Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | WESTFIELD FINANCIAL INC | |
Entity Central Index Key | 1,157,647 | |
Document Type | 10-Q | |
Trading Symbol | WFD | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
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 | 18,330,487 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS - U
CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
CASH AND DUE FROM BANKS | $ 10,477 | $ 9,891 |
FEDERAL FUNDS SOLD | 419 | 100 |
INTEREST-BEARING DEPOSITS AND OTHER SHORT-TERM INVESTMENTS | 10,371 | 3,712 |
CASH AND CASH EQUIVALENTS | 21,267 | 13,703 |
SECURITIES AVAILABLE FOR SALE - AT FAIR VALUE | 296,565 | 182,590 |
SECURITIES HELD TO MATURITY (Fair value of $237,619 at December 31, 2015) | 238,219 | |
FEDERAL HOME LOAN BANK OF BOSTON AND OTHER RESTRICTED STOCK - AT COST | 11,267 | 15,074 |
LOANS - Net of allowance for loan losses of $9,570 and $8,840 at June 30, 2016 and December 31, 2015, respectively | 896,642 | 809,373 |
PREMISES AND EQUIPMENT, Net | 13,224 | 13,564 |
ACCRUED INTEREST RECEIVABLE | 3,712 | 3,878 |
BANK-OWNED LIFE INSURANCE | 50,994 | 50,230 |
DEFERRED TAX ASSET, Net | 9,706 | 10,881 |
OTHER ASSETS | 2,928 | 2,418 |
TOTAL ASSETS | 1,306,305 | 1,339,930 |
DEPOSITS : | ||
Noninterest-bearing | 159,022 | 157,844 |
Interest-bearing | 761,890 | 742,519 |
Total deposits | 920,912 | 900,363 |
SHORT-TERM BORROWINGS | 144,707 | 128,407 |
LONG-TERM DEBT | 78,032 | 153,358 |
OTHER LIABILITIES | 18,085 | 18,336 |
TOTAL LIABILITIES | 1,161,736 | 1,200,464 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock - $.01 par value, 5,000,000 shares authorized, none outstanding at June 30, 2016 and December 31, 2015 | ||
Common stock - $.01 par value, 75,000,000 shares authorized, 18,330,487 shares issued and outstanding at June 30, 2016; 18,267,747 shares issued and outstanding at December 31, 2015 | 184 | 183 |
Additional paid-in capital | 108,742 | 108,210 |
Unearned compensation - ESOP | (6,695) | (6,952) |
Unearned compensation - Equity Incentive Plan | (697) | (313) |
Retained earnings | 50,631 | 49,316 |
Accumulated other comprehensive loss | (7,596) | (10,978) |
Total shareholders' equity | 144,569 | 139,466 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,306,305 | $ 1,339,930 |
CONSOLIDATED BALANCE SHEETS - 3
CONSOLIDATED BALANCE SHEETS - UNAUDITED (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 237,619 | |
Allowance for loan losses | $ 9,570 | $ 8,840 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 75,000,000 | 75,000,000 |
Common stock, issued | 18,330,487 | 18,267,747 |
Common stock, outstanding | 18,330,487 | 18,267,747 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
INTEREST AND DIVIDEND INCOME: | ||||
Residential and commercial real estate loans | $ 6,924 | $ 5,715 | $ 13,436 | $ 11,310 |
Commercial and industrial loans | 1,674 | 1,619 | 3,370 | 3,218 |
Consumer loans | 41 | 37 | 83 | 73 |
Debt securities, taxable | 1,679 | 2,832 | 4,106 | 5,491 |
Debt securities, tax-exempt | 28 | 175 | 104 | 361 |
Equity securities | 43 | 42 | 95 | 83 |
Other investments - at cost | 136 | 69 | 268 | 137 |
Federal funds sold, interest-bearing deposits and other short-term investments | 29 | 5 | 53 | 11 |
Total interest and dividend income | 10,554 | 10,494 | 21,515 | 20,684 |
INTEREST EXPENSE: | ||||
Deposits | 1,535 | 1,380 | 3,007 | 2,721 |
Long-term debt | 461 | 1,092 | 1,303 | 2,162 |
Short-term borrowings | 556 | 243 | 960 | 431 |
Total interest expense | 2,552 | 2,715 | 5,270 | 5,314 |
Net interest and dividend income | 8,002 | 7,779 | 16,245 | 15,370 |
PROVISION FOR LOAN LOSSES | 625 | 350 | 25 | 650 |
Net interest and dividend income after provision for loan losses | 7,377 | 7,429 | 16,220 | 14,720 |
NONINTEREST INCOME (LOSS): | ||||
Service charges and fees | 859 | 840 | 1,743 | 1,477 |
Income from bank-owned life insurance | 403 | 407 | 764 | 774 |
Loss on prepayment of borrowings | (278) | (915) | (871) | |
(Loss) gain on sales of securities, net | (2) | 276 | 683 | 1,093 |
Total noninterest income | 1,260 | 1,245 | 2,275 | 2,473 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 3,910 | 3,863 | 7,781 | 7,684 |
Occupancy | 804 | 818 | 1,605 | 1,659 |
Computer operations | 626 | 559 | 1,247 | 1,143 |
Professional fees | 545 | 488 | 1,061 | 959 |
FDIC insurance assessment | 190 | 188 | 380 | 381 |
Merger related expenses | 929 | 1,083 | ||
Other | 994 | 949 | 1,913 | 1,750 |
Total noninterest expense | 7,998 | 6,865 | 15,070 | 13,576 |
INCOME BEFORE INCOME TAXES | 639 | 1,809 | 3,425 | 3,617 |
INCOME TAX PROVISION | 250 | 445 | 1,072 | 915 |
NET INCOME | $ 389 | $ 1,364 | $ 2,353 | $ 2,702 |
EARNINGS PER COMMON SHARE: | ||||
Basic earnings per share (in dollars per share) | $ 0.02 | $ 0.08 | $ 0.14 | $ 0.15 |
Weighted average shares outstanding (in shares) | 17,337,955 | 17,519,562 | 17,321,022 | 17,601,575 |
Diluted earnings per share (in dollars per share) | $ 0.02 | $ 0.08 | $ 0.14 | $ 0.15 |
Weighted average diluted shares outstanding (in shares) | 17,337,955 | 17,519,562 | 17,321,022 | 17,601,575 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 389 | $ 1,364 | $ 2,353 | $ 2,702 | |
Unrealized gains (loss) on securities: | |||||
Unrealized holding gains (loss) on available for sale securities | 2,606 | (2,934) | 6,179 | (1,719) | |
Reclassification adjustment for loss (gain) realized in income | [1] | 2 | (276) | (683) | (1,093) |
Amortization of net unrealized (gain) loss on held-to-maturity securities | [2] | (115) | 26 | (191) | |
Amortization of net unrealized loss upon transfer of held-to-maturity to available-for-sale | [3] | 2,288 | |||
Net unrealized gains (losses) | 2,608 | (3,325) | 7,810 | (3,003) | |
Tax effect | (895) | 1,148 | (2,692) | 1,036 | |
Net-of-tax amount | 1,713 | (2,177) | 5,118 | (1,967) | |
Derivative instruments: | |||||
Change in fair value of derivatives used for cash flow hedges | (729) | 1,492 | (3,280) | (1,277) | |
Reclassification adjustment for loss realized in interest expense | [4] | 90 | 137 | 185 | 268 |
Reclassification adjustment for termination fee realized in interest expense | [5] | 266 | 38 | 418 | 38 |
Net adjustments relating to derivative instruments | (373) | 1,667 | (2,677) | (971) | |
Tax effect | 127 | (567) | 910 | 330 | |
Net-of-tax amount | (246) | 1,100 | (1,767) | (641) | |
Defined benefit pension plans: | |||||
Gains and losses arising during the period pertaining to defined benefit plans | (62) | ||||
Reclassification adjustment : | |||||
Actuarial loss | [6] | 31 | 93 | 47 | 124 |
Net adjustments pertaining to defined benefit plans | 31 | 93 | 47 | 62 | |
Tax effect | (10) | (30) | (16) | (21) | |
Net-of-tax amount | 21 | 63 | 31 | 41 | |
Other comprehensive income (loss) | 1,488 | (1,014) | 3,382 | (2,567) | |
Comprehensive income | $ 1,877 | $ 350 | $ 5,735 | $ 135 | |
[1] | (Loss) gain realized in income on available-for-sale securities is recognized as a component of noninterest income. The tax effects applicable to net realized (loss) gains was $(1) and $95,000 for the three months ended June 30, 2016 and 2015, respectively. The tax provision applicable to net realized gains was $235,000 and $376,000 for the six months ended June 30, 2016 and 2015, respectively. | ||||
[2] | Amortization of net unrealized (loss) gain on held-to-maturity securities is recognized as a component of interest income on debt securities. Income tax effects associated with the reclassification adjustments were $40,000 for the three months ended June 30, 2015. Income tax effects associated with the reclassification adjustments were $(9,000) and a benefit of $65,000 for the six months ended June 30, 2016 and 2015, respectively. | ||||
[3] | Income tax effect associated with the reclassification adjustments upon transfer of held-to-maturity to available-for-sale was $790,000 for the six months ended June 30, 2016. | ||||
[4] | Loss realized in interest expense on derivative instruments is recognized as a component of interest expense on short-term debt. Income tax effects associated with the reclassification adjustment were $31,000 and $60,000 for the three months ended June 30, 2016 and 2015, respectively. Income tax effects associated with the reclassification adjustment were $63,000 and $104,000 for the six months ended June 30, 2016 and 2015, respectively. | ||||
[5] | Loss realized in interest expense on derivative instruments is recognized as a component of interest expense on short-term debt. Income tax effects associated with the reclassification adjustment were $90,000 and $13,000 for the three months ended June 30, 2016 and 2015, respectively. Income tax effects associated with the reclassification adjustment were $142,000 and $13,000 for the six months ended June 30, 2016 and 2015, respectively. | ||||
[6] | Amounts represent the reclassification of defined benefit plans amortization and have been recognized as a component of salaries and employee benefit expense. Income tax effects associated with the reclassification adjustments were $10,000 and $32,000 for the three months ended June 30, 2016 and 2015, respectively. Income tax effects associated with the reclassification adjustments were $16,000 and $21,000 for the six months ended June 30, 2016 and 2015, respectively. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Income tax expense (benefits) on realized (loss) gains reclassification adjustment | $ (1) | $ 95 | $ 235 | $ 376 |
Income tax expense (benefits) on amortization of net unrealized (loss) gain on held-to-maturity securities | 40 | (9) | 65 | |
Income tax expense (benefits) on net unrealized (loss) gain upon transfer of held-to-maturity to available-for-sale | 790 | |||
Income tax expense (benefits), derivative instruments | 31 | 60 | 63 | 104 |
Income tax benefit on termination fee on derivative instruments | 90 | 13 | 142 | 13 |
Income tax expense (benefits), defined benefit plans | $ 10 | $ 32 | $ 16 | $ 21 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Unearned Compensation - ESOP [Member] | Unearned Compensation - Equity Incentive Plan [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
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 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 2,702 | (2,567) | 135 | ||||
Common stock held by ESOP committed to be released | 25 | 259 | 284 | ||||
Share-based compensation - equity incentive plan | 64 | 64 | |||||
Excess tax benefit from equity incentive plan | 1 | 1 | |||||
Common stock repurchased | $ (3) | (2,142) | (2,145) | ||||
Common stock repurchased (in shares) | (287,727) | ||||||
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 and paid | (1,057) | (1,057) | |||||
ENDING BALANCE at Jun. 30, 2015 | $ 185 | 109,928 | (7,210) | (380) | 47,344 | (10,042) | 139,825 |
ENDING BALANCE (in shares) at Jun. 30, 2015 | 18,495,624 | ||||||
BEGINNING BALANCE at Dec. 31, 2015 | $ 183 | 108,210 | (6,952) | (313) | 49,316 | (10,978) | 139,466 |
BEGINNING BALANCE (in shares) at Dec. 31, 2015 | 18,267,747 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 2,353 | 3,382 | 5,735 | ||||
Common stock held by ESOP committed to be released | 44 | 257 | 301 | ||||
Share-based compensation - equity incentive plan | 101 | 101 | |||||
Excess tax benefit from equity incentive plan | 4 | 4 | |||||
Issuance of common stock in connection with equity incentive plan | $ 1 | 484 | (485) | ||||
Issuance of common stock in connection with equity incentive plan (in shares) | 62,740 | ||||||
Cash dividends declared and paid | (1,038) | (1,038) | |||||
ENDING BALANCE at Jun. 30, 2016 | $ 184 | $ 108,742 | $ (6,695) | $ (697) | $ 50,631 | $ (7,596) | $ 144,569 |
ENDING BALANCE (in shares) at Jun. 30, 2016 | 18,330,487 |
CONSOLIDATED STATEMENT OF CHAN8
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash dividends declared (in dollars per share) | $ 0.06 | $ 0.06 |
Cash dividends paid (in dollars per share) | $ 0.06 | $ 0.06 |
Unearned Compensation - ESOP [Member] | ||
Common stock held by ESOP committed to be released, shares | 74,430 | 76,888 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
OPERATING ACTIVITIES: | ||
Net income | $ 2,353 | $ 2,702 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 25 | 650 |
Depreciation and amortization of premises and equipment | 648 | 662 |
Net amortization of premiums and discounts on securities and mortgage loans | 1,950 | 2,552 |
Net amortization of premiums on modified debt | 52 | 221 |
Share-based compensation expense | 101 | 64 |
ESOP expense | 301 | 284 |
Excess tax benefits from equity incentive plan | (4) | (1) |
Net gains on sales of securities | (683) | (1,093) |
Loss on prepayment of borrowings | 915 | 871 |
Income from bank-owned life insurance | (764) | (774) |
Changes in assets and liabilities: | ||
Accrued interest receivable | 166 | 13 |
Other assets | (510) | (343) |
Other liabilities | (3,498) | (633) |
Net cash provided by operating activities | 1,052 | 5,175 |
Securities, held to maturity: | ||
Purchases | (2,619) | |
Proceeds from calls, maturities, and principal collections | 6,835 | 22,863 |
Securities, available for sale: | ||
Purchases | (39,094) | (132,193) |
Proceeds from sales | 136,824 | 77,783 |
Proceeds from calls, maturities, and principal collections | 26,258 | 22,282 |
Purchase of residential mortgages | (70,437) | (32,007) |
Loan originations and principal payments, net | (16,895) | (3,048) |
Redemption (purchase) of Federal Home Loan Bank of Boston stock | 3,807 | (438) |
Purchases of premises and equipment | (328) | (2,662) |
Proceeds from sale of premises and equipment | 20 | 23 |
Net cash provided by (used in) investing activities | 46,990 | (50,016) |
FINANCING ACTIVITIES: | ||
Net increase in deposits | 20,549 | 63,496 |
Net change in short-term borrowings | 16,300 | 17,254 |
Repayment of long-term debt | (76,414) | (37,871) |
Proceeds from long-term debt | 121 | 72 |
Cash dividends paid | (1,038) | (1,057) |
Common stock repurchased | (2,145) | |
Excess tax benefits in connection with equity incentive plan | 4 | 1 |
Net cash (used in) provided by financing activities | (40,478) | 39,750 |
NET CHANGE IN CASH AND CASH EQUIVALENTS: | 7,564 | (5,091) |
Beginning of period | 13,703 | 18,785 |
End of period | 21,267 | 13,694 |
Supplemental cash flow information: | ||
Securities reclassified from held-to-maturity to available-for-sale | (232,817) | |
Interest paid | 5,402 | 5,342 |
Taxes paid | $ 1,845 | $ 1,155 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Banks 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 Estimates Basis of Presentation 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, 2015, included in our Annual Report on Form 10-K for the year ended December 31, 2015 (the 2015 Annual Report). Reclassifications |
BUSINESS COMBINATION
BUSINESS COMBINATION | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | 2. BUSINESS COMBINATION On April 4, 2016, we announced the signing of a definitive merger agreement to acquire Chicopee Bancorp, Inc. (Chicopee), the holding company for Chicopee Savings Bank, whereby Chicopee will merge with and into Westfield Financial. Thereafter, pursuant to the terms of the plan of bank merger to be entered into by the Bank and Chicopee Savings Bank, Chicopee Savings Bank will be merged with and into the Bank, with the Bank surviving. Under the terms of the merger agreement, each outstanding share of Chicopee common stock will be converted into the right to receive 2.425 shares of the Westfield Financials common stock. The transaction is expected to close in the fourth quarter of 2016, subject to customary closing conditions, including receipt of regulatory approvals and the approvals of the shareholders of Westfield Financial and Chicopee. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
EARNINGS PER COMMON SHARE: | |
EARNINGS PER SHARE | 3. 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 and six months ended June 30, 2016 and 2015 have been computed based on the following: Three Months Ended Six Months Ended 2016 2015 2016 2015 (In thousands, except per share data) Net income applicable to common stock $ 389 $ 1,364 $ 2,353 $ 2,702 Average number of common shares issued 18,294 18,541 18,281 18,632 Less: Average unallocated ESOP Shares (945 ) (1,021 ) (954 ) (1,031 ) Less: Average unvested equity incentive plan shares (11 ) (5 ) Average number of common shares outstanding used to calculate basic and diluted earnings per common share 17,338 17,520 17,322 17,601 Basic and diluted earnings per share $ 0.02 $ 0.08 $ 0.14 $ 0.15 |
COMPREHENSIVE INCOME_LOSS
COMPREHENSIVE INCOME/LOSS | 6 Months Ended |
Jun. 30, 2016 | |
Comprehensive Incomeloss | |
COMPREHENSIVE INCOME/LOSS | 4. 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: June 30, December 31, (In thousands) Net unrealized (loss) gain on securities available for sale $ 3,152 $ (2,343 ) Tax effect (1,080 ) 812 Net-of-tax amount 2,072 (1,531 ) Net unrealized losses on securities transferred from available-for-sale to held-to-maturity (2,314 ) Tax effect 799 Net-of-tax amount (1,515 ) Fair value of derivatives used for cash flow hedges (5,740 ) (6,064 ) Termination fee (5,271 ) (2,270 ) Total derivatives (11,011 ) (8,334 ) Tax effect 3,743 2,833 Net-of-tax amount (7,268 ) (5,501 ) Unrecognized deferred loss pertaining to defined benefit plan (3,638 ) (3,685 ) Tax effect 1,238 1,254 Net-of-tax amount (2,400 ) (2,431 ) Accumulated other comprehensive loss $ (7,596 ) $ (10,978 ) The following table presents changes in accumulated other loss for the periods ended June 30, 2016 and 2015 by component: Securities Derivatives Defined Benefit Plans Accumulated Other Comprehensive Loss (In thousands) Balance at December 31, 2014 $ (728 ) $ (3,788 ) $ (2,959 ) $ (7,475 ) Current-period other comprehensive income (loss) (1,967 ) (641 ) 41 (2,567 ) Balance at June 30, 2015 $ (2,695 ) $ (4,429 ) $ (2,918 ) $ (10,042 ) Balance at December 31, 2015 $ (3,046 ) $ (5,501 ) $ (2,431 ) $ (10,978 ) Current-period other comprehensive income (loss) 5,118 (1,767 ) 31 3,382 Balance at June 30, 2016 $ 2,072 $ (7,268 ) $ (2,400 ) $ (7,596 ) |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | 5. SECURITIES Securities available for sale and held to maturity are summarized as follows: June 30, 2016 Amortized Cost Gross Gross Fair Value (In thousands) Available for sale securities: Government-sponsored mortgage-backed securities $ 187,362 $ 2,092 $ (257 ) $ 189,197 U.S. government guaranteed mortgage-backed securities 19,143 128 (158 ) 19,113 Corporate bonds 52,646 992 53,638 State and municipal bonds 4,294 82 (15 ) 4,361 Government-sponsored enterprise obligations 22,149 23 22,172 Mutual funds 6,509 47 (149 ) 6,407 Common and preferred stock 1,309 368 1,677 Total $ 293,412 $ 3,732 $ (579 ) $ 296,565 December 31, 2015 Amortized Cost Gross Gross Fair Value (In thousands) Available for sale securities: Government-sponsored mortgage-backed securities $ 138,186 $ $ (2,227 ) $ 135,959 U.S. government guaranteed mortgage-backed securities 11,030 (127 ) 10,903 Corporate bonds 21,176 45 (85 ) 21,136 State and municipal bonds 2,794 7 2,801 Government-sponsored enterprise obligations 4,000 (49 ) 3,951 Mutual funds 6,438 (191 ) 6,247 Common and preferred stock 1,309 284 1,593 Total available for sale securities 184,933 336 (2,679 ) 182,590 Held to maturity securities: Government-sponsored mortgage-backed securities $ 148,085 $ 1,319 $ (1,515 ) $ 147,889 U.S. government guaranteed mortgage-backed securities 29,174 166 (66 ) 29,274 Corporate bonds 23,969 64 (316 ) 23,717 State and municipal bonds 6,845 68 (102 ) 6,811 Government-sponsored enterprise obligations 30,146 254 (472 ) 29,928 Total held to maturity securities 238,219 1,871 (2,471 ) 237,619 Total $ 423,152 $ 2,207 $ (5,150 ) $ 420,209 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 8). The amortized cost and fair value of securities available for sale and held to maturity at June 30, 2016, by maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or repay obligations. June 30, 2016 Amortized Cost Fair Value (In thousands) Mortgage-backed securities: Due after one year through five years $ 12,123 $ 12,360 Due after five years through ten years 27,777 28,360 Due after ten years 166,605 167,590 Total $ 206,505 $ 208,310 Debt securities: Due in one year or less $ 2,205 $ 2,216 Due after one year through five years 27,745 28,249 Due after five years through ten years 42,053 42,582 Due after ten years 7,086 7,124 Total $ 79,089 $ 80,171 Gross realized gains and losses on sales of securities available for sale for the three and six months ended June 30, 2016 and 2015 are as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (In thousands) Gross gains realized $ $ 276 $ 1,520 $ 1,163 Gross losses realized (2 ) (837 ) (70 ) Net gain realized $ (2 ) $ 276 $ 683 $ 1,093 Proceeds from the sale of securities available for sale amounted to $136.8 million and $77.8 million for the six months ended June 30, 2016 and 2015, respectively. Information pertaining to securities with gross unrealized losses at June 30, 2016, and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: June 30, 2016 Less Than Twelve Months Over Twelve Months Gross Fair Gross Unrealized Losses Fair (In thousands) Available for sale: Government-sponsored mortgage-backed securities $ 1 $ 290 $ 256 $ 38,409 U.S. government guaranteed mortgage-backed securities 8 1,488 150 5,431 State and municipal bonds 15 318 Mutual funds 14 1,074 135 1,818 Total $ 23 $ 2,852 $ 556 $ 45,976 December 31, 2015 Less Than 12 Months Over 12 Months Gross Fair Gross Fair (In thousands) Available for sale: Government-sponsored mortgage-backed securities $ 2,090 $ 129,731 $ 137 $ 6,228 U.S. government guaranteed mortgage-backed securities 116 10,290 11 613 Corporate bonds 85 13,374 Government-sponsored enterprise obligations 49 3,951 Mutual funds 32 4,478 159 1,769 Total available for sale 2,372 161,824 307 8,610 Held to maturity: Government-sponsored mortgage-backed securities 947 45,760 568 32,825 U.S. government guaranteed mortgage-backed securities 37 2,522 29 15,401 Corporate bonds 204 5,412 112 13,382 State and municipal bonds 102 4,809 Government-sponsored enterprise obligations 472 20,193 Total held to maturity 1,188 53,694 1,283 86,610 Total $ 3,560 $ 215,518 $ 1,590 $ 95,220 June 30, 2016 Less Than 12 Months Over 12 Months Number of Securities Amortized Cost Basis Gross Loss Depreciation from Amortized Cost Basis (%) Number of Securities Amortized Cost Basis Gross Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Government-sponsored mortgage-backed securities 1 $ 291 $ 1 0.3 % 11 $ 38,665 $ 256 0.7 % U.S. government guaranteed mortgage-backed securities 1 1,496 8 0.5 2 5,581 150 2.7 State and municipal bonds 0 1 333 15 4.5 Mutual funds 1 1,088 14 1.3 1 1,953 135 6.9 $ 2,875 $ 23 $ 46,532 $ 556 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 LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | 6. LOANS AND ALLOWANCE FOR LOAN LOSSES Loans consisted of the following amounts: June 30, December 31, (In thousands) Commercial real estate $ 338,807 $ 303,036 Residential real estate: Residential 346,003 298,052 Home equity 48,109 43,512 Commercial and industrial 167,224 168,256 Consumer 1,332 1,534 Total Loans 901,475 814,390 Unearned premiums and deferred loan fees and costs, net 4,737 3,823 Allowance for loan losses (9,570 ) (8,840 ) $ 896,642 $ 809,373 During the six months ended June 30, 2016 and 2015, we purchased residential real estate loans aggregating $70.4 million and $32.0 million, respectively. 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 borrowers 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 June 30, 2016 and December 31, 2015, we serviced loans for participants aggregating $19.2 million and $19.5 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 loans 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 borrowers 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 managements 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 June 30, 2016 and 2015 is as follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) Three Months Ended Balance at March 31, 2015 $ 3,839 $ 1,978 $ 2,211 $ 22 $ (15 ) $ 8,035 Provision (credit) 11 149 191 14 (15 ) 350 Charge-offs (15 ) (70 ) (16 ) (101 ) Recoveries 5 2 4 11 Balance at June 30, 2015 $ 3,850 $ 2,117 $ 2,334 $ 24 $ (30 ) $ 8,295 Balance at March 31, 2016 $ 3,786 $ 2,429 $ 2,590 $ 18 $ 32 $ 8,855 Provision (credit) 75 374 207 8 (39 ) 625 Charge-offs (18 ) (18 ) Recoveries 95 1 12 108 Balance at June 30, 2016 $ 3,956 $ 2,804 $ 2,797 $ 20 $ (7 ) $ 9,570 Six Months Ended Balance at December 31, 2014 $ 3,705 $ 2,053 $ 2,174 $ 15 $ 1 $ 7,948 Provision (credit) 145 73 438 25 (31 ) 650 Charge-offs (15 ) (282 ) (29 ) (326 ) Recoveries 6 4 13 23 Balance at June 30, 2015 $ 3,850 $ 2,117 $ 2,334 $ 24 $ (30 ) $ 8,295 Balance at December 31, 2015 $ 3,856 $ 2,431 $ 2,485 $ 22 $ 46 $ 8,840 Provision (credit) (676 ) 422 312 20 (53 ) 25 Charge-offs (170 ) (50 ) (40 ) (260 ) Recoveries 946 1 18 965 Balance at June 30, 2016 $ 3,956 $ 2,804 $ 2,797 $ 20 $ (7 ) $ 9,570 Further information pertaining to the allowance for loan losses by segment at June 30, 2016 and December 31, 2015 follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) June 30, 2016 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 3,956 2,804 2,797 20 (7 ) 9,570 Total allowance for loan losses $ 3,956 $ 2,804 $ 2,797 $ 20 $ (7 ) $ 9,570 Loans individually evaluated and deemed impaired $ 3,594 $ 563 $ 3,598 $ $ $ 7,755 Loans collectively or individually evaluated and not deemed impaired 335,213 393,549 163,626 1,332 893,720 Total loans $ 338,807 $ 394,112 $ 167,224 $ 1,332 $ $ 901,475 December 31, 2015 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 3,856 2,431 2,485 22 46 8,840 Total allowance for loan losses $ 3,856 $ 2,431 $ 2,485 $ 22 $ 46 $ 8,840 Loans individually evaluated and deemed impaired 3,732 399 3,363 $ 7,494 Loans collectively or individually evaluated and not deemed impaired 299,304 341,165 164,893 1,534 806,896 Total loans $ 303,036 $ 341,564 $ 168,256 $ 1,534 $ $ 814,390 The following is a summary of past due and non-accrual loans by class at June 30, 2016 and December 31, 2015: 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) June 30, 2016 Commercial real estate $ 436 $ $ 528 $ 964 $ $ 2,609 Residential real estate: Residential 523 63 1,012 1,598 1,504 Home equity 405 72 477 122 Commercial and industrial 1,020 6 128 1,154 3,797 Consumer 18 4 22 11 Total $ 2,402 $ 145 $ 1,668 $ 4,215 $ $ 8,043 December 31, 2015 Commercial real estate $ 348 $ 730 $ 20 $ 1,098 $ $ 3,237 Residential real estate: Residential 638 908 1,546 1,470 Home equity 230 124 354 Commercial and industrial 127 649 445 1,221 3,363 Consumer 30 30 10 Total $ 1,373 $ 1,503 $ 1,373 $ 4,249 $ $ 8,080 The following is a summary of impaired loans by class at June 30, 2016 and December 31, 2015: Three Months Ended Six Months Ended At June 30, 2016 June 30, 2016 June 30, 2016 Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired loans without a valuation allowance: Commercial real estate $ 3,594 $ 4,384 $ 3,549 $ 20 $ 3,583 $ 32 Residential real estate 563 778 507 466 Commercial and industrial 3,598 4,736 3,531 3,472 Total 7,755 9,898 7,587 20 7,521 32 Total impaired loans $ 7,755 $ 9,898 $ 7,587 $ 20 $ 7,521 $ 32 Three Months Ended Six Months Ended At December 31, 2015 June 30, 2015 June 30, 2015 Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired loans without a valuation allowance: Commercial real estate $ 3,732 $ 4,403 $ 3,067 $ $ 3,075 Residential real estate 399 543 285 287 Commercial and industrial 3,363 4,408 4,020 4,121 Total 7,494 9,354 7,372 7,483 Total impaired loans $ 7,494 $ 9,354 $ 7,372 $ $ 7,483 $ All interest income recognized for impaired loans during the three and six months ended June 30, 2016 related to performing TDR loans and was recognized on the accrual basis. No interest income was recognized for impaired loans on a cash-basis method during the three and six months ended June 30, 2015. 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 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. A substandard impaired loan relationship in the amount of $5.1 million was designated a TDR during the three months ended June 30, 2016. The bank entered into a forbearance agreement which offered an interest only period. Due to the borrower continuing to experience declining sales, the interest only period was extended during the second quarter of 2016, resulting in the TDR classification. The loans are on non-accrual and are current. The loans are measured for impairment quarterly and appropriate reserves/charge offs have been taken. Three Months Ended Six Months Ended Number of Contracts Pre- Post- Number of Contracts Pre- Post- (Dollars in thousands) (Dollars in thousands) Troubled Debt Restructurings Commercial Real Estate 1 $ 1,975 $ 1,975 1 $ 1,975 $ 1,975 Commercial and Industrial 2 3,135 3,135 3 3,150 3,150 Residential 2 164 164 Total 3 $ 5,110 $ 5,110 6 $ 5,289 $ 5,289 A default occurs when a loan is 30 days or more past due. No TDRs defaulted within 12 months of restructuring during the three and six months ended June 30, 2016 and 2015. There were no charge-offs on TDRs during the three and six months ended June 30, 2016. There were $0 and $70,000 in charge-offs on TDRs during the three and six months ended June 30, 2015. 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 $47.2 million and $23.1 million at June 30, 2016 and December 31, 2015, 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 June 30, 2016 and December 31, 2015: Commercial Real Estate Residential 1-4 family Home Equity Commercial and Industrial Consumer Total (Dollars in thousands) June 30, 2016 Loans rated 1 3 $ 302,226 $ 344,499 $ 47,987 $ 132,077 $ 1,321 $ 828,110 Loans rated 4 29,836 13,235 43,071 Loans rated 5 135 4,590 4,725 Loans rated 6 6,610 1,504 122 17,322 11 25,569 $ 338,807 $ 346,003 $ 48,109 $ 167,224 $ 1,332 $ 901,475 December 31, 2015 Loans rated 1 3 $ 269,124 $ 296,582 $ 43,512 $ 135,416 $ 1,524 $ 746,158 Loans rated 4 27,053 16,060 43,113 Loans rated 5 138 434 572 Loans rated 6 6,721 1,470 16,346 10 24,547 $ 303,036 $ 298,052 $ 43,512 $ 168,256 $ 1,534 $ 814,390 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | 7. SHARE-BASED COMPENSATION 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. Authorized but unissued shares are issued to awardees upon vesting of such awards. Any shares not issued because vesting requirements are not met will again be available for issuance under the plans. In January 2015, 48,560 shares were granted under this plan and 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. In 2016, the Compensation Committee (the Committee) approved the long-term incentive program (the LTI Plan). The LTI Plan provides a periodic award that is both performance and retention based in that it is designed to recognize the executives responsibilities, reward demonstrated performance and leadership and to retain such executives. The objective of the LTI Plan is to align compensation for the named executive officers over a multi-year period directly with the interests of our shareholders by motivating and rewarding creation and preservation of long-term financial strength, shareholder value and relative shareholder return. The Committee approved the 2016 LTI Plan with the following objectives: ● Align executives with the Companys shareholder interest; ● increase Company executive stock ownership/holdings; ● ensure sound risk management by providing a balanced view of performance and aligning reward with the time horizon of risk; ● position the Companys total compensation to be competitive with market for meeting performance goals; ● motivate and reward long-term sustained performance; and ● enable the Company to attract and retain talent needed to drive the Companys success. The LTI Plan includes eligible officers of the Company who are nominated by the Companys Chief Executive Officer and approved by the Committee. The LTI Plan is triggered by the Companys achievement of satisfactory safety and soundness results from its most recent regulatory examination. Stock grants made through the 2016 LTI plan will be a combination of 50% time-vested restricted stock and 50% performance-based restricted stock. The target opportunity provided through the LTI plan is $60,000 for the CEO and $30,000 for the remaining participants. Time-based restricted stock will vest ratably (1/3 per year) over a three-year period while the performance-based restricted stock will be vested at the end of the three-year performance period. For the performance shares, the primary performance metric for 2016 awards is return on equity. Performance shares will be earned based upon how the Company performs relative to threshold and target absolute goals (i.e. Company-specific, not relative to a peer index) over the three-year performance period. The threshold amount for the performance period will be a return on equity of 5.85% and a target amount of 6.32%. Participants will be able to earn between 50% (for threshold performance) and 100% of the target amount for the performance shares but will not earn additional shares if performance exceeds target performance. The cap on potential earnings was implemented in 2016 in order to maintain the overall expense of the program at a certain level based upon our budget. In May 2016, 62,740 shares were granted under the LTI Plan. Of this total, 36,543 shares are retention-based and vest ratably over a three year period. The remaining 26,197 shares granted are performance based and are subject to the achievement of the 2016 LTI performance metric before vesting is realized after a three year period. 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. Shares granted under performance-based conditions are monitored on a quarterly basis in order to compare actual results to the performance metric established, with any necessary adjustments being recognized through share-based compensation expense and unearned compensation. At June 30, 2016, an additional 404,700 shares were available for future grants under this plan. Our stock award plan activity for the six months ended June 30, 2016 and 2015 is summarized below: Unvested Stock Awards Outstanding Shares Weighted Outstanding at December 31, 2015 54,160 $ 7.28 Shares granted 62,740 7.73 Shares vested (11,200 ) 7.18 Outstanding at June 30, 2016 105,700 $ 7.56 Outstanding at December 31, 2014 13,000 $ 8.07 Shares granted 48,560 $ 7.18 Outstanding at June 30, 2015 61,560 $ 7.37 |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 8. 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, a line of credit with the FHLBB and customer repurchase agreements, which have an original maturity of one day. Short-term borrowings issued by the FHLBB were $120.0 million and $93.8 million at June 30, 2016 and December 31, 2015, respectively. Customer repurchase agreements were $24.7 million at June 30, 2016 and $34.7 million at December 31, 2015. 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. We have an Ideal Way line of credit with the FHLBB for $9.5 million at June 30, 2016 and December 31, 2015. Interest on this line of credit is payable at a rate determined and reset by the FHLBB on a daily basis. The outstanding principal is due daily, but the portion not repaid will be automatically renewed. There were no advances outstanding on the line of credit as of June 30, 2016 or December 31, 2015. 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 these lines of credit at June 30, 2016 or December 31, 2015. 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 with an original maturity of one year or more and customer repurchase agreements linked to deposit accounts with no stated maturity. At June 30, 2016, we had $72.0 million in long-term debt with the FHLBB. This compares to $147.4 million in long-term debt with FHLBB advances at December 31, 2015. Long-term customer repurchase agreements were $6.0 million and $5.9 million at June 30, 2016 and December 31, 2015, respectively. During the six months ended June 30, 2016, we prepaid FHLBB borrowings in the amount $42.5 million and incurred a prepayment expense of $915,000. The borrowings had a weighted average rate of 2.29%. Customer repurchase agreements are collateralized by government-sponsored enterprise obligations with fair value of $5.0 million and $6.5 million, and mortgage backed securities with a fair value of $65.1 million and $63.5 million, at June 30, 2016 and December 31, 2015, respectively. The securities collateralizing repurchase agreements are subject to fluctuations in fair value. We monitor the fair value of the collateral on a periodic basis, and would pledge additional collateral if necessary based on changes in fair value of collateral or the balances of the repurchase agreements. All FHLBB advances are collateralized by a blanket lien on our owner occupied residential real estate loans and certain of our commercial real estate loans and mortgage-backed securities. |
PENSION BENEFITS
PENSION BENEFITS | 6 Months Ended |
Jun. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
PENSION BENEFITS | 9. PENSION BENEFITS The following table provides information regarding net pension benefit costs for the periods shown: Three Months Ended June 30, Six Months Ended, June 30, 2016 2015 2016 2015 (In thousands) Service cost $ 276 $ 305 $ 569 $ 614 Interest cost 240 225 480 451 Expected return on assets (275 ) (283 ) (549 ) (567 ) Actuarial loss 31 31 47 62 Net periodic pension cost $ 272 $ 278 $ 547 $ 560 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 plans actuaries. We have not yet determined how much we expect to contribute to our pension plan in 2016. No contributions have been made to the plan for the six months ended June 30, 2016. The pension plan assets are invested in group annuity contracts with the Principal Financial Group, who also acts as third-party administrator for our 401(k) and ESOP plans. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | 10. DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our assets and liabilities and the use of derivative financial instruments. Specifically, we entered into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to certain variable rate loan assets and variable rate borrowings. 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 June 30, 2016 and December 31, 2015: Notional Weighted Average Weighted Average Rate Estimated Fair June 30, 2016 Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Interest rate swaps on FHLBB borrowings $ 40,000 1.8 0.63 % 1.52 % $ (642 ) Forward starting interest rate swaps on short-term FHLBB borrowings 35,000 6.2 3.54 % (5,098 ) Total cash flow hedges $ 75,000 3.9 $ (5,740 ) Notional Weighted Average Weighted Average Rate Estimated Fair December 31, 2015 Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Interest rate swaps on short term FHLBB borrowings $ 40,000 2.3 0.32 % 1.52 % $ (330 ) Forward starting interest rate swaps on short-term FHLBB borrowings 67,500 6.5 3.42 % (5,734 ) Total cash flow hedges $ 107,500 4.9 $ (6,064 ) These amounts are included in other liabilities on the accompanying consolidated balance sheet. The forward-starting interest rate swaps with notional amounts of $35.0 million commence in 2016. During the first quarter of 2016, we terminated a forward-starting interest rate swap with a notional amount of $32.5 million and incurred a termination fee of $3.4 million. During 2015, we terminated forward-starting interest rate swaps with a notional amount of $47.5 million and incurred a termination fee of $2.4 million. The termination fees will be amortized as a reclassification of other comprehensive income into interest expense over the terms of the previously hedged borrowings, which were six and five years for the swaps terminated in 2016 and 2015, 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, 2016 or 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 payment of variable interest on existing financial instruments). 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 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (In thousands) Interest rate swaps $ (729 ) $ 1,492 $ (3,280 ) $ (1,277 ) 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 June 30, 2016, 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 $5.8 million. As of June 30, 2016, we have minimum collateral posting thresholds with certain of our derivative counterparties and have a mortgage-backed security with a fair value of $4.7 million and $1.6 million of cash posted as collateral against our obligations under these agreements. If we had breached any of these provisions at June 30, 2016, we could have been required to settle our obligations under the agreements at the termination value. |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | 11. 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 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 Securities Federal Home Loan Bank and other restricted stock Loans receivable Accrued interest Deposit liabilities Short-term borrowings and long-term debt Interest rate swaps Commitments to extend credit Assets and liabilities measured at fair value on a recurring basis are summarized below: June 30, 2016 Level 1 Level 2 Level 3 Total Assets: (In thousands) Government-sponsored residential mortgage-backed securities $ $ 189,197 $ $ 189,197 U.S. Government guaranteed residential mortgage-backed securities 19,113 19,113 Corporate bonds 53,638 53,638 State and municipal bonds 4,361 4,361 Government-sponsored enterprise obligations 22,172 22,172 Mutual funds 6,407 6,407 Common and preferred stock 1,677 1,677 Total assets $ 8,084 $ 288,481 $ $ 296,565 Liabilities: Interest rate swaps $ $ 5,740 $ $ 5,740 December 31, 2015 Level 1 Level 2 Level 3 Total Assets: (In thousands) Government-sponsored mortgage-backed securities $ $ 135,959 $ $ 135,959 U.S. Government guaranteed mortgage-backed securities 10,903 10,903 Corporate bonds 21,136 21,136 State and municipal bonds 2,801 2,801 Government-sponsored enterprise obligations 3,951 3,951 Mutual funds 6,247 6,247 Common and preferred stock 1,593 1,593 Total assets $ 7,840 $ 174,750 $ $ 182,590 Liabilities: Interest rate swaps $ $ 6,064 $ $ 6,064 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 June 30, 2016 and 2015. Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at June 30, 2016 and 2015. At Three Months Ended Six Months Ended Level 1 Level 2 Level 3 Total Total (In thousands) Impaired Loans $ $ $ 119 $ (50 ) $ (220 ) Total Assets $ $ $ 119 $ (50 ) $ (220 ) At Three Months Ended Six Months Ended Level 1 Level 2 Level 3 Total Total (In thousands) Impaired Loans $ $ $ 158 $ ( 70 ) $ ( 282 ) Total Assets $ $ $ 158 $ (70 ) $ ( 282 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 and six months ended June 30, 2016 and 2015. We did not measure any liabilities at fair value on a 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: June 30, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 21,267 $ 21,267 $ $ $ 21,267 Securities available for sale 296,565 8,084 288,481 296,565 Federal Home Loan Bank of Boston and other restricted stock 11,267 11,267 11,267 Loans - net 896,642 896,701 896,701 Accrued interest receivable 3,712 3,712 3,712 Liabilities: Deposits 920,912 924,321 924,321 Short-term borrowings 144,707 144,725 144,725 Long-term debt 78,032 79,971 79,971 Accrued interest payable 313 313 313 Derivative liabilities 5,740 5,740 5,740 December 31, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 13,703 $ 13,703 $ $ $ 13,703 Securities available for sale 182,590 7,840 174,750 182,590 Securities held to maturity 238,219 237,619 237,619 Federal Home Loan Bank of Boston and other restricted stock 15,074 15,074 15,074 Loans - net 809,373 797,596 797,596 Accrued interest receivable 3,878 3,878 3,878 Derivative assets Liabilities: Deposits 900,363 901,400 901,400 Short-term borrowings 128,407 128,407 128,407 Long-term debt 153,358 155,433 155,433 Accrued interest payable 446 446 446 Derivative liabilities 6,064 6,064 6,064 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 12. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this Update create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual reporting periods, including interim periods, beginning after December 15, 2017. Early application is permitted, but only for annual reporting periods beginning after December 31, 2016. We do not expect the application of this guidance to have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments Overall, (Subtopic 825-10). The amendments in this Update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Targeted improvements to generally accepted accounting principles include the requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income and the elimination of the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We do not expect the application of this guidance to have a material impact on our consolidated financial statements. In February of 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this Update is permitted for all entities. Management is currently evaluating the impact to the consolidated financial statements of adopting this Update. In March 2016, the FASB issued ASU 2016-09, Compensation Stock Compensation (Topic 718). This Update was issued as part of the FASBs simplification initiative. The areas for simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition, amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. The amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. Management is currently evaluating the impact to the consolidated financial statements of adopting this Update. On June 16, 2016, the FASB issued ASU No. 2016-13, Financial InstrumentsCredit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. The ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entitys portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within that fiscal years. Early application will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact of adopting this ASU on the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The Banks 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 |
Estimates | Estimates |
Basis of Presentation | Basis of Presentation 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, 2015, included in our Annual Report on Form 10-K for the year ended December 31, 2015 (the 2015 Annual Report). |
Reclassifications | Reclassifications |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
EARNINGS PER COMMON SHARE: | |
Schedule of earnings per common share | Earnings per common share for the three and six months ended June 30, 2016 and 2015 have been computed based on the following: Three Months Ended Six Months Ended 2016 2015 2016 2015 (In thousands, except per share data) Net income applicable to common stock $ 389 $ 1,364 $ 2,353 $ 2,702 Average number of common shares issued 18,294 18,541 18,281 18,632 Less: Average unallocated ESOP Shares (945 ) (1,021 ) (954 ) (1,031 ) Less: Average unvested equity incentive plan shares (11 ) (5 ) Average number of common shares outstanding used to calculate basic and diluted earnings per common share 17,338 17,520 17,322 17,601 Basic and diluted earnings per share $ 0.02 $ 0.08 $ 0.14 $ 0.15 |
COMPRENSIVE INCOME_LOSS (Tables
COMPRENSIVE INCOME/LOSS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Comprehensive Incomeloss | |
Schedule of accumulated other comprehensive loss in sharesholders equity | The components of accumulated other comprehensive loss included in shareholders equity are as follows: June 30, December 31, (In thousands) Net unrealized (loss) gain on securities available for sale $ 3,152 $ (2,343 ) Tax effect (1,080 ) 812 Net-of-tax amount 2,072 (1,531 ) Net unrealized losses on securities transferred from available-for-sale to held-to-maturity (2,314 ) Tax effect 799 Net-of-tax amount (1,515 ) Fair value of derivatives used for cash flow hedges (5,740 ) (6,064 ) Termination fee (5,271 ) (2,270 ) Total derivatives (11,011 ) (8,334 ) Tax effect 3,743 2,833 Net-of-tax amount (7,268 ) (5,501 ) Unrecognized deferred loss pertaining to defined benefit plan (3,638 ) (3,685 ) Tax effect 1,238 1,254 Net-of-tax amount (2,400 ) (2,431 ) Accumulated other comprehensive loss $ (7,596 ) $ (10,978 ) |
Schedule of changes in accumulated other loss | The following table presents changes in accumulated other loss for the periods ended June 30, 2016 and 2015 by component: Securities Derivatives Defined Benefit Plans Accumulated Other Comprehensive Loss (In thousands) Balance at December 31, 2014 $ (728 ) $ (3,788 ) $ (2,959 ) $ (7,475 ) Current-period other comprehensive income (loss) (1,967 ) (641 ) 41 (2,567 ) Balance at June 30, 2015 $ (2,695 ) $ (4,429 ) $ (2,918 ) $ (10,042 ) Balance at December 31, 2015 $ (3,046 ) $ (5,501 ) $ (2,431 ) $ (10,978 ) Current-period other comprehensive income (loss) 5,118 (1,767 ) 31 3,382 Balance at June 30, 2016 $ 2,072 $ (7,268 ) $ (2,400 ) $ (7,596 ) |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 Amortized Cost Gross Gross Fair Value (In thousands) Available for sale securities: Government-sponsored mortgage-backed securities $ 187,362 $ 2,092 $ (257 ) $ 189,197 U.S. government guaranteed mortgage-backed securities 19,143 128 (158 ) 19,113 Corporate bonds 52,646 992 53,638 State and municipal bonds 4,294 82 (15 ) 4,361 Government-sponsored enterprise obligations 22,149 23 22,172 Mutual funds 6,509 47 (149 ) 6,407 Common and preferred stock 1,309 368 1,677 Total $ 293,412 $ 3,732 $ (579 ) $ 296,565 December 31, 2015 Amortized Cost Gross Gross Fair Value (In thousands) Available for sale securities: Government-sponsored mortgage-backed securities $ 138,186 $ $ (2,227 ) $ 135,959 U.S. government guaranteed mortgage-backed securities 11,030 (127 ) 10,903 Corporate bonds 21,176 45 (85 ) 21,136 State and municipal bonds 2,794 7 2,801 Government-sponsored enterprise obligations 4,000 (49 ) 3,951 Mutual funds 6,438 (191 ) 6,247 Common and preferred stock 1,309 284 1,593 Total available for sale securities 184,933 336 (2,679 ) 182,590 Held to maturity securities: Government-sponsored mortgage-backed securities $ 148,085 $ 1,319 $ (1,515 ) $ 147,889 U.S. government guaranteed mortgage-backed securities 29,174 166 (66 ) 29,274 Corporate bonds 23,969 64 (316 ) 23,717 State and municipal bonds 6,845 68 (102 ) 6,811 Government-sponsored enterprise obligations 30,146 254 (472 ) 29,928 Total held to maturity securities 238,219 1,871 (2,471 ) 237,619 Total $ 423,152 $ 2,207 $ (5,150 ) $ 420,209 |
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 June 30, 2016, by maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or repay obligations. June 30, 2016 Amortized Cost Fair Value (In thousands) Mortgage-backed securities: Due after one year through five years $ 12,123 $ 12,360 Due after five years through ten years 27,777 28,360 Due after ten years 166,605 167,590 Total $ 206,505 $ 208,310 Debt securities: Due in one year or less $ 2,205 $ 2,216 Due after one year through five years 27,745 28,249 Due after five years through ten years 42,053 42,582 Due after ten years 7,086 7,124 Total $ 79,089 $ 80,171 |
Schedule of 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 and six months ended June 30, 2016 and 2015 are as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (In thousands) Gross gains realized $ $ 276 $ 1,520 $ 1,163 Gross losses realized (2 ) (837 ) (70 ) Net gain realized $ (2 ) $ 276 $ 683 $ 1,093 |
Schedule of securities with gross unrealized losses in continuous loss position | Information pertaining to securities with gross unrealized losses at June 30, 2016, and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: June 30, 2016 Less Than Twelve Months Over Twelve Months Gross Fair Gross Unrealized Losses Fair (In thousands) Available for sale: Government-sponsored mortgage-backed securities $ 1 $ 290 $ 256 $ 38,409 U.S. government guaranteed mortgage-backed securities 8 1,488 150 5,431 State and municipal bonds 15 318 Mutual funds 14 1,074 135 1,818 Total $ 23 $ 2,852 $ 556 $ 45,976 December 31, 2015 Less Than 12 Months Over 12 Months Gross Fair Gross Fair (In thousands) Available for sale: Government-sponsored mortgage-backed securities $ 2,090 $ 129,731 $ 137 $ 6,228 U.S. government guaranteed mortgage-backed securities 116 10,290 11 613 Corporate bonds 85 13,374 Government-sponsored enterprise obligations 49 3,951 Mutual funds 32 4,478 159 1,769 Total available for sale 2,372 161,824 307 8,610 Held to maturity: Government-sponsored mortgage-backed securities 947 45,760 568 32,825 U.S. government guaranteed mortgage-backed securities 37 2,522 29 15,401 Corporate bonds 204 5,412 112 13,382 State and municipal bonds 102 4,809 Government-sponsored enterprise obligations 472 20,193 Total held to maturity 1,188 53,694 1,283 86,610 Total $ 3,560 $ 215,518 $ 1,590 $ 95,220 June 30, 2016 Less Than 12 Months Over 12 Months Number of Securities Amortized Cost Basis Gross Loss Depreciation from Amortized Cost Basis (%) Number of Securities Amortized Cost Basis Gross Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Government-sponsored mortgage-backed securities 1 $ 291 $ 1 0.3 % 11 $ 38,665 $ 256 0.7 % U.S. government guaranteed mortgage-backed securities 1 1,496 8 0.5 2 5,581 150 2.7 State and municipal bonds 0 1 333 15 4.5 Mutual funds 1 1,088 14 1.3 1 1,953 135 6.9 $ 2,875 $ 23 $ 46,532 $ 556 |
LOANS AND ALLOWANCE FOR LOAN 26
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of loans | Loans consisted of the following amounts: June 30, December 31, (In thousands) Commercial real estate $ 338,807 $ 303,036 Residential real estate: Residential 346,003 298,052 Home equity 48,109 43,512 Commercial and industrial 167,224 168,256 Consumer 1,332 1,534 Total Loans 901,475 814,390 Unearned premiums and deferred loan fees and costs, net 4,737 3,823 Allowance for loan losses (9,570 ) (8,840 ) $ 896,642 $ 809,373 |
Schedule of 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 June 30, 2016 and 2015 is as follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) Three Months Ended Balance at March 31, 2015 $ 3,839 $ 1,978 $ 2,211 $ 22 $ (15 ) $ 8,035 Provision (credit) 11 149 191 14 (15 ) 350 Charge-offs (15 ) (70 ) (16 ) (101 ) Recoveries 5 2 4 11 Balance at June 30, 2015 $ 3,850 $ 2,117 $ 2,334 $ 24 $ (30 ) $ 8,295 Balance at March 31, 2016 $ 3,786 $ 2,429 $ 2,590 $ 18 $ 32 $ 8,855 Provision (credit) 75 374 207 8 (39 ) 625 Charge-offs (18 ) (18 ) Recoveries 95 1 12 108 Balance at June 30, 2016 $ 3,956 $ 2,804 $ 2,797 $ 20 $ (7 ) $ 9,570 Six Months Ended Balance at December 31, 2014 $ 3,705 $ 2,053 $ 2,174 $ 15 $ 1 $ 7,948 Provision (credit) 145 73 438 25 (31 ) 650 Charge-offs (15 ) (282 ) (29 ) (326 ) Recoveries 6 4 13 23 Balance at June 30, 2015 $ 3,850 $ 2,117 $ 2,334 $ 24 $ (30 ) $ 8,295 Balance at December 31, 2015 $ 3,856 $ 2,431 $ 2,485 $ 22 $ 46 $ 8,840 Provision (credit) (676 ) 422 312 20 (53 ) 25 Charge-offs (170 ) (50 ) (40 ) (260 ) Recoveries 946 1 18 965 Balance at June 30, 2016 $ 3,956 $ 2,804 $ 2,797 $ 20 $ (7 ) $ 9,570 |
Schedule of information pertaining to the allowance for loan losses by segment | Further information pertaining to the allowance for loan losses by segment at June 30, 2016 and December 31, 2015 follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) June 30, 2016 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 3,956 2,804 2,797 20 (7 ) 9,570 Total allowance for loan losses $ 3,956 $ 2,804 $ 2,797 $ 20 $ (7 ) $ 9,570 Loans individually evaluated and deemed impaired $ 3,594 $ 563 $ 3,598 $ $ $ 7,755 Loans collectively or individually evaluated and not deemed impaired 335,213 393,549 163,626 1,332 893,720 Total loans $ 338,807 $ 394,112 $ 167,224 $ 1,332 $ $ 901,475 December 31, 2015 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 3,856 2,431 2,485 22 46 8,840 Total allowance for loan losses $ 3,856 $ 2,431 $ 2,485 $ 22 $ 46 $ 8,840 Loans individually evaluated and deemed impaired 3,732 399 3,363 $ 7,494 Loans collectively or individually evaluated and not deemed impaired 299,304 341,165 164,893 1,534 806,896 Total loans $ 303,036 $ 341,564 $ 168,256 $ 1,534 $ $ 814,390 |
Schedule of past due and non-accrual loans by class | The following is a summary of past due and non-accrual loans by class at June 30, 2016 and December 31, 2015: 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) June 30, 2016 Commercial real estate $ 436 $ $ 528 $ 964 $ $ 2,609 Residential real estate: Residential 523 63 1,012 1,598 1,504 Home equity 405 72 477 122 Commercial and industrial 1,020 6 128 1,154 3,797 Consumer 18 4 22 11 Total $ 2,402 $ 145 $ 1,668 $ 4,215 $ $ 8,043 December 31, 2015 Commercial real estate $ 348 $ 730 $ 20 $ 1,098 $ $ 3,237 Residential real estate: Residential 638 908 1,546 1,470 Home equity 230 124 354 Commercial and industrial 127 649 445 1,221 3,363 Consumer 30 30 10 Total $ 1,373 $ 1,503 $ 1,373 $ 4,249 $ $ 8,080 |
Schedule of impaired loans by class | The following is a summary of impaired loans by class at June 30, 2016 and December 31, 2015: Three Months Ended Six Months Ended At June 30, 2016 June 30, 2016 June 30, 2016 Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired loans without a valuation allowance: Commercial real estate $ 3,594 $ 4,384 $ 3,549 $ 20 $ 3,583 $ 32 Residential real estate 563 778 507 466 Commercial and industrial 3,598 4,736 3,531 3,472 Total 7,755 9,898 7,587 20 7,521 32 Total impaired loans $ 7,755 $ 9,898 $ 7,587 $ 20 $ 7,521 $ 32 Three Months Ended Six Months Ended At December 31, 2015 June 30, 2015 June 30, 2015 Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired loans without a valuation allowance: Commercial real estate $ 3,732 $ 4,403 $ 3,067 $ $ 3,075 Residential real estate 399 543 285 287 Commercial and industrial 3,363 4,408 4,020 4,121 Total 7,494 9,354 7,372 7,483 Total impaired loans $ 7,494 $ 9,354 $ 7,372 $ $ 7,483 $ |
Schedule of troubled debt restructurings | The loans are on non-accrual and are current. The loans are measured for impairment quarterly and appropriate reserves/charge offs have been taken. Three Months Ended Six Months Ended Number of Contracts Pre- Post- Number of Contracts Pre- Post- (Dollars in thousands) (Dollars in thousands) Troubled Debt Restructurings Commercial Real Estate 1 $ 1,975 $ 1,975 1 $ 1,975 $ 1,975 Commercial and Industrial 2 3,135 3,135 3 3,150 3,150 Residential 2 164 164 Total 3 $ 5,110 $ 5,110 6 $ 5,289 $ 5,289 |
Schedule of loans by risk rating | The following table presents our loans by risk rating at June 30, 2016 and December 31, 2015: Commercial Real Estate Residential 1-4 family Home Equity Commercial and Industrial Consumer Total (Dollars in thousands) June 30, 2016 Loans rated 1 3 $ 302,226 $ 344,499 $ 47,987 $ 132,077 $ 1,321 $ 828,110 Loans rated 4 29,836 13,235 43,071 Loans rated 5 135 4,590 4,725 Loans rated 6 6,610 1,504 122 17,322 11 25,569 $ 338,807 $ 346,003 $ 48,109 $ 167,224 $ 1,332 $ 901,475 December 31, 2015 Loans rated 1 3 $ 269,124 $ 296,582 $ 43,512 $ 135,416 $ 1,524 $ 746,158 Loans rated 4 27,053 16,060 43,113 Loans rated 5 138 434 572 Loans rated 6 6,721 1,470 16,346 10 24,547 $ 303,036 $ 298,052 $ 43,512 $ 168,256 $ 1,534 $ 814,390 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock award and stock option plans activity | Our stock award plan activity for the six months ended June 30, 2016 and 2015 is summarized below: Unvested Stock Awards Outstanding Shares Weighted Outstanding at December 31, 2015 54,160 $ 7.28 Shares granted 62,740 7.73 Shares vested (11,200 ) 7.18 Outstanding at June 30, 2016 105,700 $ 7.56 Outstanding at December 31, 2014 13,000 $ 8.07 Shares granted 48,560 $ 7.18 Outstanding at June 30, 2015 61,560 $ 7.37 |
PENSION BENEFITS (Tables)
PENSION BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans 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 Six Months Ended, 2016 2015 2016 2015 (In thousands) Service cost $ 276 $ 305 $ 569 $ 614 Interest cost 240 225 480 451 Expected return on assets (275 ) (283 ) (549 ) (567 ) Actuarial loss 31 31 47 62 Net periodic pension cost $ 272 $ 278 $ 547 $ 560 |
DERIVATIVES AND HEDGING ACTIV29
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of information about cash flow hedges | The following table presents information about our cash flow hedges at June 30, 2016 and December 31, 2015: Notional Weighted Average Weighted Average Rate Estimated Fair June 30, 2016 Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Interest rate swaps on FHLBB borrowings $ 40,000 1.8 0.63 % 1.52 % $ (642 ) Forward starting interest rate swaps on short-term FHLBB borrowings 35,000 6.2 3.54 % (5,098 ) Total cash flow hedges $ 75,000 3.9 $ (5,740 ) Notional Weighted Average Weighted Average Rate Estimated Fair December 31, 2015 Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Interest rate swaps on short term FHLBB borrowings $ 40,000 2.3 0.32 % 1.52 % $ (330 ) Forward starting interest rate swaps on short-term FHLBB borrowings 67,500 6.5 3.42 % (5,734 ) Total cash flow hedges $ 107,500 4.9 $ (6,064 ) |
Schedule of the pre-tax net 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 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (In thousands) Interest rate swaps $ (729 ) $ 1,492 $ (3,280 ) $ (1,277 ) |
FAIR VALUE OF ASSETS AND LIAB30
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 Level 1 Level 2 Level 3 Total Assets: (In thousands) Government-sponsored residential mortgage-backed securities $ $ 189,197 $ $ 189,197 U.S. Government guaranteed residential mortgage-backed securities 19,113 19,113 Corporate bonds 53,638 53,638 State and municipal bonds 4,361 4,361 Government-sponsored enterprise obligations 22,172 22,172 Mutual funds 6,407 6,407 Common and preferred stock 1,677 1,677 Total assets $ 8,084 $ 288,481 $ $ 296,565 Liabilities: Interest rate swaps $ $ 5,740 $ $ 5,740 December 31, 2015 Level 1 Level 2 Level 3 Total Assets: (In thousands) Government-sponsored mortgage-backed securities $ $ 135,959 $ $ 135,959 U.S. Government guaranteed mortgage-backed securities 10,903 10,903 Corporate bonds 21,136 21,136 State and municipal bonds 2,801 2,801 Government-sponsored enterprise obligations 3,951 3,951 Mutual funds 6,247 6,247 Common and preferred stock 1,593 1,593 Total assets $ 7,840 $ 174,750 $ $ 182,590 Liabilities: Interest rate swaps $ $ 6,064 $ $ 6,064 |
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 June 30, 2016 and 2015. Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at June 30, 2016 and 2015. At Three Months Ended Six Months Ended Level 1 Level 2 Level 3 Total Total (In thousands) Impaired Loans $ $ $ 119 $ (50 ) $ (220 ) Total Assets $ $ $ 119 $ (50 ) $ (220 ) At Three Months Ended Six Months Ended Level 1 Level 2 Level 3 Total Total (In thousands) Impaired Loans $ $ $ 158 $ ( 70 ) $ ( 282 ) Total Assets $ $ $ 158 $ (70 ) $ ( 282 |
Summary of fair values of financial instruments | 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: June 30, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 21,267 $ 21,267 $ $ $ 21,267 Securities available for sale 296,565 8,084 288,481 296,565 Federal Home Loan Bank of Boston and other restricted stock 11,267 11,267 11,267 Loans - net 896,642 896,701 896,701 Accrued interest receivable 3,712 3,712 3,712 Liabilities: Deposits 920,912 924,321 924,321 Short-term borrowings 144,707 144,725 144,725 Long-term debt 78,032 79,971 79,971 Accrued interest payable 313 313 313 Derivative liabilities 5,740 5,740 5,740 December 31, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 13,703 $ 13,703 $ $ $ 13,703 Securities available for sale 182,590 7,840 174,750 182,590 Securities held to maturity 238,219 237,619 237,619 Federal Home Loan Bank of Boston and other restricted stock 15,074 15,074 15,074 Loans - net 809,373 797,596 797,596 Accrued interest receivable 3,878 3,878 3,878 Derivative assets Liabilities: Deposits 900,363 901,400 901,400 Short-term borrowings 128,407 128,407 128,407 Long-term debt 153,358 155,433 155,433 Accrued interest payable 446 446 446 Derivative liabilities 6,064 6,064 6,064 |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Jun. 30, 2016Number |
Massachusetts and Granby and Enfield, Connecticut [Member] | |
Number of banking offices | 13 |
BUSINESS COMBINATION (Details N
BUSINESS COMBINATION (Details Narrative) - Chicopee Bancorp, Inc [Member] | Apr. 04, 2016shares |
Business Acquisition [Line Items] | |
Description of equity interest issued | Each outstanding share of Chicopee common stock will be converted into the right to receive 2.425 shares of the Westfield Financials common stock. |
Number of shares issuable in connection with acquisition | 2.425 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
EARNINGS PER COMMON SHARE: | ||||
Net income applicable to common stock | $ 389 | $ 1,364 | $ 2,353 | $ 2,702 |
Average number of common shares issued | 18,294 | 18,541 | 18,281 | 18,632 |
Less: Average unallocated ESOP Shares | (945) | (1,021) | (954) | (1,031) |
Less: Average unvested equity incentive plan shares | (11) | (5) | ||
Average number of common shares outstanding used to calculate basic and diluted earnings per common share | 17,338 | 17,520 | 17,322 | 17,601 |
Basic and diluted earnings per share (in dollars per share) | $ 0.02 | $ 0.08 | $ 0.14 | $ 0.15 |
COMPREHENSIVE INCOME_LOSS (Deta
COMPREHENSIVE INCOME/LOSS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), net of tax amount | $ (7,596) | $ (10,978) | $ (10,042) | $ (7,475) |
Net unrealized loss (gain) on securities AFS [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), before tax | 3,152 | (2,343) | ||
Tax effect | (1,080) | 812 | ||
Accumulated other comprehensive income (loss), net of tax amount | 2,072 | (1,531) | ||
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 | (2,314) | |||
Tax effect | 799 | |||
Accumulated other comprehensive income (loss), net of tax amount | (1,515) | |||
Fair value of derivatives used for cash flow hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), before tax | (5,740) | (6,064) | ||
Derivative Termination Fee | (5,271) | (2,270) | ||
Total derivatives | (11,011) | (8,334) | ||
Tax effect | 3,743 | 2,833 | ||
Accumulated other comprehensive income (loss), net of tax amount | (7,268) | (5,501) | (4,429) | (3,788) |
Unrecognized deferred loss pertaining to defined benefit plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), before tax | (3,638) | (3,685) | ||
Tax effect | 1,238 | 1,254 | ||
Accumulated other comprehensive income (loss), net of tax amount | $ (2,400) | $ (2,431) | $ (2,918) | $ (2,959) |
COMPREHENSIVE INCOME_LOSS (De35
COMPREHENSIVE INCOME/LOSS (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]] | ||||
Beginning balance | $ (10,978) | $ (7,475) | ||
Current-period other comprehensive income (loss) | $ 1,488 | $ (1,014) | 3,382 | (2,567) |
Ending balance | (7,596) | (10,042) | (7,596) | (10,042) |
Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]] | ||||
Beginning balance | (3,046) | (728) | ||
Current-period other comprehensive income (loss) | 5,118 | (1,967) | ||
Ending balance | 2,072 | (2,695) | 2,072 | (2,695) |
Fair value of derivatives used for cash flow hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]] | ||||
Beginning balance | (5,501) | (3,788) | ||
Current-period other comprehensive income (loss) | (1,767) | (641) | ||
Ending balance | (7,268) | (4,429) | (7,268) | (4,429) |
Unrecognized deferred loss pertaining to defined benefit plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]] | ||||
Beginning balance | (2,431) | (2,959) | ||
Current-period other comprehensive income (loss) | 31 | 41 | ||
Ending balance | $ (2,400) | $ (2,918) | $ (2,400) | $ (2,918) |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-For-Sale Securities | ||
Amortized Cost | $ 293,412 | $ 184,933 |
Gross Unrealized Gains | 3,732 | 336 |
Gross Unrealized Losses | (579) | (2,679) |
Fair Value | 296,565 | 182,590 |
Held-to-maturity securities | ||
Amortized Cost | 238,219 | |
Gross Unrealized Gains | 1,871 | |
Gross Unrealized Losses | (2,471) | |
Fair Value | 237,619 | |
Total | ||
Amortized Cost | 423,152 | |
Gross Unrealized Gains | 2,207 | |
Gross Unrealized Losses | (5,150) | |
Fair Value | 420,209 | |
Government-Sponsored Mortgage-Backed Securities [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 187,362 | 138,186 |
Gross Unrealized Gains | 2,092 | |
Gross Unrealized Losses | (257) | (2,227) |
Fair Value | 189,197 | 135,959 |
Held-to-maturity securities | ||
Amortized Cost | 148,085 | |
Gross Unrealized Gains | 1,319 | |
Gross Unrealized Losses | (1,515) | |
Fair Value | 147,889 | |
US Government Guaranteed Mortgage-Backed Securities [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 19,143 | 11,030 |
Gross Unrealized Gains | 128 | |
Gross Unrealized Losses | (158) | (127) |
Fair Value | 19,113 | 10,903 |
Held-to-maturity securities | ||
Amortized Cost | 29,174 | |
Gross Unrealized Gains | 166 | |
Gross Unrealized Losses | (66) | |
Fair Value | 29,274 | |
Corporate Bonds [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 52,646 | 21,176 |
Gross Unrealized Gains | 992 | 45 |
Gross Unrealized Losses | (85) | |
Fair Value | 53,638 | 21,136 |
Held-to-maturity securities | ||
Amortized Cost | 23,969 | |
Gross Unrealized Gains | 64 | |
Gross Unrealized Losses | (316) | |
Fair Value | 23,717 | |
States and Municipal Bonds [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 4,294 | 2,794 |
Gross Unrealized Gains | 82 | 7 |
Gross Unrealized Losses | (15) | |
Fair Value | 4,361 | 2,801 |
Held-to-maturity securities | ||
Amortized Cost | 6,845 | |
Gross Unrealized Gains | 68 | |
Gross Unrealized Losses | (102) | |
Fair Value | 6,811 | |
Government-Sponsored Enterprise Obligations [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 22,149 | 4,000 |
Gross Unrealized Gains | 23 | |
Gross Unrealized Losses | (49) | |
Fair Value | 22,172 | 3,951 |
Held-to-maturity securities | ||
Amortized Cost | 30,146 | |
Gross Unrealized Gains | 254 | |
Gross Unrealized Losses | (472) | |
Fair Value | 29,928 | |
Mutual Funds [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 6,509 | 6,438 |
Gross Unrealized Gains | 47 | |
Gross Unrealized Losses | (149) | (191) |
Fair Value | 6,407 | 6,247 |
Common and Preferred Stock [Member] | ||
Available-For-Sale Securities | ||
Amortized Cost | 1,309 | 1,309 |
Gross Unrealized Gains | 368 | 284 |
Fair Value | $ 1,677 | $ 1,593 |
SECURITIES (Details 1)
SECURITIES (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Total | $ 293,412 | $ 184,933 |
Mortgage-Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Due after one year through five years | 12,123 | |
Available for Sale Securities, Amortized Cost, Due after five years through ten years | 27,777 | |
Available for Sale Securities, Amortized Cost, Due after ten years | 166,605 | |
Available for Sale Securities, Amortized Cost, Total | 206,505 | |
Available for Sale Securities, Fair Value, Due after one year through five years | 12,360 | |
Available for Sale Securities, Fair Value, Due after five years through ten years | 28,360 | |
Available for Sale Securities, Fair Value, Due after ten years | 167,590 | |
Available for Sale Securities, Fair Value, Total | 208,310 | |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Due in one year or less | 2,205 | |
Available for Sale Securities, Amortized Cost, Due after one year through five years | 27,745 | |
Available for Sale Securities, Amortized Cost, Due after five years through ten years | 42,053 | |
Available for Sale Securities, Amortized Cost, Due after ten years | 7,086 | |
Available for Sale Securities, Amortized Cost, Total | 79,089 | |
Available for Sale Securities, Fair Value, Due in one year or less | 2,216 | |
Available for Sale Securities, Fair Value, Due after one year through five years | 28,249 | |
Available for Sale Securities, Fair Value, Due after five years through ten years | 42,582 | |
Available for Sale Securities, Fair Value, Due after ten years | 7,124 | |
Available for Sale Securities, Fair Value, Total | $ 80,171 |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross gains realized | $ 276 | $ 1,520 | $ 1,163 | |
Gross losses realized | $ (2) | (837) | (70) | |
Net gain realized | $ (2) | $ 276 | $ 683 | $ 1,093 |
SECURITIES (Details 3)
SECURITIES (Details 3) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)Number | Dec. 31, 2015USD ($) | |
Available for sale, Less Than 12 Months Gross Unrealized Losses | $ 23 | $ 2,372 |
Available for sale, Less Than 12 Months Fair Value | 2,852 | 161,824 |
Available for sale, Over 12 Months Gross Unrealized Losses | 556 | 307 |
Available for sale, Over 12 Months Fair Value | 45,976 | 8,610 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 1,188 | |
Held to maturity, Less Than 12 Months Fair Value | 53,694 | |
Held to maturity, Over 12 Months Gross Unrealized Losses | 1,283 | |
Held to maturity, Over 12 Months Fair Value | 86,610 | |
Total Securities, Less Than 12 Months Gross Unrealized Losses | 3,560 | |
Total Securities, Less Than 12 Months Fair Value | 215,518 | |
Total Securities, Over 12 Months Gross Unrealized Losses | 1,590 | |
Total Securities, Over 12 Months Fair Value | 95,220 | |
Amortized Cost Basis - less than 12 months | 2,875 | |
Gross Loss - less than 12 months | 23 | |
Amortized Cost Basis - Over 12 Months | 46,532 | |
Gross Loss - Over 12 Months | 556 | |
Government-Sponsored Mortgage-Backed Securities [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 1 | 2,090 |
Available for sale, Less Than 12 Months Fair Value | 290 | 129,731 |
Available for sale, Over 12 Months Gross Unrealized Losses | 256 | 137 |
Available for sale, Over 12 Months Fair Value | $ 38,409 | 6,228 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 947 | |
Held to maturity, Less Than 12 Months Fair Value | 45,760 | |
Held to maturity, Over 12 Months Gross Unrealized Losses | 568 | |
Held to maturity, Over 12 Months Fair Value | 32,825 | |
Number of Securities - less than 12 months | Number | 1 | |
Amortized Cost Basis - less than 12 months | $ 291 | |
Gross Loss - less than 12 months | $ 1 | |
Depreciation from AC Basis (%) - less than 12 months | 0.30% | |
Number of Securities - Over 12 Months | Number | 11 | |
Amortized Cost Basis - Over 12 Months | $ 38,665 | |
Gross Loss - Over 12 Months | $ 256 | |
Depreciation from AC Basis (%)- Over 12 Months | 0.70% | |
US Government Guaranteed Mortgage-Backed Securities [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | $ 8 | 116 |
Available for sale, Less Than 12 Months Fair Value | 1,488 | 10,290 |
Available for sale, Over 12 Months Gross Unrealized Losses | 150 | 11 |
Available for sale, Over 12 Months Fair Value | $ 5,431 | 613 |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 37 | |
Held to maturity, Less Than 12 Months Fair Value | 2,522 | |
Held to maturity, Over 12 Months Gross Unrealized Losses | 29 | |
Held to maturity, Over 12 Months Fair Value | 15,401 | |
Number of Securities - less than 12 months | Number | 1 | |
Amortized Cost Basis - less than 12 months | $ 1,496 | |
Gross Loss - less than 12 months | $ 8 | |
Depreciation from AC Basis (%) - less than 12 months | 0.50% | |
Number of Securities - Over 12 Months | Number | 2 | |
Amortized Cost Basis - Over 12 Months | $ 5,581 | |
Gross Loss - Over 12 Months | $ 150 | |
Depreciation from AC Basis (%)- Over 12 Months | 2.70% | |
Corporate Bonds [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 85 | |
Available for sale, Less Than 12 Months Fair Value | 13,374 | |
Held to maturity, Less Than 12 Months Gross Unrealized Losses | 204 | |
Held to maturity, Less Than 12 Months Fair Value | 5,412 | |
Held to maturity, Over 12 Months Gross Unrealized Losses | 112 | |
Held to maturity, Over 12 Months Fair Value | 13,382 | |
States and Municipal Bonds [Member] | ||
Available for sale, Over 12 Months Gross Unrealized Losses | $ 15 | |
Available for sale, Over 12 Months Fair Value | $ 318 | |
Held to maturity, Over 12 Months Gross Unrealized Losses | 102 | |
Held to maturity, Over 12 Months Fair Value | 4,809 | |
Number of Securities - less than 12 months | Number | 0 | |
Number of Securities - Over 12 Months | Number | 1 | |
Amortized Cost Basis - Over 12 Months | $ 333 | |
Gross Loss - Over 12 Months | $ 15 | |
Depreciation from AC Basis (%)- Over 12 Months | 4.50% | |
Government-Sponsored Enterprise Obligations [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 49 | |
Available for sale, Less Than 12 Months Fair Value | 3,951 | |
Held to maturity, Over 12 Months Gross Unrealized Losses | 472 | |
Held to maturity, Over 12 Months Fair Value | 20,193 | |
Mutual Funds [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | $ 14 | 32 |
Available for sale, Less Than 12 Months Fair Value | 1,074 | 4,478 |
Available for sale, Over 12 Months Gross Unrealized Losses | 135 | 159 |
Available for sale, Over 12 Months Fair Value | $ 1,818 | $ 1,769 |
Number of Securities - less than 12 months | Number | 1 | |
Amortized Cost Basis - less than 12 months | $ 1,088 | |
Gross Loss - less than 12 months | $ 14 | |
Depreciation from AC Basis (%) - less than 12 months | 1.30% | |
Number of Securities - Over 12 Months | Number | 1 | |
Amortized Cost Basis - Over 12 Months | $ 1,953 | |
Gross Loss - Over 12 Months | $ 135 | |
Depreciation from AC Basis (%)- Over 12 Months | 6.90% |
LOANS AND ALLOWANCE FOR LOAN 40
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Serviced loans for participants | $ 19,200 | $ 19,500 | ||
TDR charge offs | $ 0 | $ 70 | ||
Purchase of residential mortgages | 70,437 | 32,007 | ||
Loans | 901,475 | 814,390 | ||
Residential Real Estate [Member] | ||||
Purchase of residential mortgages | 70,400 | $ 32,000 | ||
Loans | 394,112 | 341,564 | ||
Commercial Real Estate - Construction Loans [Member] | ||||
Loans | $ 47,200 | $ 23,100 |
LOANS AND ALLOWANCE FOR LOAN 41
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 901,475 | $ 814,390 | ||||
Unearned premiums and deferred loan fees and costs, net | 4,737 | 3,823 | ||||
Allowance for loan losses | (9,570) | $ (8,855) | (8,840) | $ (8,295) | $ (8,035) | $ (7,948) |
Loans, net | 896,642 | 809,373 | ||||
Commercial Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 338,807 | 303,036 | ||||
Allowance for loan losses | (3,956) | (3,786) | (3,856) | (3,850) | (3,839) | (3,705) |
Residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 346,003 | 298,052 | ||||
Home Equity [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 48,109 | 43,512 | ||||
Commercial and Industrial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 167,224 | 168,256 | ||||
Allowance for loan losses | (2,797) | (2,590) | (2,485) | (2,334) | (2,211) | (2,174) |
Consumer [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 1,332 | 1,534 | ||||
Allowance for loan losses | $ (20) | $ (18) | $ (22) | $ (24) | $ (22) | $ (15) |
LOANS AND ALLOWANCE FOR LOAN 42
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 8,855 | $ 8,035 | $ 8,840 | $ 7,948 |
Provision (credit) | 625 | 350 | 25 | 650 |
Charge-offs | (18) | (101) | (260) | (326) |
Recoveries | 108 | 11 | 965 | 23 |
Ending balance | 9,570 | 8,295 | 9,570 | 8,295 |
Commercial Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 3,786 | 3,839 | 3,856 | 3,705 |
Provision (credit) | 75 | 11 | (676) | 145 |
Charge-offs | (170) | |||
Recoveries | 95 | 946 | ||
Ending balance | 3,956 | 3,850 | 3,956 | 3,850 |
Residential Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 2,429 | 1,978 | 2,431 | 2,053 |
Provision (credit) | 374 | 149 | 422 | 73 |
Charge-offs | (15) | (50) | (15) | |
Recoveries | 1 | 5 | 1 | 6 |
Ending balance | 2,804 | 2,117 | 2,804 | 2,117 |
Commercial and Industrial [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 2,590 | 2,211 | 2,485 | 2,174 |
Provision (credit) | 207 | 191 | 312 | 438 |
Charge-offs | (70) | (282) | ||
Recoveries | 2 | 4 | ||
Ending balance | 2,797 | 2,334 | 2,797 | 2,334 |
Consumer [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 18 | 22 | 22 | 15 |
Provision (credit) | 8 | 14 | 20 | 25 |
Charge-offs | (18) | (16) | (40) | (29) |
Recoveries | 12 | 4 | 18 | 13 |
Ending balance | 20 | 24 | 20 | 24 |
Unallocated [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 32 | (15) | 46 | 1 |
Provision (credit) | (39) | (15) | (53) | (31) |
Ending balance | $ (7) | $ (30) | $ (7) | $ (30) |
LOANS AND ALLOWANCE FOR LOAN 43
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Amount of allowance for loans collectively or individually evaluated for impairment and not deemed impaired | $ 9,570 | $ 8,840 | ||||
Total allowance for loan losses | 9,570 | $ 8,855 | 8,840 | $ 8,295 | $ 8,035 | $ 7,948 |
Loans individually evaluated and deemed impaired | 7,755 | 7,494 | ||||
Loan collectively or individually evaluated and not deemed impaired | 893,720 | 806,896 | ||||
Total loans | 901,475 | 814,390 | ||||
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 | 3,956 | 3,856 | ||||
Total allowance for loan losses | 3,956 | 3,786 | 3,856 | 3,850 | 3,839 | 3,705 |
Loans individually evaluated and deemed impaired | 3,594 | 3,732 | ||||
Loan collectively or individually evaluated and not deemed impaired | 335,213 | 299,304 | ||||
Total loans | 338,807 | 303,036 | ||||
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 | 2,804 | 2,431 | ||||
Total allowance for loan losses | 2,804 | 2,429 | 2,431 | 2,117 | 1,978 | 2,053 |
Loans individually evaluated and deemed impaired | 563 | 399 | ||||
Loan collectively or individually evaluated and not deemed impaired | 393,549 | 341,165 | ||||
Total loans | 394,112 | 341,564 | ||||
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 | 2,797 | 2,485 | ||||
Total allowance for loan losses | 2,797 | 2,590 | 2,485 | 2,334 | 2,211 | 2,174 |
Loans individually evaluated and deemed impaired | 3,598 | 3,363 | ||||
Loan collectively or individually evaluated and not deemed impaired | 163,626 | 164,893 | ||||
Total loans | 167,224 | 168,256 | ||||
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 | 20 | 22 | ||||
Total allowance for loan losses | 20 | 18 | 22 | 24 | 22 | 15 |
Loan collectively or individually evaluated and not deemed impaired | 1,332 | 1,534 | ||||
Total loans | 1,332 | 1,534 | ||||
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 | (7) | 46 | ||||
Total allowance for loan losses | $ (7) | $ 32 | $ 46 | $ (30) | $ (15) | $ 1 |
LOANS AND ALLOWANCE FOR LOAN 44
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 4,215 | $ 4,249 |
Loans on Non-Accrual | 8,043 | 8,080 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,402 | 1,373 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 145 | 1,503 |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,668 | 1,373 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 964 | 1,098 |
Loans on Non-Accrual | 2,609 | 3,237 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 436 | 348 |
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 730 | |
Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 528 | 20 |
Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,598 | 1,546 |
Loans on Non-Accrual | 1,504 | 1,470 |
Residential [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 523 | 638 |
Residential [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 63 | |
Residential [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,012 | 908 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 477 | 354 |
Loans on Non-Accrual | 122 | |
Home Equity [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 405 | 230 |
Home Equity [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 72 | 124 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,154 | 1,221 |
Loans on Non-Accrual | 3,797 | 3,363 |
Commercial and Industrial [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,020 | 127 |
Commercial and Industrial [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6 | 649 |
Commercial and Industrial [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 128 | 445 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22 | 30 |
Loans on Non-Accrual | 11 | 10 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18 | $ 30 |
Consumer [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 4 |
LOANS AND ALLOWANCE FOR LOAN 45
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Impaired loans without a valuation allowance: | |||||
Recorded Investment | $ 7,755 | $ 7,755 | $ 7,494 | ||
Unpaid Principal Balance | 9,898 | 9,898 | 9,354 | ||
Average Recorded Investment | 7,587 | $ 7,372 | 7,521 | $ 7,483 | |
Interest Income Recognized | 20 | 32 | |||
Total Impaired loans: | |||||
Recorded Investment | 7,755 | 7,755 | 7,494 | ||
Unpaid Principal Balance | 9,898 | 9,898 | 9,354 | ||
Average Recorded Investment | 7,587 | 7,372 | 7,521 | 7,483 | |
Interest Income Recognized | 20 | 32 | |||
Commercial Real Estate [Member] | |||||
Impaired loans without a valuation allowance: | |||||
Recorded Investment | 3,594 | 3,594 | 3,732 | ||
Unpaid Principal Balance | 4,384 | 4,384 | 4,403 | ||
Average Recorded Investment | 3,549 | 3,067 | 3,583 | 3,075 | |
Interest Income Recognized | 20 | 32 | |||
Residential Real Estate [Member] | |||||
Impaired loans without a valuation allowance: | |||||
Recorded Investment | 563 | 563 | 399 | ||
Unpaid Principal Balance | 778 | 778 | 543 | ||
Average Recorded Investment | 507 | 285 | 466 | 287 | |
Commercial and Industrial [Member] | |||||
Impaired loans without a valuation allowance: | |||||
Recorded Investment | 3,598 | 3,598 | 3,363 | ||
Unpaid Principal Balance | 4,736 | 4,736 | $ 4,408 | ||
Average Recorded Investment | $ 3,531 | $ 4,020 | $ 3,472 | $ 4,121 |
LOANS AND ALLOWANCE FOR LOAN 46
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($)Number | Jun. 30, 2016USD ($)Number | |
Number of Contracts | Number | 3 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 5,110 | $ 5,289 |
Post-Modification Outstanding Recorded Investment | $ 5,110 | $ 5,289 |
Commercial Real Estate [Member] | ||
Number of Contracts | Number | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 1,975 | $ 1,975 |
Post-Modification Outstanding Recorded Investment | $ 1,975 | $ 1,975 |
Commercial and Industrial [Member] | ||
Number of Contracts | Number | 2 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 3,135 | $ 3,150 |
Post-Modification Outstanding Recorded Investment | $ 3,135 | $ 3,150 |
Residential [Member] | ||
Number of Contracts | Number | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 164 | |
Post-Modification Outstanding Recorded Investment | $ 164 |
LOANS AND ALLOWANCE FOR LOAN 47
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 901,475 | $ 814,390 |
Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 828,110 | 746,158 |
Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 43,071 | 43,113 |
Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,725 | 572 |
Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 25,569 | 24,547 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 338,807 | 303,036 |
Commercial Real Estate [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 302,226 | 269,124 |
Commercial Real Estate [Member] | Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 29,836 | 27,053 |
Commercial Real Estate [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 135 | 138 |
Commercial Real Estate [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,610 | 6,721 |
Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 346,003 | 298,052 |
Residential [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 344,499 | 296,582 |
Residential [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,504 | 1,470 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 48,109 | 43,512 |
Home Equity [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 47,987 | 43,512 |
Home Equity [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 122 | |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 167,224 | 168,256 |
Commercial and Industrial [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 132,077 | 135,416 |
Commercial and Industrial [Member] | Loans rated 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,235 | 16,060 |
Commercial and Industrial [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,590 | 434 |
Commercial and Industrial [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 17,322 | 16,346 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,332 | 1,534 |
Consumer [Member] | Loans rated 1-3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,321 | 1,524 |
Consumer [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 11 | $ 10 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
May 31, 2016 | Jan. 31, 2015 | Jun. 30, 2016 | May 31, 2014 | |
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 | |||
Vesting term | 5 years | |||
Long Term Incentive Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation, shares available for grant | 62,740 | |||
Additional shares available for future grants | 404,700 | |||
Description for stock grants | Stock grants made through the 2016 LTI plan will be a combination of 50% time-vested restricted stock and 50% performance-based restricted stock. | |||
Description of performance period | Time-based restricted stock will vest ratably (1/3 per year) over a three-year period while the performance-based restricted stock will be vested at the end of the three-year performance period. | |||
Vesting term | 3 years | |||
Long Term Incentive Program [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation, shares available for grant | 26,197 | |||
Vesting term | 3 years | 3 years | ||
Description of threshold amount percentage | The threshold amount for the performance period will be a return on equity of 5.85% and a target amount of 6.32%. Participants will be able to earn between 50% (for threshold performance) and 100% of the target amount for the performance shares but will not earn additional shares if performance exceeds target performance. | |||
Long Term Incentive Program [Member] | Retention-based Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation, shares available for grant | 36,543 | |||
Long Term Incentive Program [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target opportunity | $ 60,000 | |||
Long Term Incentive Program [Member] | Remaining Participants [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target opportunity | $ 30,000 |
SHARE-BASED COMPENSATION (Det49
SHARE-BASED COMPENSATION (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Shares | ||
Beginning balance | 54,160 | 13,000 |
Shares granted | 62,740 | 48,560 |
Shares vested | (11,200) | |
Ending balance | 105,700 | 61,560 |
Weighted average grant date fair value | ||
Beginning balance | $ 7.28 | $ 8.07 |
Shares granted | 7.73 | 7.18 |
Shares vested | 7.18 | |
Ending balance | $ 7.56 | $ 7.37 |
SHORT-TERM BORROWINGS AND LON50
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Detail Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 144,707 | $ 128,407 |
Long-term debt | 78,032 | 153,358 |
Customer Repurchase Agreements Long Term [Member] | Government-Sponsored Mortgage-Backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of collateral pledged | 5,000 | 6,500 |
Customer Repurchase Agreements Long Term [Member] | Mortgage Backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of collateral pledged | 65,100 | 63,500 |
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 | |
FHLBB Advances [Member] | ||
Debt Instrument [Line Items] | ||
Total amount available to borrow | 9,500 | 9,500 |
Repayment of advances | $ 42,500 | |
Weighted average interest rate | 2.29% | |
Prepayment penalty | $ 915 | |
Federal Home Loan Bank Certificates And Obligations FHLB [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 120,000 | 93,800 |
Long-term debt | 72,000 | 147,400 |
Customer Contracts [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,000 | 5,900 |
Securities Sold under Agreements to Repurchase [Member] | ||
Debt Instrument [Line Items] | ||
Customer repurchase agreements | $ 24,700 | $ 34,700 |
PENSION BENEFITS (Details)
PENSION BENEFITS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||
Service cost | $ 276 | $ 305 | $ 569 | $ 614 |
Interest cost | 240 | 225 | 480 | 451 |
Expected return on assets | (275) | (283) | (549) | (567) |
Actuarial loss | 31 | 31 | 47 | 62 |
Net periodic pension cost | $ 272 | $ 278 | $ 547 | $ 560 |
DERIVATIVES AND HEDGING ACTIV52
DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount | $ 75,000 | $ 107,500 | |
Termination value of derivatives in a net liability position | $ 5,800 | ||
Forecasted transactions hedging period | 6 years | ||
Minimum collateral posting thresholds | $ 4,700 | ||
Mortgage-Backed Securities [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Minimum collateral posting thresholds | 1,600 | ||
Interest Rate Swap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value of termintaed derivatives | $ 32,500 | 47,500 | |
Termination fees | $ 3,400 | $ 2,400 | |
Termination fees amortized period | 6 years | 5 years | |
Interest Rate Swap [Member] | Two Thousand Sixteen [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount | $ 35,000 |
DERIVATIVES AND HEDGING ACTIV53
DERIVATIVES AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Notional Amount | $ 75,000 | $ 107,500 |
Weighted Average Maturity (In years) | 3 years 10 months 24 days | 4 years 10 months 24 days |
Estimated Fair Value | $ (5,740) | $ (6,064) |
Interest Rate Swaps On FHLBB Borrowings [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 40,000 | $ 40,000 |
Weighted Average Maturity (In years) | 1 year 9 months 18 days | 2 years 3 months 18 days |
Weighted Average Rate Received | 0.63% | 0.32% |
Weighted Average Rate Paid | 1.52% | 1.52% |
Estimated Fair Value | $ (642) | $ (330) |
Forward Starting Interest Rate Swaps On FHLBB Borrowings [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 35,000 | $ 67,500 |
Weighted Average Maturity (In years) | 6 years 2 months 12 days | 6 years 6 months |
Weighted Average Rate Paid | 3.54% | 3.42% |
Estimated Fair Value | $ (5,098) | $ (5,734) |
DERIVATIVES AND HEDGING ACTIV54
DERIVATIVES AND HEDGING ACTIVITIES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest Rate Swap [Member] | Derivatives Designated As Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI | $ (729) | $ 1,492 | $ (3,280) | $ (1,277) |
FAIR VALUE OF ASSETS AND LIABLI
FAIR VALUE OF ASSETS AND LIABLITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 296,565 | $ 182,590 |
Derivative liabilities, net | 5,740 | 6,064 |
Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 8,084 | 7,840 |
Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 288,481 | 174,750 |
Derivative liabilities, net | 5,740 | 6,064 |
Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,407 | 6,247 |
Common and preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,677 | 1,593 |
Government-Sponsored Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 189,197 | 135,959 |
US Government guaranteed mortgage backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 19,113 | 10,903 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 53,638 | 21,136 |
States and municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,361 | 2,801 |
Government-sponsored enterprise obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 22,172 | 3,951 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 296,565 | 182,590 |
Derivative liabilities, net | 5,740 | 6,064 |
Recurring [Member] | Fair Value - Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 8,084 | 7,840 |
Recurring [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 288,481 | 174,750 |
Derivative liabilities, net | 5,740 | 6,064 |
Recurring [Member] | Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,407 | 6,247 |
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 | 6,407 | 6,247 |
Recurring [Member] | Common and preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,677 | 1,593 |
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 | 1,677 | 1,593 |
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 | 189,197 | 135,939 |
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 | 189,197 | 135,959 |
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 | 19,113 | 10,903 |
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 | 19,113 | 10,903 |
Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 53,638 | 21,136 |
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 | 53,638 | 21,136 |
Recurring [Member] | States and municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,361 | 2,801 |
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 | 4,361 | 2,801 |
Recurring [Member] | Government-sponsored enterprise obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 22,172 | 3,951 |
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 | $ 22,172 | $ 3,951 |
FAIR VALUE OF ASSETS AND LIAB56
FAIR VALUE OF ASSETS AND LIABLITIES (Details 1) - Nonrecurring [Member] - Impaired Loans [Member] - Fair Value Inputs Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets | $ 119 | $ 158 | $ 119 | $ 158 |
Gains (Losses) arising from fair value adjustment of assets | $ (50) | $ (70) | $ (220) | $ (282) |
FAIR VALUE OF ASSETS AND LIAB57
FAIR VALUE OF ASSETS AND LIABLITIES (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash and cash equivalents | $ 21,267 | $ 13,703 |
Securities available for sale | 296,565 | 182,590 |
Securities held to maturity | 237,619 | |
Federal Home Loan Bank of Boston and other restricted stock | 11,267 | 15,074 |
Loans - net | 896,701 | 797,596 |
Accrued interest receivable | 3,712 | 3,878 |
Liabilities: | ||
Deposits | 924,321 | 901,400 |
Short-term borrowings | 144,725 | 128,407 |
Long-term debt | 79,971 | 155,433 |
Accrued interest payable | 313 | 446 |
Derivative liabilities | 5,740 | 6,064 |
Fair Value - Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 21,267 | 13,703 |
Securities available for sale | 8,084 | 7,840 |
Fair Value Inputs Level 2 [Member] | ||
Assets: | ||
Securities available for sale | 288,481 | 174,750 |
Securities held to maturity | 237,619 | |
Liabilities: | ||
Short-term borrowings | 144,725 | 128,407 |
Long-term debt | 79,971 | 155,433 |
Derivative liabilities | 5,740 | 6,064 |
Fair Value Inputs Level 3 [Member] | ||
Assets: | ||
Federal Home Loan Bank of Boston and other restricted stock | 11,267 | 15,074 |
Loans - net | 896,701 | 797,596 |
Accrued interest receivable | 3,712 | 3,878 |
Liabilities: | ||
Deposits | 924,321 | 901,400 |
Accrued interest payable | 313 | 446 |
Carrying Value [Member] | ||
Assets: | ||
Cash and cash equivalents | 21,267 | 13,703 |
Securities available for sale | 296,565 | 182,590 |
Securities held to maturity | 238,219 | |
Federal Home Loan Bank of Boston and other restricted stock | 11,267 | 15,074 |
Loans - net | 896,642 | 809,373 |
Accrued interest receivable | 3,712 | 3,878 |
Liabilities: | ||
Deposits | 920,912 | 900,363 |
Short-term borrowings | 144,707 | 128,407 |
Long-term debt | 78,032 | 153,358 |
Accrued interest payable | 313 | 446 |
Derivative liabilities | $ 5,740 | $ 6,064 |