Western New England Bancorp (WNEB) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 02, 2018
Document And Entity Information
Entity Registrant Name	Western New England Bancorp, Inc.
Entity Central Index Key	1,157,647
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		29,315,837
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
CASH AND DUE FROM BANKS	$ 27,923	$ 21,607
FEDERAL FUNDS SOLD	6,259	322
INTEREST-BEARING DEPOSITS AND OTHER SHORT-TERM INVESTMENTS	27,817	5,203
CASH AND CASH EQUIVALENTS	61,999	27,132
SECURITIES AVAILABLE-FOR-SALE - AT FAIR VALUE	252,984	288,416
MARKETABLE EQUITY SECURITIES - AT FAIR VALUE	6,319
FEDERAL HOME LOAN BANK OF BOSTON AND OTHER RESTRICTED STOCK - AT COST	15,480	15,553
LOANS - Net of allowance for loan losses of $12,235 and $10,831 at September 30, 2018 and December 31, 2017, respectively	1,680,333	1,619,850
PREMISES AND EQUIPMENT, Net	24,460	23,500
ACCRUED INTEREST RECEIVABLE	5,831	5,946
BANK-OWNED LIFE INSURANCE	68,801	68,762
DEFERRED TAX ASSET, Net	10,557	8,784
GOODWILL	12,487	12,487
CORE DEPOSIT INTANGIBLE	3,781	4,063
OTHER ASSETS	7,493	8,577
TOTAL ASSETS	2,150,525	2,083,070
DEPOSITS :
Non-interest-bearing	357,845	311,851
Interest-bearing	1,251,174	1,194,231
Total deposits	1,609,019	1,506,082
SHORT-TERM BORROWINGS	55,000	144,650
LONG-TERM DEBT	224,306	164,786
OTHER LIABILITIES	20,915	20,271
TOTAL LIABILITIES	1,909,240	1,835,789
SHAREHOLDERS' EQUITY:
Common stock - $0.01 par value, 75,000,000 shares authorized, 29,453,808 shares issued and outstanding at September 30, 2018; 30,487,309 shares issued and outstanding at December 31, 2017	295	305
Additional paid-in capital	192,581	203,527
Unearned compensation - ESOP	(5,325)	(5,786)
Unearned compensation - Equity Incentive Plan	(1,010)	(791)
Retained earnings	71,402	62,578
Accumulated other comprehensive loss	(16,658)	(12,552)
TOTAL SHAREHOLDERS' EQUITY:	241,285	247,281
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,150,525	$ 2,083,070

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 12,235	$ 10,831
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	29,453,808	30,487,309
Common stock, outstanding	29,453,808	30,487,309

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
INTEREST AND DIVIDEND INCOME:
Residential and commercial real estate loans	$ 14,507	$ 13,474	$ 42,850	$ 40,042
Commercial and industrial loans	2,982	2,883	9,573	8,180
Consumer loans	88	88	261	260
Debt securities, taxable	1,709	1,828	5,227	5,529
Debt securities, tax-exempt	19	25	64	81
Equity securities	38	35	112	105
Other investments	228	172	631	501
Short-term investments	34	11	83	103
Total interest and dividend income	19,605	18,516	58,801	54,801
INTEREST EXPENSE:
Deposits	3,094	2,111	8,167	6,180
Long-term debt	1,193	534	3,178	1,633
Short-term borrowings	713	1,075	2,264	2,946
Total interest expense	5,000	3,720	13,609	10,759
Net interest and dividend income	14,605	14,796	45,192	44,042
PROVISION FOR LOAN LOSSES	350	200	1,600	850
Net interest and dividend income after provision for loan losses	14,255	14,596	43,592	43,192
NON-INTEREST INCOME (LOSS):
Service charges and fees	1,891	1,714	5,167	4,789
Income from bank-owned life insurance	448	450	1,374	1,369
Bank-owned life insurance death benefit			715
Gain (loss) on securities, net		70	(250)	52
Unrealized losses on marketable equity securities, net	(43)		(190)
Gain on sale of other real estate owned		67	48	67
Other income		111	131	227
Total non-interest income	2,296	2,412	6,995	6,504
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,451	6,490	19,548	18,954
Occupancy	952	891	2,979	2,815
Furniture and equipment	400	410	1,149	1,149
Data processing	642	680	1,957	1,740
Professional fees	767	642	2,107	1,919
FDIC insurance assessment	158	163	463	466
Merger related expenses				526
Advertising	351	328	1,053	961
Other expenses	1,851	1,552	5,288	4,892
Total non-interest expense	11,572	11,156	34,544	33,422
INCOME BEFORE INCOME TAXES	4,979	5,852	16,043	16,274
INCOME TAX PROVISION	1,070	2,037	3,476	3,600
NET INCOME	$ 3,909	$ 3,815	$ 12,567	$ 12,674
EARNINGS PER COMMON SHARE:
Basic earnings per share (in dollars per share)	$ 0.14	$ 0.13	$ 0.43	$ 0.42
Weighted average shares outstanding (in shares)	28,789	30,103	29,100	29,896
Diluted earnings per share (in dollars per share)	$ 0.14	$ 0.13	$ 0.43	$ 0.42
Weighted average diluted shares outstanding (in shares)	28,937	30,219	29,242	30,074

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income		$ 3,909	$ 3,815	$ 12,567	$ 12,674
Unrealized (losses) gains on securities:
Unrealized holding (losses) gains on available-for-sale securities		(1,635)	381	(8,059)	2,133
Reclassification adjustment for (gain) loss realized in income(1)	[1]		(70)	250	(52)
Unrealized (losses) gains on securities		(1,635)	311	(7,809)	2,081
Tax effect		404	(100)	1,733	(627)
Net-of-tax amount		(1,231)	211	(6,076)	1,454
Cash flow hedges:
Change in fair value of derivatives used for cash flow hedges		168	(14)	1,086	(307)
Reclassification adjustment for loss realized in interest expense(2)	[2]	82	228	355	751
Reclassification adjustment for termination fee realized in interest expense(3)	[3]	269	269	799	799
Unrealized gains on cash flow hedges		519	483	2,240	1,243
Tax effect		(145)	(133)	(629)	32
Net-of-tax amount		374	350	1,611	1,275
Defined benefit pension plan:
Amortization of defined benefit plan actuarial loss(4)	[4]	56	51	170	153
Tax effect		(16)	28	(48)	312
Net-of-tax amount		40	79	122	465
Other comprehensive (loss) income		(817)	640	(4,343)	3,194
Comprehensive income		$ 3,092	$ 4,455	$ 8,224	$ 15,868
[1]	Realized gains and losses on available-for-sale securities are recognized as a component of non-interest income. The tax effects applicable to net realized gains were $29,000 for the three months ended September 30, 2017. The tax effects applicable to net realized (loss) gains were $(70,000) and $21,000 for the nine months ended September 30, 2018 and 2017, respectively.
[2]	Loss realized in interest expense on derivative instruments is recognized as a component of interest expense on short-term borrowings. Income tax effects associated with the reclassification adjustments were $23,000 and $93,000 for the three months ended September 30, 2018 and 2017, respectively. Income tax effects associated with the reclassification adjustments were $100,000 and $307,000 for the nine months ended September 30, 2018 and 2017, respectively.
[3]	Loss realized in interest expense on derivative instruments is recognized as a component of interest expense on short-term borrowings. Income tax effects associated with the reclassification adjustments were $76,000 and $110,000 for the three months ended September 30, 2018 and 2017, respectively. Income tax effects associated with the reclassification adjustments were $225,000 and $326,000 for the nine months ended September 30, 2018 and 2017, respectively.
[4]	Amounts represent the reclassification of defined benefit plan amortization and have been recognized as a component of non-interest expense. Income tax effects associated with the reclassification adjustments were $16,000 and $21,000 for the three months ended September 30, 2018 and 2017, respectively. Income tax effects associated with the reclassification adjustments were $48,000 and $63,000 for the nine months ended September 30, 2018 and 2017, respectively.

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Income tax benefits on realized losses on available-for-sale securities		$ 29	$ (70)	$ 21
Income tax benefit on derivative instruments	$ 23	93	100	307
Income tax benefit on termination fee on derivative instruments	76	110	225	326
Income tax benefit, defined benefit plans	$ 16	$ 21	$ 48	$ 63

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED (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
BALANCE AT BEGINNING at Dec. 31, 2016	$ 304	$ 205,996	$ (6,418)	$ (536)	$ 51,711	$ (12,661)	$ 238,396
BALANCE AT BEGINNING (shares) at Dec. 31, 2016	30,380,231
Comprehensive income					12,674	3,194	15,868
Common stock held by ESOP committed to be released		226	472				698
Share-based compensation - equity incentive plan				490			490
Common stock repurchased	$ (5)	(5,667)					(5,672)
Common stock repurchased (in shares)	(574,309)
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 (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 (shares)	89,042
Cash dividends declared and paid					(2,690)		(2,690)
BALANCE AT ENDING at Sep. 30, 2017	$ 309	206,914	(5,946)	(950)	61,695	(9,467)	252,555
BALANCE AT ENDING (shares) at Sep. 30, 2017	30,816,813
BALANCE AT BEGINNING at Dec. 31, 2017	$ 305	203,527	(5,786)	(791)	62,578	(12,552)	247,281
BALANCE AT BEGINNING (shares) at Dec. 31, 2017	30,487,309
Comprehensive income					12,567	(4,343)	8,224
Cumulative-effect adjustment due to change in accounting principle (ASU 2016-01) at Dec. 31, 2017					(237)	237
Common stock held by ESOP committed to be released		271	461				732
Share-based compensation - equity incentive plan				707			707
Common stock repurchased	$ (11)	(12,256)					(12,267)
Common stock repurchased (in shares)	(1,137,916)
Issuance of common stock in connection with stock option exercises		114					114
Issuance of common stock in connection with stock option exercises (shares)	18,975
Issuance of common stock in connection with equity incentive plan	$ 1	925		(926)
Issuance of common stock in connection with equity incentive plan (shares)	85,440
Cash dividends declared and paid					(3,506)		(3,506)
BALANCE AT ENDING at Sep. 30, 2018	$ 295	$ 192,581	$ (5,325)	$ (1,010)	$ 71,402	$ (16,658)	$ 241,285
BALANCE AT ENDING (shares) at Sep. 30, 2018	29,453,808

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Statement of Stockholders' Equity [Abstract]
Common stock held by ESOP committed to be released (shares)	90,978	93,679
Cash dividends declared (per share)	$ 0.12	$ 0.09

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
OPERATING ACTIVITIES:
Net income	$ 12,567	$ 12,674
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	1,600	850
Depreciation and amortization of premises and equipment	1,530	1,468
Accretion of purchase accounting adjustments, net	(1,052)	(1,431)
Amortization of core deposit intangible	282	282
Net amortization of premiums and discounts on securities and mortgage loans	1,839	2,577
Share-based compensation expense	707	490
ESOP expense	732	698
Unrealized losses on marketable equity securities, net	190
Net loss (gain) on redemption and sales of securities	250	(52)
Gain on sale of other real estate owned	(48)	(67)
Deferred income tax benefit		(973)
Income from bank-owned life insurance	(1,374)	(1,369)
Bank-owned life insurance death benefits	(715)
Net change in:
Accrued interest receivable	115	18
Other assets	552	(3,578)
Other liabilities	3,205	1,995
Net cash provided by operating activities	20,380	13,582
Securities, available for sale:
Purchases	(12,146)	(67,246)
Proceeds from redemptions and sales	12,501	22,453
Proceeds from calls, maturities, and principal collections	18,393	46,576
Purchase of residential mortgages		(48,205)
Loan originations and principal payments, net	(61,445)	(4,133)
Redemption of Federal Home Loan Bank of Boston stock	73	420
Proceeds from sale of other real estate owned	203	365
Purchases of premises and equipment	(2,565)	(1,645)
Proceeds from sale of premises and equipment	45
Proceeds from payout on bank-owned life insurance	2,050
Net cash used in investing activities	(42,891)	(51,415)
FINANCING ACTIVITIES:
Net increase (decrease) in deposits	103,164	(2,120)
Net change in short-term borrowings	(89,650)	20,114
Repayment of long-term debt	(53,322)	(19,700)
Proceeds from long-term debt	113,000	1,420
Cash dividends paid	(3,506)	(2,690)
Common stock repurchased	(12,422)	(5,990)
Issuance of common stock in connection with stock option exercises	114	5,465
Net cash provided by (used in) financing activities	57,378	(3,501)
NET CHANGE IN CASH AND CASH EQUIVALENTS:	34,867	(41,334)
Beginning of period	27,132	70,234
End of period	61,999	28,900
Supplemental cash flow information:
Net change in cash due to broker for common stock repurchased	(155)	(318)
Interest paid	13,433	10,774
Taxes paid	$ 2,507	$ 3,658

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
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 22 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 On October 21, 2016, we acquired Chicopee Bancorp, Inc. (“Chicopee”), the holding company for Chicopee Savings Bank. The acquisition added eight full-service banking offices located in western Massachusetts. The primary purpose of the acquisition with Chicopee was to expand our presence in western Massachusetts and diversify our market area. The transaction qualified as a tax-free reorganization for federal income tax purposes. Merger consideration paid in the transaction to shareholders of Chicopee totaled $98.8 million, consisting of 11,919,412 shares of Company common stock, net of shares of Chicopee already owned, and shares of Chicopee’s ESOP liquidated to pay off the ESOP loan. We accounted for the transaction using the acquisition method. The acquisition method requires an acquirer to recognize the assets acquired and the liabilities assumed at fair value as of the acquisition date. Additionally, our results of operations include Chicopee’s operating results from the date of 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, 2017, included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”). Reclassifications

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2018
Earnings Per Share, Basic [Abstract]
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 nine months ended September 30, 2018 and 2017 have been computed based on the following: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (In thousands, except per share data) Net income applicable to common stock $ 3,909 $ 3,815 $ 12,567 $ 12,674 Average number of common shares issued 29,627 31,001 29,958 30,799 Less: Average unallocated ESOP Shares (745 ) (838 ) (768 ) (861 ) Less: Average unvested equity incentive plan shares (93 ) (60 ) (90 ) (42 ) Average number of common shares outstanding used to calculate basic earnings per common share 28,789 30,103 29,100 29,896 Effect of dilutive equity incentive plan 49 26 42 12 Effect of dilutive stock options 99 90 100 166 Average number of common shares outstanding used to calculate diluted earnings per common share 28,937 30,219 29,242 30,074 Basic earnings per share $ 0.14 $ 0.13 $ 0.43 $ 0.42 Diluted earnings per share $ 0.14 $ 0.13 $ 0.43 $ 0.42

COMPREHENSIVE INCOME_LOSS

COMPREHENSIVE INCOME/LOSS	9 Months Ended
	Sep. 30, 2018
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 (loss). The components of accumulated other comprehensive loss included in shareholders’ equity are as follows: September 30, 2018 December 31, 2017 (In thousands) Net unrealized losses on securities available-for-sale $ (13,167 ) $ (5,358 ) Tax effect 3,286 1,316 Net-of-tax amount (9,881 ) (4,042 ) Fair value of derivatives used for cash flow hedges (712 ) (2,152 ) Termination fees on cancelled cash flow hedges (2,864 ) (3,664 ) Total derivatives (3,576 ) (5,816 ) Tax effect 1,006 1,635 Net-of-tax amount (2,570 ) (4,181 ) Unrecognized actuarial loss on defined benefit plan (5,851 ) (6,021 ) Tax effect 1,644 1,692 Net-of-tax amount (4,207 ) (4,329 ) Accumulated other comprehensive loss $ (16,658 ) $ (12,552 ) The following table presents changes in accumulated other comprehensive loss for the periods ended September 30, 2018 and 2017 by component: Securities Derivatives Defined Benefit Plan Accumulated Other Comprehensive Loss (In thousands) Balance at December 31, 2016 $ (3,839 ) $ (5,204 ) $ (3,618 ) $ (12,661 ) Current-period other comprehensive income 1,454 1,275 465 3,194 Balance at September 30, 2017 $ (2,385 ) $ (3,929 ) $ (3,153 ) $ (9,467 ) Balance at December 31, 2017 $ (4,042 ) $ (4,181 ) $ (4,329 ) $ (12,552 ) Cumulative-effect adjustment due to change in accounting principle (ASU 2016-01) 237 — — 237 Current-period other comprehensive (loss) income (6,076 ) 1,611 122 (4,343 ) Balance at September 30, 2018 $ (9,881 ) $ (2,570 ) $ (4,207 ) $ (16,658 )

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
SECURITIES	4. SECURITIES Securities available-for-sale are summarized as follows: September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Government-sponsored mortgage-backed securities $ 167,601 $ 2 $ (8,672 ) $ 158,931 U.S. government guaranteed mortgage-backed securities 20,507 — (1,060 ) 19,447 Corporate bonds 49,915 — (1,533 ) 48,382 State and municipal bonds 2,978 22 (88 ) 2,912 Government-sponsored enterprise obligations 25,150 — (1,838 ) 23,312 Total available-for-sale $ 266,151 $ 24 $ (13,191 ) $ 252,984 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Government-sponsored mortgage-backed securities $ 185,769 $ 10 $ (3,778 ) $ 182,001 U.S. government guaranteed mortgage-backed securities 16,821 — (567 ) 16,254 Corporate bonds 56,084 352 (292 ) 56,144 State and municipal bonds 3,222 36 (19 ) 3,239 Government-sponsored enterprise obligations 25,151 — (770 ) 24,381 Mutual funds 6,727 — (330 ) 6,397 Total available-for-sale securities $ 293,774 $ 398 $ (5,756 ) $ 288,416 At September 30, 2018, government-sponsored enterprise obligations with a fair value of $6.4 million and mortgage-backed securities with a fair value $70.8 million were pledged to secure public deposits and for other purposes as required or permitted by law. The securities collateralizing public deposits 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 such deposits. In 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-01 , Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, The main significant effect resulting from the adoption of this ASU is that marketable equity securities previously reported within securities available-for-sale are now shown as a single line item (“Marketable equity securities”) in the Company’s balance sheet and the recognition in net income of the changes in fair value of Marketable equity securities. The cumulative-effect adjustment resulting from the adoption of this ASU was to decrease retained earnings and reduce accumulated other comprehensive loss as of January 1, 2018 by $237,000. The amortized cost and fair value of available-for-sale debt securities at September 30, 2018, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations. Also, because mortgage-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary. September 30, 2018 Amortized Cost Fair Value (In thousands) Available-for-sale securities: Debt securities: Due in one year or less $ 240 $ 241 Due after one year through five years 40,798 39,714 Due after five years through ten years 30,257 28,502 Due after ten years 6,748 6,149 Total securities 78,043 74,606 Mortgage-backed securities 188,108 178,378 Total $ 266,151 $ 252,984 Gross realized gains and losses on sales of securities available-for-sale for the three and nine months ended September 30, 2018 and 2017 are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (In thousands) Gross gains realized $ — $ 71 $ — $ 117 Gross losses realized — (1 ) (250 ) (65 ) Net gain realized $ — $ 70 $ (250 ) $ 52 Proceeds from the sale and redemption of securities available-for-sale amounted to $12.5 million and $22.5 million for the nine months ended September 30, 2018 and 2017, respectively. Information pertaining to securities with gross unrealized losses at September 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: September 30, 2018 Less Than Twelve Months Over Twelve Months Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Government-sponsored mortgage-backed securities 8 $ 18,257 $ 600 3.2 % 70 $ 140,592 $ 8,072 5.4 % U.S. government guaranteed mortgage-backed securities 3 4,716 81 1.7 7 14,731 979 6.2 Government-sponsored enterprise obligations 0 — — — 9 23,312 1,838 7.3 Corporate bonds 9 33,244 788 2.3 6 15,138 745 4.7 State and municipal bonds 0 — — — 3 1,510 88 5.5 $ 56,217 $ 1,469 $ 195,283 $ 11,722 December 31, 2017 Less Than Twelve Months Over Twelve Months Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Government-sponsored mortgage-backed securities 21 $ 68,538 $ 613 0.9 % 53 $ 111,595 $ 3,165 2.8 % U.S. government guaranteed mortgage-backed securities 1 1,205 23 1.8 6 15,049 544 3.5 Government-sponsored enterprise obligations 0 — — — 9 24,381 770 3.1 Corporate bonds 9 26,016 292 1.1 0 — — — State and municipal bonds 0 — — — 3 1,581 19 1.2 Mutual funds 0 — — — 3 6,397 330 4.9 $ 95,759 $ 928 $ 159,003 $ 4,828 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	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
LOANS AND ALLOWANCE FOR LOAN LOSSES	5. LOANS AND ALLOWANCE FOR LOAN LOSSES Loans consisted of the following amounts: September 30, December 31, 2018 2017 (In thousands) Commercial real estate $ 764,749 $ 732,616 Residential real estate: Residential 574,637 557,752 Home equity 95,645 92,599 Commercial and industrial 247,869 238,502 Consumer 5,105 4,478 Total Loans 1,688,005 1,625,947 Unearned premiums and deferred loan fees and costs, net 4,563 4,734 Allowance for loan losses (12,235 ) (10,831 ) $ 1,680,333 $ 1,619,850 There were no purchases of loans during the nine months ended September 30, 2018. During the nine months ended September 30, 2017, we purchased residential real estate loans aggregating $48.2 million. 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 September 30, 2018 and December 31, 2017, we serviced commercial loans for participants aggregating $35.7 million and $32.6 million, respectively. Residential real estate loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances of these loans totaled $58.1 million and $65.8 million at September 30, 2018 and December 31, 2017, respectively. Net service fee income of $68,000 and $49,000 was recorded for the nine months ended September 30, 2018 and 2017, 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 September 30, 2018, include weighted average prepayment speed for the portfolio using the Public Securities Association Standard Prepayment Model (122 PSA), weighted average internal rate of return (12.04%), weighted average servicing fee (0.2501%), and average net cost to service loans ($83.84 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 Ended September 30, 2018 Nine Months Ended September 30, 2018 (In thousands) Balance at the beginning of period: $ 319 $ 352 Capitalized mortgage servicing rights — — Amortization (17 ) (50 ) Balance at the end of period $ 302 $ 302 Fair value at the end of period $ 469 $ 469 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 September 30, 2018 and 2017 is as follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) Three Months Ended Balance at June 30, 2017 $ 4,472 $ 3,126 $ 2,754 $ 53 $ 13 $ 10,418 Provision (credit) (68 ) 146 (109 ) 83 148 200 Charge-offs — (107 ) — (104 ) — (211 ) Recoveries — 80 3 28 — 111 Balance at September 30, 2017 $ 4,404 $ 3,245 $ 2,648 $ 60 $ 161 $ 10,518 Balance at June 30, 2018 $ 5,458 $ 3,529 $ 2,922 $ 92 $ (15 ) $ 11,986 Provision (credit) (389 ) 481 211 45 2 350 Charge-offs — (393 ) (30 ) (40 ) — (463 ) Recoveries 334 9 8 11 — 362 Balance at September 30, 2018 $ 5,403 $ 3,626 $ 3,111 $ 108 $ (13 ) $ 12,235 Nine Months Ended Balance at December 31, 2016 $ 4,083 $ 2,862 $ 3,085 $ 38 $ — $ 10,068 Provision (credit) 239 427 (180 ) 203 161 850 Charge-offs (36 ) (148 ) (285 ) (237 ) — (706 ) Recoveries 118 104 28 56 — 306 Balance at September 30, 2017 $ 4,404 $ 3,245 $ 2,648 $ 60 $ 161 $ 10,518 Balance at December 31, 2017 $ 4,712 $ 3,311 $ 2,733 $ 71 $ 4 $ 10,831 Provision (credit) 322 762 415 118 (17 ) 1,600 Charge-offs — (473 ) (55 ) (125 ) — (653 ) Recoveries 369 26 18 44 — 457 Balance at September 30, 2018 $ 5,403 $ 3,626 $ 3,111 $ 108 $ (13 ) $ 12,235 Further information pertaining to the allowance for loan losses by segment at September 30, 2018 and December 31, 2017 follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) September 30, 2018 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 5,403 3,626 3,111 108 (13 ) 12,235 Total allowance for loan losses $ 5,403 $ 3,626 $ 3,111 $ 108 $ (13 ) $ 12,235 Impaired loans $ 2,907 $ 4,525 $ 3,547 $ 61 $ — $ 11,040 Non-impaired loans 750,636 662,534 243,380 5,044 — 1,661,594 Loans acquired with deteriorated credit quality 11,206 3,223 942 — — 15,371 Total loans $ 764,749 $ 670,282 $ 247,869 $ 5,105 $ — $ 1,688,005 December 31, 2017 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 4,712 3,311 2,733 71 4 10,831 Total allowance for loan losses 4,712 $ 3,311 $ 2,733 $ 71 $ 4 $ 10,831 Impaired loans $ 3,674 $ 3,964 $ 2,766 $ 120 $ — $ 10,524 Non-impaired loans 716,571 642,787 234,582 4,358 — 1,598,298 Loans acquired with deteriorated credit quality 12,371 3,600 1,154 — — 17,125 Total loans $ 732,616 $ 650,351 $ 238,502 $ 4,478 $ — $ 1,625,947 The following is a summary of past due and non-accrual loans by class at September 30, 2018 and December 31, 2017: 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Past Due 90 Days or More and Still Accruing Non-Accrual Loans (In thousands) September 30, 2018 Commercial real estate $ 751 $ 2,805 $ 471 $ 4,027 $ — $ 2,405 Residential real estate: Residential 2,606 582 1,510 4,698 — 5,891 Home equity 321 96 60 477 — 692 Commercial and industrial 681 253 748 1,682 — 3,734 Consumer 58 — 18 76 — 60 Total $ 4,417 $ 3,736 $ 2,807 $ 10,960 $ — $ 12,782 December 31, 2017 Commercial real estate $ 1,951 $ 144 $ 290 $ 2,385 $ — $ 2,959 Residential real estate: Residential 2,992 1,480 1,911 6,383 — 5,961 Home equity 635 — 48 683 — 696 Commercial and industrial 1,731 797 162 2,690 — 3,019 Consumer 65 — 41 106 — 120 Total $ 7,374 $ 2,421 $ 2,452 $ 12,247 $ — $ 12,755 The following is a summary of impaired loans by class at September 30, 2018 and December 31, 2017: Three Months Ended Nine Months Ended (1) At September 30, 2018 (1) September 30, 2018 September 30, 2018 Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired Loans (1) Commercial real estate $ 14,113 $ 16,967 $ 14,240 $ 186 $ 14,736 $ 558 Residential real estate 7,008 8,019 7,302 14 6,949 33 Home equity 740 782 613 1 652 3 Commercial and industrial 4,489 9,023 4,413 34 4,201 106 Consumer 61 70 78 — 93 — Total impaired loans $ 26,411 $ 34,861 $ 26,646 $ 235 $ 26,631 $ 700 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. Three Months Ended Nine Months Ended At December 31, 2017 September 30, 2017 September 30, 2017 Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired Loans (1) Commercial real estate $ 16,045 $ 18,773 $ 17,731 $ 199 $ 18,788 $ 650 Residential real estate 6,816 7,298 7,016 11 6,548 34 Home equity 748 783 407 1 260 3 Commercial and industrial 3,920 9,215 4,442 54 4,538 183 Consumer 120 129 122 — 83 — Total impaired loans $ 27,649 $ 36,198 $ 29,718 $ 265 $ 30,217 $ 870 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. No interest income was recognized for impaired loans on a cash-basis method during the three and nine months ended September 30, 2018 or 2017. Interest income recognized on impaired loans during the three and nine months ended September 30, 2018 and 2017 related to performing purchase impaired loans and troubled debt restructuring (“TDRs”). We may periodically agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. These concessions could include a reduction in the interest rate on the loan, payment extensions, postponement or forgiveness of principal, forbearance or other actions intended to maximize collection. All TDRs are classified as impaired. When we modify loans in a TDR, we measure impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all TDRs, including those that have payment defaults, for possible impairment and recognize impairment through the allowance. Nonperforming TDRs are shown as nonperforming assets. There were no loans modified as TDRs during the three and nine months ended September 30, 2018 or 2017. 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 nine months ended September 30, 2018 or 2017. There were no charge-offs on TDRs during the three and nine months ended September 30, 2018 or 2017. Loans Acquired with Deteriorated Credit Quality The following is a summary of loans acquired with evidence of credit deterioration from Chicopee as of September 30, 2018 and 2017. Contractual Required Payments Receivable Cash Expected To Be Collected Non- Accretable Discount Accretable Yield Loans Receivable (In thousands) Balance at December 31, 2017 $ 29,362 $ 23,158 $ 6,204 $ 6,033 $ 17,125 Collections (3,370 ) (2,258 ) (1,112 ) (504 ) (1,754 ) Dispositions — — — — — Balance at September 30, 2018 $ 25,992 $ 20,900 $ 5,092 $ 5,529 $ 15,371 Contractual Required Payments Receivable Cash Expected To Be Collected Non- Accretable Discount Accretable Yield Loans Receivable (In thousands) Balance at December 31, 2016 $ 37,437 $ 29,040 $ 8,397 $ 7,521 $ 21,519 Collections (3,860 ) (3,326 ) (534 ) (1,003 ) (2,323 ) Dispositions (1,833 ) (1,503 ) (330 ) 6 (1,509 ) Balance at September 30, 2017 $ 31,744 $ 24,211 $ 7,533 $ 6,524 $ 17,687 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 – 4 are considered “Pass” or “Pass Watch” rated loans with acceptable risk. 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 $103.6 million and $84.4 million at September 30, 2018 and December 31, 2017, 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 September 30, 2018 and December 31, 2017: Commercial Real Estate Residential 1-4 Family Home Equity Commercial and Industrial Consumer Total (In thousands) September 30, 2018 Loans rated 1 – 4 $ 731,634 $ 567,957 $ 94,720 $ 212,202 $ 5,045 $ 1,611,558 Loans rated 5 14,506 — — 11,373 — 25,879 Loans rated 6 18,609 6,680 925 24,294 60 50,568 $ 764,749 $ 574,637 $ 95,645 $ 247,869 $ 5,105 $ 1,688,005 December 31, 2017 Loans rated 1 – 4 $ 708,992 $ 551,469 $ 91,903 $ 205,537 $ 4,475 $ 1,562,376 Loans rated 5 15,098 — — 24,565 — 39,663 Loans rated 6 8,526 6,283 696 8,400 3 23,908 $ 732,616 $ 557,752 $ 92,599 $ 238,502 $ 4,478 $ 1,625,947

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLES	6. GOODWILL AND OTHER INTANGIBLES At September 30, 2018 and December 31, 2017, the Company’s goodwill related to the acquisition of Chicopee in October 2016. No goodwill impairment was recorded for the nine months ended September 30, 2018. Annually, or more frequently if events or changes in circumstances warrant such evaluation, the Company evaluates its goodwill for impairment. Core Deposit Intangibles In connection with the acquisition of Chicopee, the Bank recorded a core deposit intangible of $4.5 million which is amortized over twelve years using the straight-line method. Amortization expense was $282,000 for the nine months ended September 30, 2018. At September 30, 2018, future amortization of the core deposit intangible totals $375,000 for each of the next five years and $1.9 million thereafter.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2018
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 nine months ended September 30, 2018 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2017 257,050 $ 6.31 4.41 $ 1,175 Exercised (18,975 ) $ 6.03 3.80 $ 89 Outstanding at September 30, 2018 238,075 $ 6.33 3.69 $ 1,058 Exercisable at September 30, 2018 238,075 $ 6.33 3.69 $ 1,058 Cash received for options exercised during the nine months ended September 30, 2018 was $114,000. 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 and additional performance metric as determined upon issuance. Stock grants made through the 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 long-term incentive performance metric before vesting is realized after a three-year period. 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. As a result of the Tax Cuts and Jobs Act of 2017, the return on equity performance metrics were adjusted to incorporate the impact and benefits of the corporate tax rate reductions thereunder. The original and adjusted threshold and target metrics under the LTI Plan for 2016 are as follows: Return on Equity Metrics Threshold Target Original metrics 5.85 % 6.32 % Adjusted metrics 6.38 % 6.79 % Participants will be able to earn between 50% (for threshold performance) and 100% (for target performance) of 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 long-term incentive 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. As a result of the Tax Cuts and Jobs Act of 2017, the return on equity performance metrics were adjusted to incorporate the impact and benefits of the corporate tax rate reductions thereunder. The original and adjusted threshold, target and maximum metrics under the LTI Plan for 2017 are as follows: Return on Equity Metrics Performance Period Ending Original Threshold Adjusted Threshold Original Target Adjusted Target Original Maximum Adjusted Maximum December 31, 2018 6.30 % 6.87 % 7.00 % 7.63 % 7.60 % 8.28 % December 31, 2019 6.50 % 7.09 % 7.20 % 7.85 % 7.90 % 8.61 % Participants will be able to earn between 50% (for threshold performance), 100% (for target performance) and 150% (for 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. In January 2018, 83,812 shares were granted under the LTI Plan. Of this total, 50,852 shares are retention-based, with 17,908 vesting in one year and 32,944 vesting ratably over a three-year period. The remaining 32,960 shares granted are performance based and are subject to the achievement of the 2018 long-term incentive performance metric before vesting is realized after a three year period. For the performance shares, the primary performance metric for 2018 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 stretch metrics under the LTI Plan for 2018 are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2018 6.30 % 6.80 % 7.20 % December 31, 2019 6.85 % 7.35 % 7.75 % December 31, 2020 7.40 % 7.90 % 8.30 % Participants will be able to earn between 50% (for threshold performance), 100% (for target performance) and 150% (for 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 metrics established, with any necessary adjustments being recognized through share-based compensation expense and unearned compensation. At September 30, 2018, an additional 231,846 shares were available for future grants under the LTI Plan. Our stock award plan activity for the nine months ended September 30, 2018 and 2017 is summarized below: Unvested Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 138,833 $ 8.98 Shares granted 83,812 11.05 Shares vested (32,476 ) 9.13 Outstanding at September 30, 2018 190,169 $ 9.87 Outstanding at December 31, 2016 91,371 $ 7.51 Shares granted 89,042 10.15 Shares vested (21,552 ) 7.44 Outstanding at September 30, 2017 158,861 $ 9.00 We recorded compensation cost related to the stock awards of $707,000 and $490,000 for the nine months ended September 30, 2018 and 2017, respectively.

SHORT-TERM BORROWINGS AND LONG-

SHORT-TERM BORROWINGS AND LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2018
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 Federal Home Loan Bank of Boston (“FHLBB”) advances with an original maturity of less than one year and a line of credit with the FHLBB. Short-term borrowings issued by the FHLBB were $55.0 million at September 30, 2018 and $133.0 million at December 31, 2017. We have an “Ideal Way” line of credit with the FHLBB for $9.5 million at September 30, 2018 and December 31, 2017. 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 at September 30, 2018 and December 31, 2017. There were no customer repurchase agreements at September 30, 2018 while there were $11.7 million at December 31, 2017. The customer repurchase agreements outstanding at December 31, 2017 were collateralized by government-sponsored enterprise obligations with fair value of $6.7 million and mortgage backed securities with a fair value of $58.4 million, respectively. 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 Atlantic Community Bankers Bank (“ACBB”) 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 September 30, 2018 or December 31, 2017. As part of our contract with ACBB, we are required to maintain a reserve balance of $300,000 with ACBB 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 September 30, 2018, we had $224.3 million in long-term debt with the FHLBB. This compares to $164.8 million in long-term debt with the FHLBB at December 31, 2017. All FHLBB advances are collateralized by a blanket lien on our residential real estate loans and eligible commercial real estate loans.

PENSION BENEFITS

PENSION BENEFITS	9 Months Ended
	Sep. 30, 2018
Defined Benefit Plan [Abstract]
PENSION BENEFITS	9. PENSION BENEFITS We provide a defined benefit pension plan for eligible employees (the “Plan”). Employees must work a minimum of 1,000 hours per year to be eligible for the Plan. Eligible employees become vested in the Plan after five years of service. We plan to contribute to the 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 Plan’s actuaries. We have not yet determined how much we expect to contribute to our Plan in 2018. No contributions have been made to the Plan for the nine months ended September 30, 2018. The Plan assets are invested in various pooled separate investment accounts offered by Principal Life Insurance Company, a division of Principal Financial Group, who is the custodian of the Plan (the “Custodian”). The Plan is administered by an officer of Westfield Bank (the “Plan Administrator”). 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 dateThe following table provides information regarding net pension benefit costs for the periods shown: Three Months Ended September 30, Nine Months Ended, September 30, 2018 2017 2018 2017 (In thousands) Service cost $ 304 $ 245 $ 910 $ 778 Interest cost 253 254 759 761 Expected return on assets (347 ) (298 ) (1,041 ) (895 ) Actuarial loss 56 51 170 153 Net periodic pension cost $ 266 $ 252 $ 798 $ 797

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	9 Months Ended
	Sep. 30, 2018
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 September 30, 2018 and December 31, 2017. September 30, 2018 Asset Derivatives Liability Derivatives Balance Sheet Fair Value Balance Sheet Fair Value (In thousands) Interest rate swaps Other Assets $ 4 Other Liabilities $ 715 December 31, 2017 Asset Derivatives Liability Derivatives Balance Sheet Fair Value Balance Sheet Fair Value (In thousands) Interest rate swaps Other Assets $ — Other Liabilities $ 2,152 At September 30, 2018 and December 31, 2017, all derivatives were designated as hedging instruments. Cash Flow Hedges of Interest Rate Risk Our objectives in using interest rate derivatives are to add stability to interest income and expense and to manage our exposure to interest rate movements. To accomplish this objective, we entered into interest rate swaps 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 September 30, 2018 and December 31, 2017: September 30, 2018 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 $ 55,000 2.5 2.34 % 2.93 % $ (711 ) December 31, 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 $ 55,000 3.3 1.64 % 2.93 % $ (2,152 ) For derivatives that are designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are received on the Company’s variable-rate borrowings. During the next twelve months, the Company estimates that an additional $1.3 million will be reclassified as an increase to interest expense. 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 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) Interest rate swaps $ 168 $ (14 ) $ 1,086 $ (307 ) 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. Fees on previously terminated swaps are being amortized as a reclassification of other comprehensive income into interest expense over the terms of the previously hedged borrowings. The amount reclassified from accumulated other comprehensive income into net income for interest rate swaps and termination fees was $351,000 and $497,000 during the three months ended September 30, 2018 and 2017, respectively and $1.2 million and $1.6 million during the nine months ended September 30, 2018 and 2017, respectively. 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 for us. 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 our exposure to each counterparty. We have agreements with our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as “well capitalized”, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements. Certain of our agreements with our derivative counterparties contain provisions where if a formal administrative action by a federal or state regulatory agency occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. At September 30, 2018 and December 31, 2017, we had a net liability position of $708,000 and $2.2 million with our counterparties, respectively. As of September 30, 2018, we had minimum collateral posting thresholds with certain of our derivative counterparties and had mortgage-backed securities with a fair value of $1.0 million posted as collateral against our obligations under these agreements. If we had breached any of these provisions at September 30, 2018, 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	9 Months Ended
	Sep. 30, 2018
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. Securities and mortgage-backed securities Interest rate swaps – Assets and liabilities measured at fair value on a recurring basis are summarized below: September 30, 2018 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale Government-sponsored mortgage-backed securities $ — $ 158,931 $ — $ 158,931 U.S. government guaranteed mortgage-backed securities — 19,447 — 19,447 Corporate bonds — 48,382 — 48,382 State and municipal bonds — 2,912 — 2,912 Government-sponsored enterprise obligations — 23,312 — 23,312 Marketable equity securities 6,319 — — 6,319 Interest rate swaps — 4 — 4 Total assets $ 6,319 $ 252,988 $ — $ 259,307 Liabilities: Interest rate swaps $ — $ 715 $ — $ 715 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: (In thousands) Government-sponsored mortgage-backed securities $ — $ 182,001 $ — $ 182,001 U.S. government guaranteed mortgage-backed securities — 16,254 — 16,254 Corporate bonds — 56,144 — 56,144 State and municipal bonds — 3,239 — 3,239 Government-sponsored enterprise obligations — 24,381 — 24,381 Mutual funds 6,397 — — 6,397 Total assets $ 6,397 $ 282,019 $ — $ 288,416 Liabilities: Interest rate swaps $ — $ 2,152 $ — $ 2,152 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. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets at September 30, 2018. Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at September 30, 2018. There were no assets measured at fair value on a non-recurring basis at September 30, 2017. At Three Months Ended Nine Months Ended Total Total Level 1 Level 2 Level 3 Gains (Losses) Gains (Losses) (In thousands) Impaired Loans $ — $ — $ 970 $ (393 ) $ (473 ) Total Assets $ — $ — $ 970 $ (393 ) $ (473 ) 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 nine months ended September 30, 2018 and 2017. 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: September 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 61,999 $ 61,999 $ — $ — $ 61,999 Securities available-for-sale 252,984 — 252,984 — 252,984 Marketable equity securities 6,319 6,319 — — 6,319 Federal Home Loan Bank of Boston and other restricted stock 15,480 — — 15,480 15,480 Loans - net 1,680,333 — — 1,616,600 1,616,600 Accrued interest receivable 5,831 — — 5,831 5,831 Mortgage servicing rights 302 — 469 — 469 Derivative assets 4 — 4 — 4 Liabilities: Deposits 1,609,019 — — 1,603,546 1,603,546 Short-term borrowings 55,000 — 55,002 — 55,002 Long-term debt 224,306 — 222,296 — 222,296 Accrued interest payable 617 — — 617 617 Derivative liabilities 715 — 715 — 715 December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 27,132 $ 27,132 $ — $ — $ 27,132 Securities available-for-sale 288,416 6,397 282,019 — 288,416 Federal Home Loan Bank of Boston and other restricted stock 15,553 — — 15,553 15,553 Loans - net 1,619,850 — — 1,581,929 1,581,929 Accrued interest receivable 5,946 — — 5,946 5,946 Mortgage servicing rights 352 — 528 — 528 Liabilities: Deposits 1,506,082 — — 1,503,311 1,503,311 Short-term borrowings 144,650 — 144,650 — 144,650 Long-term debt 164,786 — 164,016 — 164,016 Accrued interest payable 441 — — 441 441 Derivative liabilities 2,152 — 2,152 — 2,152

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2018
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	12. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses In March 2017, the FASB issued ASU 2017-08— Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU removes and modifies the previously required disclosures relating to fair value measurements. Specifically, the ASU removes the required disclosure of amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, the valuation process for Level 3 fair value measurements and the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of a reporting period. It also modifies the required rollforward of Level 3 fair value measurements to a disclosure of any transfers into and out of Level 3, increases disclosure for investments in entities that calculate net asset value, and clarifies the measurement of uncertainty disclosure. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application of the amendments in this ASU is permitted for all entities. Management is currently evaluating the impact to the consolidated financial statements of adopting this ASU but does not expect adoption to have a material impact on our consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations The Bank’s deposits are insured to the limits specified by the Federal Deposit Insurance Corporation (“FDIC”). The Bank operates 22 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	Wholly-Owned Subsidiaries and Acquisition On October 21, 2016, we acquired Chicopee Bancorp, Inc. (“Chicopee”), the holding company for Chicopee Savings Bank. The acquisition added eight full-service banking offices located in western Massachusetts. The primary purpose of the acquisition with Chicopee was to expand our presence in western Massachusetts and diversify our market area. The transaction qualified as a tax-free reorganization for federal income tax purposes. Merger consideration paid in the transaction to shareholders of Chicopee totaled $98.8 million, consisting of 11,919,412 shares of Company common stock, net of shares of Chicopee already owned, and shares of Chicopee’s ESOP liquidated to pay off the ESOP loan. We accounted for the transaction using the acquisition method. The acquisition method requires an acquirer to recognize the assets acquired and the liabilities assumed at fair value as of the acquisition date. Additionally, our results of operations include Chicopee’s operating results from the date of acquisition.
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, 2017, included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”).
Reclassifications	Reclassifications

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share, Basic [Abstract]
Schedule of earnings per common share	Earnings per common share for the three and nine months ended September 30, 2018 and 2017 have been computed based on the following: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (In thousands, except per share data) Net income applicable to common stock $ 3,909 $ 3,815 $ 12,567 $ 12,674 Average number of common shares issued 29,627 31,001 29,958 30,799 Less: Average unallocated ESOP Shares (745 ) (838 ) (768 ) (861 ) Less: Average unvested equity incentive plan shares (93 ) (60 ) (90 ) (42 ) Average number of common shares outstanding used to calculate basic earnings per common share 28,789 30,103 29,100 29,896 Effect of dilutive equity incentive plan 49 26 42 12 Effect of dilutive stock options 99 90 100 166 Average number of common shares outstanding used to calculate diluted earnings per common share 28,937 30,219 29,242 30,074 Basic earnings per share $ 0.14 $ 0.13 $ 0.43 $ 0.42 Diluted earnings per share $ 0.14 $ 0.13 $ 0.43 $ 0.42

COMPREHENSIVE INCOME_LOSS (Tabl

COMPREHENSIVE INCOME/LOSS (Tables)	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Note [Abstract]
Schedule of accumulated other comprehensive loss included sharesholders equity	The components of accumulated other comprehensive loss included in shareholders’ equity are as follows: September 30, 2018 December 31, 2017 (In thousands) Net unrealized losses on securities available-for-sale $ (13,167 ) $ (5,358 ) Tax effect 3,286 1,316 Net-of-tax amount (9,881 ) (4,042 ) Fair value of derivatives used for cash flow hedges (712 ) (2,152 ) Termination fees on cancelled cash flow hedges (2,864 ) (3,664 ) Total derivatives (3,576 ) (5,816 ) Tax effect 1,006 1,635 Net-of-tax amount (2,570 ) (4,181 ) Unrecognized actuarial loss on defined benefit plan (5,851 ) (6,021 ) Tax effect 1,644 1,692 Net-of-tax amount (4,207 ) (4,329 ) Accumulated other comprehensive loss $ (16,658 ) $ (12,552 )
Schedule of changes in accumulated other loss by component	The following table presents changes in accumulated other comprehensive loss for the periods ended September 30, 2018 and 2017 by component: Securities Derivatives Defined Benefit Plan Accumulated Other Comprehensive Loss (In thousands) Balance at December 31, 2016 $ (3,839 ) $ (5,204 ) $ (3,618 ) $ (12,661 ) Current-period other comprehensive income 1,454 1,275 465 3,194 Balance at September 30, 2017 $ (2,385 ) $ (3,929 ) $ (3,153 ) $ (9,467 ) Balance at December 31, 2017 $ (4,042 ) $ (4,181 ) $ (4,329 ) $ (12,552 ) Cumulative-effect adjustment due to change in accounting principle (ASU 2016-01) 237 — — 237 Current-period other comprehensive (loss) income (6,076 ) 1,611 122 (4,343 ) Balance at September 30, 2018 $ (9,881 ) $ (2,570 ) $ (4,207 ) $ (16,658 )

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of securities available for sale	Securities available-for-sale are summarized as follows: September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Government-sponsored mortgage-backed securities $ 167,601 $ 2 $ (8,672 ) $ 158,931 U.S. government guaranteed mortgage-backed securities 20,507 — (1,060 ) 19,447 Corporate bonds 49,915 — (1,533 ) 48,382 State and municipal bonds 2,978 22 (88 ) 2,912 Government-sponsored enterprise obligations 25,150 — (1,838 ) 23,312 Total available-for-sale $ 266,151 $ 24 $ (13,191 ) $ 252,984 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Government-sponsored mortgage-backed securities $ 185,769 $ 10 $ (3,778 ) $ 182,001 U.S. government guaranteed mortgage-backed securities 16,821 — (567 ) 16,254 Corporate bonds 56,084 352 (292 ) 56,144 State and municipal bonds 3,222 36 (19 ) 3,239 Government-sponsored enterprise obligations 25,151 — (770 ) 24,381 Mutual funds 6,727 — (330 ) 6,397 Total available-for-sale securities $ 293,774 $ 398 $ (5,756 ) $ 288,416
Schedule of amortized cost and fair value of securities available for sale by maturity	The amortized cost and fair value of available-for-sale debt securities at September 30, 2018, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations. Also, because mortgage-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary. September 30, 2018 Amortized Cost Fair Value (In thousands) Available-for-sale securities: Debt securities: Due in one year or less $ 240 $ 241 Due after one year through five years 40,798 39,714 Due after five years through ten years 30,257 28,502 Due after ten years 6,748 6,149 Total securities 78,043 74,606 Mortgage-backed securities 188,108 178,378 Total $ 266,151 $ 252,984
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 nine months ended September 30, 2018 and 2017 are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (In thousands) Gross gains realized $ — $ 71 $ — $ 117 Gross losses realized — (1 ) (250 ) (65 ) Net gain realized $ — $ 70 $ (250 ) $ 52
Schedule of securities with gross unrealized losses in continuous loss position	Information pertaining to securities with gross unrealized losses at September 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: September 30, 2018 Less Than Twelve Months Over Twelve Months Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Government-sponsored mortgage-backed securities 8 $ 18,257 $ 600 3.2 % 70 $ 140,592 $ 8,072 5.4 % U.S. government guaranteed mortgage-backed securities 3 4,716 81 1.7 7 14,731 979 6.2 Government-sponsored enterprise obligations 0 — — — 9 23,312 1,838 7.3 Corporate bonds 9 33,244 788 2.3 6 15,138 745 4.7 State and municipal bonds 0 — — — 3 1,510 88 5.5 $ 56,217 $ 1,469 $ 195,283 $ 11,722 December 31, 2017 Less Than Twelve Months Over Twelve Months Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) Number of Securities Fair Value Gross Unrealized Loss Depreciation from Amortized Cost Basis (%) (Dollars in thousands) Government-sponsored mortgage-backed securities 21 $ 68,538 $ 613 0.9 % 53 $ 111,595 $ 3,165 2.8 % U.S. government guaranteed mortgage-backed securities 1 1,205 23 1.8 6 15,049 544 3.5 Government-sponsored enterprise obligations 0 — — — 9 24,381 770 3.1 Corporate bonds 9 26,016 292 1.1 0 — — — State and municipal bonds 0 — — — 3 1,581 19 1.2 Mutual funds 0 — — — 3 6,397 330 4.9 $ 95,759 $ 928 $ 159,003 $ 4,828

LOANS AND ALLOWANCE FOR LOAN _2

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Schedule of loans	Loans consisted of the following amounts: September 30, December 31, 2018 2017 (In thousands) Commercial real estate $ 764,749 $ 732,616 Residential real estate: Residential 574,637 557,752 Home equity 95,645 92,599 Commercial and industrial 247,869 238,502 Consumer 5,105 4,478 Total Loans 1,688,005 1,625,947 Unearned premiums and deferred loan fees and costs, net 4,563 4,734 Allowance for loan losses (12,235 ) (10,831 ) $ 1,680,333 $ 1,619,850
Schedule of mortgage servicing rights	A summary of the activity in the balances of mortgage servicing rights follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (In thousands) Balance at the beginning of period: $ 319 $ 352 Capitalized mortgage servicing rights — — Amortization (17 ) (50 ) Balance at the end of period $ 302 $ 302 Fair value at the end of period $ 469 $ 469
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 September 30, 2018 and 2017 is as follows: Commercial Residential Real Estate Commercial Consumer Unallocated Total (In thousands) Three Months Ended Balance at June 30, 2017 $ 4,472 $ 3,126 $ 2,754 $ 53 $ 13 $ 10,418 Provision (credit) (68 ) 146 (109 ) 83 148 200 Charge-offs — (107 ) — (104 ) — (211 ) Recoveries — 80 3 28 — 111 Balance at September 30, 2017 $ 4,404 $ 3,245 $ 2,648 $ 60 $ 161 $ 10,518 Balance at June 30, 2018 $ 5,458 $ 3,529 $ 2,922 $ 92 $ (15 ) $ 11,986 Provision (credit) (389 ) 481 211 45 2 350 Charge-offs — (393 ) (30 ) (40 ) — (463 ) Recoveries 334 9 8 11 — 362 Balance at September 30, 2018 $ 5,403 $ 3,626 $ 3,111 $ 108 $ (13 ) $ 12,235 Nine Months Ended Balance at December 31, 2016 $ 4,083 $ 2,862 $ 3,085 $ 38 $ — $ 10,068 Provision (credit) 239 427 (180 ) 203 161 850 Charge-offs (36 ) (148 ) (285 ) (237 ) — (706 ) Recoveries 118 104 28 56 — 306 Balance at September 30, 2017 $ 4,404 $ 3,245 $ 2,648 $ 60 $ 161 $ 10,518 Balance at December 31, 2017 $ 4,712 $ 3,311 $ 2,733 $ 71 $ 4 $ 10,831 Provision (credit) 322 762 415 118 (17 ) 1,600 Charge-offs — (473 ) (55 ) (125 ) — (653 ) Recoveries 369 26 18 44 — 457 Balance at September 30, 2018 $ 5,403 $ 3,626 $ 3,111 $ 108 $ (13 ) $ 12,235
Schedule of information pertaining to the allowance for loan losses by segment	Further information pertaining to the allowance for loan losses by segment at September 30, 2018 and December 31, 2017 follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) September 30, 2018 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 5,403 3,626 3,111 108 (13 ) 12,235 Total allowance for loan losses $ 5,403 $ 3,626 $ 3,111 $ 108 $ (13 ) $ 12,235 Impaired loans $ 2,907 $ 4,525 $ 3,547 $ 61 $ — $ 11,040 Non-impaired loans 750,636 662,534 243,380 5,044 — 1,661,594 Loans acquired with deteriorated credit quality 11,206 3,223 942 — — 15,371 Total loans $ 764,749 $ 670,282 $ 247,869 $ 5,105 $ — $ 1,688,005 December 31, 2017 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 4,712 3,311 2,733 71 4 10,831 Total allowance for loan losses 4,712 $ 3,311 $ 2,733 $ 71 $ 4 $ 10,831 Impaired loans $ 3,674 $ 3,964 $ 2,766 $ 120 $ — $ 10,524 Non-impaired loans 716,571 642,787 234,582 4,358 — 1,598,298 Loans acquired with deteriorated credit quality 12,371 3,600 1,154 — — 17,125 Total loans $ 732,616 $ 650,351 $ 238,502 $ 4,478 $ — $ 1,625,947
Schedule of past due and nonaccrual loans by class	The following is a summary of past due and non-accrual loans by class at September 30, 2018 and December 31, 2017: 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Past Due 90 Days or More and Still Accruing Non-Accrual Loans (In thousands) September 30, 2018 Commercial real estate $ 751 $ 2,805 $ 471 $ 4,027 $ — $ 2,405 Residential real estate: Residential 2,606 582 1,510 4,698 — 5,891 Home equity 321 96 60 477 — 692 Commercial and industrial 681 253 748 1,682 — 3,734 Consumer 58 — 18 76 — 60 Total $ 4,417 $ 3,736 $ 2,807 $ 10,960 $ — $ 12,782 December 31, 2017 Commercial real estate $ 1,951 $ 144 $ 290 $ 2,385 $ — $ 2,959 Residential real estate: Residential 2,992 1,480 1,911 6,383 — 5,961 Home equity 635 — 48 683 — 696 Commercial and industrial 1,731 797 162 2,690 — 3,019 Consumer 65 — 41 106 — 120 Total $ 7,374 $ 2,421 $ 2,452 $ 12,247 $ — $ 12,755
Schedule of impaired loans by class	The following is a summary of impaired loans by class at September 30, 2018 and December 31, 2017: Three Months Ended Nine Months Ended (1) At September 30, 2018 (1) September 30, 2018 September 30, 2018 Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired Loans (1) Commercial real estate $ 14,113 $ 16,967 $ 14,240 $ 186 $ 14,736 $ 558 Residential real estate 7,008 8,019 7,302 14 6,949 33 Home equity 740 782 613 1 652 3 Commercial and industrial 4,489 9,023 4,413 34 4,201 106 Consumer 61 70 78 — 93 — Total impaired loans $ 26,411 $ 34,861 $ 26,646 $ 235 $ 26,631 $ 700 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. Three Months Ended Nine Months Ended At December 31, 2017 September 30, 2017 September 30, 2017 Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired Loans (1) Commercial real estate $ 16,045 $ 18,773 $ 17,731 $ 199 $ 18,788 $ 650 Residential real estate 6,816 7,298 7,016 11 6,548 34 Home equity 748 783 407 1 260 3 Commercial and industrial 3,920 9,215 4,442 54 4,538 183 Consumer 120 129 122 — 83 — Total impaired loans $ 27,649 $ 36,198 $ 29,718 $ 265 $ 30,217 $ 870 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings.
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 September 30, 2018 and 2017. Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2017 $ 29,362 $ 23,158 $ 6,204 $ 6,033 $ 17,125 Collections (3,370 ) (2,258 ) (1,112 ) (504 ) (1,754 ) Dispositions — — — — — Balance at September 30, 2018 $ 25,992 $ 20,900 $ 5,092 $ 5,529 $ 15,371 Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2016 $ 37,437 $ 29,040 $ 8,397 $ 7,521 $ 21,519 Collections (3,860 ) (3,326 ) (534 ) (1,003 ) (2,323 ) Dispositions (1,833 ) (1,503 ) (330 ) 6 (1,509 ) Balance at September 30, 2017 $ 31,744 $ 24,211 $ 7,533 $ 6,524 $ 17,687
Schedule of loans by risk rating	The following table presents our loans by risk rating at September 30, 2018 and December 31, 2017: Commercial Residential Home Commercial Consumer Total (In thousands) September 30, 2018 Loans rated 1 – 4 $ 731,634 $ 567,957 $ 94,720 $ 212,202 $ 5,045 $ 1,611,558 Loans rated 5 14,506 — — 11,373 — 25,879 Loans rated 6 18,609 6,680 925 24,294 60 50,568 $ 764,749 $ 574,637 $ 95,645 $ 247,869 $ 5,105 $ 1,688,005 December 31, 2017 Loans rated 1 – 4 $ 708,992 $ 551,469 $ 91,903 $ 205,537 $ 4,475 $ 1,562,376 Loans rated 5 15,098 — — 24,565 — 39,663 Loans rated 6 8,526 6,283 696 8,400 3 23,908 $ 732,616 $ 557,752 $ 92,599 $ 238,502 $ 4,478 $ 1,625,947

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	A summary of stock option activity for the nine months ended September 30, 2018 is presented below: Shares Weighted Weighted Aggregate Outstanding at December 31, 2017 257,050 $ 6.31 4.41 $ 1,175 Exercised (18,975 ) $ 6.03 3.80 $ 89 Outstanding at September 30, 2018 238,075 $ 6.33 3.69 $ 1,058 Exercisable at September 30, 2018 238,075 $ 6.33 3.69 $ 1,058
Schedule of original and adjusted threshold and target metrics	The original and adjusted threshold and target metrics under the LTI Plan for 2016 are as follows: Return on Equity Metrics Threshold Target Original metrics 5.85 % 6.32 % Adjusted metrics 6.38 % 6.79 % The original and adjusted threshold, target and maximum metrics under the LTI Plan for 2017 are as follows: Return on Equity Metrics Performance Period Ending Original Threshold Adjusted Threshold Original Target Adjusted Target Original Maximum Adjusted Maximum December 31, 2018 6.30 % 6.87 % 7.00 % 7.63 % 7.60 % 8.28 % December 31, 2019 6.50 % 7.09 % 7.20 % 7.85 % 7.90 % 8.61 % The threshold, target and stretch metrics under the LTI Plan for 2018 are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2018 6.30 % 6.80 % 7.20 % December 31, 2019 6.85 % 7.35 % 7.75 % December 31, 2020 7.40 % 7.90 % 8.30 %
Schedule of stock award plan activity	Our stock award plan activity for the nine months ended September 30, 2018 and 2017 is summarized below: Unvested Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 138,833 $ 8.98 Shares granted 83,812 11.05 Shares vested (32,476 ) 9.13 Outstanding at September 30, 2018 190,169 $ 9.87 Outstanding at December 31, 2016 91,371 $ 7.51 Shares granted 89,042 10.15 Shares vested (21,552 ) 7.44 Outstanding at September 30, 2017 158,861 $ 9.00

PENSION BENEFITS (Tables)

PENSION BENEFITS (Tables)	9 Months Ended
	Sep. 30, 2018
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 September 30, Nine Months Ended, September 30, 2018 2017 2018 2017 (In thousands) Service cost $ 304 $ 245 $ 910 $ 778 Interest cost 253 254 759 761 Expected return on assets (347 ) (298 ) (1,041 ) (895 ) Actuarial loss 56 51 170 153 Net periodic pension cost $ 266 $ 252 $ 798 $ 797

DERIVATIVES AND HEDGING ACTIV_2

DERIVATIVES AND HEDGING ACTIVITIES (Tables)	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of fair values of derivative financial instruments	The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of September 30, 2018 and December 31, 2017. September 30, 2018 Asset Derivatives Liability Derivatives Balance Sheet Fair Value Balance Sheet Fair Value (In thousands) Interest rate swaps Other Assets $ 4 Other Liabilities $ 715 December 31, 2017 Asset Derivatives Liability Derivatives Balance Sheet Fair Value Balance Sheet Fair Value (In thousands) Interest rate swaps Other Assets $ — Other Liabilities $ 2,152
Schedule of information about cash flow hedges	The following table presents information about our cash flow hedges at September 30, 2018 and December 31, 2017: September 30, 2018 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 $ 55,000 2.5 2.34 % 2.93 % $ (711 ) December 31, 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 $ 55,000 3.3 1.64 % 2.93 % $ (2,152 )
Schedule of pre-tax net 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 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) Interest rate swaps $ 168 $ (14 ) $ 1,086 $ (307 )

FAIR VALUE OF ASSETS AND LIAB_2

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2018
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: September 30, 2018 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale Government-sponsored mortgage-backed securities $ — $ 158,931 $ — $ 158,931 U.S. government guaranteed mortgage-backed securities — 19,447 — 19,447 Corporate bonds — 48,382 — 48,382 State and municipal bonds — 2,912 — 2,912 Government-sponsored enterprise obligations — 23,312 — 23,312 Marketable equity securities 6,319 — — 6,319 Interest rate swaps — 4 — 4 Total assets $ 6,319 $ 252,988 $ — $ 259,307 Liabilities: Interest rate swaps $ — $ 715 $ — $ 715 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: (In thousands) Government-sponsored mortgage-backed securities $ — $ 182,001 $ — $ 182,001 U.S. government guaranteed mortgage-backed securities — 16,254 — 16,254 Corporate bonds — 56,144 — 56,144 State and municipal bonds — 3,239 — 3,239 Government-sponsored enterprise obligations — 24,381 — 24,381 Mutual funds 6,397 — — 6,397 Total assets $ 6,397 $ 282,019 $ — $ 288,416 Liabilities: Interest rate swaps $ — $ 2,152 $ — $ 2,152
Schedule of assets measured at fair value on non-recurring basis	The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets at September 30, 2018. Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at September 30, 2018. There were no assets measured at fair value on a non-recurring basis at September 30, 2017. At Three Months Ended Nine Months Ended Total Total Level 1 Level 2 Level 3 Gains (Losses) Gains (Losses) (In thousands) Impaired Loans $ — $ — $ 970 $ (393 ) $ (473 ) Total Assets $ — $ — $ 970 $ (393 ) $ (473 )
Schedule of estimated fair values of financial instruments	The estimated fair values of our financial instruments are as follows: September 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 61,999 $ 61,999 $ — $ — $ 61,999 Securities available-for-sale 252,984 — 252,984 — 252,984 Marketable equity securities 6,319 6,319 — — 6,319 Federal Home Loan Bank of Boston and other restricted stock 15,480 — — 15,480 15,480 Loans - net 1,680,333 — — 1,616,600 1,616,600 Accrued interest receivable 5,831 — — 5,831 5,831 Mortgage servicing rights 302 — 469 — 469 Derivative assets 4 — 4 — 4 Liabilities: Deposits 1,609,019 — — 1,603,546 1,603,546 Short-term borrowings 55,000 — 55,002 — 55,002 Long-term debt 224,306 — 222,296 — 222,296 Accrued interest payable 617 — — 617 617 Derivative liabilities 715 — 715 — 715 December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 27,132 $ 27,132 $ — $ — $ 27,132 Securities available-for-sale 288,416 6,397 282,019 — 288,416 Federal Home Loan Bank of Boston and other restricted stock 15,553 — — 15,553 15,553 Loans - net 1,619,850 — — 1,581,929 1,581,929 Accrued interest receivable 5,946 — — 5,946 5,946 Mortgage servicing rights 352 — 528 — 528 Liabilities: Deposits 1,506,082 — — 1,503,311 1,503,311 Short-term borrowings 144,650 — 144,650 — 144,650 Long-term debt 164,786 — 164,016 — 164,016 Accrued interest payable 441 — — 441 441 Derivative liabilities 2,152 — 2,152 — 2,152

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	Oct. 21, 2016USD ($)shares	Sep. 30, 2018Number
Chicopee Bancorp Inc [Member]
Merger consideration paid in transaction to shareholders of Chicopee | $	$ 98,800
Number of shares issued (in shares) | shares	11,919,412
Massachusetts and Granby and Enfield, Connecticut [Member]
Number of banking offices in which bank operates | Number		22

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings per common share
Net income applicable to common stock	$ 3,909	$ 3,815	$ 12,567	$ 12,674
Average number of common shares issued	29,627	31,001	29,958	30,799
Less: Average unallocated ESOP Shares	(745)	(838)	(768)	(861)
Less: Average unvested equity incentive plan shares	(93)	(60)	(90)	(42)
Average number of common shares outstanding used to calculate basic earnings per common share	28,789	30,103	29,100	29,896
Effect of dilutive equity incentive plan	49	26	42	12
Effect of dilutive stock options	99	90	100	166
Average number of common shares outstanding used to calculate diluted earnings per common share	28,937	30,219	29,242	30,074
Basic earnings per share (in dollars per share)	$ 0.14	$ 0.13	$ 0.43	$ 0.42
Diluted earnings per share (in dollars per share)	$ 0.14	$ 0.13	$ 0.43	$ 0.42

COMPREHENSIVE INCOME (LOSS) (De

COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), net of tax amount	$ (16,658)	$ (12,552)	$ (9,467)	$ (12,661)
Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) before tax	(13,167)	(5,358)
Tax effect	3,286	1,316
Accumulated other comprehensive income (loss), net of tax amount	(9,881)	(4,042)	(2,385)	(3,839)
Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Fair value of derivatives used for cash flow hegdes	(712)	(2,152)
Derivative Termination fee on cancelled cash flow hedges	(2,864)	(3,664)
Accumulated other comprehensive income (loss) before tax	(3,576)	(5,816)
Tax effect	1,006	1,635
Accumulated other comprehensive income (loss), net of tax amount	(2,570)	(4,181)	(3,929)	(5,204)
Defined Benefit Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss) before tax	(5,851)	(6,021)
Tax effect	1,644	1,692
Accumulated other comprehensive income (loss), net of tax amount	$ (4,207)	$ (4,329)	$ (3,153)	$ (3,618)

COMPREHENSIVE INCOME (LOSS) (_2

COMPREHENSIVE INCOME (LOSS) (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ (12,552)	$ (12,661)
Current-period other comprehensive (loss) income	$ (817)	$ 640	(4,343)	3,194
Ending balance	(16,658)	(9,467)	(16,658)	(9,467)
Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(4,042)	(3,839)
Cumulative-effect adjustment due to change in accounting principle (ASU 2016-01)			237
Current-period other comprehensive (loss) income			(6,076)	1,454
Ending balance	(9,881)	(2,385)	(9,881)	(2,385)
Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(4,181)	(5,204)
Current-period other comprehensive (loss) income			1,611	1,275
Ending balance	(2,570)	(3,929)	(2,570)	(3,929)
Defined Benefit Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(4,329)	(3,618)
Current-period other comprehensive (loss) income			122	465
Ending balance	$ (4,207)	$ (3,153)	$ (4,207)	$ (3,153)

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available-For-Sale Securities
Amortized Cost	$ 266,151	$ 293,774
Gross Unrealized Gains	24	398
Gross Unrealized Losses	(13,191)	(5,756)
Fair Value	252,984	288,416
Government-Sponsored Mortgage-Backed Securities [Member]
Available-For-Sale Securities
Amortized Cost	167,601	185,769
Gross Unrealized Gains	2	10
Gross Unrealized Losses	(8,672)	(3,778)
Fair Value	158,931	182,001
US Government Guaranteed Mortgage-Backed Securities [Member]
Available-For-Sale Securities
Amortized Cost	20,507	16,821
Gross Unrealized Losses	(1,060)	(567)
Fair Value	19,447	16,254
Corporate Bonds [Member]
Available-For-Sale Securities
Amortized Cost	49,915	56,084
Gross Unrealized Gains		352
Gross Unrealized Losses	(1,533)	(292)
Fair Value	48,382	56,144
States and Municipal Bonds [Member]
Available-For-Sale Securities
Amortized Cost	2,978	3,222
Gross Unrealized Gains	22	36
Gross Unrealized Losses	(88)	(19)
Fair Value	2,912	3,239
Government-Sponsored Enterprise Obligations [Member]
Available-For-Sale Securities
Amortized Cost	25,150	25,151
Gross Unrealized Losses	(1,838)	(770)
Fair Value	$ 23,312	24,381
Mutual Funds [Member]
Available-For-Sale Securities
Amortized Cost		6,727
Gross Unrealized Losses		(330)
Fair Value		$ 6,397

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Investments [Line Items]
Available for Sale Securities, Amortized Cost, Total	$ 266,151	$ 293,774
Available for Sale Securities, Fair Value, Total	252,984
Collateralized Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available for Sale Securities, Amortized Cost, Total	188,108
Available for Sale Securities, Fair Value, Total	178,378
Debt Securities [Member]
Schedule of Investments [Line Items]
Available for Sale Securities, Amortized Cost, Due in one year or less	240
Available for Sale Securities, Amortized Cost, Due after one year through five years	40,798
Available for Sale Securities, Amortized Cost, Due after five years through ten years	30,257
Available for Sale Securities, Amortized Cost, Due after ten years	6,748
Available for Sale Securities, Amortized Cost, Total	78,043
Available for Sale Securities, Fair Value, Due in one year or less	241
Available for Sale Securities, Fair Value, Due after one year through five years	39,714
Available for Sale Securities, Fair Value, Due after five years through ten years	28,502
Available for Sale Securities, Fair Value, Due after ten years	6,149
Available for Sale Securities, Fair Value, Total	$ 74,606

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Gross gains realized	$ 71		$ 117
Gross losses realized	(1)	$ (250)	(65)
Net gain realized	$ 70	$ (250)	$ 52

SECURITIES (Details 3)

SECURITIES (Details 3) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)Number	Dec. 31, 2017USD ($)Number
Available for sale, Less Than 12 Months Fair Value	$ 56,217	$ 95,759
Available for sale, Less Than 12 Months Gross Unrealized Losses	1,469	928
Available for sale, Over 12 Months Fair Value	195,283	159,003
Available for sale, Over 12 Months Gross Unrealized Losses	11,722	4,828
Government-Sponsored Mortgage-Backed Securities [Member]
Available for sale, Less Than 12 Months Fair Value	18,257	68,538
Available for sale, Less Than 12 Months Gross Unrealized Losses	600	613
Available for sale, Over 12 Months Fair Value	140,592	111,595
Available for sale, Over 12 Months Gross Unrealized Losses	$ 8,072	$ 3,165
Number of Securities - less than 12 months | Number	8	21
Depreciation from Amortized Cost Basis (%) - less than 12 months	3.20%	0.90%
Number of Securities - Over 12 Months | Number	70	53
Depreciation from Amortized Cost Basis (%) - Over 12 months	5.40%	2.80%
US Government Guaranteed Mortgage-Backed Securities [Member]
Available for sale, Less Than 12 Months Fair Value	$ 4,716	$ 1,205
Available for sale, Less Than 12 Months Gross Unrealized Losses	81	23
Available for sale, Over 12 Months Fair Value	14,731	15,049
Available for sale, Over 12 Months Gross Unrealized Losses	$ 979	$ 544
Number of Securities - less than 12 months | Number	3	1
Depreciation from Amortized Cost Basis (%) - less than 12 months	1.70%	1.80%
Number of Securities - Over 12 Months | Number	7	6
Depreciation from Amortized Cost Basis (%) - Over 12 months	6.20%	3.50%
Government-Sponsored Enterprise Obligations [Member]
Available for sale, Over 12 Months Fair Value	$ 23,312	$ 24,381
Available for sale, Over 12 Months Gross Unrealized Losses	$ 1,838	$ 770
Number of Securities - less than 12 months | Number	0	0
Number of Securities - Over 12 Months | Number	9	9
Depreciation from Amortized Cost Basis (%) - Over 12 months	7.30%	3.10%
Corporate Bonds [Member]
Available for sale, Less Than 12 Months Fair Value	$ 33,244	$ 26,016
Available for sale, Less Than 12 Months Gross Unrealized Losses	788	$ 292
Available for sale, Over 12 Months Fair Value	15,138
Available for sale, Over 12 Months Gross Unrealized Losses	$ 745
Number of Securities - less than 12 months | Number	9	9
Depreciation from Amortized Cost Basis (%) - less than 12 months	2.30%	1.10%
Number of Securities - Over 12 Months | Number	6	0
Depreciation from Amortized Cost Basis (%) - Over 12 months	4.70%
States and Municipal Bonds [Member]
Available for sale, Over 12 Months Fair Value	$ 1,510	$ 1,581
Available for sale, Over 12 Months Gross Unrealized Losses	$ 88	$ 19
Number of Securities - less than 12 months | Number	0	0
Number of Securities - Over 12 Months | Number	3	3
Depreciation from Amortized Cost Basis (%) - Over 12 months	5.50%	1.20%
Mutual Funds [Member]
Available for sale, Over 12 Months Fair Value		$ 6,397
Available for sale, Over 12 Months Gross Unrealized Losses		$ 330
Number of Securities - less than 12 months | Number		0
Number of Securities - Over 12 Months | Number		3
Depreciation from Amortized Cost Basis (%) - Over 12 months		4.90%

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Proceeds from redemptions and sales	$ 12,501	$ 22,453
Securities [Member]
Cumulative-effect adjustment due to change in accounting principle (ASU 2016-01)	237
Government-Sponsored Enterprise Obligations [Member]
Fair value of collateralized public deposits	6,400
Collateralized Mortgage Backed Securities [Member]
Fair value of collateralized public deposits	$ 70,800

LOANS AND ALLOWANCE FOR LOAN _3

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized total loans	$ 1,688,005		$ 1,625,947
Unearned premiums and deferred loan fees and costs, net	4,563		4,734
Allowance for loan losses	(12,235)	$ (11,986)	(10,831)	$ (10,518)	$ (10,418)	$ (10,068)
Loans, net	1,680,333		1,619,850
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized total loans	764,749		732,616
Allowance for loan losses	(5,403)	(5,458)	(4,712)	(4,404)	(4,472)	(4,083)
Residential Real Estate - Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized total loans	574,637		557,752
Residential Real Estate - Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized total loans	95,645		92,599
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized total loans	247,869		238,502
Allowance for loan losses	(3,111)	(2,922)	(2,733)	(2,648)	(2,754)	(3,085)
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized total loans	5,105		4,478
Allowance for loan losses	$ (108)	$ (92)	$ (71)	$ (60)	$ (53)	$ (38)

LOANS AND ALLOWANCE FOR LOAN _4

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Servicing Asset
Balance at the beginning of period:	$ 319	$ 352
Amortization	(17)	(50)
Balance at the end of year	302	302
Fair value at the end of year	$ 469	$ 469

LOANS AND ALLOWANCE FOR LOAN _5

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Beginning Balance	$ 11,986	$ 10,418	$ 10,831	$ 10,068
Provision (credit)	350	200	1,600	850
Charge-offs	(463)	(211)	(653)	(706)
Recoveries	362	111	457	306
Ending Balance	12,235	10,518	12,235	10,518
Commercial Real Estate [Member]
Beginning Balance	5,458	4,472	4,712	4,083
Provision (credit)	(389)	(68)	322	239
Charge-offs				(36)
Recoveries	334		369	118
Ending Balance	5,403	4,404	5,403	4,404
Residential Real Estate [Member]
Beginning Balance	3,529	3,126	3,311	2,862
Provision (credit)	481	146	762	427
Charge-offs	(393)	(107)	(473)	(148)
Recoveries	9	80	26	104
Ending Balance	3,626	3,245	3,626	3,245
Commercial and Industrial [Member]
Beginning Balance	2,922	2,754	2,733	3,085
Provision (credit)	211	(109)	415	(180)
Charge-offs	(30)		(55)	(285)
Recoveries	8	3	18	28
Ending Balance	3,111	2,648	3,111	2,648
Consumer [Member]
Beginning Balance	92	53	71	38
Provision (credit)	45	83	118	203
Charge-offs	(40)	(104)	(125)	(237)
Recoveries	11	28	44	56
Ending Balance	108	60	108	60
Unallocated [Member]
Beginning Balance	(15)	13	4
Provision (credit)	2	148	(17)	161
Ending Balance	$ (13)	$ 161	$ (13)	$ 161

LOANS AND ALLOWANCE FOR LOAN _6

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Amount of allowance for non-impaired loans	$ 12,235		$ 10,831
Total allowance for loan losses	12,235	$ 11,986	10,831	$ 10,518	$ 10,418	$ 10,068
Impaired loans	11,040		10,524
Non-impaired loans	1,661,594		1,598,298
Amount of loans acquired with deteriorated credit quality	15,371		17,125
Total loans	1,688,005		1,625,947
Commercial Real Estate [Member]
Amount of allowance for non-impaired loans	5,403		4,712
Total allowance for loan losses	5,403	5,458	4,712	4,404	4,472	4,083
Impaired loans	2,907		3,674
Non-impaired loans	750,636		716,571
Amount of loans acquired with deteriorated credit quality	11,206		12,371
Total loans	764,749		732,616
Residential Real Estate [Member]
Amount of allowance for non-impaired loans	3,626		3,311
Total allowance for loan losses	3,626	3,529	3,311	3,245	3,126	2,862
Impaired loans	4,525		3,964
Non-impaired loans	662,534		642,787
Amount of loans acquired with deteriorated credit quality	3,223		3,600
Total loans	670,282		650,351
Commercial and Industrial [Member]
Amount of allowance for non-impaired loans	3,111		2,733
Total allowance for loan losses	3,111	2,922	2,733	2,648	2,754	3,085
Impaired loans	3,547		2,766
Non-impaired loans	243,380		234,582
Amount of loans acquired with deteriorated credit quality	942		1,154
Total loans	247,869		238,502
Consumer [Member]
Amount of allowance for non-impaired loans	108		71
Total allowance for loan losses	108	92	71	60	53	$ 38
Impaired loans	61		120
Non-impaired loans	5,044		4,358
Total loans	5,105		4,478
Unallocated [Member]
Amount of allowance for non-impaired loans	(13)		4
Total allowance for loan losses	$ (13)	$ (15)	$ 4	$ 161	$ 13

LOANS AND ALLOWANCE FOR LOAN _7

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Total Past Due	$ 10,960	$ 12,247
Non-Accrual Loans	12,782	12,755
30-59 Days Past Due [Member]
Total Past Due	4,417	7,374
60 - 89 Days Past Due [Member]
Total Past Due	3,736	2,421
Greater than 90 Days Past Due [Member]
Total Past Due	2,807	2,452
Commercial Real Estate [Member]
Total Past Due	4,027	2,385
Non-Accrual Loans	2,405	2,959
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Total Past Due	751	1,951
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member]
Total Past Due	2,805	144
Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member]
Total Past Due	471	290
Residential Real Estate - Residential [Member]
Total Past Due	4,698	6,383
Non-Accrual Loans	5,891	5,961
Residential Real Estate - Residential [Member] | 30-59 Days Past Due [Member]
Total Past Due	2,606	2,992
Residential Real Estate - Residential [Member] | 60 - 89 Days Past Due [Member]
Total Past Due	582	1,480
Residential Real Estate - Residential [Member] | Greater than 90 Days Past Due [Member]
Total Past Due	1,510	1,911
Residential Real Estate - Home Equity [Member]
Total Past Due	477	683
Non-Accrual Loans	692	696
Residential Real Estate - Home Equity [Member] | 30-59 Days Past Due [Member]
Total Past Due	321	635
Residential Real Estate - Home Equity [Member] | 60 - 89 Days Past Due [Member]
Total Past Due	96
Residential Real Estate - Home Equity [Member] | Greater than 90 Days Past Due [Member]
Total Past Due	60	48
Commercial and Industrial [Member]
Total Past Due	1,682	2,690
Non-Accrual Loans	3,734	3,019
Commercial and Industrial [Member] | 30-59 Days Past Due [Member]
Total Past Due	681	1,731
Commercial and Industrial [Member] | 60 - 89 Days Past Due [Member]
Total Past Due	253	797
Commercial and Industrial [Member] | Greater than 90 Days Past Due [Member]
Total Past Due	748	162
Consumer [Member]
Total Past Due	76	106
Non-Accrual Loans	60	120
Consumer [Member] | 30-59 Days Past Due [Member]
Total Past Due	58	65
Consumer [Member] | Greater than 90 Days Past Due [Member]
Total Past Due	$ 18	$ 41

LOANS AND ALLOWANCE FOR LOAN _8

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Total Impaired loans:
Recorded Investment	[1]	$ 26,411		$ 26,411		$ 27,649
Unpaid Principal Balance	[1]	34,861		34,861		36,198
Average Recorded Investment	[1]	26,646	$ 29,718	26,631	$ 30,217
Interest Income Recognized	[1]	235	265	700	870
Commercial Real Estate [Member]
Total Impaired loans:
Recorded Investment	[1]	14,113		14,113		16,045
Unpaid Principal Balance	[1]	16,967		16,967		18,773
Average Recorded Investment	[1]	14,240	17,731	14,736	18,788
Interest Income Recognized	[1]	186	199	558	650
Residential Real Estate [Member]
Total Impaired loans:
Recorded Investment	[1]	7,008		7,008		6,816
Unpaid Principal Balance	[1]	8,019		8,019		7,298
Average Recorded Investment	[1]	7,302	7,016	6,949	6,548
Interest Income Recognized	[1]	14	11	33	34
Residential Real Estate - Home Equity [Member]
Total Impaired loans:
Recorded Investment	[1]	740		740		748
Unpaid Principal Balance	[1]	782		782		783
Average Recorded Investment	[1]	613	407	652	260
Interest Income Recognized	[1]	1	1	3	3
Commercial and Industrial [Member]
Total Impaired loans:
Recorded Investment	[1]	4,489		4,489		3,920
Unpaid Principal Balance	[1]	9,023		9,023		9,215
Average Recorded Investment	[1]	4,413	4,442	4,201	4,538
Interest Income Recognized	[1]	34	54	106	183
Consumer [Member]
Total Impaired loans:
Recorded Investment	[1]	61		61		120
Unpaid Principal Balance	[1]	70		70		$ 129
Average Recorded Investment	[1]	$ 78	$ 122	$ 93	$ 83
[1]	Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings.

LOANS AND ALLOWANCE FOR LOAN _9

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - Chicopee Bancorp Inc [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Loans receivable - Contractual Required Payments Receivable beginning	$ 29,362	$ 37,437
Collections - Contractually Required Payments Receivable	(3,370)	(3,860)
Dispositions - Contractually Required Payments Receivable		(1,833)
Loans receivable - Contractual Required Payments Receivable ending	25,992	31,744
Loans receivable - Cash Expected To Be Collected beginning	23,158	29,040
Collections - Cash Expected to be Collected	(2,258)	(3,326)
Dispositions - Cash Expected to be Collected		(1,503)
Loans receivable - Cash Expected To Be Collected ending	20,900	24,211
Loans receivable - Non-Accretable Discount beginning	6,204	8,397
Collections - Non-Accretable DIscount	(1,112)	(534)
Dispositions - Non-Accretable Discount		(330)
Loans receivable - Non-Accretable Discount ending	5,092	7,533
Loans receivable - Accretable Yield beginning	6,033	7,521
Collections - Accretable Yield	(504)	(1,003)
Dispositions - Accretable Yield		6
Loans receivable - Accretable Yield ending	5,529	6,524
Loans receivable - Outstanding beginning	17,125	21,519
Collections	(1,754)	(2,323)
Dispositions		(1,509)
Loans receivable - Outstanding ending	$ 15,371	$ 17,687

LOANS AND ALLOWANCE FOR LOAN_10

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 1,688,005	$ 1,625,947
Loans rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,611,558	1,562,376
Loans rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	25,879	39,663
Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	50,568	23,908
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	764,749	732,616
Commercial Real Estate [Member] | Loans rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	731,634	708,992
Commercial Real Estate [Member] | Loans rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	14,506	15,098
Commercial Real Estate [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	18,609	8,526
Residential Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	574,637	557,752
Residential Real Estate - Residential [Member] | Loans rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	567,957	551,469
Residential Real Estate - Residential [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	6,680	6,283
Residential Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	95,645	92,599
Residential Real Estate - Home Equity [Member] | Loans rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	94,720	91,903
Residential Real Estate - Home Equity [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	925	696
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	247,869	238,502
Commercial and Industrial [Member] | Loans rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	212,202	205,537
Commercial and Industrial [Member] | Loans rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	11,373	24,565
Commercial and Industrial [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	24,294	8,400
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,105	4,478
Consumer [Member] | Loans rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,045	4,475
Consumer [Member] | Loans rated 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 60	$ 3

LOANS AND ALLOWANCE FOR LOAN_11

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)$ / Loans	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Purchase of residential mortgages		$ 48,205
Serviced commercial loans for participants	35,700		$ 32,600
Mortgage loans serviced for others	58,100		65,800
Loans	1,688,005		1,625,947
Net service fee income	$ 68	$ 49
Weighted average internal rate of return	12.04%
Weighted average servicing fee	0.2501%
Net cost to service loans | $ / Loans	83.84
Commercial Real Estate - Construction Loans [Member]
Loans	$ 103,600		$ 84,400

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Amortization of core deposit intangible	$ 282	$ 282
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	$ 1,900

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Options, Outstanding
Outstanding at beginning of period | shares	257,050
Exercised | shares	(18,975)
Outstanding at end of period | shares	238,075
Exercisable at end of period | shares	238,075
Options, Outstanding, Weighted Average Exercise Price
Outstanding at beginning of period | $ / shares	$ 6.31
Exercised | $ / shares	6.03
Outstanding at end of period | $ / shares	6.33
Exercisable at end of period | $ / shares	$ 6.33
Options, Outstanding, Weighted Average Remaining Contractual Term (in years)
Outstanding at beginning of period	4 years 4 months 28 days
Exercised	3 years 9 months 18 days
Outstanding at end of period	3 years 8 months 8 days
Exercisable at end of period	3 years 8 months 8 days
Options, Outstanding, Aggregate Intrinsic Value
Outstanding at beginning of period | $	$ 1,175
Exercised | $	89
Outstanding at end of period | $	1,058
Exercisable at end of period | $	$ 1,058

SHARE-BASED COMPENSATION (Det_2

SHARE-BASED COMPENSATION (Details 1)	9 Months Ended
	Sep. 30, 2018
LTI Plan for 2016 [Member] | Original Threshold [Member]
Original metrics	5.85%
Adjusted metrics	6.38%
LTI Plan for 2016 [Member] | Original Target [Member]
Original metrics	6.32%
Adjusted metrics	6.79%
LTI Plan for 2017 [Member] | Original Maximum [Member]
December 31, 2018	7.60%
December 31, 2019	7.90%
LTI Plan for 2017 [Member] | Original Threshold [Member]
December 31, 2018	6.30%
December 31, 2019	6.50%
LTI Plan for 2017 [Member] | Original Target [Member]
December 31, 2018	7.00%
December 31, 2019	7.20%
LTI Plan for 2017 [Member] | Adjusted Threshold [Member]
December 31, 2018	6.87%
December 31, 2019	7.09%
LTI Plan for 2017 [Member] | Adjusted Target [Member]
December 31, 2018	7.63%
December 31, 2019	7.85%
LTI Plan for 2017 [Member] | Adjusted Maximum [Member]
December 31, 2018	8.28%
December 31, 2019	8.61%
LTI Plan for 2018 [Member] | Original Threshold [Member]
December 31, 2018	6.30%
December 31, 2019	6.85%
December 31, 2020	7.40%
LTI Plan for 2018 [Member] | Original Target [Member]
December 31, 2018	6.80%
December 31, 2019	7.35%
December 31, 2020	7.90%
LTI Plan for 2018 [Member] | Stretch [Member]
December 31, 2018	7.20%
December 31, 2019	7.75%
December 31, 2020	8.30%

SHARE-BASED COMPENSATION (Det_3

SHARE-BASED COMPENSATION (Details 2) - Restricted Stock [Member] - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Restricted Stock Awards
Beginning balance	138,833	91,371
Shares granted	83,812	89,042
Shares vested	(32,476)	(21,552)
Ending balance	190,169	158,861
Weighted Average Grant Date Fair Value
Beginning balance	$ 8.98	$ 7.51
Shares granted	11.05	10.15
Shares vested	9.13	7.44
Ending balance	$ 9.87	$ 9

SHARE-BASED COMPENSATION (Det_4

SHARE-BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands	1 Months Ended				9 Months Ended
	Jan. 31, 2018	May 31, 2017	May 31, 2016	Jan. 31, 2015	Sep. 30, 2018	Sep. 30, 2017	May 31, 2014
Stock Options
Cash received for options exercised					$ 114	$ 5,465
Restricted Stock Awards
Share-based compensation expense					$ 707	$ 490
LTI Plan [Member]
Restricted Stock Awards
Share based compensation, shares available for grant					231,846
LTI Plan for 2016 [Member]
Restricted Stock Awards
Shares granted			62,740
LTI Plan for 2017 [Member]
Restricted Stock Awards
Shares granted		89,042
LTI Plan for 2018 [Member]
Restricted Stock Awards
Shares granted	83,812
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
Percent of awards under plan					50.00%
Performance Shares [Member] | LTI Plan for 2016 [Member]
Restricted Stock Awards
Shares granted			26,197
Vesting term			3 years
Performance Shares [Member] | LTI Plan for 2016 [Member] | Original Threshold [Member]
Restricted Stock Awards
Percent of awards participants may earn			50.00%
Performance Shares [Member] | LTI Plan for 2016 [Member] | Original Target [Member]
Restricted Stock Awards
Percent of awards participants may earn			100.00%
Performance Shares [Member] | LTI Plan for 2017 [Member]
Restricted Stock Awards
Shares granted		33,883
Vesting term		3 years
Performance Shares [Member] | LTI Plan for 2017 [Member] | Original Maximum [Member]
Restricted Stock Awards
Percent of awards participants may earn		150.00%
Performance Shares [Member] | LTI Plan for 2017 [Member] | Original Threshold [Member]
Restricted Stock Awards
Percent of awards participants may earn		50.00%
Performance Shares [Member] | LTI Plan for 2017 [Member] | Original Target [Member]
Restricted Stock Awards
Percent of awards participants may earn		100.00%
Performance Shares [Member] | LTI Plan for 2018 [Member]
Restricted Stock Awards
Shares granted	32,960
Vesting term	3 years
Performance Shares [Member] | LTI Plan for 2018 [Member] | Original Maximum [Member]
Restricted Stock Awards
Percent of awards participants may earn	150.00%
Performance Shares [Member] | LTI Plan for 2018 [Member] | Original Threshold [Member]
Restricted Stock Awards
Percent of awards participants may earn	50.00%
Performance Shares [Member] | LTI Plan for 2018 [Member] | Original Target [Member]
Restricted Stock Awards
Percent of awards participants may earn	100.00%
Retention Based Shares [Member] | LTI Plan for 2016 [Member]
Restricted Stock Awards
Shares granted			36,543
Retention Based Shares [Member] | LTI Plan for 2016 [Member] | Award, Tranche One [Member]
Restricted Stock Awards
Shares granted			10,352
Vesting term			1 year
Retention Based Shares [Member] | LTI Plan for 2016 [Member] | Award, Tranche Two [Member]
Restricted Stock Awards
Shares granted			26,191
Vesting term			3 years
Retention Based Shares [Member] | LTI Plan for 2017 [Member]
Restricted Stock Awards
Shares granted		55,159
Retention Based Shares [Member] | LTI Plan for 2017 [Member] | Award, Tranche One [Member]
Restricted Stock Awards
Shares granted		21,276
Vesting term		1 year
Retention Based Shares [Member] | LTI Plan for 2017 [Member] | Award, Tranche Two [Member]
Restricted Stock Awards
Shares granted		33,883
Vesting term		3 years
Retention Based Shares [Member] | LTI Plan for 2018 [Member]
Restricted Stock Awards
Shares granted	50,852
Retention Based Shares [Member] | LTI Plan for 2018 [Member] | Award, Tranche One [Member]
Restricted Stock Awards
Shares granted	17,908
Vesting term	1 year
Retention Based Shares [Member] | LTI Plan for 2018 [Member] | Award, Tranche Two [Member]
Restricted Stock Awards
Shares granted	32,944
Vesting term	3 years

SHORT-TERM BORROWINGS AND LON_2

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Long-term debt	$ 224,306	$ 164,786
Government-Sponsored Enterprise Obligations [Member]
Fair value of collateralized repurchase agreements		6,700
Collateralized Mortgage Backed Securities [Member]
Fair value of collateralized repurchase agreements		58,400
Cutomer Repurchase Agreements [Member]
Customer repurchase agreements		11,700
FHLBB Ideal Way Line of Credit [Member]
Line of credit available	9,500	9,500
Atlantic Community Bankers Bank [Member]
Line of credit available	4,000
Required cash reserve amount	300
PNC Bank [Member]
Line of credit available	50,000
FHLBB Advances [Member]
Short-term borrowings	55,000	133,000
Long-term debt	$ 224,300	$ 164,800

PENSION BENEFITS (Details)

PENSION BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Defined Benefit Plan [Abstract]
Service cost	$ 304	$ 245	$ 910	$ 778
Interest cost	253	254	759	761
Expected return on assets	(347)	(298)	(1,041)	(895)
Actuarial loss	56	51	170	153
Net periodic pension cost	$ 266	$ 252	$ 798	$ 797

DERIVATIVES AND HEDGING ACTIV_3

DERIVATIVES AND HEDGING ACTIVITIES (Details) - Interest Rate Swap Agreement [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other Assets [Member]
Fair value of derivative assets	$ 4
Other Liabilities [Member]
Fair value of derivative liability	$ 715	$ 2,152

DERIVATIVES AND HEDGING ACTIV_4

DERIVATIVES AND HEDGING ACTIVITIES (Details 1) - Interest Rate Swap Agreement [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Notional Amount	$ 55,000	$ 55,000
Weighted Average Maturity	2 years 6 months	3 years 3 months 18 days
Weighted Average Rate Received	2.34%	1.64%
Weighted Average Rate Paid	2.93%	2.93%
Estimated Fair Value	$ (711)	$ (2,152)

DERIVATIVES AND HEDGING ACTIV_5

DERIVATIVES AND HEDGING ACTIVITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest Rate Swap [Member] | Derivatives Designated As Cash Flow Hedges [Member]
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	$ 168	$ (14)	$ 1,086	$ (307)

DERIVATIVES AND HEDGING ACTIV_6

DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Estimated amount to be reclassified during the next 12 month period	$ 1,300		$ 1,300
Termination value of derivatives in a net liability position	708		708		$ 2,200
Collateralized Mortgage Backed Securities [Member]
Fair value of mortgage backed securities collateralized	1,000		1,000
Interest Rate Swap [Member]
Reclassifications amount, effective portion	$ 351	$ 497	$ 120	$ 160

FAIR VALUE OF ASSETS AND LIABLI

FAIR VALUE OF ASSETS AND LIABLITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available for sale securities	$ 252,984
Marketable equity securities	6,319
Interest rate swaps - Assets	4
Interest rate swaps - Liabilities	715	$ 2,152
Fair Value Level 1 [Member]
Marketable equity securities	6,319
Fair Value Level 2 [Member]
Interest rate swaps - Assets	4
Interest rate swaps - Liabilities	715	2,152
Recurring [Member]
Marketable equity securities	6,319
Interest rate swaps - Assets	4
Total assets	259,307	288,416
Interest rate swaps - Liabilities	715	2,152
Recurring [Member] | States and Municipal Bonds [Member]
Available for sale securities	2,912	3,239
Recurring [Member] | Corporate Bonds [Member]
Available for sale securities	48,382	56,144
Recurring [Member] | US Government Guaranteed Mortgage-Backed Securities [Member]
Available for sale securities	19,447	16,254
Recurring [Member] | Government-Sponsored Mortgage-Backed Securities [Member]
Available for sale securities	158,931	182,001
Recurring [Member] | Government-Sponsored Enterprise Obligations [Member]
Available for sale securities	23,312	24,381
Recurring [Member] | Mutual Funds [Member]
Mutual funds		6,397
Recurring [Member] | Fair Value Level 1 [Member]
Marketable equity securities	6,319
Total assets	6,319	6,397
Recurring [Member] | Fair Value Level 1 [Member] | Mutual Funds [Member]
Mutual funds		6,397
Recurring [Member] | Fair Value Level 2 [Member]
Interest rate swaps - Assets	4
Total assets	252,988	282,019
Interest rate swaps - Liabilities	715	2,152
Recurring [Member] | Fair Value Level 2 [Member] | States and Municipal Bonds [Member]
Available for sale securities	2,912	3,239
Recurring [Member] | Fair Value Level 2 [Member] | Corporate Bonds [Member]
Available for sale securities	48,382	56,144
Recurring [Member] | Fair Value Level 2 [Member] | US Government Guaranteed Mortgage-Backed Securities [Member]
Available for sale securities	19,447	16,254
Recurring [Member] | Fair Value Level 2 [Member] | Government-Sponsored Mortgage-Backed Securities [Member]
Available for sale securities	158,931	182,001
Recurring [Member] | Fair Value Level 2 [Member] | Government-Sponsored Enterprise Obligations [Member]
Available for sale securities		$ 24,381
Recurring [Member] | Fair Value Level 2 [Member] | Government-Sponsored Enterprise Obligations [Member]
Available for sale securities	$ 23,312

FAIR VALUE OF ASSETS AND LIAB_3

FAIR VALUE OF ASSETS AND LIABLITIES (Details 1) - Nonrecurring [Member] $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2018USD ($)
Gains (losses) arising from fair value adjustment of assets	$ (393)	$ (473)
Impaired Loans [Member]
Gains (losses) arising from fair value adjustment of assets	(393)	(473)
Fair Value Inputs Level 3 [Member]
Impaired loans	970	970
Total Assets	$ 970	$ 970

FAIR VALUE OF ASSETS AND LIAB_4

FAIR VALUE OF ASSETS AND LIABLITIES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 61,999	$ 27,132
Securities available-for-sale	252,984	288,416
Marketable equity securities	6,319
Federal Home Loan Bank of Boston and other restricted stock	15,480	15,553
Loans - net	1,616,600	1,581,929
Accrued interest receivable	5,831	5,946
Mortgage servicing rights	469	528
Derivative assets	4
Liabilities:
Deposits	1,603,546	1,503,311
Short-term borrowings	55,002	144,650
Long-term debt	222,296	164,016
Accrued interest payable	617	441
Derivative liabilities	715	2,152
Fair Value Level 1 [Member]
Assets:
Cash and cash equivalents	61,999	27,132
Securities available-for-sale		6,397
Marketable equity securities	6,319
Fair Value Level 2 [Member]
Assets:
Securities available-for-sale	252,984	282,019
Mortgage servicing rights	469	528
Derivative assets	4
Liabilities:
Short-term borrowings	55,002	144,650
Long-term debt	222,296	164,016
Derivative liabilities	715	2,152
Fair Value Level 3 [Member]
Assets:
Federal Home Loan Bank of Boston and other restricted stock	15,480	15,553
Loans - net	1,616,600	1,581,929
Accrued interest receivable	5,831	5,946
Liabilities:
Deposits	1,603,546	1,503,311
Accrued interest payable	617	441
Carrying Value [Member]
Assets:
Cash and cash equivalents	61,999	27,132
Securities available-for-sale	252,984	288,416
Marketable equity securities	6,319
Federal Home Loan Bank of Boston and other restricted stock	15,480	15,553
Loans - net	1,680,333	1,619,850
Accrued interest receivable	5,831	5,946
Mortgage servicing rights	302	352
Derivative assets	4
Liabilities:
Deposits	1,609,019	1,506,082
Short-term borrowings	55,000	144,650
Long-term debt	224,306	164,786
Accrued interest payable	617	441
Derivative liabilities	$ 715	$ 2,152

RECENT ACCOUNTING PRONOUNCEME_2

RECENT ACCOUNTING PRONOUNCEMENTS (Details Narrative) $ in Thousands	Sep. 30, 2018USD ($)
Accounting Changes and Error Corrections [Abstract]
Future lease payments outstanding	$ 8,700