Western New England Bancorp (WNEB) 10-Q 7 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 07, 2017
Document And Entity Information
Entity Registrant Name	Western New England Bancorp, Inc.
Entity Central Index Key	1,157,647
Document Type	10-Q
Trading Symbol	WNEB
Document Period End Date	Jun. 30, 2017
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		31,070,107
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
CASH AND DUE FROM BANKS	$ 16,444	$ 23,297
FEDERAL FUNDS SOLD	716	4,388
INTEREST-BEARING DEPOSITS AND OTHER SHORT-TERM INVESTMENTS	2,247	42,549
CASH AND CASH EQUIVALENTS	19,407	70,234
SECURITIES AVAILABLE-FOR-SALE - AT FAIR VALUE	303,395	300,115
FEDERAL HOME LOAN BANK OF BOSTON AND OTHER RESTRICTED STOCK - AT COST	16,075	16,124
LOANS - Net of allowance for loan losses of $10,418 and $10,068 at June 30, 2017 and December 31, 2016, respectively	1,598,246	1,556,416
PREMISES AND EQUIPMENT, Net	23,754	20,885
ACCRUED INTEREST RECEIVABLE	5,594	5,782
BANK-OWNED LIFE INSURANCE	67,858	66,938
DEFERRED TAX ASSET, Net	15,840	16,159
GOODWILL	12,487	13,747
CORE DEPOSIT INTANGIBLE	4,250	4,438
OTHER ASSETS	6,557	5,180
TOTAL ASSETS	2,073,463	2,076,018
DEPOSITS :
Non-interest-bearing	299,493	303,993
Interest-bearing	1,195,844	1,214,078
Total deposits	1,495,337	1,518,071
SHORT-TERM BORROWINGS	191,008	172,351
LONG-TERM DEBT	117,704	124,836
OTHER LIABILITIES	18,213	22,364
TOTAL LIABILITIES	1,822,262	1,837,622
SHAREHOLDERS' EQUITY:
Preferred stock - $0.01 par value, 5,000,000 shares authorized, none outstanding at June 30, 2017 and December 31, 2016
Common stock - $0.01 par value, 75,000,000 shares authorized, 31,070,107 shares issued and outstanding at June 30, 2017; 30,380,231 shares issued and outstanding at December 31, 2016	311	304
Additional paid-in capital	209,425	205,996
Unearned compensation - ESOP	(6,105)	(6,418)
Unearned compensation - Equity Incentive Plan	(1,109)	(536)
Retained earnings	58,786	51,711
Accumulated other comprehensive loss	(10,107)	(12,661)
TOTAL SHAREHOLDERS' EQUITY:	251,201	238,396
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,073,463	$ 2,076,018

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 10,418	$ 10,068
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	75,000,000	75,000,000
Common stock, issued	31,070,107	30,380,231
Common stock, outstanding	31,070,107	30,380,231

CONSOLIDATED STATEMENTS OF NET

CONSOLIDATED STATEMENTS OF NET INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
INTEREST AND DIVIDEND INCOME:
Residential and commercial real estate loans	$ 13,406	$ 6,924	$ 26,568	$ 13,436
Commercial and industrial loans	2,721	1,674	5,297	3,370
Consumer loans	84	41	173	83
Debt securities, taxable	1,871	1,679	3,700	4,106
Debt securities, tax-exempt	25	28	56	104
Equity securities	35	43	70	95
Other investments - at cost	166	136	329	268
Federal funds sold, interest-bearing deposits and other short-term investments	19	29	92	53
Total interest and dividend income	18,327	10,554	36,285	21,515
INTEREST EXPENSE:
Deposits	2,059	1,535	4,068	3,007
Long-term debt	549	461	1,100	1,303
Short-term borrowings	976	556	1,871	960
Total interest expense	3,584	2,552	7,039	5,270
Net interest and dividend income	14,743	8,002	29,246	16,245
PROVISION FOR LOAN LOSSES	350	625	650	25
Net interest and dividend income after provision for loan losses	14,393	7,377	28,596	16,220
NON-INTEREST INCOME (LOSS):
Service charges and fees	1,549	859	3,075	1,743
Income from bank-owned life insurance	480	403	919	764
Loss on prepayment of borrowings				(915)
Gain (loss) on sales of securities, net	46	(2)	(18)	683
Other income			116
Total non-interest income	2,075	1,260	4,092	2,275
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,239	3,845	12,464	7,652
Occupancy	917	564	1,924	1,157
Furniture and equipment	366	247	739	481
Data processing	669	380	1,060	764
Professional fees	681	545	1,277	1,061
FDIC insurance assessment	186	190	303	380
Merger related expenses	216	929	626	1,083
Advertising	385	262	633	504
Other	1,637	1,036	3,240	1,988
Total non-interest expense	11,296	7,998	22,266	15,070
INCOME BEFORE INCOME TAXES	5,172	639	10,422	3,425
INCOME TAX PROVISION	1,416	250	1,563	1,072
NET INCOME	$ 3,756	$ 389	$ 8,859	$ 2,353
EARNINGS PER COMMON SHARE:
Basic earnings per share (in dollars per share)	$ 0.13	$ 0.02	$ 0.3	$ 0.14
Weighted average shares outstanding (in shares)	29,980,518	17,337,955	29,790,164	17,321,022
Diluted earnings per share (in dollars per share)	$ 0.12	$ 0.02	$ 0.3	$ 0.14
Weighted average diluted shares outstanding (in shares)	30,120,025	17,337,955	30,000,280	17,321,022

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income		$ 3,756	$ 389	$ 8,859	$ 2,353
Unrealized gains on securities:
Unrealized holding gains on available for sale securities		1,326	2,606	1,752	6,179
Reclassification adjustment for loss (gain) realized in income	[1]	(46)	2	18	(683)
Amortization of net unrealized loss on held-to-maturity securities	[2]				26
Net unrealized loss upon transfer of held-to-maturity to available-for-sale	[3]				2,288
Net unrealized gains		1,280	2,608	1,770	7,810
Tax effect		(481)	(895)	(527)	(2,692)
Net-of-tax amount		799	1,713	1,243	5,118
Derivative instruments:
Change in fair value of derivatives used for cash flow hedges		(346)	(729)	(293)	(3,280)
Reclassification adjustment for loss realized in interest expense	[4]	249	90	523	185
Reclassification adjustment for termination fee realized in interest expense	[5]	266	266	530	418
Net adjustments relating to derivative instruments		169	(373)	760	(2,677)
Tax effect		(67)	127	165	910
Net-of-tax amount		102	(246)	925	(1,767)
Defined benefit pension plans:
Amortization of defined benefit plans actuarial loss	[6]	51	31	102	47
Tax effect		(21)	(10)	284	(16)
Net-of-tax amount		30	21	386	31
Other comprehensive income		931	1,488	2,554	3,382
Comprehensive income		$ 4,687	$ 1,877	$ 11,413	$ 5,735
[1]	Realized gains and losses on available-for-sale securities is recognized as a component of non-interest income. The tax effects applicable to net realized (loss) gains were $19,000 and $(1) for the three months ended June 30, 2017 and 2016, respectively. The tax effects applicable to net realized (loss) gains was $(7,000) and $235,000 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 $(9,000) for the six months ended June 30, 2016.
[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 $102,000 and $31,000 for the three months ended June 30, 2017 and 2016, respectively. Income tax effects associated with the reclassification adjustment were $214,000 and $163,000 for the six months ended June 30, 2017 and 2016, 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 $107,000 and $90,000 for the three months ended June 30, 2017 and 2016, respectively. Income tax effects associated with the reclassification adjustment were $215,000 and $142,000 for the six months ended June 30, 2017 and 2016, 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 $21,000 and $10,000 for the three months ended June 30, 2017 and 2016, respectively. Income tax effects associated with the reclassification adjustments were $42,000 and $16,000 for the six months ended June 30, 2017 and 2016, respectively.

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Income tax expense (benefits) on realized gains reclassification adjustment	$ 19,000	$ (1)	$ (7,000)	$ 235,000
Income tax expense (benefits) on amortization of net unrealized (gain) loss on held-to-maturity securities				(9,000)
Income tax expense (benefits) on net unrealized (loss) gain upon transfer of held-to-maturity to available-for-sale				790,000
Income tax expense (benefits), derivative instruments	102,000	31,000	214,000	163,000
Income tax benefit on termination fee on derivative instruments	107,000	90,000	215,000	142,000
Income tax expense (benefits), defined benefit plans	$ 21,000	$ 10,000	$ 42,000	$ 16,000
Tax rate adjustments (in percent)			40.85%	34.00%

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS 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, 2015	$ 183	$ 108,210	$ (6,952)	$ (313)	$ 49,316	$ (10,978)	$ 139,466
BEGINNING BALANCE (in shares) at Dec. 31, 2015	18,267,747
Comprehensive income					2,353	3,382	5,735
Common stock held by ESOP committed to be released (93,679 and 74,430 shares at June 30, 2017 and June 30, 2016 respectively)		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 ($0.06 per share)					(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
BEGINNING BALANCE at Dec. 31, 2016	$ 304	205,996	(6,418)	(536)	51,711	(12,661)	238,396
BEGINNING BALANCE (in shares) at Dec. 31, 2016	30,380,231
Comprehensive income					8,859	2,554	11,413
Common stock held by ESOP committed to be released (93,679 and 74,430 shares at June 30, 2017 and June 30, 2016 respectively)		141	313				454
Share-based compensation - equity incentive plan				331			331
Common stock repurchased	$ (3)	(3,071)					(3,074)
Common stock repurchased (in shares)	(321,015)
Issuance of common stock in connection with stock option exercises	$ 9	5,456					5,465
Issuance of common stock in connection with stock option exercises (in shares)	921,849
Issuance of common stock in connection with equity incentive plan	$ 1	903		(904)
Issuance of common stock in connection with equity incentive plan (in shares)	89,042
Cash dividends declared and paid ($0.06 per share)					(1,784)		(1,784)
ENDING BALANCE at Jun. 30, 2017	$ 311	$ 209,425	$ (6,105)	$ (1,109)	$ 58,786	$ (10,107)	$ 251,201
ENDING BALANCE (in shares) at Jun. 30, 2017	31,070,107

CONSOLIDATED STATEMENTS OF CHA8

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]
Common stock held by ESOP committed to be released, shares	93,679	74,430
Cash dividends declared, per share	$ 0.06	$ 0.06

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES:
Net income	$ 8,859	$ 2,353
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	650	25
Depreciation and amortization of premises and equipment	970	648
Accretion of purchase accounting adjustments, net	(998)
Amortization of core deposit intangible	188
Net amortization of premiums and discounts on securities and mortgage loans	1,964	1,950
Net amortization of premiums on modified debt		52
Share-based compensation expense	331	101
ESOP expense	454	301
Excess tax benefits from equity incentive plan		(4)
Net loss (gains) on sales of securities	18	(683)
Loss on sale of other real estate owned	6
Loss on prepayment of borrowings		915
Deferred income tax benefit	(973)
Income from bank-owned life insurance	(919)	(764)
Changes in assets and liabilities:
Accrued interest receivable	188	166
Other assets	(1,668)	(510)
Other liabilities	(2,768)	(3,498)
Net cash provided by operating activities	6,302	1,052
Securities, held to maturity:
Proceeds from calls, maturities, and principal collections		6,835
Securities, available for sale:
Purchases	(44,621)	(39,094)
Proceeds from sales	4,576	136,824
Proceeds from calls, maturities, and principal collections	36,571	26,258
Purchase of residential mortgages	(34,375)	(70,437)
Loan originations and principal payments, net	(7,786)	(16,895)
Redemption of Federal Home Loan Bank of Boston stock	49	3,807
Proceeds from sale of other real estate owned	292
Purchases of premises and equipment	(1,445)	(328)
Proceeds from sale of premises and equipment		20
Net cash (used in) provided by investing activities	(46,739)	46,990
FINANCING ACTIVITIES:
Net (decrease) increase in deposits	(22,216)	20,549
Net change in short-term borrowings	18,657	16,300
Repayment of long-term debt	(8,221)	(76,414)
Proceeds from long-term debt	1,238	121
Cash dividends paid	(1,784)	(1,038)
Common stock repurchased	(3,529)
Issuance of common stock in connection with stock option exercises	5,465
Excess tax benefits in connection with equity incentive plan		4
Net cash used in financing activities	(10,390)	(40,478)
NET CHANGE IN CASH AND CASH EQUIVALENTS:	(50,827)	7,564
Beginning of period	70,234	13,703
End of period	19,407	21,267
Supplemental cashflow information:
Securities reclassified from held-to-maturity to available-for-sale		(232,817)
Net change in cash due to broker for common stock repurchased	(455)
Interest paid	7,028	5,402
Taxes paid	$ 3,148	$ 1,845

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Bank’s deposits are insured to the limits specified by the Federal Deposit Insurance Corporation (“FDIC”). The Bank operates 21 banking offices in western Massachusetts and northern Connecticut, and its primary sources of revenue are earnings on loans to small and middle-market businesses and to residential property homeowners and income from securities. Wholly-Owned Subsidiaries and Acquisition 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, 2016, included in our Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Annual Report”). Reclassifications

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
EARNINGS PER COMMON SHARE:
EARNINGS PER SHARE	2. EARNINGS PER SHARE Basic earnings per share represent income available to shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential shares had been issued, as well as any adjustment to income that would result from the assumed issuance. No dilutive potential shares were outstanding during the periods presented. Share-based compensation awards that qualify as participating securities (entitled to receive non-forfeitable dividends) are included in basic earnings per share. Earnings per common share for the three and six months ended June 30, 2017 and 2016 have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands, except per share data) Net income applicable to common stock $ 3,756 $ 389 $ 8,859 $ 2,353 Average number of common shares issued 30,882 18,294 30,696 18,281 Less: Average unallocated ESOP Shares (861 ) (945 ) (873 ) (954 ) Less: Average unvested equity incentive plan shares (41 ) (11 ) (33 ) (5 ) Average number of common shares outstanding used to calculate basic earnings per common share 29,980 17,338 29,790 17,322 Effect of dilutive equity incentive plan — — 6 — Effect of dilutive stock options 140 — 204 — Average number of common shares outstanding used to calculate diluted earnings per common share 30,120 17,338 30,000 17,322 Basic earnings per share $ 0.13 $ 0.02 $ 0.30 $ 0.14 Diluted earnings per share $ 0.12 $ 0.02 $ 0.30 $ 0.14

COMPREHENSIVE INCOME_LOSS

COMPREHENSIVE INCOME/LOSS	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
COMPREHENSIVE INCOME/LOSS	3. COMPREHENSIVE INCOME/LOSS Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. The components of accumulated other comprehensive loss included in shareholders’ equity are as follows: June 30, 2017 December 31, (In thousands) Net unrealized losses on securities available-for-sale $ (4,093 ) $ (5,863 ) Tax effect 1,497 2,024 Net-of-tax amount (2,596 ) (3,839 ) Fair value of derivatives used for cash flow hedges (2,922 ) (3,152 ) Termination fees on forward starting interest rate swaps (4,203 ) (4,733 ) Total derivatives (7,125 ) (7,885 ) Tax effect 2,846 2,681 Net-of-tax amount (4,279 ) (5,204 ) Unrecognized actuarial loss on defined benefit plan (5,380 ) (5,482 ) Tax effect 2,148 1,864 Net-of-tax amount (3,232 ) (3,618 ) Accumulated other comprehensive loss $ (10,107 ) $ (12,661 ) The following table presents changes in accumulated other comprehensive loss for the periods ended June 30, 2017 and 2016 by component: Securities Derivatives Defined Accumulated (In thousands) 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 ) Balance at December 31, 2016 $ (3,839 ) $ (5,204 ) $ (3,618 ) $ (12,661 ) Current-period other comprehensive income 1,243 925 386 2,554 Balance at June 30, 2017 $ (2,596 ) $ (4,279 ) $ (3,232 ) $ (10,107 )

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
SECURITIES	4. SECURITIES Securities available-for-sale are summarized as follows: June 30, 2017 Amortized Gross Gross Fair Value (In thousands) Available-for-sale securities: Government-sponsored mortgage-backed securities $ 205,940 $ 114 $ (3,193 ) $ 202,861 U.S. government guaranteed mortgage-backed securities 16,714 — (453 ) 16,261 Corporate bonds 49,525 524 (59 ) 49,990 State and municipal bonds 3,504 22 (44 ) 3,482 Government-sponsored enterprise obligations 25,150 — (721 ) 24,429 Mutual funds 6,655 — (283 ) 6,372 Total available-for-sale $ 307,488 $ 660 $ (4,753 ) $ 303,395 December 31, 2016 Amortized Gross Gross Fair Value (In thousands) Available-for-sale securities: Government-sponsored mortgage-backed securities $ 184,127 $ 33 $ (4,024 ) $ 180,136 U.S. government guaranteed mortgage-backed securities 17,753 — (403 ) 17,350 Corporate bonds 50,255 265 (203 ) 50,317 State and municipal bonds 4,117 13 (122 ) 4,008 Government-sponsored enterprise obligations 43,140 — (1,132 ) 42,008 Mutual funds 6,586 — (290 ) 6,296 Total available-for-sale securities $ 305,978 $ 311 $ (6,174 ) $ 300,115 Our repurchase agreements 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 at June 30, 2017, 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, 2017 Amortized Cost Fair Value (In thousands) Mortgage-backed securities: Due after one year through five years $ 27,831 $ 27,740 Due after five years through ten years 7,522 7,463 Due after ten years 187,301 183,919 Total $ 222,654 $ 219,122 Debt securities: Due in one year or less $ 3,859 $ 3,884 Due after one year through five years 28,260 28,525 Due after five years through ten years 39,309 38,906 Due after ten years 6,751 6,586 Total $ 78,179 $ 77,901 Gross realized gains and losses on sales of securities available-for-sale for the three and six months ended June 30, 2017 and 2016 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) Gross gains realized $ 46 $ — $ 46 $ 1,520 Gross losses realized — (2 ) (64 ) (837 ) Net gain realized $ 46 $ (2 ) $ (18 ) $ 683 Proceeds from the sale of securities available-for-sale amounted to $4.6 million and $136.8 million for the six months ended June 30, 2017 and 2016, respectively. Information pertaining to securities with gross unrealized losses at June 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: June 30, 2017 Less Than 12 Months Over 12 Months Gross Fair Value Gross Fair Value (In thousands) Available-for-sale: Government-sponsored mortgage-backed securities $ 2,447 $ 150,960 $ 746 $ 21,022 U.S. government guaranteed mortgage-backed securities 188 10,568 265 5,692 Corporate bonds 59 6,678 — — State and municipal bonds 44 1,557 — — Government-sponsored enterprise obligations 721 24,429 — — Mutual funds 60 3,485 223 2,888 Total available-for-sale $ 3,519 $ 197,677 $ 1,234 $ 29,602 December 31, 2016 Less Than 12 Months Over 12 Months Gross Fair Value Gross Fair Value (In thousands) Available-for-sale: Government-sponsored mortgage-backed securities $ 3,016 $ 147,691 $ 1,008 $ 27,303 U.S. government guaranteed mortgage-backed securities 192 12,536 211 4,814 Corporate bonds 203 18,481 — — State and municipal bonds 95 1,507 27 305 Government-sponsored enterprise obligations 1,132 42,008 — — Mutual funds 79 3,429 211 2,867 Total available-for-sale $ 4,717 $ 225,652 $ 1,457 $ 35,289 June 30, 2017 Less Than 12 Months Over 12 Months Number Amortized Gross Depreciation Number Amortized Gross Depreciation (Dollars in thousands) Government sponsored mortgage-backed securities 58 $ 153,407 $ 2,447 1.6 % 9 $ 21,768 $ 746 3.4 % U.S. government guaranteed mortgage-backed securities 3 10,756 188 1.7 3 5,957 265 4.4 Government sponsored enterprise obligations 9 25,150 721 2.9 0 — — — Corporate bonds 3 6,737 59 0.9 0 — — — State and municipal bonds 3 1,601 44 2.7 0 — — — Mutual funds 1 3,545 60 1.7 2 3,111 223 7.2 $ 201,196 $ 3,519 $ 30,836 $ 1,234 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, 2017
Receivables [Abstract]
LOANS AND ALLOWANCE FOR LOAN LOSSES	5. LOANS AND ALLOWANCE FOR LOAN LOSSES Loans consisted of the following amounts: June 30, December 31, 2017 2016 (In thousands) Commercial real estate $ 716,831 $ 720,741 Residential real estate: Residential 545,966 522,083 Home equity 92,240 92,083 Commercial and industrial 244,014 222,286 Consumer 4,531 4,424 Total Loans 1,603,582 1,561,617 Unearned premiums and deferred loan fees and costs, net 5,082 4,867 Allowance for loan losses (10,418 ) (10,068 ) $ 1,598,246 $ 1,556,416 During the six months ended June 30, 2017 and 2016, we purchased residential real estate loans aggregating $34.4 million and $70.4 million, respectively. We have transferred a portion of our originated commercial real estate and commercial and industrial loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in our accompanying unaudited consolidated balance sheets. We share ratably with our participating lenders in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. We continue to service the loans on behalf of the participating lenders and, as such, collect cash payments from the borrowers, remit payments (net of servicing fees) to participating lenders and disburse required escrow funds to relevant parties. At June 30, 2017 and December 31, 2016, we serviced commercial loans for participants aggregating $33.9 million and $42.6 million, respectively. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances of these loans totaled $69.9 million and $75.2 million at June 30, 2017 and December 31, 2016, respectively. Service fee income of $34,000 and $2,000 was recorded for the six months ended June 30, 2017 and 2016, respectively, and is included in service charges and fees on the consolidated statements of net income. Residential real estate mortgages are originated by the Bank both for its portfolio and for sale into the secondary market. The Bank may sell its loans to institutional investors such as the Federal Home Loan Mortgage Corporation. Under loan sale and servicing agreements with the investor, the Bank generally continues to service the residential real estate mortgages. The Bank pays the investor an agreed upon rate on the loan, which is less than the interest rate received from the borrower. The Bank retains the difference as a fee for servicing the residential real estate mortgages. The Bank capitalizes mortgage servicing rights at their fair value upon sale of the related loans, amortizes the asset over the estimated life of the serviced loan, and periodically assesses the asset for impairment. The significant assumptions used by a third party to estimate the fair value of capitalized servicing rights at June 30, 2017, include weighted average prepayment speed for the portfolio using the Public Securities Association Standard Prepayment Model (203 PSA), weighted average internal rate of return (10.05%), weighted average servicing fee (0.2501%), and average net cost to service loans ($58.30 per loan). The estimated fair value of capitalized servicing rights may vary significantly in subsequent periods primarily due to changing market interest rates, and their effect on prepayment speeds and discount rates. A summary of the activity in the balances of mortgage servicing rights follows: Three Months Six Months (In thousands) Balance at the beginning of period: $ 436 $ 465 Capitalized mortgage servicing rights — — Amortization (28 ) (57 ) Balance at the end of period $ 408 $ 408 Fair value at the end of period $ 570 $ 570 Prior to the acquisition of Chicopee in 2016, mortgage servicing rights were not material to the consolidated financial statements, and therefore, were not recorded. Loans are recorded at the principal amount outstanding, adjusted for charge-offs, unearned premiums and deferred loan fees and costs. Interest on loans is calculated using the effective yield method on daily balances of the principal amount outstanding and is credited to income on the accrual basis to the extent it is deemed collectable. Our general policy is to discontinue the accrual of interest when principal or interest payments are delinquent 90 days or more based on the contractual terms of the loan, or earlier if the loan is considered impaired. Any unpaid amounts previously accrued on these loans are reversed from income. Subsequent cash receipts are applied to the outstanding principal balance or to interest income if, in the judgment of management, collection of the principal balance is not in question. Loans are returned to accrual status when they become current as to both principal and interest and perform in accordance with contractual terms for a period of at least six months, reducing the concern as to the collectability of principal and interest. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income over the estimated average lives of the related loans. The allowance for loan losses is established through provisions for loan losses charged to expense. Loans are charged-off against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated, and unallocated components, as further described below. General component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate (includes one-to-four family and home equity), commercial real estate, commercial and industrial, and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: trends in delinquencies and nonperforming loans; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; and national and local economic trends and industry conditions. There were no changes in our policies or methodology pertaining to the general component of the allowance for loan losses during the periods presented for disclosure. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – We require private mortgage insurance for all loans originated with a loan-to-value ratio greater than 80% and we do not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Home equity loans are secured by first or second mortgages on one-to-four family owner occupied properties. Commercial real estate – Loans in this segment are primarily income-producing investment properties and owner-occupied commercial properties throughout New England. The underlying cash flows generated by the properties or operations can be adversely impacted by a downturn in the economy due to increased vacancy rates or diminished cash flows, which in turn, would have an effect on the credit quality in this segment. Management obtains financial information annually and continually monitors the cash flows of these loans. Commercial and industrial loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Consumer loans – Loans in this segment are secured or unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component relates to loans that are classified as impaired. Impaired loans are identified by analysis of loan performance, internal credit ratings and watch list loans that management believes are subject to a higher risk of loss. Impairment is measured on a loan by loan basis for commercial real estate and commercial and industrial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, we do not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. We determine the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Unallocated component An unallocated component may be maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance, if any, reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. An analysis of changes in the allowance for loan losses by segment for the periods ended June 30, 2017 and 2016 is as follows: Commercial Residential Commercial Consumer Unallocated Total (In thousands) Three Months Ended 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 Balance at March 31, 2017 $ 4,334 $ 3,086 $ 2,744 $ 43 $ 20 $ 10,227 Provision (credit) 138 60 108 51 (7 ) 350 Charge-offs — (42 ) (120 ) (53 ) — (215 ) Recoveries — 22 22 12 — 56 Balance at June 30, 2017 $ 4,472 $ 3,126 $ 2,754 $ 53 $ 13 $ 10,418 Six Months Ended 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 Balance at December 31, 2016 $ 4,083 $ 2,862 $ 3,085 $ 38 $ — $ 10,068 Provision (credit) 307 281 (71 ) 120 13 650 Charge-offs (36 ) (41 ) (285 ) (133 ) — (495 ) Recoveries 118 24 25 28 — 195 Balance at June 30, 2017 $ 4,472 $ 3,126 $ 2,754 $ 53 $ 13 $ 10,418 Further information pertaining to the allowance for loan losses by segment at June 30, 2017 and December 31, 2016 follows: Commercial Residential Commercial Consumer Unallocated Total (In thousands) June 30, 2017 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 4,472 3,126 2,754 53 13 10,418 Total allowance for loan losses $ 4,472 $ 3,126 $ 2,754 $ 53 $ 13 $ 10,418 Impaired loans $ 3,974 $ 3,172 $ 3,823 $ 116 $ — $ 11,085 Non-impaired loans 698,314 630,866 239,084 4,415 — 1,572,679 Loans acquired with deteriorated credit quality 14,543 4,168 1,107 — — 19,818 Total loans $ 716,831 $ 638,206 $ 244,014 $ 4,531 $ — $ 1,603,582 December 31, 2016 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 4,083 2,862 3,085 38 — 10,068 Total allowance for loan losses 4,083 2,862 3,085 38 — 10,068 Impaired loans 3,335 452 3,042 — — 6,829 Non-impaired loans 701,766 609,107 217,972 4,424 — 1,533,269 Loans acquired with deteriorated credit quality 15,640 4,607 1,272 — — 21,519 Total loans $ 720,741 $ 614,166 $ 222,286 $ 4,424 $ — $ 1,561,617 The following is a summary of past due and non-accrual loans by class at June 30, 2017 and December 31, 2016: 30 – 59 Days 60 – 89 Days Greater than Total Past Past Due 90 Loans on Non- (In thousands) June 30, 2017 Commercial real estate $ 342 $ — $ 136 $ 478 $ — 2,185 Residential real estate: Residential 215 243 638 1,096 — 1,576 Home equity 290 246 — 536 — 36 Commercial and industrial 374 15 104 493 — 3,651 Consumer 59 6 29 94 — 37 Total legacy loans 1,280 510 907 2,697 — 7,485 Loans acquired from Chicopee Savings Bank 2,860 557 1,126 4,543 — 6,507 Total $ 4,140 $ 1,067 $ 2,033 $ 7,240 $ — $ 13,992 December 31, 2016 Commercial real estate $ 302 $ 555 $ 137 $ 994 $ — $ 2,740 Residential real estate: Residential 791 262 689 1,742 — 1,658 Home equity 208 36 — 244 — 37 Commercial and industrial 326 32 — 358 — 3,214 Consumer 27 9 7 43 — 14 Total legacy loans 1,654 894 833 3,381 — 7,663 Loans acquired from Chicopee Savings Bank 3,854 1,907 551 6,312 — 6,394 Total past due loans $ 5,508 $ 2,801 $ 1,384 $ 9,693 $ — $ 14,057 The following is a summary of impaired loans by class at June 30, 2017 and December 31, 2016: Impaired Loans (1)(2) Three Months Ended Six Months Ended (1) At June 30, 2017 (1) June 30, 2017 June 30, 2017 Recorded Unpaid Average Interest Average Interest (In thousands) Impaired loans without a valuation allowance: Commercial real estate $ 18,517 $ 20,982 $ 19,202 $ 234 $ 19,316 $ 451 Residential real estate 7,093 7,612 6,822 11 6,314 23 Home equity 247 338 249 1 187 2 Commercial and industrial 4,930 11,336 4,740 67 4,586 129 Consumer 116 120 93 — 64 — Total impaired loans $ 30,903 $ 40,388 $ 31,106 $ 313 $ 30,467 $ 605 (1) Impaired Loans Three Months Ended Six Months Ended At December 31, 2016 (1) June 30, 2016 June 30, 2016 Recorded Unpaid Average Interest Average Interest (In thousands) Impaired loans without a valuation allowance: Commercial real estate $ 18,975 $ 21,330 $ 3,549 $ 20 $ 3,583 $ 32 Residential real estate 5,059 5,676 507 — 466 — Commercial and industrial 4,314 11,049 3,531 — 3,472 — Total impaired loans $ 28,348 $ 38,055 $ 7,587 $ 20 $ 7,521 $ 32 (1) No interest income was recognized for impaired loans on a cash-basis method during the three and six months ended June 30, 2017 or 2016. Interest income recognized on impaired loans during the three and six months ended June 30, 2017 and 2016 related to TDRs. We may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). These concessions could include a reduction in the interest rate on the loan, payment 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. There were no loans modified in TDRs during the three and six months ended June 30, 2017. 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 June 30, 2016 June 30, 2016 Number of Pre- Post- Number of 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 twelve months of restructuring during the three and six months ended June 30, 2017 or 2016. There were no charge-offs on TDRs during the three and six months ended June 30, 2017 and 2016. Loans Acquired with Deteriorated Credit Quality The following is a summary of loans acquired with evidence of credit deterioration from Chicopee as of June 30, 2017. Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2016 $ 37,437 $ 29,040 $ 8,397 $ 7,521 $ 21,519 Collections (2,314 ) (1,981 ) (333 ) (692 ) (1,289 ) Dispositions (632 ) (406 ) (226 ) 6 (412 ) Balance at June 30, 2017 $ 34,491 $ 26,653 $ 7,838 $ 6,835 $ 19,818 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 $66.2 million and $88.9 million at June 30, 2017 and December 31, 2016, 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, 2017 and December 31, 2016: Commercial Residential Home Commercial Consumer Total (In thousands) June 30, 2017 Loans rated 1 – 3 $ 661,602 $ 540,028 $ 92,048 $ 191,012 $ 4,410 $ 1,489,100 Loans rated 4 32,529 — — 37,764 5 70,298 Loans rated 5 12,594 — — 5,920 — 18,514 Loans rated 6 10,106 5,938 192 9,318 116 25,670 $ 716,831 $ 545,966 $ 92,240 $ 244,014 $ 4,531 $ 1,603,582 December 31, 2016 Loans rated 1 – 3 $ 673,957 $ 516,339 $ 91,964 $ 180,675 $ 4,391 $ 1,467,326 Loans rated 4 24,207 — — 16,621 6 40,834 Loans rated 5 14,068 — — 6,727 — 20,795 Loans rated 6 6,604 5,744 119 15,379 27 27,873 Loans rated 7 1,905 — — 2,884 — 4,789 $ 720,741 $ 522,083 $ 92,083 $ 222,286 $ 4,424 $ 1,561,617

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLES	6. GOODWILL AND OTHER INTANGIBLES Goodwill Goodwill for the six months ended June 30, 2017 is summarized as follows: Six Months Ended June 30, 2017 (In thousands) Balance at December 31, 2016 $ 13,747 Current period adjustments (1,260 ) Balance at June 30, 2017 $ 12,487 At June 30, 2017 and December 31, 2016, the Company’s goodwill related to the acquisition of Chicopee in October 2016. Annually, or more frequently if events or changes in circumstances warrant such evaluation, the Company evaluates its goodwill for impairment. No goodwill impairment was recorded for the six months ended June 30, 2017. During the three months ended March 31, 2017, management completed their evaluation of premises and equipment acquired from Chicopee, which resulted in a $2.4 million adjustment to the provisional fair values of bank premises acquired and a $1.4 million reduction in goodwill. The remaining adjustments to goodwill of $140,000 during the three months ended March 31, 2017 resulted from information obtain during the quarter about events and circumstances that existed as of the acquisition date. Core Deposit Intangibles In connection with the assumption of $545.7 million of deposit liabilities from the Chicopee acquisition in October 2016, of which $345.2 million were core deposits, the Bank recorded a core deposit intangible of $4.5 million. The resulting core deposit intangible is amortized over twelve years using the straight-line method. Core deposit intangibles are summarized as follows: Six Months Ended June 30, 2017 (In thousands) Balance at December 31, 2016 $ 4,438 Amortization (188 ) Balance at June 30, 2017 $ 4,250 Amortization expense was $188,000 for the six months ended June 30, 2017. At June 30, 2017, future amortization of the core deposit intangible totals $375,000 for each of the next five years and $2.4 million thereafter.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	7. SHARE-BASED COMPENSATION Stock Options – A summary of stock option activity for the six months ended June 30, 2017 is presented below. No options were outstanding during the six months ended June 30, 2016. Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 1,178,899 $ 6.01 1.98 $ 3,930 Exercised (921,849 ) 5.93 0.91 3,675 Outstanding at June 30, 2017 257,050 $ 6.31 4.91 $ 982 Exercisable at June 30, 2017 257,050 $ 6.31 4.91 $ 982 Cash received for options exercised during the six months ended June 30, 2017 was $5.5 million. Restricted Stock Awards – 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, was recorded as unearned compensation and is being 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 executive’s 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 and directors 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 LTI Plan includes eligible officers of the Company who are nominated by the Company’s Chief Executive Officer and approved by the Committee. The LTI Plan is triggered by the Company’s achievement of satisfactory safety and soundness results from its most recent regulatory examination. Employee stock grants made through the 2016 LTI plan will be a combination of 50% time-vested restricted stock and 50% performance-based restricted stock. In May 2016, 62,740 shares were granted under the LTI Plan. Of this total, 36,543 shares are retention-based, with 10,352 vesting in one year and 26,191 vesting 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. 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. In May 2017, 89,042 shares were granted under the LTI Plan. Of this total, 55,159 shares are retention-based, with 21,276 vesting in one year and 33,883 vesting ratably over a three year period. The remaining 33,883 shares granted are performance based and are subject to the achievement of the 2017 LTI performance metric before vesting is realized after a three year period. For the performance shares, the primary performance metric for 2017 awards is return on equity. Performance shares will be earned based upon how the Company performs relative to threshold, target and maximum absolute goals (i.e. Company-specific, not relative to a peer index) on an annual performance period, but will be distributed at the end of the three year period. The threshold, target and maximum for the three year period under the 2017 Plan is as follows: Return on Equity Targets Performance Period Ending Threshold Target Maximum December 31, 2017 6.00 % 6.60 % 7.30 % December 31, 2018 6.30 % 7.00 % 7.60 % December 31, 2019 6.50 % 7.20 % 7.90 % Participants will be able to earn between 50% (for threshold performance), 100% (for target performance) and 150% (for the maximum performance). 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, 2017, an additional 315,658 shares were available for future grants under this plan. Our stock award plan activity for the six months ended June 30, 2017 and 2016 is summarized below: Unvested Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 91,371 $ 7.51 Shares granted 89,042 10.15 Shares vested (21,552 ) 7.44 Outstanding at June 30, 2017 158,861 $ 9.00 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 We recorded compensation cost related to the stock awards of $331,000 and $101,000 for the six months ended June 30, 2017 and 2016, respectively.

SHORT-TERM BORROWINGS AND LONG-

SHORT-TERM BORROWINGS AND LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2017
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 $174.2 million at June 30, 2017 and $155.0 million at December 31, 2016. We have an “Ideal Way” line of credit with the FHLBB for $9.5 million at June 30, 2017 and December 31, 2016. 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, 2017 or December 31, 2016. Customer repurchase agreements were $16.8 million at June 30, 2017 and $17.4 million at December 31, 2016. 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. 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, 2017 or December 31, 2016. 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. At June 30, 2017, we had $117.7 million in long-term debt with the FHLBB. This compares to $124.8 million in long-term debt with FHLBB advances at December 31, 2016. Customer repurchase agreements are collateralized by government-sponsored enterprise obligations with fair value of $6.8 million and $24.6 million, and mortgage backed securities with a fair value of $67.9 million and $57.6 million, at June 30, 2017 and December 31, 2016, 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 eligible commercial real estate loans.

PENSION BENEFITS

PENSION BENEFITS	6 Months Ended
	Jun. 30, 2017
Defined Benefit Plan [Abstract]
PENSION BENEFITS	9. PENSION BENEFITS We maintain a pension plan for our eligible employees. On September 30, 2016, we effected a soft freeze on the Plan and therefore no new participants will be included in the Plan after such effective date. We plan to contribute to the pension plan the amount required to meet the minimum funding standards under Section 412 of the Internal Revenue Code of 1986, as amended. Additional contributions will be made as deemed appropriate by management in conjunction with the pension plan’s actuaries. We have not yet determined how much we expect to contribute to our pension plan in 2017. No contributions have been made to the plan for the six months ended June 30, 2017. 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. The following table provides information regarding net pension benefit costs for the periods shown: Three Months Ended June 30, Six Months Ended, June 30, 2017 2016 2017 2016 (In thousands) Service cost $ 266 $ 276 $ 533 $ 569 Interest cost 253 240 507 480 Expected return on assets (299 ) (275 ) (597 ) (549 ) Actuarial loss 51 31 102 47 Net periodic pension cost $ 271 $ 272 $ 545 $ 547

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2017
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. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of June 30, 2017 and December 31, 2016. June 30, 2017 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swaps Other Assets $ 7 Other Liabilities $ 2,929 December 31, 2016 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swaps Other Assets $ — Other Liabilities $ 3,152 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 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, 2017 and December 31, 2016: June 30, 2017 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Interest rate swaps on FHLBB borrowings $ 75,000 2.9 1.20 % 2.46 % $ (2,922) December 31, 2016 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Interest rate swaps on FHLBB borrowings $ 75,000 3.4 0.92 % 2.46 % $ (3,152) During 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 are 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 six months ended June 30, 2017 or 2016. 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 losses of our cash flow hedges for the periods indicated. Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Interest rate swaps $ (346 ) $ (729 ) $ (293 ) $ (3,280 ) Amounts reported in accumulated other comprehensive loss related to these derivatives are reclassified to interest expense as interest payments are made on our rate sensitive assets/liabilities. The amount reclassified from accumulated other comprehensive income into net income for the effective portion of interest rate swaps and termination fees was $515,000 and $356,000 during the three months ended June 30, 2017 and 2016, respectively and $1.1 million and $603,000 during the six months ended June 30, 2017 and 2016, respectively. During the next 12 months, we estimate that $1.9 million will be reclassified as an increase in interest expense. During the six months ended June 30, 2017 and 2016, no gains or losses were reclassified from accumulated other comprehensive loss into income for ineffectiveness on cash flow hedges. Credit-risk-related Contingent Features By using derivative financial instruments, we expose 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, 2017, 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 $2.9 million. As of June 30, 2017, we have minimum collateral posting thresholds with certain of our derivative counterparties and mortgage-backed securities with a fair value of $4.8 million posted as collateral against our obligations under these agreements. If we had breached any of these provisions at June 30, 2017, 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, 2017
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 and mortgage-backed securities Federal Home Loan Bank and other 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, 2017 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale Government-sponsored mortgage-backed securities $ — $ 202,861 $ — $ 202,861 U.S. government guaranteed mortgage-backed securities — 16,261 — 16,261 Corporate bonds — 49,990 — 49,990 State and municipal bonds — 3,482 — 3,482 Government-sponsored enterprise obligations — 24,429 — 24,429 Mutual funds 6,372 — — 6,372 Total securities available-for-sale 6,372 297,023 — 303,395 Interest rate swaps — 7 — 7 Total assets $ 6,372 $ 297,030 $ — $ 303,402 Liabilities: Interest rate swaps $ — $ 2,929 $ — $ 2,929 December 31, 2016 Level 1 Level 2 Level 3 Total Assets: (In thousands) Government-sponsored mortgage-backed securities $ — $ 180,136 $ — $ 180,136 U.S. government guaranteed mortgage-backed securities — 17,350 — 17,350 Corporate bonds — 50,317 — 50,317 State and municipal bonds — 4,008 — 4,008 Government-sponsored enterprise obligations — 42,008 — 42,008 Mutual funds 6,296 — — 6,296 Total assets $ 6,296 $ 293,819 $ — $ 300,115 Liabilities: Interest rate swaps $ — $ 3,152 $ — $ 3,152 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. There were no assets measured at fair value on a non-recurring basis at June 30, 2017. 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. Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at June 30, 2016. At June 30, 2016 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) Total Gains (Losses) (In thousands) Impaired Loans $ — $ — $ 119 $ (50 ) $ (220 ) Total Assets $ — $ — $ 119 $ (50 ) $ (220 ) 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, 2017 and 2016. 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, 2017 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 19,407 $ 19,407 $ — $ — $ 19,407 Securities available-for-sale 303,395 6,372 297,023 — 303,395 Federal Home Loan Bank of Boston and other restricted stock 16,075 — — 16,075 16,075 Loans - net 1,598,246 — — 1,571,612 1 ,571,612 Accrued interest receivable 5,594 — — 5,594 5,594 Mortgage servicing rights 408 — 570 — 570 Derivative assets 7 — 7 — 7 Liabilities: Deposits 1,495,337 — — 1,498,194 1,498,194 Short-term borrowings 191,008 — 191,000 — 191,000 Long-term debt 117,704 — 118,113 — 118,113 Accrued interest payable 420 — — 420 420 Derivative liabilities 2,929 — 2,929 — 2,929 December 31, 2016 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 70,234 $ 70,234 $ — $ — $ 70,234 Securities available-for-sale 300,115 6,296 293,819 — 300,115 Federal Home Loan Bank of Boston and other restricted stock 16,124 — — 16,124 16,124 Loans - net 1,556,416 — — 1,525,274 1,525,274 Accrued interest receivable 5,782 — — 5,782 5,782 Mortgage servicing rights 465 — 628 — 628 Liabilities: Deposits 1,518,071 — — 1,521,580 1,521,580 Short-term borrowings 172,351 — 172,351 — 172,351 Long-term debt 124,836 — 125,183 — 125,183 Accrued interest payable 1,012 — — 1,012 1,012 Derivative liabilities 3,152 — 3,152 — 3,152

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2017
Accounting Changes and Error Corrections [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 In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments In March 2017, the FASB issued ASU No. 2017-08— Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
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, 2016, included in our Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Annual Report”).
Reclassifications	Reclassifications

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
EARNINGS PER COMMON SHARE:
Schedule of earnings per common share	Earnings per common share for the three and six months ended June 30, 2017 and 2016 have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands, except per share data) Net income applicable to common stock $ 3,756 $ 389 $ 8,859 $ 2,353 Average number of common shares issued 30,882 18,294 30,696 18,281 Less: Average unallocated ESOP Shares (861 ) (945 ) (873 ) (954 ) Less: Average unvested equity incentive plan shares (41 ) (11 ) (33 ) (5 ) Average number of common shares outstanding used to calculate basic earnings per common share 29,980 17,338 29,790 17,322 Effect of dilutive equity incentive plan — — 6 — Effect of dilutive stock options 140 — 204 — Average number of common shares outstanding used to calculate diluted earnings per common share 30,120 17,338 30,000 17,322 Basic earnings per share $ 0.13 $ 0.02 $ 0.30 $ 0.14 Diluted earnings per share $ 0.12 $ 0.02 $ 0.30 $ 0.14

COMPREHENSIVE INCOME_LOSS (Tabl

COMPREHENSIVE INCOME/LOSS (Tables)	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
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, 2017 December 31, (In thousands) Net unrealized losses on securities available-for-sale $ (4,093 ) $ (5,863 ) Tax effect 1,497 2,024 Net-of-tax amount (2,596 ) (3,839 ) Fair value of derivatives used for cash flow hedges (2,922 ) (3,152 ) Termination fees on forward starting interest rate swaps (4,203 ) (4,733 ) Total derivatives (7,125 ) (7,885 ) Tax effect 2,846 2,681 Net-of-tax amount (4,279 ) (5,204 ) Unrecognized actuarial loss on defined benefit plan (5,380 ) (5,482 ) Tax effect 2,148 1,864 Net-of-tax amount (3,232 ) (3,618 ) Accumulated other comprehensive loss $ (10,107 ) $ (12,661 )
Schedule of changes in accumulated other loss	The following table presents changes in accumulated other comprehensive loss for the periods ended June 30, 2017 and 2016 by component: Securities Derivatives Defined Accumulated (In thousands) 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 ) Balance at December 31, 2016 $ (3,839 ) $ (5,204 ) $ (3,618 ) $ (12,661 ) Current-period other comprehensive income 1,243 925 386 2,554 Balance at June 30, 2017 $ (2,596 ) $ (4,279 ) $ (3,232 ) $ (10,107 )

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Schedule of securities available for sale and held to maturity	Securities available-for-sale are summarized as follows: June 30, 2017 Amortized Gross Gross Fair Value (In thousands) Available-for-sale securities: Government-sponsored mortgage-backed securities $ 205,940 $ 114 $ (3,193 ) $ 202,861 U.S. government guaranteed mortgage-backed securities 16,714 — (453 ) 16,261 Corporate bonds 49,525 524 (59 ) 49,990 State and municipal bonds 3,504 22 (44 ) 3,482 Government-sponsored enterprise obligations 25,150 — (721 ) 24,429 Mutual funds 6,655 — (283 ) 6,372 Total available-for-sale $ 307,488 $ 660 $ (4,753 ) $ 303,395 December 31, 2016 Amortized Gross Gross Fair Value (In thousands) Available-for-sale securities: Government-sponsored mortgage-backed securities $ 184,127 $ 33 $ (4,024 ) $ 180,136 U.S. government guaranteed mortgage-backed securities 17,753 — (403 ) 17,350 Corporate bonds 50,255 265 (203 ) 50,317 State and municipal bonds 4,117 13 (122 ) 4,008 Government-sponsored enterprise obligations 43,140 — (1,132 ) 42,008 Mutual funds 6,586 — (290 ) 6,296 Total available-for-sale securities $ 305,978 $ 311 $ (6,174 ) $ 300,115
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 at June 30, 2017, 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, 2017 Amortized Cost Fair Value (In thousands) Mortgage-backed securities: Due after one year through five years $ 27,831 $ 27,740 Due after five years through ten years 7,522 7,463 Due after ten years 187,301 183,919 Total $ 222,654 $ 219,122 Debt securities: Due in one year or less $ 3,859 $ 3,884 Due after one year through five years 28,260 28,525 Due after five years through ten years 39,309 38,906 Due after ten years 6,751 6,586 Total $ 78,179 $ 77,901
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, 2017 and 2016 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) Gross gains realized $ 46 $ — $ 46 $ 1,520 Gross losses realized — (2 ) (64 ) (837 ) Net gain realized $ 46 $ (2 ) $ (18 ) $ 683
Schedule of securities with gross unrealized losses in continuous loss position	Information pertaining to securities with gross unrealized losses at June 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: June 30, 2017 Less Than 12 Months Over 12 Months Gross Fair Value Gross Fair Value (In thousands) Available-for-sale: Government-sponsored mortgage-backed securities $ 2,447 $ 150,960 $ 746 $ 21,022 U.S. government guaranteed mortgage-backed securities 188 10,568 265 5,692 Corporate bonds 59 6,678 — — State and municipal bonds 44 1,557 — — Government-sponsored enterprise obligations 721 24,429 — — Mutual funds 60 3,485 223 2,888 Total available-for-sale $ 3,519 $ 197,677 $ 1,234 $ 29,602 December 31, 2016 Less Than 12 Months Over 12 Months Gross Fair Value Gross Fair Value (In thousands) Available-for-sale: Government-sponsored mortgage-backed securities $ 3,016 $ 147,691 $ 1,008 $ 27,303 U.S. government guaranteed mortgage-backed securities 192 12,536 211 4,814 Corporate bonds 203 18,481 — — State and municipal bonds 95 1,507 27 305 Government-sponsored enterprise obligations 1,132 42,008 — — Mutual funds 79 3,429 211 2,867 Total available-for-sale $ 4,717 $ 225,652 $ 1,457 $ 35,289 June 30, 2017 Less Than 12 Months Over 12 Months Number Amortized Gross Depreciation Number Amortized Gross Depreciation (Dollars in thousands) Government sponsored mortgage-backed securities 58 $ 153,407 $ 2,447 1.6 % 9 $ 21,768 $ 746 3.4 % U.S. government guaranteed mortgage-backed securities 3 10,756 188 1.7 3 5,957 265 4.4 Government sponsored enterprise obligations 9 25,150 721 2.9 0 — — — Corporate bonds 3 6,737 59 0.9 0 — — — State and municipal bonds 3 1,601 44 2.7 0 — — — Mutual funds 1 3,545 60 1.7 2 3,111 223 7.2 $ 201,196 $ 3,519 $ 30,836 $ 1,234

LOANS AND ALLOWANCE FOR LOAN 26

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Schedule of loans	Loans consisted of the following amounts: June 30, December 31, 2017 2016 (In thousands) Commercial real estate $ 716,831 $ 720,741 Residential real estate: Residential 545,966 522,083 Home equity 92,240 92,083 Commercial and industrial 244,014 222,286 Consumer 4,531 4,424 Total Loans 1,603,582 1,561,617 Unearned premiums and deferred loan fees and costs, net 5,082 4,867 Allowance for loan losses (10,418 ) (10,068 ) $ 1,598,246 $ 1,556,416
Schedule of mortgage servicing rights	A summary of the activity in the balances of mortgage servicing rights follows: Three Months Six Months (In thousands) Balance at the beginning of period: $ 436 $ 465 Capitalized mortgage servicing rights — — Amortization (28 ) (57 ) Balance at the end of period $ 408 $ 408 Fair value at the end of period $ 570 $ 570
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, 2017 and 2016 is as follows: Commercial Residential Commercial Consumer Unallocated Total (In thousands) Three Months Ended 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 Balance at March 31, 2017 $ 4,334 $ 3,086 $ 2,744 $ 43 $ 20 $ 10,227 Provision (credit) 138 60 108 51 (7 ) 350 Charge-offs — (42 ) (120 ) (53 ) — (215 ) Recoveries — 22 22 12 — 56 Balance at June 30, 2017 $ 4,472 $ 3,126 $ 2,754 $ 53 $ 13 $ 10,418 Six Months Ended 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 Balance at December 31, 2016 $ 4,083 $ 2,862 $ 3,085 $ 38 $ — $ 10,068 Provision (credit) 307 281 (71 ) 120 13 650 Charge-offs (36 ) (41 ) (285 ) (133 ) — (495 ) Recoveries 118 24 25 28 — 195 Balance at June 30, 2017 $ 4,472 $ 3,126 $ 2,754 $ 53 $ 13 $ 10,418
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, 2017 and December 31, 2016 follows: Commercial Residential Commercial Consumer Unallocated Total (In thousands) June 30, 2017 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 4,472 3,126 2,754 53 13 10,418 Total allowance for loan losses $ 4,472 $ 3,126 $ 2,754 $ 53 $ 13 $ 10,418 Impaired loans $ 3,974 $ 3,172 $ 3,823 $ 116 $ — $ 11,085 Non-impaired loans 698,314 630,866 239,084 4,415 — 1,572,679 Loans acquired with deteriorated credit quality 14,543 4,168 1,107 — — 19,818 Total loans $ 716,831 $ 638,206 $ 244,014 $ 4,531 $ — $ 1,603,582 December 31, 2016 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 4,083 2,862 3,085 38 — 10,068 Total allowance for loan losses 4,083 2,862 3,085 38 — 10,068 Impaired loans 3,335 452 3,042 — — 6,829 Non-impaired loans 701,766 609,107 217,972 4,424 — 1,533,269 Loans acquired with deteriorated credit quality 15,640 4,607 1,272 — — 21,519 Total loans $ 720,741 $ 614,166 $ 222,286 $ 4,424 $ — $ 1,561,617
Schedule of past due and nonaccrual loans by class	The following is a summary of past due and non-accrual loans by class at June 30, 2017 and December 31, 2016: 30 – 59 Days 60 – 89 Days Greater than Total Past Past Due 90 Loans on Non- (In thousands) June 30, 2017 Commercial real estate $ 342 $ — $ 136 $ 478 $ — 2,185 Residential real estate: Residential 215 243 638 1,096 — 1,576 Home equity 290 246 — 536 — 36 Commercial and industrial 374 15 104 493 — 3,651 Consumer 59 6 29 94 — 37 Total legacy loans 1,280 510 907 2,697 — 7,485 Loans acquired from Chicopee Savings Bank 2,860 557 1,126 4,543 — 6,507 Total $ 4,140 $ 1,067 $ 2,033 $ 7,240 $ — $ 13,992 December 31, 2016 Commercial real estate $ 302 $ 555 $ 137 $ 994 $ — $ 2,740 Residential real estate: Residential 791 262 689 1,742 — 1,658 Home equity 208 36 — 244 — 37 Commercial and industrial 326 32 — 358 — 3,214 Consumer 27 9 7 43 — 14 Total legacy loans 1,654 894 833 3,381 — 7,663 Loans acquired from Chicopee Savings Bank 3,854 1,907 551 6,312 — 6,394 Total past due loans $ 5,508 $ 2,801 $ 1,384 $ 9,693 $ — $ 14,057
Schedule of impaired loans by class	The following is a summary of impaired loans by class at June 30, 2017 and December 31, 2016: Impaired Loans (1)(2) Three Months Ended Six Months Ended (1) At June 30, 2017 (1) June 30, 2017 June 30, 2017 Recorded Unpaid Average Interest Average Interest (In thousands) Impaired loans without a valuation allowance: Commercial real estate $ 18,517 $ 20,982 $ 19,202 $ 234 $ 19,316 $ 451 Residential real estate 7,093 7,612 6,822 11 6,314 23 Home equity 247 338 249 1 187 2 Commercial and industrial 4,930 11,336 4,740 67 4,586 129 Consumer 116 120 93 — 64 — Total impaired loans $ 30,903 $ 40,388 $ 31,106 $ 313 $ 30,467 $ 605 (1) Impaired Loans Three Months Ended Six Months Ended At December 31, 2016 (1) June 30, 2016 June 30, 2016 Recorded Unpaid Average Interest Average Interest (In thousands) Impaired loans without a valuation allowance: Commercial real estate $ 18,975 $ 21,330 $ 3,549 $ 20 $ 3,583 $ 32 Residential real estate 5,059 5,676 507 — 466 — Commercial and industrial 4,314 11,049 3,531 — 3,472 — Total impaired loans $ 28,348 $ 38,055 $ 7,587 $ 20 $ 7,521 $ 32 (1)
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 June 30, 2016 June 30, 2016 Number of Pre- Post- Number of 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 acquired with deteriorated credit quality	The following is a summary of loans acquired with evidence of credit deterioration from Chicopee as of June 30, 2017. Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2016 $ 37,437 $ 29,040 $ 8,397 $ 7,521 $ 21,519 Collections (2,314 ) (1,981 ) (333 ) (692 ) (1,289 ) Dispositions (632 ) (406 ) (226 ) 6 (412 ) Balance at June 30, 2017 $ 34,491 $ 26,653 $ 7,838 $ 6,835 $ 19,818
Schedule of loans by risk rating	The following table presents our loans by risk rating at June 30, 2017 and December 31, 2016: Commercial Residential Home Commercial Consumer Total (In thousands) June 30, 2017 Loans rated 1 – 3 $ 661,602 $ 540,028 $ 92,048 $ 191,012 $ 4,410 $ 1,489,100 Loans rated 4 32,529 — — 37,764 5 70,298 Loans rated 5 12,594 — — 5,920 — 18,514 Loans rated 6 10,106 5,938 192 9,318 116 25,670 $ 716,831 $ 545,966 $ 92,240 $ 244,014 $ 4,531 $ 1,603,582 December 31, 2016 Loans rated 1 – 3 $ 673,957 $ 516,339 $ 91,964 $ 180,675 $ 4,391 $ 1,467,326 Loans rated 4 24,207 — — 16,621 6 40,834 Loans rated 5 14,068 — — 6,727 — 20,795 Loans rated 6 6,604 5,744 119 15,379 27 27,873 Loans rated 7 1,905 — — 2,884 — 4,789 $ 720,741 $ 522,083 $ 92,083 $ 222,286 $ 4,424 $ 1,561,617

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	Goodwill for the six months ended June 30, 2017 is summarized as follows: Six Months Ended June 30, 2017 (In thousands) Balance at December 31, 2016 $ 13,747 Current period adjustments (1,260 ) Balance at June 30, 2017 $ 12,487
Schedule of other intangible assets	The resulting core deposit intangible is amortized over twelve years using the straight-line method. Core deposit intangibles are summarized as follows: Six Months Ended June 30, 2017 (In thousands) Balance at December 31, 2016 $ 4,438 Amortization (188 ) Balance at June 30, 2017 $ 4,250

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	A summary of stock option activity for the six months ended June 30, 2017 is presented below. No options were outstanding during the six months ended June 30, 2016. Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 1,178,899 $ 6.01 1.98 $ 3,930 Exercised (921,849 ) 5.93 0.91 3,675 Outstanding at June 30, 2017 257,050 $ 6.31 4.91 $ 982 Exercisable at June 30, 2017 257,050 $ 6.31 4.91 $ 982
Schedule of threshold, target and maximum	The threshold, target and maximum for the three year period under the 2017 Plan is as follows: Return on Equity Targets Performance Period Ending Threshold Target Maximum December 31, 2017 6.00 % 6.60 % 7.30 % December 31, 2018 6.30 % 7.00 % 7.60 % December 31, 2019 6.50 % 7.20 % 7.90 %
Schedule of unvested restricted stock awards	Our stock award plan activity for the six months ended June 30, 2017 and 2016 is summarized below: Unvested Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 91,371 $ 7.51 Shares granted 89,042 10.15 Shares vested (21,552 ) 7.44 Outstanding at June 30, 2017 158,861 $ 9.00 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

PENSION BENEFITS (Tables)

PENSION BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2017
Defined Benefit Plan [Abstract]
Schedule of net pension benefit costs	The following table provides information regarding net pension benefit costs for the periods shown: Three Months Ended June 30, Six Months Ended, June 30, 2017 2016 2017 2016 (In thousands) Service cost $ 266 $ 276 $ 533 $ 569 Interest cost 253 240 507 480 Expected return on assets (299 ) (275 ) (597 ) (549 ) Actuarial loss 51 31 102 47 Net periodic pension cost $ 271 $ 272 $ 545 $ 547

DERIVATIVES AND HEDGING ACTIV30

DERIVATIVES AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of fair values of derivative instruments on the balance sheet	The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of June 30, 2017 and December 31, 2016. June 30, 2017 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swaps Other Assets $ 7 Other Liabilities $ 2,929 December 31, 2016 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swaps Other Assets $ — Other Liabilities $ 3,152
Schedule of information about cash flow hedges	The following table presents information about our cash flow hedges at June 30, 2017 and December 31, 2016: June 30, 2017 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Interest rate swaps on FHLBB borrowings $ 75,000 2.9 1.20 % 2.46 % $ (2,922) December 31, 2016 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Interest rate swaps on FHLBB borrowings $ 75,000 3.4 0.92 % 2.46 % $ (3,152)
Schedule of pre-tax net gains (losses) of cash flow hedges	The table below presents the pre-tax net losses of our cash flow hedges for the periods indicated. Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Interest rate swaps $ (346 ) $ (729 ) $ (293 ) $ (3,280 )

FAIR VALUE OF ASSETS AND LIAB31

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale Government-sponsored mortgage-backed securities $ — $ 202,861 $ — $ 202,861 U.S. government guaranteed mortgage-backed securities — 16,261 — 16,261 Corporate bonds — 49,990 — 49,990 State and municipal bonds — 3,482 — 3,482 Government-sponsored enterprise obligations — 24,429 — 24,429 Mutual funds 6,372 — — 6,372 Total securities available-for-sale 6,372 297,023 — 303,395 Interest rate swaps — 7 — 7 Total assets $ 6,372 $ 297,030 $ — $ 303,402 Liabilities: Interest rate swaps $ — $ 2,929 $ — $ 2,929 December 31, 2016 Level 1 Level 2 Level 3 Total Assets: (In thousands) Government-sponsored mortgage-backed securities $ — $ 180,136 $ — $ 180,136 U.S. government guaranteed mortgage-backed securities — 17,350 — 17,350 Corporate bonds — 50,317 — 50,317 State and municipal bonds — 4,008 — 4,008 Government-sponsored enterprise obligations — 42,008 — 42,008 Mutual funds 6,296 — — 6,296 Total assets $ 6,296 $ 293,819 $ — $ 300,115 Liabilities: Interest rate swaps $ — $ 3,152 $ — $ 3,152
Schedule of assets measured at fair value on non-recurring basis	Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at June 30, 2016 At June 30, 2016 Three Months Ended Six Months Ended June 30, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) Total Gains (Losses) (In thousands) Impaired Loans $ — $ — $ 119 $ (50 ) $ (220 ) Total Assets $ — $ — $ 119 $ (50 ) $ (220 )
Summary of fair values of financial instruments	The estimated fair values of our financial instruments are as follows: June 30, 2017 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 19,407 $ 19,407 $ — $ — $ 19,407 Securities available-for-sale 303,395 6,372 297,023 — 303,395 Federal Home Loan Bank of Boston and other restricted stock 16,075 — — 16,075 16,075 Loans - net 1,598,246 — — 1,571,612 1 ,571,612 Accrued interest receivable 5,594 — — 5,594 5,594 Mortgage servicing rights 408 — 570 — 570 Derivative assets 7 — 7 — 7 Liabilities: Deposits 1,495,337 — — 1,498,194 1,498,194 Short-term borrowings 191,008 — 191,000 — 191,000 Long-term debt 117,704 — 118,113 — 118,113 Accrued interest payable 420 — — 420 420 Derivative liabilities 2,929 — 2,929 — 2,929 December 31, 2016 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 70,234 $ 70,234 $ — $ — $ 70,234 Securities available-for-sale 300,115 6,296 293,819 — 300,115 Federal Home Loan Bank of Boston and other restricted stock 16,124 — — 16,124 16,124 Loans - net 1,556,416 — — 1,525,274 1,525,274 Accrued interest receivable 5,782 — — 5,782 5,782 Mortgage servicing rights 465 — 628 — 628 Liabilities: Deposits 1,518,071 — — 1,521,580 1,521,580 Short-term borrowings 172,351 — 172,351 — 172,351 Long-term debt 124,836 — 125,183 — 125,183 Accrued interest payable 1,012 — — 1,012 1,012 Derivative liabilities 3,152 — 3,152 — 3,152

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Jun. 30, 2017Office
Western Massachusetts and Northern Connecticut [Member]
Number of banking offices in which bank operates	21

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings per common share
Net income applicable to common stock	$ 3,756	$ 389	$ 8,859	$ 2,353
Average number of common shares issued	30,882,000	18,294,000	30,696,000	18,281,000
Less: Average unallocated ESOP Shares	(861,000)	(945,000)	(873,000)	(954,000)
Less: Average unvested equity incentive plan shares	(41,000)	(11,000)	(33,000)	(5,000)
Average number of common shares outstanding used to calculate basic earnings per common share	29,980,518	17,337,955	29,790,164	17,321,022
Effect of dilutive equity incentive plan			6,000
Effect of dilutive stock options	140,000		204,000
Average number of common shares outstanding used to calculate diluted earnings per common share	30,120,025	17,337,955	30,000,280	17,321,022
Basic earnings per share	$ 0.13	$ 0.02	$ 0.3	$ 0.14
Diluted earnings per share	$ 0.12	$ 0.02	$ 0.3	$ 0.14

COMPREHENSIVE INCOME_LOSS (Deta

COMPREHENSIVE INCOME/LOSS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), net of tax amount, ending	$ (10,107)	$ (12,661)	$ (7,596)	$ (10,978)
Unrealized Losses Available For Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) before tax, beginning	(4,093)	(5,863)
Tax effect	1,497	2,024
Accumulated other comprehensive income (loss), net of tax amount, ending	(2,596)	(3,839)
Fair value of derivatives used for cash flow hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) before tax, beginning	(2,922)	(3,152)
Derivative Termination fees on forward starting interest rate swaps	(4,203)	(4,733)
Total derivatives	(7,125)	(7,885)
Tax effect	2,846	2,681
Accumulated other comprehensive income (loss), net of tax amount, ending	(4,279)	(5,204)
Unrecognized actuarial loss on defined benefit plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) before tax, beginning	(5,380)	(5,482)
Tax effect	2,148	1,864
Accumulated other comprehensive income (loss), net of tax amount, ending	$ (3,232)	$ (3,618)

COMPREHENSIVE INCOME_LOSS (De35

COMPREHENSIVE INCOME/LOSS (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ (12,661)	$ (10,978)
Current-period other comprehensive income (loss)	$ 931	$ 1,488	2,554	3,382
Ending balance	(10,107)	(7,596)	(10,107)	(7,596)
Defined Benefit Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(3,618)	(2,431)
Current-period other comprehensive income (loss)			386	31
Ending balance	(3,232)	(2,400)	(3,232)	(2,400)
Derivative [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(5,204)	(5,501)
Current-period other comprehensive income (loss)			925	(1,767)
Ending balance	(4,279)	(7,268)	(4,279)	(7,268)
Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(3,839)	(3,046)
Current-period other comprehensive income (loss)			1,243	5,118
Ending balance	$ (2,596)	$ 2,072	$ (2,596)	$ 2,072

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Available-for-sale securities
Amortized Cost	$ 307,488	$ 305,978
Gross Unrealized Gains	660	311
Gross Unrealized Losses	(4,753)	(6,174)
Fair Value	303,395	300,115
Government-Sponsored Mortgage-Backed Securities [Member]
Available-for-sale securities
Amortized Cost	205,940	184,127
Gross Unrealized Gains	114	33
Gross Unrealized Losses	(3,193)	(4,024)
Fair Value	202,861	180,136
US Government Guaranteed Mortgage-Backed Securities [Member]
Available-for-sale securities
Amortized Cost	16,714	17,753
Gross Unrealized Losses	(453)	(403)
Fair Value	16,261	17,350
Corporate Bonds [Member]
Available-for-sale securities
Amortized Cost	49,525	50,255
Gross Unrealized Gains	524	265
Gross Unrealized Losses	(59)	(203)
Fair Value	49,990	50,317
States and Municipal Bonds [Member]
Available-for-sale securities
Amortized Cost	3,504	4,117
Gross Unrealized Gains	22	13
Gross Unrealized Losses	(44)	(122)
Fair Value	3,482	4,008
Government-Sponsored Enterprise Obligations [Member]
Available-for-sale securities
Amortized Cost	25,150	43,140
Gross Unrealized Losses	(721)	(1,132)
Fair Value	24,429	42,008
Mutual Funds [Member]
Available-for-sale securities
Amortized Cost	6,655	6,586
Gross Unrealized Losses	(283)	(290)
Fair Value	$ 6,372	$ 6,296

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Investments [Line Items]
Available for Sale Securities, Amortized Cost, Total	$ 307,488	$ 305,978
Mortgage-Backed Securities [Member]
Schedule of Investments [Line Items]
Available for Sale Securities, Amortized Cost, Due after one year through five years	27,831
Available for Sale Securities, Amortized Cost, Due after five years through ten years	7,522
Available for Sale Securities, Amortized Cost, Due after ten years	187,301
Available for Sale Securities, Amortized Cost, Total	222,654
Available for Sale Securities, Fair Value, Due after one year through five years	27,740
Available for Sale Securities, Fair Value, Due after five years through ten years	7,463
Available for Sale Securities, Fair Value, Due after ten years	183,919
Available for Sale Securities, Fair Value, Total	219,122
Debt Securities [Member]
Schedule of Investments [Line Items]
Available for Sale Securities, Amortized Cost, Due in one year or less	3,859
Available for Sale Securities, Amortized Cost, Due after one year through five years	28,260
Available for Sale Securities, Amortized Cost, Due after five years through ten years	39,309
Available for Sale Securities, Amortized Cost, Due after ten years	6,751
Available for Sale Securities, Amortized Cost, Total	78,179
Available for Sale Securities, Fair Value, Due in one year or less	3,884
Available for Sale Securities, Fair Value, Due after one year through five years	28,525
Available for Sale Securities, Fair Value, Due after five years through ten years	38,906
Available for Sale Securities, Fair Value, Due after ten years	6,586
Available for Sale Securities, Fair Value, Total	$ 77,901

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Gross gains realized	$ 46		$ 46	$ 1,520
Gross losses realized		$ (2)	(64)	(837)
Net gain realized	$ 46	$ (2)	$ (18)	$ 683

SECURITIES (Details 3)

SECURITIES (Details 3) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)Security	Dec. 31, 2016USD ($)
Available for sale, Less Than 12 Months Gross Unrealized Losses	$ 3,519	$ 4,717
Available for sale, Less Than 12 Months Fair Value	197,677	225,652
Available for sale, Over 12 Months Gross Unrealized Losses	1,234	1,457
Available for sale, Over 12 Months Fair Value	29,602	35,289
Amortized Cost Basis - less than 12 months	201,196
Gross Loss - less than 12 months	3,519
Amortized Cost Basis - Over 12 Months	30,836
Gross Loss - Over 12 Months	1,234
Government-Sponsored Mortgage-Backed Securities [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses	2,447	3,016
Available for sale, Less Than 12 Months Fair Value	150,960	147,691
Available for sale, Over 12 Months Gross Unrealized Losses	746	1,008
Available for sale, Over 12 Months Fair Value	$ 21,022	27,303
Number of Securities - less than 12 months | Security	58
Amortized Cost Basis - less than 12 months	$ 153,407
Gross Loss - less than 12 months	$ 2,447
Depreciation from Amortized Cost Basis (%) - less than 12 months	1.60%
Number of Securities - Over 12 Months | Security	9
Amortized Cost Basis - Over 12 Months	$ 21,768
Gross Loss - Over 12 Months	$ 746
Depreciation from Amortized Cost Basis (%) - Over 12 months	3.40%
US Government Guaranteed Mortgage-Backed Securities [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses	$ 188	192
Available for sale, Less Than 12 Months Fair Value	10,568	12,536
Available for sale, Over 12 Months Gross Unrealized Losses	265	211
Available for sale, Over 12 Months Fair Value	$ 5,692	4,814
Number of Securities - less than 12 months | Security	3
Amortized Cost Basis - less than 12 months	$ 10,756
Gross Loss - less than 12 months	$ 188
Depreciation from Amortized Cost Basis (%) - less than 12 months	1.70%
Number of Securities - Over 12 Months | Security	3
Amortized Cost Basis - Over 12 Months	$ 5,957
Gross Loss - Over 12 Months	$ 265
Depreciation from Amortized Cost Basis (%) - Over 12 months	4.40%
Government-Sponsored Enterprise Obligations [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses	$ 721	1,132
Available for sale, Less Than 12 Months Fair Value	$ 24,429	42,008
Number of Securities - less than 12 months | Security	9
Amortized Cost Basis - less than 12 months	$ 25,150
Gross Loss - less than 12 months	$ 721
Depreciation from Amortized Cost Basis (%) - less than 12 months	2.90%
Number of Securities - Over 12 Months | Security	0
Corporate Bonds [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses	$ 59	203
Available for sale, Less Than 12 Months Fair Value	$ 6,678	18,481
Number of Securities - less than 12 months | Security	3
Amortized Cost Basis - less than 12 months	$ 6,737
Gross Loss - less than 12 months	$ 59
Depreciation from Amortized Cost Basis (%) - less than 12 months	0.90%
Number of Securities - Over 12 Months | Security	0
States and Municipal Bonds [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses	$ 44	95
Available for sale, Less Than 12 Months Fair Value	$ 1,557	1,507
Available for sale, Over 12 Months Gross Unrealized Losses		27
Available for sale, Over 12 Months Fair Value		305
Number of Securities - less than 12 months | Security	3
Amortized Cost Basis - less than 12 months	$ 1,601
Gross Loss - less than 12 months	$ 44
Depreciation from Amortized Cost Basis (%) - less than 12 months	2.70%
Number of Securities - Over 12 Months | Security	0
Mutual Funds [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses	$ 60	79
Available for sale, Less Than 12 Months Fair Value	3,485	3,429
Available for sale, Over 12 Months Gross Unrealized Losses	223	211
Available for sale, Over 12 Months Fair Value	$ 2,888	$ 2,867
Number of Securities - less than 12 months | Security	1
Amortized Cost Basis - less than 12 months	$ 3,545
Gross Loss - less than 12 months	$ 60
Depreciation from Amortized Cost Basis (%) - less than 12 months	1.70%
Number of Securities - Over 12 Months | Security	2
Amortized Cost Basis - Over 12 Months	$ 3,111
Gross Loss - Over 12 Months	$ 223
Depreciation from Amortized Cost Basis (%) - Over 12 months	7.20%

LOANS AND ALLOWANCE FOR LOAN 40

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 1,603,582		$ 1,561,617
Unearned premiums and deferred loan fees and costs, net	5,082		4,867
Allowance for loan losses	(10,418)	$ (10,227)	(10,068)	$ (9,570)	$ (8,855)	$ (8,840)
Loans, net	1,598,246		1,556,416
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	716,831		720,741
Allowance for loan losses	(4,472)	(4,334)	(4,083)	(3,956)	(3,786)	(3,856)
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	545,966		522,083
Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	92,240		92,083
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	244,014		222,286
Allowance for loan losses	(2,754)	(2,744)	(3,085)	(2,797)	(2,590)	(2,485)
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	4,531		4,424
Allowance for loan losses	$ (53)	$ (43)	$ (38)	$ (20)	$ (18)	$ (22)

LOANS AND ALLOWANCE FOR LOAN 41

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Servicing Asset [Roll Forward]
Balance at the beginning of period:	$ 436	$ 465
Amortization	(28)	(57)
Balance at the end of year	408	408
Fair value at the end of year	$ 570	$ 570

LOANS AND ALLOWANCE FOR LOAN 42

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Beginning Balance	$ 10,227	$ 8,855	$ 10,068	$ 8,840
Provision (credit)	350	625	650	25
Charge-offs	(215)	(18)	(495)	(260)
Recoveries	56	108	195	965
Ending Balance	10,418	9,570	10,418	9,570
Commercial Real Estate [Member]
Beginning Balance	4,334	3,786	4,083	3,856
Provision (credit)	138	75	307	(676)
Charge-offs			(36)	(170)
Recoveries		95	118	946
Ending Balance	4,472	3,956	4,472	3,956
Residential Real Estate [Member]
Beginning Balance	3,086	2,429	2,862	2,431
Provision (credit)	60	374	281	422
Charge-offs	(42)		(41)	(50)
Recoveries	22	1	24	1
Ending Balance	3,126	2,804	3,126	2,804
Commercial and Industrial [Member]
Beginning Balance	2,744	2,590	3,085	2,485
Provision (credit)	108	207	(71)	312
Charge-offs	(120)		(285)
Recoveries	22		25
Ending Balance	2,754	2,797	2,754	2,797
Consumer [Member]
Beginning Balance	43	18	38	22
Provision (credit)	51	8	120	20
Charge-offs	(53)	(18)	(133)	(40)
Recoveries	12	12	28	18
Ending Balance	53	20	53	20
Unallocated [Member]
Beginning Balance	20	32		46
Provision (credit)	(7)	(39)	13	(53)
Ending Balance	$ 13	$ (7)	$ 13	$ (7)

LOANS AND ALLOWANCE FOR LOAN 43

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of allowance for non-impaired loans	$ 10,418		$ 10,068
Total allowance for loan losses	10,418	$ 10,227	10,068	$ 9,570	$ 8,855	$ 8,840
Impaired loans	11,085		6,829
Non-impaired loans	1,572,679		1,533,269
Amount of loans acquired with deteriorated credit quality	19,818		21,519
Total loans	1,603,582		1,561,617
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of allowance for non-impaired loans	4,472		4,083
Total allowance for loan losses	4,472	4,334	4,083	3,956	3,786	3,856
Impaired loans	3,974		3,335
Non-impaired loans	698,314		701,766
Amount of loans acquired with deteriorated credit quality	14,543		15,640
Total loans	716,831		720,741
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of allowance for non-impaired loans	3,126		2,862
Total allowance for loan losses	3,126	3,086	2,862	2,804	2,429	2,431
Impaired loans	3,172		452
Non-impaired loans	630,866		609,107
Amount of loans acquired with deteriorated credit quality	4,168		4,607
Total loans	638,206		614,166
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of allowance for non-impaired loans	2,754		3,085
Total allowance for loan losses	2,754	2,744	3,085	2,797	2,590	2,485
Impaired loans	3,823		3,042
Non-impaired loans	239,084		217,972
Amount of loans acquired with deteriorated credit quality	1,107		1,272
Total loans	244,014		222,286
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of allowance for non-impaired loans	53		38
Total allowance for loan losses	53	43	38	20	18	22
Impaired loans	116
Non-impaired loans	4,415		4,424
Total loans	4,531		$ 4,424
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of allowance for non-impaired loans	13
Total allowance for loan losses	$ 13	$ 20		$ (7)	$ 32	$ 46

LOANS AND ALLOWANCE FOR LOAN 44

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	$ 2,697	$ 3,381
Loans acquired from Chicopee Savings Bank	4,543	6,312
Total Past Due	7,240	9,693
Total legacy loans on non-accrual	7,485	7,663
Loans acquired from Chicopee Savings Bank as non accrual	6,507	6,394
Total past due on non accrual	13,992	14,057
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	1,280	1,654
Loans acquired from Chicopee Savings Bank	2,860	3,854
Total Past Due	4,140	5,508
60 - 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	510	894
Loans acquired from Chicopee Savings Bank	557	1,907
Total Past Due	1,067	2,801
Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	907	833
Loans acquired from Chicopee Savings Bank	1,126	551
Total Past Due	2,033	1,384
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	478	994
Loans on Non-Accrual	2,185	2,740
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	342	302
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans		555
Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	136	137
Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	1,096	1,742
Loans on Non-Accrual	1,576	1,658
Residential [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	215	791
Residential [Member] | 60 - 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	243	262
Residential [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	638	689
Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	536	244
Loans on Non-Accrual	36	37
Home Equity [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	290	208
Home Equity [Member] | 60 - 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	246	36
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	493	358
Loans on Non-Accrual	3,651	3,214
Commercial and Industrial [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	374	326
Commercial and Industrial [Member] | 60 - 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	15	32
Commercial and Industrial [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	104
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	94	43
Loans on Non-Accrual	37	14
Consumer [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	59	27
Consumer [Member] | 60 - 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	6	9
Consumer [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total legacy loans	$ 29	$ 7

LOANS AND ALLOWANCE FOR LOAN 45

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2017		Jun. 30, 2016	[2]	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	[1]
Total Impaired loans:
Recorded Investment	$ 30,903				$ 30,903		$ 28,348
Unpaid Principal Balance	40,388				40,388		38,055
Average Recorded Investment	31,106	[2]	$ 7,587		30,467	$ 7,521
Interest Income Recognized	313	[2]	20		605	32
Commercial Real Estate [Member]
Total Impaired loans:
Recorded Investment	18,517				18,517		18,975
Unpaid Principal Balance	20,982				20,982		21,330
Average Recorded Investment	19,202	[2]	3,549		19,316	3,583
Interest Income Recognized	234	[2]	20		451	32
Residential Real Estate [Member]
Total Impaired loans:
Recorded Investment	7,093				7,093		5,059
Unpaid Principal Balance	7,612				7,612		5,676
Average Recorded Investment	6,822	[2]	507		6,314	466
Interest Income Recognized	11	[2]			23
Home Equity [Member]
Total Impaired loans:
Recorded Investment	247				247
Unpaid Principal Balance	338				338
Average Recorded Investment	249	[2]			187
Interest Income Recognized	1	[2]			2
Commercial and Industrial [Member]
Total Impaired loans:
Recorded Investment	4,930				4,930		4,314
Unpaid Principal Balance	11,336				11,336		$ 11,049
Average Recorded Investment	4,740	[2]	$ 3,531		4,586	$ 3,472
Interest Income Recognized	67	[2]			129
Consumer [Member]
Total Impaired loans:
Recorded Investment	116				116
Unpaid Principal Balance	120				120
Average Recorded Investment	$ 93	[2]			$ 64
[1]	Includes loans acquired with deteriorated credit quality from the Chicopee Bancorp, Inc. merger.
[2]	Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings.

LOANS AND ALLOWANCE FOR LOAN 46

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)Contracts	Jun. 30, 2016USD ($)Contracts
Number of Contracts | Contracts	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 | Contracts	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 | Contracts	2	3
Pre- Modification Outstanding Recorded Investment	$ 3,135	$ 3,150
Post- Modification Outstanding Recorded Investment	$ 3,135	$ 3,150
Residential Real Estate [Member]
Number of Contracts | Contracts		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 7) - Chicopee Bancorp Inc [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Loans receivable - Contractual Required Payments Receivable beginning	$ 37,437
Loans receivable - Cash Expected To Be Collected beginning	29,040
Loans receivable at acquisition - Non-Accretable Yield beginning	8,397
Loans receivable at acquisition - Accretable Yield beginning	7,521
Loans receivable at acquisition - Outstanding beginning	21,519
Collections - Contractually Required Payments Receivable	(2,314)
Collections - Cash Flows Expected to be Collected	(1,981)
Collections - Non-Accretable Yield	(333)
Collections - Accretable Yield	(692)
Collections	(1,289)
Dispositions - Contractually Required Payments Receivable	(632)
Dispositions - Cash Flows Expected to be Collected	(406)
Dispositions - Non-Accretable Yield	(226)
Dispositions - Accretable Yield	6
Dispositions	(412)
Loans receivable - Contractual Required Payments Receivable ending	34,491
Loans receivable - Cash Expected To Be Collected ending	26,653
Loans receivable at acquisition - Non-Accretable Yield ending	7,838
Loans receivable at acquisition - Accretable Yield ending	6,835
Loans receivable at acquisition - Outstanding ending	$ 19,818

LOANS AND ALLOWANCE FOR LOAN 48

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 1,603,582	$ 1,561,617
Loans rated 1-3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,489,100	1,467,326
Loans rated 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	70,298	40,834
Loans rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	18,514	20,795
Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	25,670	27,873
Loans rated 7 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		4,789
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	716,831	720,741
Commercial Real Estate [Member] | Loans rated 1-3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	661,602	673,957
Commercial Real Estate [Member] | Loans rated 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	32,529	24,207
Commercial Real Estate [Member] | Loans rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	12,594	14,068
Commercial Real Estate [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	10,106	6,604
Commercial Real Estate [Member] | Loans rated 7 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		1,905
Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	545,966	522,083
Residential [Member] | Loans rated 1-3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	540,028	516,339
Residential [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,938	5,744
Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	92,240	92,083
Home Equity [Member] | Loans rated 1-3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	92,048	91,964
Home Equity [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	192	119
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	244,014	222,286
Commercial and Industrial [Member] | Loans rated 1-3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	191,012	180,675
Commercial and Industrial [Member] | Loans rated 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	37,764	16,621
Commercial and Industrial [Member] | Loans rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,920	6,727
Commercial and Industrial [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	9,318	15,379
Commercial and Industrial [Member] | Loans rated 7 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		2,884
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	4,531	4,424
Consumer [Member] | Loans rated 1-3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	4,410	4,391
Consumer [Member] | Loans rated 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5	6
Consumer [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 116	$ 27

LOANS AND ALLOWANCE FOR LOAN 49

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)$ / Loan	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Purchase of residential mortgages	$ 34,375	$ 70,437
Serviced commercial loans for participants	33,900		$ 42,600
Mortgage loans serviced for others	69,900		75,200
Loans	1,603,582		1,561,617
Net service fee income	$ 34	$ 2
Weighted average internal rate of return	10.05%
Weighted average servicing fee	0.2501%
Net cost to service loans | $ / Loan	58.3
Commercial Real Estate - Construction Loans [Member]
Loans	$ 66,200		$ 88,900

GOODWILL AND OTHER INTANGIBLE50

GOODWILL AND OTHER INTANGIBLES (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Goodwill [Roll Forward]
Balance at beginning of the year	$ 13,747
Current period adjustments	(1,260)
Balance at end of the year	$ 12,487

GOODWILL AND OTHER INTANGIBLE51

GOODWILL AND OTHER INTANGIBLES (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Core Deposit Intangibles [Roll Forward]
Balance at end of the year	$ 4,250	$ 4,438
Core Deposit Intangibles [Member]
Core Deposit Intangibles [Roll Forward]
Balance at beginning of the year	4,438
Amortization	(188)
Balance at end of the year	$ 4,250

GOODWILL AND OTHER INTANGIBLE52

GOODWILL AND OTHER INTANGIBLES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Jun. 30, 2017
Acquired deposit liabilities		$ 545,700
Acquired core deposit liabilities		345,200
Amortization of core deposit intangible		188
Reduction in Goodwill	$ 1,400
Adjustment to aquire asset	2,400
Reamining adjustments to goodwill	$ 140
Core Deposit Intangibles [Member]
Acquired core deposit liabilities		4,500
Future amortization of core deposit intangible assets years 1-5		375
Future amortization of core deposit intangible assets thereafter		$ 2,400

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Options, Outstanding
Outstanding at beginning | shares	1,178,899
Exercised | shares	(921,849)
Outstanding at end | shares	257,050
Exercisable at end | shares	257,050
Options, Outstanding, Weighted Average Exercise Price
Outstanding at beginning | $ / shares	$ 6.01
Exercised | $ / shares	5.93
Outstanding at end | $ / shares	6.31
Exercisable at end | $ / shares	$ 6.31
Options, Outstanding, Weighted Average Remaining Contractual Term (in years)
Outstanding at beginning	1 year 11 months 23 days
Exercised	11 months 1 day
Outstanding at end	4 years 10 months 28 days
Exercisable at end	4 years 10 months 28 days
Options, Outstanding, Aggregate Intrinsic Value
Outstanding at beginning | $	$ 3,930
Exercised | $	3,675
Outstanding at end | $	982
Exercisable at end | $	$ 982

SHARE-BASED COMPENSATION (Det54

SHARE-BASED COMPENSATION (Details 1)	6 Months Ended
	Jun. 30, 2017
Threshold [Member]
December 31, 2017	6.00%
December 31, 2018	6.30%
December 31, 2019	6.50%
Target [Member]
December 31, 2017	6.60%
December 31, 2018	7.00%
December 31, 2019	7.20%
Maximum [Member]
December 31, 2017	7.30%
December 31, 2018	7.60%
December 31, 2019	7.90%

SHARE-BASED COMPENSATION (Det55

SHARE-BASED COMPENSATION (Details 2) - Restricted Stock [Member] - $ / shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Shares [Roll Forward]
Beginning balance	91,371	54,160
Shares granted	89,042	62,740
Shares vested	(21,552)	(11,200)
Ending balance	158,861	105,700
Weighted Average Grant Date Fair Value [Roll Forward]
Beginning balance	$ 7.51	$ 7.28
Shares granted	10.15	7.73
Shares vested	7.44	7.18
Ending balance	$ 9	$ 7.56

SHARE-BASED COMPENSATION (Det56

SHARE-BASED COMPENSATION (Detail Narrative) - USD ($) $ in Thousands	1 Months Ended			6 Months Ended
	May 31, 2017	May 31, 2016	Jan. 31, 2015	Jun. 30, 2017	Jun. 30, 2016	May 31, 2014
Restricted Stock Awards
Share-based compensation expense				$ 331	$ 101
Cash received for options exercised				$ 5,465
LTI Plan [Member]
Restricted Stock Awards
Shares granted	89,042	62,740
Share based compensation, shares available for grant				315,658
Stock Compensation Plan [Member]
Restricted Stock Awards
Shares authorized						516,000
Shares granted			48,560
Vesting term			5 years
Time-Vested Restricted Stock [Member] | LTI Plan [Member]
Restricted Stock Awards
Percent of awards under plan				50.00%
Performance Shares [Member] | LTI Plan [Member]
Restricted Stock Awards
Shares granted	33,883	26,197
Vesting term	3 years	3 years
Percent of awards under plan				50.00%
Return on equity - performance threshold		5.85%
Return on equity - target		6.32%
Performance Shares [Member] | LTI Plan [Member] | Threshold [Member]
Restricted Stock Awards
Percent of awards participants may earn		50.00%
Performance Shares [Member] | LTI Plan [Member] | Target [Member]
Restricted Stock Awards
Percent of awards participants may earn		100.00%
Performance Shares [Member] | LTI Plan [Member] | May 2017 Grants [Member] | Maximum [Member]
Restricted Stock Awards
Percent of awards participants may earn		150.00%
Retention Based Shares [Member] | LTI Plan [Member]
Restricted Stock Awards
Shares granted	55,159	36,543
Retention Based Shares [Member] | LTI Plan [Member] | Award, Tranche One [Member]
Restricted Stock Awards
Shares granted	21,276	10,352
Vesting term	1 year	1 year
Retention Based Shares [Member] | LTI Plan [Member] | Award, Tranche Two [Member]
Restricted Stock Awards
Shares granted	33,883	26,191
Vesting term	3 years	3 years

SHORT-TERM BORROWINGS AND LON57

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Detail Narrative) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Short-term borrowings	$ 191,008	$ 172,351
Long-term debt	117,704	124,836
Government-Sponsored Mortgage-Backed Securities [Member]
Fair value of collateralized repurchase agreements	6,800	24,600
Mortgage-Backed Securities [Member]
Fair value of collateralized repurchase agreements	67,900	57,600
Cutomer Repurchase Agreements [Member]
Customer repurchase agreements	16,800	17,400
FHLBB Ideal Way Line of Credit [Member]
Line of credit available	9,500	9,500
BBN [Member]
Line of credit available	4,000	4,000
Required cash reserve amount	300	300
PNC Bank [Member]
Line of credit available	50,000	50,000
FHLBB Advances [Member]
Short-term borrowings	174,200	155,000
Long-term debt	$ 117,700	$ 124,800

PENSION BENEFITS (Details)

PENSION BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Defined Benefit Plan [Abstract]
Service cost	$ 266	$ 276	$ 533	$ 569
Interest cost	253	240	507	480
Expected return on assets	(299)	(275)	(597)	(549)
Actuarial loss	51	31	102	47
Net periodic pension cost	$ 271	$ 272	$ 545	$ 547

DERIVATIVES AND HEDGING ACTIV59

DERIVATIVES AND HEDGING ACTIVITIES (Details) - Interest Rate Swap Agreement [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair value of derivative assets	$ 2,922	$ 3,152
Other Assets [Member] | Designated as Hedging Instrument [Member]
Fair value of derivative assets	7
Other Liabilities [Member] | Designated as Hedging Instrument [Member]
Fair value of derivative liability	$ 2,929	$ 3,152

DERIVATIVES AND HEDGING ACTIV60

DERIVATIVES AND HEDGING ACTIVITIES (Details 1) - Interest Rate Swap Agreement [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Notional Amount	$ 75,000	$ 75,000
Weighted Average Maturity	2 years 10 months 24 days	3 years 4 months 24 days
Weighted Average Rate Received	1.20%	0.92%
Weighted Average Rate Paid	2.46%	2.46%
Estimated Fair Value	$ (2,922)	$ (3,152)

DERIVATIVES AND HEDGING ACTIV61

DERIVATIVES AND HEDGING ACTIVITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest Rate Swap [Member] | Derivatives Designated As Cash Flow Hedges [Member]
Amount of Loss Recognized in OCI on Derivative	$ (346)	$ (729)	$ (293)	$ (3,280)

DERIVATIVES AND HEDGING ACTIV62

DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Termination value of derivatives in a net liability position	$ 2,900		$ 2,900
Estimated amount to be reclassified during the next 12 month period	1,900		1,900
Mortgage-Backed Securities [Member]
Fair value of mortgage backed securities collateralized	4,800		4,800
Terminated Foward Starting Interest Rate Swap [Member]
Derivative notional amount					$ 32,500	$ 47,500
Termination fees					$ 3,400	$ 2,400
Termination fees amortized period					6 years	5 years
Interest Rate Swap [Member]
Reclassifications amount, effective portion	$ 515	$ 356	$ 1,100	$ 603

FAIR VALUE OF ASSETS AND LIABLI

FAIR VALUE OF ASSETS AND LIABLITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 303,395	$ 300,115
Interest rate swaps - Assets	7
Interest rate swaps - Liabilities	2,929	3,152
Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	6,372	6,296
Government-Sponsored Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	202,861	180,136
US Government Guaranteed Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	16,261	17,350
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	49,990	50,317
States and Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	3,482	4,008
Government-Sponsored Enterprise Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	24,429	42,008
Fair Value - Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	6,372	6,296
Fair Value Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	297,023	293,819
Interest rate swaps - Assets	7
Interest rate swaps - Liabilities	2,929	3,152
Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	303,395
Interest rate swaps - Assets	7
Total assets	303,402	300,115
Interest rate swaps - Liabilities	2,929	3,152
Recurring [Member] | Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	6,372	6,296
Recurring [Member] | Government-Sponsored Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	202,861	180,136
Recurring [Member] | US Government Guaranteed Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	16,261	17,350
Recurring [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	49,990	50,317
Recurring [Member] | States and Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	3,482	4,008
Recurring [Member] | Government-Sponsored Enterprise Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	24,429	42,008
Recurring [Member] | Fair Value - Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	6,372
Total assets	6,372	6,296
Recurring [Member] | Fair Value - Level 1 [Member] | Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	6,372	6,296
Recurring [Member] | Fair Value Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	297,023
Interest rate swaps - Assets	7
Total assets	297,030	293,819
Interest rate swaps - Liabilities	2,929	3,152
Recurring [Member] | Fair Value Inputs Level 2 [Member] | Government-Sponsored Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	202,861	180,136
Recurring [Member] | Fair Value Inputs Level 2 [Member] | US Government Guaranteed Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	16,261	17,350
Recurring [Member] | Fair Value Inputs Level 2 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	49,990	50,317
Recurring [Member] | Fair Value Inputs Level 2 [Member] | States and Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	3,482	4,008
Recurring [Member] | Fair Value Inputs Level 2 [Member] | Government-Sponsored Enterprise Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	$ 24,429	$ 42,008

FAIR VALUE OF ASSETS AND LIAB64

FAIR VALUE OF ASSETS AND LIABLITIES (Details 1) - Nonrecurring [Member] $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (Losses) arising from fair value adjustment of assets	$ (50)	$ (220)
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (Losses) arising from fair value adjustment of assets	(50)	(220)
Fair Value Inputs Level 3 [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (Losses) arising from fair value adjustment of assets	119
Total assets	$ 119	$ 119

FAIR VALUE OF ASSETS AND LIAB65

FAIR VALUE OF ASSETS AND LIABLITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 19,407	$ 70,234
Securities available for sale	303,395	300,115
Federal Home Loan Bank of Boston and other restricted stock	16,075	16,124
Loans - net	1,571,612	1,525,274
Accrued interest receivable	5,594	5,782
Mortgage servicing rights	570	628
Derivative assets	7
Liabilities:
Deposits	1,498,194	1,521,580
Short-term borrowings	191,000	172,351
Long-term debt	118,113	125,183
Accrued interest payable	420	1,012
Derivative liabilities	2,929	3,152
Fair Value - Level 1 [Member]
Assets:
Cash and cash equivalents	19,407	70,234
Securities available for sale	6,372	6,296
Fair Value Inputs Level 2 [Member]
Assets:
Securities available for sale	297,023	293,819
Mortgage servicing rights	570	628
Derivative assets	7
Liabilities:
Short-term borrowings	191,000	172,351
Long-term debt	118,113	125,183
Derivative liabilities	2,929	3,152
Fair Value Inputs Level 3 [Member]
Assets:
Federal Home Loan Bank of Boston and other restricted stock	16,075	16,124
Loans - net	1,571,612	1,525,274
Accrued interest receivable	5,594	5,782
Liabilities:
Deposits	1,498,194	1,521,580
Accrued interest payable	420	1,012
Carrying Value [Member]
Assets:
Cash and cash equivalents	19,407	70,234
Securities available for sale	303,395	300,115
Federal Home Loan Bank of Boston and other restricted stock	16,075	16,124
Loans - net	1,598,246	1,556,416
Accrued interest receivable	5,594	5,782
Mortgage servicing rights	408	465
Derivative assets	7
Liabilities:
Deposits	1,495,337	1,518,071
Short-term borrowings	191,008	172,351
Long-term debt	117,704	124,836
Accrued interest payable	420	1,012
Derivative liabilities	$ 2,929	$ 3,152

RECENT ACCOUNTING PRONOUNCEME66

RECENT ACCOUNTING PRONOUNCEMENTS (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Stock Options [Member]
Tax benefit	$ 821