | $ | - | $ | 12,200 | ||||||||||
Reconciliation of Level Three Investments for which Significant Unobservable Inputs were used to Determine Fair Value | ' | ||||||||||||||||
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value: | |||||||||||||||||
Year Ended | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
Balance at beginning of year | $ | 844 | |||||||||||||||
Unrealized appreciation | - | ||||||||||||||||
Reductions for assets transferred during the year | (844 | ) | |||||||||||||||
Balance at end of year | $ | - | |||||||||||||||
Estimated Benefits to be Paid from Pension Plan | ' | ||||||||||||||||
We estimate that the benefits to be paid from the pension plan for years ended December 31 are as follows: | |||||||||||||||||
Year | Benefit Payments to Participants | ||||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | 1,210 | |||||||||||||||
2015 | 863 | ||||||||||||||||
2016 | 1,878 | ||||||||||||||||
2017 | 595 | ||||||||||||||||
2018 | 1,120 | ||||||||||||||||
In aggregate for 2019 – 2023 | 5,418 |
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value of Derivative Financial Instruments Designated as Hedging Instruments and their Classification on Balance Sheet | ' | ||||||||||||||||||||
The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of December 31, 2013. | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||
Location | Location | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | Other Assets | $ | 1,755 | N/A | - | ||||||||||||||||
Total derivatives designated as hedging instruments | $ | 1,755 | - | ||||||||||||||||||
Schedule of Cash Flow Hedges | ' | ||||||||||||||||||||
The following table presents information about our cash flow hedges at December 31, 2013: | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Notional | Average | Weighted Average Rate | Estimated Fair | ||||||||||||||||||
Amount | Maturity | Received | Paid | Value | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||||
Interest rate swaps on FHLBB borrowings | $ | 20,000 | 3.8 | 0.24 | % | 1.17 | % | $ | 40 | ||||||||||||
Forward starting interest rate swaps on FHLBB borrowings | 135,000 | 7.2 | - | 2.93 | % | 1,715 | |||||||||||||||
Total cash flow hedges | $ | 155,000 | 6.8 | $ | 1,755 | ||||||||||||||||
Pre-Tax Net Gains (Losses) of Cash Flow Hedges | ' | ||||||||||||||||||||
The table below presents the pre-tax net gain of our cash flow hedges for the period indicated. | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Effective Portion: | (In thousands) | ||||||||||||||||||||
Amount of gain recognized in OCI | $ | 1,755 |
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Regulatory Capital | ' | ||||||||||||||||||||||||
As of December 31, 2013, the most recent notification from the OCC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Bank must maintain minimum total risk-based, Tier 1 risk based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category. | |||||||||||||||||||||||||
Actual | Minimum for Capital | Minimum To Be Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized Under Prompt | ||||||||||||||||||||||||
Corrective Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 164,605 | 21.17 | % | $ | 62,207 | 8 | % | N/A | - | |||||||||||||||
Bank | 157,484 | 20.3 | 62,073 | 8 | $ | 77,591 | 10 | % | |||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 157,119 | 20.21 | 31,104 | 4 | N/A | - | ||||||||||||||||||
Bank | 149,965 | 19.33 | 31,036 | 4 | 46,555 | 6 | |||||||||||||||||||
Tier 1 Capital (to Adjusted Total Assets): | |||||||||||||||||||||||||
Consolidated | $ | 157,119 | 12.28 | 51,193 | 4 | N/A | - | ||||||||||||||||||
Bank | 149,965 | 11.73 | 51,121 | 4 | 63,901 | 5 | |||||||||||||||||||
Tangible Equity (to Tangible Assets): | |||||||||||||||||||||||||
Consolidated | N/A | - | N/A | - | N/A | - | |||||||||||||||||||
Bank | 149,965 | 11.73 | 19,170 | 1.5 | N/A | - | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 186,084 | 25.41 | % | $ | 58,586 | 8 | % | N/A | - | |||||||||||||||
Bank | 176,904 | 24.24 | 58,390 | 8 | $ | 72,988 | 10 | % | |||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | 178,201 | 24.33 | 29,293 | 4 | N/A | - | |||||||||||||||||||
Bank | 169,191 | 23.18 | 29,195 | 4 | 43,793 | 6 | |||||||||||||||||||
Tier 1 Capital (to Adjusted Total Assets): | |||||||||||||||||||||||||
Consolidated | 178,201 | 13.91 | 51,239 | 4 | N/A | - | |||||||||||||||||||
Bank | 169,191 | 13.25 | 51,090 | 4 | 63,862 | 5 | |||||||||||||||||||
Tangible Equity (to Tangible Assets): | |||||||||||||||||||||||||
Consolidated | N/A | - | N/A | - | N/A | - | |||||||||||||||||||
Bank | 169,191 | 13.25 | 19,159 | 1.5 | N/A | - | |||||||||||||||||||
Reconciliation of Generally Accepted Accounting Principles Capital to Regulatory Tier One and Total Capital | ' | ||||||||||||||||||||||||
The following is a reconciliation of our GAAP capital to regulatory Tier 1 and total capital: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Consolidated GAAP capital | $ | 154,144 | $ | 189,187 | |||||||||||||||||||||
Unrealized losses (gains) on certain available-for-sale | |||||||||||||||||||||||||
securities, net of tax | 2,706 | (13,253 | ) | ||||||||||||||||||||||
Unrealized loss on defined benefit pension plan | 1,427 | 2,558 | |||||||||||||||||||||||
Accumulated net gain on cash flow hedges | (1,158 | ) | - | ||||||||||||||||||||||
Disallowed deferred tax asset | - | (291 | ) | ||||||||||||||||||||||
Tier 1 capital | 157,119 | 178,201 | |||||||||||||||||||||||
Unrealized gains on certain available-for-sale equity securities | 27 | 89 | |||||||||||||||||||||||
Allowance for loan losses | 7,459 | 7,794 | |||||||||||||||||||||||
Total regulatory capital | $ | 164,605 | $ | 186,084 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Income taxes consist of the following: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current tax provision: | |||||||||||||
Federal | $ | 795 | $ | 1,856 | $ | 1,179 | |||||||
State | 96 | 215 | 106 | ||||||||||
Total | 891 | 2,071 | 1,285 | ||||||||||
Deferred tax provision: | |||||||||||||
Federal | 980 | 184 | 21 | ||||||||||
State | - | 1 | - | ||||||||||
Total | 980 | 185 | 21 | ||||||||||
Total | $ | 1,871 | $ | 2,256 | $ | 1,306 | |||||||
Differences Between Statutory Federal Income Tax Rate and Effective Rates | ' | ||||||||||||
The reasons for the differences between the statutory federal income tax rate and the effective rates are summarized below: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal income tax rate | 34 | % | 34 | % | 34 | % | |||||||
Increase (decrease) resulting from: | |||||||||||||
State taxes, net of federal tax benefit | 0.7 | 1.7 | 1 | ||||||||||
Tax exempt income | (4.7 | ) | (6.4 | ) | (9.3 | ) | |||||||
Bank-owned life insurance (BOLI) | (6.1 | ) | (5.7 | ) | (7.1 | ) | |||||||
Gain on life insurance proceeds | (3.3 | ) | (0.3 | ) | - | ||||||||
Tax benefit of stock option buyout | (2.1 | ) | - | - | |||||||||
Surrender of BOLI policies | - | 1.9 | - | ||||||||||
Other, net | 3.2 | 1.3 | (0.4 | ) | |||||||||
Effective tax rate | 21.7 | % | 26.5 | % | 18.2 | % | |||||||
Rise in Deferred Taxes Due to Tax Effects | ' | ||||||||||||
The tax effects of each item that gives rise to deferred taxes are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 2,536 | $ | 2,650 | |||||||||
Employee benefit and share-based compensation plans | 2,071 | 2,970 | |||||||||||
Net unrealized loss on securities available for sale | 837 | - | |||||||||||
Net unrealized loss on securities held to maturity | 599 | - | |||||||||||
Defined benefit plan | 735 | 1,318 | |||||||||||
Other-than-temporary impairment write-down | 110 | 110 | |||||||||||
Other | 334 | 245 | |||||||||||
7,222 | 7,293 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Net unrealized gain on derivative and hedging activity | (597 | ) | - | ||||||||||
Net unrealized gain on securities available for sale | - | (6,935 | ) | ||||||||||
Deferred loan fees | (117 | ) | (179 | ) | |||||||||
Other | (174 | ) | (56 | ) | |||||||||
(888 | ) | (7,170 | ) | ||||||||||
Net deferred tax asset | $ | 6,334 | $ | 123 |
Transactions_with_Directors_an1
Transactions with Directors and Executive Officers (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Activity for Loans | ' | ||||||||
Following is a summary of activity for such loans: | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Balance at beginning of year | $ | 16,264 | $ | 19,518 | |||||
Principal distributions | 2,713 | 1,063 | |||||||
Repayments of principal | (2,635 | ) | (4,317 | ) | |||||
Change in related party status | (10,117 | ) | - | ||||||
Balance at end of year | $ | 6,225 | $ | 16,264 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Financial Instruments and Other Commitments and Contingent Liabilities | ' | ||||||||
The following summarizes these financial instruments and other commitments and contingent liabilities at their contract amounts: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Commitments to extend credit: | |||||||||
Unused lines of credit | $ | 99,899 | $ | 86,474 | |||||
Loan commitments | 10,260 | 14,984 | |||||||
Existing construction loan agreements | 14,667 | 22,641 | |||||||
Standby letters of credit | 1,728 | 2,190 | |||||||
Aggregate Future Minimum Rental Payments | ' | ||||||||
Aggregate future minimum rental payments under the terms of non-cancelable operating leases at December 31, 2013, are as follows: | |||||||||
Year Ending December 31, | Amount | ||||||||
(In thousands) | |||||||||
2014 | $ | 659 | |||||||
2015 | 630 | ||||||||
2016 | 508 | ||||||||
2017 | 406 | ||||||||
2018 | 370 | ||||||||
Thereafter | 9,073 | ||||||||
$ | 11,646 |
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||
Assets measured at fair value on a recurring basis are summarized below: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Securities available for sale: | (In thousands) | ||||||||||||||||||||
Government-sponsored residential mortgage-backed securities | $ | - | $ | 132,372 | $ | - | $ | 132,372 | |||||||||||||
U.S. government guaranteed residential mortgage-backed securities | - | 46,328 | - | 46,328 | |||||||||||||||||
Corporate bonds | - | 27,389 | - | 27,389 | |||||||||||||||||
State and municipal bonds | - | 18,897 | - | 18,897 | |||||||||||||||||
Government-sponsored enterprise obligations | - | 10,700 | - | 10,700 | |||||||||||||||||
Mutual funds | 5,919 | - | - | 5,919 | |||||||||||||||||
Common and preferred stock | 1,599 | - | - | 1,599 | |||||||||||||||||
Total securities available for sale | 7,518 | 235,686 | - | 243,204 | |||||||||||||||||
Interest rate swaps | - | 1,755 | - | 1,755 | |||||||||||||||||
Total assets | $ | 7,518 | $ | 237,441 | $ | - | $ | 244,959 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Securities available for sale: | (In thousands) | ||||||||||||||||||||
Government-sponsored residential mortgage-backed securities | $ | - | $ | 328,023 | $ | - | $ | 328,023 | |||||||||||||
U.S. government guaranteed residential mortgage-backed securities | - | 130,735 | - | 130,735 | |||||||||||||||||
Private-label residential mortgage-backed securities | - | 52,337 | - | 52,337 | |||||||||||||||||
State and municipal bonds | - | 40,846 | - | 40,846 | |||||||||||||||||
Government-sponsored enterprise obligations | - | 62,060 | - | 62,060 | |||||||||||||||||
Mutual funds | 6,046 | - | - | 6,046 | |||||||||||||||||
Common and preferred stock | 1,460 | - | - | 1,460 | |||||||||||||||||
Total assets | $ | 7,506 | $ | 614,001 | $ | - | $ | 621,507 | |||||||||||||
Fair Value Hierarchy used to Determine each Adjustment and Carrying Value of Assets Measured on Non-Recurring Basis | ' | ||||||||||||||||||||
The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets as of December 31, 2013 and 2012. | |||||||||||||||||||||
At | Year Ended | ||||||||||||||||||||
31-Dec-13 | 31-Dec-13 | ||||||||||||||||||||
Total | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Losses | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | - | $ | - | $ | 2,069 | $ | (31 | ) | ||||||||||||
Total assets | $ | - | $ | - | $ | 2,069 | $ | (31 | ) | ||||||||||||
At | Year Ended | ||||||||||||||||||||
31-Dec-12 | 31-Dec-12 | ||||||||||||||||||||
Total | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Losses | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | - | $ | - | $ | 1,229 | $ | 160 | |||||||||||||
Other real estate owned | - | - | 964 | (166 | ) | ||||||||||||||||
Total assets | $ | - | $ | - | $ | 2,193 | $ | (6 | ) | ||||||||||||
Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||||||
The estimated fair values of our financial instruments are as follows: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Value | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 19,742 | $ | 19,742 | $ | - | $ | - | $ | 19,742 | |||||||||||
Securities available for sale | 243,204 | 7,518 | 237,441 | - | 243,204 | ||||||||||||||||
Securities held to maturity | 295,013 | - | 282,555 | - | 282,555 | ||||||||||||||||
Federal Home Loan Bank of Boston and other restricted stock | 15,631 | - | - | 15,631 | 15,631 | ||||||||||||||||
Loans - net | 629,968 | - | - | 631,417 | 631,417 | ||||||||||||||||
Accrued interest receivable | 4,201 | - | - | 4,201 | 4,201 | ||||||||||||||||
Derivative assets | 1,755 | - | 1,755 | - | 1,755 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | 817,112 | - | - | 819,109 | 819,109 | ||||||||||||||||
Short-term borrowings | 48,197 | - | 48,197 | - | 48,197 | ||||||||||||||||
Long-term debt | 248,377 | - | 251,678 | - | 251,678 | ||||||||||||||||
Accrued interest payable | 392 | - | - | 392 | 392 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Value | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 11,761 | $ | 11,761 | $ | - | $ | - | $ | 11,761 | |||||||||||
Securities available for sale | 621,507 | 7,506 | 614,001 | - | 621,507 | ||||||||||||||||
Federal Home Loan Bank of Boston and other restricted stock | 14,269 | - | - | 14,269 | 14,269 | ||||||||||||||||
Loans - net | 587,124 | - | - | 610,695 | 610,695 | ||||||||||||||||
Accrued interest receivable | 4,602 | - | - | 4,602 | 4,602 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | 753,413 | - | - | 757,450 | 757,450 | ||||||||||||||||
Short-term borrowings | 69,934 | - | 69,936 | - | 69,936 | ||||||||||||||||
Long-term debt | 278,861 | - | 290,536 | - | 290,536 | ||||||||||||||||
Accrued interest payable | 471 | - | - | 471 | 471 |
Condensed_Parent_Company_Finan1
Condensed Parent Company Financial Statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Balance Sheets of Parent Company | ' | ||||||||||||
The condensed balance sheets of the parent company are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
ASSETS: | |||||||||||||
Cash equivalents | $ | 158 | $ | 572 | |||||||||
Securities available for sale | 1,599 | 2,772 | |||||||||||
Investment in subsidiaries | 146,951 | 179,784 | |||||||||||
ESOP loan receivable | 9,269 | 9,716 | |||||||||||
Other assets | 5,912 | 6,142 | |||||||||||
TOTAL ASSETS | 163,889 | 198,986 | |||||||||||
LIABILITIES: | |||||||||||||
ESOP loan payable | 9,269 | 9,716 | |||||||||||
Other liabilities | 476 | 83 | |||||||||||
EQUITY | 154,144 | 189,187 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 163,889 | $ | 198,986 | |||||||||
Condensed Statements of Income for Parent Company | ' | ||||||||||||
The condensed statements of income for the parent company are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
INCOME: | |||||||||||||
Dividends from subsidiaries | $ | 26,964 | $ | 42,372 | $ | 21,661 | |||||||
Interest income from securities | 16 | 68 | 98 | ||||||||||
ESOP loan interest income | 777 | 813 | 848 | ||||||||||
Gain (loss) on sale of securities, net | 3 | - | 134 | ||||||||||
Other income | - | - | 1 | ||||||||||
Total income | 27,760 | 43,253 | 22,742 | ||||||||||
OPERATING EXPENSE: | |||||||||||||
Salaries and employee benefits | 879 | 2,262 | 2,670 | ||||||||||
ESOP interest expense | 777 | 813 | 848 | ||||||||||
Other | 586 | 511 | 762 | ||||||||||
Total operating expense | 2,242 | 3,586 | 4,280 | ||||||||||
INCOME BEFORE EQUITY IN UNDISTRIBUTED | |||||||||||||
INCOME OF SUBSIDIARIES AND INCOME TAXES | 25,518 | 39,667 | 18,462 | ||||||||||
EQUITY IN UNDISTRIBUTED LOSS OF | (19,073 | ) | (34,130 | ) | (13,237 | ) | |||||||
SUBSIDIARIES | |||||||||||||
NET INCOME BEFORE TAXES | 6,445 | 5,537 | 5,225 | ||||||||||
INCOME TAX BENEFIT | (311 | ) | (717 | ) | (649 | ) | |||||||
NET INCOME | $ | 6,756 | $ | 6,254 | $ | 5,874 | |||||||
Condensed Statements of Cash Flows of Parent Company | ' | ||||||||||||
The condensed statements of cash flows of the parent company are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
OPERATING ACTIVITIES: | |||||||||||||
Net income | $ | 6,756 | $ | 6,254 | $ | 5,874 | |||||||
Dividends in excess of earnings of subsidiaries | 19,073 | 34,130 | 13,237 | ||||||||||
Net amortization of premiums and discounts on securities | - | - | 1 | ||||||||||
Net realized securities gains | (3 | ) | - | (134 | ) | ||||||||
Change in other liabilities | 198 | 36 | (10 | ) | |||||||||
Change in other assets | (487 | ) | (271 | ) | 29 | ||||||||
Other, net | 1,422 | 2,089 | 2,439 | ||||||||||
Net cash provided by operating activities | 26,959 | 42,238 | 21,799 | ||||||||||
INVESTING ACTIVITIES: | |||||||||||||
Purchase of securities | (349 | ) | (1,533 | ) | (1,095 | ) | |||||||
Proceeds from principal collections | 1,307 | 575 | 1 | ||||||||||
Sale of securities | 352 | 566 | 3,299 | ||||||||||
Net cash provided by (used in) investing activities | 1,310 | (392 | ) | 2,205 | |||||||||
FINANCING ACTIVITIES: | |||||||||||||
Cash dividends paid | (5,872 | ) | (10,721 | ) | (14,305 | ) | |||||||
Common stock repurchased | (20,093 | ) | (32,083 | ) | (9,708 | ) | |||||||
Tender offer to purchase outstanding options | (2,151 | ) | - | - | |||||||||
Excess tax expense in connection with tender offer completion | (566 | ) | |||||||||||
Excess tax (shortfall) benefit from share-based compensation | (1 | ) | 144 | (4 | ) | ||||||||
Issuance of common stock to ESOP | - | - | 15 | ||||||||||
Issuance of common stock in connection with stock option exercises | - | 1,041 | 359 | ||||||||||
Repayment of long-term debt | - | (446 | ) | (446 | ) | ||||||||
Net cash used in financing activities | (28,683 | ) | (42,065 | ) | (24,452 | ) | |||||||
NET DECREASE IN CASH AND | |||||||||||||
CASH EQUIVALENTS | (414 | ) | (219 | ) | (448 | ) | |||||||
CASH AND CASH EQUIVALENTS | |||||||||||||
Beginning of year | 572 | 791 | 1,239 | ||||||||||
End of year | $ | 158 | $ | 572 | $ | 791 | |||||||
Supplemental cashflow information: | |||||||||||||
Net cash due to (from) broker for common stock repurchased | 299 | (352 | ) | 352 |
Summary_of_Quarterly_Financial1
Summary of Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information | ' | ||||||||||||||||
The following tables present a summary of our quarterly financial information for the periods indicated. The year to date totals may differ slightly due to rounding. | |||||||||||||||||
2013 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Interest and dividend income | $ | 10,349 | $ | 10,246 | $ | 10,348 | $ | 10,089 | |||||||||
Interest expense | 2,679 | 2,609 | 2,520 | 2,482 | |||||||||||||
Net interest and dividend income | 7,670 | 7,637 | 7,828 | 7,607 | |||||||||||||
Provision for loan losses | (235 | ) | (70 | ) | (71 | ) | 120 | ||||||||||
Other noninterest income | 957 | 981 | 1,003 | 1,013 | |||||||||||||
Gain on bank-owned life insurance | - | 563 | - | - | |||||||||||||
Loss on prepayment of borrowings | (1,426 | ) | (1,404 | ) | (540 | ) | - | ||||||||||
Gain on sales of securities, net | 1,427 | 823 | 546 | 330 | |||||||||||||
Noninterest expense | 6,515 | 6,789 | 6,851 | 6,488 | |||||||||||||
Income before income taxes | 2,348 | 1,881 | 2,057 | 2,342 | |||||||||||||
Income tax provision | 566 | 297 | 476 | 533 | |||||||||||||
Net income | $ | 1,782 | $ | 1,584 | $ | 1,581 | $ | 1,809 | |||||||||
Basic earnings per share | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.09 | |||||||||
Diluted earnings per share | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.09 | |||||||||
2012 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Interest and dividend income | $ | 10,715 | $ | 10,910 | $ | 10,853 | $ | 10,626 | |||||||||
Interest expense | 3,298 | 3,183 | 3,150 | 3,032 | |||||||||||||
Net interest and dividend income | 7,417 | 7,727 | 7,703 | 7,594 | |||||||||||||
Provision for loan losses | 220 | 260 | 218 | - | |||||||||||||
Other noninterest income | 968 | 804 | 1,007 | 1,321 | |||||||||||||
Loss on sale of OREO | - | - | - | (1,017 | ) | ||||||||||||
Gain on sales of securities, net | 1,585 | 97 | 174 | 1,051 | |||||||||||||
Noninterest expense | 6,844 | 6,833 | 6,798 | 6,748 | |||||||||||||
Income before income taxes | 2,906 | 1,535 | 1,868 | 2,201 | |||||||||||||
Income tax provision | 567 | 561 | 481 | 647 | |||||||||||||
Net income | $ | 2,339 | $ | 974 | $ | 1,387 | $ | 1,554 | |||||||||
Basic earnings per share | $ | 0.09 | $ | 0.04 | $ | 0.06 | $ | 0.07 | |||||||||
Diluted earnings per share | $ | 0.09 | $ | 0.04 | $ | 0.06 | $ | 0.07 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Reserve for unfunded commitments | $60,000 | $60,000 | ' |
Accumulated other comprehensive income, actuarial loss | -117,000 | -175,000 | -116,000 |
Accumulated other comprehensive income, transition asset | 12,000 | ' | ' |
Accumulated Other Comprehensive (Loss) Income | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Accumulated other comprehensive income, actuarial loss | 117,000 | ' | ' |
401 (k) | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Employer matching contribution for the first 6% of each participant's annual earnings | 50.00% | ' | ' |
Maximum percentage of participant's annual earnings subject to match by employer for 401(K) plan | 6.00% | ' | ' |
Residential real estate | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Requirement for private mortgage insurance, loan-to-value ratio | 80.00% | ' | ' |
Federal Reserve Bank of Boston | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Cash and cash equivalents, partially restricted cash | 0 | 0 | ' |
Bankers Bank Northeast | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Required cash reserve | $975,000 | $925,000 | ' |
West Massachusetts | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of banking offices in which bank operates | 11 | ' | ' |
Granby, Connecticut | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of banking offices in which bank operates | 1 | ' | ' |
Estimated_Useful_Lives_of_Asse
Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Building | ' |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | ' |
Property plant and equipment estimated useful lives | '39 years |
Leasehold Improvements | Minimum | ' |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | ' |
Property plant and equipment estimated useful lives | '5 years |
Leasehold Improvements | Maximum | ' |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | ' |
Property plant and equipment estimated useful lives | '20 years |
Furniture and Equipment | Minimum | ' |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | ' |
Property plant and equipment estimated useful lives | '3 years |
Furniture and Equipment | Maximum | ' |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | ' |
Property plant and equipment estimated useful lives | '7 years |
Earning_Per_Common_Share_Detai
Earning Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income applicable to common stock | $1,809 | $1,581 | $1,584 | $1,782 | $1,554 | $1,387 | $974 | $2,339 | $6,756 | $6,254 | $5,874 | |||
Average number of common shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 21,254,000 | 25,763,000 | 27,839,000 | |||
Less: Average unallocated ESOP Shares | ' | ' | ' | ' | ' | ' | ' | ' | -1,171,000 | -1,254,000 | -1,339,000 | |||
Less: Average ungranted equity incentive plan shares | ' | ' | ' | ' | ' | ' | ' | ' | -4,000 | -7,000 | -18,000 | |||
Average number of common shares outstanding used to calculate basic earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | 20,079,251 | 24,501,951 | 26,482,064 | |||
Effect of dilutive stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000 | 107,000 | |||
Average number of common shares outstanding used to calculate diluted earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | 20,079,265 | 24,519,515 | 26,589,510 | |||
Basic earnings per share | $0.09 | $0.08 | $0.08 | $0.08 | $0.07 | $0.06 | $0.04 | $0.09 | $0.34 | $0.26 | $0.22 | |||
Diluted earnings per share | $0.09 | $0.08 | $0.08 | $0.08 | $0.07 | $0.06 | $0.04 | $0.09 | $0.34 | $0.26 | $0.22 | |||
Antidilutive shares | ' | ' | ' | ' | ' | ' | ' | ' | 833,000 | [1] | 1,666,000 | [1] | 1,641,000 | [1] |
[1] | Shares outstanding but not included in the computation of earnings per share because they were anti-dilutive, meaning the exercise price of such options exceeded the market value of our common stock. |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Net unrealized (losses) gains on securities available for sale | ($2,410) | $20,188 |
Tax effect | 837 | -6,935 |
Net-of-tax amount | -1,573 | 13,253 |
Unamortized losses on securities transferred from available-for-sale to held-to-maturity | -1,732 | ' |
Tax effect | 599 | ' |
Net-of-tax amount | -1,133 | ' |
Fair value of derivatives used for cash flow hedges | 1,755 | ' |
Tax effect | -597 | ' |
Net-of-tax amount | 1,158 | ' |
Unrecognized transition asset pertaining to defined benefit plan | 10 | 21 |
Unrecognized deferred loss pertaining to defined benefit plan | -2,172 | -3,897 |
Net adjustments pertaining to defined benefit plans | -2,162 | -3,876 |
Tax effect | 735 | 1,318 |
Net-of-tax amount | -1,427 | -2,558 |
Accumulated other comprehensive (loss) income | ($2,975) | $10,695 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | $10,695 | ' | ' |
Current-period other comprehensive (loss) income | -13,670 | 2,979 | 13,232 |
Ending Balance | -2,975 | 10,695 | ' |
Securities | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 13,253 | 10,321 | ' |
Current-period other comprehensive (loss) income | -15,959 | 2,932 | ' |
Ending Balance | -2,706 | 13,253 | ' |
Derivatives | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Current-period other comprehensive (loss) income | 1,158 | ' | ' |
Ending Balance | 1,158 | ' | ' |
Defined Benefit Pension Plans | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -2,558 | -2,605 | ' |
Current-period other comprehensive (loss) income | 1,131 | 47 | ' |
Ending Balance | -1,427 | -2,558 | ' |
Accumulated Other Comprehensive (Loss) Income | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 10,695 | 7,716 | ' |
Current-period other comprehensive (loss) income | -13,670 | 2,979 | ' |
Ending Balance | ($2,975) | $10,695 | ' |
Marketable_Securities_Detail
Marketable Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Marketable Securities [Line Items] | ' | ' |
Marketable Securities, Amortized Cost | $540,627 | $601,319 |
Marketable Securities, Gross Unrealized Gains | 2,434 | 20,997 |
Marketable Securities, Gross Unrealized Losses | -17,302 | -809 |
Marketable Securities, Fair Value | $525,759 | $621,507 |
Securities_Available_for_Sale_
Securities Available for Sale (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | $245,614 | $601,319 |
Available for sale, Gross Unrealized Gains | 2,399 | 20,997 |
Available for sale, Gross Unrealized Losses | -4,809 | -809 |
Available for sale, Fair Value | 243,204 | 621,507 |
Government sponsored residential mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 135,981 | 318,951 |
Available for sale, Gross Unrealized Gains | 419 | 9,703 |
Available for sale, Gross Unrealized Losses | -4,028 | -631 |
Available for sale, Fair Value | 132,372 | 328,023 |
U.S. government guaranteed mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 46,225 | 124,650 |
Available for sale, Gross Unrealized Gains | 240 | 6,085 |
Available for sale, Gross Unrealized Losses | -137 | ' |
Available for sale, Fair Value | 46,328 | 130,735 |
Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 26,716 | 50,782 |
Available for sale, Gross Unrealized Gains | 766 | 1,618 |
Available for sale, Gross Unrealized Losses | -93 | -63 |
Available for sale, Fair Value | 27,389 | 52,337 |
State and municipal bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 18,240 | 38,788 |
Available for sale, Gross Unrealized Gains | 659 | 2,067 |
Available for sale, Gross Unrealized Losses | -2 | -9 |
Available for sale, Fair Value | 18,897 | 40,846 |
Government sponsored enterprise obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 10,992 | 60,840 |
Available for sale, Gross Unrealized Gains | 18 | 1,257 |
Available for sale, Gross Unrealized Losses | -310 | -37 |
Available for sale, Fair Value | 10,700 | 62,060 |
Mutual funds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 6,150 | 5,998 |
Available for sale, Gross Unrealized Gains | 8 | 117 |
Available for sale, Gross Unrealized Losses | -239 | -69 |
Available for sale, Fair Value | 5,919 | 6,046 |
Common and preferred stock | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 1,310 | 1,310 |
Available for sale, Gross Unrealized Gains | 289 | 150 |
Available for sale, Fair Value | $1,599 | $1,460 |
Securities_Held_to_Maturity_De
Securities Held to Maturity (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Held-to-maturity Securities [Line Items] | ' |
Held to maturity, Amortized Cost | $295,013 |
Held to maturity, Gross Unrealized Gains | 35 |
Held to maturity, Gross Unrealized Losses | -12,493 |
Held to Maturity Securities, Fair Value, Total | 282,555 |
Government sponsored residential mortgage-backed securities | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' |
Held to maturity, Amortized Cost | 176,986 |
Held to maturity, Gross Unrealized Losses | -6,819 |
Held to Maturity Securities, Fair Value, Total | 170,167 |
U.S. government guaranteed mortgage-backed securities | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' |
Held to maturity, Amortized Cost | 39,705 |
Held to maturity, Gross Unrealized Losses | -1,391 |
Held to Maturity Securities, Fair Value, Total | 38,314 |
Corporate bonds | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' |
Held to maturity, Amortized Cost | 27,566 |
Held to maturity, Gross Unrealized Gains | 30 |
Held to maturity, Gross Unrealized Losses | -567 |
Held to Maturity Securities, Fair Value, Total | 27,029 |
State and municipal bonds | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' |
Held to maturity, Amortized Cost | 7,351 |
Held to maturity, Gross Unrealized Gains | 5 |
Held to maturity, Gross Unrealized Losses | -345 |
Held to Maturity Securities, Fair Value, Total | 7,011 |
Government sponsored enterprise obligations | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' |
Held to maturity, Amortized Cost | 43,405 |
Held to maturity, Gross Unrealized Losses | -3,371 |
Held to Maturity Securities, Fair Value, Total | $40,034 |
Amortized_Cost_and_Fair_Value_
Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity by Final Maturity (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' |
Held to Maturity Securities, Amortized Cost, Total | $295,013 |
Held to Maturity Securities, Fair Value, Total | 282,555 |
Mortgage Backed Securities | ' |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' |
Available for Sale Securities, Amortized Cost, Due after five years through ten years | 39,482 |
Available for Sale Securities, Amortized Cost, Due after ten years | 142,724 |
Available for Sale Securities, Amortized Cost, Total | 182,206 |
Available for Sale Securities, Fair Value, Due after five years through ten years | 37,783 |
Available for Sale Securities, Fair Value, Due after ten years | 140,917 |
Available for Sale Securities, Fair Value, Total | 178,700 |
Held to Maturity Securities, Amortized Cost, Due after five years through ten years | 44,261 |
Held to Maturity Securities, Amortized Cost, Due after ten years | 172,430 |
Held to Maturity Securities, Amortized Cost, Total | 216,691 |
Held to Maturity Securities, Fair Value, Due after five years through ten years | 41,476 |
Held to Maturity Securities, Fair Value, Due after ten years | 167,005 |
Held to Maturity Securities, Fair Value, Total | 208,481 |
Debt Securities, Excluding Mortgage-Backed Securities | ' |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' |
Available for Sale Securities, Amortized Cost, Due in one year or less | ' |
Available for Sale Securities, Amortized Cost, Due after one year through five years | 34,533 |
Available for Sale Securities, Amortized Cost, Due after five years through ten years | 21,230 |
Available for Sale Securities, Amortized Cost, Due after ten years | 185 |
Available for Sale Securities, Amortized Cost, Total | 55,948 |
Available for Sale Securities, Fair Value, Due in one year or less | ' |
Available for Sale Securities, Fair Value, Due after one year through five years | 35,204 |
Available for Sale Securities, Fair Value, Due after five years through ten years | 21,586 |
Available for Sale Securities, Fair Value, Due after ten years | 196 |
Available for Sale Securities, Fair Value, Total | 56,986 |
Held to Maturity Securities, Amortized Cost, Due in one year or less | ' |
Held to Maturity Securities, Amortized Cost, Due after one year through five years | 14,751 |
Held to Maturity Securities, Amortized Cost, Due after five years through ten years | 48,014 |
Held to Maturity Securities, Amortized Cost, Due after ten years | 15,557 |
Held to Maturity Securities, Amortized Cost, Total | 78,322 |
Held to Maturity Securities, Fair Value, Due in one year or less | ' |
Held to Maturity Securities, Fair Value, Due after one year through five years | 14,486 |
Held to Maturity Securities, Fair Value, Due after five years through ten years | 45,268 |
Held to Maturity Securities, Fair Value, Due after ten years | 14,320 |
Held to Maturity Securities, Fair Value, Total | $74,074 |
Gross_Realized_Gains_and_Losse
Gross Realized Gains and Losses on Sales of Securities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gain (Loss) on Investments [Line Items] | ' | ' | ' |
Gross gains realized | $3,978 | $4,068 | $1,901 |
Gross losses realized | -852 | -1,161 | -1,487 |
Net gain realized | $3,126 | $2,907 | $414 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Investments [Line Items] | ' | ' | ' |
Proceeds from sales | $206,788,000 | $288,116,000 | $203,665,000 |
Provision of tax applicable to net realized gains and losses on sale of securities | 1,100,000 | 1,000,000 | 144,000 |
Credit losses on mortgage-backed securities for which a portion of other-than-temporary impairment was recognized in other comprehensive income (loss) eliminated for securities sold | ' | $442,000 | ' |
Government sponsored residential mortgage-backed securities | Unrealized loss positions, less than 12 Months | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Securities in gross unrealized loss | 73 | ' | ' |
Securities in gross unrealized loss, aggregate depreciation from amortized cost basis existing for less than twelve months | 3.40% | ' | ' |
Government sponsored residential mortgage-backed securities | Unrealized loss positions, greater than 12 Months | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Securities in gross unrealized loss | 9 | ' | ' |
Securities in gross unrealized loss, aggregate depreciation from amortized cost basis existing for greater than twelve months | 4.40% | ' | ' |
Government Sponsored Enterprises | Unrealized loss positions, less than 12 Months | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Securities in gross unrealized loss | 13 | ' | ' |
Securities in gross unrealized loss, aggregate depreciation from amortized cost basis existing for less than twelve months | 7.40% | ' | ' |
Government Sponsored Enterprises | Unrealized loss positions, greater than 12 Months | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Securities in gross unrealized loss | 1 | ' | ' |
Securities in gross unrealized loss, aggregate depreciation from amortized cost basis existing for greater than twelve months | 2.20% | ' | ' |
Corporate bonds | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Securities in gross unrealized loss | 10 | ' | ' |
Securities in gross unrealized loss, aggregate depreciation from amortized cost basis existing for less than twelve months | 2.40% | ' | ' |
State and Municipal Debt Obligations | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Securities in gross unrealized loss | 14 | ' | ' |
Securities in gross unrealized loss, aggregate depreciation from amortized cost basis existing for less than twelve months | 5.40% | ' | ' |
Mutual funds | Unrealized loss positions, less than 12 Months | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Securities in gross unrealized loss | 1 | ' | ' |
Securities in gross unrealized loss, aggregate depreciation from amortized cost basis existing for less than twelve months | 2.60% | ' | ' |
Mutual funds | Unrealized loss positions, greater than 12 Months | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Securities in gross unrealized loss | 1 | ' | ' |
Securities in gross unrealized loss, aggregate depreciation from amortized cost basis existing for greater than twelve months | 8.60% | ' | ' |
Securities_with_Gross_Unrealiz
Securities with Gross Unrealized Losses in Continuous Loss Position (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' | ' |
Available for sale, Less Than 12 Months Gross Unrealized Losses | $4,343 | $740 |
Available for sale, Less Than 12 Months Fair Value | 149,200 | 72,507 |
Available for sale, Over 12 Months Gross Unrealized Losses | 466 | 69 |
Available for sale, Over 12 Months Fair Value | 4,417 | 1,684 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 11,499 | ' |
Held to maturity, Less Than 12 Months Fair Value | 249,891 | ' |
Held to maturity, Over 12 Months Gross Unrealized Losses | 994 | ' |
Held to maturity, Over 12 Months Fair Value | 26,535 | ' |
Marketable Securities, Less Than 12 Months Gross Unrealized Losses | 15,842 | ' |
Marketable Securities, Less Than 12 Months Fair Value | 399,091 | ' |
Marketable Securities, Over 12 Months Gross Unrealized Losses | 1,460 | ' |
Marketable Securities, Over 12 Months Fair Value | 30,952 | ' |
Government sponsored residential mortgage-backed securities | ' | ' |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' | ' |
Available for sale, Less Than 12 Months Gross Unrealized Losses | 3,717 | 631 |
Available for sale, Less Than 12 Months Fair Value | 118,846 | 49,081 |
Available for sale, Over 12 Months Gross Unrealized Losses | 311 | ' |
Available for sale, Over 12 Months Fair Value | 2,761 | ' |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 5,866 | ' |
Held to maturity, Less Than 12 Months Fair Value | 145,438 | ' |
Held to maturity, Over 12 Months Gross Unrealized Losses | 953 | ' |
Held to maturity, Over 12 Months Fair Value | 24,729 | ' |
U.S. government guaranteed mortgage-backed securities | ' | ' |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' | ' |
Available for sale, Less Than 12 Months Gross Unrealized Losses | 137 | ' |
Available for sale, Less Than 12 Months Fair Value | 15,045 | ' |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 1,391 | ' |
Held to maturity, Less Than 12 Months Fair Value | 38,314 | ' |
Corporate bonds | ' | ' |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' | ' |
Available for sale, Less Than 12 Months Gross Unrealized Losses | 93 | 63 |
Available for sale, Less Than 12 Months Fair Value | 4,659 | 4,330 |
Available for sale, Over 12 Months Gross Unrealized Losses | ' | ' |
Available for sale, Over 12 Months Fair Value | ' | ' |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 567 | ' |
Held to maturity, Less Than 12 Months Fair Value | 22,059 | ' |
State and municipal bonds | ' | ' |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' | ' |
Available for sale, Less Than 12 Months Gross Unrealized Losses | 2 | 9 |
Available for sale, Less Than 12 Months Fair Value | 256 | 1,178 |
Available for sale, Over 12 Months Gross Unrealized Losses | ' | ' |
Available for sale, Over 12 Months Fair Value | ' | ' |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 345 | ' |
Held to maturity, Less Than 12 Months Fair Value | 5,852 | ' |
Government sponsored enterprise obligations | ' | ' |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' | ' |
Available for sale, Less Than 12 Months Gross Unrealized Losses | 310 | 37 |
Available for sale, Less Than 12 Months Fair Value | 7,189 | 17,918 |
Available for sale, Over 12 Months Gross Unrealized Losses | ' | ' |
Available for sale, Over 12 Months Fair Value | ' | ' |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 3,330 | ' |
Held to maturity, Less Than 12 Months Fair Value | 38,228 | ' |
Held to maturity, Over 12 Months Gross Unrealized Losses | 41 | ' |
Held to maturity, Over 12 Months Fair Value | 1,806 | ' |
Mutual funds | ' | ' |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ' | ' |
Available for sale, Less Than 12 Months Gross Unrealized Losses | 84 | ' |
Available for sale, Less Than 12 Months Fair Value | 3,205 | ' |
Available for sale, Over 12 Months Gross Unrealized Losses | 155 | 69 |
Available for sale, Over 12 Months Fair Value | $1,656 | $1,684 |
Loans_Detail
Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans | $636,660 | $593,944 | ' | ' |
Unearned premiums and deferred loan fees and costs, net | 767 | 974 | ' | ' |
Allowance for loan losses | -7,459 | -7,794 | -7,764 | -6,934 |
Loans, net | 629,968 | 587,124 | ' | ' |
Commercial real estate | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans | 264,476 | 245,764 | ' | ' |
Allowance for loan losses | -3,549 | -3,406 | -3,504 | -3,182 |
Residential real estate | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans | 198,686 | 185,345 | ' | ' |
Home equity | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans | 35,371 | 34,352 | ' | ' |
Commercial and industrial | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans | 135,555 | 126,052 | ' | ' |
Allowance for loan losses | -2,192 | -2,167 | -2,712 | -2,849 |
Consumer | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans | 2,572 | 2,431 | ' | ' |
Allowance for loan losses | ($13) | ($13) | ($17) | ($26) |
Loans_Additional_Information_D
Loans - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Troubled Debt Restructuring | Troubled Debt Restructuring | Loan consisting one commercial real estate loan and one commercial industrial loan | Loan consisting of three commercial real estate loans and three commercial industrial loans | Loan consisting of two commercial and industrial loans | Loan consisting of two commercial and industrial loans | Loan consisting of two commercial and industrial loans | Mortgages | Mortgages | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial Real Estate Loans Sold | Commercial Real Estate Loans Sold | ||||
Contract | Contract | Minimum | Maximum | Troubled Debt Restructuring | Minimum | Maximum | |||||||||||||
Contract | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of residential mortgages | $37,700,000 | $62,895,000 | $58,241,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance of loans serviced for participants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,300,000 | 7,800,000 |
Loan restructured | ' | ' | ' | ' | ' | 14,800,000 | 1,000,000 | 150,000 | ' | ' | ' | ' | ' | 126,000 | ' | ' | ' | ' | ' |
Number of Contracts | ' | ' | ' | 0 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' |
Loan remaining amortization period | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | ' | ' | ' | ' | ' | '7 years | '10 years | ' | ' |
Construction loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,400,000 | 16,300,000 | ' | ' | ' | ' | ' |
Unpaid balances for loan serviced for others | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Net service fee income | $5,000 | $7,000 | $12,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes_in_Allowance_for_Loan_
Changes in Allowance for Loan Losses by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | $7,794 | ' | ' | $7,764 | $7,794 | $7,764 | $6,934 |
Provision (credit) | 120 | -71 | -70 | -235 | 218 | 260 | 220 | -256 | 698 | 1,206 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | -341 | -768 | -640 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | 262 | 100 | 264 |
Ending Balance | 7,459 | ' | ' | ' | ' | ' | ' | 7,459 | 7,794 | 7,764 |
Commercial real estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 3,406 | ' | ' | 3,504 | 3,406 | 3,504 | 3,182 |
Provision (credit) | ' | ' | ' | ' | ' | ' | ' | 9 | 19 | 357 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | -20 | -195 | -175 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | 155 | 78 | 140 |
Ending Balance | 3,549 | ' | ' | ' | ' | ' | ' | 3,549 | 3,406 | 3,504 |
Residential real estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 1,746 | ' | ' | 1,531 | 1,746 | 1,531 | 877 |
Provision (credit) | ' | ' | ' | ' | ' | ' | ' | 40 | 365 | 647 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | -80 | -155 | -2 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | 1 | 5 | 9 |
Ending Balance | 1,707 | ' | ' | ' | ' | ' | ' | 1,707 | 1,746 | 1,531 |
Commercial and industrial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 2,167 | ' | ' | 2,712 | 2,167 | 2,712 | 2,849 |
Provision (credit) | ' | ' | ' | ' | ' | ' | ' | 148 | -161 | 215 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | -208 | -391 | -442 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | 84 | 7 | 90 |
Ending Balance | 2,192 | ' | ' | ' | ' | ' | ' | 2,192 | 2,167 | 2,712 |
Consumer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 13 | ' | ' | 17 | 13 | 17 | 26 |
Provision (credit) | ' | ' | ' | ' | ' | ' | ' | 11 | 13 | -13 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | -33 | -27 | -21 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | 22 | 10 | 25 |
Ending Balance | 13 | ' | ' | ' | ' | ' | ' | 13 | 13 | 17 |
Unallocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 462 | ' | ' | ' | 462 | ' | ' |
Provision (credit) | ' | ' | ' | ' | ' | ' | ' | -464 | 462 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | ($2) | ' | ' | ' | ' | ' | ' | ($2) | $462 | ' |
Allowance_for_Loan_Losses_by_S
Allowance for Loan Losses by Segment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Amount of allowance for loans individually evaluated and deemed impaired | $97 | $538 | ' | ' |
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 7,362 | 7,256 | ' | ' |
Total allowance for loan losses | 7,459 | 7,794 | 7,764 | 6,934 |
Loans individually evaluated and deemed impaired | 16,548 | 17,079 | ' | ' |
Loan collectively evaluated and not deemed impaired | 620,112 | 576,865 | ' | ' |
Total loans | 636,660 | 593,944 | ' | ' |
Commercial real estate | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Amount of allowance for loans individually evaluated and deemed impaired | 82 | 377 | ' | ' |
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 3,467 | 3,029 | ' | ' |
Total allowance for loan losses | 3,549 | 3,406 | 3,504 | 3,182 |
Loans individually evaluated and deemed impaired | 14,962 | 15,398 | ' | ' |
Loan collectively evaluated and not deemed impaired | 249,514 | 230,366 | ' | ' |
Total loans | 264,476 | 245,764 | ' | ' |
Residential real estate | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Amount of allowance for loans individually evaluated and deemed impaired | ' | 57 | ' | ' |
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 1,707 | 1,689 | ' | ' |
Total allowance for loan losses | 1,707 | 1,746 | 1,531 | 877 |
Loans individually evaluated and deemed impaired | 234 | 302 | ' | ' |
Loan collectively evaluated and not deemed impaired | 233,823 | 219,395 | ' | ' |
Total loans | 234,057 | 219,697 | ' | ' |
Commercial and industrial | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Amount of allowance for loans individually evaluated and deemed impaired | 15 | 104 | ' | ' |
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 2,177 | 2,063 | ' | ' |
Total allowance for loan losses | 2,192 | 2,167 | 2,712 | 2,849 |
Loans individually evaluated and deemed impaired | 1,352 | 1,379 | ' | ' |
Loan collectively evaluated and not deemed impaired | 134,203 | 124,673 | ' | ' |
Total loans | 135,555 | 126,052 | ' | ' |
Consumer | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 13 | 13 | ' | ' |
Total allowance for loan losses | 13 | 13 | 17 | 26 |
Loan collectively evaluated and not deemed impaired | 2,572 | 2,431 | ' | ' |
Total loans | 2,572 | 2,431 | ' | ' |
Unallocated | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | -2 | 462 | ' | ' |
Total allowance for loan losses | ($2) | $462 | ' | ' |
Past_Due_and_NonAccrual_Loans_
Past Due and Non-Accrual Loans by Class (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | $2,192 | $718 |
60-89 Days Past Due | 1,267 | 444 |
Greater than 90 Days Past Due | 1,247 | 1,731 |
Total Past Due | 4,706 | 2,893 |
Past Due 90 Days or More and Still Accruing | ' | ' |
Loans on Non-Accrual | 2,586 | 3,009 |
Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 430 | 94 |
60-89 Days Past Due | 146 | 331 |
Greater than 90 Days Past Due | 793 | 818 |
Total Past Due | 1,369 | 1,243 |
Past Due 90 Days or More and Still Accruing | ' | ' |
Loans on Non-Accrual | 1,449 | 1,558 |
Residential real estate | Residential | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 1,004 | 347 |
60-89 Days Past Due | 325 | 70 |
Greater than 90 Days Past Due | 311 | 735 |
Total Past Due | 1,640 | 1,152 |
Past Due 90 Days or More and Still Accruing | ' | ' |
Loans on Non-Accrual | 712 | 939 |
Residential real estate | Home equity | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 217 | 139 |
60-89 Days Past Due | ' | 42 |
Greater than 90 Days Past Due | 2 | ' |
Total Past Due | 219 | 181 |
Past Due 90 Days or More and Still Accruing | ' | ' |
Loans on Non-Accrual | 38 | 103 |
Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 516 | 138 |
60-89 Days Past Due | 780 | ' |
Greater than 90 Days Past Due | 140 | 178 |
Total Past Due | 1,436 | 316 |
Past Due 90 Days or More and Still Accruing | ' | ' |
Loans on Non-Accrual | 386 | 409 |
Consumer | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 25 | ' |
60-89 Days Past Due | 16 | 1 |
Greater than 90 Days Past Due | 1 | ' |
Total Past Due | 42 | 1 |
Past Due 90 Days or More and Still Accruing | ' | ' |
Loans on Non-Accrual | $1 | ' |
Impaired_Loans_by_Class_Detail
Impaired Loans by Class (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, With no related allowance | $2,068 | $1,332 |
Recorded Investment, With related allowance | 14,480 | 15,747 |
Recorded Investment | 16,548 | 17,079 |
Unpaid Principal Balance, With no related allowance | 2,549 | 1,514 |
Unpaid Principal Balance, With related allowance | 14,480 | 15,816 |
Unpaid Principal Balance | 17,029 | 17,330 |
Related Allowance | 97 | 538 |
Average Recorded Investment, With no related allowance | 2,153 | 1,660 |
Average Recorded Investment, With related allowance | 14,657 | 15,579 |
Average Recorded Investment | 16,810 | 17,239 |
Interest Income Recognized, With no related allowance | ' | ' |
Interest Income Recognized, With related allowance | 624 | 685 |
Interest Income Recognized | 624 | 685 |
Commercial real estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, With no related allowance | 1,449 | 1,011 |
Recorded Investment, With related allowance | 13,513 | 14,387 |
Unpaid Principal Balance, With no related allowance | 1,756 | 1,177 |
Unpaid Principal Balance, With related allowance | 13,513 | 14,454 |
Related Allowance | 82 | 377 |
Average Recorded Investment, With no related allowance | 1,502 | 1,505 |
Average Recorded Investment, With related allowance | 13,678 | 14,053 |
Interest Income Recognized, With no related allowance | ' | ' |
Interest Income Recognized, With related allowance | 582 | 643 |
Residential real estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, With no related allowance | 234 | 118 |
Recorded Investment, With related allowance | ' | 184 |
Unpaid Principal Balance, With no related allowance | 306 | 125 |
Unpaid Principal Balance, With related allowance | ' | 184 |
Related Allowance | ' | 57 |
Average Recorded Investment, With no related allowance | 248 | 119 |
Average Recorded Investment, With related allowance | ' | 186 |
Interest Income Recognized, With no related allowance | ' | ' |
Home equity | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Average Recorded Investment, With related allowance | ' | 72 |
Commercial and industrial | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, With no related allowance | 385 | 203 |
Recorded Investment, With related allowance | 967 | 1,176 |
Unpaid Principal Balance, With no related allowance | 487 | 212 |
Unpaid Principal Balance, With related allowance | 967 | 1,178 |
Related Allowance | 15 | 104 |
Average Recorded Investment, With no related allowance | 403 | 36 |
Average Recorded Investment, With related allowance | 979 | 1,268 |
Interest Income Recognized, With no related allowance | ' | ' |
Interest Income Recognized, With related allowance | $42 | $42 |
Summary_of_Troubled_Debt_Restr
Summary of Troubled Debt Restructurings that Subsequently Defaulted (Detail) (Troubled Debt Restructuring, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 0 | 11 |
Pre-modification recorded investment | ' | $16,129 |
Post-modification recorded investment | ' | 16,129 |
Number of Contracts | ' | 5 |
Recorded investment | ' | 1,085 |
Commercial real estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | ' | 5 |
Pre-modification recorded investment | ' | 14,785 |
Post-modification recorded investment | ' | 14,785 |
Number of Contracts | ' | 4 |
Recorded investment | ' | 944 |
Commercial and industrial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | ' | 6 |
Pre-modification recorded investment | ' | 1,344 |
Post-modification recorded investment | ' | 1,344 |
Number of Contracts | ' | 1 |
Recorded investment | ' | $141 |
Loans_by_Risk_Rating_Detail
Loans by Risk Rating (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | $636,660 | $593,944 |
Loans rated 1 - 3 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 558,534 | 524,247 |
Loans rated 4 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 57,181 | 34,831 |
Loans rated 5 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 5,481 | 2,884 |
Loans rated 6 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 15,464 | 31,982 |
Commercial real estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 264,476 | 245,764 |
Commercial real estate | Loans rated 1 - 3 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 213,985 | 203,756 |
Commercial real estate | Loans rated 4 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 41,459 | 19,027 |
Commercial real estate | Loans rated 5 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 1,972 | 1,943 |
Commercial real estate | Loans rated 6 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 7,060 | 21,038 |
Residential 1-4 family | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 198,686 | 185,345 |
Residential 1-4 family | Loans rated 1 - 3 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 197,974 | 184,406 |
Residential 1-4 family | Loans rated 6 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 712 | 939 |
Home equity | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 35,371 | 34,352 |
Home equity | Loans rated 1 - 3 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 35,333 | 34,249 |
Home equity | Loans rated 6 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 38 | 103 |
Commercial and industrial | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 135,555 | 126,052 |
Commercial and industrial | Loans rated 1 - 3 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 108,671 | 99,405 |
Commercial and industrial | Loans rated 4 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 15,722 | 15,804 |
Commercial and industrial | Loans rated 5 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 3,509 | 941 |
Commercial and industrial | Loans rated 6 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 7,653 | 9,902 |
Consumer | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 2,572 | 2,431 |
Consumer | Loans rated 1 - 3 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | 2,571 | 2,431 |
Consumer | Loans rated 6 | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans | $1 | ' |
Premises_and_Equipment_Detail
Premises and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, gross | $27,329 | $26,331 |
Accumulated depreciation and amortization | -16,334 | -15,254 |
Premises and equipment, net | 10,995 | 11,077 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, gross | 1,826 | 1,826 |
Building | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, gross | 13,104 | 12,951 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, gross | 1,622 | 1,446 |
Furniture and Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, gross | $10,777 | $10,108 |
Premises_and_Equipment_Additio
Premises and Equipment - Additional information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization expense | $1,102 | $1,049 | $1,120 |
Deposit_Accounts_by_Type_and_W
Deposit Accounts by Type and Weighted Average Rates (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposit Liabilities [Line Items] | ' | ' |
Demand deposits, Interest-bearing | $44,924 | $52,595 |
Demand deposits, Noninterest-bearing | 145,040 | 114,388 |
Regular, amount | 81,244 | 92,188 |
Money market, amount | 204,469 | 168,195 |
Total deposits, amount | 817,112 | 753,413 |
Demand deposits interest-bearing rate | 0.27% | 0.30% |
Savings regular rate | 0.10% | 0.17% |
Savings money market rate | 0.38% | 0.38% |
Total deposits, rate | 0.66% | 0.76% |
Certificates of Deposit | ' | ' |
Deposit Liabilities [Line Items] | ' | ' |
Time certificates of deposit, amount | $341,435 | $326,047 |
Time certificates of deposit, rate | 1.28% | 1.46% |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deposit Liabilities [Line Items] | ' | ' | ' |
Interest expense on deposits | $5,525,000 | $6,142,000 | $7,589,000 |
Bank Time Deposits | ' | ' | ' |
Deposit Liabilities [Line Items] | ' | ' | ' |
Time deposits of $100,000 or more | 139,600,000 | 121,000,000 | ' |
Interest expense on deposits | 1,600,000 | 1,700,000 | 2,200,000 |
Deposits | ' | ' | ' |
Deposit Liabilities [Line Items] | ' | ' | ' |
Cash paid for interest | $5,500,000 | $6,200,000 | $7,600,000 |
Scheduled_Maturities_of_Time_C
Scheduled Maturities of Time Certificates of Deposit (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Deposits From Banking Clients [Line Items] | ' |
2014 | $212,901 |
2015 | 70,330 |
2016 | 34,197 |
2017 | 22,918 |
2018 | 1,089 |
Time Deposits Maturities, after Next Twelve Months, Total | $341,435 |
Interest_Expense_on_Deposits_D
Interest Expense on Deposits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deposits From Banking Clients [Line Items] | ' | ' | ' |
Regular | $119 | $186 | $515 |
Money market | 762 | 807 | 620 |
Time | 4,509 | 4,883 | 5,693 |
Interest-bearing demand | 135 | 266 | 761 |
Deposits | $5,525 | $6,142 | $7,589 |
ShortTerm_Borrowings_Additiona
Short-Term Borrowings - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Debt Instrument [Line Items] | ' | ' | ' |
Short-term borrowings | $48,197,000 | $69,934,000 | ' |
Collateralized Debt Obligations | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Repurchase agreement weighted average interest rate | 3.49% | 3.41% | ' |
Federal Home Loan Bank Certificates and Obligations (FHLB) | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Short-term borrowings | 20,000,000 | 41,700,000 | ' |
Weighted average rate | 0.30% | 0.24% | ' |
Federal Home Loan Bank Certificates and Obligations (FHLB) | Maximum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Original maturity period of debt | '1 year | '1 year | ' |
Federal Home Loan Bank of Boston Ideal Way Line of Credit | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Line of credit | 9,500,000 | 9,500,000 | ' |
Outstanding advance under line of credit | 0 | 8,700,000 | ' |
Bankers Bank Northeast | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Outstanding advance under line of credit | 0 | 4,000,000 | ' |
Total amount available to borrow from BBN | 4,000,000 | ' | ' |
Required cash reserve | 300,000 | ' | ' |
Short-term Debt Borrowing | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Cash paid for interest | $111,000 | $114,000 | $154,000 |
Repurchase_Agreements_Detail
Repurchase Agreements (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Disclosure of Repurchase Agreements [Line Items] | ' | ' | ||
Balance outstanding at end of year | $48,197 | $69,934 | ||
Customer Repurchase Agreements | ' | ' | ||
Disclosure of Repurchase Agreements [Line Items] | ' | ' | ||
Balance outstanding at end of year | 28,197 | 24,213 | ||
Maximum amount outstanding during year | 40,860 | 43,027 | ||
Average amount outstanding during year | 31,754 | 24,270 | ||
Weighted average interest rate at end of year | 0.19% | 0.19% | ||
Amortized cost of collateral pledged at end of year | 53,714 | [1] | 51,000 | [1] |
Fair value of collateral pledged at end of year | $54,885 | [1] | $54,957 | [1] |
[1] | Includes collateral pledged toward $5.6 million in long-term customer repurchase agreements. |
Repurchase_Agreements_Parenthe
Repurchase Agreements (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Long-term debt | $248,377 | $278,861 |
Customer Repurchase Agreements | ' | ' |
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Long-term debt | $5,600 | $5,500 |
Advances_Collateralized_by_Bla
Advances Collateralized by Blanket Lien on Residential Real Estate Loans and Certain Mortgage-Backed Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Federal Home Loan Bank Advances and Other Borrowings [Line Items] | ' | ' | ||
Total advances, amount | $232,747 | $220,070 | ||
Advances, weighted average rate | 1.30% | 1.30% | ||
Fixed Rate Debt | ' | ' | ||
Schedule of Federal Home Loan Bank Advances and Other Borrowings [Line Items] | ' | ' | ||
Advances maturing in 2013, amount | ' | 19,950 | ||
Advances maturing in 2014, amount | 21,542 | 21,413 | ||
Advances maturing in 2015, amount | 25,395 | 25,215 | ||
Advances maturing in 2016, amount | 53,574 | 40,932 | ||
Advances maturing in 2017, amount | 17,500 | 17,500 | ||
Advances maturing in 2018, amount | 10,000 | 5,000 | ||
Advances maturing in 2019, amount | 5,000 | 5,000 | ||
Advances maturing in 2020, amount | 7,000 | ' | ||
Total advances, amount | 140,011 | 134,470 | ||
Advances maturing in 2013, weighted average rate | ' | 1.10% | ||
Advances maturing in 2014, weighted average rate | 1.20% | 1.20% | ||
Advances maturing in 2015, weighted average rate | 1.60% | 1.60% | ||
Advances maturing in 2016, weighted average rate | 2.20% | 2.40% | ||
Advances maturing in 2017, weighted average rate | 2.60% | 2.60% | ||
Advances maturing in 2018, weighted average rate | 2.20% | 3.20% | ||
Advances maturing in 2019, weighted average rate | 3.20% | 3.20% | ||
Advances maturing in 2020, weighted average rate | 1.80% | ' | ||
Advances, weighted average rate | 2.00% | 2.00% | ||
Floating Rate Debt | ' | ' | ||
Schedule of Federal Home Loan Bank Advances and Other Borrowings [Line Items] | ' | ' | ||
Advances maturing in 2015, amount | 9,736 | 9,600 | ||
Advances maturing in 2016, amount | 10,000 | [1] | 23,000 | [1] |
Advances maturing in 2017, amount | 30,000 | [1] | 30,000 | [1] |
Advances maturing in 2018, amount | 32,000 | [1] | 12,000 | [1] |
Advances maturing in 2019, amount | 11,000 | [1] | 11,000 | [1] |
Total advances, amount | $92,736 | $85,600 | ||
Advances maturing in 2015, weighted average rate | 0.90% | 1.10% | ||
Advances maturing in 2016, weighted average rate | 1.40% | [1] | 0.60% | [1] |
Advances maturing in 2017, weighted average rate | -0.20% | [1] | -0.20% | [1] |
Advances maturing in 2018, weighted average rate | 0.40% | [1] | -0.10% | [1] |
Advances maturing in 2019, weighted average rate | -0.10% | [1] | ' | |
Advances, weighted average rate | 0.30% | 0.20% | ||
[1] | At December 31, 2013, the following amounts are callable at the option of FHLBB: $30.0 million in 2014 and $33.0 million in 2015. If these advances are not called, the weighted average rate on these advances, which is currently variable and resets based on LIBOR, will become fixed and increase to 2.2% for the 2014 call, and 2.3% for the 2015 call. No FHLBB advances were callable at December 31, 2012. |
Advances_Collateralized_by_Bla1
Advances Collateralized by Blanket Lien on Residential Real Estate Loans and Certain Mortgage-Backed Securities (Parenthetical) (Detail) (Callable Securities, USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Year 2014 | ' |
Schedule of Federal Home Loan Bank Advances and Other Borrowings [Line Items] | ' |
Callable amount at option of FHLBB | $30 |
Weighted average interest rate on advances, if advances are not called | 2.20% |
Year 2015 | ' |
Schedule of Federal Home Loan Bank Advances and Other Borrowings [Line Items] | ' |
Callable amount at option of FHLBB | $33 |
Weighted average interest rate on advances, if advances are not called | 2.30% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Debt Instrument [Line Items] | ' | ' | ' |
Prepayment expense | ' | $1,600,000 | ' |
Long-term debt | 248,377,000 | 278,861,000 | ' |
Securities sold under repurchase agreement, carrying value | 12,400,000 | 65,100,000 | ' |
Advance Restructuring | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
FHLBB advances | ' | 62,700,000 | ' |
FHLBB average interest rate | ' | 2.68% | ' |
After Restructuring | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
FHLBB average interest rate | ' | 1.60% | ' |
Repurchase Agreements | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Prepayment expense | 3,400,000 | 1,000,000 | ' |
Repurchase agreements prepaid | 43,300,000 | 28,000,000 | ' |
Repurchase agreements, weighted average rate | 2.99% | 3.06% | ' |
Mortgage Backed Securities | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Mortgage-backed securities pledged as collateral | 245,100,000 | 255,100,000 | ' |
Customer Repurchase Agreements | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 5,600,000 | 5,500,000 | ' |
Long term debt, interest rate | 2.50% | 2.50% | ' |
Long term debt, maturity | '2014 | '2013 | ' |
Long-term Debt | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Cash paid for interest | $4,800,000 | $6,500,000 | $6,700,000 |
Securities_Sold_under_Agreemen
Securities Sold under Agreements to Repurchase Secured by Government-Sponsored Enterprise Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | $12,400 | $65,100 |
Collateralized Securities | ' | ' |
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | 10,000 | 53,300 |
Repurchase agreements, weighted average rate | 2.70% | 2.90% |
Collateralized Securities | Fixed Rate Debt | ' | ' |
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | 10,000 | 44,300 |
Repurchase agreements, weighted average rate | 2.70% | 2.80% |
Collateralized Securities | Fixed Rate Debt | 2013 | ' | ' |
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | ' | 14,800 |
Repurchase agreements, weighted average rate | ' | 2.50% |
Collateralized Securities | Fixed Rate Debt | 2018 | ' | ' |
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | 10,000 | 29,500 |
Repurchase agreements, weighted average rate | 2.70% | 2.90% |
Collateralized Securities | Floating Rate Debt | 2018 | ' | ' |
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | ' | $9,000 |
Repurchase agreements, weighted average rate | ' | 3.80% |
Callable_Securities_Sold_under
Callable Securities Sold under Agreements to Repurchase (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | $12,400 | $65,100 |
Callable Securities | ' | ' |
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | 10,000 | 48,300 |
Repurchase agreements, weighted average rate | 2.70% | 3.00% |
Callable Securities | 2013 | ' | ' |
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | ' | 48,300 |
Repurchase agreements, weighted average rate | ' | 3.00% |
Callable Securities | 2014 | ' | ' |
Disclosure of Repurchase Agreements [Line Items] | ' | ' |
Repurchase agreements, amount | $10,000 | ' |
Repurchase agreements, weighted average rate | 2.70% | ' |
Stock_Plans_and_Employee_Stock2
Stock Plans and Employee Stock Ownership Plan - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2002 | Dec. 31, 2012 | Jan. 31, 2007 | Dec. 31, 2013 | Jan. 01, 2002 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Age | Maximum | Loan to ESOP Trust | Loan to ESOP Trust | ESOP | Second-step Stock Conversion | Public Offering | Initial Stock Conversion | Stock Option Plan 2002 | Stock Option Plan 2007 | Stock options | Stock options | Equity Option | Equity Option | Equity Option | Accelerated Vesting of Stock Options | 2002 Restricted Stock Awards | 2007 Restricted Stock Awards | Restricted Stock Awards | Restricted Stock Awards | Restricted Stock Awards | |||
H | Directors, Officers and Employees Plan | Directors, Officers and Employees Plan | Directors, Officers and Employees Plan | Directors, Officers and Employees Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation, original shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,631,682 | 1,560,101 | ' | ' | ' | ' | ' | ' | 652,664 | 624,041 | ' | ' | ' |
Stock option granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,631,682 | 1,503,869 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option expiration term | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tender offer to purchase outstanding options | 1,665,415 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,665,415 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares cancelled | 4,016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,016 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax asset charged to shareholders' equity as a result of tender offer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $566,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation, shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,232 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | 819,000 | 277,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received for options exercised | ' | 1,041,000 | 359,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 254,000 | 1,605,000 | 1,949,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,000 | 642,000 | 792,000 | ' | ' | ' | ' | ' | ' |
Stock options, tax benefit | 35,000 | 173,000 | 209,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000 | ' | ' | ' | ' | ' |
Accelerated share-based compensation expense due to the tender offer | 97,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards, issued and outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 652,664 | 624,041 | ' | ' | ' |
Restricted stock award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Recorded total share based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 126,000 | 963,000 | 1,200,000 |
Excess tax shortfall (benefit) from equity incentive plan | -1,000 | -96,000 | -93,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized share-based compensation cost related to unvested stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187,000 | ' | ' |
Share based compensation cost, weighted average recognition period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 4 months 2 days | ' | ' |
Employee age required to qualify for ESOP benefit | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum working hours needed for eligibility | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of common stock by ESOP Trust, percentage | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of common stock by ESOP Trust | ' | ' | ' | ' | ' | ' | ' | 736,000 | ' | 1,305,359 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock sold in initial offering | 20,140,669 | 22,843,722 | ' | ' | ' | ' | ' | ' | 18,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, interest rate | ' | ' | ' | ' | 8.00% | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total ESOP compensation expense | 599,000 | 628,000 | 694,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of unallocated shares | $8,400,000 | $8,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Status_of_Stock_Options_Detail
Status of Stock Options (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Number of shares | ' |
Beginning Balance | 1,669,431 |
Tender offer to purchase outstanding options | -1,665,415 |
Cancelled | -4,016 |
Weighted Average Exercise Price | ' |
Beginning balance | $10.02 |
Tender offer to purchase outstanding options | ' |
Cancelled | ' |
Status_of_Unvested_Restricted_
Status of Unvested Restricted Stock Awards (Detail) (Restricted Stock Awards, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock Awards | ' |
Shares | ' |
Beginning balance | 33,800 |
Shares vested | -15,520 |
Shares granted | 7,440 |
Ending balance | 25,720 |
Weighted average grant date fair value | ' |
Beginning balance | $8.23 |
Shares vested | $8.17 |
Shares granted | $7.08 |
Ending balance | $7.93 |
Remaining_Principal_Balance_Pa
Remaining Principal Balance Payable (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Long-term debt | $248,377 | $278,861 |
Loan to ESOP Trust | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
2014 | 447 | ' |
2015 | 447 | ' |
2016 | 447 | ' |
2017 | 447 | ' |
2018 | 447 | ' |
Thereafter | 7,034 | ' |
Long-term debt | $9,269 | ' |
Shares_Held_by_Employee_Stock_
Shares Held by Employee Stock Ownership Plan (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' |
Allocated | 662,013 | 624,823 |
Committed to be allocated | 81,803 | 84,261 |
Unallocated | 1,120,096 | 1,201,899 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP, Total | 1,863,912 | 1,910,983 |
Retirement_Plans_and_Employee_2
Retirement Plans and Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Vesting Period | '5 years | ' | ' |
Other liabilities | $8,712,000 | $10,067,000 | ' |
Common and preferred stock | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Defined benefit plan target plan asset allocations | 40.00% | ' | ' |
Fixed income | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Defined benefit plan target plan asset allocations | 50.00% | ' | ' |
Other Investments | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Defined benefit plan target plan asset allocations, maximum | 10.00% | ' | ' |
Postretirement Life Insurance Benefits | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Other liabilities | 217,000 | 301,000 | ' |
Defined benefit plan, expense | 27,000 | 29,000 | 25,000 |
401 (k) | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Defined contribution plan, description | 'We make a matching contribution of 50% with respect to the first 6% of each participant's annual earnings contributed to the plan. | ' | ' |
Employer matching contribution for the first 6% of each participant's annual earnings | 50.00% | ' | ' |
Maximum percentage of participant's annual earnings subject to match by employer for 401(K) plan | 6.00% | ' | ' |
Employer contribution to plan | $231,000 | $214,000 | $205,000 |
Pension Plan | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Minimum working hours needed for eligibility | 1,000 | ' | ' |
Pension_Plan_Detail
Pension Plan (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | $18,752 | $18,326 | $16,191 |
Service cost | 1,170 | 1,094 | 989 |
Interest | 763 | 800 | 890 |
Actuarial (gain) loss | -1,540 | 27 | 401 |
Benefits paid | -106 | -1,495 | -145 |
Benefit obligation at end of year | 19,039 | 18,752 | 18,326 |
Change in plan assets: | ' | ' | ' |
Balance at beginning of year | 12,200 | 11,377 | 10,950 |
Actual return (loss) on plan assets | 992 | 818 | -28 |
Employer contribution | 725 | 1,500 | 600 |
Benefits paid | -106 | -1,495 | -145 |
Balance at end of year | 13,811 | 12,200 | 11,377 |
Funded status and accrued benefit at end of year | 5,228 | 6,552 | 6,949 |
Accumulated benefit obligation at end of year | $13,192 | $13,297 | $11,964 |
Actuarial_Assumptions_used_in_
Actuarial Assumptions used in Determining Pension Benefit Obligation (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | ' | ' |
Discount rate | 5.00% | 4.00% |
Rate of compensation increase | 4.00% | 4.00% |
Net_Pension_Cost_Detail
Net Pension Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $1,170 | $1,094 | $989 |
Interest cost | 763 | 800 | 890 |
Expected return on assets | -948 | -867 | -876 |
Amortization of transition asset | -12 | -12 | -12 |
Amortization of actuarial loss | 117 | 175 | 116 |
Net periodic pension cost | $1,090 | $1,190 | $1,107 |
Actuarial_Assumptions_used_in_1
Actuarial Assumptions used in Determining Service Costs (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.00% | 4.50% | 5.50% |
Expected return on plan assets | 8.00% | 8.00% | 8.00% |
Rate of compensation increase | 4.00% | 4.00% | 5.00% |
Fair_Value_of_Major_Categories
Fair Value of Major Categories of Pension Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | $13,811 | $12,200 | $11,377 | $10,950 |
Large U.S. equity | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 3,325 | 2,987 | ' | ' |
Small or mid U.S. equity | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 831 | 755 | ' | ' |
International equity | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 1,394 | 1,286 | ' | ' |
Balanced asset allocation | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 693 | 603 | ' | ' |
Short-term fixed income | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 1,519 | 711 | ' | ' |
Fixed income | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 6,049 | 5,858 | ' | ' |
Level 2 | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 13,811 | 12,200 | ' | ' |
Level 2 | Large U.S. equity | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 3,325 | 2,987 | ' | ' |
Level 2 | Small or mid U.S. equity | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 831 | 755 | ' | ' |
Level 2 | International equity | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 1,394 | 1,286 | ' | ' |
Level 2 | Balanced asset allocation | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 693 | 603 | ' | ' |
Level 2 | Short-term fixed income | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | 1,519 | 711 | ' | ' |
Level 2 | Fixed income | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Define benefit plan fair value of plan asset | $6,049 | $5,858 | ' | ' |
Reconciliation_of_Level_Three_
Reconciliation of Level Three Investments for which Significant Unobservable Inputs were used to Determine Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Level 3 | ||||
Fair value measurements Significant unobservable inputs [Line Items] | ' | ' | ' | ' | ' |
Balance at beginning of year | $13,811 | $12,200 | $11,377 | $10,950 | $844 |
Unrealized appreciation | ' | ' | ' | ' | ' |
Reductions for assets transferred during the year | ' | ' | ' | ' | -844 |
Balance at end of year | $13,811 | $12,200 | $11,377 | $10,950 | ' |
Estimated_Benefits_to_be_Paid_
Estimated Benefits to be Paid from Pension Plan (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $1,210 |
2015 | 863 |
2016 | 1,878 |
2017 | 595 |
2018 | 1,120 |
In aggregate for 2019 - 2023 | $5,418 |
Fair_Value_of_Derivative_Finan
Fair Value of Derivative Financial Instruments Designated as Hedging Instruments and their Classification on Balance Sheet (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Derivatives, Fair Value [Line Items] | ' |
Fair value of derivative assets | $1,755 |
Fair value of derivative liability | ' |
Derivatives designated as hedging instruments | Interest Rate Swaps | ' |
Derivatives, Fair Value [Line Items] | ' |
Fair value of derivative liability | ' |
Derivatives designated as hedging instruments | Interest Rate Swaps | Other Assets | ' |
Derivatives, Fair Value [Line Items] | ' |
Fair value of derivative assets | $1,755 |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative | Derivative | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Number of derivative instruments | ' | ' | 0 |
Number of forward-starting interest rate swaps | ' | 5 | ' |
Derivative notional amount | ' | $155,000,000 | ' |
Forecasted transactions hedging period | '6 years | ' | ' |
Estimated amount to be reclassified during the next 12 month period | ' | 239,000 | ' |
Reclassifications amount | ' | 0 | ' |
Derivatives in net liability position, value | ' | 0 | ' |
2014 | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Derivative notional amount | ' | 20,000,000 | ' |
2015 | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Derivative notional amount | ' | 47,500,000 | ' |
2016 | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Derivative notional amount | ' | $67,500,000 | ' |
Derivatives Not Designated as Hedging Instruments | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Number of derivative instruments | ' | 0 | ' |
Schedule_of_Cash_Flow_Hedges_D
Schedule of Cash Flow Hedges (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Y | |
Derivative [Line Items] | ' |
Notional Amount | $155,000 |
Weighted Average Maturity | 6.8 |
Estimated Fair Value | 1,755 |
Interest rate swaps on FHLBB borrowings | ' |
Derivative [Line Items] | ' |
Notional Amount | 20,000 |
Weighted Average Maturity | 3.8 |
Weighted Average Rate Received | 0.24% |
Weighted Average Rate Paid | 1.17% |
Estimated Fair Value | 40 |
Forward Starting interest rate swaps on FHLBB borrowings | ' |
Derivative [Line Items] | ' |
Notional Amount | 135,000 |
Weighted Average Maturity | 7.2 |
Weighted Average Rate Paid | 2.93% |
Estimated Fair Value | $1,715 |
PreTax_Net_Gain_of_Cash_Flow_H
Pre-Tax Net Gain of Cash Flow Hedges (Detail) (Derivatives Designated As Cash Flow Hedges, Interest Rate Swaps, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Derivatives Designated As Cash Flow Hedges | Interest Rate Swaps | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' |
Amount of gain recognized in OCI | $1,755 |
Regulatory_Capital_Detail
Regulatory Capital (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total capital, actual | $164,605 | $186,084 |
Tier 1 risk based capital, actual | 157,119 | 178,201 |
Tier 1 adjusted capital, actual | 157,119 | 178,201 |
Total capital, minimum for capital adequacy purposes | 62,207 | 58,586 |
Tier 1 risk based capital, minimum for capital adequacy purposes | 31,104 | 29,293 |
Tier 1 adjusted capital, minimum for capital adequacy purposes | 51,193 | 51,239 |
Tangible equity, minimum to be well capitalized under prompt corrective action provisions | ' | ' |
Total capital to risk weighted assets, actual ratio | 21.17% | 25.41% |
Tier 1 capital to risk weighted assets, actual ratio | 20.21% | 24.33% |
Tier 1 capital to adjusted total assets, actual ratio | 12.28% | 13.91% |
Total capital to risk weighted assets, minimum for capital adequacy purposes, ratio | 8.00% | 8.00% |
Tier 1 capital to risk weighted assets, minimum for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 capital to adjusted total assets, minimum for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tangible equity to tangible assets, minimum to be well capitalized under prompt corrective action provisions, ratio | ' | ' |
Bank | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total capital, actual | 157,484 | 176,904 |
Tier 1 risk based capital, actual | 149,965 | 169,191 |
Tier 1 adjusted capital, actual | 149,965 | 169,191 |
Tangible equity, actual | 149,965 | 169,191 |
Total capital, minimum for capital adequacy purposes | 62,073 | 58,390 |
Tier 1 risk based capital, minimum for capital adequacy purposes | 31,036 | 29,195 |
Tier 1 adjusted capital, minimum for capital adequacy purposes | 51,121 | 51,090 |
Tangible equity, minimum for capital adequacy purposes | 19,170 | 19,159 |
Total capital, minimum to be well capitalized under prompt corrective action provisions | 77,591 | 72,988 |
Tier 1 risk based capital, minimum to be well capitalized under prompt corrective action provisions | 46,555 | 43,793 |
Tier 1 adjusted capital, minimum to be well capitalized under prompt corrective action provisions | 63,901 | 63,862 |
Tangible equity, minimum to be well capitalized under prompt corrective action provisions | ' | ' |
Total capital to risk weighted assets, actual ratio | 20.30% | 24.24% |
Tier 1 capital to risk weighted assets, actual ratio | 19.33% | 23.18% |
Tier 1 capital to adjusted total assets, actual ratio | 11.73% | 13.25% |
Tangible equity to tangible assets, actual ratio | 11.73% | 13.25% |
Total capital to risk weighted assets, minimum for capital adequacy purposes, ratio | 8.00% | 8.00% |
Tier 1 capital to risk weighted assets, minimum for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 capital to adjusted total assets, minimum for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tangible equity to tangible assets, minimum for capital adequacy purposes, ratio | 1.50% | 1.50% |
Total capital to risk weighted assets, minimum to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets, minimum to be well capitalized under prompt corrective action provisions, ratio | 6.00% | 6.00% |
Tier 1 capital to adjusted total assets, minimum to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Tangible equity to tangible assets, minimum to be well capitalized under prompt corrective action provisions, ratio | ' | ' |
Reconciliation_of_Generally_Ac
Reconciliation of Generally Accepted Accounting Principles Capital to Regulatory Tier One and Total Capital (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Reconciliation of Stockholders' Equity to Regulatory Capital [Line Items] | ' | ' | ' | ' |
Consolidated GAAP capital | $154,144 | $189,187 | $218,988 | $221,245 |
Unrealized losses (gains) on certain available-for-sale securities, net of tax | 2,706 | -13,253 | ' | ' |
Unrealized loss on defined benefit pension plan | 1,427 | 2,558 | ' | ' |
Accumulated net gain on cash flow hedges | -1,158 | ' | ' | ' |
Disallowed deferred tax asset | ' | -291 | ' | ' |
Tier 1 capital | 157,119 | 178,201 | ' | ' |
Unrealized gains on certain available-for-sale equity securities | 27 | 89 | ' | ' |
Allowance for loan losses | 7,459 | 7,794 | 7,764 | 6,934 |
Total regulatory capital | $164,605 | $186,084 | ' | ' |
Regulatory_Capital_Additional_
Regulatory Capital - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 17, 2013 | Sep. 17, 2013 |
In Millions, except Share data, unless otherwise specified | Maximum | Repurchase Agreements | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' |
Shares authorized to be repurchased | ' | ' | 1,037,000 | ' |
Shares authorized to be repurchased as percentage of total outstanding shares of common stock | ' | ' | ' | 5.00% |
Shares available to be purchased under repurchase program | 433,954 | ' | ' | ' |
Equity restricted | $62.10 | $58.40 | ' | ' |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current tax provision: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $795 | $1,856 | $1,179 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 96 | 215 | 106 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 891 | 2,071 | 1,285 |
Deferred tax provision: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 980 | 184 | 21 |
State | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 980 | 185 | 21 |
Total | $533 | $476 | $297 | $566 | $647 | $481 | $561 | $567 | $1,871 | $2,256 | $1,306 |
Differences_Between_Statutory_
Differences Between Statutory Federal Income Tax Rate and Effective Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of Provision of Income Taxes [Line Items] | ' | ' | ' |
Statutory federal income tax rate | 34.00% | 34.00% | 34.00% |
Increase (decrease) resulting from state taxes, net of federal tax benefit | 0.70% | 1.70% | 1.00% |
Increase (decrease) resulting from tax exempt income | -4.70% | -6.40% | -9.30% |
Increase (decrease) resulting from bank-owned life insurance | -6.10% | -5.70% | -7.10% |
Increase (decrease) resulting from gain on life insurance proceeds | -3.30% | -0.30% | ' |
Increase (decrease) resulting from tax benefit of stock option buyout | -2.10% | ' | ' |
Increase (decrease) resulting from surrender of BOLI policies | ' | 1.90% | ' |
Increase (decrease) resulting from other, net | 3.20% | 1.30% | -0.40% |
Effective tax rate | 21.70% | 26.50% | 18.20% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 1987 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Cash paid for income taxes | $941,000 | $2,600,000 | $16,000 | ' |
Income tax reserve for loan losses | ' | ' | ' | 5,800,000 |
Percentage of reserve taxable on amount used for unauthorized purpose | 150.00% | ' | ' | ' |
Deferred tax liability | 888,000 | 7,170,000 | ' | ' |
Uncertain tax position, interest and penalties accrued | 9,000 | 0 | 0 | ' |
Period open to audit by the Internal Revenue Service | 'December 31, 2010 through 2013 | ' | ' | ' |
Federal Income Tax | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Deferred tax liability | $2,400,000 | ' | ' | ' |
Rise_in_Deferred_Taxes_Due_to_
Rise in Deferred Taxes Due to Tax Effects (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Allowance for loan losses | $2,536 | $2,650 |
Employee benefit and share-based compensation plans | 2,071 | 2,970 |
Net unrealized loss on securities available for sale | 837 | ' |
Net unrealized loss on securities held to maturity | 599 | ' |
Defined benefit plan | 735 | 1,318 |
Other-than-temporary impairment write-down | 110 | 110 |
Other | 334 | 245 |
Deferred Tax Assets, Gross, Total | 7,222 | 7,293 |
Deferred tax liabilities: | ' | ' |
Net unrealized gain on derivative and hedging activity | -597 | ' |
Net unrealized gain on securities available for sale | ' | -6,935 |
Deferred loan fees | -117 | -179 |
Other | -174 | -56 |
Deferred tax liability | -888 | -7,170 |
Net deferred tax asset | $6,334 | $123 |
Activity_for_Loans_Detail
Activity for Loans (Detail) (Directors and Executive Officers, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Directors and Executive Officers | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Balance at beginning of year | $16,264 | $19,518 |
Principal distributions | 2,713 | 1,063 |
Repayments of principal | -2,635 | -4,317 |
Change in related party status | -10,117 | ' |
Balance at end of year | $6,225 | $16,264 |
Financial_Instruments_and_Othe
Financial Instruments and Other Commitments and Contingent Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Unused lines of credit | $99,899 | $86,474 |
Loan commitments | 10,260 | 14,984 |
Existing construction loan agreements | 14,667 | 22,641 |
Standby letters of credit | $1,728 | $2,190 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Risk participation agreement interest rate swap, term | '10 years | ' | ' |
Risk participation agreement interest rate swap, fair value | $632,000 | ' | ' |
Guarantee, percentage | 50.00% | ' | ' |
Outstanding commitments to extend credit | 126,600,000 | 126,300,000 | ' |
Fixed rate commitments | 27,000,000 | 35,500,000 | ' |
Variable rate commitments | 99,600,000 | 91,300,000 | ' |
Leases expiring year | '2046 | ' | ' |
Rent expense under operating leases | 671,000 | 625,000 | 591,000 |
If an event of default on all contracts had occurred | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Estimated risk participation agreement interest rate swap payment | $316,000 | ' | ' |
Minimum | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Fixed rate commitments with interest rates | 2.75% | 3.50% | ' |
Maximum | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Fixed rate commitments with interest rates | 12.00% | 12.00% | ' |
Lease renewal period | '40 years | ' | ' |
Aggregate_Future_Minimum_Renta
Aggregate Future Minimum Rental Payments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Lease Commitments And Contingencies [Line Items] | ' |
2014 | $659 |
2015 | 630 |
2016 | 508 |
2017 | 406 |
2018 | 370 |
Thereafter | 9,073 |
Operating Leases, Future Minimum Payments Due, Total | $11,646 |
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk - Additional Information (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Residential and commercial real estate loans | Residential and commercial real estate loans | Residential real estate | Residential real estate | Commercial real estate loan | |
Minimum | |||||
Ceded Credit Risk [Line Items] | ' | ' | ' | ' | ' |
Percentage of real estate loans to total loans | 78.30% | 78.40% | ' | ' | ' |
Amount of loan to appraised value of property | ' | ' | 100.00% | ' | 85.00% |
Amount of loan to appraised value of property above which mortgage insurance is obtained for excess portion of loan | ' | ' | ' | 80.00% | ' |
Assets_Measured_at_Fair_Value_
Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | $243,204 | $621,507 |
Government sponsored residential mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 132,372 | 328,023 |
U.S. government guaranteed mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 46,328 | 130,735 |
Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 27,389 | 52,337 |
State and municipal bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 18,897 | 40,846 |
Government sponsored enterprise obligations | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 10,700 | 62,060 |
Mutual funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 5,919 | 6,046 |
Common and preferred stock | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 1,599 | 1,460 |
Securities Available For Sale | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 243,204 | ' |
Interest Rate Swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 1,755 | ' |
Private label residential mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | ' | 52,337 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 7,518 | 7,506 |
Level 1 | Mutual funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 5,919 | 6,046 |
Level 1 | Common and preferred stock | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 1,599 | 1,460 |
Level 1 | Securities Available For Sale | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 7,518 | ' |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 237,441 | 614,001 |
Level 2 | Government sponsored residential mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 132,372 | 328,023 |
Level 2 | U.S. government guaranteed mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 46,328 | 130,735 |
Level 2 | Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 27,389 | ' |
Level 2 | State and municipal bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 18,897 | 40,846 |
Level 2 | Government sponsored enterprise obligations | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 10,700 | 62,060 |
Level 2 | Securities Available For Sale | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 235,686 | ' |
Level 2 | Interest Rate Swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | 1,755 | ' |
Level 2 | Private label residential mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Available-for-sale securities | ' | $52,337 |
Fair_Value_Hierarchy_used_to_D
Fair Value Hierarchy used to Determine Each Adjustment and Carrying Value of Assets Measured on Non-Recurring Basis (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Gains (losses) arising from fair value adjustment of assets | ($31) | ($6) |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Assets Measured at Fair Value on Non-Recurring Basis | 2,069 | 2,193 |
Impaired Loans | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Gains (losses) arising from fair value adjustment of assets | -31 | 160 |
Impaired Loans | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Assets Measured at Fair Value on Non-Recurring Basis | 2,069 | 1,229 |
Other Real Estate Owned | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Gains (losses) arising from fair value adjustment of assets | ' | -166 |
Other Real Estate Owned | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Assets Measured at Fair Value on Non-Recurring Basis | ' | $964 |
Estimated_Fair_Values_of_Finan
Estimated Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets, carrying value: | ' | ' |
Cash and cash equivalents | $19,742 | $11,761 |
Securities available for sale, carrying value | 243,204 | 621,507 |
Securities held to maturity, carrying value | 295,013 | ' |
Federal Home Loan Bank of Boston and other restricted stock, carrying value | 15,631 | 14,269 |
Loans - net, carrying value | 629,968 | 587,124 |
Accrued interest receivable, carrying value | 4,201 | 4,602 |
Derivative assets, carrying value | 1,755 | ' |
Liabilities, carrying value: | ' | ' |
Deposits, carrying value | 817,112 | 753,413 |
Short-term borrowings, carrying value | 48,197 | 69,934 |
Long-term debt, carrying value | 248,377 | 278,861 |
Accrued interest payable, carrying value | 392 | 471 |
Assets, estimated fair value: | ' | ' |
Cash and cash equivalents | 19,742 | 11,761 |
Securities available for sale, estimated fair value | 243,204 | 621,507 |
Securities held to maturity, estimated fair value | 282,555 | ' |
Federal Home Loan Bank of Boston and other restricted stock, estimated fair value | 15,631 | 14,269 |
Loans - net, estimated fair value | 631,417 | 610,695 |
Accrued interest receivable, estimated fair value | 4,201 | 4,602 |
Derivative Assets, estimated fair value | 1,755 | ' |
Liabilities, estimated fair value: | ' | ' |
Deposits, estimated fair value | 819,109 | 757,450 |
Short-term borrowings, estimated fair value | 48,197 | 69,936 |
Long-term debt, estimated fair value | 251,678 | 290,536 |
Accrued interest payable, estimated fair value | 392 | 471 |
Level 1 | ' | ' |
Assets, estimated fair value: | ' | ' |
Cash and cash equivalents | 19,742 | 11,761 |
Securities available for sale, estimated fair value | 7,518 | 7,506 |
Level 2 | ' | ' |
Assets, estimated fair value: | ' | ' |
Securities available for sale, estimated fair value | 237,441 | 614,001 |
Securities held to maturity, estimated fair value | 282,555 | ' |
Derivative Assets, estimated fair value | 1,755 | ' |
Liabilities, estimated fair value: | ' | ' |
Short-term borrowings, estimated fair value | 48,197 | 69,936 |
Long-term debt, estimated fair value | 251,678 | 290,536 |
Level 3 | ' | ' |
Assets, estimated fair value: | ' | ' |
Federal Home Loan Bank of Boston and other restricted stock, estimated fair value | 15,631 | 14,269 |
Loans - net, estimated fair value | 631,417 | 610,695 |
Accrued interest receivable, estimated fair value | 4,201 | 4,602 |
Liabilities, estimated fair value: | ' | ' |
Deposits, estimated fair value | 819,109 | 757,450 |
Accrued interest payable, estimated fair value | $392 | $471 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Customer | Customer | Customer | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of customers accounted for more than 10% of revenue | 0 | 0 | 0 |
Condensed_Balance_Sheets_of_Pa
Condensed Balance Sheets of Parent Company (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
ASSETS: | ' | ' | ' | ' |
Securities available for sale | $243,204,000 | $621,507,000 | ' | ' |
Other assets | 4,574,000 | 3,813,000 | ' | ' |
TOTAL ASSETS | 1,276,841,000 | 1,301,462,000 | ' | ' |
LIABILITIES: | ' | ' | ' | ' |
Other liabilities | 8,712,000 | 10,067,000 | ' | ' |
EQUITY | 154,144,000 | 189,187,000 | 218,988,000 | 221,245,000 |
TOTAL LIABILITIES AND EQUITY | 1,276,841,000 | 1,301,462,000 | ' | ' |
Parent Company | ' | ' | ' | ' |
ASSETS: | ' | ' | ' | ' |
Cash equivalents | 158,000 | 572,000 | ' | ' |
Securities available for sale | 1,599,000 | 2,772,000 | ' | ' |
Investment in subsidiaries | 146,951,000 | 179,784,000 | ' | ' |
ESOP loan receivable | 9,269,000 | 9,716,000 | ' | ' |
Other assets | 5,912,000 | 6,142,000 | ' | ' |
TOTAL ASSETS | 163,889,000 | 198,986,000 | ' | ' |
LIABILITIES: | ' | ' | ' | ' |
ESOP loan payable | 9,269,000 | 9,716,000 | ' | ' |
Other liabilities | 476,000 | 83,000 | ' | ' |
EQUITY | 154,144,000 | 189,187,000 | ' | ' |
TOTAL LIABILITIES AND EQUITY | $163,889,000 | $198,986,000 | ' | ' |
Condensed_Statements_of_Income
Condensed Statements of Income for Parent Company (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCOME: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on sale of securities, net | ' | ' | ' | ' | ' | ' | ' | ' | $3,126 | $2,907 | $414 |
OPERATING EXPENSE: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Salaries and employee benefits | ' | ' | ' | ' | ' | ' | ' | ' | 15,458 | 16,530 | 15,557 |
INCOME BEFORE INCOME TAXES | 2,342 | 2,057 | 1,881 | 2,348 | 2,201 | 1,868 | 1,535 | 2,906 | 8,627 | 8,510 | 7,180 |
INCOME TAX BENEFIT | 533 | 476 | 297 | 566 | 647 | 481 | 561 | 567 | 1,871 | 2,256 | 1,306 |
Net income | 1,809 | 1,581 | 1,584 | 1,782 | 1,554 | 1,387 | 974 | 2,339 | 6,756 | 6,254 | 5,874 |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 26,964 | 42,372 | 21,661 |
Interest income from securities | ' | ' | ' | ' | ' | ' | ' | ' | 16 | 68 | 98 |
ESOP loan interest income | ' | ' | ' | ' | ' | ' | ' | ' | 777 | 813 | 848 |
Gain (loss) on sale of securities, net | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | 134 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 |
Total income | ' | ' | ' | ' | ' | ' | ' | ' | 27,760 | 43,253 | 22,742 |
OPERATING EXPENSE: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Salaries and employee benefits | ' | ' | ' | ' | ' | ' | ' | ' | 879 | 2,262 | 2,670 |
ESOP interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 777 | 813 | 848 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 586 | 511 | 762 |
Total operating expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,242 | 3,586 | 4,280 |
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES AND INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | 25,518 | 39,667 | 18,462 |
EQUITY IN UNDISTRIBUTED LOSS OF SUBSIDIARIES | ' | ' | ' | ' | ' | ' | ' | ' | -19,073 | -34,130 | -13,237 |
INCOME BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | 6,445 | 5,537 | 5,225 |
INCOME TAX BENEFIT | ' | ' | ' | ' | ' | ' | ' | ' | -311 | -717 | -649 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $6,756 | $6,254 | $5,874 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows of Parent Company (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $6,756 | $6,254 | $5,874 |
Net amortization of premiums and discounts on securities | 4,248 | 4,411 | 3,424 |
Net realized securities gains | -3,126 | -2,907 | -414 |
Change in other liabilities | 807 | -1,066 | 309 |
Change in other assets | -21 | 976 | 1,587 |
Net cash provided by operating activities | 14,202 | 11,310 | 14,790 |
INVESTING ACTIVITIES: | ' | ' | ' |
Sale of securities | 206,788 | 288,116 | 203,665 |
Net cash provided by (used in) investing activities | 14,981 | -46,426 | -13,306 |
FINANCING ACTIVITIES: | ' | ' | ' |
Cash dividends paid | -5,872 | -10,721 | -14,305 |
Common stock repurchased | -20,093 | -32,083 | -9,708 |
Tender offer to purchase outstanding options | -2,151 | ' | ' |
Excess tax expense in connection with tender offer completion | -566 | ' | 15 |
Excess tax (shortfall) benefit from share-based compensation | ' | 240 | 89 |
Issuance of common stock in connection with stock option exercises | ' | 1,041 | 359 |
Repayment of long-term debt | -66,620 | -88,748 | -5,150 |
Net cash (used in) provided by financing activities | -21,202 | 25,772 | 8,010 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 7,981 | -9,344 | 9,494 |
CASH AND CASH EQUIVALENTS | ' | ' | ' |
Beginning of year | 11,761 | 21,105 | 11,611 |
End of year | 19,742 | 11,761 | 21,105 |
Supplemental cashflow information: | ' | ' | ' |
Net cash due to (from) broker for common stock repurchased | 299 | -352 | 352 |
Parent Company | ' | ' | ' |
OPERATING ACTIVITIES: | ' | ' | ' |
Net income | 6,756 | 6,254 | 5,874 |
Dividends in excess of earnings of subsidiaries | 19,073 | 34,130 | 13,237 |
Net amortization of premiums and discounts on securities | ' | ' | 1 |
Net realized securities gains | -3 | ' | -134 |
Change in other liabilities | 198 | 36 | -10 |
Change in other assets | -487 | -271 | 29 |
Other, net | 1,422 | 2,089 | 2,439 |
Net cash provided by operating activities | 26,959 | 42,238 | 21,799 |
INVESTING ACTIVITIES: | ' | ' | ' |
Purchase of securities | -349 | -1,533 | -1,095 |
Proceeds from principal collections | 1,307 | 575 | 1 |
Sale of securities | 352 | 566 | 3,299 |
Net cash provided by (used in) investing activities | 1,310 | -392 | 2,205 |
FINANCING ACTIVITIES: | ' | ' | ' |
Cash dividends paid | -5,872 | -10,721 | -14,305 |
Common stock repurchased | -20,093 | -32,083 | -9,708 |
Tender offer to purchase outstanding options | -2,151 | ' | ' |
Excess tax expense in connection with tender offer completion | -566 | ' | ' |
Excess tax (shortfall) benefit from share-based compensation | -1 | 144 | -4 |
Issuance of common stock to ESOP | ' | ' | 15 |
Issuance of common stock in connection with stock option exercises | ' | 1,041 | 359 |
Repayment of long-term debt | ' | -446 | -446 |
Net cash (used in) provided by financing activities | -28,683 | -42,065 | -24,452 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -414 | -219 | -448 |
CASH AND CASH EQUIVALENTS | ' | ' | ' |
Beginning of year | 572 | 791 | 1,239 |
End of year | 158 | 572 | 791 |
Supplemental cashflow information: | ' | ' | ' |
Net cash due to (from) broker for common stock repurchased | $299 | ($352) | $352 |
Other_Noninterest_Expense_Addi
Other Noninterest Expense - Additional Information (Detail) (Maximum) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Maximum | ' | ' | ' |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' |
Other noninterest expense as percentage of total interest income and noninterest income | 1.00% | 1.00% | 1.00% |
Quarterly_Financial_Informatio
Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest and dividend income | $10,089 | $10,348 | $10,246 | $10,349 | $10,626 | $10,853 | $10,910 | $10,715 | ' | ' | ' |
Interest expense | 2,482 | 2,520 | 2,609 | 2,679 | 3,032 | 3,150 | 3,183 | 3,298 | 10,290 | 12,663 | 14,467 |
Net interest and dividend income | 7,607 | 7,828 | 7,637 | 7,670 | 7,594 | 7,703 | 7,727 | 7,417 | 41,031 | 43,104 | 45,005 |
Provision for loan losses | 120 | -71 | -70 | -235 | ' | 218 | 260 | 220 | -256 | 698 | 1,206 |
Other noninterest income | 1,013 | 1,003 | 981 | 957 | 1,321 | 1,007 | 804 | 968 | ' | ' | ' |
Gain on bank-owned life insurance | ' | ' | 563 | ' | ' | ' | ' | ' | 1,549 | 1,439 | 1,546 |
Loss on sale of OREO | ' | ' | ' | ' | -1,017 | ' | ' | ' | -6 | ' | -25 |
Loss on prepayment of borrowings | ' | -540 | -1,404 | -1,426 | ' | ' | ' | ' | 3,370 | 1,017 | ' |
Gain on sales of securities, net | 330 | 546 | 823 | 1,427 | 1,051 | 174 | 97 | 1,585 | ' | ' | ' |
Noninterest expense | 6,488 | 6,851 | 6,789 | 6,515 | 6,748 | 6,798 | 6,833 | 6,844 | 26,642 | 27,223 | 25,958 |
Income before income taxes | 2,342 | 2,057 | 1,881 | 2,348 | 2,201 | 1,868 | 1,535 | 2,906 | 8,627 | 8,510 | 7,180 |
INCOME TAX PROVISION | 533 | 476 | 297 | 566 | 647 | 481 | 561 | 567 | 1,871 | 2,256 | 1,306 |
Net income | $1,809 | $1,581 | $1,584 | $1,782 | $1,554 | $1,387 | $974 | $2,339 | $6,756 | $6,254 | $5,874 |
Basic earnings per share | $0.09 | $0.08 | $0.08 | $0.08 | $0.07 | $0.06 | $0.04 | $0.09 | $0.34 | $0.26 | $0.22 |
Diluted earnings per share | $0.09 | $0.08 | $0.08 | $0.08 | $0.07 | $0.06 | $0.04 | $0.09 | $0.34 | $0.26 | $0.22 |