Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 05, 2015 | Jun. 30, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | WESTFIELD FINANCIAL INC | ||
Entity Central Index Key | 1157647 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $143,009,655 | ||
Entity Common Stock, Shares Outstanding | 18,709,412 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
CASH AND DUE FROM BANKS | $10,294 | $14,112 |
FEDERAL FUNDS SOLD | 269 | 521 |
INTEREST-BEARING DEPOSITS AND OTHER SHORT-TERM INVESTMENTS | 8,222 | 5,109 |
CASH AND CASH EQUIVALENTS | 18,785 | 19,742 |
SECURITIES AVAILABLE FOR SALE - AT FAIR VALUE | 215,750 | 243,204 |
SECURITIES HELD TO MATURITY (Fair value of $277,636 and $282,555 at December 31, 2014 and 2013, respectively) | 278,080 | 295,013 |
FEDERAL HOME LOAN BANK OF BOSTON AND OTHER RESTRICTED STOCK - AT COST | 14,934 | 15,631 |
LOANS - Net of allowance for loan losses of $7,948 and $7,459 at December 31, 2014 and 2013, respectively | 716,738 | 629,968 |
PREMISES AND EQUIPMENT, Net | 11,703 | 10,995 |
ACCRUED INTEREST RECEIVABLE | 4,213 | 4,201 |
BANK-OWNED LIFE INSURANCE | 48,703 | 47,179 |
DEFERRED TAX ASSET, Net | 8,819 | 6,334 |
OTHER ASSETS | 2,371 | 4,574 |
TOTAL ASSETS | 1,320,096 | 1,276,841 |
DEPOSITS : | ||
Noninterest-bearing | 136,186 | 145,040 |
Interest-bearing | 698,032 | 672,072 |
Total deposits | 834,218 | 817,112 |
SHORT-TERM BORROWINGS | 93,997 | 48,197 |
LONG-TERM DEBT | 232,479 | 248,377 |
DUE TO BROKER | 299 | |
OTHER LIABILITIES | 16,859 | 8,712 |
TOTAL LIABILITIES | 1,177,553 | 1,122,697 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock - $.01 par value, 5,000,000 shares authorized, none outstanding | ||
Common stock - $.01 par value, 75,000,000 shares authorized; 18,734,791 shares issued and outstanding at December 31, 2014; 20,140,669 shares issued and outstanding at December 31, 2013 | 187 | 201 |
Additional paid-in capital | 111,696 | 121,860 |
Unearned compensation - ESOP | -7,469 | -8,003 |
Unearned compensation - Equity Incentive Plan | -95 | -187 |
Retained earnings | 45,699 | 43,248 |
Accumulated other comprehensive loss | -7,475 | -2,975 |
Total shareholders' equity | 142,543 | 154,144 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,320,096 | $1,276,841 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
SECURITIES HELD TO MATURITY, Fair value | $277,636 | $282,555 |
Allowance for loan losses | $7,948 | $7,459 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 18,734,791 | 20,140,669 |
Common stock, shares outstanding | 18,734,791 | 20,140,669 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST AND DIVIDEND INCOME: | |||
Residential and commercial real estate loans | $21,953 | $20,204 | $20,449 |
Commercial and industrial loans | 5,749 | 5,064 | 4,994 |
Consumer loans | 141 | 140 | 160 |
Debt securities, taxable | 11,880 | 14,302 | 15,621 |
Debt securities, tax-exempt | 833 | 1,067 | 1,592 |
Equity securities | 176 | 152 | 186 |
Other investments - at cost | 246 | 93 | 94 |
Federal funds sold, interest-bearing deposits and other short-term investments | 13 | 9 | 8 |
Total interest and dividend income | 40,991 | 41,031 | 43,104 |
INTEREST EXPENSE: | |||
Deposits | 5,177 | 5,525 | 6,142 |
Long-term debt | 4,326 | 4,591 | 6,406 |
Short-term borrowings | 420 | 174 | 115 |
Total interest expense | 9,923 | 10,290 | 12,663 |
Net interest and dividend income | 31,068 | 30,741 | 30,441 |
PROVISION (CREDIT) FOR LOAN LOSSES | 1,575 | -256 | 698 |
Net interest and dividend income after (credit) provision for loan losses | 29,493 | 30,997 | 29,743 |
NONINTEREST INCOME (LOSS): | |||
Service charges and fees | 2,617 | 2,404 | 2,581 |
Income from bank-owned life insurance | 1,523 | 1,549 | 1,439 |
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 | 320 | 3,126 | 2,907 |
Total noninterest income | 4,460 | 4,272 | 5,990 |
NONINTEREST EXPENSE: | |||
Salaries and employees benefits | 14,709 | 15,458 | 16,530 |
Occupancy | 3,076 | 2,898 | 2,775 |
Computer operations | 2,341 | 2,340 | 2,106 |
Professional fees | 1,936 | 2,033 | 1,872 |
OREO expense | 22 | 237 | |
FDIC insurance assessment | 713 | 655 | 611 |
Other | 3,134 | 3,236 | 3,092 |
Total noninterest expense | 25,909 | 26,642 | 27,223 |
INCOME BEFORE INCOME TAXES | 8,044 | 8,627 | 8,510 |
INCOME TAX PROVISION | 1,882 | 1,871 | 2,256 |
NET INCOME | $6,162 | $6,756 | $6,254 |
EARNINGS PER COMMON SHARE: | |||
Basic earnings per share (in dollars per share) | $0.34 | $0.34 | $0.26 |
Weighted average shares outstanding (in shares) | 18,183,739 | 20,079,251 | 24,501,951 |
Diluted earnings per share (in dollars per share) | $0.34 | $0.34 | $0.26 |
Weighted average diluted shares outstanding (in shares) | 18,183,739 | 20,079,265 | 24,519,515 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $6,162 | $6,756 | $6,254 | |||
Securities available for sale | ||||||
Unrealized holding (losses) gain | 3,398 | -20,970 | 7,371 | |||
Reclassification adjustment for gains realized in income | -320 | -3,126 | -2,907 | |||
Amortization of net unrealized loss on held-to-maturity securities | -55 | [1] | -234 | [1] | [1] | |
Net unrealized gains (losses) | 3,023 | -24,330 | 4,464 | |||
Tax effect | -1,045 | 8,371 | -1,532 | |||
Net-of-tax amount | 1,978 | -15,959 | 2,932 | |||
Derivative instruments: | ||||||
Change in fair value of derivatives used for cash flow hedges | -7,684 | 1,755 | ||||
Reclassification adjustment for loss realized in interest expense | 190 | [2] | [2] | [2] | ||
Net adjustments pertaining to derivative instruments | -7,494 | 1,755 | ||||
Tax effect | 2,548 | -597 | ||||
Net-of-tax amount | -4,946 | 1,158 | ||||
Defined benefit pension plans: | ||||||
Gains (losses) arising during the period | -2,312 | 1,608 | -94 | |||
Reclassification adjustments: | ||||||
Actuarial (gain) loss | [3] | 117 | [3] | 175 | [3] | |
Transition asset | -10 | [3] | -11 | [3] | -11 | [3] |
Net adjustments pertaining to defined benefit plans | -2,322 | 1,714 | 70 | |||
Tax effect | 790 | -583 | -23 | |||
Net-of-tax amount | -1,532 | 1,131 | 47 | |||
Other comprehensive (loss) income | -4,500 | -13,670 | 2,979 | |||
Comprehensive (loss) income | $1,662 | ($6,914) | $9,233 | |||
[1] | Amortization of net unrealized loss on held-to-maturity securities is recognized as a component of interest income on debt securities. Income tax benefits associated with the reclassification adjustments were $18,000, $80,000 and $0 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[2] | Loss realized in interest expense on derivative instruments is recognized as a component of interest expense on long-term debt. Income tax benefits associated with the reclassification adjustment was $65,000 for the year ended December 31, 2014. | |||||
[3] | Amounts represent the reclassification of defined benefit plans amortization and have been recognized as a component of salaries and employee benefit expense. Income tax expense (benefits) associated with the reclassification adjustments were $3,000, $(36,000) and $(56,000) for the years ended December 31, 2014, 2013 and 2012, respectively. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Income tax expense (benefits), securities available for sale | $18 | $80 | $0 |
Income tax expense (benefits), derivative instruments | 65 | ||
Income tax expense (benefits), defined benefit plans | $3 | ($36) | ($56) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Unearned Compensation - ESOP Plan [Member] | Unearned Compensation - Equity Incentive Plan [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Thousands, except Share data | |||||||
BEGINNING BALANCE at Dec. 31, 2011 | $269 | $173,615 | ($9,119) | ($1,228) | $47,735 | $7,716 | $218,988 |
BEGINNING BALANCE (in shares) at Dec. 31, 2011 | 26,918,250 | ||||||
Comprehensive income (loss) | 6,254 | 2,979 | 9,233 | ||||
Common stock held by ESOP committed to be released | 62 | 566 | 628 | ||||
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 | -43 | -31,688 | -31,731 | ||||
Issuance of common stock in connection with stock option exercises (in shares) | 237,313 | ||||||
Issuance of common stock in connection with stock option exercises | 2 | 1,943 | -904 | 1,041 | |||
Excess tax benefits in connection with stock option exercises | 240 | 240 | |||||
Cash dividends declared | -10,721 | -10,721 | |||||
ENDING BALANCE at Dec. 31, 2012 | 228 | 144,718 | -8,553 | -265 | 42,364 | 10,695 | 189,187 |
ENDING BALANCE (in shares) at Dec. 31, 2012 | 22,843,722 | ||||||
Comprehensive income (loss) | 6,756 | -13,670 | -6,914 | ||||
Common stock held by ESOP committed to be released | 49 | 550 | 599 | ||||
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 | -27 | -20,365 | -20,392 | ||||
Issuance of common stock in connection with equity incentive plan | 48 | -48 | |||||
Tender offer to purchase outstanding options | -2,717 | -2,717 | |||||
Cash dividends declared | -5,872 | -5,872 | |||||
ENDING BALANCE at Dec. 31, 2013 | 201 | 121,860 | -8,003 | -187 | 43,248 | -2,975 | 154,144 |
ENDING BALANCE (in shares) at Dec. 31, 2013 | 20,140,669 | ||||||
Comprehensive income (loss) | 6,162 | -4,500 | 1,662 | ||||
Common stock held by ESOP committed to be released | 42 | 534 | 576 | ||||
Share-based compensation - equity incentive plan | 92 | 92 | |||||
Excess tax shortfall from equity incentive plan | -1 | -1 | |||||
Common stock repurchased (in shares) | -1,405,878 | ||||||
Common stock repurchased | -14 | -10,205 | -10,219 | ||||
Return of dividends issued in connection with equity incentive plan | 121 | 121 | |||||
Cash dividends declared | -3,832 | -3,832 | |||||
ENDING BALANCE at Dec. 31, 2014 | $187 | $111,696 | ($7,469) | ($95) | $45,699 | ($7,475) | $142,543 |
ENDING BALANCE (in shares) at Dec. 31, 2014 | 18,734,791 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash dividends declared, per share | $0.21 | $0.29 | $0.44 |
Tax effect for tender offer to purchase outstanding options | $566 | ||
Unearned Compensation - ESOP Plan [Member] | |||
Common stock held by ESOP committed to be released, shares | 79,345 | 81,803 | 84,261 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||
Net income | $6,162 | $6,756 | $6,254 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision (credit) for loan losses | 1,575 | -256 | 698 |
Depreciation and amortization of premises and equipment | 1,189 | 1,102 | 1,049 |
Net amortization of premiums and discounts on securities and mortgage loans | 4,263 | 4,248 | 4,411 |
Net amortization of premiums on modified debt | 610 | 627 | 537 |
Share-based compensation expense | 92 | 254 | 1,605 |
ESOP expense | 576 | 599 | 628 |
Excess tax shortfall from equity incentive plan | 1 | 1 | 96 |
Excess tax benefits in connection with stock option exercises | -240 | ||
Excess tax expense in connection with tender offer completion | 566 | ||
Net gains on sales of securities | -320 | -3,126 | -2,907 |
Write-downs of other real estate owned | 166 | ||
Loss on sale of other real estate owned | 6 | ||
Loss on prepayment of borrowings | 3,370 | 1,017 | |
Deferred income tax (benefit) expense | -193 | 980 | 185 |
Income from bank-owned life insurance | -1,523 | -1,549 | -1,439 |
Gain on bank-owned life insurance death benefit | -563 | -80 | |
Changes in assets and liabilities: | |||
Accrued interest receivable | -12 | 401 | -580 |
Other assets | -150 | -21 | 976 |
Other liabilities | 77 | 807 | -1,066 |
Net cash provided by operating activities | 12,347 | 14,202 | 11,310 |
Securities, held to maturity: | |||
Purchases | -3,461 | ||
Proceeds from calls, maturities, and principal collections | 14,433 | 6,064 | |
Securities, available for sale: | |||
Purchases | -66,784 | -212,765 | -375,168 |
Proceeds from sales | 71,738 | 206,788 | 288,116 |
Proceeds from calls, maturities, and principal collections | 24,135 | 61,270 | 86,210 |
Purchase of residential mortgages | -53,272 | -37,700 | -62,895 |
Loan originations and principal payments, net | -34,522 | -4,946 | 21,286 |
Redemption (purchase) of Federal Home Loan Bank of Boston stock | 697 | -1,393 | -2,026 |
Proceeds from redemption of other restricted stock | 31 | 195 | |
Proceeds from sale of other real estate owned | 958 | ||
Purchases of premises and equipment | -1,937 | -1,020 | -1,129 |
Proceeds from sale of premises and equipment | 40 | ||
Purchase of bank-owned life insurance | -2,600 | ||
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 (used in) provided by investing activities | -45,472 | 14,981 | -46,426 |
FINANCING ACTIVITIES: | |||
Net increase in deposits | 17,106 | 63,699 | 20,455 |
Net change in short-term borrowings | 45,800 | -21,737 | 16,949 |
Repayment of long-term debt | -21,650 | -66,620 | -88,748 |
Proceeds from long-term debt | 5,142 | 32,139 | 118,735 |
Return of dividends issued in connection with equity incentive plan | 121 | ||
Tender offer to purchase outstanding options | -2,151 | ||
Excess tax expense in connection with tender offer completion | -566 | ||
Cash dividends paid | -3,832 | -5,872 | -10,721 |
Common stock repurchased | -10,518 | -20,093 | -32,083 |
Issuance of common stock in connection with stock option exercises | 1,041 | ||
Excess tax shortfall in connection with equity incentive plan | -1 | -1 | -96 |
Excess tax benefits in connection with stock option exercises | 240 | ||
Net cash provided by (used in) financing activities | 32,168 | -21,202 | 25,772 |
NET CHANGE IN CASH AND CASH EQUIVALENTS: | -957 | 7,981 | -9,344 |
Beginning of year | 19,742 | 11,761 | 21,105 |
End of year | 18,785 | 19,742 | 11,761 |
Supplemental cashflow information: | |||
Securities reclassified from available-for-sale to held-to-maturity | 299,203 | ||
Securities reclassified to loan portfolio | 606 | ||
Net cash due to (from) broker for investment purchases | -11 | ||
Net cash due to (from) broker for common stock repurchased | $299 | ($352) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
Nature of Operations and Basis of Presentation - Westfield Financial, Inc. (“Westfield Financial,” the “Company,” “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 13 banking offices in western Massachusetts and Granby and Enfield, 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 $690,000 at December 31, 2014 and $975,000 at December 31, 2013. There were no cash reserve requirements for the Federal Reserve Bank of Boston at December 31, 2014 or 2013. | |||||||||||||||||
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 - We enter into interest rate swap agreements as part of our interest-rate risk management strategy for certain assets and liabilities and not for speculative purposes. Based on our intended use for 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 our 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 our quarterly analysis is recorded directly to earnings. We 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 and liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. | |||||||||||||||||
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 and liabilities; 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 and liabilities. | |||||||||||||||||
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 and liabilities. 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, 2014, 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, allocated and unallocated 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. Residential real estate loans include classes for residential and home equity. 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 2014, 2013 and 2012. | |||||||||||||||||
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, 2014 and 2013. | |||||||||||||||||
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. 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. 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. | |||||||||||||||||
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, 2014 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, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Net income applicable to common stock | $ | 6,162 | $ | 6,756 | $ | 6,254 | |||||||||||
Average number of common shares issued | 19,274 | 21,254 | 25,763 | ||||||||||||||
Less: Average unallocated ESOP Shares | (1,090 | ) | (1,171 | ) | (1,254 | ) | |||||||||||
Less: Average ungranted equity incentive plan shares | — | (4 | ) | (7 | ) | ||||||||||||
Average number of common shares outstanding used to calculate basic earnings per common share | 18,184 | 20,079 | 24,502 | ||||||||||||||
Effect of dilutive stock options | — | — | 18 | ||||||||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 18,184 | 20,079 | 24,520 | ||||||||||||||
Basic earnings per share | $ | 0.34 | $ | 0.34 | $ | 0.26 | |||||||||||
Diluted earnings per share | $ | 0.34 | $ | 0.34 | $ | 0.26 | |||||||||||
Antidilutive shares (1) | — | 833 | 1,666 | ||||||||||||||
____________________ | |||||||||||||||||
-1 | Options 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 the Company’s common stock. At December 31, 2014, there were no stock options outstanding. | ||||||||||||||||
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 loss, included in shareholders’ equity, are as follows: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Net unrealized gains (losses) on securities available for sale | $ | 668 | $ | (2,410 | ) | ||||||||||||
Tax effect | (226 | ) | 837 | ||||||||||||||
Net-of-tax amount | 442 | (1,573 | ) | ||||||||||||||
Net unamortized losses on securities transferred from available-for-sale to held-to-maturity | (1,787 | ) | (1,732 | ) | |||||||||||||
Tax effect | 617 | 599 | |||||||||||||||
Net-of-tax amount | (1,170 | ) | (1,133 | ) | |||||||||||||
Fair value of derivatives used for cash flow hedges | (5,739 | ) | 1,755 | ||||||||||||||
Tax effect | 1,951 | (597 | ) | ||||||||||||||
Net-of-tax amount | (3,788 | ) | 1,158 | ||||||||||||||
Unrecognized transition asset pertaining to defined benefit plan | — | 10 | |||||||||||||||
Unrecognized deferred loss pertaining to defined benefit plan | (4,484 | ) | (2,172 | ) | |||||||||||||
Net adjustments pertaining to defined benefit plans | (4,484 | ) | (2,162 | ) | |||||||||||||
Tax effect | 1,525 | 735 | |||||||||||||||
Net-of-tax amount | (2,959 | ) | (1,427 | ) | |||||||||||||
Accumulated other comprehensive loss | $ | (7,475 | ) | $ | (2,975 | ) | |||||||||||
The following table presents changes in accumulated other comprehensive loss for the years ended December 31, 2014 and 2013 by component: | |||||||||||||||||
Securities | Derivatives | Defined Benefit Pension Plans | Accumulated Other Comprehensive Loss | ||||||||||||||
(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, 2013 | $ | (2,706 | ) | $ | 1,158 | $ | (1,427 | ) | $ | (2,975 | ) | ||||||
Current-period other comprehensive (loss) income | 1,978 | (4,946 | ) | (1,532 | ) | (4,500 | ) | ||||||||||
Balance at December 31, 2014 | $ | (728 | ) | $ | (3,788 | ) | $ | (2,959 | ) | $ | (7,475 | ) | |||||
With regard to defined benefit plans, an actuarial loss of $118,000 is expected to be recognized as a component of net periodic pension cost for the year ending December 31, 2015. There is no amortization of a transition asset expected to be recognized as a component of net periodic pension cost for the year ending December 31, 2015. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
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 in this update are effective for annual periods, and interim periods within those annual 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. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this Update create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual reporting periods, including interim periods, beginning after December 15, 2016. Early application is not permitted. Management is currently evaluating the impact to the consolidated financial statements of adopting this Update. | |||||||||||||||||
In August 2014, the FASB issued ASU 2014-14, Receivables-Troubled Debt Restructuring by Creditors (Subtopic 310-40) “Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure.” This Update clarifies the accounting classification of foreclosed mortgage loans that are fully or partially guaranteed by the Federal Housing Administration and the Department of Veterans Affairs. The amendments in this Update are effective for annual periods, and interim periods within those annual 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, 2014 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||
SECURITIES | 2. SECURITIES | |||||||||||||||||||||||||||||||||
Securities available for sale are summarized as follows: | ||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 139,637 | $ | 423 | $ | (847 | ) | $ | 139,213 | |||||||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | 1,591 | 7 | (12 | ) | 1,586 | |||||||||||||||||||||||||||||
Corporate bonds | 25,711 | 532 | (20 | ) | 26,223 | |||||||||||||||||||||||||||||
State and municipal bonds | 16,472 | 562 | — | 17,034 | ||||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 24,066 | 69 | (156 | ) | 23,979 | |||||||||||||||||||||||||||||
Mutual funds | 6,296 | 8 | (128 | ) | 6,176 | |||||||||||||||||||||||||||||
Common and preferred stock | 1,309 | 230 | — | 1,539 | ||||||||||||||||||||||||||||||
Total available for sale securities | 215,082 | 1,831 | (1,163 | ) | 215,750 | |||||||||||||||||||||||||||||
Held to maturity securities: | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | 164,001 | 2,384 | (1,453 | ) | 164,932 | |||||||||||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | 38,566 | 34 | (607 | ) | 37,993 | |||||||||||||||||||||||||||||
Corporate bonds | 24,751 | 76 | (248 | ) | 24,579 | |||||||||||||||||||||||||||||
State and municipal bonds | 7,285 | 59 | (94 | ) | 7,250 | |||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 43,477 | 257 | (852 | ) | 42,882 | |||||||||||||||||||||||||||||
Total held to maturity securities | 278,080 | 2,810 | (3,254 | ) | 277,636 | |||||||||||||||||||||||||||||
Total | $ | 493,162 | $ | 4,641 | $ | (4,417 | ) | $ | 493,386 | |||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||
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, 2014, 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-14 | ||||||||||||||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||||||||||||
Available for Sale | Held to Maturity | |||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||
Due after one year through five years | $ | 10,083 | $ | 10,132 | $ | — | $ | — | ||||||||||||||||||||||||||
Due after five years through ten years | 23,140 | 22,789 | 46,091 | 45,255 | ||||||||||||||||||||||||||||||
Due after ten years | 108,005 | 107,878 | 156,476 | 157,670 | ||||||||||||||||||||||||||||||
Total | $ | 141,228 | $ | 140,799 | $ | 202,567 | $ | 202,925 | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 2,742 | $ | 2,759 | $ | 381 | $ | 382 | ||||||||||||||||||||||||||
Due after one year through five years | 49,824 | 50,381 | 20,030 | 19,784 | ||||||||||||||||||||||||||||||
Due after five years through ten years | 13,497 | 13,890 | 40,435 | 40,048 | ||||||||||||||||||||||||||||||
Due after ten years | 186 | 206 | 14,667 | 14,497 | ||||||||||||||||||||||||||||||
Total | $ | 66,249 | $ | 67,236 | $ | 75,513 | $ | 74,711 | ||||||||||||||||||||||||||
Gross realized gains and losses on sales of securities for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Gross gains realized | $ | 801 | $ | 3,978 | $ | 4,068 | ||||||||||||||||||||||||||||
Gross losses realized | (481 | ) | (852 | ) | (1,161 | ) | ||||||||||||||||||||||||||||
Net gain realized | $ | 320 | $ | 3,126 | $ | 2,907 | ||||||||||||||||||||||||||||
Proceeds from the sales of securities available for sale amounted to $71.7 million, $206.8 million and $288.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||
The tax provisions applicable to net realized gains and losses were $109,000, $1.1 million and $1.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||
Information pertaining to securities with gross unrealized losses at December 31, 2014 and 2013 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: | ||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||
Less Than 12 Months | Over 12 Months | |||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 47 | $ | 20,637 | $ | 800 | $ | 56,830 | ||||||||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | — | — | 12 | 677 | ||||||||||||||||||||||||||||||
Corporate bonds | 17 | 4,438 | 3 | 1,497 | ||||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 52 | 9,189 | 104 | 7,396 | ||||||||||||||||||||||||||||||
Mutual funds | — | — | 128 | 5,103 | ||||||||||||||||||||||||||||||
Total available for sale | 116 | 34,264 | 1,047 | 71,503 | ||||||||||||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | 200 | 10,292 | 1,253 | 65,526 | ||||||||||||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | — | — | 607 | 31,951 | ||||||||||||||||||||||||||||||
Corporate bonds | 128 | 5,684 | 120 | 13,918 | ||||||||||||||||||||||||||||||
State and municipal bonds | — | — | 94 | 4,853 | ||||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | — | — | 852 | 33,224 | ||||||||||||||||||||||||||||||
Total held to maturity | 328 | 15,976 | 2,926 | 149,472 | ||||||||||||||||||||||||||||||
Total | $ | 444 | $ | 50,240 | $ | 3,973 | $ | 220,975 | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Less Than 12 Months | Over 12 Months | |||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||
(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 | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||
Less Than 12 Months | Over 12 Months | |||||||||||||||||||||||||||||||||
Number of Securities | Amortized Cost Basis | Gross Unrealized Losses | Depreciation from Amortized Cost Basis (%) | Number of Securities | Amortized Cost Basis | Gross Unrealized Losses | Depreciation from Amortized Cost Basis (%) | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | 13 | $ | 31,176 | $ | 247 | 0.8 | % | 31 | $ | 124,409 | $ | 2,053 | 1.7 | % | ||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | — | — | — | — | 5 | 33,247 | 619 | 1.9 | ||||||||||||||||||||||||||
Corporate Bonds | 5 | 10,267 | 145 | 1.4 | 5 | 15,538 | 123 | 0.8 | ||||||||||||||||||||||||||
State and municipal bonds | — | — | — | — | 9 | 4,947 | 94 | 1.9 | ||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 6 | 9,241 | 52 | 0.6 | 9 | 41,576 | 956 | 2.3 | ||||||||||||||||||||||||||
Mutual funds | — | — | — | — | 2 | 5,231 | 128 | 2.4 | ||||||||||||||||||||||||||
Total | $ | 50,684 | $ | 444 | $ | 224,948 | $ | 3,973 | ||||||||||||||||||||||||||
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 bases, no declines are deemed to be other-than-temporary. |
LOANS
LOANS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||
LOANS | 3. LOANS | ||||||||||||||||||||||||
Loans consisted of the following amounts: | December 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Commercial real estate | $ | 278,405 | $ | 264,476 | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 237,436 | 198,686 | |||||||||||||||||||||||
Home equity | 40,305 | 35,371 | |||||||||||||||||||||||
Commercial and industrial | 165,728 | 135,555 | |||||||||||||||||||||||
Consumer | 1,542 | 2,572 | |||||||||||||||||||||||
Total loans | 723,416 | 636,660 | |||||||||||||||||||||||
Unearned premiums and deferred loan fees and costs, net | 1,270 | 767 | |||||||||||||||||||||||
Allowance for loan losses | (7,948 | ) | (7,459 | ) | |||||||||||||||||||||
$ | 716,738 | $ | 629,968 | ||||||||||||||||||||||
During 2014 and 2013, we purchased residential real estate loans aggregating $53.3 million and $37.7 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, 2014 and 2013, we serviced loans for participants aggregating $20.5 million and $14.3 million, respectively. | |||||||||||||||||||||||||
Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances of these loans totaled $1.1 million and $1.4 million at December 31, 2014 and 2013, respectively. Net service fee income of $4,000, $5,000 and $7,000 was recorded for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in service charges and fees on the consolidated statements of income. | |||||||||||||||||||||||||
An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||||||||||||||
Commercial Real Estate | Residential Real Estate | Commercial and Industrial | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
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 | |||||||||||||
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 | $ | 3,550 | $ | 1,707 | $ | 2,191 | $ | 13 | $ | (2 | ) | $ | 7,459 | ||||||||||||
Provision | 505 | 376 | 649 | 42 | 3 | 1,575 | |||||||||||||||||||
Charge-offs | (350 | ) | (31 | ) | (787 | ) | (55 | ) | — | (1,223 | ) | ||||||||||||||
Recoveries | — | 1 | 121 | 15 | — | 137 | |||||||||||||||||||
Balance at December 31, 2014 | $ | 3,705 | $ | 2,053 | $ | 2,174 | $ | 15 | $ | 1 | $ | 7,948 | |||||||||||||
Further information pertaining to the allowance for loan losses by segment at December 31, 2014 and 2013 follows: | |||||||||||||||||||||||||
Commercial Real Estate | Residential Real Estate | Commercial and Industrial | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amount of allowance for loans individually evaluated and deemed impaired | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Amount of allowance for loans collectively or individually evaluated and not deemed impaired | 3,705 | 2,053 | 2,174 | 15 | 1 | 7,948 | |||||||||||||||||||
Total allowance for loan losses | 3,705 | 2,053 | 2,174 | 15 | 1 | 7,948 | |||||||||||||||||||
Loans individually evaluated and deemed impaired | 3,104 | 291 | 4,436 | — | — | 7,831 | |||||||||||||||||||
Loans collectively or individually evaluated and not deemed impaired | 275,301 | 277,450 | 161,292 | 1,542 | — | 715,585 | |||||||||||||||||||
Total loans | $ | 278,405 | $ | 277,741 | $ | 165,728 | $ | 1,542 | $ | — | $ | 723,416 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amount of allowance for loans individually evaluated and deemed impaired | $ | 82 | $ | — | $ | 15 | $ | — | $ | — | $ | 97 | |||||||||||||
Amount of allowance for loans collectively or individually evaluated and not deemed impaired | 3,467 | 1,707 | 2,177 | 13 | (2 | ) | 7,362 | ||||||||||||||||||
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 | |||||||||||||||||||
Loans collectively or individually 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 | |||||||||||||
The following is a summary of past due and non-accrual loans by class at December 31, 2014 and 2013: | |||||||||||||||||||||||||
30 – 59 Days Past Due | 60 – 89 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Past Due 90 Days or More and Still Accruing | Loans on Non-Accrual | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Commercial real estate | $ | 3,003 | $ | — | $ | 529 | $ | 3,532 | $ | — | $ | 3,257 | |||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 314 | 61 | 1,158 | 1,533 | — | 1,323 | |||||||||||||||||||
Home equity | 252 | — | 1 | 253 | — | 1 | |||||||||||||||||||
Commercial and industrial | 169 | — | 394 | 563 | — | 4,233 | |||||||||||||||||||
Consumer | 22 | — | 3 | 25 | — | 16 | |||||||||||||||||||
Total | $ | 3,760 | $ | 61 | $ | 2,085 | $ | 5,906 | $ | — | $ | 8,830 | |||||||||||||
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 | |||||||||||||
The following is a summary of impaired loans by class: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
At December 31, 2014 | 31-Dec-14 | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | $ | 3,104 | $ | 3,662 | $ | — | $ | 2,267 | $ | — | |||||||||||||||
Residential real estate | 291 | 407 | — | 223 | — | ||||||||||||||||||||
Commercial and industrial | 4,436 | 5,181 | — | 2,032 | — | ||||||||||||||||||||
Total | 7,831 | 9,250 | — | 4,522 | — | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | — | — | — | 8,382 | 576 | ||||||||||||||||||||
Commercial and industrial | — | — | — | 600 | 41 | ||||||||||||||||||||
Total | — | — | — | 8,982 | 617 | ||||||||||||||||||||
Total impaired loans | $ | 7,831 | $ | 9,250 | $ | — | $ | 13,504 | $ | 617 | |||||||||||||||
Year Ended | |||||||||||||||||||||||||
At December 31, 2013 | 31-Dec-13 | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income 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 | |||||||||||||||
No interest income was recognized for impaired loans on a cash-basis method during the years ended December 31, 2014 and 2013. Interest income recognized during the years ended December 31, 2014 and 2013 related to 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 troubled debt restructuring (“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 measure 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. | |||||||||||||||||||||||||
Loans modified in TDRs in 2014 and 2012 are included in the table below. There were no loans modified as TDRs in 2013. Prior to modification, the four loans listed below for 2014 had been paying interest only. Upon stabilization of the credits, the related loans were modified and placed on an amortization schedule with higher interest rates. During the third quarter of 2014, one loan relationship with a balance of $14.3 million previously restructured in March 2012 was removed from TDR status upon maturity of the existing loans. The new loans were granted under market conditions and are performing according to the terms of the loan agreements. | |||||||||||||||||||||||||
Year Ended, | Year Ended | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-12 | ||||||||||||||||||||||||
Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||
Commercial Real Estate | 1 | $ | 228 | $ | 228 | 5 | $ | 14,785 | $ | 14,785 | |||||||||||||||
Commercial and Industrial | 3 | 203 | 203 | 6 | 1,344 | 1,344 | |||||||||||||||||||
Total | 4 | $ | 431 | $ | 431 | 11 | $ | 16,129 | $ | 16,129 | |||||||||||||||
No TDRs defaulted (defined as 30 days or more past due) within 12 months of restructuring during the years ended December 31, 2014 and 2013. The following is a summary of TDRs that have subsequently defaulted within one year of modification during 2012: | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Number of Contracts | Recorded Investment | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Commercial real estate | 4 | $ | 944 | ||||||||||||||||||||||
Commercial and industrial | 1 | 141 | |||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||
Total | 5 | $ | 1,085 | ||||||||||||||||||||||
As of December 31, 2014, we have not committed to lend any additional funds for loans that are classified as impaired. There were no charge-offs on TDRs during the years ended December 31, 2014 or 2013. As of December 31, 2012, we have committed to lend an additional $113,000 to one customer with outstanding loans that are classified as TDRs. This loan will be used for building improvements to generate rental income. There were no charge-offs on TDRs during the year ended December 31, 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 $16.8 million and $23.4 million at December 31, 2014 and 2013, 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. In addition, management utilizes delinquency reports, the watch list and other loan reports to monitor credit quality in other segments. | |||||||||||||||||||||||||
The following table presents our loans by risk rating at December 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||
Commercial Real Estate | Residential | Home Equity | Commercial and Industrial | Consumer | Total | ||||||||||||||||||||
1-4 family | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Loans rated 1 – 3 | $ | 234,010 | $ | 236,113 | $ | 40,282 | $ | 139,109 | $ | 1,526 | $ | 651,040 | |||||||||||||
Loans rated 4 | 33,305 | — | — | 16,841 | — | 50,146 | |||||||||||||||||||
Loans rated 5 | 7,833 | — | 22 | 5,545 | — | 13,400 | |||||||||||||||||||
Loans rated 6 | 3,257 | 1,323 | 1 | 4,233 | 16 | 8,830 | |||||||||||||||||||
$ | 278,405 | $ | 237,436 | $ | 40,305 | $ | 165,728 | $ | 1,542 | $ | 723,416 | ||||||||||||||
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 |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
PREMISES AND EQUIPMENT | 4. PREMISES AND EQUIPMENT | ||||||||
Premises and equipment are summarized as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Land | $ | 1,826 | $ | 1,826 | |||||
Buildings | 13,293 | 13,104 | |||||||
Leasehold improvements | 2,156 | 1,622 | |||||||
Furniture and equipment | 11,951 | 10,777 | |||||||
Total | 29,226 | 27,329 | |||||||
Accumulated depreciation and amortization | (17,523 | ) | (16,334 | ) | |||||
Premises and equipment, net | $ | 11,703 | $ | 10,995 | |||||
Depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012 amounted to $1.2 million, $1.1 million and $1.0 million, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||
DEPOSITS | 5. DEPOSITS | ||||||||||||||||
Deposit accounts by type and weighted average rates are summarized as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Demand: | |||||||||||||||||
Interest-bearing | $ | 37,983 | 0.24 | % | $ | 44,924 | 0.27 | % | |||||||||
Noninterest-bearing deposits | 136,186 | — | 145,040 | — | |||||||||||||
Savings: | |||||||||||||||||
Regular | 74,970 | 0.1 | 81,244 | 0.1 | |||||||||||||
Money market | 227,330 | 0.37 | 204,469 | 0.38 | |||||||||||||
Time certificates of deposit | 357,749 | 1.19 | 341,435 | 1.28 | |||||||||||||
Total deposits | $ | 834,218 | 0.63 | % | $ | 817,112 | 0.66 | % | |||||||||
Time deposits of $100,000 or more totaled $163.5 million and $139.6 million at December 31, 2014 and 2013, respectively. Interest expense on such deposits totaled $1.7 million, $1.6 million and $1.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
At December 31, 2014, the scheduled maturities of time certificates of deposit are as follows: | |||||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
2015 | $ | 198,972 | |||||||||||||||
2016 | 75,035 | ||||||||||||||||
2017 | 35,179 | ||||||||||||||||
2018 | 17,608 | ||||||||||||||||
2019 | 30,955 | ||||||||||||||||
$ | 357,749 | ||||||||||||||||
Interest expense on deposits for the years ended December 31, 2014, 2013 and 2012 is summarized as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Regular | $ | 80 | $ | 119 | $ | 186 | |||||||||||
Money market | 846 | 762 | 807 | ||||||||||||||
Time | 4,152 | 4,509 | 4,883 | ||||||||||||||
Interest-bearing demand | 99 | 135 | 266 | ||||||||||||||
$ | 5,177 | $ | 5,525 | $ | 6,142 | ||||||||||||
Cash paid for interest on deposits totaled $5.2 million, $5.5 million and $6.2 million for years ended December 31, 2014, 2013 and 2012, respectively. |
SHORTTERM_BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
SHORT-TERM BORROWINGS | 6. SHORT-TERM BORROWINGS | ||||||||
FHLBB Advances – We have an “Ideal Way” line of credit with the FHLBB for $9.5 million for the years ended December 31, 2014 and 2013. 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, 2014, there was a $1.8 million advance outstanding under this line. There were no advances outstanding under this line at December 31, 2013. | |||||||||
FHLBB advances, including line of credit advances, with an original maturity of less than one year, amounted to $62.8 million and $20.0 million at December 31, 2014 and 2013, respectively, at a weighted average rate of 0.33% and 0.30%, respectively. | |||||||||
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. There were no advances outstanding under this line at December 31, 2014 and 2013. 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. | |||||||||
PNC Advances – We have a $50.0 million line of credit with PNC Bank at an interest rate determined and reset by PNC on a daily basis. There were no advances outstanding under the line at December 31, 2014 and 2013. | |||||||||
Customer Repurchase Agreements – The following table summarizes information regarding repurchase agreements: | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Balance outstanding at end of year | $ | 31,164 | $ | 28,197 | |||||
Maximum amount outstanding during year | 44,435 | 40,860 | |||||||
Average amount outstanding during year | 35,657 | 31,754 | |||||||
Weighted average interest rate at end of year | 0.19 | % | 0.19 | % | |||||
Amortized cost of collateral pledged at end of year (1) | 63,660 | 53,714 | |||||||
Fair value of collateral pledged at end of year (1) | 65,992 | 54,885 | |||||||
(1) Includes collateral pledged toward $5.8 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 3.56% and 3.49% at December 31, 2014 and 2013, respectively. | |||||||||
Cash paid for interest on short-term borrowings totaled $414,000, $111,000 and $114,000 for years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||
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 | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Fixed-rate advances maturing: | |||||||||||||||||||
2014 | $ | — | $ | 21,542 | — | % | 1.2 | % | |||||||||||
2015 | 30,573 | 25,395 | 1.4 | 1.6 | |||||||||||||||
2016 | 53,757 | 53,574 | 2.2 | 2.2 | |||||||||||||||
2017 | 47,500 | 17,500 | 2.4 | 2.6 | |||||||||||||||
2018 | 10,000 | 10,000 | 2.2 | 2.2 | |||||||||||||||
2019 | 5,000 | 5,000 | 3.2 | 3.2 | |||||||||||||||
2020 | 7,000 | 7,000 | 1.8 | 1.8 | |||||||||||||||
153,830 | 140,011 | 2.1 | % | 2 | % | ||||||||||||||
Variable-rate advances maturing: | |||||||||||||||||||
2015 | 9,877 | 9,736 | 0.9 | 0.9 | |||||||||||||||
2016 | 10,000 | 10,000 | 1.4 | 1.4 | |||||||||||||||
2017 | — | 30,000 | — | (0.2 | ) | ||||||||||||||
2018* | 32,000 | 32,000 | 0.4 | 0.4 | |||||||||||||||
2019* | 11,000 | 11,000 | (0.1 | ) | (0.1 | ) | |||||||||||||
62,877 | 92,736 | 0.5 | 0.3 | ||||||||||||||||
$ | 216,707 | $ | 232,747 | 1.6 | % | 1.3 | % | ||||||||||||
Total advances | |||||||||||||||||||
*At December 31, 2014, the following amounts are callable at the option of FHLBB: $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 2.3% for the 2015 call. At December 31, 2013 there were $30.0 million in FHLBB advances that were callable. | |||||||||||||||||||
At December 31, 2014 and 2013, securities pledged as collateral to the FHLB had a carrying value of $257.5 million and $245.1 million, respectively. | |||||||||||||||||||
Customer Repurchase Agreements - At December 31, 2014, we had one long-term customer repurchase agreement for $5.8 million with a rate of 2.5% and a final maturity in 2015. 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. | |||||||||||||||||||
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 $12.6 million and $12.4 million as of December 31, 2014 and 2013, respectively. We may be required to provide additional collateral based on the fair value of the underlying securities. | |||||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Fixed-rates maturing: | |||||||||||||||||||
2018* | $ | 10,000 | * | $ | 10,000 | 2.7 | % | 2.7 | % | ||||||||||
*Callable in 2015 | |||||||||||||||||||
Cash paid for interest on long-term debt totaled $4.3 million, $4.6 million and $6.5 million for years ended December 31, 2014, 2013 and 2012, 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%. |
STOCK_PLANS_AND_EMPLOYEE_STOCK
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
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, were granted. The exercise price of each option equaled 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 was 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, 57,232 stock options that had been available for future grants were returned to the 2007 Stock Option Plan reserve and the 2002 and 2007 Stock Option Plans were frozen. | |||||||||||||||||
No stock options were granted in 2014 or 2013, and no stock options were outstanding during 2014. | |||||||||||||||||
For the years ended December 31, 2013 and 2012, share-based compensation expense applicable to stock options was $128,000 and $642,000, respectively, with related tax benefits of $35,000 and $173,000, 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, 2013. | |||||||||||||||||
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, 2014. 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, 2014 is presented below: | |||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
Balance at December 31, 2013 | 25,720 | $ | 7.93 | ||||||||||||||
Shares vested | (12,720 | ) | 7.79 | ||||||||||||||
Balance at December 31, 2014 | 13,000 | $ | 8.07 | ||||||||||||||
We recorded total expense for restricted stock awards of $92,000, $126,000 and $963,000 for the years ended December 31, 2014, 2013, and 2012, respectively. Tax provisions related to equity incentive plan expense were $1,000, $1,000 and $96,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Unrecognized compensation cost for stock awards was $95,000 at December 31, 2014 with a remaining life of 1.71 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, 2014, the remaining principal balances are payable as follows: | |||||||||||||||||
Year Ending | |||||||||||||||||
December 31, | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
2015 | $ | 447 | |||||||||||||||
2016 | 447 | ||||||||||||||||
2017 | 447 | ||||||||||||||||
2018 | 447 | ||||||||||||||||
2019 | 447 | ||||||||||||||||
Thereafter | 6,587 | ||||||||||||||||
$ | 8,822 | ||||||||||||||||
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 $576,000, $599,000 and $628,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Shares held by the ESOP include the following at December 31, 2014 and 2013: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Allocated | 739,506 | 662,013 | |||||||||||||||
Committed to be allocated | 79,345 | 81,803 | |||||||||||||||
Unallocated | 1,040,751 | 1,120,096 | |||||||||||||||
1,859,602 | 1,863,912 | ||||||||||||||||
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 $7.6 million and $8.4 million at December 31, 2014 and 2013, 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, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
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, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at beginning of year | $ | 19,039 | $ | 18,752 | $ | 18,326 | |||||||||||
Service cost | 1,000 | 1,170 | 1,094 | ||||||||||||||
Interest | 824 | 763 | 800 | ||||||||||||||
Actuarial loss (gain) | 3,085 | (1,540 | ) | 27 | |||||||||||||
Benefits paid | (314 | ) | (106 | ) | (1,495 | ) | |||||||||||
Benefit obligation at end of year | 23,634 | 19,039 | 18,752 | ||||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 13,811 | 12,200 | 11,377 | ||||||||||||||
Actual return on plan assets | 1,725 | 992 | 818 | ||||||||||||||
Employer contribution | 725 | 725 | 1,500 | ||||||||||||||
Benefits paid | (314 | ) | (106 | ) | (1,495 | ) | |||||||||||
Fair value of plan assets at end of year | 15,947 | 13,811 | 12,200 | ||||||||||||||
Funded status and accrued benefit at end of year | $ | (7,687 | ) | $ | (5,228 | ) | $ | (6,552 | ) | ||||||||
Accumulated benefit obligation at end of year | $ | 16,423 | $ | 13,192 | $ | 13,297 | |||||||||||
The following actuarial assumptions were used in determining the pension benefit obligation: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discount rate | 4 | % | 5 | % | |||||||||||||
Rate of compensation increase | 4 | 4 | |||||||||||||||
Net pension cost includes the following components for the years ended December 31: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 1,000 | $ | 1,170 | $ | 1,094 | |||||||||||
Interest cost | 824 | 763 | 800 | ||||||||||||||
Expected return on assets | (959 | ) | (948 | ) | (867 | ) | |||||||||||
Amortization of transition asset | (10 | ) | (12 | ) | (12 | ) | |||||||||||
Amortization of actuarial loss | — | 117 | 175 | ||||||||||||||
Net periodic pension cost | $ | 855 | $ | 1,090 | $ | 1,190 | |||||||||||
The following actuarial assumptions were used in determining the service costs for the years ended December 31: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 5 | % | 4 | % | 4.5 | % | |||||||||||
Expected return on plan assets | 7.5 | 8 | 8 | ||||||||||||||
Rate of compensation increase | 4 | 4 | 4 | ||||||||||||||
The fair value of major categories of our pension plan assets are summarized below: | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Plan Assets | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(In thousands) | |||||||||||||||||
Large U.S. equity | $ | — | $ | 3,845 | $ | — | $ | 3,845 | |||||||||
Small/mid U.S. equity | — | 924 | — | 924 | |||||||||||||
International equity | — | 1,385 | — | 1,385 | |||||||||||||
Balanced/asset allocation | — | 744 | — | 744 | |||||||||||||
Short-term fixed income | — | 1,582 | — | 1,582 | |||||||||||||
Fixed income | — | 7,467 | — | 7,467 | |||||||||||||
$ | — | $ | 15,947 | $ | — | $ | 15,947 | ||||||||||
31-Dec-13 | |||||||||||||||||
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 | ||||||||||
Plan assets are all 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. | |||||||||||||||||
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 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 2014 was an equity-based investment deployment of 44% 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 56% of total assets. 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) | |||||||||||||||||
2015 | $ | 757 | |||||||||||||||
2016 | 1,998 | ||||||||||||||||
2017 | 426 | ||||||||||||||||
2018 | 1,012 | ||||||||||||||||
2019 | 791 | ||||||||||||||||
In aggregate for 2020 – 2024 | 6,509 | ||||||||||||||||
We have not yet determined the amount of the contribution we expect to make to the plan during the fiscal year ending December 31, 2015. | |||||||||||||||||
Postretirement Benefits - We provided postretirement life insurance benefits to employees based on the employee’s salary at time of retirement. As of December 31, 2014 and 2013, the accrued liability recorded in other liabilities on the consolidated balance sheets amounted to $158,000 and $217,000, respectively. Total expense associated with this plan amounted to $23,000, $27,000 and $29,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
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 $236,000, $231,000 and $214,000 for the years ended December 31, 2014, 2013 and 2012, respectively. |
DERIVATIVES_AND_HEDGING_ACTIVI
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | 10. DERIVATIVES 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 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, 2014. | |||||||||||||||||||||
31-Dec-14 | Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||
Location | Location | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | Other Assets | $ | 9 | Other Liabilities | $ | 5,748 | |||||||||||||||
Total derivatives designated as hedging instruments | $ | 9 | $ | 5,748 | |||||||||||||||||
31-Dec-13 | 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, 2014 and 2013, all derivatives were designated as hedging instruments. | |||||||||||||||||||||
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, 2014 and 2013: | |||||||||||||||||||||
December 31, 2014 | Notional | Weighted Average | Weighted Average Rate | Estimated Fair | |||||||||||||||||
Amount | Maturity | Receive | Pay | Value | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||||
Interest rate swaps on FHLBB borrowings | $ | 40,000 | 3.3 | 0.23 | % | 1.52 | % | $ | (268 | ) | |||||||||||
Forward starting interest rate swaps on FHLBB borrowings | 115,000 | 6.7 | — | 3.11 | % | (5,471 | ) | ||||||||||||||
Total cash flow hedges | $ | 155,000 | 5.8 | $ | (5,739 | ) | |||||||||||||||
31-Dec-13 | Notional | Weighted 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 forward-starting interest rate swaps will become effective in 2015 and 2016 with notional amounts of $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. 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 2014 or 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). | |||||||||||||||||||||
The table below presents the pre-tax net (loss) gain of our cash flow hedges for the period indicated. | |||||||||||||||||||||
Amount of (Loss) Gain Recognized in | |||||||||||||||||||||
OCI on Derivative (Effective Portion) | |||||||||||||||||||||
Years Ended December 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | $ | (7,684 | ) | $ | 1,755 | ||||||||||||||||
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 year ended December 31, 2014, we reclassified $190,000 into interest expense. During the period ended December 31, 2013, we had no reclassifications to interest expense. During the next 12 months, we estimate that $931,000 will be reclassified as an increase in interest expense. During the years ended December 31, 2014 and 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. | |||||||||||||||||||||
At December 31, 2014, we had a net liability position of $5.9 million with our counterparties. As of December 31, 2013, we had no derivatives in a net liability position. |
REGULATORY_CAPITAL
REGULATORY CAPITAL | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
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, 2014 and 2013, 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, 2014 and 2013 are set forth in the following table. | |||||||||||||||||||||||||
As of December 31, 2014, 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 Adequacy Purposes | Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 158,016 | 18.68 | % | $ | 67,675 | 8 | % | N/A | — | |||||||||||||||
Bank | 150,392 | 17.81 | 67,549 | 8 | $ | 84,436 | 10 | % | |||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | 150,018 | 17.73 | 33,838 | 4 | N/A | — | |||||||||||||||||||
Bank | 142,383 | 16.86 | 33,775 | 4 | 50,662 | 6 | |||||||||||||||||||
Tier 1 Capital (to Adjusted Total Assets): | |||||||||||||||||||||||||
Consolidated | 150,018 | 11.3 | 53,103 | 4 | N/A | — | |||||||||||||||||||
Bank | 142,383 | 10.74 | 53,035 | 4 | 66,293 | 5 | |||||||||||||||||||
Tangible Equity (to Tangible Assets): | |||||||||||||||||||||||||
Consolidated | N/A | — | N/A | — | N/A | — | |||||||||||||||||||
Bank | 142,383 | 10.74 | 19,888 | 1.5 | N/A | — | |||||||||||||||||||
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 | — | |||||||||||||||||||
The following is a reconciliation of our GAAP capital to regulatory Tier 1 and total capital: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Consolidated GAAP capital | $ | 142,543 | $ | 154,144 | |||||||||||||||||||||
Net unrealized losses on available-for-sale securities, net of tax | 728 | 2,706 | |||||||||||||||||||||||
Unrealized loss on defined benefit pension plan, net of tax | 2,959 | 1,427 | |||||||||||||||||||||||
Accumulated net loss (gain) on cash flow hedges, net of tax | 3,788 | (1,158 | ) | ||||||||||||||||||||||
Tier 1 capital | 150,018 | 157,119 | |||||||||||||||||||||||
Unrealized gains on certain available-for-sale equity securities | 50 | 27 | |||||||||||||||||||||||
Allowance for loan losses | 7,948 | 7,459 | |||||||||||||||||||||||
Total regulatory capital | $ | 158,016 | $ | 164,605 | |||||||||||||||||||||
On March 13, 2014, the Board of Directors authorized the commencement of our current stock repurchase program, authorizing the repurchase of up to 1,970,000 shares, or 10% of our outstanding shares of common stock. There were 999,460 shares available to be purchased under the repurchase program as of December 31, 2014. | |||||||||||||||||||||||||
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, 2014 and 2013, 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, $67.6 million and $62.1 million of our equity in the net assets of the Bank was restricted at December 31, 2014 and 2013, 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. | |||||||||||||||||||||||||
In July 2013, federal banking regulators approved final rules that implement changes to the regulatory capital framework for U.S. banks. The rules set minimum requirements for both the quantity and quality of capital held by community banking institutions. The final rule includes a new minimum ratio of common equity Tier 1 capital to risk weighted assets of 4.5%, raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and includes a minimum leverage ratio of 4% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers. The phase-in period for the rules will begin for the Bank on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule. Management believes that the Company will be characterized as “well-capitalized” under the new rules. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
INCOME TAXES | 12. INCOME TAXES | ||||||||||||
Income taxes consist of the following: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current tax provision: | |||||||||||||
Federal | $ | 1,854 | $ | 795 | $ | 1,856 | |||||||
State | 221 | 96 | 215 | ||||||||||
Total | 2,075 | 891 | 2,071 | ||||||||||
Deferred tax (benefit) provision: | |||||||||||||
Federal | (188 | ) | 980 | 184 | |||||||||
State | (5 | ) | — | 1 | |||||||||
Total | (193 | ) | 980 | 185 | |||||||||
Total | $ | 1,882 | $ | 1,871 | $ | 2,256 | |||||||
The reasons for the differences between the statutory federal income tax rate and the effective rates are summarized below: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal income tax rate | 34 | % | 34 | % | 34 | % | |||||||
Increase (decrease) resulting from: | |||||||||||||
State taxes, net of federal tax benefit | 1.8 | 0.7 | 1.7 | ||||||||||
Tax exempt income | (4.1 | ) | (4.7 | ) | (6.4 | ) | |||||||
Bank-owned life insurance (BOLI) | (6.4 | ) | (6.1 | ) | (5.7 | ) | |||||||
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 | (1.9 | ) | 3.2 | 1.3 | |||||||||
Effective tax rate | 23.4 | % | 21.7 | % | 26.5 | % | |||||||
Cash paid for income taxes for the years ended December 31, 2014, 2013 and 2012 was $2.0 million, $941,000 and $2.6 million, respectively. | |||||||||||||
The tax effects of each item that gives rise to deferred taxes are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 2,702 | $ | 2,536 | |||||||||
Employee benefit and share-based compensation plans | 2,133 | 2,071 | |||||||||||
Net unrealized loss on derivative and hedging activity | 1,951 | — | |||||||||||
Defined benefit plan | 1,525 | 735 | |||||||||||
Net unamortized loss on securities transferred from available for sale to held to maturity | 617 | 599 | |||||||||||
Net unrealized loss on securities available for sale | — | 837 | |||||||||||
Other-than-temporary impairment write-down | 110 | 110 | |||||||||||
Other | 312 | 334 | |||||||||||
9,350 | 7,222 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred loan fees | (267 | ) | (117 | ) | |||||||||
Net unrealized gain on securities available for sale | (226 | ) | — | ||||||||||
Net unrealized gain on derivative and hedging activity | — | (597 | ) | ||||||||||
Other | (38 | ) | (174 | ) | |||||||||
(531 | ) | (888 | ) | ||||||||||
Net deferred tax asset | $ | 8,819 | $ | 6,334 | |||||||||
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, 2014 or 2013 which require accrual or disclosure. We record interest and penalties as part of income tax expense. No interest was recorded for the years ended December 31, 2014 and 2012, and no penalties were recorded for the years ended December 31, 2014, 2013 and 2012. Interest of $9,000 was recorded for the year ended December 31, 2013. | |||||||||||||
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, 2011 through 2014. The years open to examination by state taxing authorities vary by jurisdiction; however, no years prior to 2011 are open. |
TRANSACTIONS_WITH_DIRECTORS_AN
TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
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, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance at beginning of year | $ | 6,225 | $ | 16,264 | |||||
Principal distributions | 504 | 2,713 | |||||||
Repayments of principal | (3,897 | ) | (2,635 | ) | |||||
Change in related party status | 49 | (10,117 | ) | ||||||
Balance at end of year | $ | 2,881 | $ | 6,225 |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
OMMITMENTS 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, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Commitments to extend credit: | |||||||||
Unused lines of credit | $ | 110,411 | $ | 99,899 | |||||
Loan commitments | 49,897 | 10,260 | |||||||
Existing construction loan agreements | 11,419 | 14,667 | |||||||
Standby letters of credit | 3,033 | 1,728 | |||||||
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, 2014, 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, 2014, the fair value of the interest rate swap was $1,500 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, 2014, we would have been required to make payments of approximately $750. | |||||||||
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, 2014, outstanding commitments to extend credit totaled $174.8 million, with $33.2 million in fixed rate commitments with interest rates ranging from 2.45% to 18.00% and $141.6 million in variable rate commitments. 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. | |||||||||
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 $707,000, $671,000, and $625,000 for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
Aggregate future minimum rental payments under the terms of non-cancelable operating leases at December 31, 2014, are as follows: | |||||||||
Year Ending December 31, | Amount | ||||||||
(In thousands) | |||||||||
2015 | $ | 653 | |||||||
2016 | 521 | ||||||||
2017 | 406 | ||||||||
2018 | 377 | ||||||||
2019 | 355 | ||||||||
Thereafter | 3,859 | ||||||||
$ | 6,171 | ||||||||
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, 2014 | |
Risks and Uncertainties [Abstract] | |
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, 2014 and 2013, our residential and commercial related real estate loans represented 76.9% and 78.3% 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, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
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. The carrying amounts of interest-bearing deposits in banks 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. 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 and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | (In thousands) | ||||||||||||||||||||
Government-sponsored residential mortgage-backed securities | $ | — | $ | 139,213 | $ | — | $ | 139,213 | |||||||||||||
U.S. government guaranteed residential mortgage-backed securities | — | 1,586 | — | 1,586 | |||||||||||||||||
Corporate bonds | — | 26,223 | — | 26,223 | |||||||||||||||||
State and municipal bonds | — | 17,034 | — | 17,034 | |||||||||||||||||
Government-sponsored enterprise obligations | — | 23,979 | — | 23,979 | |||||||||||||||||
Mutual funds | 6,176 | — | — | 6,176 | |||||||||||||||||
Common and preferred stock | 1,539 | — | — | 1,539 | |||||||||||||||||
Total securities available for sale | 7,715 | 208,035 | — | 215,750 | |||||||||||||||||
Interest rate swaps | — | 9 | — | 9 | |||||||||||||||||
Total assets | $ | 7,715 | $ | 208,044 | $ | — | $ | 215,759 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | $ | — | $ | 5,748 | $ | — | $ | 5,748 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | (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 | |||||||||||||
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, 2014 and 2013. There were no liabilities measured at fair value on a recurring basis at December 31, 2013. | |||||||||||||||||||||
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 the carrying values of the related assets as of December 31, 2014 and 2013. | |||||||||||||||||||||
At | Year Ended | ||||||||||||||||||||
31-Dec-14 | 31-Dec-14 | ||||||||||||||||||||
Total | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Losses | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 5,149 | $ | (1,036 | ) | ||||||||||||
Total assets | $ | — | $ | — | $ | 5,149 | $ | (1,036 | ) | ||||||||||||
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 | ) | ||||||||||||
The amount of impaired loans represents the carrying value, and net of the related write-down or 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. | |||||||||||||||||||||
There were no liabilities measured at fair value on a non-recurring basis at December 31, 2014 or 2013. | |||||||||||||||||||||
Summary of Fair Values of Financial Instruments | |||||||||||||||||||||
The estimated fair values of our financial instruments are as follows: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 18,785 | $ | 18,785 | $ | — | $ | — | $ | 18,785 | |||||||||||
Securities available for sale | 215,750 | 7,715 | 208,035 | — | 215,750 | ||||||||||||||||
Securities held to maturity | 278,080 | — | 277,636 | — | 277,636 | ||||||||||||||||
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | — | — | 14,934 | 14,934 | ||||||||||||||||
Loans - net | 716,738 | — | — | 721,818 | 721,818 | ||||||||||||||||
Accrued interest receivable | 4,213 | — | — | 4,213 | 4,213 | ||||||||||||||||
Derivative assets | 9 | — | 9 | — | 9 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | 834,218 | — | — | 834,838 | 834,838 | ||||||||||||||||
Short-term borrowings | 93,997 | — | 93,997 | — | 93,997 | ||||||||||||||||
Long-term debt | 232,479 | — | 236,457 | — | 236,457 | ||||||||||||||||
Accrued interest payable | 501 | — | — | 501 | 501 | ||||||||||||||||
Derivative liabilities | 5,748 | — | 5,748 | — | 5,748 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying Value | Fair 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 | ||||||||||||||||
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, 2014 | |
Segment Reporting [Abstract] | |
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 and northern Connecticut. For the years ended December 31, 2014, 2013 and 2012, 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, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS | 18. CONDENSED PARENT COMPANY FINANCIAL STATEMENTS | ||||||||||||
The condensed balance sheets of the parent company are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
ASSETS: | |||||||||||||
Cash equivalents | $ | 178 | $ | 158 | |||||||||
Securities available for sale | 1,539 | 1,599 | |||||||||||
Investment in subsidiaries | 134,836 | 146,951 | |||||||||||
ESOP loan receivable | 8,822 | 9,269 | |||||||||||
Other assets | 6,184 | 5,912 | |||||||||||
TOTAL ASSETS | 151,559 | 163,889 | |||||||||||
LIABILITIES: | |||||||||||||
ESOP loan payable | 8,822 | 9,269 | |||||||||||
Other liabilities | 194 | 476 | |||||||||||
EQUITY | 142,543 | 154,144 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 151,559 | $ | 163,889 | |||||||||
The condensed statements of income for the parent company are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
INCOME: | |||||||||||||
Dividends from subsidiaries | $ | 14,712 | $ | 26,964 | $ | 42,372 | |||||||
Interest income from securities | 31 | 16 | 68 | ||||||||||
ESOP loan interest income | 741 | 777 | 813 | ||||||||||
Gain on sale of securities, net | — | 3 | — | ||||||||||
Total income | 15,484 | 27,760 | 43,253 | ||||||||||
OPERATING EXPENSE: | |||||||||||||
Salaries and employee benefits | 697 | 879 | 2,262 | ||||||||||
ESOP interest | 741 | 777 | 813 | ||||||||||
Other | 503 | 586 | 511 | ||||||||||
Total operating expense | 1,941 | 2,242 | 3,586 | ||||||||||
INCOME BEFORE EQUITY IN UNDISTRIBUTED | |||||||||||||
INCOME OF SUBSIDIARIES AND INCOME TAXES | 13,543 | 25,518 | 39,667 | ||||||||||
EQUITY IN UNDISTRIBUTED LOSS OF | (7,655 | ) | (19,073 | ) | (34,130 | ) | |||||||
SUBSIDIARIES | |||||||||||||
NET INCOME BEFORE TAXES | 5,888 | 6,445 | 5,537 | ||||||||||
INCOME TAX BENEFIT | (274 | ) | (311 | ) | (717 | ) | |||||||
NET INCOME | $ | 6,162 | $ | 6,756 | $ | 6,254 | |||||||
The condensed statements of cash flows of the parent company are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
OPERATING ACTIVITIES: | |||||||||||||
Net income | $ | 6,162 | $ | 6,756 | $ | 6,254 | |||||||
Dividends in excess of earnings of subsidiaries | 7,655 | 19,073 | 34,130 | ||||||||||
Net realized securities gains | — | (3 | ) | — | |||||||||
Change in other liabilities | (409 | ) | 198 | 36 | |||||||||
Change in other assets | 174 | (487 | ) | (271 | ) | ||||||||
Other, net | 667 | 1,422 | 2,089 | ||||||||||
Net cash provided by operating activities | 14,249 | 26,959 | 42,238 | ||||||||||
INVESTING ACTIVITIES: | |||||||||||||
Purchase of securities | (235 | ) | (349 | ) | (1,533 | ) | |||||||
Proceeds from principal collections of securities | — | 1,307 | 575 | ||||||||||
Sales of securities | 235 | 352 | 566 | ||||||||||
Net cash provided by (used in) investing activities | — | 1,310 | (392 | ) | |||||||||
FINANCING ACTIVITIES: | |||||||||||||
Cash dividends paid | (3,832 | ) | (5,872 | ) | (10,721 | ) | |||||||
Common stock repurchased | (10,518 | ) | (20,093 | ) | (32,083 | ) | |||||||
Tender offer to purchase outstanding options | 121 | (2,151 | ) | — | |||||||||
Excess tax expense in connection with tender offer completion | — | (566 | ) | ||||||||||
Excess tax (shortfall) benefit from share-based compensation | — | (1 | ) | 144 | |||||||||
Issuance of common stock to ESOP | — | — | — | ||||||||||
Issuance of common stock in connection with stock | |||||||||||||
option exercises | — | — | 1,041 | ||||||||||
Repayment of long-term debt | — | — | (446 | ) | |||||||||
Net cash used in financing activities | (14,229 | ) | (28,683 | ) | (42,065 | ) | |||||||
NET DECREASE IN CASH AND | |||||||||||||
CASH EQUIVALENTS | 20 | (414 | ) | (219 | ) | ||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||
Beginning of year | 158 | 572 | 791 | ||||||||||
End of year | $ | 178 | $ | 158 | $ | 572 | |||||||
Supplemental cashflow information: | |||||||||||||
Net cash due to (from) broker for common stock repurchased | — | 299 | (352 | ) | |||||||||
OTHER_NONINTEREST_EXPENSE
OTHER NONINTEREST EXPENSE | 12 Months Ended |
Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |
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, 2014, 2013 and 2012. |
SUMMARY_OF_QUARTERLY_FINANCIAL
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
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. | |||||||||||||||||
2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Interest and dividend income | $ | 10,034 | $ | 10,143 | $ | 10,343 | $ | 10,471 | |||||||||
Interest expense | 2,379 | 2,442 | 2,509 | 2,593 | |||||||||||||
Net interest and dividend income | 7,655 | 7,701 | 7,834 | 7,878 | |||||||||||||
Provision for loan losses | 100 | 450 | 750 | 275 | |||||||||||||
Other noninterest income | 1,049 | 1,018 | 1,039 | 1,033 | |||||||||||||
Gain on sales of securities, net | 29 | 21 | 226 | 44 | |||||||||||||
Noninterest expense | 6,534 | 6,531 | 6,348 | 6,496 | |||||||||||||
Income before income taxes | 2,099 | 1,759 | 2,001 | 2,184 | |||||||||||||
Income tax provision | 451 | 417 | 491 | 523 | |||||||||||||
Net income | $ | 1,648 | $ | 1,342 | $ | 1,510 | $ | 1,661 | |||||||||
Basic earnings per share | $ | 0.09 | $ | 0.07 | $ | 0.08 | $ | 0.09 | |||||||||
Diluted earnings per share | $ | 0.09 | $ | 0.07 | $ | 0.08 | $ | 0.09 | |||||||||
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 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation - Westfield Financial, Inc. (“Westfield Financial,” the “Company,” “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 13 banking offices in western Massachusetts and Granby and Enfield, 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 $690,000 at December 31, 2014 and $975,000 at December 31, 2013. There were no cash reserve requirements for the Federal Reserve Bank of Boston at December 31, 2014 or 2013. | ||||||||||||||||
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 - We enter into interest rate swap agreements as part of our interest-rate risk management strategy for certain assets and liabilities and not for speculative purposes. Based on our intended use for 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 our 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 our quarterly analysis is recorded directly to earnings. We 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 and liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. | ||||||||||||||||
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 and liabilities; 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 and liabilities. | |||||||||||||||||
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 and liabilities. 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, 2014, 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, allocated and unallocated 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. Residential real estate loans include classes for residential and home equity. 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 2014, 2013 and 2012. | |||||||||||||||||
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, 2014 and 2013. | |||||||||||||||||
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. 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. 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. | ||||||||||||||||
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, 2014 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, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Net income applicable to common stock | $ | 6,162 | $ | 6,756 | $ | 6,254 | |||||||||||
Average number of common shares issued | 19,274 | 21,254 | 25,763 | ||||||||||||||
Less: Average unallocated ESOP Shares | (1,090 | ) | (1,171 | ) | (1,254 | ) | |||||||||||
Less: Average ungranted equity incentive plan shares | — | (4 | ) | (7 | ) | ||||||||||||
Average number of common shares outstanding used to calculate basic earnings per common share | 18,184 | 20,079 | 24,502 | ||||||||||||||
Effect of dilutive stock options | — | — | 18 | ||||||||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 18,184 | 20,079 | 24,520 | ||||||||||||||
Basic earnings per share | $ | 0.34 | $ | 0.34 | $ | 0.26 | |||||||||||
Diluted earnings per share | $ | 0.34 | $ | 0.34 | $ | 0.26 | |||||||||||
Antidilutive shares (1) | — | 833 | 1,666 | ||||||||||||||
____________________ | |||||||||||||||||
-1 | Options 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 the Company’s common stock. At December 31, 2014, there were no stock options outstanding. | ||||||||||||||||
Comprehensive Income (Loss) | The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Net unrealized gains (losses) on securities available for sale | $ | 668 | $ | (2,410 | ) | ||||||||||||
Tax effect | (226 | ) | 837 | ||||||||||||||
Net-of-tax amount | 442 | (1,573 | ) | ||||||||||||||
Net unamortized losses on securities transferred from available-for-sale to held-to-maturity | (1,787 | ) | (1,732 | ) | |||||||||||||
Tax effect | 617 | 599 | |||||||||||||||
Net-of-tax amount | (1,170 | ) | (1,133 | ) | |||||||||||||
Fair value of derivatives used for cash flow hedges | (5,739 | ) | 1,755 | ||||||||||||||
Tax effect | 1,951 | (597 | ) | ||||||||||||||
Net-of-tax amount | (3,788 | ) | 1,158 | ||||||||||||||
Unrecognized transition asset pertaining to defined benefit plan | — | 10 | |||||||||||||||
Unrecognized deferred loss pertaining to defined benefit plan | (4,484 | ) | (2,172 | ) | |||||||||||||
Net adjustments pertaining to defined benefit plans | (4,484 | ) | (2,162 | ) | |||||||||||||
Tax effect | 1,525 | 735 | |||||||||||||||
Net-of-tax amount | (2,959 | ) | (1,427 | ) | |||||||||||||
Accumulated other comprehensive loss | $ | (7,475 | ) | $ | (2,975 | ) | |||||||||||
The following table presents changes in accumulated other comprehensive loss for the years ended December 31, 2014 and 2013 by component: | |||||||||||||||||
Securities | Derivatives | Defined Benefit Pension Plans | Accumulated Other Comprehensive Loss | ||||||||||||||
(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, 2013 | $ | (2,706 | ) | $ | 1,158 | $ | (1,427 | ) | $ | (2,975 | ) | ||||||
Current-period other comprehensive (loss) income | 1,978 | (4,946 | ) | (1,532 | ) | (4,500 | ) | ||||||||||
Balance at December 31, 2014 | $ | (728 | ) | $ | (3,788 | ) | $ | (2,959 | ) | $ | (7,475 | ) | |||||
With regard to defined benefit plans, an actuarial loss of $118,000 is expected to be recognized as a component of net periodic pension cost for the year ending December 31, 2015. There is no amortization of a transition asset expected to be recognized as a component of net periodic pension cost for the year ending December 31, 2015. | |||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||||
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 in this update are effective for annual periods, and interim periods within those annual 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. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this Update create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual reporting periods, including interim periods, beginning after December 15, 2016. Early application is not permitted. Management is currently evaluating the impact to the consolidated financial statements of adopting this Update. | |||||||||||||||||
In August 2014, the FASB issued ASU 2014-14, Receivables-Troubled Debt Restructuring by Creditors (Subtopic 310-40) “Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure.” This Update clarifies the accounting classification of foreclosed mortgage loans that are fully or partially guaranteed by the Federal Housing Administration and the Department of Veterans Affairs. The amendments in this Update are effective for annual periods, and interim periods within those annual 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, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
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, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Net income applicable to common stock | $ | 6,162 | $ | 6,756 | $ | 6,254 | |||||||||||
Average number of common shares issued | 19,274 | 21,254 | 25,763 | ||||||||||||||
Less: Average unallocated ESOP Shares | (1,090 | ) | (1,171 | ) | (1,254 | ) | |||||||||||
Less: Average ungranted equity incentive plan shares | — | (4 | ) | (7 | ) | ||||||||||||
Average number of common shares outstanding used to calculate basic earnings per common share | 18,184 | 20,079 | 24,502 | ||||||||||||||
Effect of dilutive stock options | — | — | 18 | ||||||||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 18,184 | 20,079 | 24,520 | ||||||||||||||
Basic earnings per share | $ | 0.34 | $ | 0.34 | $ | 0.26 | |||||||||||
Diluted earnings per share | $ | 0.34 | $ | 0.34 | $ | 0.26 | |||||||||||
Antidilutive shares (1) | — | 833 | 1,666 | ||||||||||||||
____________________ | |||||||||||||||||
-1 | Options 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 the Company’s common stock. At December 31, 2014, there were no stock options outstanding. | ||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity | The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Net unrealized gains (losses) on securities available for sale | $ | 668 | $ | (2,410 | ) | ||||||||||||
Tax effect | (226 | ) | 837 | ||||||||||||||
Net-of-tax amount | 442 | (1,573 | ) | ||||||||||||||
Net unamortized losses on securities transferred from available-for-sale to held-to-maturity | (1,787 | ) | (1,732 | ) | |||||||||||||
Tax effect | 617 | 599 | |||||||||||||||
Net-of-tax amount | (1,170 | ) | (1,133 | ) | |||||||||||||
Fair value of derivatives used for cash flow hedges | (5,739 | ) | 1,755 | ||||||||||||||
Tax effect | 1,951 | (597 | ) | ||||||||||||||
Net-of-tax amount | (3,788 | ) | 1,158 | ||||||||||||||
Unrecognized transition asset pertaining to defined benefit plan | — | 10 | |||||||||||||||
Unrecognized deferred loss pertaining to defined benefit plan | (4,484 | ) | (2,172 | ) | |||||||||||||
Net adjustments pertaining to defined benefit plans | (4,484 | ) | (2,162 | ) | |||||||||||||
Tax effect | 1,525 | 735 | |||||||||||||||
Net-of-tax amount | (2,959 | ) | (1,427 | ) | |||||||||||||
Accumulated other comprehensive loss | $ | (7,475 | ) | $ | (2,975 | ) | |||||||||||
Changes in Accumulated Other Comprehensive (Loss) Income | The following table presents changes in accumulated other comprehensive loss for the years ended December 31, 2014 and 2013 by component: | ||||||||||||||||
Securities | Derivatives | Defined Benefit Pension Plans | Accumulated Other Comprehensive Loss | ||||||||||||||
(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, 2013 | $ | (2,706 | ) | $ | 1,158 | $ | (1,427 | ) | $ | (2,975 | ) | ||||||
Current-period other comprehensive (loss) income | 1,978 | (4,946 | ) | (1,532 | ) | (4,500 | ) | ||||||||||
Balance at December 31, 2014 | $ | (728 | ) | $ | (3,788 | ) | $ | (2,959 | ) | $ | (7,475 | ) | |||||
SECURITIES_Tables
SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of securities available for sale and held to maturity | Securities available for sale are summarized as follows: | |||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 139,637 | $ | 423 | $ | (847 | ) | $ | 139,213 | |||||||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | 1,591 | 7 | (12 | ) | 1,586 | |||||||||||||||||||||||||||||
Corporate bonds | 25,711 | 532 | (20 | ) | 26,223 | |||||||||||||||||||||||||||||
State and municipal bonds | 16,472 | 562 | — | 17,034 | ||||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 24,066 | 69 | (156 | ) | 23,979 | |||||||||||||||||||||||||||||
Mutual funds | 6,296 | 8 | (128 | ) | 6,176 | |||||||||||||||||||||||||||||
Common and preferred stock | 1,309 | 230 | — | 1,539 | ||||||||||||||||||||||||||||||
Total available for sale securities | 215,082 | 1,831 | (1,163 | ) | 215,750 | |||||||||||||||||||||||||||||
Held to maturity securities: | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | 164,001 | 2,384 | (1,453 | ) | 164,932 | |||||||||||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | 38,566 | 34 | (607 | ) | 37,993 | |||||||||||||||||||||||||||||
Corporate bonds | 24,751 | 76 | (248 | ) | 24,579 | |||||||||||||||||||||||||||||
State and municipal bonds | 7,285 | 59 | (94 | ) | 7,250 | |||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 43,477 | 257 | (852 | ) | 42,882 | |||||||||||||||||||||||||||||
Total held to maturity securities | 278,080 | 2,810 | (3,254 | ) | 277,636 | |||||||||||||||||||||||||||||
Total | $ | 493,162 | $ | 4,641 | $ | (4,417 | ) | $ | 493,386 | |||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||
Schedule of amortized cost and fair value of securities available for sale and held to maturity by maturity | The amortized cost and fair value of securities at December 31, 2014, 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-14 | ||||||||||||||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||||||||||||
Available for Sale | Held to Maturity | |||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||
Due after one year through five years | $ | 10,083 | $ | 10,132 | $ | — | $ | — | ||||||||||||||||||||||||||
Due after five years through ten years | 23,140 | 22,789 | 46,091 | 45,255 | ||||||||||||||||||||||||||||||
Due after ten years | 108,005 | 107,878 | 156,476 | 157,670 | ||||||||||||||||||||||||||||||
Total | $ | 141,228 | $ | 140,799 | $ | 202,567 | $ | 202,925 | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 2,742 | $ | 2,759 | $ | 381 | $ | 382 | ||||||||||||||||||||||||||
Due after one year through five years | 49,824 | 50,381 | 20,030 | 19,784 | ||||||||||||||||||||||||||||||
Due after five years through ten years | 13,497 | 13,890 | 40,435 | 40,048 | ||||||||||||||||||||||||||||||
Due after ten years | 186 | 206 | 14,667 | 14,497 | ||||||||||||||||||||||||||||||
Total | $ | 66,249 | $ | 67,236 | $ | 75,513 | $ | 74,711 | ||||||||||||||||||||||||||
Gross Realized Gains and Losses on Sales of Securities Available for Sale | Gross realized gains and losses on sales of securities for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Gross gains realized | $ | 801 | $ | 3,978 | $ | 4,068 | ||||||||||||||||||||||||||||
Gross losses realized | (481 | ) | (852 | ) | (1,161 | ) | ||||||||||||||||||||||||||||
Net gain realized | $ | 320 | $ | 3,126 | $ | 2,907 | ||||||||||||||||||||||||||||
Securities with Gross Unrealized Losses in Continuous Loss Position | Information pertaining to securities with gross unrealized losses at December 31, 2014 and 2013 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: | |||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||
Less Than 12 Months | Over 12 Months | |||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 47 | $ | 20,637 | $ | 800 | $ | 56,830 | ||||||||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | — | — | 12 | 677 | ||||||||||||||||||||||||||||||
Corporate bonds | 17 | 4,438 | 3 | 1,497 | ||||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 52 | 9,189 | 104 | 7,396 | ||||||||||||||||||||||||||||||
Mutual funds | — | — | 128 | 5,103 | ||||||||||||||||||||||||||||||
Total available for sale | 116 | 34,264 | 1,047 | 71,503 | ||||||||||||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | 200 | 10,292 | 1,253 | 65,526 | ||||||||||||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | — | — | 607 | 31,951 | ||||||||||||||||||||||||||||||
Corporate bonds | 128 | 5,684 | 120 | 13,918 | ||||||||||||||||||||||||||||||
State and municipal bonds | — | — | 94 | 4,853 | ||||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | — | — | 852 | 33,224 | ||||||||||||||||||||||||||||||
Total held to maturity | 328 | 15,976 | 2,926 | 149,472 | ||||||||||||||||||||||||||||||
Total | $ | 444 | $ | 50,240 | $ | 3,973 | $ | 220,975 | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Less Than 12 Months | Over 12 Months | |||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||
(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 | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||
Less Than 12 Months | Over 12 Months | |||||||||||||||||||||||||||||||||
Number of Securities | Amortized Cost Basis | Gross Unrealized Losses | Depreciation from Amortized Cost Basis (%) | Number of Securities | Amortized Cost Basis | Gross Unrealized Losses | Depreciation from Amortized Cost Basis (%) | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | 13 | $ | 31,176 | $ | 247 | 0.8 | % | 31 | $ | 124,409 | $ | 2,053 | 1.7 | % | ||||||||||||||||||||
U.S. Government guaranteed mortgage-backed securities | — | — | — | — | 5 | 33,247 | 619 | 1.9 | ||||||||||||||||||||||||||
Corporate Bonds | 5 | 10,267 | 145 | 1.4 | 5 | 15,538 | 123 | 0.8 | ||||||||||||||||||||||||||
State and municipal bonds | — | — | — | — | 9 | 4,947 | 94 | 1.9 | ||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 6 | 9,241 | 52 | 0.6 | 9 | 41,576 | 956 | 2.3 | ||||||||||||||||||||||||||
Mutual funds | — | — | — | — | 2 | 5,231 | 128 | 2.4 | ||||||||||||||||||||||||||
Total | $ | 50,684 | $ | 444 | $ | 224,948 | $ | 3,973 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||
Schedule of loans | Loans consisted of the following amounts: | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Commercial real estate | $ | 278,405 | $ | 264,476 | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 237,436 | 198,686 | |||||||||||||||||||||||
Home equity | 40,305 | 35,371 | |||||||||||||||||||||||
Commercial and industrial | 165,728 | 135,555 | |||||||||||||||||||||||
Consumer | 1,542 | 2,572 | |||||||||||||||||||||||
Total loans | 723,416 | 636,660 | |||||||||||||||||||||||
Unearned premiums and deferred loan fees and costs, net | 1,270 | 767 | |||||||||||||||||||||||
Allowance for loan losses | (7,948 | ) | (7,459 | ) | |||||||||||||||||||||
$ | 716,738 | $ | 629,968 | ||||||||||||||||||||||
Analysis of changes in allowance for loan losses by segment | An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||||||||||||||
Commercial Real Estate | Residential Real Estate | Commercial and Industrial | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
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 | |||||||||||||
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 | $ | 3,550 | $ | 1,707 | $ | 2,191 | $ | 13 | $ | (2 | ) | $ | 7,459 | ||||||||||||
Provision | 505 | 376 | 649 | 42 | 3 | 1,575 | |||||||||||||||||||
Charge-offs | (350 | ) | (31 | ) | (787 | ) | (55 | ) | — | (1,223 | ) | ||||||||||||||
Recoveries | — | 1 | 121 | 15 | — | 137 | |||||||||||||||||||
Balance at December 31, 2014 | $ | 3,705 | $ | 2,053 | $ | 2,174 | $ | 15 | $ | 1 | $ | 7,948 | |||||||||||||
Information pertaining to the allowance for loan losses by segment | Further information pertaining to the allowance for loan losses by segment at December 31, 2014 and 2013 follows: | ||||||||||||||||||||||||
Commercial Real Estate | Residential Real Estate | Commercial and Industrial | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amount of allowance for loans individually evaluated and deemed impaired | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Amount of allowance for loans collectively or individually evaluated and not deemed impaired | 3,705 | 2,053 | 2,174 | 15 | 1 | 7,948 | |||||||||||||||||||
Total allowance for loan losses | 3,705 | 2,053 | 2,174 | 15 | 1 | 7,948 | |||||||||||||||||||
Loans individually evaluated and deemed impaired | 3,104 | 291 | 4,436 | — | — | 7,831 | |||||||||||||||||||
Loans collectively or individually evaluated and not deemed impaired | 275,301 | 277,450 | 161,292 | 1,542 | — | 715,585 | |||||||||||||||||||
Total loans | $ | 278,405 | $ | 277,741 | $ | 165,728 | $ | 1,542 | $ | — | $ | 723,416 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amount of allowance for loans individually evaluated and deemed impaired | $ | 82 | $ | — | $ | 15 | $ | — | $ | — | $ | 97 | |||||||||||||
Amount of allowance for loans collectively or individually evaluated and not deemed impaired | 3,467 | 1,707 | 2,177 | 13 | (2 | ) | 7,362 | ||||||||||||||||||
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 | |||||||||||||||||||
Loans collectively or individually 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 | |||||||||||||
Summary of 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, 2014 and 2013: | ||||||||||||||||||||||||
30 – 59 Days Past Due | 60 – 89 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Past Due 90 Days or More and Still Accruing | Loans on Non-Accrual | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Commercial real estate | $ | 3,003 | $ | — | $ | 529 | $ | 3,532 | $ | — | $ | 3,257 | |||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 314 | 61 | 1,158 | 1,533 | — | 1,323 | |||||||||||||||||||
Home equity | 252 | — | 1 | 253 | — | 1 | |||||||||||||||||||
Commercial and industrial | 169 | — | 394 | 563 | — | 4,233 | |||||||||||||||||||
Consumer | 22 | — | 3 | 25 | — | 16 | |||||||||||||||||||
Total | $ | 3,760 | $ | 61 | $ | 2,085 | $ | 5,906 | $ | — | $ | 8,830 | |||||||||||||
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 | |||||||||||||
Summary of impaired loans by class | The following is a summary of impaired loans by class: | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
At December 31, 2014 | 31-Dec-14 | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | $ | 3,104 | $ | 3,662 | $ | — | $ | 2,267 | $ | — | |||||||||||||||
Residential real estate | 291 | 407 | — | 223 | — | ||||||||||||||||||||
Commercial and industrial | 4,436 | 5,181 | — | 2,032 | — | ||||||||||||||||||||
Total | 7,831 | 9,250 | — | 4,522 | — | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | — | — | — | 8,382 | 576 | ||||||||||||||||||||
Commercial and industrial | — | — | — | 600 | 41 | ||||||||||||||||||||
Total | — | — | — | 8,982 | 617 | ||||||||||||||||||||
Total impaired loans | $ | 7,831 | $ | 9,250 | $ | — | $ | 13,504 | $ | 617 | |||||||||||||||
Year Ended | |||||||||||||||||||||||||
At December 31, 2013 | 31-Dec-13 | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income 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 | |||||||||||||||
Schedule of troubled debt restructurings | The new loans were granted under market conditions and are performing according to the terms of the loan agreements. | ||||||||||||||||||||||||
Year Ended, | Year Ended | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-12 | ||||||||||||||||||||||||
Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||
Commercial Real Estate | 1 | $ | 228 | $ | 228 | 5 | $ | 14,785 | $ | 14,785 | |||||||||||||||
Commercial and Industrial | 3 | 203 | 203 | 6 | 1,344 | 1,344 | |||||||||||||||||||
Total | 4 | $ | 431 | $ | 431 | 11 | $ | 16,129 | $ | 16,129 | |||||||||||||||
No TDRs defaulted (defined as 30 days or more past due) within 12 months of restructuring during the years ended December 31, 2014 and 2013. The following is a summary of TDRs that have subsequently defaulted within one year of modification during 2012: | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Number of Contracts | Recorded 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, 2014 and December 31, 2013: | ||||||||||||||||||||||||
Commercial Real Estate | Residential | Home Equity | Commercial and Industrial | Consumer | Total | ||||||||||||||||||||
1-4 family | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Loans rated 1 – 3 | $ | 234,010 | $ | 236,113 | $ | 40,282 | $ | 139,109 | $ | 1,526 | $ | 651,040 | |||||||||||||
Loans rated 4 | 33,305 | — | — | 16,841 | — | 50,146 | |||||||||||||||||||
Loans rated 5 | 7,833 | — | 22 | 5,545 | — | 13,400 | |||||||||||||||||||
Loans rated 6 | 3,257 | 1,323 | 1 | 4,233 | 16 | 8,830 | |||||||||||||||||||
$ | 278,405 | $ | 237,436 | $ | 40,305 | $ | 165,728 | $ | 1,542 | $ | 723,416 | ||||||||||||||
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 |
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of premises and equipment | Premises and equipment are summarized as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Land | $ | 1,826 | $ | 1,826 | |||||
Buildings | 13,293 | 13,104 | |||||||
Leasehold improvements | 2,156 | 1,622 | |||||||
Furniture and equipment | 11,951 | 10,777 | |||||||
Total | 29,226 | 27,329 | |||||||
Accumulated depreciation and amortization | (17,523 | ) | (16,334 | ) | |||||
Premises and equipment, net | $ | 11,703 | $ | 10,995 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||
Deposit accounts by type and weighted average rates | Deposit accounts by type and weighted average rates are summarized as follows: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Demand: | |||||||||||||||||
Interest-bearing | $ | 37,983 | 0.24 | % | $ | 44,924 | 0.27 | % | |||||||||
Noninterest-bearing deposits | 136,186 | — | 145,040 | — | |||||||||||||
Savings: | |||||||||||||||||
Regular | 74,970 | 0.1 | 81,244 | 0.1 | |||||||||||||
Money market | 227,330 | 0.37 | 204,469 | 0.38 | |||||||||||||
Time certificates of deposit | 357,749 | 1.19 | 341,435 | 1.28 | |||||||||||||
Total deposits | $ | 834,218 | 0.63 | % | $ | 817,112 | 0.66 | % | |||||||||
Scheduled maturities of time certificates of deposit | At December 31, 2014, the scheduled maturities of time certificates of deposit are as follows: | ||||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
2015 | $ | 198,972 | |||||||||||||||
2016 | 75,035 | ||||||||||||||||
2017 | 35,179 | ||||||||||||||||
2018 | 17,608 | ||||||||||||||||
2019 | 30,955 | ||||||||||||||||
$ | 357,749 | ||||||||||||||||
Schedule of interest expense on deposits | Interest expense on deposits for the years ended December 31, 2014, 2013 and 2012 is summarized as follows: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Regular | $ | 80 | $ | 119 | $ | 186 | |||||||||||
Money market | 846 | 762 | 807 | ||||||||||||||
Time | 4,152 | 4,509 | 4,883 | ||||||||||||||
Interest-bearing demand | 99 | 135 | 266 | ||||||||||||||
$ | 5,177 | $ | 5,525 | $ | 6,142 |
SHORTTERM_BORROWINGS_Tables
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of customer repurchase agreements | The following table summarizes information regarding repurchase agreements: | ||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Balance outstanding at end of year | $ | 31,164 | $ | 28,197 | |||||
Maximum amount outstanding during year | 44,435 | 40,860 | |||||||
Average amount outstanding during year | 35,657 | 31,754 | |||||||
Weighted average interest rate at end of year | 0.19 | % | 0.19 | % | |||||
Amortized cost of collateral pledged at end of year (1) | 63,660 | 53,714 | |||||||
Fair value of collateral pledged at end of year (1) | 65,992 | 54,885 | |||||||
(1) Includes collateral pledged toward $5.8 million in long-term customer repurchase agreements. |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||
Schedule of advances collateralized by lien | The following advances are collateralized by a blanket lien on our residential real estate loans and certain mortgage-backed securities. | ||||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Fixed-rate advances maturing: | |||||||||||||||||||
2014 | $ | — | $ | 21,542 | — | % | 1.2 | % | |||||||||||
2015 | 30,573 | 25,395 | 1.4 | 1.6 | |||||||||||||||
2016 | 53,757 | 53,574 | 2.2 | 2.2 | |||||||||||||||
2017 | 47,500 | 17,500 | 2.4 | 2.6 | |||||||||||||||
2018 | 10,000 | 10,000 | 2.2 | 2.2 | |||||||||||||||
2019 | 5,000 | 5,000 | 3.2 | 3.2 | |||||||||||||||
2020 | 7,000 | 7,000 | 1.8 | 1.8 | |||||||||||||||
153,830 | 140,011 | 2.1 | % | 2 | % | ||||||||||||||
Variable-rate advances maturing: | |||||||||||||||||||
2015 | 9,877 | 9,736 | 0.9 | 0.9 | |||||||||||||||
2016 | 10,000 | 10,000 | 1.4 | 1.4 | |||||||||||||||
2017 | — | 30,000 | — | (0.2 | ) | ||||||||||||||
2018* | 32,000 | 32,000 | 0.4 | 0.4 | |||||||||||||||
2019* | 11,000 | 11,000 | (0.1 | ) | (0.1 | ) | |||||||||||||
62,877 | 92,736 | 0.5 | 0.3 | ||||||||||||||||
$ | 216,707 | $ | 232,747 | 1.6 | % | 1.3 | % | ||||||||||||
Total advances | |||||||||||||||||||
*At December 31, 2014, the following amounts are callable at the option of FHLBB: $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 2.3% for the 2015 call. At December 31, 2013 there were $30.0 million in FHLBB advances that were callable. | |||||||||||||||||||
Schedule of 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 $12.6 million and $12.4 million as of December 31, 2014 and 2013, respectively. We may be required to provide additional collateral based on the fair value of the underlying securities. | ||||||||||||||||||
Amount | Weighted Average Rate | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Fixed-rates maturing: | |||||||||||||||||||
2018* | $ | 10,000 | * | $ | 10,000 | 2.7 | % | 2.7 | % | ||||||||||
*Callable in 2015 |
STOCK_PLANS_AND_EMPLOYEE_STOCK1
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Schedule of the status of unvested restricted stock awards | A summary of the status of unvested restricted stock awards at December 31, 2014 is presented below: | ||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
Balance at December 31, 2013 | 25,720 | $ | 7.93 | ||||||||||||||
Shares vested | (12,720 | ) | 7.79 | ||||||||||||||
Balance at December 31, 2014 | 13,000 | $ | 8.07 | ||||||||||||||
Schedule of the remaining principal balance payable | At December 31, 2014, the remaining principal balances are payable as follows: | ||||||||||||||||
Year Ending | |||||||||||||||||
December 31, | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
2015 | $ | 447 | |||||||||||||||
2016 | 447 | ||||||||||||||||
2017 | 447 | ||||||||||||||||
2018 | 447 | ||||||||||||||||
2019 | 447 | ||||||||||||||||
Thereafter | 6,587 | ||||||||||||||||
$ | 8,822 | ||||||||||||||||
Schedule of shares held by ESOP | Shares held by the ESOP include the following at December 31, 2014 and 2013: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Allocated | 739,506 | 662,013 | |||||||||||||||
Committed to be allocated | 79,345 | 81,803 | |||||||||||||||
Unallocated | 1,040,751 | 1,120,096 | |||||||||||||||
1,859,602 | 1,863,912 |
RETIREMENT_PLANS_AND_EMPLOYEE_1
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Schedule of information for Plan | The following table provides information for the Plan at or for the years ended December 31: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at beginning of year | $ | 19,039 | $ | 18,752 | $ | 18,326 | |||||||||||
Service cost | 1,000 | 1,170 | 1,094 | ||||||||||||||
Interest | 824 | 763 | 800 | ||||||||||||||
Actuarial loss (gain) | 3,085 | (1,540 | ) | 27 | |||||||||||||
Benefits paid | (314 | ) | (106 | ) | (1,495 | ) | |||||||||||
Benefit obligation at end of year | 23,634 | 19,039 | 18,752 | ||||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 13,811 | 12,200 | 11,377 | ||||||||||||||
Actual return on plan assets | 1,725 | 992 | 818 | ||||||||||||||
Employer contribution | 725 | 725 | 1,500 | ||||||||||||||
Benefits paid | (314 | ) | (106 | ) | (1,495 | ) | |||||||||||
Fair value of plan assets at end of year | 15,947 | 13,811 | 12,200 | ||||||||||||||
Funded status and accrued benefit at end of year | $ | (7,687 | ) | $ | (5,228 | ) | $ | (6,552 | ) | ||||||||
Accumulated benefit obligation at end of year | $ | 16,423 | $ | 13,192 | $ | 13,297 | |||||||||||
Actuarial assumptions used in determining pension benefit obligation | The following actuarial assumptions were used in determining the pension benefit obligation: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discount rate | 4 | % | 5 | % | |||||||||||||
Rate of compensation increase | 4 | 4 | |||||||||||||||
Schedule of net pension benefit costs | Net pension cost includes the following components for the years ended December 31: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 1,000 | $ | 1,170 | $ | 1,094 | |||||||||||
Interest cost | 824 | 763 | 800 | ||||||||||||||
Expected return on assets | (959 | ) | (948 | ) | (867 | ) | |||||||||||
Amortization of transition asset | (10 | ) | (12 | ) | (12 | ) | |||||||||||
Amortization of actuarial loss | — | 117 | 175 | ||||||||||||||
Net periodic pension cost | $ | 855 | $ | 1,090 | $ | 1,190 | |||||||||||
Actuarial Assumptions used in Determining Service Costs | The following actuarial assumptions were used in determining the service costs for the years ended December 31: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 5 | % | 4 | % | 4.5 | % | |||||||||||
Expected return on plan assets | 7.5 | 8 | 8 | ||||||||||||||
Rate of compensation increase | 4 | 4 | 4 | ||||||||||||||
Schedule of 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-14 | |||||||||||||||||
Plan Assets | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
(In thousands) | |||||||||||||||||
Large U.S. equity | $ | — | $ | 3,845 | $ | — | $ | 3,845 | |||||||||
Small/mid U.S. equity | — | 924 | — | 924 | |||||||||||||
International equity | — | 1,385 | — | 1,385 | |||||||||||||
Balanced/asset allocation | — | 744 | — | 744 | |||||||||||||
Short-term fixed income | — | 1,582 | — | 1,582 | |||||||||||||
Fixed income | — | 7,467 | — | 7,467 | |||||||||||||
$ | — | $ | 15,947 | $ | — | $ | 15,947 | ||||||||||
31-Dec-13 | |||||||||||||||||
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 | ||||||||||
Schedule of 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) | |||||||||||||||||
2015 | $ | 757 | |||||||||||||||
2016 | 1,998 | ||||||||||||||||
2017 | 426 | ||||||||||||||||
2018 | 1,012 | ||||||||||||||||
2019 | 791 | ||||||||||||||||
In aggregate for 2020 – 2024 | 6,509 | ||||||||||||||||
DERIVATIVES_AND_HEDGING_ACTIVI1
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Schedule of fair value of derivative financial instruments designated as hedging instruments | 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, 2014. | ||||||||||||||||||||
31-Dec-14 | Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||
Location | Location | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | Other Assets | $ | 9 | Other Liabilities | $ | 5,748 | |||||||||||||||
Total derivatives designated as hedging instruments | $ | 9 | $ | 5,748 | |||||||||||||||||
31-Dec-13 | 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 information about cash flow hedges | The following table presents information about our cash flow hedges at December 31, 2014 and 2013: | ||||||||||||||||||||
December 31, 2014 | Notional | Weighted Average | Weighted Average Rate | Estimated Fair | |||||||||||||||||
Amount | Maturity | Receive | Pay | Value | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||||
Interest rate swaps on FHLBB borrowings | $ | 40,000 | 3.3 | 0.23 | % | 1.52 | % | $ | (268 | ) | |||||||||||
Forward starting interest rate swaps on FHLBB borrowings | 115,000 | 6.7 | — | 3.11 | % | (5,471 | ) | ||||||||||||||
Total cash flow hedges | $ | 155,000 | 5.8 | $ | (5,739 | ) | |||||||||||||||
31-Dec-13 | Notional | Weighted 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 | ||||||||||||||||
Schedule of the pre-tax net gains (losses) of cash flow hedges | The table below presents the pre-tax net (loss) gain of our cash flow hedges for the period indicated. | ||||||||||||||||||||
Amount of (Loss) Gain Recognized in | |||||||||||||||||||||
OCI on Derivative (Effective Portion) | |||||||||||||||||||||
Years Ended December 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | $ | (7,684 | ) | $ | 1,755 | ||||||||||||||||
REGULATORY_CAPITAL_Tables
REGULATORY CAPITAL (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
Schedule of regulatory capital | Actual | Minimum for Capital Adequacy Purposes | Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | $ | 158,016 | 18.68 | % | $ | 67,675 | 8 | % | N/A | — | |||||||||||||||
Bank | 150,392 | 17.81 | 67,549 | 8 | $ | 84,436 | 10 | % | |||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Consolidated | 150,018 | 17.73 | 33,838 | 4 | N/A | — | |||||||||||||||||||
Bank | 142,383 | 16.86 | 33,775 | 4 | 50,662 | 6 | |||||||||||||||||||
Tier 1 Capital (to Adjusted Total Assets): | |||||||||||||||||||||||||
Consolidated | 150,018 | 11.3 | 53,103 | 4 | N/A | — | |||||||||||||||||||
Bank | 142,383 | 10.74 | 53,035 | 4 | 66,293 | 5 | |||||||||||||||||||
Tangible Equity (to Tangible Assets): | |||||||||||||||||||||||||
Consolidated | N/A | — | N/A | — | N/A | — | |||||||||||||||||||
Bank | 142,383 | 10.74 | 19,888 | 1.5 | N/A | — | |||||||||||||||||||
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 | — | |||||||||||||||||||
Reconciliation of GAAP 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, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Consolidated GAAP capital | $ | 142,543 | $ | 154,144 | |||||||||||||||||||||
Net unrealized losses on available-for-sale securities, net of tax | 728 | 2,706 | |||||||||||||||||||||||
Unrealized loss on defined benefit pension plan, net of tax | 2,959 | 1,427 | |||||||||||||||||||||||
Accumulated net loss (gain) on cash flow hedges, net of tax | 3,788 | (1,158 | ) | ||||||||||||||||||||||
Tier 1 capital | 150,018 | 157,119 | |||||||||||||||||||||||
Unrealized gains on certain available-for-sale equity securities | 50 | 27 | |||||||||||||||||||||||
Allowance for loan losses | 7,948 | 7,459 | |||||||||||||||||||||||
Total regulatory capital | $ | 158,016 | $ | 164,605 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of income taxes | Income taxes consist of the following: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current tax provision: | |||||||||||||
Federal | $ | 1,854 | $ | 795 | $ | 1,856 | |||||||
State | 221 | 96 | 215 | ||||||||||
Total | 2,075 | 891 | 2,071 | ||||||||||
Deferred tax (benefit) provision: | |||||||||||||
Federal | (188 | ) | 980 | 184 | |||||||||
State | (5 | ) | — | 1 | |||||||||
Total | (193 | ) | 980 | 185 | |||||||||
Total | $ | 1,882 | $ | 1,871 | $ | 2,256 | |||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal income tax rate | 34 | % | 34 | % | 34 | % | |||||||
Increase (decrease) resulting from: | |||||||||||||
State taxes, net of federal tax benefit | 1.8 | 0.7 | 1.7 | ||||||||||
Tax exempt income | (4.1 | ) | (4.7 | ) | (6.4 | ) | |||||||
Bank-owned life insurance (BOLI) | (6.4 | ) | (6.1 | ) | (5.7 | ) | |||||||
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 | (1.9 | ) | 3.2 | 1.3 | |||||||||
Effective tax rate | 23.4 | % | 21.7 | % | 26.5 | % | |||||||
Schedule of deferred taxes | The tax effects of each item that gives rise to deferred taxes are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 2,702 | $ | 2,536 | |||||||||
Employee benefit and share-based compensation plans | 2,133 | 2,071 | |||||||||||
Net unrealized loss on derivative and hedging activity | 1,951 | — | |||||||||||
Defined benefit plan | 1,525 | 735 | |||||||||||
Net unamortized loss on securities transferred from available for sale to held to maturity | 617 | 599 | |||||||||||
Net unrealized loss on securities available for sale | — | 837 | |||||||||||
Other-than-temporary impairment write-down | 110 | 110 | |||||||||||
Other | 312 | 334 | |||||||||||
9,350 | 7,222 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred loan fees | (267 | ) | (117 | ) | |||||||||
Net unrealized gain on securities available for sale | (226 | ) | — | ||||||||||
Net unrealized gain on derivative and hedging activity | — | (597 | ) | ||||||||||
Other | (38 | ) | (174 | ) | |||||||||
(531 | ) | (888 | ) | ||||||||||
Net deferred tax asset | $ | 8,819 | $ | 6,334 |
TRANSACTIONS_WITH_DIRECTORS_AN1
TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Schedule of activity for loans - directors and executive officers | Following is a summary of activity for such loans: | ||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance at beginning of year | $ | 6,225 | $ | 16,264 | |||||
Principal distributions | 504 | 2,713 | |||||||
Repayments of principal | (3,897 | ) | (2,635 | ) | |||||
Change in related party status | 49 | (10,117 | ) | ||||||
Balance at end of year | $ | 2,881 | $ | 6,225 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
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, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Commitments to extend credit: | |||||||||
Unused lines of credit | $ | 110,411 | $ | 99,899 | |||||
Loan commitments | 49,897 | 10,260 | |||||||
Existing construction loan agreements | 11,419 | 14,667 | |||||||
Standby letters of credit | 3,033 | 1,728 | |||||||
Schedule of aggregate future minimum rental payments | Aggregate future minimum rental payments under the terms of non-cancelable operating leases at December 31, 2014, are as follows: | ||||||||
Year Ending December 31, | Amount | ||||||||
(In thousands) | |||||||||
2015 | $ | 653 | |||||||
2016 | 521 | ||||||||
2017 | 406 | ||||||||
2018 | 377 | ||||||||
2019 | 355 | ||||||||
Thereafter | 3,859 | ||||||||
$ | 6,171 |
FAIR_VALUE_OF_ASSETS_AND_LIABI1
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | (In thousands) | ||||||||||||||||||||
Government-sponsored residential mortgage-backed securities | $ | — | $ | 139,213 | $ | — | $ | 139,213 | |||||||||||||
U.S. government guaranteed residential mortgage-backed securities | — | 1,586 | — | 1,586 | |||||||||||||||||
Corporate bonds | — | 26,223 | — | 26,223 | |||||||||||||||||
State and municipal bonds | — | 17,034 | — | 17,034 | |||||||||||||||||
Government-sponsored enterprise obligations | — | 23,979 | — | 23,979 | |||||||||||||||||
Mutual funds | 6,176 | — | — | 6,176 | |||||||||||||||||
Common and preferred stock | 1,539 | — | — | 1,539 | |||||||||||||||||
Total securities available for sale | 7,715 | 208,035 | — | 215,750 | |||||||||||||||||
Interest rate swaps | — | 9 | — | 9 | |||||||||||||||||
Total assets | $ | 7,715 | $ | 208,044 | $ | — | $ | 215,759 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | $ | — | $ | 5,748 | $ | — | $ | 5,748 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | (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 | |||||||||||||
Schedule of assets measured at fair value on non-recurring basis | The following table summarizes the fair value hierarchy used to determine the carrying values of the related assets as of December 31, 2014 and 2013. | ||||||||||||||||||||
At | Year Ended | ||||||||||||||||||||
31-Dec-14 | 31-Dec-14 | ||||||||||||||||||||
Total | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Losses | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 5,149 | $ | (1,036 | ) | ||||||||||||
Total assets | $ | — | $ | — | $ | 5,149 | $ | (1,036 | ) | ||||||||||||
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 | ) | ||||||||||||
Summary of fair values of financial instruments | The estimated fair values of our financial instruments are as follows: | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 18,785 | $ | 18,785 | $ | — | $ | — | $ | 18,785 | |||||||||||
Securities available for sale | 215,750 | 7,715 | 208,035 | — | 215,750 | ||||||||||||||||
Securities held to maturity | 278,080 | — | 277,636 | — | 277,636 | ||||||||||||||||
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | — | — | 14,934 | 14,934 | ||||||||||||||||
Loans - net | 716,738 | — | — | 721,818 | 721,818 | ||||||||||||||||
Accrued interest receivable | 4,213 | — | — | 4,213 | 4,213 | ||||||||||||||||
Derivative assets | 9 | — | 9 | — | 9 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | 834,218 | — | — | 834,838 | 834,838 | ||||||||||||||||
Short-term borrowings | 93,997 | — | 93,997 | — | 93,997 | ||||||||||||||||
Long-term debt | 232,479 | — | 236,457 | — | 236,457 | ||||||||||||||||
Accrued interest payable | 501 | — | — | 501 | 501 | ||||||||||||||||
Derivative liabilities | 5,748 | — | 5,748 | — | 5,748 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying Value | Fair 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 |
CONDENSED_PARENT_COMPANY_FINAN1
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Balance Sheets of Parent Company | The condensed balance sheets of the parent company are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
ASSETS: | |||||||||||||
Cash equivalents | $ | 178 | $ | 158 | |||||||||
Securities available for sale | 1,539 | 1,599 | |||||||||||
Investment in subsidiaries | 134,836 | 146,951 | |||||||||||
ESOP loan receivable | 8,822 | 9,269 | |||||||||||
Other assets | 6,184 | 5,912 | |||||||||||
TOTAL ASSETS | 151,559 | 163,889 | |||||||||||
LIABILITIES: | |||||||||||||
ESOP loan payable | 8,822 | 9,269 | |||||||||||
Other liabilities | 194 | 476 | |||||||||||
EQUITY | 142,543 | 154,144 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 151,559 | $ | 163,889 | |||||||||
Condensed Statements of Income for Parent Company | The condensed statements of income for the parent company are as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
INCOME: | |||||||||||||
Dividends from subsidiaries | $ | 14,712 | $ | 26,964 | $ | 42,372 | |||||||
Interest income from securities | 31 | 16 | 68 | ||||||||||
ESOP loan interest income | 741 | 777 | 813 | ||||||||||
Gain on sale of securities, net | — | 3 | — | ||||||||||
Total income | 15,484 | 27,760 | 43,253 | ||||||||||
OPERATING EXPENSE: | |||||||||||||
Salaries and employee benefits | 697 | 879 | 2,262 | ||||||||||
ESOP interest | 741 | 777 | 813 | ||||||||||
Other | 503 | 586 | 511 | ||||||||||
Total operating expense | 1,941 | 2,242 | 3,586 | ||||||||||
INCOME BEFORE EQUITY IN UNDISTRIBUTED | |||||||||||||
INCOME OF SUBSIDIARIES AND INCOME TAXES | 13,543 | 25,518 | 39,667 | ||||||||||
EQUITY IN UNDISTRIBUTED LOSS OF | (7,655 | ) | (19,073 | ) | (34,130 | ) | |||||||
SUBSIDIARIES | |||||||||||||
NET INCOME BEFORE TAXES | 5,888 | 6,445 | 5,537 | ||||||||||
INCOME TAX BENEFIT | (274 | ) | (311 | ) | (717 | ) | |||||||
NET INCOME | $ | 6,162 | $ | 6,756 | $ | 6,254 | |||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
OPERATING ACTIVITIES: | |||||||||||||
Net income | $ | 6,162 | $ | 6,756 | $ | 6,254 | |||||||
Dividends in excess of earnings of subsidiaries | 7,655 | 19,073 | 34,130 | ||||||||||
Net realized securities gains | — | (3 | ) | — | |||||||||
Change in other liabilities | (409 | ) | 198 | 36 | |||||||||
Change in other assets | 174 | (487 | ) | (271 | ) | ||||||||
Other, net | 667 | 1,422 | 2,089 | ||||||||||
Net cash provided by operating activities | 14,249 | 26,959 | 42,238 | ||||||||||
INVESTING ACTIVITIES: | |||||||||||||
Purchase of securities | (235 | ) | (349 | ) | (1,533 | ) | |||||||
Proceeds from principal collections of securities | — | 1,307 | 575 | ||||||||||
Sales of securities | 235 | 352 | 566 | ||||||||||
Net cash provided by (used in) investing activities | — | 1,310 | (392 | ) | |||||||||
FINANCING ACTIVITIES: | |||||||||||||
Cash dividends paid | (3,832 | ) | (5,872 | ) | (10,721 | ) | |||||||
Common stock repurchased | (10,518 | ) | (20,093 | ) | (32,083 | ) | |||||||
Tender offer to purchase outstanding options | 121 | (2,151 | ) | — | |||||||||
Excess tax expense in connection with tender offer completion | — | (566 | ) | ||||||||||
Excess tax (shortfall) benefit from share-based compensation | — | (1 | ) | 144 | |||||||||
Issuance of common stock to ESOP | — | — | — | ||||||||||
Issuance of common stock in connection with stock | |||||||||||||
option exercises | — | — | 1,041 | ||||||||||
Repayment of long-term debt | — | — | (446 | ) | |||||||||
Net cash used in financing activities | (14,229 | ) | (28,683 | ) | (42,065 | ) | |||||||
NET DECREASE IN CASH AND | |||||||||||||
CASH EQUIVALENTS | 20 | (414 | ) | (219 | ) | ||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||
Beginning of year | 158 | 572 | 791 | ||||||||||
End of year | $ | 178 | $ | 158 | $ | 572 | |||||||
Supplemental cashflow information: | |||||||||||||
Net cash due to (from) broker for common stock repurchased | — | 299 | (352 | ) | |||||||||
SUMMARY_OF_QUARTERLY_FINANCIAL1
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of 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. | ||||||||||||||||
2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Interest and dividend income | $ | 10,034 | $ | 10,143 | $ | 10,343 | $ | 10,471 | |||||||||
Interest expense | 2,379 | 2,442 | 2,509 | 2,593 | |||||||||||||
Net interest and dividend income | 7,655 | 7,701 | 7,834 | 7,878 | |||||||||||||
Provision for loan losses | 100 | 450 | 750 | 275 | |||||||||||||
Other noninterest income | 1,049 | 1,018 | 1,039 | 1,033 | |||||||||||||
Gain on sales of securities, net | 29 | 21 | 226 | 44 | |||||||||||||
Noninterest expense | 6,534 | 6,531 | 6,348 | 6,496 | |||||||||||||
Income before income taxes | 2,099 | 1,759 | 2,001 | 2,184 | |||||||||||||
Income tax provision | 451 | 417 | 491 | 523 | |||||||||||||
Net income | $ | 1,648 | $ | 1,342 | $ | 1,510 | $ | 1,661 | |||||||||
Basic earnings per share | $ | 0.09 | $ | 0.07 | $ | 0.08 | $ | 0.09 | |||||||||
Diluted earnings per share | $ | 0.09 | $ | 0.07 | $ | 0.08 | $ | 0.09 | |||||||||
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 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reserve for unfunded commitments | $60 | $60 | |
Accumulated other comprehensive income, actuarial loss | -117 | -175 | |
Pension Plan [Member] | |||
Accumulated other comprehensive income, actuarial loss | -118 | ||
Residential Mortgage [Member] | Minimum [Member] | |||
Requirement for private mortgage insurance, loan-to-value ratio | 80.00% | ||
Bankers Bank Northeast [Member] | |||
Required cash reserve | $690 | $975 | |
Massachusetts and Granby and Enfield, Connecticut [Member] | |||
Number of banking offices in which bank operates | 13 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment estimated useful lives | 39 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment estimated useful lives | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment estimated useful lives | 20 years |
Equipment And Furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment estimated useful lives | 3 years |
Equipment And Furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment estimated useful lives | 7 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accounting Policies [Abstract] | ||||||||||||||
Net income applicable to common stock | $1,661 | $1,510 | $1,342 | $1,648 | $1,809 | $1,581 | $1,584 | $1,782 | $6,162 | $6,756 | $6,254 | |||
Average number of common shares issued | 19,274 | 21,254 | 25,763 | |||||||||||
Less: Average unallocated ESOP Shares | -1,090 | -1,171 | -1,254 | |||||||||||
Less: Average ungranted equity incentive plan shares | -4 | -7 | ||||||||||||
Average number of common shares outstanding used to calculate basic earnings per common share | 18,183,739 | 20,079,251 | 24,501,951 | |||||||||||
Effect of dilutive stock options | 18 | |||||||||||||
Average number of common shares outstanding used to calculate basic and diluted earnings per common share | 18,184 | 20,079 | 24,520 | |||||||||||
Basic earnings per share (in dollars per share) | $0.09 | $0.08 | $0.07 | $0.09 | $0.09 | $0.08 | $0.08 | $0.08 | $0.34 | $0.34 | $0.26 | |||
Diluted earnings per share (in dollars per share) | $0.09 | $0.08 | $0.07 | $0.09 | $0.09 | $0.08 | $0.08 | $0.08 | $0.34 | $0.34 | $0.26 | |||
Antidilutive shares | [1] | 833 | [1] | 1,666 | [1] | |||||||||
[1] | Options 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 the Company's common stock. At December 31, 2014, there were no stock options outstanding. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax | ($7,475) | ($2,975) | $10,695 |
Accumulated Net Unrealized Gains (Losses) on Securities AFS [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss) before tax | 668 | -2,410 | |
Tax effect | -226 | 837 | |
Accumulated other comprehensive income (loss), net of tax | 442 | -1,573 | |
Accumulated Net Unamortized Losses on Securities Transferred from AFS to HTM [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss) before tax | -1,787 | -1,732 | |
Tax effect | 617 | 599 | |
Accumulated other comprehensive income (loss), net of tax | -1,170 | -1,133 | |
Accumulated Fair Value of Derivatives Used for Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss) before tax | -5,739 | 1,755 | |
Tax effect | 1,951 | -597 | |
Accumulated other comprehensive income (loss), net of tax | -3,788 | 1,158 | |
Accumulated Unrecognized Transition Asset Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss) before tax | 10 | ||
Accumulated Unrecognized Deferred Loss Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss) before tax | -4,484 | -2,172 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss) before tax | -4,484 | -2,162 | |
Tax effect | 1,525 | 735 | |
Accumulated other comprehensive income (loss), net of tax | ($2,959) | ($1,427) | ($2,558) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | ($2,975) | $10,695 | |
Current-period other comprehensive income (loss) | -4,500 | -13,670 | 2,979 |
Ending Balance | -7,475 | -2,975 | 10,695 |
Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -2,706 | 13,253 | |
Current-period other comprehensive income (loss) | 1,978 | -15,959 | |
Ending Balance | -728 | -2,706 | |
Accumulated Fair Value of Derivatives Used for Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 1,158 | ||
Current-period other comprehensive income (loss) | -4,946 | 1,158 | |
Ending Balance | -3,788 | 1,158 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -1,427 | -2,558 | |
Current-period other comprehensive income (loss) | -1,532 | 1,131 | |
Ending Balance | ($2,959) | ($1,427) |
SECURITIES_Details_Narrative
SECURITIES (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Provision of tax applicable to net realized gains and losses on sale of securities | $109 | $1,100 | $1,000 |
SECURITIES_Details
SECURITIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Available-For-Sale Securities | ||
Amortized Cost | $215,082 | $245,614 |
Gross Unrealized Gains | 1,831 | 2,399 |
Gross Unrealized Losses | -1,163 | -4,809 |
Fair Value | 215,750 | 243,204 |
Held-to-maturity securities | ||
Amortized Cost | 278,080 | 295,013 |
Gross Unrealized Gains | 2,810 | 35 |
Gross Unrealized Losses | -3,254 | -12,493 |
Fair Value | 277,636 | 282,555 |
Total | ||
Amortized Cost | 493,162 | 540,627 |
Gross Unrealized Gains | 4,641 | 2,434 |
Gross Unrealized Losses | -4,417 | -17,302 |
Fair Value | 493,386 | 525,759 |
Government-sponsored Mortgage-backed Securities [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 139,637 | 135,981 |
Gross Unrealized Gains | 423 | 419 |
Gross Unrealized Losses | -847 | -4,028 |
Fair Value | 139,213 | 132,372 |
Held-to-maturity securities | ||
Amortized Cost | 164,001 | 176,986 |
Gross Unrealized Gains | 2,384 | |
Gross Unrealized Losses | -1,453 | -6,819 |
Fair Value | 164,932 | 170,167 |
US Government Guaranteed Mortgage Backed Securities [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 1,591 | 46,225 |
Gross Unrealized Gains | 7 | 240 |
Gross Unrealized Losses | -12 | -137 |
Fair Value | 1,586 | 46,328 |
Held-to-maturity securities | ||
Amortized Cost | 38,566 | 39,705 |
Gross Unrealized Gains | 34 | |
Gross Unrealized Losses | -607 | -1,391 |
Fair Value | 37,993 | 38,314 |
Corporate Bonds [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 25,711 | 26,716 |
Gross Unrealized Gains | 532 | 766 |
Gross Unrealized Losses | -20 | -93 |
Fair Value | 26,223 | 27,389 |
Held-to-maturity securities | ||
Amortized Cost | 24,751 | 27,566 |
Gross Unrealized Gains | 76 | 30 |
Gross Unrealized Losses | -248 | -567 |
Fair Value | 24,579 | 27,029 |
States and Municipal Bonds [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 16,472 | 18,240 |
Gross Unrealized Gains | 562 | 659 |
Gross Unrealized Losses | -2 | |
Fair Value | 17,034 | 18,897 |
Held-to-maturity securities | ||
Amortized Cost | 7,285 | 7,351 |
Gross Unrealized Gains | 59 | 5 |
Gross Unrealized Losses | -94 | -345 |
Fair Value | 7,250 | 7,011 |
Government-Sponsored Enterprise Obligations [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 24,066 | 10,992 |
Gross Unrealized Gains | 69 | 18 |
Gross Unrealized Losses | -156 | -310 |
Fair Value | 23,979 | 10,700 |
Held-to-maturity securities | ||
Amortized Cost | 43,477 | 43,405 |
Gross Unrealized Gains | 257 | |
Gross Unrealized Losses | -852 | -3,371 |
Fair Value | 42,882 | 40,034 |
Mutual Funds [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 6,296 | 6,150 |
Gross Unrealized Gains | 8 | 8 |
Gross Unrealized Losses | -128 | -239 |
Fair Value | 6,176 | 5,919 |
Equity Securities [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 1,309 | 1,310 |
Gross Unrealized Gains | 230 | 289 |
Gross Unrealized Losses | ||
Fair Value | $1,539 | $1,599 |
SECURITIES_Details_2
SECURITIES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Total | $215,082 | $245,614 |
Held to Maturity Securities, Amortized Cost, Total | 278,080 | 295,013 |
Held to Maturity Securities, Fair Value, Total | 277,636 | 282,555 |
Mortgage Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Due after one year through five years | 10,083 | |
Available for Sale Securities, Amortized Cost, Due after five years through ten years | 23,140 | |
Available for Sale Securities, Amortized Cost, Due after ten years | 108,005 | |
Available for Sale Securities, Amortized Cost, Total | 141,228 | |
Available for Sale Securities, Fair Value, Due after one year through five years | 10,132 | |
Available for Sale Securities, Fair Value, Due after five years through ten years | 22,789 | |
Available for Sale Securities, Fair Value, Due after ten years | 107,878 | |
Available for Sale Securities, Fair Value, Total | 140,799 | |
Held to Maturity Securities, Amortized Cost, Due after one year through five years | ||
Held to Maturity Securities, Amortized Cost, Due after five years through ten years | 46,091 | |
Held to Maturity Securities, Amortized Cost, Due after ten years | 156,476 | |
Held to Maturity Securities, Amortized Cost, Total | 202,567 | |
Held to Maturity Securities, Fair Value, Due after one year through five years | ||
Held to Maturity Securities, Fair Value, Due after five years through ten years | 45,255 | |
Held to Maturity Securities, Fair Value, Due after ten years | 157,670 | |
Held to Maturity Securities, Fair Value, Total | 202,925 | |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Due in one year or less | 2,742 | |
Available for Sale Securities, Amortized Cost, Due after one year through five years | 49,824 | |
Available for Sale Securities, Amortized Cost, Due after five years through ten years | 13,497 | |
Available for Sale Securities, Amortized Cost, Due after ten years | 186 | |
Available for Sale Securities, Amortized Cost, Total | 66,249 | |
Available for Sale Securities, Fair Value, Due in one year or less | 2,759 | |
Available for Sale Securities, Fair Value, Due after one year through five years | 50,381 | |
Available for Sale Securities, Fair Value, Due after five years through ten years | 13,890 | |
Available for Sale Securities, Fair Value, Due after ten years | 206 | |
Available for Sale Securities, Fair Value, Total | 67,236 | |
Held to Maturity Securities, Amortized Cost, Due in one year or less | 381 | |
Held to Maturity Securities, Amortized Cost, Due after one year through five years | 20,030 | |
Held to Maturity Securities, Amortized Cost, Due after five years through ten years | 40,435 | |
Held to Maturity Securities, Amortized Cost, Due after ten years | 14,667 | |
Held to Maturity Securities, Amortized Cost, Total | 75,513 | |
Held to Maturity Securities, Fair Value, Due in one year or less | 382 | |
Held to Maturity Securities, Fair Value, Due after one year through five years | 19,784 | |
Held to Maturity Securities, Fair Value, Due after five years through ten years | 40,048 | |
Held to Maturity Securities, Fair Value, Due after ten years | 14,497 | |
Held to Maturity Securities, Fair Value, Total | $74,711 |
SECURITIES_Details_3
SECURITIES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Gross gains realized | $801 | $3,978 | $4,068 |
Gross losses realized | -481 | -852 | -1,161 |
Net gain realized | $320 | $3,126 | $2,907 |
SECURITIES_Details_4
SECURITIES (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Available for sale, Less Than 12 Months Gross Unrealized Losses | $116 | $4,343 |
Available for sale, Less Than 12 Months Fair Value | 34,264 | 149,200 |
Available for sale, Over 12 Months Gross Unrealized Losses | 1,047 | 466 |
Available for sale, Over 12 Months Fair Value | 71,503 | 4,417 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 328 | 11,499 |
Held to maturity, Less Than 12 Months Fair Value | 15,976 | 249,891 |
Held to maturity, Over 12 Months Gross Unrealized Losses | 2,926 | 994 |
Held to maturity, Over 12 Months Fair Value | 149,472 | 26,535 |
Total Securities, Less Than 12 Months Gross Unrealized Losses | 444 | 15,842 |
Total Securities, Less Than 12 Months Fair Value | 50,240 | 399,091 |
Total Securities, Over 12 Months Gross Unrealized Losses | 3,973 | 1,460 |
Total Securities, Over 12 Months Fair Value | 220,975 | 30,952 |
Amortized Cost Basis - less than 12 months | 50,684 | |
Gross Loss - less than 12 months | 444 | |
Amortized Cost Basis - Over 12 Months | 224,948 | |
Gross Loss - Over 12 Months | 3,973 | |
Government-sponsored Mortgage-backed Securities [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 47 | 3,717 |
Available for sale, Less Than 12 Months Fair Value | 20,637 | 118,846 |
Available for sale, Over 12 Months Gross Unrealized Losses | 800 | 311 |
Available for sale, Over 12 Months Fair Value | 56,830 | 2,761 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 200 | 5,866 |
Held to maturity, Less Than 12 Months Fair Value | 10,292 | 145,438 |
Held to maturity, Over 12 Months Gross Unrealized Losses | 1,253 | 953 |
Held to maturity, Over 12 Months Fair Value | 65,526 | 24,729 |
Number of Securities - less than 12 months | 13 | |
Amortized Cost Basis - less than 12 months | 31,176 | |
Gross Loss - less than 12 months | 247 | |
Depreciation from AC Basis (%) - less than 12 months | 0.80% | |
Number of Securities - Over 12 Months | 31 | |
Amortized Cost Basis - Over 12 Months | 124,409 | |
Gross Loss - Over 12 Months | 2,053 | |
Depreciation from AC Basis (%)- Over 12 Months | 1.70% | |
US Government Guaranteed Mortgage Backed Securities [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 137 | |
Available for sale, Less Than 12 Months Fair Value | 15,045 | |
Available for sale, Over 12 Months Gross Unrealized Losses | 12 | |
Available for sale, Over 12 Months Fair Value | 677 | |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 1,391 | |
Held to maturity, Less Than 12 Months Fair Value | 38,314 | |
Held to maturity, Over 12 Months Gross Unrealized Losses | 607 | |
Held to maturity, Over 12 Months Fair Value | 31,951 | |
Number of Securities - less than 12 months | ||
Amortized Cost Basis - less than 12 months | ||
Gross Loss - less than 12 months | ||
Depreciation from AC Basis (%) - less than 12 months | ||
Number of Securities - Over 12 Months | 5 | |
Amortized Cost Basis - Over 12 Months | 33,247 | |
Gross Loss - Over 12 Months | 619 | |
Depreciation from AC Basis (%)- Over 12 Months | 1.90% | |
Corporate Bonds [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 17 | 93 |
Available for sale, Less Than 12 Months Fair Value | 4,438 | 4,659 |
Available for sale, Over 12 Months Gross Unrealized Losses | 3 | |
Available for sale, Over 12 Months Fair Value | 1,497 | |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 128 | 567 |
Held to maturity, Less Than 12 Months Fair Value | 5,684 | 22,059 |
Held to maturity, Over 12 Months Gross Unrealized Losses | 120 | |
Held to maturity, Over 12 Months Fair Value | 13,918 | |
Number of Securities - less than 12 months | 5 | |
Amortized Cost Basis - less than 12 months | 10,267 | |
Gross Loss - less than 12 months | 145 | |
Depreciation from AC Basis (%) - less than 12 months | 1.40% | |
Number of Securities - Over 12 Months | 5 | |
Amortized Cost Basis - Over 12 Months | 15,538 | |
Gross Loss - Over 12 Months | 123 | |
Depreciation from AC Basis (%)- Over 12 Months | 0.80% | |
Mutual Funds [Member] | ||
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 | 128 | 155 |
Available for sale, Over 12 Months Fair Value | 5,103 | 1,656 |
Number of Securities - less than 12 months | ||
Amortized Cost Basis - less than 12 months | ||
Gross Loss - less than 12 months | ||
Depreciation from AC Basis (%) - less than 12 months | ||
Number of Securities - Over 12 Months | 2 | |
Amortized Cost Basis - Over 12 Months | 5,231 | |
Gross Loss - Over 12 Months | 128 | |
Depreciation from AC Basis (%)- Over 12 Months | 2.40% | |
States and Municipal Bonds [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 2 | |
Available for sale, Less Than 12 Months Fair Value | 256 | |
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 | |
Held to maturity, Over 12 Months Gross Unrealized Losses | 94 | |
Held to maturity, Over 12 Months Fair Value | 4,853 | |
Number of Securities - less than 12 months | ||
Amortized Cost Basis - less than 12 months | ||
Gross Loss - less than 12 months | ||
Depreciation from AC Basis (%) - less than 12 months | ||
Number of Securities - Over 12 Months | 9 | |
Amortized Cost Basis - Over 12 Months | 4,947 | |
Gross Loss - Over 12 Months | 94 | |
Depreciation from AC Basis (%)- Over 12 Months | 1.90% | |
Government-Sponsored Enterprise Obligations [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 52 | 310 |
Available for sale, Less Than 12 Months Fair Value | 9,189 | 7,189 |
Available for sale, Over 12 Months Gross Unrealized Losses | 104 | |
Available for sale, Over 12 Months Fair Value | 7,396 | |
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 | 852 | 41 |
Held to maturity, Over 12 Months Fair Value | 33,224 | 1,806 |
Number of Securities - less than 12 months | 6 | |
Amortized Cost Basis - less than 12 months | 9,241 | |
Gross Loss - less than 12 months | 52 | |
Depreciation from AC Basis (%) - less than 12 months | 0.60% | |
Number of Securities - Over 12 Months | 9 | |
Amortized Cost Basis - Over 12 Months | 41,576 | |
Gross Loss - Over 12 Months | $956 | |
Depreciation from AC Basis (%)- Over 12 Months | 2.30% |
LOANS_Details
LOANS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchase of residential mortgages | $53,272 | $37,700 | $62,895 |
Net service fee income | 4 | 5 | 7 |
Number of contracts matured and removed from TDR Status | 1 | ||
Value of loans matured and removed from TDR status | 14,300 | ||
Committed to lend to customer | 113 | ||
Commercial Real Estate Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance of loans serviced for participants | 20,500 | 14,300 | |
Construction loan | $16,800 | $23,400 |
LOANS_Details_1
LOANS (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $723,416 | $636,660 | ||
Unearned premiums and deferred loan fees and costs, net | 1,270 | 767 | ||
Allowance for loan losses | -7,948 | -7,459 | -7,794 | -7,764 |
Loans, net | 716,738 | 629,968 | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 278,405 | 264,476 | ||
Allowance for loan losses | -3,705 | -3,550 | -3,406 | -3,504 |
Residential Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 237,436 | 198,686 | ||
Residential Real Estate- Home Equity [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 40,305 | 35,371 | ||
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 165,728 | 135,555 | ||
Allowance for loan losses | -2,174 | -2,191 | -2,167 | -2,712 |
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,542 | 2,572 | ||
Allowance for loan losses | ($15) | ($13) | ($13) | ($17) |
LOANS_Details_2
LOANS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | $7,459 | $7,794 | $7,764 |
Provision (credit) | 1,575 | -256 | 698 |
Charge-offs | -1,223 | -341 | -768 |
Recoveries | 137 | 262 | 100 |
Ending Balance | 7,948 | 7,459 | 7,794 |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 3,550 | 3,406 | 3,504 |
Provision (credit) | 505 | 9 | 19 |
Charge-offs | -350 | -20 | -195 |
Recoveries | 155 | 78 | |
Ending Balance | 3,705 | 3,550 | 3,406 |
Residential Real Estate[Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 1,707 | 1,746 | 1,531 |
Provision (credit) | 376 | 40 | 365 |
Charge-offs | -31 | -80 | -155 |
Recoveries | 1 | 1 | 5 |
Ending Balance | 2,053 | 1,707 | 1,746 |
Commercial and Industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 2,191 | 2,167 | 2,712 |
Provision (credit) | 649 | 148 | -161 |
Charge-offs | -787 | -208 | -391 |
Recoveries | 121 | 84 | 7 |
Ending Balance | 2,174 | 2,191 | 2,167 |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 13 | 13 | 17 |
Provision (credit) | 42 | 11 | 13 |
Charge-offs | -55 | -33 | -27 |
Recoveries | 15 | 22 | 10 |
Ending Balance | 15 | 13 | 13 |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | -2 | 462 | |
Provision (credit) | 3 | -464 | 462 |
Charge-offs | |||
Recoveries | |||
Ending Balance | $1 | ($2) | $462 |
LOANS_Details_3
LOANS (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans individually evaluated and deemed impaired | $97 | |||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 7,948 | 7,362 | ||
Total allowance for loan losses | 7,948 | 7,459 | 7,794 | 7,764 |
Loans individually evaluated and deemed impaired | 7,831 | 16,548 | ||
Loan collectively or individually evaluated and not deemed impaired | 715,585 | 620,112 | ||
Total loans | 723,416 | 636,660 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans individually evaluated and deemed impaired | 82 | |||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 3,705 | 3,467 | ||
Total allowance for loan losses | 3,705 | 3,550 | 3,406 | 3,504 |
Loans individually evaluated and deemed impaired | 3,104 | 14,962 | ||
Loan collectively or individually evaluated and not deemed impaired | 275,301 | 249,514 | ||
Total loans | 278,405 | 264,476 | ||
Residential Real Estate[Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans individually evaluated and deemed impaired | ||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 2,053 | 1,707 | ||
Total allowance for loan losses | 2,053 | 1,707 | 1,746 | 1,531 |
Loans individually evaluated and deemed impaired | 291 | 234 | ||
Loan collectively or individually evaluated and not deemed impaired | 277,450 | 233,823 | ||
Total loans | 277,741 | 234,057 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans individually evaluated and deemed impaired | 15 | |||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 2,174 | 2,177 | ||
Total allowance for loan losses | 2,174 | 2,191 | 2,167 | 2,712 |
Loans individually evaluated and deemed impaired | 4,436 | 1,352 | ||
Loan collectively or individually evaluated and not deemed impaired | 161,292 | 134,203 | ||
Total loans | 165,728 | 135,555 | ||
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans individually evaluated and deemed impaired | ||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 15 | 13 | ||
Total allowance for loan losses | 15 | 13 | 13 | 17 |
Loans individually evaluated and deemed impaired | ||||
Loan collectively or individually evaluated and not deemed impaired | 1,542 | 2,572 | ||
Total loans | 1,542 | 2,572 | ||
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans individually evaluated and deemed impaired | ||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 1 | -2 | ||
Total allowance for loan losses | 1 | -2 | 462 | |
Loans individually evaluated and deemed impaired | ||||
Loan collectively or individually evaluated and not deemed impaired | ||||
Total loans |
LOANS_Details_4
LOANS (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $3,760 | $2,192 |
60-89 Days Past Due | 61 | 1,267 |
Greater than 90 Days Past Due | 2,085 | 1,247 |
Total Past Due | 5,906 | 4,706 |
Past Due 90 Days or More and Still Accruing | ||
Loans on Non-Accrual | 8,830 | 2,586 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 3,003 | 430 |
60-89 Days Past Due | 146 | |
Greater than 90 Days Past Due | 529 | 793 |
Total Past Due | 3,532 | 1,369 |
Past Due 90 Days or More and Still Accruing | ||
Loans on Non-Accrual | 3,257 | 1,449 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 314 | 1,004 |
60-89 Days Past Due | 61 | 325 |
Greater than 90 Days Past Due | 1,158 | 311 |
Total Past Due | 1,533 | 1,640 |
Past Due 90 Days or More and Still Accruing | ||
Loans on Non-Accrual | 1,323 | 712 |
Residential Real Estate- Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 252 | 217 |
60-89 Days Past Due | ||
Greater than 90 Days Past Due | 1 | 2 |
Total Past Due | 253 | 219 |
Past Due 90 Days or More and Still Accruing | ||
Loans on Non-Accrual | 1 | 38 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 169 | 516 |
60-89 Days Past Due | 780 | |
Greater than 90 Days Past Due | 394 | 140 |
Total Past Due | 563 | 1,436 |
Past Due 90 Days or More and Still Accruing | ||
Loans on Non-Accrual | 4,233 | 386 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 22 | 25 |
60-89 Days Past Due | 16 | |
Greater than 90 Days Past Due | 3 | 1 |
Total Past Due | 25 | 42 |
Past Due 90 Days or More and Still Accruing | ||
Loans on Non-Accrual | $16 | $1 |
LOANS_Details_5
LOANS (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Impaired loans without a valuation allowance: | ||
Recorded Investment | $7,831 | $2,068 |
Unpaid Principal Balance | 9,250 | 2,549 |
Average Recorded Investment | 4,522 | 2,153 |
Interest Income Recognized | ||
Impaired loans with valuation allowance: | ||
Recorded Investment | 14,480 | |
Unpaid Principal Balance | 14,480 | |
Related Allowance | 97 | |
Average Recorded Investment | 8,982 | 14,657 |
Interest Income Recognized | 617 | 624 |
Total Impaired loans: | ||
Recorded Investment | 7,831 | 16,548 |
Unpaid Principal Balance | 9,250 | 17,029 |
Average Recorded Investment | 13,504 | 16,810 |
Interest Income Recognized | 617 | 624 |
Commercial Real Estate [Member] | ||
Impaired loans without a valuation allowance: | ||
Recorded Investment | 3,104 | 1,449 |
Unpaid Principal Balance | 3,662 | 1,756 |
Average Recorded Investment | 2,267 | 1,502 |
Interest Income Recognized | ||
Impaired loans with valuation allowance: | ||
Recorded Investment | 13,513 | |
Unpaid Principal Balance | 13,513 | |
Related Allowance | 82 | |
Average Recorded Investment | 8,382 | 13,678 |
Interest Income Recognized | 576 | 582 |
Residential Real Estate[Member] | ||
Impaired loans without a valuation allowance: | ||
Recorded Investment | 291 | 234 |
Unpaid Principal Balance | 407 | 306 |
Average Recorded Investment | 223 | 248 |
Interest Income Recognized | ||
Commercial and Industrial [Member] | ||
Impaired loans without a valuation allowance: | ||
Recorded Investment | 4,436 | 385 |
Unpaid Principal Balance | 5,181 | 487 |
Average Recorded Investment | 2,032 | 403 |
Interest Income Recognized | ||
Impaired loans with valuation allowance: | ||
Recorded Investment | 967 | |
Unpaid Principal Balance | 967 | |
Related Allowance | 15 | |
Average Recorded Investment | 600 | 979 |
Interest Income Recognized | $41 | $42 |
LOANS_Details_6
LOANS (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Loans | Loans | |
Troubled Debt Restructurings | ||
Number of contracts | 4 | 11 |
Pre-modification outstanding recorded investment | $431 | $16,129 |
Post-modification outstanding recorded investment | 431 | 16,129 |
Commercial Real Estate [Member] | ||
Troubled Debt Restructurings | ||
Number of contracts | 1 | 5 |
Pre-modification outstanding recorded investment | 228 | 14,785 |
Post-modification outstanding recorded investment | 228 | 14,785 |
Commercial and Industrial [Member] | ||
Troubled Debt Restructurings | ||
Number of contracts | 3 | 6 |
Pre-modification outstanding recorded investment | 203 | 1,344 |
Post-modification outstanding recorded investment | $203 | $1,344 |
LOANS_Details_7
LOANS (Details 7) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Loans | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | 5 |
Recorded Investment | $1,085 |
Commercial Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | 4 |
Recorded Investment | 944 |
Commercial and Industrial [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | 1 |
Recorded Investment | 141 |
Residential Real Estate[Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | |
Recorded Investment |
LOANS_Details_8
LOANS (Details 8) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $723,416 | $636,660 |
Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 651,040 | 558,534 |
Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 50,146 | 57,181 |
Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,400 | 5,481 |
Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,830 | 15,464 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 278,405 | 264,476 |
Commercial Real Estate [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 234,010 | 213,985 |
Commercial Real Estate [Member] | Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 33,305 | 41,459 |
Commercial Real Estate [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,833 | 1,972 |
Commercial Real Estate [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,257 | 7,060 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 237,436 | 198,686 |
Residential Mortgage [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 236,113 | 197,974 |
Residential Mortgage [Member] | Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Residential Mortgage [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Residential Mortgage [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,323 | 712 |
Residential Real Estate- Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 40,305 | 35,371 |
Residential Real Estate- Home Equity [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 40,282 | 35,333 |
Residential Real Estate- Home Equity [Member] | Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Residential Real Estate- Home Equity [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 22 | |
Residential Real Estate- Home Equity [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1 | 38 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 165,728 | 135,555 |
Commercial and Industrial [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 139,109 | 108,671 |
Commercial and Industrial [Member] | Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,841 | 15,722 |
Commercial and Industrial [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,545 | 3,509 |
Commercial and Industrial [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,233 | 7,653 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,542 | 2,572 |
Consumer [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,526 | 2,571 |
Consumer [Member] | Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Consumer [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Consumer [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $16 | $1 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $1,189 | $1,102 | $1,049 |
PREMISES_AND_EQUIPMENT_Details1
PREMISES AND EQUIPMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $29,226 | $27,329 |
Accumulated depreciation and amortization | -17,523 | -16,334 |
Premises and equipment, net | 11,703 | 10,995 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 2,156 | 1,622 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,826 | 1,826 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 13,293 | 13,104 |
Equipment And Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $11,951 | $10,777 |
DEPOSITS_Details_Narrative
DEPOSITS (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deposits Details Narrative | |||
Time deposits $100,000 or more | $163,500 | $139,600 | |
Interest expense on Time deposits $100,000 or more | $1,700 | $1,600 | $1,700 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposit Liabilities [Line Items] | ||
Demand deposits, Interest-bearing | $37,983 | $44,924 |
Demand deposits interest-bearing rate | 0.24% | 0.27% |
Demand deposits, Noninterest-bearing | 136,186 | 145,040 |
Regular, amount | 74,970 | 81,244 |
Savings regular rate | 0.10% | 0.10% |
Money market, amount | 227,330 | 204,469 |
Savings money market rate | 0.37% | 0.38% |
Total deposits, amount | 834,218 | 817,112 |
Total deposits, rate | 0.63% | 0.66% |
Certificates Of Deposit [Member] | ||
Deposit Liabilities [Line Items] | ||
Time certificates of deposit, amount | $357,749 | $341,435 |
Time certificates of deposit, rate | 1.19% | 1.28% |
DEPOSITS_Details_1
DEPOSITS (Details 1) (Certificates Of Deposit [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Certificates Of Deposit [Member] | ||
Due during the year ending December 31, | ||
2015 | $198,972 | |
2016 | 75,035 | |
2017 | 35,179 | |
2018 | 17,608 | |
2019 | 30,955 | |
Total | $357,749 | $341,435 |
DEPOSITS_Details_2
DEPOSITS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deposits Details 2 | |||
Regular | $80 | $119 | $186 |
Money market | 846 | 762 | 807 |
Time | 4,152 | 4,509 | 4,883 |
Interest-bearing demand | 99 | 135 | 266 |
Deposits | $5,177 | $5,525 | $6,142 |
SHORTTERM_BORROWINGS_Detail_Na
SHORT-TERM BORROWINGS (Detail Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Short-term borrowings | $93,997 | $48,197 | |
Government-sponsored and Certain Mortgage-backed Securities [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.56% | 3.49% | |
Short Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Cash paid for interest | 414 | 111 | 114 |
Long Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Cash paid for interest | 4,300 | 4,600 | 6,500 |
Federal Home Loan Bank Certificates And Obligations FHLB [Member] | |||
Debt Instrument [Line Items] | |||
Short-term borrowings | 62,800 | 20,000 | |
Weighted average rate | 0.33% | 0.30% | |
PNC [Member] | |||
Debt Instrument [Line Items] | |||
Total amount available to borrow | 50,000 | ||
Bankers Bank Northeast [Member] | |||
Debt Instrument [Line Items] | |||
Total amount available to borrow | 4,000 | ||
Required cash reserve | 300 | ||
Federal Home Loan Bank Of Boston Ideal Way [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding advance under line of credit | 1,800 | ||
Total amount available to borrow | $9,500 | $9,500 |
SHORTTERM_BORROWINGS_Details
SHORT-TERM BORROWINGS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Balance outstanding at end of year | $93,997 | $48,197 | ||
Securities Sold under Agreements to Repurchase [Member] | ||||
Balance outstanding at end of year | 31,164 | 28,197 | ||
Maximum amount outstanding during year | 44,435 | 40,860 | ||
Average amount outstanding during year | 35,657 | 31,754 | ||
Weighted average interest rate at end of year | 0.19% | 0.19% | ||
Amortized cost of collateral pledged at end of year | 63,660 | [1] | 53,714 | [1] |
Fair value of collateral pledged at end of year | $65,992 | [1] | $54,885 | [1] |
[1] | Includes collateral pledged toward $5.8 million in long-term customer repurchase agreements. |
LONGTERM_DEBT_Details_Narrativ
LONG-TERM DEBT (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Long-term debt | $232,479 | $248,377 | |
Repurchase Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Prepayment expense | 3,400 | ||
Repurchase agreements prepaid | 43,300 | ||
Repurchase agreements, weighted average rate | 2.99% | ||
Long Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Cash paid for interest | 4,300 | 4,600 | 6,500 |
Customer Contracts [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 5,800 | 5,600 | |
Long term debt, interest rate | 2.50% | 2.50% | |
Long term debt, maturity | 2015 | 2014 | |
Mortgage Backed Securities [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage-backed securities pledged as collateral | $257,500 | $245,100 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule Of Federal Home Loan Bank Advances And Other Borrowings [Line Items] | ||||
Total advances, amount | $216,707 | $232,747 | ||
Advances, weighted average rate | 1.60% | 1.30% | ||
Fixed Rate Debt [Member] | ||||
Schedule Of Federal Home Loan Bank Advances And Other Borrowings [Line Items] | ||||
Advances maturing in 2014, amount | 21,542 | |||
Advances maturing in 2015, amount | 30,573 | 25,395 | ||
Advances maturing in 2016, amount | 53,757 | 53,574 | ||
Advances maturing in 2017, amount | 47,500 | 17,500 | ||
Advances maturing in 2018, amount | 10,000 | 10,000 | ||
Advances maturing in 2019, amount | 5,000 | 5,000 | ||
Advances maturing in 2020, amount | 7,000 | 7,000 | ||
Total advances, amount | 153,830 | 140,011 | ||
Advances maturing in 2014, weighted average rate | 1.20% | |||
Advances maturing in 2015, weighted average rate | 1.40% | 1.60% | ||
Advances maturing in 2016, weighted average rate | 2.20% | 2.20% | ||
Advances maturing in 2017, weighted average rate | 2.40% | 2.60% | ||
Advances maturing in 2018, weighted average rate | 2.20% | 2.20% | ||
Advances maturing in 2019, weighted average rate | 3.20% | 3.20% | ||
Advances maturing in 2020, weighted average rate | 1.80% | 1.80% | ||
Advances, weighted average rate | 2.10% | 2.00% | ||
Floating Rate Debt [Member] | ||||
Schedule Of Federal Home Loan Bank Advances And Other Borrowings [Line Items] | ||||
Advances maturing in 2015, amount | 9,877 | 9,736 | ||
Advances maturing in 2016, amount | 10,000 | 10,000 | ||
Advances maturing in 2017, amount | 30,000 | |||
Advances maturing in 2018, amount | 32,000 | [1] | 32,000 | [1] |
Advances maturing in 2019, amount | 11,000 | [1] | 11,000 | [1] |
Total advances, amount | $62,877 | $92,736 | ||
Advances maturing in 2015, weighted average rate | 0.90% | 0.90% | ||
Advances maturing in 2016, weighted average rate | 1.40% | 1.40% | ||
Advances maturing in 2017, weighted average rate | -0.20% | |||
Advances maturing in 2018, weighted average rate | 0.40% | [1] | 0.40% | [1] |
Advances maturing in 2019, weighted average rate | -0.10% | [1] | -0.10% | [1] |
Advances, weighted average rate | 0.50% | 0.30% | ||
[1] | At December 31, 2014, the following amounts are callable at the option of FHLBB: $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 2.3% for the 2015 call. At December 31, 2013 there were $30.0 million in FHLBB advances that were callable. |
LONGTERM_DEBT_Details_Parenthe
LONG-TERM DEBT (Details) (Parenthetical) (Callable Securities [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Two Thousand Fourteen [Member] | |
Callable amount at option of FHLBB | $30,000 |
Two Thousand Fifteen [Member] | |
Callable amount at option of FHLBB | $33,000 |
Weighted average interest rate on advances, if advances are not called | 2.30% |
LONGTERM_DEBT_Details_1
LONG-TERM DEBT (Details 1) (Fixed Rate Debt [Member], Collateralized Securities [Member], Period Seven [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Fixed Rate Debt [Member] | Collateralized Securities [Member] | Period Seven [Member] | |||
Disclosure Of Repurchase Agreements [Line Items] | |||
Repurchase agreements, amount | $10,000 | [1] | $10,000 |
Repurchase agreements, weighted average rate | 2.70% | 2.70% | |
[1] | Callable in 2015 |
STOCK_PLANS_AND_EMPLOYEE_STOCK2
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN (Detail Narrative) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jan. 03, 2002 | Jan. 31, 2007 | Jan. 31, 2003 |
H | |||||||
Age | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Tender offer to purchase outstanding options | 1,665,415 | ||||||
Cash received for options exercised | $1,041 | ||||||
Share-based compensation expense | 92 | 126 | 963 | ||||
Accelerated share-based compensation expense due to the tender offer | 97 | ||||||
Excess tax shortfall (benefit) from equity incentive plan | 1 | 1 | 96 | ||||
Total unrecognized share-based compensation cost related to unvested stock options | 95 | ||||||
Share based compensation cost, weighted average recognition period | 1 year 8 months 16 days | ||||||
Employee age required to qualify for ESOP benefit | 21 | ||||||
Minimum working hours needed for eligibility | 1,000 | ||||||
Common stock sold in initial offering | 18,734,791 | 20,140,669 | |||||
Total ESOP compensation expense | 576 | 599 | 628 | ||||
Fair value of unallocated shares | 7,600 | 8,400 | |||||
Parent Company [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cash received for options exercised | 1,041 | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option expiration term | 10 years | ||||||
Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Deferred tax asset charged to shareholders' equity as a result of tender offer | 566,000 | ||||||
Share based compensation, shares available for grant | 57,232 | ||||||
Share-based compensation expense | 128 | 642 | |||||
Stock options, tax benefit | 35 | 173 | |||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock repurchased | 2,100 | ||||||
Stock Option Plan Twenty Zero Two [Member] | Directors Officers And Employees Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, original shares available for grant | 1,631,682 | ||||||
Stock option granted | 1,631,682 | ||||||
Stock Option Plan Twenty Zero Seven [Member] | Directors Officers And Employees Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, original shares available for grant | 1,560,101 | ||||||
Stock option granted | 1,503,869 | ||||||
Accelerated Vesting Of Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options, tax benefit | $26 | ||||||
Restricted Stock Awards Twenty Zero Seven [Member] | Directors Officers And Employees Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, original shares available for grant | 652,664 | ||||||
Restricted Stock Awards Twenty Zero Two [Member] | Directors Officers And Employees Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation, original shares available for grant | 624,041 | ||||||
Employee Stock Ownership Plan E S O P Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Debt, interest rate | 8.00% | ||||||
Loan To Employee Stock Ownership Plan Trust [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Debt, interest rate | 8.00% | ||||||
Customer Contracts [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Debt, interest rate | 2.50% | 2.50% | |||||
Public Offering [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock sold in initial offering | 18,400,000 | ||||||
Stock Conversion [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase of common stock by ESOP Trust, percentage | 8.00% | ||||||
Purchase of common stock by ESOP Trust | 1,305,359 | ||||||
Second Step Stock Conversion [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase of common stock by ESOP Trust, percentage | 4.00% | ||||||
Purchase of common stock by ESOP Trust | 736,000 |
STOCK_PLANS_AND_EMPLOYEE_STOCK3
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN (Details) (Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock [Member] | |
Shares | |
Beginning balance | 25,720 |
Shares vested | -12,720 |
Ending balance | 13,000 |
Weighted average grant date fair value | |
Beginning balance | $7.93 |
Shares vested | $7.79 |
Ending balance | $8.07 |
STOCK_PLANS_AND_EMPLOYEE_STOCK4
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Long-term debt | $232,479 | $248,377 |
Loan To Employee Stock Ownership Plan Trust [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
2015 | 447 | |
2016 | 447 | |
2017 | 447 | |
2018 | 447 | |
2019 | 447 | |
Thereafter | 6,587 | |
Long-term debt | $8,822 |
STOCK_PLANS_AND_EMPLOYEE_STOCK5
STOCK PLANS AND EMPLOYEE STOCK OWNERSHIP PLAN (Details 2) | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Allocated | 739,506 | 662,013 |
Committed to be allocated | 79,345 | 81,803 |
Unallocated | 1,040,751 | 1,120,096 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP, Total | 1,859,602 | 1,863,912 |
RETIREMENT_PLANS_AND_EMPLOYEE_2
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Minimum working hours needed for eligibility | 1,000 | ||
Other liabilities | $16,859 | $8,712 | |
Parent Company [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other liabilities | 194 | 476 | |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Minimum working hours needed for eligibility | 1,000 | ||
401 (k) [Member] | |||
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 | 236 | 231 | 214 |
Defined Benefit Postretirement Life Insurance [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other liabilities | 158 | 217 | |
Defined benefit plan, expense | $23 | $27 | $29 |
Fixed Income [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan target plan asset allocations | 56.00% | ||
Equity Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan target plan asset allocations | 44.00% |
RETIREMENT_PLANS_AND_EMPLOYEE_3
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $19,039 | $18,752 | $18,326 |
Service cost | 1,000 | 1,170 | 1,094 |
Interest | 824 | 763 | 800 |
Actuarial (gain) loss | 3,085 | -1,540 | 27 |
Benefits paid | -314 | -106 | -1,495 |
Benefit obligation at end of year | 23,634 | 19,039 | 18,752 |
Change in plan assets: | |||
Balance at beginning of year | 13,811 | 12,200 | 11,377 |
Actual return (loss) on plan assets | 1,725 | 992 | 818 |
Employer contribution | 725 | 725 | 1,500 |
Balance at end of year | 15,947 | 13,811 | 12,200 |
Funded status and accrued benefit at end of year | -7,687 | -5,228 | -6,552 |
Accumulated benefit obligation at end of year | $16,423 | $13,192 | $13,297 |
RETIREMENT_PLANS_AND_EMPLOYEE_4
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Details 1) | Dec. 31, 2014 | Dec. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | ||
Discount rate | 4.00% | 5.00% |
Rate of compensation increase | 4.00% | 4.00% |
RETIREMENT_PLANS_AND_EMPLOYEE_5
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $1,000 | $1,170 | $1,094 |
Interest cost | 824 | 763 | 800 |
Expected return on assets | -959 | -948 | -867 |
Amortization of transition asset | -10 | -12 | -12 |
Amortization of actuarial loss | 117 | 175 | |
Net periodic pension cost | $855 | $1,090 | $1,190 |
RETIREMENT_PLANS_AND_EMPLOYEE_6
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Details 3) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate | 5.00% | 4.00% | 4.50% |
Expected return on plan assets | 7.50% | 8.00% | 8.00% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
RETIREMENT_PLANS_AND_EMPLOYEE_7
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | $15,947 | $13,811 | $12,200 | $11,377 |
Fair Value Inputs Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 15,947 | 13,811 | ||
Short Term Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 1,582 | 6,049 | ||
Short Term Fixed Income [Member] | Fair Value Inputs Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 1,582 | 6,049 | ||
U S Small Mid Cap Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 924 | 831 | ||
U S Small Mid Cap Equity [Member] | Fair Value Inputs Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 924 | 831 | ||
United States Large Cap Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 3,845 | 3,325 | ||
United States Large Cap Equity [Member] | Fair Value Inputs Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 3,845 | 3,325 | ||
Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 7,467 | 6,049 | ||
Fixed Income [Member] | Fair Value Inputs Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 7,467 | 6,049 | ||
International Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 1,385 | 1,394 | ||
International Equity [Member] | Fair Value Inputs Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 1,385 | 1,394 | ||
Actual Asset Allocation [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | 744 | 693 | ||
Actual Asset Allocation [Member] | Fair Value Inputs Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan fair value of plan asset | $744 | $693 |
RETIREMENT_PLANS_AND_EMPLOYEE_8
RETIREMENT PLANS AND EMPLOYEE BENEFITS (Details 5) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | |
2015 | $757 |
2016 | 1,998 |
2017 | 426 |
2018 | 1,012 |
2019 | 791 |
In aggregate for 2020 - 2024 | $6,509 |
DERIVATIVES_AND_HEDGING_ACTIVI2
DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount | $155,000 | $155,000 | |
Estimated amount to be reclassified during the next 12 month period | 931 | ||
Reclassifications amount | 190 | ||
Derivatives in net liability position, value | 5,900 | ||
Two Thousand And Fifteen [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount | 47,500 | ||
Two Thousand And Sixteen [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount | $67,500 |
DERIVATIVES_AND_HEDGING_ACTIVI3
DERIVATIVES AND HEDGING ACTIVITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | ($5,739) | $1,755 |
Other Assets [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 9 | 1,755 |
Other Assets [Member] | Interest Rate Swap [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 9 | 1,755 |
Other Liabilities [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 5,748 | |
Other Liabilities [Member] | Interest Rate Swap [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $5,748 |
DERIVATIVES_AND_HEDGING_ACTIVI4
DERIVATIVES AND HEDGING ACTIVITIES (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ||
Notional Amount | $155,000 | $155,000 |
Weighted Average Maturity | 5 years 9 months 18 days | 6 years 9 months 18 days |
Estimated Fair Value | -5,739 | 1,755 |
Interest Rate Swap Agreement [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 40,000 | 20,000 |
Weighted Average Maturity | 3 years 3 months 18 days | 3 years 9 months 18 days |
Weighted Average Rate Received | 0.23% | 0.24% |
Weighted Average Rate Paid | 1.52% | 1.17% |
Estimated Fair Value | -268 | 40 |
Forward Starting Interest Rate Swap Agreement [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 115,000 | 135,000 |
Weighted Average Maturity | 6 years 8 months 12 days | 7 years 2 months 12 days |
Weighted Average Rate Paid | 3.11% | 2.93% |
Estimated Fair Value | ($5,471) | $1,715 |
DERIVATIVES_AND_HEDGING_ACTIVI5
DERIVATIVES AND HEDGING ACTIVITIES (Details 2) (Interest Rate Swap [Member], Derivatives Designated As Cash Flow Hedges [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest Rate Swap [Member] | Derivatives Designated As Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain recognized in OCI | ($7,684) | $1,755 |
REGULATORY_CAPITAL_Details_Nar
REGULATORY CAPITAL (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Regulatory Capital Details Narrative | ||
Number of shares authorized to be repurchased | 1,970,000 | |
Number of shares authorized to be repurchased as percentage of total outstanding shares of common stock | 10.00% | |
Number of shares available to be purchased under repurchase program | 999,460 | |
Restricted equity in net assets | $67,600 | $62,100 |
Description of approved final rules to regulatory capital framework | The final rule includes a new minimum ratio of common equity Tier 1 capital to risk weighted assets of 4.5%, raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and includes a minimum leverage ratio of 4% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers. The phase-in period for the rules will begin for the Bank on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule. Management believes that the Company will be characterized as “well-capitalized” under the new rules. |
REGULATORY_CAPITAL_Details
REGULATORY CAPITAL (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total Capital (to Risk Weighted Assets): | ||
Total Capital | $158,016 | $164,605 |
Tier 1 Capital (to Risk Weighted Assets): | ||
Tier 1 Capital | 150,018 | 157,119 |
Parent Company [Member] | ||
Total Capital (to Risk Weighted Assets): | ||
Total Capital | 158,016 | 164,605 |
Total Capital (to risk-weighted assets) ratio | 18.68% | 21.17% |
Minimum amount of capital for adequacy purposes | 67,675 | 62,207 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum Capital required to be well-capitalized, ratio | ||
Tier 1 Capital (to Risk Weighted Assets): | ||
Tier 1 Capital | 150,018 | 157,119 |
Tier 1 Capital (to risk-weighted assets) ratio | 17.73% | 20.21% |
Minimum amount of Tier 1 Capital for adequacy purposes | 33,838 | 31,104 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized, ratio | ||
Tier 1 Capital (to Adjusted Total Assets): | ||
Tier 1 Capital | 150,018 | 157,119 |
Tier 1 Capital (to adjusted total assets) ratio | 11.30% | 12.28% |
Minimum amount of Tier 1 Capital for adequacy purposes | 53,103 | 51,193 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized, ratio | ||
Tangible Equity (to Tangible Assets): | ||
Tier 1 Capital ((to tangible assets) ratio | ||
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | ||
Minimum Tier 1 Capital required to be well-capitalized, ratio | ||
Bank [Member] | ||
Total Capital (to Risk Weighted Assets): | ||
Total Capital | 150,392 | 157,484 |
Total Capital (to risk-weighted assets) ratio | 17.81% | 20.30% |
Minimum amount of capital for adequacy purposes | 67,549 | 62,073 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum Capital required to be well-capitalized | 84,436 | 77,591 |
Minimum Capital required to be well-capitalized, ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets): | ||
Tier 1 Capital | 142,383 | 149,965 |
Tier 1 Capital (to risk-weighted assets) ratio | 16.86% | 19.33% |
Minimum amount of Tier 1 Capital for adequacy purposes | 33,775 | 31,036 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | 50,662 | 46,555 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 6.00% | 6.00% |
Tier 1 Capital (to Adjusted Total Assets): | ||
Tier 1 Capital | 142,383 | 149,965 |
Tier 1 Capital (to adjusted total assets) ratio | 10.74% | 11.73% |
Minimum amount of Tier 1 Capital for adequacy purposes | 53,035 | 51,121 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | 66,293 | 63,901 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 5.00% | 5.00% |
Tangible Equity (to Tangible Assets): | ||
Tier 1 Capital | 142,383 | 149,965 |
Tier 1 Capital ((to tangible assets) ratio | 10.74% | 11.73% |
Minimum amount of Tier 1 Capital for adequacy purposes | $19,888 | $19,170 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 1.50% | 1.50% |
Minimum Tier 1 Capital required to be well-capitalized, ratio |
REGULATORY_CAPITAL_Details_1
REGULATORY CAPITAL (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Banking and Thrift [Abstract] | ||||
Consolidated GAAP capital | $142,543 | $154,144 | $189,187 | $218,988 |
Net unrealized losses on available-for-sale securities, net of tax | 728 | 2,706 | ||
Unrealized loss on defined benefit pension plan | 2,959 | 1,427 | ||
Accumulated net gain on cash flow hedges | 3,788 | -1,158 | ||
Tier 1 capital | 150,018 | 157,119 | ||
Unrealized gains on certain available-for-sale equity securities | 50 | 27 | ||
Allowance for loan losses | 7,948 | 7,459 | 7,794 | 7,764 |
Total regulatory capital | $158,016 | $164,605 |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||
Cash paid for income taxes | $2,000 | $941 | $2,600 |
Deferred tax liability | 531 | 888 | |
Interest expense - income taxes | 9 | ||
Federal Income Tax [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax reserve for loan losses | 5,800 | ||
Percentage of reserve taxable on amount used for unauthorized purpose | 150.00% | ||
Deferred tax liability | $2,400 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current tax provision: | |||||||||||
Federal | $1,854 | $795 | $1,856 | ||||||||
State | 221 | 96 | 215 | ||||||||
Total | 2,075 | 891 | 2,071 | ||||||||
Deferred tax provision: | |||||||||||
Federal | -188 | 980 | 184 | ||||||||
State | -5 | 1 | |||||||||
Total | -193 | 980 | 185 | ||||||||
Total | $523 | $491 | $417 | $451 | $533 | $476 | $297 | $566 | $1,882 | $1,871 | $2,256 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 34.00% | 34.00% | 34.00% |
Increase (decrease) resulting from state taxes, net of federal tax benefit | 1.80% | 0.70% | 1.70% |
Increase (decrease) resulting from tax exempt income | -4.10% | -4.70% | -6.40% |
Increase (decrease) resulting from bank-owned life insurance | -6.40% | -6.10% | -5.70% |
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 | -1.90% | 3.20% | 1.30% |
Effective tax rate | 23.40% | 21.70% | 26.50% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for loan losses | $2,702 | $2,536 |
Employee benefit and share-based compensation plans | 2,133 | 2,071 |
Net unrealized loss on derivative and hedging activity | 1,951 | |
Defined benefit plan | 1,525 | 735 |
Net unamortized loss on securities transferred from available for sale to held to maturity | 617 | 599 |
Net unrealized loss on securities available for sale | 837 | |
Other-than-temporary impairment write-down | 110 | 110 |
Other | 312 | 334 |
Deferred Tax Assets, Gross, Total | 9,350 | 7,222 |
Deferred tax liabilities: | ||
Deferred loan fees | -267 | -117 |
Net unrealized gain on securities available for sale | -226 | |
Net unrealized gain on derivative and hedging activity | -597 | |
Other | -38 | -174 |
Deferred tax liability | -531 | -888 |
Net deferred tax asset | $8,819 | $6,334 |
TRANSACTIONS_WITH_DIRECTORS_AN2
TRANSACTIONS WITH DIRECTORS AND EXECUTIVE OFFICERS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ||
Balance at beginning of year | $6,225 | $16,264 |
Principal distributions | 504 | 2,713 |
Repayments of principal | -3,897 | -2,635 |
Change in related party status | 49 | -10,117 |
Balance at end of year | $2,881 | $6,225 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Risk participation agreement interest rate swap, term | 10 years | ||
Risk participation agreement interest rate swap, fair value | $1,500 | ||
Guarantee, percentage | 50.00% | ||
Estimated risk participation agreement interest rate swap payment | 750 | ||
Commitments to extend credit | 174,800,000 | 126,600,000 | |
Fixed rate commitments | 33,200,000 | 27,000,000 | |
Variable rate commitments | 141,600,000 | 99,600,000 | |
Rent expense under operating leases | $707,000 | $671,000 | $625,000 |
Minimum [Member] | |||
Fixed rate commitments with interest rates | 2.45% | 2.75% | |
Maximum [Member] | |||
Fixed rate commitments with interest rates | 18.00% | 12.00% |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | $3,033 | $1,728 |
Lines of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 110,411 | 99,899 |
Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | 49,897 | 10,260 |
Existing Construction Loan Agreements [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments to extend credit | $11,419 | $14,667 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $653 |
2016 | 521 |
2017 | 406 |
2018 | 377 |
2019 | 355 |
Thereafter | 3,859 |
Operating Leases, Future Minimum Payments Due, Total | $6,171 |
CONCENTRATIONS_OF_CREDIT_RISK_
CONCENTRATIONS OF CREDIT RISK (Details Narrative) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Residential Mortgage [Member] | Minimum [Member] | ||
Ceded Credit Risk [Line Items] | ||
Amount of loan to appraised value of property above which mortgage insurance is obtained for excess portion of loan | 80.00% | |
Real Estate Loans [Member] | ||
Ceded Credit Risk [Line Items] | ||
Percentage of real estate loans to total loans | 76.90% | 78.30% |
Residential Mortgage [Member] | ||
Ceded Credit Risk [Line Items] | ||
Amount of loan to appraised value of property | 100.00% | |
Commercial Loan [Member] | ||
Ceded Credit Risk [Line Items] | ||
Amount of loan to appraised value of property | 85.00% |
FAIR_VALUE_OF_ASSETS_AND_LIABL
FAIR VALUE OF ASSETS AND LIABLITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $215,750 | $243,204 |
Derivative asset | 9 | 1,755 |
Derivative liabilities, net | 5,748 | |
Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,715 | 7,518 |
Derivative asset | ||
Derivative liabilities, net | ||
Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 208,035 | 237,441 |
Derivative asset | 9 | 1,755 |
Derivative liabilities, net | 5,748 | |
Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Derivative asset | ||
Derivative liabilities, net | ||
Government-sponsored Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 139,213 | 132,372 |
US Government Guaranteed Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,586 | 46,328 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 26,223 | 27,389 |
States and Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,034 | 18,897 |
Government-Sponsored Enterprise Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 23,979 | 10,700 |
Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,176 | 5,919 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,539 | 1,599 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 215,750 | 243,204 |
Derivative asset | 9 | 1,755 |
Total assets | 215,759 | 244,959 |
Derivative liabilities, net | 5,748 | |
Recurring [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,715 | 7,518 |
Derivative asset | ||
Total assets | 7,715 | 7,518 |
Derivative liabilities, net | ||
Recurring [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 208,035 | 235,686 |
Derivative asset | 9 | 1,755 |
Total assets | 208,044 | 237,441 |
Derivative liabilities, net | 5,748 | |
Recurring [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Derivative asset | ||
Total assets | ||
Derivative liabilities, net | ||
Recurring [Member] | Government-sponsored Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 139,213 | 132,372 |
Recurring [Member] | Government-sponsored Mortgage-backed Securities [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | Government-sponsored Mortgage-backed Securities [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 139,213 | 132,372 |
Recurring [Member] | Government-sponsored Mortgage-backed Securities [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | US Government Guaranteed Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,586 | 46,328 |
Recurring [Member] | US Government Guaranteed Mortgage Backed Securities [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | US Government Guaranteed Mortgage Backed Securities [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,586 | 46,328 |
Recurring [Member] | US Government Guaranteed Mortgage Backed Securities [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 26,223 | 27,389 |
Recurring [Member] | Corporate Bonds [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | Corporate Bonds [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 26,223 | 27,389 |
Recurring [Member] | Corporate Bonds [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | States and Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,034 | 18,897 |
Recurring [Member] | States and Municipal Bonds [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | States and Municipal Bonds [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,034 | 18,897 |
Recurring [Member] | States and Municipal Bonds [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | Government-Sponsored Enterprise Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 23,979 | 10,700 |
Recurring [Member] | Government-Sponsored Enterprise Obligations [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | Government-Sponsored Enterprise Obligations [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 23,979 | 10,700 |
Recurring [Member] | Government-Sponsored Enterprise Obligations [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,176 | 5,919 |
Recurring [Member] | Mutual Funds [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,176 | 5,919 |
Recurring [Member] | Mutual Funds [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | Mutual Funds [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,539 | 1,599 |
Recurring [Member] | Equity Securities [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,539 | 1,599 |
Recurring [Member] | Equity Securities [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | ||
Recurring [Member] | Equity Securities [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale |
FAIR_VALUE_OF_ASSETS_AND_LIABL1
FAIR VALUE OF ASSETS AND LIABLITIES (Details 1) (Nonrecurring [Member], Fair Value Inputs Level 3 [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $5,149 | $2,069 |
Gains (Losses) arising from fair value adjustment of assets | -1,036 | -31 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 5,149 | 2,069 |
Gains (Losses) arising from fair value adjustment of assets | ($1,036) | ($31) |
FAIR_VALUE_OF_ASSETS_AND_LIABL2
FAIR VALUE OF ASSETS AND LIABLITIES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Cash and cash equivalents | $18,785 | $19,742 |
Securities available for sale | 215,750 | 243,204 |
Securities held to maturity | 277,636 | 282,555 |
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | 15,631 |
Loans - net | 721,818 | 631,417 |
Accrued interest receivable | 4,213 | 4,201 |
Derivative assets | 9 | 1,755 |
Liabilities: | ||
Deposits | 834,838 | 819,109 |
Short-term borrowings | 93,997 | 48,197 |
Long-term debt | 236,457 | 251,678 |
Accrued interest payable | 501 | 392 |
Derivative liabilities, net | 5,748 | |
Fair Value - Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 18,785 | 19,742 |
Securities available for sale | 7,715 | 7,518 |
Securities held to maturity | ||
Federal Home Loan Bank of Boston and other restricted stock | ||
Loans - net | ||
Accrued interest receivable | ||
Derivative assets | ||
Liabilities: | ||
Deposits | ||
Short-term borrowings | ||
Long-term debt | ||
Accrued interest payable | ||
Derivative liabilities, net | ||
Fair Value Inputs Level 2 [Member] | ||
Assets: | ||
Cash and cash equivalents | ||
Securities available for sale | 208,035 | 237,441 |
Securities held to maturity | 277,636 | 282,555 |
Federal Home Loan Bank of Boston and other restricted stock | ||
Loans - net | ||
Accrued interest receivable | ||
Derivative assets | 9 | 1,755 |
Liabilities: | ||
Deposits | ||
Short-term borrowings | 93,997 | 48,197 |
Long-term debt | 236,457 | 251,678 |
Accrued interest payable | ||
Derivative liabilities, net | 5,748 | |
Fair Value - Level 3 [Member] | ||
Assets: | ||
Cash and cash equivalents | ||
Securities available for sale | ||
Securities held to maturity | ||
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | 15,631 |
Loans - net | 721,818 | 631,417 |
Accrued interest receivable | 4,213 | 4,201 |
Derivative assets | ||
Liabilities: | ||
Deposits | 834,838 | 819,109 |
Short-term borrowings | ||
Long-term debt | ||
Accrued interest payable | 501 | 392 |
Derivative liabilities, net | ||
Carrying Value [Member] | ||
Assets: | ||
Cash and cash equivalents | 18,785 | 19,742 |
Securities available for sale | 215,750 | 243,204 |
Securities held to maturity | 278,080 | 295,013 |
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | 15,631 |
Loans - net | 716,738 | 629,968 |
Accrued interest receivable | 4,213 | 4,201 |
Derivative assets | 9 | 1,755 |
Liabilities: | ||
Deposits | 834,218 | 817,112 |
Short-term borrowings | 93,997 | 48,197 |
Long-term debt | 232,479 | 248,377 |
Accrued interest payable | 501 | 392 |
Derivative liabilities, net | $5,748 |
CONDENSED_PARENT_COMPANY_FINAN2
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS: | ||||
Securities available for sale | $215,750 | $243,204 | ||
Other assets | 2,371 | 4,574 | ||
TOTAL ASSETS | 1,320,096 | 1,276,841 | ||
LIABILITIES: | ||||
Other liabilities | 16,859 | 8,712 | ||
EQUITY | 142,543 | 154,144 | 189,187 | 218,988 |
TOTAL LIABILITIES AND EQUITY | 1,320,096 | 1,276,841 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash equivalents | 178 | 158 | ||
Securities available for sale | 1,539 | 1,599 | ||
Investment in subsidiaries | 134,836 | 146,951 | ||
ESOP loan receivable | 8,822 | 9,269 | ||
Other assets | 6,184 | 5,912 | ||
TOTAL ASSETS | 151,559 | 163,889 | ||
LIABILITIES: | ||||
ESOP loan payable | 8,822 | 9,269 | ||
Other liabilities | 194 | 476 | ||
EQUITY | 142,543 | 154,144 | ||
TOTAL LIABILITIES AND EQUITY | $151,559 | $163,889 |
CONDENSED_PARENT_COMPANY_FINAN3
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME: | |||||||||||
Gain (loss) on sale of securities, net | $320 | $3,126 | $2,907 | ||||||||
OPERATING EXPENSE: | |||||||||||
Salaries and employee benefits | 14,709 | 15,458 | 16,530 | ||||||||
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES AND INCOME TAXES | 2,184 | 2,001 | 1,759 | 2,099 | 2,342 | 2,057 | 1,881 | 2,348 | 8,044 | 8,627 | 8,510 |
INCOME TAX BENEFIT | 523 | 491 | 417 | 451 | 533 | 476 | 297 | 566 | 1,882 | 1,871 | 2,256 |
NET INCOME | 1,661 | 1,510 | 1,342 | 1,648 | 1,809 | 1,581 | 1,584 | 1,782 | 6,162 | 6,756 | 6,254 |
Parent Company [Member] | |||||||||||
INCOME: | |||||||||||
Dividends from subsidiaries | 14,712 | 26,964 | 42,372 | ||||||||
Interest income from securities | 31 | 16 | 68 | ||||||||
ESOP loan interest income | 741 | 777 | 813 | ||||||||
Gain (loss) on sale of securities, net | 3 | ||||||||||
Total income | 15,484 | 27,760 | 43,253 | ||||||||
OPERATING EXPENSE: | |||||||||||
Salaries and employee benefits | 697 | 879 | 2,262 | ||||||||
ESOP interest expense | 741 | 777 | 813 | ||||||||
Other | 503 | 586 | 511 | ||||||||
Total operating expense | 1,941 | 2,242 | 3,586 | ||||||||
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES AND INCOME TAXES | 13,543 | 25,518 | 39,667 | ||||||||
EQUITY IN UNDISTRIBUTED LOSS OF SUBSIDIARIES | -7,655 | -19,073 | -34,130 | ||||||||
INCOME BEFORE INCOME TAXES | 5,888 | 6,445 | 5,537 | ||||||||
INCOME TAX BENEFIT | -274 | -311 | -717 | ||||||||
NET INCOME | $6,162 | $6,756 | $6,254 |
CONDENSED_PARENT_COMPANY_FINAN4
CONDENSED PARENT COMPANY FINANCIAL STATEMENTS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||||||||||
Net income | $1,661 | $1,510 | $1,342 | $1,648 | $1,809 | $1,581 | $1,584 | $1,782 | $6,162 | $6,756 | $6,254 |
Net realized securities gains | -320 | -3,126 | -2,907 | ||||||||
Change in other liabilities | 77 | 807 | -1,066 | ||||||||
Change in other assets | -150 | -21 | 976 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Sale of securities | 71,738 | 206,788 | 288,116 | ||||||||
FINANCING ACTIVITIES: | |||||||||||
Cash dividends paid | -3,832 | -5,872 | -10,721 | ||||||||
Common stock repurchased | -10,518 | -20,093 | -32,083 | ||||||||
Excess tax (shortfall) benefit from share-based compensation | -1 | -1 | -96 | ||||||||
Issuance of common stock in connection with stock option exercises | 1,041 | ||||||||||
Repayment of long-term debt | -21,650 | -66,620 | -88,748 | ||||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | -957 | 7,981 | -9,344 | ||||||||
Supplemental cashflow information: | |||||||||||
Net cash due to (from) broker for common stock repurchased | 299 | -352 | |||||||||
Parent Company [Member] | |||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income | 6,162 | 6,756 | 6,254 | ||||||||
Dividends in excess of earnings of subsidiaries | 7,655 | 19,073 | 34,130 | ||||||||
Net realized securities gains | -3 | ||||||||||
Change in other liabilities | -409 | 198 | 36 | ||||||||
Change in other assets | 174 | -487 | -271 | ||||||||
Other, net | 667 | 1,422 | 2,089 | ||||||||
Net cash provided by operating activities | 14,249 | 26,959 | 42,238 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchase of securities | -235 | -349 | -1,533 | ||||||||
Proceeds from principal collections of securities | 1,307 | 575 | |||||||||
Sale of securities | 235 | 352 | 566 | ||||||||
Net cash provided by (used in) investing activities | 1,310 | -392 | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Cash dividends paid | -3,832 | -5,872 | -10,721 | ||||||||
Common stock repurchased | -10,518 | -20,093 | -32,083 | ||||||||
Tender offer to purchase outstanding options | 121 | -2,151 | |||||||||
Excess tax expense in connection with tender offer completion | -566 | ||||||||||
Excess tax (shortfall) benefit from share-based compensation | -1 | 144 | |||||||||
Issuance of common stock to ESOP | |||||||||||
Issuance of common stock in connection with stock option exercises | 1,041 | ||||||||||
Repayment of long-term debt | -446 | ||||||||||
Net cash used in financing activities | -14,229 | -28,683 | -42,065 | ||||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | 20 | -414 | -219 | ||||||||
CASH AND CASH EQUIVALENTS | |||||||||||
Beginning of year | 158 | 572 | 158 | 572 | 791 | ||||||
End of year | 178 | 158 | 178 | 158 | 572 | ||||||
Supplemental cashflow information: | |||||||||||
Net cash due to (from) broker for common stock repurchased | $299 | ($352) |
SUMMARY_OF_QUARTERLY_FINANCIAL2
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $10,471 | $10,343 | $10,143 | $10,034 | $10,089 | $10,348 | $10,246 | $10,349 | |||
Interest expense | 2,593 | 2,509 | 2,442 | 2,379 | 2,482 | 2,520 | 2,609 | 2,679 | 9,923 | 10,290 | 12,663 |
Total interest and dividend income | 7,878 | 7,834 | 7,701 | 7,655 | 7,607 | 7,828 | 7,637 | 7,670 | 40,991 | 41,031 | 43,104 |
Provision for loan losses | 275 | 750 | 450 | 100 | 120 | -71 | -70 | -235 | |||
Other noninterest income | 1,033 | 1,039 | 1,018 | 1,049 | 1,013 | 1,003 | 981 | 957 | |||
Gain on bank-owned life insurance | 563 | 1,523 | 1,549 | 1,439 | |||||||
Loss on prepayment of borrowings | -540 | -1,404 | -1,426 | ||||||||
Gain on sales of securities, net | 44 | 226 | 21 | 29 | 330 | 546 | 823 | 1,427 | |||
Noninterest expense | 6,496 | 6,348 | 6,531 | 6,534 | 6,488 | 6,851 | 6,789 | 6,515 | 25,909 | 26,642 | 27,223 |
Income before income taxes | 2,184 | 2,001 | 1,759 | 2,099 | 2,342 | 2,057 | 1,881 | 2,348 | 8,044 | 8,627 | 8,510 |
Income tax provision | 523 | 491 | 417 | 451 | 533 | 476 | 297 | 566 | 1,882 | 1,871 | 2,256 |
NET INCOME | $1,661 | $1,510 | $1,342 | $1,648 | $1,809 | $1,581 | $1,584 | $1,782 | $6,162 | $6,756 | $6,254 |
Basic earnings per share (in dollars per share) | $0.09 | $0.08 | $0.07 | $0.09 | $0.09 | $0.08 | $0.08 | $0.08 | $0.34 | $0.34 | $0.26 |
Diluted earnings per share (in dollars per share) | $0.09 | $0.08 | $0.07 | $0.09 | $0.09 | $0.08 | $0.08 | $0.08 | $0.34 | $0.34 | $0.26 |