Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | WESTFIELD FINANCIAL INC | |
Entity Central Index Key | 1157647 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,558,310 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
CASH AND DUE FROM BANKS | $11,010 | $10,294 |
FEDERAL FUNDS SOLD | 81 | 269 |
INTEREST-BEARING DEPOSITS AND OTHER SHORT-TERM INVESTMENTS | 1,628 | 8,222 |
CASH AND CASH EQUIVALENTS | 12,719 | 18,785 |
SECURITIES AVAILABLE FOR SALE - AT FAIR VALUE | 233,591 | 215,750 |
SECURITIES HELD TO MATURITY (Fair value of $268,995 and $277,636 at March 31, 2015 and December 31, 2014, respectively) | 266,718 | 278,080 |
FEDERAL HOME LOAN BANK OF BOSTON AND OTHER RESTRICTED STOCK - AT COST | 14,934 | 14,934 |
LOANS - Net of allowance for loan losses of $8,035 and $7,948 at March 31, 2015 and December 31, 2014, respectively | 722,319 | 716,738 |
PREMISES AND EQUIPMENT, Net | 13,762 | 11,703 |
ACCRUED INTEREST RECEIVABLE | 4,151 | 4,213 |
BANK-OWNED LIFE INSURANCE | 49,070 | 48,703 |
DEFERRED TAX ASSET, Net | 9,615 | 8,819 |
OTHER ASSETS | 2,132 | 2,371 |
TOTAL ASSETS | 1,329,011 | 1,320,096 |
DEPOSITS : | ||
Noninterest-bearing | 140,331 | 136,186 |
Interest-bearing | 732,972 | 698,032 |
Total deposits | 873,303 | 834,218 |
SHORT-TERM BORROWINGS | 82,625 | 93,997 |
LONG-TERM DEBT | 212,637 | 232,479 |
OTHER LIABILITIES | 20,156 | 16,859 |
TOTAL LIABILITIES | 1,188,721 | 1,177,553 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock - $.01 par value, 5,000,000 shares authorized, none outstanding at March 31, 2015 and December 31, 2014 | ||
Common stock - $.01 par value, 75,000,000 shares authorized, 18,558,310 shares issued and outstanding at March 31, 2015; 18,734,791 shares issued and outstanding at December 31, 2014 | 186 | 187 |
Additional paid-in capital | 110,382 | 111,696 |
Unearned compensation - ESOP | -7,340 | -7,469 |
Unearned compensation - Equity Incentive Plan | -416 | -95 |
Retained earnings | 46,506 | 45,699 |
Accumulated other comprehensive loss | -9,028 | -7,475 |
Total shareholders' equity | 140,290 | 142,543 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,329,011 | $1,320,096 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $268,995 | $277,636 |
Allowance for loan losses | $8,035 | $7,948 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 18,558,310 | 18,734,791 |
Common stock, shares outstanding | 18,558,310 | 18,734,791 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
INTEREST AND DIVIDEND INCOME: | ||
Residential and commercial real estate loans | $5,595 | $5,247 |
Commercial and industrial loans | 1,598 | 1,277 |
Consumer loans | 36 | 33 |
Debt securities, taxable | 2,658 | 3,160 |
Debt securities, tax-exempt | 186 | 210 |
Equity securities | 41 | 36 |
Other investments - at cost | 68 | 65 |
Federal funds sold, interest-bearing deposits and other short-term investments | 6 | 6 |
Total interest and dividend income | 10,188 | 10,034 |
INTEREST EXPENSE: | ||
Deposits | 1,341 | 1,291 |
Long-term debt | 1,070 | 1,011 |
Short-term borrowings | 187 | 77 |
Total interest expense | 2,598 | 2,379 |
Net interest and dividend income | 7,590 | 7,655 |
PROVISION FOR LOAN LOSSES | 300 | 100 |
Net interest and dividend income after provision for loan losses | 7,290 | 7,555 |
NONINTEREST INCOME (LOSS): | ||
Service charges and fees | 638 | 670 |
Income from bank-owned life insurance | 367 | 379 |
Loss on prepayment of borrowings | -593 | |
Gain on sales of securities, net | 817 | 29 |
Total noninterest income | 1,229 | 1,078 |
NONINTEREST EXPENSE: | ||
Salaries and employees benefits | 3,821 | 3,778 |
Occupancy | 840 | 761 |
Computer operations | 585 | 515 |
Professional fees | 472 | 512 |
FDIC insurance assessment | 193 | 165 |
Other | 800 | 803 |
Total noninterest expense | 6,711 | 6,534 |
INCOME BEFORE INCOME TAXES | 1,808 | 2,099 |
INCOME TAX PROVISION | 470 | 451 |
NET INCOME | $1,338 | $1,648 |
EARNINGS PER COMMON SHARE: | ||
Basic earnings per share (in dollars per share) | $0.08 | $0.09 |
Weighted average shares outstanding (in shares) | 17,684,498 | 18,812,795 |
Diluted earnings per share (in dollars per share) | $0.08 | $0.09 |
Weighted average diluted shares outstanding (in shares) | 17,684,498 | 18,812,795 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $1,338 | $1,648 | ||
Unrealized gain (loss) on securities: | ||||
Unrealized holding gains on available for sale securities | 1,214 | 1,277 | ||
Reclassification adjustment for gains realized in income | -817 | -29 | ||
Amortization of net unrealized loss on held-to-maturity securities | -76 | [1] | 12 | [1] |
Net unrealized gains | 321 | 1,260 | ||
Tax effect | -112 | -434 | ||
Net-of-tax amount | 209 | 826 | ||
Derivative instruments: | ||||
Change in fair value of derivatives used for cash flow hedges | -2,769 | -2,390 | ||
Reclassification adjustment for loss realized | 131 | [2] | 46 | [2] |
Tax effect | 897 | 797 | ||
Net-of-tax amount | -1,741 | -1,547 | ||
Defined benefit pension plans: | ||||
Losses arising during the period | -62 | |||
Reclassification adjustments: | ||||
Amortization of actuarial loss | 31 | [3] | [3] | |
Amortization of transition asset | [3] | -5 | [3] | |
Net adjustments pertaining to defined benefit plans | -31 | -5 | ||
Tax effect | 10 | 1 | ||
Net-of-tax amount | -21 | -4 | ||
Other comprehensive loss | -1,553 | -725 | ||
Comprehensive income (loss) | ($215) | $923 | ||
[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 $25,000 and $4,000 for the three months ended March 31, 2015 and 2014, respectively. | |||
[2] | Loss realized on derivative instruments is recognized as a component of interest expense on short-term debt. Income tax benefits associated with the reclassification adjustment were $45,000 and $16,000 for the three months ended March 31, 2015 and 2014, respectively. | |||
[3] | Amortization amounts have been recognized as a component of salaries and employee benefits expense. Income tax benefits associated with the reclassification adjustments were $11,000 and $2,000, for the three months ended March 31, 2015 and 2014, respectively. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Income tax expense (benefits), securities held-to-maturity | $25 | $4 |
Income tax expense (benefits), derivative instruments | 45 | 16 |
Income tax expense (benefits), salaries and employee benefits expense | $11 | $2 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Unearned Compensation - ESOP [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, 2013 | $201 | $121,860 | ($8,003) | ($187) | $43,248 | ($2,975) | $154,144 |
BEGINNING BALANCE (in shares) at Dec. 31, 2013 | 20,140,669 | ||||||
Comprehensive income (loss) | 1,648 | -725 | 923 | ||||
Common stock held by ESOP committed to be released | 13 | 133 | 146 | ||||
Share-based compensation - equity incentive plan | 25 | 25 | |||||
Excess tax benefit from equity incentive plan | 1 | 1 | |||||
Common stock repurchased | -4 | -2,641 | -2,645 | ||||
Common stock repurchased (in shares) | -355,926 | ||||||
Return of dividends issued in connection with equity incentive plan | 121 | 121 | |||||
Cash dividends declared | -1,129 | -1,129 | |||||
ENDING BALANCE at Mar. 31, 2014 | 197 | 119,233 | -7,870 | -162 | 43,888 | -3,700 | 151,586 |
ENDING BALANCE (in shares) at Mar. 31, 2014 | 19,784,743 | ||||||
BEGINNING BALANCE at Dec. 31, 2014 | 187 | 111,696 | -7,469 | -95 | 45,699 | -7,475 | 142,543 |
BEGINNING BALANCE (in shares) at Dec. 31, 2014 | 18,734,791 | ||||||
Comprehensive income (loss) | 1,338 | -1,553 | -215 | ||||
Common stock held by ESOP committed to be released | 10 | 129 | 139 | ||||
Share-based compensation - equity incentive plan | 28 | 28 | |||||
Excess tax benefit from equity incentive plan | 1 | 1 | |||||
Common stock repurchased | -2 | -1,673 | -1,675 | ||||
Common stock repurchased (in shares) | -225,041 | ||||||
Issuance of common stock in connection with equity incentive plan | 1 | 348 | -349 | ||||
Issuance of common stock in connection with equity incentive plan (in shares) | 48,560 | ||||||
Cash dividends declared | -531 | -531 | |||||
ENDING BALANCE at Mar. 31, 2015 | $186 | $110,382 | ($7,340) | ($416) | $46,506 | ($9,028) | $140,290 |
ENDING BALANCE (in shares) at Mar. 31, 2015 | 18,558,310 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash dividends declared, per share | $0.03 | $0.06 |
Unearned Compensation - ESOP [Member] | ||
Common stock held by ESOP committed to be released, shares | 76,888 | 79,345 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OPERATING ACTIVITIES: | ||
Net income | $1,338 | $1,648 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 300 | 100 |
Depreciation and amortization of premises and equipment | 335 | 281 |
Net amortization of premiums and discounts on securities and mortgage loans | 1,283 | 1,045 |
Net amortization of premiums on modified debt | 122 | 156 |
Share-based compensation expense | 28 | 25 |
ESOP expense | 139 | 146 |
Excess tax benefits from equity incentive plan | -1 | -1 |
Net gains on sales of securities | -817 | -29 |
Loss on prepayment of borrowings | 593 | |
Income from bank-owned life insurance | -367 | -379 |
Changes in assets and liabilities: | ||
Accrued interest receivable | 62 | 81 |
Other assets | 228 | 169 |
Other liabilities | 638 | 207 |
Net cash provided by operating activities | 3,881 | 3,449 |
Securities, held to maturity: | ||
Purchases | -2,619 | |
Proceeds from calls, maturities, and principal collections | 13,218 | 2,406 |
Securities, available for sale: | ||
Purchases | -81,243 | -12,170 |
Proceeds from sales | 52,711 | 13,003 |
Proceeds from calls, maturities, and principal collections | 11,334 | 9,323 |
Purchase of residential mortgages | -6,209 | -7,468 |
Loan originations and principal payments, net | 304 | -2,750 |
Purchases of premises and equipment | -2,417 | -313 |
Proceeds from sale of premises and equipment | 23 | 23 |
Net cash (used in) provided by investing activities | -14,898 | 2,054 |
FINANCING ACTIVITIES: | ||
Net increase (decrease) in deposits | 39,085 | -10,417 |
Net change in short-term borrowings | -11,372 | 10,263 |
Repayment of long-term debt | -20,593 | |
Proceeds from long-term debt | 36 | 35 |
Return of dividends issued in connection with equity incentive plan | 121 | |
Cash dividends paid | -531 | -1,129 |
Common stock repurchased | -1,675 | -2,749 |
Excess tax benefits in connection with equity incentive plan | 1 | 1 |
Net cash provided by (used in) financing activities | 4,951 | -3,875 |
NET CHANGE IN CASH AND CASH EQUIVALENTS: | -6,066 | 1,628 |
Beginning of period | 18,785 | 19,742 |
End of period | 12,719 | 21,370 |
Supplemental cash flow information: | ||
Securities reclassified to loan portfolio | 606 | |
Interest paid | 2,631 | 2,395 |
Taxes paid | 35 | 41 |
Net cash due to broker for common stock repurchased | $195 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Nature of Operations – Westfield Financial, Inc. (“Westfield Financial,” “we” or “us”) is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank (the “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 unaudited consolidated financial statements include the accounts of Westfield Financial, the Bank, Elm Street Securities Corporation, WB Real Estate Holdings, LLC and WFD Securities Corporation. All material intercompany balances and transactions have been eliminated in consolidation. | |
Estimates – The preparation of unaudited 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, the disclosure of contingent assets and liabilities and the reported amounts of income and expenses for both at the date of the unaudited consolidated financial statements. 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. | |
Basis of Presentation – In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of our financial condition as of March 31, 2015, and the results of operations, changes in shareholders’ equity and cash flows for the interim periods presented. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results of operations for the year ending December 31, 2015. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. | |
These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2014, included in our Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Annual Report”). | |
Reclassifications - Amounts in the prior period financial statements are reclassified when necessary to conform to the current year presentation. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
EARNINGS PER COMMON SHARE: | |||||||||
Earnings Per Share | 2. EARNINGS PER SHARE | ||||||||
Basic earnings per share represent income available to shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential shares had been issued, as well as any adjustment to income that would result from the assumed issuance. No dilutive potential shares were outstanding during the periods presented. Share-based compensation awards that qualify as participating securities (entitled to receive non-forfeitable dividends) are included in basic earnings per share. | |||||||||
Earnings per common share for the three months ended March 31, 2015 and 2014 have been computed based on the following: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In thousands, except per share data) | |||||||||
Net income applicable to common stock | $ | 1,338 | $ | 1,648 | |||||
Average number of common shares issued | 18,725 | 19,933 | |||||||
Less: Average unallocated ESOP Shares | (1,041 | ) | (1,120 | ) | |||||
Average number of common shares outstanding used to calculate basic and diluted earnings per common share | 17,684 | 18,813 | |||||||
Basic and diluted earnings per share | $ | 0.08 | $ | 0.09 |
COMPREHENSIVE_INCOMELOSS
COMPREHENSIVE INCOME/LOSS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Comprehensive Incomeloss | |||||||||||||||||
Comprehensive Income/Loss | 3. 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. | |||||||||||||||||
The components of accumulated other comprehensive loss included in shareholders’ equity are as follows: | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Net unrealized gains on securities available for sale | $ | 1,065 | $ | 668 | |||||||||||||
Tax effect | (364 | ) | (226 | ) | |||||||||||||
Net-of-tax amount | 701 | 442 | |||||||||||||||
Net unrealized losses on securities transferred from available-for-sale to held-to-maturity | (1,863 | ) | (1,787 | ) | |||||||||||||
Tax effect | 643 | 617 | |||||||||||||||
Net-of-tax amount | (1,220 | ) | (1,170 | ) | |||||||||||||
Fair value of derivatives used for cash flow hedges | (8,377 | ) | (5,739 | ) | |||||||||||||
Tax effect | 2,848 | 1,951 | |||||||||||||||
Net-of-tax amount | (5,529 | ) | (3,788 | ) | |||||||||||||
Unrecognized deferred loss pertaining to defined benefit plan | (4,515 | ) | (4,484 | ) | |||||||||||||
Tax effect | 1,535 | 1,525 | |||||||||||||||
Net-of-tax amount | (2,980 | ) | (2,959 | ) | |||||||||||||
Accumulated other comprehensive loss | $ | (9,028 | ) | $ | (7,475 | ) | |||||||||||
The following table presents changes in accumulated other loss for the periods ended March 31, 2015 and 2014 by component: | |||||||||||||||||
Securities | Derivatives | Defined Benefit Plans | Accumulated Other Comprehensive Loss | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2013 | $ | (2,706 | ) | $ | 1,158 | $ | (1,427 | ) | $ | (2,975 | ) | ||||||
Current-period other comprehensive income (loss) | 826 | (1,547 | ) | (4 | ) | (725 | ) | ||||||||||
Balance at March 31, 2014 | $ | (1,880 | ) | $ | (389 | ) | $ | (1,431 | ) | $ | (3,700 | ) | |||||
Balance at December 31, 2014 | $ | (728 | ) | $ | (3,788 | ) | $ | (2,959 | ) | $ | (7,475 | ) | |||||
Current-period other comprehensive income (loss) | 209 | (1,741 | ) | (21 | ) | (1,553 | ) | ||||||||||
Balance at March 31, 2015 | $ | (519 | ) | $ | (5,529 | ) | $ | (2,980 | ) | $ | (9,028 | ) |
SECURITIES
SECURITIES | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||
SECURITIES | 4. SECURITIES | ||||||||||||||||||||||||||||||||
Securities available for sale and held to maturity are summarized as follows: | |||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 166,048 | $ | 474 | $ | (445 | ) | $ | 166,077 | ||||||||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 8,819 | — | (41 | ) | 8,778 | ||||||||||||||||||||||||||||
Corporate bonds | 23,433 | 505 | (5 | ) | 23,933 | ||||||||||||||||||||||||||||
State and municipal bonds | 12,485 | 369 | — | 12,854 | |||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 14,100 | 79 | (24 | ) | 14,155 | ||||||||||||||||||||||||||||
Mutual funds | 6,331 | 34 | (119 | ) | 6,246 | ||||||||||||||||||||||||||||
Common and preferred stock | 1,309 | 239 | — | 1,548 | |||||||||||||||||||||||||||||
Total available for sale securities | 232,525 | 1,700 | (634 | ) | 233,591 | ||||||||||||||||||||||||||||
Held to maturity securities: | |||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 160,526 | $ | 3,064 | $ | (487 | ) | $ | 163,103 | ||||||||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 40,939 | 161 | (615 | ) | 40,485 | ||||||||||||||||||||||||||||
Corporate bonds | 24,556 | 220 | (44 | ) | 24,732 | ||||||||||||||||||||||||||||
State and municipal bonds | 7,268 | 72 | (94 | ) | 7,246 | ||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 33,429 | 449 | (449 | ) | 33,429 | ||||||||||||||||||||||||||||
Total held to maturity securities | 266,718 | 3,966 | (1,689 | ) | 268,995 | ||||||||||||||||||||||||||||
Total | $ | 499,243 | $ | 5,666 | $ | (2,323 | ) | $ | 502,586 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
U.S. government-sponsored and guaranteed mortgage-backed securities are collateralized by both residential and multifamily loans. | |||||||||||||||||||||||||||||||||
Our repurchase agreements and advances from the Federal Home Loan Bank of Boston (“FHLBB”) are collateralized by government-sponsored enterprise obligations and certain mortgage-backed securities (see Note 7). | |||||||||||||||||||||||||||||||||
The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2015, by maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or repay obligations. | |||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 5,041 | $ | 5,107 | $ | — | $ | — | |||||||||||||||||||||||||
Due after five years through ten years | 17,215 | 17,196 | 46,420 | 46,242 | |||||||||||||||||||||||||||||
Due after ten years | 152,611 | 152,552 | 155,045 | 157,346 | |||||||||||||||||||||||||||||
Total | $ | 174,867 | $ | 174,855 | $ | 201,465 | $ | 203,588 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,651 | $ | 1,665 | $ | 379 | $ | 380 | |||||||||||||||||||||||||
Due after one year through five years | 40,386 | 41,083 | 19,845 | 19,811 | |||||||||||||||||||||||||||||
Due after five years through ten years | 7,795 | 7,989 | 40,809 | 41,081 | |||||||||||||||||||||||||||||
Due after ten years | 186 | 205 | 4,220 | 4,135 | |||||||||||||||||||||||||||||
Total | $ | 50,018 | $ | 50,942 | $ | 65,253 | $ | 65,407 | |||||||||||||||||||||||||
Gross realized gains and losses on sales of securities available for sale for the three months ended March 31, 2015 and 2014 are as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Gross gains realized | $ | 887 | $ | 193 | |||||||||||||||||||||||||||||
Gross losses realized | (70 | ) | (164 | ) | |||||||||||||||||||||||||||||
Net gain realized | $ | 817 | $ | 29 | |||||||||||||||||||||||||||||
Proceeds from the sale of securities available for sale amounted to $53.0 million and $13.0 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||||||||||
The tax provision applicable to net realized gains and losses was $281,000 and $9,000 for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||||||||||
Information pertaining to securities with gross unrealized losses at March 31, 2015, and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: | |||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
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 | $ | 349 | $ | 68,427 | $ | 96 | $ | 10,988 | |||||||||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 33 | 8,114 | 8 | 664 | |||||||||||||||||||||||||||||
Corporate bonds | — | — | 5 | 1,495 | |||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 11 | 3,989 | 13 | 3,487 | |||||||||||||||||||||||||||||
Mutual funds | — | — | 119 | 1,766 | |||||||||||||||||||||||||||||
Total available for sale | 393 | 80,530 | 241 | 18,400 | |||||||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | 257 | 35,262 | 230 | 24,748 | |||||||||||||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 611 | 12,654 | 4 | 11,286 | |||||||||||||||||||||||||||||
Corporate bonds | 21 | 5,742 | 23 | 11,010 | |||||||||||||||||||||||||||||
State and municipal bonds | — | — | 94 | 4,388 | |||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | — | — | 449 | 23,558 | |||||||||||||||||||||||||||||
Total held to maturity | 889 | 53,658 | 800 | 74,990 | |||||||||||||||||||||||||||||
Total | $ | 1,282 | $ | 134,188 | $ | 1,041 | $ | 93,390 | |||||||||||||||||||||||||
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-Mar-15 | |||||||||||||||||||||||||||||||||
Less Than 12 Months | Over 12 Months | ||||||||||||||||||||||||||||||||
Number of Securities | AC Basis | Gross Loss | Depreciation from AC Basis (%) | Number of Securities | AC Basis | Gross Loss | Depreciation from AC Basis (%) | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Government sponsored mortgage-backed securities | 26 | $ | 104,295 | $ | 606 | 0.6 | % | 8 | $ | 36,062 | $ | 326 | 0.9 | % | |||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 3 | 21,412 | 644 | 3 | 3 | 11,962 | 12 | 0.1 | |||||||||||||||||||||||||
Government sponsored enterprise obligations | 2 | 4,000 | 11 | 0.3 | 6 | 27,507 | 462 | 1.7 | |||||||||||||||||||||||||
Corporate Bonds | 1 | 5,763 | 21 | 0.4 | 4 | 12,533 | 28 | 0.2 | |||||||||||||||||||||||||
State and municipal bonds | — | — | — | — | 9 | 4,482 | 94 | 2.1 | |||||||||||||||||||||||||
Mutual funds | — | — | — | — | 1 | 1,885 | 119 | 6.3 | |||||||||||||||||||||||||
$ | 135,470 | $ | 1,282 | $ | 94,431 | $ | 1,041 | ||||||||||||||||||||||||||
These unrealized losses are the result of changes in interest rates and not credit quality. Because we do not intend to sell the securities and it is more likely than not that we will not be required to sell the investments before recovery of their amortized cost basis, no declines are deemed to be other-than-temporary. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | 5. LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||
Loans consisted of the following amounts: | March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Commercial real estate | $ | 287,083 | $ | 278,405 | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 237,125 | 237,436 | |||||||||||||||||||||||
Home equity | 40,416 | 40,305 | |||||||||||||||||||||||
Commercial and industrial | 162,938 | 165,728 | |||||||||||||||||||||||
Consumer | 1,426 | 1,542 | |||||||||||||||||||||||
Total Loans | 728,988 | 723,416 | |||||||||||||||||||||||
Unearned premiums and deferred loan fees and costs, net | 1,366 | 1,270 | |||||||||||||||||||||||
Allowance for loan losses | (8,035 | ) | (7,948 | ) | |||||||||||||||||||||
$ | 722,319 | $ | 716,738 | ||||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, we purchased residential real estate loans aggregating $6.2 million and $7.5 million, respectively. None were deemed credit impaired at the time of acquisition. | |||||||||||||||||||||||||
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 unaudited 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 March 31, 2015 and December 31, 2014, we serviced loans for participants aggregating $18.7 million and $20.5 million, respectively. | |||||||||||||||||||||||||
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 collectable. 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 perform in accordance with contractual terms for a period of at least six months, reducing the concern as to the collectability of principal and interest. Loan fees 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. | |||||||||||||||||||||||||
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 (includes one-to-four family and home equity), commercial real estate, commercial and industrial, and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: trends in delinquencies and nonperforming loans; trends in volume and terms of loans; effects of changes in risk selection and 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 the periods presented for disclosure. | |||||||||||||||||||||||||
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% and we 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. Home equity loans are secured by first or second mortgages on one-to-four family owner occupied properties. | |||||||||||||||||||||||||
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, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. | |||||||||||||||||||||||||
Consumer loans – Loans in this segment are secured or 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 the scheduled payments of 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. | |||||||||||||||||||||||||
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, if any, reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. | |||||||||||||||||||||||||
An analysis of changes in the allowance for loan losses by segment for the periods ended March 31, 2015 and 2014 is as follows: | |||||||||||||||||||||||||
Commercial Real Estate | Residential Real Estate | Commercial and Industrial | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 3,549 | $ | 1,707 | $ | 2,192 | $ | 13 | $ | (2 | ) | $ | 7,459 | ||||||||||||
Provision (credit) | 140 | 119 | (172 | ) | 7 | 6 | 100 | ||||||||||||||||||
Charge-offs | — | (15 | ) | (74 | ) | (10 | ) | — | (99 | ) | |||||||||||||||
Recoveries | — | 1 | 103 | 3 | — | 107 | |||||||||||||||||||
Balance at March 31, 2014 | $ | 3,689 | $ | 1,812 | $ | 2,049 | $ | 13 | $ | 4 | $ | 7,567 | |||||||||||||
Balance at December 31, 2014 | $ | 3,705 | $ | 2,053 | $ | 2,174 | $ | 15 | $ | 1 | $ | 7,948 | |||||||||||||
Provision (credit) | 134 | (76 | ) | 247 | 11 | (16 | ) | 300 | |||||||||||||||||
Charge-offs | — | — | (212 | ) | (13 | ) | — | (225 | ) | ||||||||||||||||
Recoveries | — | 1 | 2 | 9 | — | 12 | |||||||||||||||||||
Balance at March 31, 2015 | $ | 3,839 | $ | 1,978 | $ | 2,211 | $ | 22 | $ | (15 | ) | $ | 8,035 | ||||||||||||
Further information pertaining to the allowance for loan losses by segment at March 31, 2015 and December 31, 2014 follows: | |||||||||||||||||||||||||
Commercial Real Estate | Residential Real Estate | Commercial and Industrial | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
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 | 3,839 | 1,978 | 2,211 | 22 | (15 | ) | 8,035 | ||||||||||||||||||
Total allowance for loan losses | $ | 3,839 | $ | 1,978 | $ | 2,211 | $ | 22 | $ | (15 | ) | $ | 8,035 | ||||||||||||
Loans individually evaluated and deemed impaired | $ | 3,061 | $ | 287 | $ | 4,010 | $ | — | $ | — | $ | 7,358 | |||||||||||||
Loans collectively or individually evaluated and not deemed impaired | 284,022 | 277,254 | 158,928 | 1,426 | — | 721,630 | |||||||||||||||||||
Total loans | $ | 287,083 | $ | 277,541 | $ | 162,938 | $ | 1,426 | $ | — | $ | 728,988 | |||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
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 | 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 | |||||||||||||
The following is a summary of past due and non-accrual loans by class at March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
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-Mar-15 | |||||||||||||||||||||||||
Commercial real estate | $ | 178 | $ | 142 | $ | 522 | $ | 842 | $ | — | $ | 3,211 | |||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 629 | — | 975 | 1,604 | — | 1,305 | |||||||||||||||||||
Home equity | 153 | — | 1 | 154 | — | 1 | |||||||||||||||||||
Commercial and industrial | 628 | 205 | 515 | 1,348 | — | 3,811 | |||||||||||||||||||
Consumer | 35 | 3 | — | 38 | — | 12 | |||||||||||||||||||
Total | $ | 1,623 | $ | 350 | $ | 2,013 | $ | 3,986 | $ | — | $ | 8,340 | |||||||||||||
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 | |||||||||||||
The following is a summary of impaired loans by class at March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
At March 31, 2015 | 31-Mar-15 | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | $ | 3,061 | $ | 3,661 | $ | — | $ | 3,082 | $ | — | |||||||||||||||
Residential real estate | 287 | 406 | — | 289 | — | ||||||||||||||||||||
Commercial and industrial | 4,010 | 5,015 | — | 4,223 | — | ||||||||||||||||||||
Total | 7,358 | 9,082 | — | 7,594 | — | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | ||||||||||||||||||||
Total | — | — | — | — | — | ||||||||||||||||||||
Total impaired loans | $ | 7,358 | $ | 9,082 | $ | — | $ | 7,594 | $ | — | |||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
At December 31, 2014 | 31-Mar-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 | $ | — | $ | 1,440 | $ | — | |||||||||||||||
Residential real estate | 291 | 407 | — | 224 | — | ||||||||||||||||||||
Commercial and industrial | 4,436 | 5,181 | — | 576 | — | ||||||||||||||||||||
Total | 7,831 | 9,250 | — | 2,240 | — | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | — | — | — | 13,471 | 143 | ||||||||||||||||||||
Commercial and industrial | — | — | — | 964 | 10 | ||||||||||||||||||||
Total | — | — | — | 14,435 | 153 | ||||||||||||||||||||
Total impaired loans | $ | 7,831 | $ | 9,250 | $ | — | $ | 16,675 | $ | 153 | |||||||||||||||
All interest income recognized for impaired loans during the three months ended March 31, 2014 related to performing TDR loans and was recognized on the accrual basis. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Nonperforming TDRs are shown as nonperforming assets. No loans were modified as a TDR during the three months ended March 31, 2015 or 2014. | |||||||||||||||||||||||||
A default occurs when a loan is 30 days or more past due and is within 12 months of restructuring. No TDRs defaulted during the three months ended March 31, 2015 or 2014. | |||||||||||||||||||||||||
There were $212,000 in charge-offs on TDRs during the three months ended March 31, 2015. There were no charge-offs on TDRs during the three months ended March 31, 2014. | |||||||||||||||||||||||||
Credit Quality Information | |||||||||||||||||||||||||
We utilize 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 $11.5 million and $16.8 million at March 31, 2015 and December 31, 2014, respectively. We engage an independent third party to review a significant portion of loans within these segments on a semi-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 March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
Commercial Real Estate | Residential 1-4 Family | Home Equity | Commercial and Industrial | Consumer | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Loans rated 1 – 3 | $ | 244,872 | $ | 235,820 | $ | 40,415 | $ | 136,636 | $ | 1,414 | $ | 659,157 | |||||||||||||
Loans rated 4 | 34,147 | — | — | 5,887 | — | 40,034 | |||||||||||||||||||
Loans rated 5 | 758 | — | — | 10,102 | — | 10,860 | |||||||||||||||||||
Loans rated 6 | 7,306 | 1,305 | 1 | 10,258 | 12 | 18,882 | |||||||||||||||||||
Loans rated 7 | — | — | — | 55 | — | 55 | |||||||||||||||||||
$ | 287,083 | $ | 237,125 | $ | 40,416 | $ | 162,938 | $ | 1,426 | $ | 728,988 | ||||||||||||||
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 |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
SHARE-BASED COMPENSATION | 6. SHARE-BASED COMPENSATION | ||||||||
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 March 31, 2015. | |||||||||
In May 2014, our shareholders approved a new stock-based compensation plan under which up to 516,000 shares of our common stock have been reserved for future grants of stock awards, including stock options and restricted stock, which may be granted to any officer, key employee or non-employee director of Westfield Financial. 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. | |||||||||
Restricted 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. Stock awards are recorded as unearned compensation based on the market price at the date of grant. Unearned compensation is amortized over the vesting period. At March 31, 2015, 48,560 shares had been granted under this plan. | |||||||||
Our stock award and stock option plans activity for the three months ended March 31, 2015 and 2014 is summarized below: | |||||||||
Unvested Stock Awards Outstanding | |||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||
Outstanding at December 31, 2014 | 13,000 | $ | 8.07 | ||||||
Shares granted | 48,560 | $ | 7.18 | ||||||
Outstanding at March 31, 2015 | 61,560 | $ | 7.37 | ||||||
Outstanding at December 31, 2013 | 25,720 | $ | 7.93 | ||||||
No activity | — | — | |||||||
Outstanding at March 31, 2014 | 25,720 | $ | 7.93 | ||||||
We recorded compensation cost related to the stock awards of $28,000 and $25,000 for the three months ended March 31, 2015 and 2014, respectively. |
SHORTTERM_BORROWINGS_AND_LONGT
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 7. SHORT-TERM BORROWINGS AND LONG-TERM DEBT |
We utilize short-term borrowings and long-term debt as an additional source of funds to finance our lending and investing activities and to provide liquidity for daily operations. | |
Short-term borrowings are made up of FHLBB advances with an original maturity of less than one year as well as customer repurchase agreements, which have an original maturity of one day. Short-term borrowings issued by the FHLBB were $44.5 million and $62.8 million at March 31, 2015 and December 31, 2014, respectively. There were no advances outstanding on the line of credit as of March 31, 2015. At December 31, 2014, there was a $1.8 million advance outstanding under this line. Customer repurchase agreements were $38.1 million at March 31, 2015 and $31.2 million at December 31, 2014. A customer repurchase agreement is an agreement by us to sell to and repurchase from the customer an interest in specific securities issued by or guaranteed by the U.S. government. This transaction settles immediately on a same day basis in immediately available funds. Interest paid is commensurate with other products of equal interest and credit risk. All of our customer repurchase agreements at March 31, 2015 and December 31, 2014, were held by commercial customers. In addition, we have lines of credit of $4.0 million and $50.0 million with Bankers Bank Northeast (“BBN”) and PNC Bank, respectively. The interest rates on these lines are determined and reset on a daily basis by each respective bank. There were no advances outstanding under this line of credit at March 31, 2015 or December 31, 2014. 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 of credit. | |
Long-term debt consists of FHLBB advances and customer repurchase agreements with an original maturity of one year or more. At March 31, 2015, we had $206.8 million in long-term debt with the FHLBB. This compares to $216.7 million in long-term debt with FHLBB advances and $10.0 million in securities sold under repurchase agreements with an approved broker-dealer at December 31, 2014. Long-term customer repurchase agreements were $5.8 million at March 31, 2015 and December 31, 2014, respectively. | |
During the three months ended March 31, 2015, we prepaid repurchase agreements in the amount $10.0 million and incurred a prepayment expense of $593,000. The repurchase agreements had an average cost of 2.65%. The prepayment of this repurchase agreement should result in a decrease to the cost of funds and an increase to the net interest margin. There were no such prepayments on any repurchase agreements for the three months ended December 31, 2014. | |
All FHLBB advances are collateralized by a blanket lien on our owner occupied residential real estate loans and certain mortgage-backed securities. |
PENSION_BENEFITS
PENSION BENEFITS | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
PENSION BENEFITS | 8. PENSION BENEFITS | ||||||||
The following table provides information regarding net pension benefit costs for the periods shown: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Service cost | $ | 309 | $ | 250 | |||||
Interest cost | 226 | 206 | |||||||
Expected return on assets | (284 | ) | (240 | ) | |||||
Amortization of transition asset | — | (3 | ) | ||||||
Amortization of actuarial loss | 31 | — | |||||||
Net periodic pension cost | $ | 282 | $ | 213 | |||||
We maintain a pension plan for our eligible employees. We plan to contribute to the pension plan the amount required to meet the minimum funding standards under Section 412 of the Internal Revenue Code of 1986, as amended. Additional contributions will be made as deemed appropriate by management in conjunction with the pension plan’s actuaries. We have not yet determined how much we expect to contribute to our pension plan in 2015. No contributions have been made to the plan for the three months ended March 31, 2015. The pension plan assets are invested in group annuity contracts with the Principal Financial Group, who also acts as our 401(k) plan third-party administrator. |
DERIVATIVES_AND_HEDGING_ACTIVI
DERIVATIVES AND HEDGING ACTIVITIES | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | 9. 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 loan assets and variable rate borrowings. | |||||||||||||||||||||
Fair Values of Derivative Instruments on the Balance Sheet | |||||||||||||||||||||
The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||
31-Mar-15 | Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | Other Assets | $ | — | Other Liabilities | $ | 8,377 | |||||||||||||||
Total derivatives designated as hedging instruments | $ | — | $ | 8,377 | |||||||||||||||||
31-Dec-14 | Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | Other Assets | $ | 9 | Other Liabilities | $ | 5,748 | |||||||||||||||
Total derivatives designated as hedging instruments | $ | 9 | $ | 5,748 | |||||||||||||||||
At March 31, 2015, we held no derivatives that were not 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 March 31, 2015 and December 31, 2014: | |||||||||||||||||||||
March 31, 2015 | 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 | 0.25 | % | 1.52 | % | $ | (559 | ) | |||||||||||
Forward starting interest rate swaps on FHLBB borrowings | 115,000 | 6.4 | — | 3.11 | % | (7,818 | ) | ||||||||||||||
Total cash flow hedges | $ | 155,000 | 5.5 | $ | (8,377 | ) | |||||||||||||||
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 | ) | |||||||||||||||
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, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. We assess the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. We did not recognize any hedge ineffectiveness in earnings during the three months ended March 31, 2015. | |||||||||||||||||||||
We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of six years (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). | |||||||||||||||||||||
Amounts reported in accumulated other comprehensive loss related to these derivatives will be reclassified to interest expense as interest payments are made on our rate sensitive assets/liabilities. The amount reclassified from accumulated comprehensive income into income for the effective portion of interest rate swaps was $131,000 and $46,000 during the three months ended March 31, 2015 and 2014, respectively. During the three months ended March 31, 2015 and 2014, no gains or losses were reclassified from accumulated other comprehensive loss into income for ineffectiveness on cash flow hedges. | |||||||||||||||||||||
The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated. | |||||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | $ | (2,769 | ) | $ | (2,390 | ) | |||||||||||||||
Credit-risk-related Contingent Features | |||||||||||||||||||||
By using derivative financial instruments, we expose ourselves to credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative is negative, we owe the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that we believe to be creditworthy and by limiting the amount of exposure to each counterparty. | |||||||||||||||||||||
We have agreements with our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as well capitalized, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements. Certain of our agreements with our derivative counterparties contain provisions where if a formal administrative action by a federal or state regulatory agency occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. | |||||||||||||||||||||
As of March 31, 2015, the termination value of derivatives in a net liability position related to these agreements, which includes accrued interest but excludes any adjustment for nonperformance risk, was $8.5 million. As of March 31, 2015, we have minimum collateral posting thresholds with certain of our derivative counterparties and have no collateral posted against our obligations under these agreements. If we had breached any of these provisions at March 31, 2015, we could have been required to settle our obligations under the agreements at the termination value. |
FAIR_VALUE_OF_ASSETS_AND_LIABI
FAIR VALUE OF ASSETS AND LIABILITIES | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
FAIR VALUE OF ASSETS AND LIABILITIES | 10. FAIR VALUE OF ASSETS AND LIABILITIES | ||||||||||||||||||||
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. | |||||||||||||||||||||
Fair Value Hierarchy - We group our assets and liabilities that are measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. | |||||||||||||||||||||
Level 1 – Valuation is based on quoted prices in active markets for identical assets. Level 1 assets generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. | |||||||||||||||||||||
Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or 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 or 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. 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. | |||||||||||||||||||||
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. | |||||||||||||||||||||
Securities – Fair value of securities are primarily measured using unadjusted information from an independent pricing service. 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. | |||||||||||||||||||||
Federal Home Loan Bank and other restricted stock - These investments are carried at cost which is their estimated redemption value. | |||||||||||||||||||||
Loans receivable – For variable-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 loans) 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 nonperforming 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 variable-rate, 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 - Fair values for off-balance sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the term and credit risk. 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 are summarized below: | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | (In thousands) | ||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Government-sponsored residential mortgage-backed securities | $ | — | $ | 166,077 | $ | — | $ | 166,077 | |||||||||||||
U.S. government guaranteed residential mortgage-backed securities | — | 8,778 | — | 8,778 | |||||||||||||||||
Corporate bonds | — | 23,933 | — | 23,933 | |||||||||||||||||
State and municipal bonds | — | 12,854 | — | 12,854 | |||||||||||||||||
Government-sponsored enterprise obligations | — | 14,155 | — | 14,155 | |||||||||||||||||
Mutual funds | 6,246 | — | — | 6,246 | |||||||||||||||||
Common and preferred stock | 1,548 | — | — | 1,548 | |||||||||||||||||
Total assets | $ | 7,794 | $ | 225,797 | $ | — | $ | 233,591 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps, net | $ | — | $ | 8,377 | $ | — | $ | 8,377 | |||||||||||||
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 | |||||||||||||
Also, we may be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets at March 31, 2015 and 2015. Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at March 31, 2015 and 2014. | |||||||||||||||||||||
At March 31, 2015 | Three Months Ended March 31, 2015 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Losses | |||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 2,237 | $ | (212 | ) | ||||||||||||
Total assets | $ | — | $ | — | $ | 2,237 | $ | (212 | ) | ||||||||||||
At March 31, 2014 | Three Months Ended March 31, 2014 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Losses | |||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 96 | $ | (15 | ) | ||||||||||||
Total assets | $ | — | $ | — | $ | 96 | $ | (15 | ) | ||||||||||||
The amount of impaired loans represents the carrying value and related write-down and valuation allowance of impaired loans for which adjustments are based on the estimated fair value of the underlying collateral. The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on real estate appraisals performed by independent licensed or certified appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management will discount appraisals as deemed necessary based on the date of the appraisal and new information deemed relevant to the valuation. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The resulting losses were recognized in earnings through the provision for loan losses. Impaired loans with adjustments resulting from discounted cash flows or without a specific reserve are not included in this disclosure. | |||||||||||||||||||||
There were no transfers to or from Level 1 and 2 during the three months ended March 31, 2015 and 2014. We did not measure any liabilities at fair value on a recurring or non-recurring basis on the consolidated balance sheets. | |||||||||||||||||||||
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. The estimated fair values of our financial instruments are as follows: | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 12,719 | $ | 12,719 | $ | — | $ | — | $ | 12,719 | |||||||||||
Securities available for sale | 233,591 | 7,794 | 225,797 | — | 233,591 | ||||||||||||||||
Securities held to maturity | 266,718 | — | 268,995 | — | 268,995 | ||||||||||||||||
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | — | — | 14,934 | 14,934 | ||||||||||||||||
Loans - net | 722,319 | — | — | 728,377 | 728,377 | ||||||||||||||||
Accrued interest receivable | 4,151 | — | — | 4,151 | 4,151 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | 873,303 | — | — | 874,633 | 874,633 | ||||||||||||||||
Short-term borrowings | 82,625 | — | 82,626 | — | 82,626 | ||||||||||||||||
Long-term debt | 212,637 | — | 216,837 | — | 216,837 | ||||||||||||||||
Accrued interest payable | 467 | — | — | 467 | 467 | ||||||||||||||||
Derivative liabilities | 8,377 | — | 8,377 | — | 8,377 | ||||||||||||||||
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 |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Pronouncements | |
RECENT ACCOUNTING PRONOUNCEMENTS | 11. 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 are effective for annual and interim periods beginning after December 15, 2014. We do not expect the application of this guidance to have a material impact on our consolidated financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations – Westfield Financial, Inc. (“Westfield Financial,” “we” or “us”) is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank (the “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 unaudited consolidated financial statements include the accounts of Westfield Financial, the Bank, Elm Street Securities Corporation, WB Real Estate Holdings, LLC and WFD Securities Corporation. All material intercompany balances and transactions have been eliminated in consolidation. |
Estimates | Estimates – The preparation of unaudited 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, the disclosure of contingent assets and liabilities and the reported amounts of income and expenses for both at the date of the unaudited consolidated financial statements. 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. |
Basis of Presentation | Basis of Presentation – In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of our financial condition as of March 31, 2015, and the results of operations, changes in shareholders’ equity and cash flows for the interim periods presented. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results of operations for the year ending December 31, 2015. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. |
These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2014, included in our Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Annual Report”). | |
Reclassifications | Reclassifications - Amounts in the prior period financial statements are reclassified when necessary to conform to the current year presentation. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share Tables | |||||||||
EARNINGS PER SHARE | Earnings per common share for the three months ended March 31, 2015 and 2014 have been computed based on the following: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In thousands, except per share data) | |||||||||
Net income applicable to common stock | $ | 1,338 | $ | 1,648 | |||||
Average number of common shares issued | 18,725 | 19,933 | |||||||
Less: Average unallocated ESOP Shares | (1,041 | ) | (1,120 | ) | |||||
Average number of common shares outstanding used to calculate basic and diluted earnings per common share | 17,684 | 18,813 | |||||||
Basic and diluted earnings per share | $ | 0.08 | $ | 0.09 |
COMPRENSIVE_INCOMELOSS_Tables
COMPRENSIVE INCOME/LOSS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Comprensive Incomeloss Tables | |||||||||||||||||
Components of accumulated other comprehensive loss in sharesholders equity | The components of accumulated other comprehensive loss included in shareholders’ equity are as follows: | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Net unrealized gains on securities available for sale | $ | 1,065 | $ | 668 | |||||||||||||
Tax effect | (364 | ) | (226 | ) | |||||||||||||
Net-of-tax amount | 701 | 442 | |||||||||||||||
Net unrealized losses on securities transferred from available-for-sale to held-to-maturity | (1,863 | ) | (1,787 | ) | |||||||||||||
Tax effect | 643 | 617 | |||||||||||||||
Net-of-tax amount | (1,220 | ) | (1,170 | ) | |||||||||||||
Fair value of derivatives used for cash flow hedges | (8,377 | ) | (5,739 | ) | |||||||||||||
Tax effect | 2,848 | 1,951 | |||||||||||||||
Net-of-tax amount | (5,529 | ) | (3,788 | ) | |||||||||||||
Unrecognized deferred loss pertaining to defined benefit plan | (4,515 | ) | (4,484 | ) | |||||||||||||
Tax effect | 1,535 | 1,525 | |||||||||||||||
Net-of-tax amount | (2,980 | ) | (2,959 | ) | |||||||||||||
Accumulated other comprehensive loss | $ | (9,028 | ) | $ | (7,475 | ) | |||||||||||
Changes in other comprehensive (loss) income | The following table presents changes in accumulated other loss for the periods ended March 31, 2015 and 2014 by component: | ||||||||||||||||
Securities | Derivatives | Defined Benefit Plans | Accumulated Other Comprehensive Loss | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2013 | $ | (2,706 | ) | $ | 1,158 | $ | (1,427 | ) | $ | (2,975 | ) | ||||||
Current-period other comprehensive income (loss) | 826 | (1,547 | ) | (4 | ) | (725 | ) | ||||||||||
Balance at March 31, 2014 | $ | (1,880 | ) | $ | (389 | ) | $ | (1,431 | ) | $ | (3,700 | ) | |||||
Balance at December 31, 2014 | $ | (728 | ) | $ | (3,788 | ) | $ | (2,959 | ) | $ | (7,475 | ) | |||||
Current-period other comprehensive income (loss) | 209 | (1,741 | ) | (21 | ) | (1,553 | ) | ||||||||||
Balance at March 31, 2015 | $ | (519 | ) | $ | (5,529 | ) | $ | (2,980 | ) | $ | (9,028 | ) |
SECURITIES_Tables
SECURITIES (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of securities available for sale and held to maturity | Securities available for sale and held to maturity are summarized as follows: | ||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 166,048 | $ | 474 | $ | (445 | ) | $ | 166,077 | ||||||||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 8,819 | — | (41 | ) | 8,778 | ||||||||||||||||||||||||||||
Corporate bonds | 23,433 | 505 | (5 | ) | 23,933 | ||||||||||||||||||||||||||||
State and municipal bonds | 12,485 | 369 | — | 12,854 | |||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 14,100 | 79 | (24 | ) | 14,155 | ||||||||||||||||||||||||||||
Mutual funds | 6,331 | 34 | (119 | ) | 6,246 | ||||||||||||||||||||||||||||
Common and preferred stock | 1,309 | 239 | — | 1,548 | |||||||||||||||||||||||||||||
Total available for sale securities | 232,525 | 1,700 | (634 | ) | 233,591 | ||||||||||||||||||||||||||||
Held to maturity securities: | |||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | $ | 160,526 | $ | 3,064 | $ | (487 | ) | $ | 163,103 | ||||||||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 40,939 | 161 | (615 | ) | 40,485 | ||||||||||||||||||||||||||||
Corporate bonds | 24,556 | 220 | (44 | ) | 24,732 | ||||||||||||||||||||||||||||
State and municipal bonds | 7,268 | 72 | (94 | ) | 7,246 | ||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 33,429 | 449 | (449 | ) | 33,429 | ||||||||||||||||||||||||||||
Total held to maturity securities | 266,718 | 3,966 | (1,689 | ) | 268,995 | ||||||||||||||||||||||||||||
Total | $ | 499,243 | $ | 5,666 | $ | (2,323 | ) | $ | 502,586 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
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 available for sale and held to maturity at March 31, 2015, by maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or repay obligations. | ||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 5,041 | $ | 5,107 | $ | — | $ | — | |||||||||||||||||||||||||
Due after five years through ten years | 17,215 | 17,196 | 46,420 | 46,242 | |||||||||||||||||||||||||||||
Due after ten years | 152,611 | 152,552 | 155,045 | 157,346 | |||||||||||||||||||||||||||||
Total | $ | 174,867 | $ | 174,855 | $ | 201,465 | $ | 203,588 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,651 | $ | 1,665 | $ | 379 | $ | 380 | |||||||||||||||||||||||||
Due after one year through five years | 40,386 | 41,083 | 19,845 | 19,811 | |||||||||||||||||||||||||||||
Due after five years through ten years | 7,795 | 7,989 | 40,809 | 41,081 | |||||||||||||||||||||||||||||
Due after ten years | 186 | 205 | 4,220 | 4,135 | |||||||||||||||||||||||||||||
Total | $ | 50,018 | $ | 50,942 | $ | 65,253 | $ | 65,407 | |||||||||||||||||||||||||
Gross Realized Gains and Losses on Sales of Securities Available for Sale | Gross realized gains and losses on sales of securities available for sale for the three months ended March 31, 2015 and 2014 are as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Gross gains realized | $ | 887 | $ | 193 | |||||||||||||||||||||||||||||
Gross losses realized | (70 | ) | (164 | ) | |||||||||||||||||||||||||||||
Net gain realized | $ | 817 | $ | 29 | |||||||||||||||||||||||||||||
Securities with Gross Unrealized Losses in Continuous Loss Position | Information pertaining to securities with gross unrealized losses at March 31, 2015, and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: | ||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
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 | $ | 349 | $ | 68,427 | $ | 96 | $ | 10,988 | |||||||||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 33 | 8,114 | 8 | 664 | |||||||||||||||||||||||||||||
Corporate bonds | — | — | 5 | 1,495 | |||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | 11 | 3,989 | 13 | 3,487 | |||||||||||||||||||||||||||||
Mutual funds | — | — | 119 | 1,766 | |||||||||||||||||||||||||||||
Total available for sale | 393 | 80,530 | 241 | 18,400 | |||||||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||
Government-sponsored mortgage-backed securities | 257 | 35,262 | 230 | 24,748 | |||||||||||||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 611 | 12,654 | 4 | 11,286 | |||||||||||||||||||||||||||||
Corporate bonds | 21 | 5,742 | 23 | 11,010 | |||||||||||||||||||||||||||||
State and municipal bonds | — | — | 94 | 4,388 | |||||||||||||||||||||||||||||
Government-sponsored enterprise obligations | — | — | 449 | 23,558 | |||||||||||||||||||||||||||||
Total held to maturity | 889 | 53,658 | 800 | 74,990 | |||||||||||||||||||||||||||||
Total | $ | 1,282 | $ | 134,188 | $ | 1,041 | $ | 93,390 | |||||||||||||||||||||||||
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-Mar-15 | |||||||||||||||||||||||||||||||||
Less Than 12 Months | Over 12 Months | ||||||||||||||||||||||||||||||||
Number of Securities | AC Basis | Gross Loss | Depreciation from AC Basis (%) | Number of Securities | AC Basis | Gross Loss | Depreciation from AC Basis (%) | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Government sponsored mortgage-backed securities | 26 | $ | 104,295 | $ | 606 | 0.6 | % | 8 | $ | 36,062 | $ | 326 | 0.9 | % | |||||||||||||||||||
U.S. government guaranteed mortgage-backed securities | 3 | 21,412 | 644 | 3 | 3 | 11,962 | 12 | 0.1 | |||||||||||||||||||||||||
Government sponsored enterprise obligations | 2 | 4,000 | 11 | 0.3 | 6 | 27,507 | 462 | 1.7 | |||||||||||||||||||||||||
Corporate Bonds | 1 | 5,763 | 21 | 0.4 | 4 | 12,533 | 28 | 0.2 | |||||||||||||||||||||||||
State and municipal bonds | — | — | — | — | 9 | 4,482 | 94 | 2.1 | |||||||||||||||||||||||||
Mutual funds | — | — | — | — | 1 | 1,885 | 119 | 6.3 | |||||||||||||||||||||||||
$ | 135,470 | $ | 1,282 | $ | 94,431 | $ | 1,041 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||
Schedule of loans | Loans consisted of the following amounts: | March 31, | December 31, | ||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Commercial real estate | $ | 287,083 | $ | 278,405 | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 237,125 | 237,436 | |||||||||||||||||||||||
Home equity | 40,416 | 40,305 | |||||||||||||||||||||||
Commercial and industrial | 162,938 | 165,728 | |||||||||||||||||||||||
Consumer | 1,426 | 1,542 | |||||||||||||||||||||||
Total Loans | 728,988 | 723,416 | |||||||||||||||||||||||
Unearned premiums and deferred loan fees and costs, net | 1,366 | 1,270 | |||||||||||||||||||||||
Allowance for loan losses | (8,035 | ) | (7,948 | ) | |||||||||||||||||||||
$ | 722,319 | $ | 716,738 | ||||||||||||||||||||||
Analysis of changes in allowance for loan losses by segment | An analysis of changes in the allowance for loan losses by segment for the periods ended March 31, 2015 and 2014 is as follows: | ||||||||||||||||||||||||
Commercial Real Estate | Residential Real Estate | Commercial and Industrial | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 3,549 | $ | 1,707 | $ | 2,192 | $ | 13 | $ | (2 | ) | $ | 7,459 | ||||||||||||
Provision (credit) | 140 | 119 | (172 | ) | 7 | 6 | 100 | ||||||||||||||||||
Charge-offs | — | (15 | ) | (74 | ) | (10 | ) | — | (99 | ) | |||||||||||||||
Recoveries | — | 1 | 103 | 3 | — | 107 | |||||||||||||||||||
Balance at March 31, 2014 | $ | 3,689 | $ | 1,812 | $ | 2,049 | $ | 13 | $ | 4 | $ | 7,567 | |||||||||||||
Balance at December 31, 2014 | $ | 3,705 | $ | 2,053 | $ | 2,174 | $ | 15 | $ | 1 | $ | 7,948 | |||||||||||||
Provision (credit) | 134 | (76 | ) | 247 | 11 | (16 | ) | 300 | |||||||||||||||||
Charge-offs | — | — | (212 | ) | (13 | ) | — | (225 | ) | ||||||||||||||||
Recoveries | — | 1 | 2 | 9 | — | 12 | |||||||||||||||||||
Balance at March 31, 2015 | $ | 3,839 | $ | 1,978 | $ | 2,211 | $ | 22 | $ | (15 | ) | $ | 8,035 | ||||||||||||
Information pertaining to the allowance for loan losses by segment | Further information pertaining to the allowance for loan losses by segment at March 31, 2015 and December 31, 2014 follows: | ||||||||||||||||||||||||
Commercial Real Estate | Residential Real Estate | Commercial and Industrial | Consumer | Unallocated | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
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 | 3,839 | 1,978 | 2,211 | 22 | (15 | ) | 8,035 | ||||||||||||||||||
Total allowance for loan losses | $ | 3,839 | $ | 1,978 | $ | 2,211 | $ | 22 | $ | (15 | ) | $ | 8,035 | ||||||||||||
Loans individually evaluated and deemed impaired | $ | 3,061 | $ | 287 | $ | 4,010 | $ | — | $ | — | $ | 7,358 | |||||||||||||
Loans collectively or individually evaluated and not deemed impaired | 284,022 | 277,254 | 158,928 | 1,426 | — | 721,630 | |||||||||||||||||||
Total loans | $ | 287,083 | $ | 277,541 | $ | 162,938 | $ | 1,426 | $ | — | $ | 728,988 | |||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
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 | 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 | |||||||||||||
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 March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
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-Mar-15 | |||||||||||||||||||||||||
Commercial real estate | $ | 178 | $ | 142 | $ | 522 | $ | 842 | $ | — | $ | 3,211 | |||||||||||||
Residential real estate: | |||||||||||||||||||||||||
Residential | 629 | — | 975 | 1,604 | — | 1,305 | |||||||||||||||||||
Home equity | 153 | — | 1 | 154 | — | 1 | |||||||||||||||||||
Commercial and industrial | 628 | 205 | 515 | 1,348 | — | 3,811 | |||||||||||||||||||
Consumer | 35 | 3 | — | 38 | — | 12 | |||||||||||||||||||
Total | $ | 1,623 | $ | 350 | $ | 2,013 | $ | 3,986 | $ | — | $ | 8,340 | |||||||||||||
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 | |||||||||||||
Summary of impaired loans by class | The following is a summary of impaired loans by class at March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
At March 31, 2015 | 31-Mar-15 | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | $ | 3,061 | $ | 3,661 | $ | — | $ | 3,082 | $ | — | |||||||||||||||
Residential real estate | 287 | 406 | — | 289 | — | ||||||||||||||||||||
Commercial and industrial | 4,010 | 5,015 | — | 4,223 | — | ||||||||||||||||||||
Total | 7,358 | 9,082 | — | 7,594 | — | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | ||||||||||||||||||||
Total | — | — | — | — | — | ||||||||||||||||||||
Total impaired loans | $ | 7,358 | $ | 9,082 | $ | — | $ | 7,594 | $ | — | |||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
At December 31, 2014 | 31-Mar-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 | $ | — | $ | 1,440 | $ | — | |||||||||||||||
Residential real estate | 291 | 407 | — | 224 | — | ||||||||||||||||||||
Commercial and industrial | 4,436 | 5,181 | — | 576 | — | ||||||||||||||||||||
Total | 7,831 | 9,250 | — | 2,240 | — | ||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||
Commercial real estate | — | — | — | 13,471 | 143 | ||||||||||||||||||||
Commercial and industrial | — | — | — | 964 | 10 | ||||||||||||||||||||
Total | — | — | — | 14,435 | 153 | ||||||||||||||||||||
Total impaired loans | $ | 7,831 | $ | 9,250 | $ | — | $ | 16,675 | $ | 153 | |||||||||||||||
Loans by Risk Rating | The following table presents our loans by risk rating at March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
Commercial Real Estate | Residential 1-4 Family | Home Equity | Commercial and Industrial | Consumer | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Loans rated 1 – 3 | $ | 244,872 | $ | 235,820 | $ | 40,415 | $ | 136,636 | $ | 1,414 | $ | 659,157 | |||||||||||||
Loans rated 4 | 34,147 | — | — | 5,887 | — | 40,034 | |||||||||||||||||||
Loans rated 5 | 758 | — | — | 10,102 | — | 10,860 | |||||||||||||||||||
Loans rated 6 | 7,306 | 1,305 | 1 | 10,258 | 12 | 18,882 | |||||||||||||||||||
Loans rated 7 | — | — | — | 55 | — | 55 | |||||||||||||||||||
$ | 287,083 | $ | 237,125 | $ | 40,416 | $ | 162,938 | $ | 1,426 | $ | 728,988 | ||||||||||||||
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 |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Schedule of the status of stock options | Our stock award and stock option plans activity for the three months ended March 31, 2015 and 2014 is summarized below: | ||||||||
Unvested Stock Awards Outstanding | |||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||
Outstanding at December 31, 2014 | 13,000 | $ | 8.07 | ||||||
Shares granted | 48,560 | $ | 7.18 | ||||||
Outstanding at March 31, 2015 | 61,560 | $ | 7.37 | ||||||
Outstanding at December 31, 2013 | 25,720 | $ | 7.93 | ||||||
No activity | — | — | |||||||
Outstanding at March 31, 2014 | 25,720 | $ | 7.93 |
PENSION_BENEFITS_Tables
PENSION BENEFITS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Schedule of net pension benefit costs | The following table provides information regarding net pension benefit costs for the periods shown: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Service cost | $ | 309 | $ | 250 | |||||
Interest cost | 226 | 206 | |||||||
Expected return on assets | (284 | ) | (240 | ) | |||||
Amortization of transition asset | — | (3 | ) | ||||||
Amortization of actuarial loss | 31 | — | |||||||
Net periodic pension cost | $ | 282 | $ | 213 |
DERIVATIVES_AND_HEDGING_ACTIVI1
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
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 March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
31-Mar-15 | Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | Other Assets | $ | — | Other Liabilities | $ | 8,377 | |||||||||||||||
Total derivatives designated as hedging instruments | $ | — | $ | 8,377 | |||||||||||||||||
31-Dec-14 | Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | Other Assets | $ | 9 | Other Liabilities | $ | 5,748 | |||||||||||||||
Total derivatives designated as hedging instruments | $ | 9 | $ | 5,748 | |||||||||||||||||
Schedule of information about cash flow hedges | The following table presents information about our cash flow hedges at March 31, 2015 and December 31, 2014: | ||||||||||||||||||||
March 31, 2015 | 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 | 0.25 | % | 1.52 | % | $ | (559 | ) | |||||||||||
Forward starting interest rate swaps on FHLBB borrowings | 115,000 | 6.4 | — | 3.11 | % | (7,818 | ) | ||||||||||||||
Total cash flow hedges | $ | 155,000 | 5.5 | $ | (8,377 | ) | |||||||||||||||
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 | ) | |||||||||||||||
Schedule of the pre-tax net gains (losses) of cash flow hedges | The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated. | ||||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest rate swaps | $ | (2,769 | ) | $ | (2,390 | ) |
FAIR_VALUE_OF_ASSETS_AND_LIABI1
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
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-Mar-15 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | (In thousands) | ||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Government-sponsored residential mortgage-backed securities | $ | — | $ | 166,077 | $ | — | $ | 166,077 | |||||||||||||
U.S. government guaranteed residential mortgage-backed securities | — | 8,778 | — | 8,778 | |||||||||||||||||
Corporate bonds | — | 23,933 | — | 23,933 | |||||||||||||||||
State and municipal bonds | — | 12,854 | — | 12,854 | |||||||||||||||||
Government-sponsored enterprise obligations | — | 14,155 | — | 14,155 | |||||||||||||||||
Mutual funds | 6,246 | — | — | 6,246 | |||||||||||||||||
Common and preferred stock | 1,548 | — | — | 1,548 | |||||||||||||||||
Total assets | $ | 7,794 | $ | 225,797 | $ | — | $ | 233,591 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps, net | $ | — | $ | 8,377 | $ | — | $ | 8,377 | |||||||||||||
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 | |||||||||||||
Schedule of assets measured at fair value on non-recurring basis | The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets at March 31, 2015 and 2015. Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at March 31, 2015 and 2014. | ||||||||||||||||||||
At March 31, 2015 | Three Months Ended March 31, 2015 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Losses | |||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 2,237 | $ | (212 | ) | ||||||||||||
Total assets | $ | — | $ | — | $ | 2,237 | $ | (212 | ) | ||||||||||||
At March 31, 2014 | Three Months Ended March 31, 2014 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Losses | |||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 96 | $ | (15 | ) | ||||||||||||
Total assets | $ | — | $ | — | $ | 96 | $ | (15 | ) | ||||||||||||
Summary of fair values of financial instruments | The estimated fair values of our financial instruments are as follows: | ||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 12,719 | $ | 12,719 | $ | — | $ | — | $ | 12,719 | |||||||||||
Securities available for sale | 233,591 | 7,794 | 225,797 | — | 233,591 | ||||||||||||||||
Securities held to maturity | 266,718 | — | 268,995 | — | 268,995 | ||||||||||||||||
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | — | — | 14,934 | 14,934 | ||||||||||||||||
Loans - net | 722,319 | — | — | 728,377 | 728,377 | ||||||||||||||||
Accrued interest receivable | 4,151 | — | — | 4,151 | 4,151 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | 873,303 | — | — | 874,633 | 874,633 | ||||||||||||||||
Short-term borrowings | 82,625 | — | 82,626 | — | 82,626 | ||||||||||||||||
Long-term debt | 212,637 | — | 216,837 | — | 216,837 | ||||||||||||||||
Accrued interest payable | 467 | — | — | 467 | 467 | ||||||||||||||||
Derivative liabilities | 8,377 | — | 8,377 | — | 8,377 | ||||||||||||||||
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 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (Massachusetts and Granby and Enfield, Connecticut [Member]) | Mar. 31, 2015 |
Number | |
Massachusetts and Granby and Enfield, Connecticut [Member] | |
Number of banking offices in which bank operates | 13 |
EARNINGS_PER_SHARE_DETAILS
EARNINGS PER SHARE (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share Details | ||
Net income applicable to common stock | $1,338 | $1,648 |
Average number of common shares issued | 18,725 | 19,933 |
Less: Average unallocated ESOP Shares | -1,041 | -1,120 |
Average number of common shares outstanding used to calculate basic earnings per common share | 17,684 | 18,813 |
Basic and diluted earnings per share (in dollars per share) | $0.08 | $0.09 |
COMPREHENSIVE_INCOMELOSS_Detai
COMPREHENSIVE INCOME/LOSS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), net of tax | ($9,028) | ($7,475) | ($3,700) | ($2,975) |
Accumulated Net Unrealized Gains (Losses) on Securities AFS [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) before tax | 1,065 | 668 | ||
Tax effect | -364 | -226 | ||
Accumulated other comprehensive income (loss), net of tax | 701 | 442 | ||
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 | -1,863 | -1,787 | ||
Tax effect | 643 | 617 | ||
Accumulated other comprehensive income (loss), net of tax | -1,220 | -1,170 | ||
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 | -8,377 | -5,739 | ||
Tax effect | 2,848 | 1,951 | ||
Accumulated other comprehensive income (loss), net of tax | -5,529 | -3,788 | -389 | 1,158 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) before tax | -4,515 | -4,484 | ||
Tax effect | 1,535 | 1,525 | ||
Accumulated other comprehensive income (loss), net of tax | ($2,980) | ($2,959) | ($1,431) | ($1,427) |
COMPREHENSIVE_INCOMELOSS_Detai1
COMPREHENSIVE INCOME/LOSS (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | ($7,475) | ($2,975) |
Current-period other comprehensive income (loss) | -1,553 | -725 |
Ending Balance | -9,028 | -3,700 |
Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | -728 | -2,706 |
Current-period other comprehensive income (loss) | 209 | 826 |
Ending Balance | -519 | -1,880 |
Accumulated Fair Value of Derivatives Used for Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | -3,788 | 1,158 |
Current-period other comprehensive income (loss) | -1,741 | -1,547 |
Ending Balance | -5,529 | -389 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | -2,959 | -1,427 |
Current-period other comprehensive income (loss) | -21 | -4 |
Ending Balance | ($2,980) | ($1,431) |
SECURITIES_Details_Narrative
SECURITIES (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from the sale of available for sale securities | $53,000 | $13,000 |
Provision of tax applicable to net realized gains and losses on sale of securities | $281 | $9 |
SECURITIES_Details
SECURITIES (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Available-For-Sale Securities | ||
Amortized Cost | $232,525 | $215,082 |
Gross Unrealized Gains | 1,700 | 1,831 |
Gross Unrealized Losses | -634 | -1,163 |
Fair Value | 233,591 | 215,750 |
Held-to-maturity securities | ||
Amortized Cost | 266,718 | 278,080 |
Gross Unrealized Gains | 3,966 | 2,810 |
Gross Unrealized Losses | -1,689 | -3,254 |
Fair Value | 268,995 | 277,636 |
Total | ||
Amortized Cost | 499,243 | 493,162 |
Gross Unrealized Gains | 5,666 | 4,641 |
Gross Unrealized Losses | -2,323 | -4,417 |
Fair Value | 502,586 | 493,386 |
Government-sponsored Mortgage-backed Securities [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 166,048 | 139,637 |
Gross Unrealized Gains | 474 | 423 |
Gross Unrealized Losses | -445 | -847 |
Fair Value | 166,077 | 139,213 |
Held-to-maturity securities | ||
Amortized Cost | 160,526 | 164,001 |
Gross Unrealized Gains | 3,064 | 2,384 |
Gross Unrealized Losses | -487 | -1,453 |
Fair Value | 163,103 | 164,932 |
US Government Guaranteed Mortgage Backed Securities [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 8,819 | 1,591 |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | -41 | -12 |
Fair Value | 8,778 | 1,586 |
Held-to-maturity securities | ||
Amortized Cost | 40,939 | 38,566 |
Gross Unrealized Gains | 161 | 34 |
Gross Unrealized Losses | -615 | -607 |
Fair Value | 40,485 | 37,993 |
Corporate Bonds [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 23,433 | 25,711 |
Gross Unrealized Gains | 505 | 532 |
Gross Unrealized Losses | -5 | -20 |
Fair Value | 23,933 | 26,223 |
Held-to-maturity securities | ||
Amortized Cost | 24,556 | 24,751 |
Gross Unrealized Gains | 220 | 76 |
Gross Unrealized Losses | -44 | -248 |
Fair Value | 24,732 | 24,579 |
States and Municipal Bonds [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 12,485 | 16,472 |
Gross Unrealized Gains | 369 | 562 |
Fair Value | 12,854 | 17,034 |
Held-to-maturity securities | ||
Amortized Cost | 7,268 | 7,285 |
Gross Unrealized Gains | 72 | 59 |
Gross Unrealized Losses | -94 | -94 |
Fair Value | 7,246 | 7,250 |
Government-Sponsored Enterprise Obligations [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 14,100 | 24,066 |
Gross Unrealized Gains | 79 | 69 |
Gross Unrealized Losses | -24 | -156 |
Fair Value | 14,155 | 23,979 |
Held-to-maturity securities | ||
Amortized Cost | 33,429 | 43,477 |
Gross Unrealized Gains | 449 | 257 |
Gross Unrealized Losses | -449 | -852 |
Fair Value | 33,429 | 42,882 |
Mutual Funds [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 6,331 | 6,296 |
Gross Unrealized Gains | 34 | 8 |
Gross Unrealized Losses | -119 | -128 |
Fair Value | 6,246 | 6,176 |
Common And Preferred Stock [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 1,309 | 1,309 |
Gross Unrealized Gains | 239 | 230 |
Fair Value | $1,548 | $1,539 |
SECURITIES_Details_1
SECURITIES (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Total | $232,525 | $215,082 |
Held to Maturity Securities, Amortized Cost, Total | 266,718 | 278,080 |
Held to Maturity Securities, Fair Value, Total | 268,995 | 277,636 |
Mortgage Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Due in one year or less | 5,041 | |
Available for Sale Securities, Amortized Cost, Due after five years through ten years | 17,215 | |
Available for Sale Securities, Amortized Cost, Due after ten years | 152,611 | |
Available for Sale Securities, Amortized Cost, Total | 174,867 | |
Available for Sale Securities, Fair Value, Due in one year or less | 5,107 | |
Available for Sale Securities, Fair Value, Due after five years through ten years | 17,196 | |
Available for Sale Securities, Fair Value, Due after ten years | 152,552 | |
Available for Sale Securities, Fair Value, Total | 174,855 | |
Held to Maturity Securities, Amortized Cost, Due in one year or less | ||
Held to Maturity Securities, Amortized Cost, Due after five years through ten years | 46,420 | |
Held to Maturity Securities, Amortized Cost, Due after ten years | 155,045 | |
Held to Maturity Securities, Amortized Cost, Total | 201,465 | |
Held to Maturity Securities, Fair Value, Due in one year or less | ||
Held to Maturity Securities, Fair Value, Due after five years through ten years | 46,242 | |
Held to Maturity Securities, Fair Value, Due after ten years | 157,346 | |
Held to Maturity Securities, Fair Value, Total | 203,588 | |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Due in one year or less | 1,651 | |
Available for Sale Securities, Amortized Cost, Due after one year through five years | 40,386 | |
Available for Sale Securities, Amortized Cost, Due after five years through ten years | 7,795 | |
Available for Sale Securities, Amortized Cost, Due after ten years | 186 | |
Available for Sale Securities, Amortized Cost, Total | 50,018 | |
Available for Sale Securities, Fair Value, Due in one year or less | 1,665 | |
Available for Sale Securities, Fair Value, Due after one year through five years | 41,083 | |
Available for Sale Securities, Fair Value, Due after five years through ten years | 7,989 | |
Available for Sale Securities, Fair Value, Due after ten years | 205 | |
Available for Sale Securities, Fair Value, Total | 50,942 | |
Held to Maturity Securities, Amortized Cost, Due in one year or less | 379 | |
Held to Maturity Securities, Amortized Cost, Due after one year through five years | 19,845 | |
Held to Maturity Securities, Amortized Cost, Due after five years through ten years | 40,809 | |
Held to Maturity Securities, Amortized Cost, Due after ten years | 4,220 | |
Held to Maturity Securities, Amortized Cost, Total | 65,253 | |
Held to Maturity Securities, Fair Value, Due in one year or less | 380 | |
Held to Maturity Securities, Fair Value, Due after one year through five years | 19,811 | |
Held to Maturity Securities, Fair Value, Due after five years through ten years | 41,081 | |
Held to Maturity Securities, Fair Value, Due after ten years | 4,135 | |
Held to Maturity Securities, Fair Value, Total | $65,407 |
SECURITIES_Details_2
SECURITIES (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Gross gains realized | $887 | $193 |
Gross losses realized | -70 | -164 |
Net gain realized | $817 | $29 |
SECURITIES_Details_3
SECURITIES (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Available for sale, Less Than 12 Months Gross Unrealized Losses | $393 | $116 |
Available for sale, Less Than 12 Months Fair Value | 80,530 | 34,264 |
Available for sale, Over 12 Months Gross Unrealized Losses | 241 | 1,047 |
Available for sale, Over 12 Months Fair Value | 18,400 | 71,503 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 889 | 328 |
Held to maturity, Less Than 12 Months Fair Value | 53,658 | 15,976 |
Held to maturity, Over 12 Months Gross Unrealized Losses | 800 | 2,926 |
Held to maturity, Over 12 Months Fair Value | 74,990 | 149,472 |
Total Securities, Less Than 12 Months Gross Unrealized Losses | 1,282 | 444 |
Total Securities, Less Than 12 Months Fair Value | 134,188 | 50,240 |
Total Securities, Over 12 Months Gross Unrealized Losses | 1,041 | 3,973 |
Total Securities, Over 12 Months Fair Value | 93,390 | 220,975 |
Amortized Cost Basis - less than 12 months | 135,470 | |
Gross Loss - less than 12 months | 1,282 | |
Amortized Cost Basis - Over 12 Months | 94,431 | |
Gross Loss - Over 12 Months | 1,041 | |
Government-sponsored Mortgage-backed Securities [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 349 | 47 |
Available for sale, Less Than 12 Months Fair Value | 68,427 | 20,637 |
Available for sale, Over 12 Months Gross Unrealized Losses | 96 | 800 |
Available for sale, Over 12 Months Fair Value | 10,988 | 56,830 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 257 | 200 |
Held to maturity, Less Than 12 Months Fair Value | 35,262 | 10,292 |
Held to maturity, Over 12 Months Gross Unrealized Losses | 230 | 1,253 |
Held to maturity, Over 12 Months Fair Value | 24,748 | 65,526 |
Number of Securities - less than 12 months | 26 | |
Amortized Cost Basis - less than 12 months | 104,295 | |
Gross Loss - less than 12 months | 606 | |
Depreciation from AC Basis (%) - less than 12 months | 0.60% | |
Number of Securities - Over 12 Months | 8 | |
Amortized Cost Basis - Over 12 Months | 36,062 | |
Gross Loss - Over 12 Months | 326 | |
Depreciation from AC Basis (%)- Over 12 Months | 0.90% | |
US Government Guaranteed Mortgage Backed Securities [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 33 | |
Available for sale, Less Than 12 Months Fair Value | 8,114 | |
Available for sale, Over 12 Months Gross Unrealized Losses | 8 | 12 |
Available for sale, Over 12 Months Fair Value | 664 | 677 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 611 | |
Held to maturity, Less Than 12 Months Fair Value | 12,654 | |
Held to maturity, Over 12 Months Gross Unrealized Losses | 4 | 607 |
Held to maturity, Over 12 Months Fair Value | 11,286 | 31,951 |
Number of Securities - less than 12 months | 3 | |
Amortized Cost Basis - less than 12 months | 21,412 | |
Gross Loss - less than 12 months | 644 | |
Depreciation from AC Basis (%) - less than 12 months | 3.00% | |
Number of Securities - Over 12 Months | 3 | |
Amortized Cost Basis - Over 12 Months | 11,962 | |
Gross Loss - Over 12 Months | 12 | |
Depreciation from AC Basis (%)- Over 12 Months | 0.10% | |
Government-Sponsored Enterprise Obligations [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 11 | 52 |
Available for sale, Less Than 12 Months Fair Value | 3,989 | 9,189 |
Available for sale, Over 12 Months Gross Unrealized Losses | 13 | 104 |
Available for sale, Over 12 Months Fair Value | 3,487 | 7,396 |
Held to maturity, Over 12 Months Gross Unrealized Losses | 449 | 852 |
Held to maturity, Over 12 Months Fair Value | 23,558 | 33,224 |
Number of Securities - less than 12 months | 2 | |
Amortized Cost Basis - less than 12 months | 4,000 | |
Gross Loss - less than 12 months | 11 | |
Depreciation from AC Basis (%) - less than 12 months | 0.30% | |
Number of Securities - Over 12 Months | 6 | |
Amortized Cost Basis - Over 12 Months | 27,507 | |
Gross Loss - Over 12 Months | 462 | |
Depreciation from AC Basis (%)- Over 12 Months | 1.70% | |
Corporate Bonds [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 17 | |
Available for sale, Less Than 12 Months Fair Value | 4,438 | |
Available for sale, Over 12 Months Gross Unrealized Losses | 5 | 3 |
Available for sale, Over 12 Months Fair Value | 1,495 | 1,497 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 21 | 128 |
Held to maturity, Less Than 12 Months Fair Value | 5,742 | 5,684 |
Held to maturity, Over 12 Months Gross Unrealized Losses | 23 | 120 |
Held to maturity, Over 12 Months Fair Value | 11,010 | 13,918 |
Number of Securities - less than 12 months | 1 | |
Amortized Cost Basis - less than 12 months | 5,763 | |
Gross Loss - less than 12 months | 21 | |
Depreciation from AC Basis (%) - less than 12 months | 0.40% | |
Number of Securities - Over 12 Months | 4 | |
Amortized Cost Basis - Over 12 Months | 12,533 | |
Gross Loss - Over 12 Months | 28 | |
Depreciation from AC Basis (%)- Over 12 Months | 0.20% | |
States and Municipal Bonds [Member] | ||
Held to maturity, Over 12 Months Gross Unrealized Losses | 94 | 94 |
Held to maturity, Over 12 Months Fair Value | 4,388 | 4,853 |
Number of Securities - Over 12 Months | 9 | |
Amortized Cost Basis - Over 12 Months | 4,482 | |
Gross Loss - Over 12 Months | 94 | |
Depreciation from AC Basis (%)- Over 12 Months | 2.10% | |
Mutual Funds [Member] | ||
Available for sale, Over 12 Months Gross Unrealized Losses | 119 | 128 |
Available for sale, Over 12 Months Fair Value | 1,766 | 5,103 |
Number of Securities - Over 12 Months | 1 | |
Amortized Cost Basis - Over 12 Months | 1,885 | |
Gross Loss - Over 12 Months | $119 | |
Depreciation from AC Basis (%)- Over 12 Months | 6.30% |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchase of residential mortgages | $6,209 | $7,468 |
TDR charge off loans | 212 | |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchase of residential mortgages | $6,200 | $7,500 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $728,988 | $723,416 | ||
Unearned premiums and deferred loan fees and costs, net | 1,366 | 1,270 | ||
Allowance for loan losses | -8,035 | -7,948 | -7,567 | -7,459 |
Loans, net | 722,319 | 716,738 | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 287,083 | 278,405 | ||
Allowance for loan losses | -3,839 | -3,705 | -3,689 | -3,549 |
Residential Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 237,125 | 237,436 | ||
Residential Real Estate- Home Equity [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 40,416 | 40,305 | ||
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 162,938 | 165,728 | ||
Allowance for loan losses | -2,211 | -2,174 | -2,049 | -2,192 |
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,426 | 1,542 | ||
Allowance for loan losses | ($22) | ($15) | ($13) | ($13) |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | $7,948 | $7,459 |
Provision (credit) | 300 | 100 |
Charge-offs | -225 | -99 |
Recoveries | 12 | 107 |
Ending Balance | 8,035 | 7,567 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 3,705 | 3,549 |
Provision (credit) | 134 | 140 |
Charge-offs | ||
Recoveries | ||
Ending Balance | 3,839 | 3,689 |
Residential Real Estate[Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 2,053 | 1,707 |
Provision (credit) | -76 | 119 |
Charge-offs | -15 | |
Recoveries | 1 | 1 |
Ending Balance | 1,978 | 1,812 |
Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 2,174 | 2,192 |
Provision (credit) | 247 | -172 |
Charge-offs | -212 | -74 |
Recoveries | 2 | 103 |
Ending Balance | 2,211 | 2,049 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 15 | 13 |
Provision (credit) | 11 | 7 |
Charge-offs | -13 | -10 |
Recoveries | 9 | 3 |
Ending Balance | 22 | 13 |
Unallocated [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 1 | -2 |
Provision (credit) | -16 | 6 |
Charge-offs | ||
Recoveries | ||
Ending Balance | ($15) | $4 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | $8,035 | $7,948 | ||
Total allowance for loan losses | 8,035 | 7,948 | 7,567 | 7,459 |
Loans individually evaluated and deemed impaired | 7,358 | 7,831 | ||
Loan collectively or individually evaluated and not deemed impaired | 721,630 | 715,585 | ||
Total loans | 728,988 | 723,416 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 3,839 | 3,705 | ||
Total allowance for loan losses | 3,839 | 3,705 | 3,689 | 3,549 |
Loans individually evaluated and deemed impaired | 3,061 | 3,104 | ||
Loan collectively or individually evaluated and not deemed impaired | 284,022 | 275,301 | ||
Total loans | 287,083 | 278,405 | ||
Residential Real Estate[Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 1,978 | 2,053 | ||
Total allowance for loan losses | 1,978 | 2,053 | 1,812 | 1,707 |
Loans individually evaluated and deemed impaired | 287 | 291 | ||
Loan collectively or individually evaluated and not deemed impaired | 277,254 | 277,450 | ||
Total loans | 277,741 | |||
Commercial and Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 2,211 | 2,174 | ||
Total allowance for loan losses | 2,211 | 2,174 | 2,049 | 2,192 |
Loans individually evaluated and deemed impaired | 4,010 | 4,436 | ||
Loan collectively or individually evaluated and not deemed impaired | 158,928 | 161,292 | ||
Total loans | 162,938 | 165,728 | ||
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | 22 | 15 | ||
Total allowance for loan losses | 22 | 15 | 13 | 13 |
Loan collectively or individually evaluated and not deemed impaired | 1,426 | 1,542 | ||
Total loans | 1,426 | 1,542 | ||
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | -15 | 1 | ||
Total allowance for loan losses | ($15) | $1 | $4 | ($2) |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $3,986 | $5,906 |
Loans on Non-Accrual | 8,340 | 8,830 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,623 | 3,760 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 350 | 61 |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,013 | 2,085 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 842 | 3,532 |
Loans on Non-Accrual | 3,211 | 3,257 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 178 | 3,003 |
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 142 | |
Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 522 | 529 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,604 | 1,533 |
Loans on Non-Accrual | 1,305 | 1,323 |
Residential Mortgage [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 629 | 314 |
Residential Mortgage [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 61 | |
Residential Mortgage [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 975 | 1,158 |
Residential Real Estate- Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 154 | 253 |
Loans on Non-Accrual | 1 | 1 |
Residential Real Estate- Home Equity [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 153 | 252 |
Residential Real Estate- Home Equity [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Residential Real Estate- Home Equity [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 1 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,348 | 563 |
Loans on Non-Accrual | 3,811 | 4,233 |
Commercial and Industrial [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 628 | 169 |
Commercial and Industrial [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 205 | |
Commercial and Industrial [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 515 | 394 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 38 | 25 |
Loans on Non-Accrual | 12 | 16 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 35 | 22 |
Consumer [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | |
Consumer [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $3 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Impaired loans without a valuation allowance: | |||
Recorded Investment | $7,358 | $7,831 | |
Unpaid Principal Balance | 9,082 | 9,250 | |
Average Recorded Investment | 7,594 | ||
Interest Income Recognized | 2,240 | ||
Impaired loans with valuation allowance: | |||
Average Recorded Investment | 14,435 | ||
Interest Income Recognized | 153 | ||
Total Impaired loans: | |||
Recorded Investment | 7,358 | 7,831 | |
Unpaid Principal Balance | 9,082 | 9,250 | |
Average Recorded Investment | 7,594 | 16,675 | |
Interest Income Recognized | 153 | ||
Commercial Real Estate [Member] | |||
Impaired loans without a valuation allowance: | |||
Recorded Investment | 3,061 | 3,104 | |
Unpaid Principal Balance | 3,661 | 3,662 | |
Average Recorded Investment | 3,082 | ||
Interest Income Recognized | 1,440 | ||
Impaired loans with valuation allowance: | |||
Average Recorded Investment | 13,471 | ||
Interest Income Recognized | 143 | ||
Residential Real Estate[Member] | |||
Impaired loans without a valuation allowance: | |||
Recorded Investment | 287 | 291 | |
Unpaid Principal Balance | 406 | 407 | |
Average Recorded Investment | 289 | ||
Interest Income Recognized | 224 | ||
Commercial and Industrial [Member] | |||
Impaired loans without a valuation allowance: | |||
Recorded Investment | 4,010 | 4,436 | |
Unpaid Principal Balance | 5,015 | 5,181 | |
Average Recorded Investment | 4,223 | ||
Interest Income Recognized | 576 | ||
Impaired loans with valuation allowance: | |||
Average Recorded Investment | 964 | ||
Interest Income Recognized | $10 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $728,988 | $723,416 |
Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 659,157 | 651,040 |
Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 40,034 | 50,146 |
Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,860 | 13,400 |
Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 18,882 | 8,830 |
Loans rated 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 55 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 287,083 | 278,405 |
Commercial Real Estate [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 244,872 | 234,010 |
Commercial Real Estate [Member] | Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 34,147 | 33,305 |
Commercial Real Estate [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 758 | 7,833 |
Commercial Real Estate [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,306 | 3,257 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 237,125 | 237,436 |
Residential Mortgage [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 235,820 | 236,113 |
Residential Mortgage [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,305 | 1,323 |
Residential Real Estate- Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 40,416 | 40,305 |
Residential Real Estate- Home Equity [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 40,415 | 40,282 |
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 | 1 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 162,938 | 165,728 |
Commercial and Industrial [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 136,636 | 139,109 |
Commercial and Industrial [Member] | Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,887 | 16,841 |
Commercial and Industrial [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,102 | 5,545 |
Commercial and Industrial [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,258 | 4,233 |
Commercial and Industrial [Member] | Loans rated 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 55 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,426 | 1,542 |
Consumer [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,414 | 1,526 |
Consumer [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $12 | $16 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Detail Narrative) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | 31-May-14 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $28 | $25 | |
Directors Officers And Employees Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation reserved for issuance | 516,000 | ||
Share based compensation, shares available for grant | 48,560 | ||
2002 Directors Officers And Employees Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation reserved for issuance | 652,664 | ||
2007 Directors Officers And Employees Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation reserved for issuance | 624,041 |
SHAREBASED_COMPENSATION_Detail1
SHARE-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Unvested Stock Awards Outstanding, Shares | ||
Beginning Balance | 13,000 | 25,720 |
Shares Granted | 48,560 | |
Ending Balance | 61,560 | 25,720 |
Unvested Stock Awards Outstanding, Weighted Average Grant Date Fair Value | ||
Beginning Balance | $8.07 | $7.93 |
Shares Granted | $7.18 | |
Ending Balance | $7.37 | $7.93 |
SHORTTERM_BORROWINGS_AND_LONGT1
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Detail Narrative) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $82,625 | $93,997 |
Total amount available to borrow | 1,800 | |
Long term Debt | 212,637 | 232,479 |
Federal Home Loan Bank Of Boston Ideal Way [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 44,500 | 62,800 |
Long term Debt | 206,800 | 216,700 |
Securities sold under repurchase agreements | 10,000 | |
Bankers Bank Northeast [Member] | ||
Debt Instrument [Line Items] | ||
Total amount available to borrow | 4,000 | |
Required cash reserve | 300 | |
PNC [Member] | ||
Debt Instrument [Line Items] | ||
Total amount available to borrow | 50,000 | |
Customer Repurchase Agreements Long Term [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 38,100 | 31,200 |
Long term Debt | 5,800 | 5,800 |
Repurchase Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Prepayment expense | 593 | |
Repurchase agreements prepaid | $10,000 | |
Repurchase agreements, weighted average rate | 2.65% |
PENSION_PLANS_Details
PENSION PLANS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost | $309 | $250 |
Interest cost | 226 | 206 |
Expected return on assets | -284 | -240 |
Amortization of transition asset | -3 | |
Amortization of actuarial loss | 31 | |
Net periodic pension cost | $282 | $213 |
DERIVATIVES_AND_HEDGING_ACTIVI2
DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount | $155,000 | $155,000 | |
Termination value of derivatives in a net liability position | 8,500 | ||
Reclassifications amount, effective portion | 131,000 | 46,000 | |
Interest Rate Swap [Member] | Two Thousand Fifteen [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount | 47,500 | ||
Interest Rate Swap [Member] | Two Thousand 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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | ($8,377) | ($5,739) |
Other Assets [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 9 | |
Other Assets [Member] | Interest Rate Swap [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 9 | |
Other Liabilities [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 8,377 | 5,748 |
Other Liabilities [Member] | Interest Rate Swap [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | $8,377 | $5,748 |
DERIVATIVES_AND_HEDGING_ACTIVI4
DERIVATIVES AND HEDGING ACTIVITIES (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional Amount | $155,000 | $155,000 |
Weighted Average Maturity | 5 years 6 months | 5 years 8 months 21 days |
Estimated Fair Value | -8,377 | -5,739 |
Interest Rate Swap Agreement [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 40,000 | 40,000 |
Weighted Average Maturity | 3 years | 3 years 3 months 14 days |
Weighted Average Rate Received | 0.25% | 0.23% |
Weighted Average Rate Paid | 1.52% | 1.52% |
Estimated Fair Value | -559 | -268 |
Forward Starting Interest Rate Swap Agreement [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 115,000 | 115,000 |
Weighted Average Maturity | 6 years 4 months 7 days | 6 years 7 months 14 days |
Weighted Average Rate Received | ||
Weighted Average Rate Paid | 3.11% | 3.11% |
Estimated Fair Value | ($7,818) | ($5,471) |
DERIVATIVES_AND_HEDGING_ACTIVI5
DERIVATIVES AND HEDGING ACTIVITIES (Details 2) (Interest Rate Swap [Member], Derivatives Designated As Cash Flow Hedges [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest Rate Swap [Member] | Derivatives Designated As Cash Flow Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized in OCI | ($2,769) | ($2,390) |
FAIR_VALUE_OF_ASSETS_AND_LIABL
FAIR VALUE OF ASSETS AND LIABLITIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $233,591 | $215,750 |
Derivative asset | 9 | |
Derivative liabilities, net | 8,377 | 5,748 |
Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,794 | 7,715 |
Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 225,797 | 208,035 |
Derivative asset | 9 | |
Derivative liabilities, net | 8,377 | 5,748 |
Government-sponsored Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 166,077 | 139,213 |
US Government Guaranteed Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 8,778 | 1,586 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 23,933 | 26,223 |
States and Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 12,854 | 17,034 |
Government-Sponsored Enterprise Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 14,155 | 23,979 |
Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,246 | 6,176 |
Common And Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,548 | 1,539 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 215,750 | |
Derivative asset | 9 | |
Total assets | 233,591 | 215,759 |
Derivative liabilities, net | 8,377 | 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 | |
Total assets | 7,794 | |
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 | |
Derivative asset | 9 | |
Total assets | 225,797 | 208,044 |
Derivative liabilities, net | 8,377 | 5,748 |
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 | 166,077 | 139,213 |
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 | 166,077 | 139,213 |
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 | 8,778 | 1,586 |
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 | 8,778 | 1,586 |
Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 23,933 | 26,223 |
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 | 23,933 | 26,223 |
Recurring [Member] | States and Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 12,854 | 17,034 |
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 | 12,854 | 17,034 |
Recurring [Member] | Government-Sponsored Enterprise Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 14,155 | 23,979 |
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 | 14,155 | 23,979 |
Recurring [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,246 | 6,176 |
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 | 6,246 | 6,176 |
Recurring [Member] | Common And Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,548 | 1,539 |
Recurring [Member] | Common And Preferred Stock [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $1,548 | $1,539 |
FAIR_VALUE_OF_ASSETS_AND_LIABL1
FAIR VALUE OF ASSETS AND LIABLITIES (Details 1) (Nonrecurring [Member], Fair Value Inputs Level 3 [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $2,237 | $96 |
Gains (Losses) arising from fair value adjustment of assets | -212 | -15 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 2,237 | 96 |
Gains (Losses) arising from fair value adjustment of assets | ($212) | ($15) |
FAIR_VALUE_OF_ASSETS_AND_LIABL2
FAIR VALUE OF ASSETS AND LIABLITIES (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Cash and cash equivalents | $12,719 | $18,785 |
Securities available for sale | 233,591 | 215,750 |
Securities held to maturity | 268,995 | 277,636 |
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | 14,934 |
Loans - net | 728,377 | 721,818 |
Accrued interest receivable | 4,151 | 4,213 |
Derivative assets | 9 | |
Liabilities: | ||
Deposits | 874,633 | 834,838 |
Short-term borrowings | 82,626 | 93,997 |
Long-term debt | 216,837 | 236,457 |
Accrued interest payable | 467 | 501 |
Derivative liabilities, net | 8,377 | 5,748 |
Fair Value - Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 12,719 | 18,785 |
Securities available for sale | 7,794 | 7,715 |
Fair Value Inputs Level 2 [Member] | ||
Assets: | ||
Securities available for sale | 225,797 | 208,035 |
Securities held to maturity | 268,995 | 277,636 |
Derivative assets | 9 | |
Liabilities: | ||
Short-term borrowings | 82,626 | 93,997 |
Long-term debt | 216,837 | 236,457 |
Derivative liabilities, net | 8,377 | 5,748 |
Fair Value - Level 3 [Member] | ||
Assets: | ||
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | 14,934 |
Loans - net | 728,377 | 721,818 |
Accrued interest receivable | 4,151 | 4,213 |
Liabilities: | ||
Deposits | 874,633 | 834,838 |
Accrued interest payable | 467 | 501 |
Carrying Value [Member] | ||
Assets: | ||
Cash and cash equivalents | 12,719 | 18,785 |
Securities available for sale | 233,591 | 215,750 |
Securities held to maturity | 266,718 | 278,080 |
Federal Home Loan Bank of Boston and other restricted stock | 14,934 | 14,934 |
Loans - net | 722,319 | 716,738 |
Accrued interest receivable | 4,151 | 4,213 |
Derivative assets | 9 | |
Liabilities: | ||
Deposits | 873,303 | 834,218 |
Short-term borrowings | 82,625 | 93,997 |
Long-term debt | 212,637 | 232,479 |
Accrued interest payable | 467 | 501 |
Derivative liabilities, net | $8,377 | $5,748 |