Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | Western New England Bancorp, Inc. | |
Entity Central Index Key | 0001157647 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,953,429 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
CONSOLIDATED BALANCE SHEETS - U
CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 19,782 | $ 20,616 |
Federal Funds Sold | 1,275 | 1,246 |
Interest-bearing deposits and other short-term investments | 23,425 | 4,927 |
Cash and cash equivalents | 44,482 | 26,789 |
Securities available-for-sale, at fair value | 244,878 | 253,748 |
Marketable equity securities, at fair value | 6,518 | 6,408 |
Federal Home Loan Bank stock and other restricted stock, at cost | 12,407 | 14,695 |
Loans, net of allowance for loan losses of $11,879 and $12,053 at March 31, 2019 and December 31, 2018, respectively | 1,668,787 | 1,684,804 |
Premises and equipment, net | 24,432 | 24,624 |
Accrued interest receivable | 5,640 | 5,652 |
Bank-owned life insurance | 69,677 | 69,252 |
Deferred tax asset, net | 8,753 | 9,872 |
Goodwill | 12,487 | 12,487 |
Core deposit intangible | 3,594 | 3,688 |
Other assets | 14,042 | 6,803 |
Total Assets | 2,115,697 | 2,118,822 |
Deposits: | ||
Non-interest-bearing | 345,077 | 355,389 |
Interest-bearing | 1,284,757 | 1,240,604 |
Total deposits | 1,629,834 | 1,595,993 |
Short-term borrowings | 35,000 | 59,250 |
Long-term debt | 196,039 | 208,018 |
Other liabilities | 27,507 | 18,532 |
Total liabilities | 1,888,380 | 1,881,793 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock - $0.01 par value, 5,000,000 shares authorized, none outstanding at March 31, 2019 and December 31, 2018 | ||
Common stock - $0.01 par value, 75,000,000 shares authorized, 26,953,429 shares issued and outstanding at March 31, 2019; 28,393,348 shares issued and outstanding at December 31, 2018 | 270 | 284 |
Additional paid-in capital | 167,812 | 182,096 |
Unearned compensation - ESOP | (5,022) | (5,171) |
Unearned compensation - Equity Incentive Plan | (1,702) | (872) |
Retained earnings | 76,156 | 74,108 |
Accumulated other comprehensive loss | (10,197) | (13,416) |
TOTAL SHAREHOLDERS' EQUITY | 227,317 | 237,029 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,115,697 | $ 2,118,822 |
CONSOLIDATED BALANCE SHEETS -_2
CONSOLIDATED BALANCE SHEETS - UNAUDITED (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 11,879 | $ 12,053 |
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 | 26,953,429 | 28,393,348 |
Common stock, outstanding | 26,953,429 | 28,393,348 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and dividend income: | ||
Residential and commercial real estate loans | $ 14,971 | $ 13,799 |
Commercial and industrial loans | 3,002 | 2,814 |
Consumer loans | 85 | 89 |
Debt securities, taxable | 1,629 | 1,748 |
Debt securities, tax-exempt | 20 | 24 |
Equity securities | 41 | 36 |
Other investments | 236 | 201 |
Short-term investments | 76 | 21 |
Total interest and dividend income | 20,060 | 18,732 |
INTEREST EXPENSE: | ||
Deposits | 3,969 | 2,355 |
Long-term debt | 1,139 | 855 |
Short-term borrowings | 626 | 800 |
Total interest expense | 5,734 | 4,010 |
Net interest and dividend income | 14,326 | 14,722 |
Provision for loan losses | 50 | 500 |
Net interest and dividend income after provision for loan losses | 14,276 | 14,222 |
Non-interest income (loss): | ||
Service charges and fees | 1,633 | 1,583 |
Income from BOLI | 425 | 442 |
Gain (loss) on available-for-sale securities, net | 35 | (201) |
Unrealized gains (losses) on marketable equity securities | 70 | (106) |
Gain on sale of other real estate owned | 48 | |
Other income | 8 | |
Total non-interest income | 2,171 | 1,766 |
Non-interest expense: | ||
Salaries and employees benefits | 6,780 | 6,533 |
Occupancy | 1,171 | 1,060 |
Furniture and equipment | 405 | 367 |
Data processing | 665 | 637 |
Professional fees | 705 | 659 |
FDIC insurance assessment | 176 | 158 |
Advertising | 364 | 347 |
Other expenses | 1,757 | 1,665 |
Total non-interest expense | 12,023 | 11,426 |
Income before income taxes | 4,424 | 4,562 |
Income tax provision | 994 | 1,043 |
Net income | $ 3,430 | $ 3,519 |
Earnings per common share: | ||
Basic earnings per share (in dollars per share) | $ 0.13 | $ 0.12 |
Weighted average shares outstanding (in shares) | 27,037,520 | 29,484,824 |
Diluted earnings per share (in dollars per share) | $ 0.13 | $ 0.12 |
Weighted average diluted shares outstanding (in shares) | 27,153,160 | 29,620,929 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 3,430 | $ 3,519 | |
Unrealized gains (losses) on available-for-sale securities: | |||
Unrealized holding gains (losses) | 4,327 | (5,116) | |
Reclassification adjustment for net (gains) losses realized in income | [1] | (35) | 201 |
Cumulative-effect adjustment due to change in accounting principle (ASU 2017-08) | 7 | ||
Cumulative-effect adjustment due to change in accounting principle (ASU 2016-01) | 237 | ||
Unrealized gains (losses) | 4,299 | (4,678) | |
Tax effect | (1,113) | 1,070 | |
Net-of-tax amount | 3,186 | (3,608) | |
Cash flow hedges: | |||
Change in fair value of derivatives used for cash flow hedges | (328) | 678 | |
Reclassification adjustment for loss realized in interest expense | [2] | 68 | 171 |
Reclassification adjustment for termination fee realized in interest expense | [3] | 264 | 264 |
Unrealized gains on cash flow hedges | 4 | 1,113 | |
Tax effect | (1) | (313) | |
Net-of-tax amount | 3 | 800 | |
Defined benefit pension plan: | |||
Amortization of defined benefit plans actuarial loss | [4] | 32 | 57 |
Tax effect | (9) | (16) | |
Net-of-tax amount | 23 | 41 | |
Other comprehensive income (loss) | 3,212 | (2,767) | |
Comprehensive income | $ 6,642 | $ 752 | |
[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 and losses were $10,000 and $(57,000) for the three months ended March 31, 2019 and 2018, respectively. | ||
[2] | Loss realized in interest expense on derivative instruments is recognized as a component of interest expense on short-term debt. Income tax effects associated with the reclassification adjustments were $19,000 and $48,000 for the three months ended March 31, 2019 and 2018, respectively. | ||
[3] | Loss realized in interest expense on derivative instruments is recognized as a component of interest expense on short-term debt. Income tax effects associated with the reclassification adjustments were $74,000 for the three months ended March 31, 2019 and 2018. | ||
[4] | Amounts represent the reclassification of defined benefit plans amortization and have been recognized as a component of non-interest expense. Income tax effects associated with the reclassification adjustments were $9,000 and $16,000 for the three months ended March 31, 2019 and 2018, respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Income tax benefits on realized gains and losses on available-for-sale securities | $ 10 | $ (57) |
Income tax benefit on derivative instruments | 19 | 48 |
Income tax benefit on termination fee on derivative instruments | 74 | 74 |
Income tax benefit, defined benefit plans | $ 9 | $ 16 |
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, 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 | 3,519 | (2,767) | 752 | ||||
Cumulative-effect adjustment due to change in accounting principle | (237) | 237 | |||||
Common stock held by ESOP committed to be released | 88 | 154 | 242 | ||||
Share-based compensation - equity incentive plan | 232 | 232 | |||||
Common stock repurchased | $ (5) | (4,798) | (4,803) | ||||
Common stock repurchased (in shares) | (451,641) | ||||||
Issuance of common stock in connection with stock option exercises | $ 1 | 103 | 104 | ||||
Issuance of common stock in connection with stock option exercises (shares) | 16,975 | ||||||
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 | (1,185) | (1,185) | |||||
BALANCE AT ENDING at Mar. 31, 2018 | $ 302 | 199,845 | (5,632) | (1,485) | 64,675 | (15,082) | 242,623 |
BALANCE AT ENDING (shares) at Mar. 31, 2018 | 30,138,083 | ||||||
BALANCE AT BEGINNING at Dec. 31, 2018 | $ 284 | 182,096 | (5,171) | (872) | 74,108 | (13,416) | 237,029 |
BALANCE AT BEGINNING (shares) at Dec. 31, 2018 | 28,393,348 | ||||||
Comprehensive income | 3,430 | 3,212 | 6,642 | ||||
Cumulative-effect adjustment due to change in accounting principle | (7) | 7 | |||||
Common stock held by ESOP committed to be released | 60 | 149 | 209 | ||||
Share-based compensation - equity incentive plan | (45) | 240 | 195 | ||||
Common stock repurchased | $ (15) | (15,432) | (15,447) | ||||
Common stock repurchased (in shares) | (1,555,352) | ||||||
Issuance of common stock in connection with stock option exercises | 64 | 64 | |||||
Issuance of common stock in connection with stock option exercises (shares) | 12,550 | ||||||
Issuance of common stock in connection with equity incentive plan | $ 1 | 1,069 | (1,070) | ||||
Issuance of common stock in connection with equity incentive plan (shares) | 102,883 | ||||||
Cash dividends declared and paid | (1,375) | (1,375) | |||||
BALANCE AT ENDING at Mar. 31, 2019 | $ 270 | $ 167,812 | $ (5,022) | $ (1,702) | $ 76,156 | $ (10,197) | $ 227,317 |
BALANCE AT ENDING (shares) at Mar. 31, 2019 | 26,953,429 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock held by ESOP committed to be released (shares) | 88,117 | 90,978 |
Cash dividends declared (per share) | $ 0.05 | $ 0.04 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 3,430 | $ 3,519 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 50 | 500 |
Depreciation and amortization of premises and equipment | 529 | 494 |
Accretion of purchase accounting adjustments, net | (10) | (225) |
Amortization of core deposit intangible | 94 | 94 |
Net amortization of premiums and discounts on securities and mortgage loans | 540 | 793 |
Share-based compensation expense | 195 | 232 |
ESOP expense | 209 | 242 |
Net (gain) loss on available-for-sale securities | (35) | 201 |
Change in unrealized (gain) loss on equity securities | (70) | 106 |
Net gain on sales of other real estate owned | (48) | |
Income from bank-owned life insurance | (425) | (442) |
Net change in: | ||
Accrued interest receivable | 12 | 68 |
Other assets | (7,249) | 977 |
Other liabilities | 9,231 | 2,415 |
Net cash provided by operating activities | 6,501 | 8,926 |
Securities, available-for-sale: | ||
Purchases | (15,294) | (2,577) |
Proceeds from sales and redemption | 21,642 | 5,635 |
Proceeds from calls, maturities, and principal collections | 6,296 | 5,966 |
Loan originations and principal payments, net | 15,912 | (16,202) |
Redemption of Federal Home Loan Bank of Boston stock | 2,288 | 868 |
Proceeds from sale of other real estate owned | 203 | |
Purchases of premises and equipment | (374) | (677) |
Proceeds from sale of premises and equipment | 27 | 20 |
Net cash provided by (used in) investing activities | 30,497 | (6,764) |
FINANCING ACTIVITIES: | ||
Net increase in deposits | 33,875 | 47,735 |
Net change in short-term borrowings | (24,250) | (89,650) |
Repayment of long-term debt | (11,951) | (31,992) |
Proceeds from long-term debt | 80,000 | |
Cash dividends paid | (1,375) | (1,185) |
Common stock repurchased | (15,668) | (4,868) |
Issuance of common stock in connection with stock option exercises | 64 | 104 |
Net cash (used in) provided by financing activities | (19,305) | 144 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 17,693 | 2,306 |
Beginning of period | 26,789 | 27,132 |
End of period | 44,482 | 29,438 |
Supplemental cash flow information: | ||
Interest paid | 5,655 | 3,969 |
Taxes paid | 832 | 30 |
Net change in cash due to broker for common stock repurchased | $ (221) | $ (65) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Basis of Presentation The Bank’s deposits are insured up to the maximum Federal Deposit Insurance Corporation (“FDIC”) coverage limits. The Bank operates 22 banking offices in western Massachusetts and northern Connecticut, and its primary sources of revenue are interest income from loans as well as interest income from investment securities. Wholly-owned Subsidiaries 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, 2018, included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Annual Report”). Reclassifications. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings per common share: | |
EARNINGS PER SHARE | 2. EARNINGS PER SHARE Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. If rights to dividends on unvested awards are non-forfeitable, these unvested awards are considered outstanding in the computation of basic earnings per share. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by us relate solely to stock options and are determined using the treasury stock method. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. There were no anti-dilutive shares outstanding during the three months ended March 31, 2019 and 2018. Earnings per common share have been computed based on the following: Three Months Ended March 31, 2019 2018 (In thousands, except per share data) Net income applicable to common stock $ 3,430 $ 3,519 Average number of common shares issued 27,834 30,358 Less: Average unallocated ESOP Shares (700 ) (791 ) Less: Average unvested equity incentive plan shares (96 ) (82 ) Average number of common shares outstanding used to calculate basic earnings per common share 27,038 29,485 Effect of dilutive equity incentive plan 79 35 Effect of dilutive stock options 36 101 Average number of common shares outstanding used to calculate diluted earnings per common share 27,153 29,621 Basic earnings per share $ 0.13 $ 0.12 Diluted earnings per share $ 0.13 $ 0.12 |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [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: March 31, 2019 December 31, 2018 (In thousands) Net unrealized losses on securities available-for-sale $ (5,585 ) $ (9,891 ) Tax effect 1,378 2,491 Net-of-tax amount (4,207 ) (7,400 ) Fair value of derivatives used for cash flow hedges (1,518 ) (1,259 ) Termination fee on cancelled cash flow hedges (2,332 ) (2,595 ) Total derivatives (3,850 ) (3,854 ) Tax effect 1,083 1,084 Net-of-tax amount (2,767 ) (2,770 ) Unrecognized actuarial loss on the defined benefit plan (4,484 ) (4,516 ) Tax effect 1,261 1,270 Net-of-tax amount (3,223 ) (3,246 ) Accumulated other comprehensive loss $ (10,197 ) $ (13,416 ) The following table presents changes in accumulated other comprehensive loss for the periods ended March 31, 2019 and 2018 by component: Securities Derivatives Defined Benefit Plan Accumulated Other Comprehensive Loss (In thousands) Balance at December 31, 2017 $ (4,042 ) $ (4,181 ) $ (4,329 ) $ (12,552 ) Cumulative-effect adjustment due to change in accounting 237 — — 237 Current-period other comprehensive (loss) income (3,608 ) 800 41 (2,767 ) Balance at March 31, 2018 $ (7,413 ) $ (3,381 ) $ (4,288 ) $ (15,082 ) Balance at December 31, 2018 $ (7,400 ) $ (2,770 ) $ (3,246 ) $ (13,416 ) Cumulative-effect adjustment due to change in accounting 7 — — 7 Current-period other comprehensive income 3,186 3 23 3,212 Balance at March 31, 2019 $ (4,207 ) $ (2,767 ) $ (3,223 ) $ (10,197 ) |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | 4. SECURITIES Securities available-for-sale are summarized as follows: March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 25,150 $ — $ (511 ) $ 24,639 State and municipal bonds 2,965 38 (11 ) 2,992 Corporate bonds 26,060 — (389 ) 25,671 Total debt securities 54,175 38 (911 ) 53,302 Mortgage-backed securities: Government-sponsored mortgage-backed securitiess 176,696 103 (4,177 ) 172,622 U.S. government guaranteed mortgage-backed securities 19,592 19 (657 ) 18,954 Total mortgage-backed securities 196,288 122 (4,834 ) 191,576 Total available-for-sale $ 250,463 $ 160 $ (5,745 ) $ 244,878 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 25,150 $ — $ (1,203 ) $ 23,947 State and municipal bonds 2,976 33 (65 ) 2,944 Corporate bonds 49,819 — (1,651 ) 48,168 Total debt securities 77,945 33 (2,919 ) 75,059 Mortgage-backed securities: Government-sponsored mortgage-backed securities 165,605 1 (6,255 ) 159,351 U.S. government guaranteed mortgage-backed securities 20,089 1 (752 ) 19,338 Total mortgage-backed securities 185,694 2 (7,007 ) 178,689 Total available-for-sale $ 263,639 $ 35 $ (9,926 ) $ 253,748 At March 31, 2019, government-sponsored enterprise obligations with a fair value of $6.9 million and mortgage-backed securities with a fair value $54.5 million were pledged to secure public deposits and for other purposes as required or permitted by law. During the three months ended March 31, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2017-08, Receivables – Nonrefundable Fees and Other Costs Premium Amortization on Purchased Callable Debt Securities The amortized cost and fair value of available-for-sale debt securities at March 31, 2019, 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. March 31, 2019 Amortized Cost Fair Value (In thousands) Available-for-sale securities: Debt securities:: Due in one year or less $ 240 $ 240 Due after one year through five years 29,482 29,003 Due after five years through ten years 17,715 17,440 Due after ten years 6,738 6,619 Total debt securities 54,175 53,302 Mortgage-backed securities 196,288 191,576 Total available-for-sale securities $ 250,463 $ 244,878 Gross realized gains and losses on securities available-for-sale for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (In thousands) Gross gains realized $ 35 $ — Gross losses realized — (201 ) Net loss realized $ 35 $ (201 ) Proceeds from the sales of securities available-for-sale amounted to $21.6 million for the three months ended March 31, 2019, while proceeds from the redemption of securities available-for-sale amounted to $5.6 million for the three months ended March 31, 2018. Information pertaining to securities with gross unrealized losses at March 31, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: March 31, 2019 Less Than 12 Months Over 12 Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value (In thousands) Available-for-sale: Government-sponsored mortgage-backed securities $ 12 $ 1,044 $ 4,165 $ 146,695 U.S. government guaranteed mortgage-backed securities — — 657 15,414 Corporate bonds — — 389 25,671 State and municipal bonds — — 11 1,576 Government-sponsored enterprise obligations — — 511 24,639 Total available-for-sale $ 12 $ 1,044 $ 5,733 $ 213,995 December 31, 2018 Less Than 12 Months Over 12 Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value (In thousands) Available-for-sale Government-sponsored mortgage-backed securities $ 74 $ 7,354 $ 6,181 $ 148,762 U.S. government guaranteed mortgage-backed securities 15 2,829 737 14,669 Corporate bonds 110 9,995 1,541 38,173 State and municipal bonds — — 65 1,532 Government-sponsored enterprise obligations — — 1,203 23,947 Total available-for-sale $ 199 $ 20,178 $ 9,727 $ 227,083 During the three months ended March 31, 2019 and year ended December 31, 2018, the Company did not record any fair value impairment charges on its investments. Management regularly reviews the portfolio for securities with unrealized losses. At March 31, 2019, management did not consider any debt securities to have other-than-temporary impairment (“OTTI”) and attributes the unrealized losses to increases in current market yields compared to the yields at the time the investments were purchased by the Company and not due to credit quality. The process for assessing investments for OTTI may vary depending on the type of security. In assessing the Company’s investments in government-sponsored mortgage-backed securities and obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise; Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”), Federal Farm Credit Bank (“FFCB”), or Federal Home Loan Bank (“FHLB”). Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company’s investments. Management’s assessment of other debt securities within the portfolio includes reviews of market pricing, ongoing credit quality evaluations, assessment of the investments’ materiality, and duration of the investments’ unrealized loss position. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | 5. LOANS AND ALLOWANCE FOR LOAN LOSSES Major classifications of loans at the periods indicated were as follows: March 31, December 31, 2019 2018 (In thousands) Commercial real estate $ 770,776 $ 768,881 Residential real estate: Residential 1-4 family 575,561 577,641 Home equity 95,997 97,238 Commercial and industrial 228,709 243,493 Consumer 5,270 5,203 Total gross loans 1,676,313 1,692,456 Premiums and deferred loan fees and costs, net 4,353 4,401 Allowance for loan losses (11,879 ) (12,053 ) Net loans $ 1,668,787 $ 1,684,804 There were no purchases of loans during the three months ended March 31, 2019 and year ended December 31, 2018. Loans Serviced for Others. The Company has transferred a portion of its originated commercial loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in our accompanying consolidated balance sheets. We continue to service the loans on behalf of the participating lenders. We share with participating lenders, on a pro-rata basis, any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. At March 31, 2019 and December 31, 2018, the Company was servicing commercial loans participated out to various other institutions totaling $35.2 million and $35.4 million, respectively. 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 FHLMC. 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 March 31, 2019, include weighted average prepayment speed for the portfolio using the Public Securities Association Standard Prepayment Model (148 PSA), weighted average internal rate of return (12.05%), weighted average servicing fee (0.25%), and net cost to service loans ($84.30 per loan). The estimated fair value of capitalized servicing rights may vary significantly in subsequent periods primarily due to changing market interest rates, and their effect on prepayment speeds and discount rates. At March 31, 2019 and December 31, 2018, the Company was servicing residential mortgage loans owned by investors totaling $55.2 million and $56.6 million, respectively. Net service fee income of $18,000 and $25,000 was recorded for the three months ended March 31, 2019 and 2018, respectively, and is included in service charges and fees on the consolidated statements of operations. A summary of the activity in the balances of mortgage servicing rights follows: Three Months Ended March 31, 2019 2018 (In thousands) Balance at the beginning of year: $ 286 $ 352 Capitalized mortgage servicing rights — — Amortization (17 ) (17 ) Balance at the end of period $ 269 $ 335 Fair value at the end of period $ 416 $ 537 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 Commercial real estate. Commercial and industrial loans Consumer loans 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 three months ended March 31, 2019 and 2018 is as follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) Balance at December 31, 2017 $ 4,712 $ 3,311 $ 2,733 $ 71 $ 4 $ 10,831 Provision (credit) 452 71 (59 ) 25 11 500 Charge-offs — — — (36 ) — (36 ) Recoveries 35 15 7 18 — 75 Balance at March 31, 2018 $ 5,199 $ 3,397 $ 2,681 $ 78 $ 15 $ 11,370 Balance at December 31, 2018 $ 5,260 $ 3,556 $ 3,114 $ 135 $ (12 ) $ 12,053 Provision (credit) 24 108 (127 ) 28 17 50 Charge-offs (116 ) (94 ) (37 ) (46 ) — (293 ) Recoveries 37 1 4 27 — 69 Balance at March 31, 2019 $ 5,205 $ 3,571 $ 2,954 $ 144 $ 5 $ 11,879 The following table presents information pertaining to the allowance for loan losses by segment for the dates indicated: Commercial Residential Commercial Consumer Unallocated Total (In thousands) March 31, 2019 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 5,205 3,571 2,954 144 5 11,879 Total allowance for loan losses $ 5,205 $ 3,571 $ 2,954 $ 144 $ 5 $ 11,879 Impaired loans $ 7,156 $ 4,041 $ 3,300 $ 53 $ — $ 14,550 Non-impaired loans 753,175 664,340 224,530 5,217 — 1,647,262 Impaired loans acquired with deteriorated credit quality 10,445 3,177 879 — — 14,501 Total loans $ 770,776 $ 671,558 $ 228,709 $ 5,270 $ — $ 1,676,313 December 31, 2018 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 5,260 3,556 3,114 135 (12 ) 12,053 Total allowance for loan losses $ 5,260 $ 3,556 $ 3,114 $ 135 $ (12 ) $ 12,053 Impaired loans $ 5,237 $ 4,754 $ 2,345 $ 60 $ — $ 12,396 Non-impaired loans 752,770 666,883 240,235 5,143 — 1,665,031 Impaired loans acquired with deteriorated credit quality 10,874 3,242 913 — — 15,029 Total loans $ 768,881 $ 674,879 $ 243,493 $ 5,203 $ — $ 1,692,456 Past Due and Non-accrual Loans. The following tables present an age analysis of past due loans as of the dates indicated: 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Total Current Loans Total Loans Non-Accrual Loans (In thousands) March 31, 2019 Commercial real estate $ 3,238 $ 2,327 $ 2,890 $ 8,455 $ 762,321 $ 770,776 $ 6,547 Residential real estate: Residential 1,513 378 3,199 5,090 570,471 575,561 4,945 Home equity 301 — 197 498 95,499 95,997 369 Commercial and industrial 305 357 301 963 227,746 228,709 3,399 Consumer 77 17 3 97 5,173 5,270 52 Total loans $ 5,434 $ 3,079 $ 6,590 $ 15,103 $ 1,661,210 $ 1,676,313 $ 15,312 December 31, 2018 Commercial real estate $ 1,857 $ — $ 2,865 $ 4,722 $ 764,159 $ 768,881 $ 4,701 Residential real estate: Residential 1,798 572 1,879 4,249 573,392 577,641 5,856 Home equity 600 5 242 847 96,391 97,238 391 Commercial and industrial 794 1,463 305 2,562 240,931 243,493 2,476 Consumer 93 1 21 115 5,088 5,203 60 Total loans $ 5,142 $ 2,041 $ 5,312 $ 12,495 $ 1,679,961 $ 1,692,456 $ 13,484 Impaired Loans. The following is a summary of impaired loans by class: Three Months Ended At March 31, 2019 March 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest (In thousands) Impaired Loans (1) Commercial real estate $ 17,601 $ 20,722 $ — $ 16,856 $ 131 Residential real estate 6,823 7,900 — 7,190 44 Home equity 395 445 — 417 — Commercial and industrial 4,179 8,782 — 3,718 37 Consumer 53 64 — 57 — Total impaired loans $ 29,051 $ 37,913 $ — $ 28,238 $ 212 Three Months Ended At December 31, 2018 March 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest (In thousands) Impaired Loans (1) Commercial real estate $ 16,111 $ 19,081 $ — $ 15,404 $ 190 Residential real estate 7,558 8,614 — 6,578 10 Home equity 438 468 737 1 Commercial and industrial 3,258 7,788 — 3,990 44 Consumer 60 70 108 — Total impaired loans $ 27,425 $ 36,021 $ — $ 26,817 $ 245 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings. The majority of impaired loans are included within the non-accrual balances; however, not every loan on non-accrual status has been designated as impaired. Impaired loans include loans that have been modified in a troubled debt restructuring (“TDR”). Impaired loans are individually evaluated and exclude large groups of smaller-balance homogeneous loans, such as residential mortgage loans and consumer loans, which are collectively evaluated for impairment, and loans that are measured at fair value, unless the loan is amended in a TDR. All payments received on impaired loans in non-accrual status are applied to principal. There was no interest income recognized on nonaccrual impaired loans during the three months ended March 31, 2019 and March 31, 2018. The Company’s obligation to fulfill the additional funding commitments on impaired loans is generally contingent on the borrower’s compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company’s discretion. As of March 31, 2019, we have not committed to lend any additional funds for loans that are classified as impaired. Payments received on performing impaired loans are recorded in accordance with the contractual terms of the loan. Interest income recognized on impaired loans during the three months ended March 31, 2019 and 2018 pertained to performing TDRs and purchased impaired loans. Troubled Debt Restructurings. Loans are designated as a TDR when, as part of an agreement to modify the original contractual terms of the loan as a result of financial difficulties of the borrower, the Bank grants the borrower a concession on the terms, that would not otherwise be considered. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, extension of additional credit based on receipt of adequate collateral, or a deferment or reduction of payments (principal or interest) which materially alters the Bank’s position or significantly extends the note’s maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan’s origination. All loans that are modified are reviewed by the Company to identify if a TDR has occurred. All TDR loans 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 a specific allowance or a charge-off to the allowance. Non-performing TDRs are included in non-performing loans. There were no significant loans modified in TDRs during the three months ended March 31, 2019 or 2018. During the three months ended March 31, 2019 and 2018, no TDRs defaulted (defined as 30 days or more past due) within 12 months of restructuring. As of March 31, 2019, we have not committed to lend any additional funds for loans that are classified as impaired. There were no charge-offs on TDRs during the three months ended March 31, 2019 and 2018. Loans Acquired with Deteriorated Credit Quality. The following is a summary of loans acquired in the Chicopee Bancorp, Inc. (“Chicopee”) acquisition with evidence of credit deterioration as of March 31, 2019 and 2018. Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2018 $ 24,793 $ 19,883 $ 4,910 $ 4,854 $ 15,029 Collections (702 ) (646 ) (56 ) (158 ) (488 ) Dispositions (71 ) (71 ) — (31 ) (40 ) Balance at March 31, 2019 $ 24,020 $ 19,166 $ 4,854 $ 4,665 $ 14,501 Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2017 $ 29,362 $ 23,158 $ 6,204 $ 6,033 $ 17,125 Collections (1,412 ) (1,194 ) (218 ) (175 ) (1,019 ) Balance at March 31, 2018 $ 27,950 $ 21,964 $ 5,986 $ 5,858 $ 16,106 Credit Quality Information. The Company utilizes 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. Non-performing residential real estate, home equity and consumer loans are monitored individually for impairment and risk rated as “substandard.” Loans rated 1 – 4 Loans rated 5 Loans rated 6 Loans rated 7 Loans rated 8 On an annual basis, or more often if needed, we formally review the ratings on all commercial real estate and commercial and industrial loans. In addition, management utilizes delinquency reports, the criticized report and other loan reports to monitor credit quality. In addition, at least on an annual basis, the Company contracts with an external loan review company to review the internal credit ratings assigned to loans in the commercial loan portfolio on a pre-determined schedule, based on the type, size, rating, and overall risk of the loan. During the course of its review, the third party examines a sample of loans, including new loans, existing relationships over certain dollar amounts and classified assets. The following table presents our loans by risk rating for the periods indicated: Commercial Real Estate Residential 1-4 Family Home Equity Commercial and Industrial Consumer Total (In thousands) March 31, 2019 Pass (Rated 1 – 4) $ 732,542 $ 569,124 $ 95,422 $ 191,580 $ 5,218 $ 1,593,886 Special Mention (Rated 5) 16,101 — — 7,802 — 23,903 Substandard (Rated 6) 22,133 6,437 575 29,327 52 58,524 Total $ 770,776 $ 575,561 $ 95,997 $ 228,709 $ 5,270 $ 1,676,313 December 31, 2018 Pass (Rated 1 – 4) $ 732,729 $ 570,428 $ 96,643 $ 207,663 $ 5,143 $ 1,612,606 Special Mention (Rated 5) 17,929 — — 12,248 — 30,177 Substandard (Rated 6) 18,223 7,213 595 23,582 60 49,673 Total $ 768,881 $ 577,641 $ 97,238 $ 243,493 $ 5,203 $ 1,692,456 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | 6. GOODWILL AND OTHER INTANGIBLES At March 31, 2019 and December 31, 2018, the Company’s goodwill was related to the acquisition of Chicopee in October 2016. There was no goodwill impairment recorded during the three months ended March 31, 2019 or the year ended December 31, 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 $94,000 for the three months ended March 31, 2019 and the three months ended March 31, 2018. At March 31, 2019, future amortization of the core deposit intangible totaled $375,000 for each of the next five years and $1.7 million thereafter. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 is presented below: Shares Weighted Average Exercise Price Weighted Aggregate Outstanding at December 31, 2018 238,075 $ 6.33 3.44 $ 877 Exercised (12,550 ) 5.12 0.74 60 Outstanding at March 31, 2019 225,525 $ 6.40 3.33 $ 633 Exercisable at March 31, 2019 225,525 $ 6.40 3.33 $ 633 Cash received for options exercised during the three months ended March 31, 2019 and 2018 was $64,000 and $104,000, respectively. Restricted Stock Awards. In January 2015, there were 48,560 shares granted under the RSA Plan. These shares vest ratably over five years. The fair market value of shares awarded are based on the market price at the grant date and recorded as unearned compensation. The shares are amortized over the applicable vesting period. In 2016, the Compensation Committee (the “Committee”) approved a long-term incentive program (“LTI Plan”). The 2016 LTI Plan provides a periodic award that is both performance and time-based and is designed to recognize the executive’s responsibilities, reward performance and leadership and as a retention tool. The objective of the 2016 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 2016 LTI Plan includes eligible participants of the Company that are nominated by the Chief Executive Officer and approved by the Compensation Committee. The 2016 LTI Plan is triggered by the Company’s achievement of satisfactory safety and soundness results from its most recent regulatory examination and additional Company performance metrics. Stock grants made under the 2016 LTI Plan consist of 50% time-based stock and 50% performance-based stock. In May 2016, there were 62,740 shares granted under the 2016 LTI Plan. Of the 62,740 shares granted, 36,543 shares were time-based stock, with 10,352 vesting in one year and 26,191 vesting ratably over a three year period. The remaining 26,197 shares granted were performance-based and are subject to the achievement of the 2016 LTI performance metrics. Under the 2016 LTI Plan, the primary performance metric was return on equity. 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 2016 LTI Plan are as follows: Return on Equity Metrics Threshold Target Original metrics 5.85 % 6.32 % Adjusted metrics 6.38 % 6.79 % As of December 31, 2018, the three-year performance period for the 2016 LTI Plan performance-based share grant expired. Performance-based shares were earned based on the Company achieving the 2016 LTI Plan threshold and target metrics at the end of the three-year performance period. The Company’s return on equity for the year ended December 31, 2018 was 6.82%, which resulted in the achievement of the target return on equity metric for the 2016 LTI Plan grant. In February of 2019, 26,197 performance-based shares vested and were granted to eligible recipients under the Plan. In May 2017, there were 89,042 shares granted under the 2017 LTI Plan. Of the 89,042 shares, 55,159 shares are time-based, with 21,276 vesting in one year and 33,883 vesting ratably over a three year period. The remaining 33,883 shares granted were performance-based and are subject to the achievement of the 2017 LTI performance metric. Vesting is realized after a three year period. Under the 2017 LTI Plan, the primary performance metric was return on equity. Performance-based 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. 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. 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 for 2019 under the 2017 LTI Plan are as follows: Return on Equity Metrics Performance Period Ending Original Threshold Adjusted Threshold Original Target Adjusted Target Original Maximum Adjusted Maximum December 31, 2019 6.50% 7.09 % 7.20 % 7.85 % 7.90 % 8.61 % Eligible participants will be able to earn between 50% (“threshold” performance), 100% (“target” performance) and 150% (“maximum” performance). In January 2018, there were 83,812 shares granted under the 2018 LTI Plan. Of the 83,812 shares, 50,852 shares were time-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. Under the 2018 LTI Plan, the primary performance metric was 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 2018 LTI Plan are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2019 6.85 % 7.35 % 7.75 % December 31, 2020 7.40 % 7.90 % 8.30 % Eligible participants will be able to earn between 50% (“threshold” performance), 100% (“target” performance) and 150% (“maximum” performance). The fair market value of shares awarded is based on the market price at the grant date, recorded as unearned compensation and amortized over the applicable vesting period. Performance-based metrics are monitored on a quarterly basis in order to compare actual results to the performance metric, with any necessary adjustments being recognized through share-based compensation expense and unearned compensation. In February 2019, there were 108,718 shares granted under the 2019 LTI Plan. Of the 108,718 shares, 64,496 shares were time-based, with 20,262 vesting in one year and 44,234 vesting ratably over a three-year period. The remaining 44,222 shares granted are performance-based and are subject to the achievement of the 2019 long-term incentive performance metric. Under the 2019 LTI Plan, the primary performance metric was 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 2019 LTI Plan are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2019 5.75 % 6.13 % 7.00 % December 31, 2020 6.00 % 6.75 % 7.75 % December 31, 2021 6.25 % 7.00 % 8.00 % Eligible participants will be able to earn between 50% (“threshold” performance), 100% (“target” performance) and 150% (“maximum” performance). The fair market value of shares awarded is based on the market price at the grant date, recorded as unearned compensation and amortized over the applicable vesting period. Performance-based metrics are monitored on a quarterly basis in order to compare actual results to the performance metric, with any necessary adjustments being recognized through share-based compensation expense and unearned compensation. At March 31, 2019, there were an additional 127,335 shares available for future grants under the RSA Plan. A summary of the status of restricted stock awards at March 31, 2019 is presented below: Shares Weighted Average Balance at December 31, 2018 155,712 $ 9.87 Shares granted 108,718 9.77 Shares vested (53,465 ) 8.75 Balance at March 31, 2019 210,965 $ 10.10 We recorded total expense for restricted stock awards of $195,000 and $232,000 for the three months ended March 31, 2019 and 2018, respectively. |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 8. SHORT-TERM BORROWINGS AND LONG-TERM DEBT As a member of the FHLB, the Bank has the potential capacity to borrow an amount up to the value of its discounted qualified collateral. Borrowings from the FHLB are secured by certain securities from the Company’s investment portfolio not otherwise pledged as well as certain residential real estate and commercial real estate loans. FHLB advances with an original maturity of less than one year totaled $35.0 million and $59.3 million at March 31, 2019 and December 31, 2018, respectively, with a weighted average rate of 2.69% and 3.28%, respectively. At March 31, 2019, based on qualifying collateral less outstanding advances, the Bank had the capacity to borrow up to approximately $229.5 million from the FHLB. In addition, at March 31, 2019 and December 31, 2018, the Company had an available Ideal Way line of credit with the FHLB for up to $9.5 million. Interest on this line of credit is payable at a rate determined and reset by the FHLB on a daily basis. The outstanding principal is due daily and the portion not repaid will be automatically renewed. At March 31, 2019 and December 31, 2018, there were no advances outstanding under this line. The Bank also had a line of credit in the amount up to $15.0 million with a correspondent bank at an interest rate determined and reset on a daily basis. There were no advances outstanding under this line at March 31, 2019 and 2018. We also had a $50.0 million line of credit with another correspondent bank at an interest rate determined and reset on a daily basis. There were no advances outstanding under the line at March 31, 2019 and 2018. Long-term debt consists of FHLBB advances with an original maturity of one year or more. At March 31, 2019, we had $196.0 million in long-term debt with the FHLBB. This compares to $208.0 million in long-term debt with FHLBB advances at December 31, 2018. |
PENSION BENEFITS
PENSION BENEFITS | 3 Months Ended |
Mar. 31, 2019 | |
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 pension plan the amount required to meet the minimum funding standards under Section 412 of the Internal Revenue Code of 1986, as amended. Additional contributions will be made as deemed appropriate by management in conjunction with the pension plan’s actuaries. We have not yet determined how much we expect to contribute to our pension plan in 2019. No contributions have been made to the plan for the three months ended March 31, 2019. The pension 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. On September 30, 2016, we effected a soft freeze on the Plan and therefore no new participants will be included in the Plan after such effective date. The following table provides information regarding net pension benefit costs for the periods shown: Three Months Ended March 31, 2019 2018 (In thousands) Service cost $ 274 $ 303 Interest cost 284 253 Expected return on assets (308 ) (347 ) Amortization of actuarial loss 32 57 Net periodic pension cost $ 282 $ 266 |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | 10. DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our assets and liabilities and the use of derivative financial instruments. Specifically, we entered into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to certain variable rate loan assets and variable rate borrowings. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of our derivative financial instruments designated as hedging instruments as well as our classification on the balance sheet as of March 31, 2019 and December 31, 2018. March 31, 2019 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swaps Other Assets $ — Other Liabilities $ 1,518 December 31, 2018 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swaps Other Assets $ — Other Liabilities $ 1,259 At March 31, 2019 and December 31, 2018, all derivatives were designated as hedging instruments. Cash Flow Hedges of Interest Rate Risk The Company’s 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 March 31, 2019 and December 31, 2018: March 31, 2019 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 $ 35,000 3.5 2.61 % 3.54 % $ (1,518 ) December 31, 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 $ 35,000 3.7 2.79 % 3.54 % $ (1,259 ) For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. We assess the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. We did not recognize any hedge ineffectiveness in earnings for the three months ended March 31, 2019 or the year ended December 31, 2018. We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of six years (excluding forecasted payment of variable interest on existing financial instruments). The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated. Amount of Gain (Loss) Recognized in OCI on Derivative Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps $ (328 ) $ 678 Amounts reported in accumulated other comprehensive loss related to these derivatives are reclassified to interest expense as interest payments are made on our designated rate sensitive liabilities. The amount reclassified from accumulated other comprehensive income into net income for interest rate swaps and termination fees was $332,000 and $435,000 during the three months ended March 31, 2019 and 2018, respectively. During the three months ended March 31, 2019 and 2018, no gains or losses were reclassified from accumulated other comprehensive loss into income for ineffectiveness on cash flow hedges. Credit-risk-related Contingent Features By using derivative financial instruments, we expose ourselves to credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative is negative, we owe the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that we believe to be creditworthy and by limiting the amount of exposure to each counterparty. We have agreements with our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as well capitalized, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements. Certain of our agreements with our derivative counterparties contain provisions where if a formal administrative action by a federal or state regulatory agency occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. At March 31, 2019 and December 31, 2018, we had a net liability position of $1.5 million and $1.3 million with our counterparties, respectively. As of March 31, 2019, we had minimum collateral posting thresholds with certain of our derivative counterparties and had mortgage-backed securities with a fair value of $850,000 and $830,000 cash posted as collateral against our obligations under these agreements. If we had breached any of these provisions at March 31, 2019, 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 | 3 Months Ended |
Mar. 31, 2019 | |
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. We group our assets and liabilities that are measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. Level 1: Valuation is based on quoted prices in active markets for identical assets. Level 1 assets generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. Level 2: Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Methods and assumptions for valuing our financial instruments measured at fair value on a recurring basis 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 available-for-sale. Interest rate swaps. Assets and Liabilities Measured at Fair Value on a Recurring Basis. Assets and liabilities measured at fair value on a recurring basis are summarized below: March 31, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Government-sponsored mortgage-backed securities $ — $ 172,622 $ — $ 172,622 U.S. government guaranteed mortgage-backed securities — 18,954 — 18,954 Corporate bonds — 25,671 — 25,671 State and municipal bonds — 2,992 — 2,992 Government-sponsored enterprise obligations — 24,639 — 24,639 Marketable equity securities 6,518 — — 6,518 Total assets $ 6,518 $ 244,878 $ — $ 251,396 Liabilities: Interest rate swaps $ — $ 1,518 $ — $ 1,518 December 31, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Government-sponsored mortgage-backed securities $ — $ 159,351 $ — $ 159,351 U.S. government guaranteed mortgage-backed securities — 19,338 — 19,338 Corporate bonds — 48,168 — 48,168 State and municipal bonds — 2,944 — 2,944 Government-sponsored enterprise obligations — 23,947 — 23,947 Marketable equity securities 6,408 — — 6,408 Total assets $ 6,408 $ 253,748 $ — $ 260,156 Liabilities: Interest rate swaps $ — $ 1,259 $ — $ 1,259 Assets Measured at Fair Value on a Non-recurring Basis. We may also be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. There were no assets measured at fair value on a non-recurring basis at March 31, 2019 or December 31, 2018. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets at March 31, 2019 and December 31, 2018. Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at the periods indicated. At Three Months Ended March 31, 2019 March 31, 2019 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired loans $ — $ — $ 2,115 $ 130 At Three Months Ended December 31, 2018 March 31, 2018 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired loans $ — $ — $ 1,676 $ 170 The amount of impaired loans represents the carrying value, and net of the related write-down or valuation allowance of impaired loans for which adjustments are based on the estimated fair value of the underlying collateral. The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on real estate appraisals performed by independent licensed or certified appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management will discount appraisals as deemed necessary based on the date of the appraisal and new information deemed relevant to the valuation. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The resulting losses were recognized in earnings through the provision for loan losses. There were no liabilities measured at fair value on a non-recurring basis at March 31, 2019 and December 31, 2018. Summary of Fair Values of Financial Instruments. The estimated fair values of our financial instruments are as follows: March 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 44,482 $ 44,482 $ — $ — $ 44,482 Securities available-for-sale 244,878 — 244,878 — 244,878 Marketable equity securities 6,518 6,518 — — 6,518 Federal Home Loan Bank of Boston and other restricted stock 12,407 — — 12,407 12,407 Loans - net 1,668,787 — — 1,627,630 1,627,630 Accrued interest receivable 5,640 — — 5,640 5,640 Mortgage servicing rights 269 — 416 — 416 Liabilities: Deposits 1,629,834 — — 1,628,896 1,628,896 Short-term borrowings 35,000 — 35,000 — 35,000 Long-term debt 196,039 — 195,575 — 195,575 Accrued interest payable 608 — — 608 608 Derivative liabilities 1,518 — 1,518 — 1,518 December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 26,789 $ 26,789 $ — $ — $ 26,789 Securities available-for-sale 253,748 — 253,748 — 253,748 Marketable equity securities 6,408 6,408 — — 6,408 Federal Home Loan Bank of Boston and other restricted stock 14,695 — — 14,695 14,695 Loans - net 1,684,804 — — 1,631,558 1,631,558 Accrued interest receivable 5,652 — — 5,652 5,652 Mortgage servicing rights 286 — 456 — 456 Liabilities: Deposits 1,595,993 — — 1,592,521 1,592,521 Short-term borrowings 59,250 — 59,247 — 59,247 Long-term debt 208,018 — 206,789 — 206,789 Accrued interest payable 530 — — 530 530 Derivative liabilities 1,259 — 1,259 — 1,259 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | 12. LEASES The Company determines if an arrangement is a lease at inception. Effective in 2019, operating leases are included within other assets and other liabilities in our consolidated balance sheets. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. Additionally, the Company has elected the practical expedient whereby expired leases, existing operating lease classifications and initial direct costs will not be reassessed at inception. The Company has operating leases for certain of our banking offices and ATMs. Our leases have remaining lease terms of one year to 19 years, some of which include options to extend the leases for additional five-year terms up to 15 years. The components of lease expense were as follows: Three Months Ended March 31, 2019 (In thousands) Amortization of right-of-use assets $ 242 Interest on lease liabilities 63 Operating lease cost $ 305 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 292 Supplemental balance sheet information related to leases was as follows: March 31, 2019 (In thousands) Operating lease right-of-use assets $ 6,993 Operating lease liabilities $ 7,005 The weighted average remaining lease term for our operating leases was 11 years with a weighted average discount rate of 3.52% at March 31, 2019. Maturities of the Company’s operating lease liabilities were as follows (in thousands): Years Ending December 31, 2019 $ 836 2020 995 2021 916 2022 887 2023 700 Thereafter 4,333 Total lease payments 8,667 Less imputed interest (1,662 ) Total $ 7,005 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 13. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, Leases 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 Premium Amortization on Purchased Callable Debt Securities In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging Targeted Improvements to Accounting for Hedging Activities In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The Bank’s deposits are insured up to the maximum Federal Deposit Insurance Corporation (“FDIC”) coverage limits. The Bank operates 22 banking offices in western Massachusetts and northern Connecticut, and its primary sources of revenue are interest income from loans as well as interest income from investment securities. |
Wholly-owned Subsidiaries | Wholly-owned Subsidiaries |
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, 2018, included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Annual Report”). |
Reclassifications | Reclassifications. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share, Basic [Abstract] | |
Schedule of earnings per common share | Earnings per common share have been computed based on the following: Three Months Ended March 31, 2019 2018 (In thousands, except per share data) Net income applicable to common stock $ 3,430 $ 3,519 Average number of common shares issued 27,834 30,358 Less: Average unallocated ESOP Shares (700 ) (791 ) Less: Average unvested equity incentive plan shares (96 ) (82 ) Average number of common shares outstanding used to calculate basic earnings per common share 27,038 29,485 Effect of dilutive equity incentive plan 79 35 Effect of dilutive stock options 36 101 Average number of common shares outstanding used to calculate diluted earnings per common share 27,153 29,621 Basic earnings per share $ 0.13 $ 0.12 Diluted earnings per share $ 0.13 $ 0.12 |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 (In thousands) Net unrealized losses on securities available-for-sale $ (5,585 ) $ (9,891 ) Tax effect 1,378 2,491 Net-of-tax amount (4,207 ) (7,400 ) Fair value of derivatives used for cash flow hedges (1,518 ) (1,259 ) Termination fee on cancelled cash flow hedges (2,332 ) (2,595 ) Total derivatives (3,850 ) (3,854 ) Tax effect 1,083 1,084 Net-of-tax amount (2,767 ) (2,770 ) Unrecognized actuarial loss on the defined benefit plan (4,484 ) (4,516 ) Tax effect 1,261 1,270 Net-of-tax amount (3,223 ) (3,246 ) Accumulated other comprehensive loss $ (10,197 ) $ (13,416 ) |
Schedule of changes in accumulated other loss by component | The following table presents changes in accumulated other comprehensive loss for the periods ended March 31, 2019 and 2018 by component: Securities Derivatives Defined Benefit Plan Accumulated Other Comprehensive Loss (In thousands) Balance at December 31, 2017 $ (4,042 ) $ (4,181 ) $ (4,329 ) $ (12,552 ) Cumulative-effect adjustment due to change in accounting 237 — — 237 Current-period other comprehensive (loss) income (3,608 ) 800 41 (2,767 ) Balance at March 31, 2018 $ (7,413 ) $ (3,381 ) $ (4,288 ) $ (15,082 ) Balance at December 31, 2018 $ (7,400 ) $ (2,770 ) $ (3,246 ) $ (13,416 ) Cumulative-effect adjustment due to change in accounting 7 — — 7 Current-period other comprehensive income 3,186 3 23 3,212 Balance at March 31, 2019 $ (4,207 ) $ (2,767 ) $ (3,223 ) $ (10,197 ) |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities available for sale | Securities available-for-sale are summarized as follows: March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 25,150 $ — $ (511 ) $ 24,639 State and municipal bonds 2,965 38 (11 ) 2,992 Corporate bonds 26,060 — (389 ) 25,671 Total debt securities 54,175 38 (911 ) 53,302 Mortgage-backed securities: Government-sponsored mortgage-backed securities 176,696 103 (4,177 ) 172,622 U.S. government guaranteed mortgage-backed securities 19,592 19 (657 ) 18,954 Total mortgage-backed securities 196,288 122 (4,834 ) 191,576 Total available-for-sale $ 250,463 $ 160 $ (5,745 ) $ 244,878 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 25,150 $ — $ (1,203 ) $ 23,947 State and municipal bonds 2,976 33 (65 ) 2,944 Corporate bonds 49,819 — (1,651 ) 48,168 Total debt securities 77,945 33 (2,919 ) 75,059 Mortgage-backed securities: Government-sponsored mortgage-backed securities 165,605 1 (6,255 ) 159,351 U.S. government guaranteed mortgage-backed securities 20,089 1 (752 ) 19,338 Total mortgage-backed securities 185,694 2 (7,007 ) 178,689 Total available-for-sale $ 263,639 $ 35 $ (9,926 ) $ 253,748 |
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 March 31, 2019, by final maturity, are shown below. March 31, 2019 Amortized Cost Fair Value (In thousands) Available-for-sale securities: Debt securities:: Due in one year or less $ 240 $ 240 Due after one year through five years 29,482 29,003 Due after five years through ten years 17,715 17,440 Due after ten years 6,738 6,619 Total debt securities 54,175 53,302 Mortgage-backed securities 196,288 191,576 Total available-for-sale securities $ 250,463 $ 244,878 |
Schedule of gross realized gains and losses on sales of securities available for sale | Gross realized gains and losses on securities available-for-sale for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (In thousands) Gross gains realized $ 35 $ — Gross losses realized — (201 ) Net loss realized $ 35 $ (201 ) |
Schedule of securities with gross unrealized losses in continuous loss position | Information pertaining to securities with gross unrealized losses at March 31, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: March 31, 2019 Less Than 12 Months Over 12 Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value (In thousands) Available-for-sale: Government-sponsored mortgage-backed securities $ 12 $ 1,044 $ 4,165 $ 146,695 U.S. government guaranteed mortgage-backed securities — — 657 15,414 Corporate bonds — — 389 25,671 State and municipal bonds — — 11 1,576 Government-sponsored enterprise obligations — — 511 24,639 Total available-for-sale $ 12 $ 1,044 $ 5,733 $ 213,995 December 31, 2018 Less Than 12 Months Over 12 Months Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value (In thousands) Available-for-sale: Government-sponsored mortgage-backed securities $ 74 $ 7,354 $ 6,181 $ 148,762 U.S. government guaranteed mortgage-backed securities 15 2,829 737 14,669 Corporate bonds 110 9,995 1,541 38,173 State and municipal bonds — — 65 1,532 Government-sponsored enterprise obligations — — 1,203 23,947 Total available-for-sale $ 199 $ 20,178 $ 9,727 $ 227,083 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of loans | Major classifications of loans at the periods indicated were as follows: March 31, December 31, 2019 2018 (In thousands) Commercial real estate $ 770,776 $ 768,881 Residential real estate: Residential 1-4 family 575,561 577,641 Home equity 95,997 97,238 Commercial and industrial 228,709 243,493 Consumer 5,270 5,203 Total gross loans 1,676,313 1,692,456 Premiums and deferred loan fees and costs, net 4,353 4,401 Allowance for loan losses (11,879 ) (12,053 ) Net loans $ 1,668,787 $ 1,684,804 |
Schedule of mortgage servicing rights | A summary of the activity in the balances of mortgage servicing rights follows: Three Months Ended March 31, 2019 2018 (In thousands) Balance at the beginning of year: $ 286 $ 352 Capitalized mortgage servicing rights — — Amortization (17 ) (17 ) Balance at the end of period $ 269 $ 335 Fair value at the end of period $ 416 $ 537 |
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 three months ended March 31, 2019 and 2018 is as follows: Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer Unallocated Total (In thousands) Balance at December 31, 2017 $ 4,712 $ 3,311 $ 2,733 $ 71 $ 4 $ 10,831 Provision (credit) 452 71 (59 ) 25 11 500 Charge-offs — — — (36 ) — (36 ) Recoveries 35 15 7 18 — 75 Balance at March 31, 2018 $ 5,199 $ 3,397 $ 2,681 $ 78 $ 15 $ 11,370 Balance at December 31, 2018 $ 5,260 $ 3,556 $ 3,114 $ 135 $ (12 ) $ 12,053 Provision (credit) 24 108 (127 ) 28 17 50 Charge-offs (116 ) (94 ) (37 ) (46 ) — (293 ) Recoveries 37 1 4 27 — 69 Balance at March 31, 2019 $ 5,205 $ 3,571 $ 2,954 $ 144 $ 5 $ 11,879 |
Schedule of information pertaining to the allowance for loan losses by segment | The following table presents information pertaining to the allowance for loan losses by segment for the dates indicated: Commercial Residential Commercial Consumer Unallocated Total (In thousands) March 31, 2019 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 5,205 3,571 2,954 144 5 11,879 Total allowance for loan losses $ 5,205 $ 3,571 $ 2,954 $ 144 $ 5 $ 11,879 Impaired loans $ 7,156 $ 4,041 $ 3,300 $ 53 $ — $ 14,550 Non-impaired loans 753,175 664,340 224,530 5,217 — 1,647,262 Impaired loans acquired with deteriorated credit quality 10,445 3,177 879 — — 14,501 Total loans $ 770,776 $ 671,558 $ 228,709 $ 5,270 $ — $ 1,676,313 December 31, 2018 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 5,260 3,556 3,114 135 (12 ) 12,053 Total allowance for loan losses $ 5,260 $ 3,556 $ 3,114 $ 135 $ (12 ) $ 12,053 Impaired loans $ 5,237 $ 4,754 $ 2,345 $ 60 $ — $ 12,396 Non-impaired loans 752,770 666,883 240,235 5,143 — 1,665,031 Impaired loans acquired with deteriorated credit quality 10,874 3,242 913 — — 15,029 Total loans $ 768,881 $ 674,879 $ 243,493 $ 5,203 $ — $ 1,692,456 |
Schedule of past due and nonaccrual loans by class | The following tables present an age analysis of past due loans as of the dates indicated: 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Total Current Loans Total Loans Non-Accrual Loans (In thousands) March 31, 2019 Commercial real estate $ 3,238 $ 2,327 $ 2,890 $ 8,455 $ 762,321 $ 770,776 $ 6,547 Residential real estate: Residential 1,513 378 3,199 5,090 570,471 575,561 4,945 Home equity 301 — 197 498 95,499 95,997 369 Commercial and industrial 305 357 301 963 227,746 228,709 3,399 Consumer 77 17 3 97 5,173 5,270 52 Total loans $ 5,434 $ 3,079 $ 6,590 $ 15,103 $ 1,661,210 $ 1,676,313 $ 15,312 December 31, 2018 Commercial real estate $ 1,857 $ — $ 2,865 $ 4,722 $ 764,159 $ 768,881 $ 4,701 Residential real estate: Residential 1,798 572 1,879 4,249 573,392 577,641 5,856 Home equity 600 5 242 847 96,391 97,238 391 Commercial and industrial 794 1,463 305 2,562 240,931 243,493 2,476 Consumer 93 1 21 115 5,088 5,203 60 Total loans $ 5,142 $ 2,041 $ 5,312 $ 12,495 $ 1,679,961 $ 1,692,456 $ 13,484 |
Schedule of impaired loans by class | The following is a summary of impaired loans by class: Three Months Ended At March 31, 2019 March 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest (In thousands) Impaired Loans (1) Commercial real estate $ 17,601 $ 20,722 $ — $ 16,856 $ 131 Residential real estate 6,823 7,900 — 7,190 44 Home equity 395 445 — 417 — Commercial and industrial 4,179 8,782 — 3,718 37 Consumer 53 64 — 57 — Total impaired loans $ 29,051 $ 37,913 $ — $ 28,238 $ 212 Three Months Ended At December 31, 2018 March 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest (In thousands) Impaired Loans (1) Commercial real estate $ 16,111 $ 19,081 $ — $ 15,404 $ 190 Residential real estate 7,558 8,614 — 6,578 10 Home equity 438 468 737 1 Commercial and industrial 3,258 7,788 — 3,990 44 Consumer 60 70 108 — Total impaired loans $ 27,425 $ 36,021 $ — $ 26,817 $ 245 (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 in the Chicopee Bancorp, Inc. (“Chicopee”) acquisition with evidence of credit deterioration as of March 31, 2019 and 2018. Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2018 $ 24,793 $ 19,883 $ 4,910 $ 4,854 $ 15,029 Collections (702 ) (646 ) (56 ) (158 ) (488 ) Dispositions (71 ) (71 ) — (31 ) (40 ) Balance at March 31, 2019 $ 24,020 $ 19,166 $ 4,854 $ 4,665 $ 14,501 Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2017 $ 29,362 $ 23,158 $ 6,204 $ 6,033 $ 17,125 Collections (1,412 ) (1,194 ) (218 ) (175 ) (1,019 ) Balance at March 31, 2018 $ 27,950 $ 21,964 $ 5,986 $ 5,858 $ 16,106 |
Schedule of loans by risk rating | The following table presents our loans by risk rating for the periods indicated: Commercial Real Estate Residential 1-4 Family Home Equity Commercial and Industrial Consumer Total (In thousands) March 31, 2019 Pass (Rated 1 – 4) $ 732,542 $ 569,124 $ 95,422 $ 191,580 $ 5,218 $ 1,593,886 Special Mention (Rated 5) 16,101 — — 7,802 — 23,903 Substandard (Rated 6) 22,133 6,437 575 29,327 52 58,524 Total $ 770,776 $ 575,561 $ 95,997 $ 228,709 $ 5,270 $ 1,676,313 December 31, 2018 Pass (Rated 1 – 4) $ 732,729 $ 570,428 $ 96,643 $ 207,663 $ 5,143 $ 1,612,606 Special Mention (Rated 5) 17,929 — — 12,248 — 30,177 Substandard (Rated 6) 18,223 7,213 595 23,582 60 49,673 Total $ 768,881 $ 577,641 $ 97,238 $ 243,493 $ 5,203 $ 1,692,456 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | A summary of stock option activity for the three months ended March 31, 2019 is presented below: Shares Weighted Average Exercise Price Weighted Aggregate Outstanding at December 31, 2018 238,075 $ 6.33 3.44 $ 877 Exercised (12,550 ) 5.12 0.74 60 Outstanding at March 31, 2019 225,525 $ 6.40 3.33 $ 633 Exercisable at March 31, 2019 225,525 $ 6.40 3.33 $ 633 |
Schedule of original and adjusted threshold and target metrics | The original and adjusted threshold and target metrics under the 2016 LTI Plan 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 for 2019 under the 2017 LTI Plan are as follows: Return on Equity Metrics Performance Period Ending Original Threshold Adjusted Threshold Original Target Adjusted Target Original Maximum Adjusted Maximum December 31, 2019 6.50% 7.09 % 7.20 % 7.85 % 7.90 % 8.61 % The threshold, target and stretch metrics under the 2018 LTI Plan are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2019 6.85 % 7.35 % 7.75 % December 31, 2020 7.40 % 7.90 % 8.30 % The threshold, target and stretch metrics under the 2019 LTI Plan are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2019 5.75 % 6.13 % 7.00 % December 31, 2020 6.00 % 6.75 % 7.75 % December 31, 2021 6.25 % 7.00 % 8.00 % |
Schedule of stock award plan activity | A summary of the status of restricted stock awards at March 31, 2019 is presented below: Shares Weighted Average Balance at December 31, 2018 155,712 $ 9.87 Shares granted 108,718 9.77 Shares vested (53,465 ) 8.75 Balance at March 31, 2019 210,965 $ 10.10 |
PENSION BENEFITS (Tables)
PENSION BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (In thousands) Service cost $ 274 $ 303 Interest cost 284 253 Expected return on assets (308 ) (347 ) Amortization of actuarial loss 32 57 Net periodic pension cost $ 282 $ 266 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018. March 31, 2019 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swaps Other Assets $ — Other Liabilities $ 1,518 December 31, 2018 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swaps Other Assets $ — Other Liabilities $ 1,259 |
Schedule of information about cash flow hedges | The following table presents information about our cash flow hedges at March 31, 2019 and December 31, 2018: March 31, 2019 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 $ 35,000 3.5 2.61 % 3.54 % $ (1,518 ) December 31, 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 $ 35,000 3.7 2.79 % 3.54 % $ (1,259 ) |
Schedule of pre-tax net losses of cash flow hedges | The table below presents the pre-tax net gains (losses) of our cash flow hedges for the periods indicated. Amount of Gain (Loss) Recognized in OCI on Derivative Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps $ (328 ) $ 678 |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Government-sponsored mortgage-backed securities $ — $ 172,622 $ — $ 172,622 U.S. government guaranteed mortgage-backed securities — 18,954 — 18,954 Corporate bonds — 25,671 — 25,671 State and municipal bonds — 2,992 — 2,992 Government-sponsored enterprise obligations — 24,639 — 24,639 Marketable equity securities 6,518 — — 6,518 Total assets $ 6,518 $ 244,878 $ — $ 251,396 Liabilities: Interest rate swaps $ — $ 1,518 $ — $ 1,518 December 31, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Government-sponsored mortgage-backed securities $ — $ 159,351 $ — $ 159,351 U.S. government guaranteed mortgage-backed securities — 19,338 — 19,338 Corporate bonds — 48,168 — 48,168 State and municipal bonds — 2,944 — 2,944 Government-sponsored enterprise obligations — 23,947 — 23,947 Marketable equity securities 6,408 — — 6,408 Total assets $ 6,408 $ 253,748 $ — $ 260,156 Liabilities: Interest rate swaps $ — $ 1,259 $ — $ 1,259 |
Schedule of assets measured at fair value on non-recurring basis | The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets at March 31, 2019 and December 31, 2018. Total losses represent the change in carrying value as a result of fair value adjustments related to assets still held at the periods indicated. At Three Months Ended March 31, 2019 March 31, 2019 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired loans $ — $ — $ 2,115 $ 130 At Three Months Ended December 31, 2018 March 31, 2018 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired loans $ — $ — $ 1,676 $ 170 |
Schedule of estimated fair values of financial instruments | The estimated fair values of our financial instruments are as follows: March 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 44,482 $ 44,482 $ — $ — $ 44,482 Securities available-for-sale 244,878 — 244,878 — 244,878 Marketable equity securities 6,518 6,518 — — 6,518 Federal Home Loan Bank of Boston and other restricted stock 12,407 — — 12,407 12,407 Loans - net 1,668,787 — — 1,627,630 1,627,630 Accrued interest receivable 5,640 — — 5,640 5,640 Mortgage servicing rights 269 — 416 — 416 Liabilities: Deposits 1,629,834 — — 1,628,896 1,628,896 Short-term borrowings 35,000 — 35,000 — 35,000 Long-term debt 196,039 — 195,575 — 195,575 Accrued interest payable 608 — — 608 608 Derivative liabilities 1,518 — 1,518 — 1,518 December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 26,789 $ 26,789 $ — $ — $ 26,789 Securities available-for-sale 253,748 — 253,748 — 253,748 Marketable equity securities 6,408 6,408 — — 6,408 Federal Home Loan Bank of Boston and other restricted stock 14,695 — — 14,695 14,695 Loans - net 1,684,804 — — 1,631,558 1,631,558 Accrued interest receivable 5,652 — — 5,652 5,652 Mortgage servicing rights 286 — 456 — 456 Liabilities: Deposits 1,595,993 — — 1,592,521 1,592,521 Short-term borrowings 59,250 — 59,247 — 59,247 Long-term debt 208,018 — 206,789 — 206,789 Accrued interest payable 530 — — 530 530 Derivative liabilities 1,259 — 1,259 — 1,259 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Schedule of lease expense | The components of lease expense were as follows: Three Months Ended March 31, 2019 (In thousands) Amortization of right-of-use assets $ 242 Interest on lease liabilities 63 Operating lease cost $ 305 |
Schedule of supplemental information related to leases | Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 292 Supplemental balance sheet information related to leases was as follows: March 31, 2019 (In thousands) Operating lease right-of-use assets $ 6,993 Operating lease liabilities $ 7,005 |
Schedule of maturities of operating lease liabilities | Maturities of the Company’s operating lease liabilities were as follows (in thousands): Years Ending December 31, 2019 $ 836 2020 995 2021 916 2022 887 2023 700 Thereafter 4,333 Total lease payments 8,667 Less imputed interest (1,662 ) Total $ 7,005 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Mar. 31, 2019Number |
Massachusetts and Granby and Enfield, Connecticut [Member] | |
Number of banking offices in which bank operates | 22 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings per common share: | ||
Net income applicable to common stock | $ 3,430 | $ 3,519 |
Average number of common shares issued | 27,834,000 | 30,358,000 |
Less: Average unallocated ESOP Shares | (700,000) | (791,000) |
Less: Average unvested equity incentive plan shares | (96,000) | (82,000) |
Average number of common shares outstanding used to calculate basic earnings per common share | 27,037,520 | 29,484,824 |
Effect of dilutive equity incentive plan | 79,000 | 35,000 |
Effect of dilutive stock options | 36,000 | 101,000 |
Average number of common shares outstanding used to calculate diluted earnings per common share | 27,153,160 | 29,620,929 |
Basic earnings per share (in dollars per share) | $ 0.13 | $ 0.12 |
Diluted earnings per share (in dollars per share) | $ 0.13 | $ 0.12 |
COMPREHENSIVE INCOME (LOSS) (De
COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), net of tax amount | $ (10,197) | $ (13,416) | $ (15,082) | $ (12,552) |
Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) before tax | (5,585) | (9,891) | ||
Tax effect | 1,378 | 2,491 | ||
Accumulated other comprehensive income (loss), net of tax amount | (4,207) | (7,400) | (7,413) | (4,042) |
Derivatives [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Fair value of derivatives used for cash flow hegdes | (1,518) | (1,259) | ||
Derivative Termination fee on cancelled cash flow hedges | (2,332) | (2,595) | ||
Accumulated other comprehensive income (loss) before tax | (3,850) | (3,854) | ||
Tax effect | 1,083 | 1,084 | ||
Accumulated other comprehensive income (loss), net of tax amount | (2,767) | (2,770) | (3,381) | (4,181) |
Defined Benefit Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) before tax | (4,484) | (4,516) | ||
Tax effect | 1,261 | 1,270 | ||
Accumulated other comprehensive income (loss), net of tax amount | $ (3,223) | $ (3,246) | $ (4,288) | $ (4,329) |
COMPREHENSIVE INCOME (LOSS) (_2
COMPREHENSIVE INCOME (LOSS) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (13,416) | $ (12,552) |
Cumulative-effect adjustment due to change in accounting principle | 7 | 237 |
Current-period other comprehensive (loss) income | 3,212 | (2,767) |
Ending balance | (10,197) | (15,082) |
Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (7,400) | (4,042) |
Cumulative-effect adjustment due to change in accounting principle | 237 | |
Current-period other comprehensive (loss) income | 3,186 | (3,608) |
Ending balance | (4,207) | (7,413) |
Derivatives [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (2,770) | (4,181) |
Current-period other comprehensive (loss) income | 3 | 800 |
Ending balance | (2,767) | (3,381) |
Defined Benefit Plan [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (3,246) | (4,329) |
Current-period other comprehensive (loss) income | 23 | (12) |
Ending balance | $ (3,223) | $ (4,288) |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale securities: | ||
Amortized Cost | $ 250,463 | $ 263,639 |
Gross Unrealized Gains | 160 | 35 |
Gross Unrealized Losses | (5,745) | (9,926) |
Fair Value | 244,878 | 253,748 |
Government-Sponsored Enterprise Obligations [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 25,150 | 25,150 |
Gross Unrealized Losses | (511) | (1,203) |
Fair Value | 24,639 | 23,947 |
State And Municipal Bonds [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 2,965 | 2,976 |
Gross Unrealized Gains | 38 | 33 |
Gross Unrealized Losses | (11) | (65) |
Fair Value | 2,992 | 2,944 |
Corporate Bonds [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 26,060 | 49,819 |
Gross Unrealized Losses | (389) | (1,651) |
Fair Value | 25,671 | 48,168 |
Debt Securities [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 54,175 | 77,945 |
Gross Unrealized Gains | 38 | 33 |
Gross Unrealized Losses | (911) | (2,919) |
Fair Value | 53,302 | 75,059 |
Collateralized Mortgage Backed Securities [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 196,288 | 185,694 |
Gross Unrealized Gains | 122 | 2 |
Gross Unrealized Losses | (4,834) | (7,007) |
Fair Value | 191,576 | 178,689 |
Government-Sponsored Mortgage-Backed Securities [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 176,696 | 165,605 |
Gross Unrealized Gains | 103 | 1 |
Gross Unrealized Losses | (4,177) | (6,255) |
Fair Value | 172,622 | 159,351 |
US Government Guaranteed Mortgage-Backed Securities [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 19,592 | 20,089 |
Gross Unrealized Gains | 19 | 1 |
Gross Unrealized Losses | (657) | (752) |
Fair Value | $ 18,954 | $ 19,338 |
SECURITIES (Details 1)
SECURITIES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Total | $ 250,463 | $ 263,639 |
Available for Sale Securities, Fair Value, Total | 244,878 | |
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 | 29,482 | |
Available for Sale Securities, Amortized Cost, Due after five years through ten years | 17,715 | |
Available for Sale Securities, Amortized Cost, Due after ten years | 6,738 | |
Available for Sale Securities, Amortized Cost, Total | 54,175 | |
Available for Sale Securities, Fair Value, Due in one year or less | 240 | |
Available for Sale Securities, Fair Value, Due after one year through five years | 29,003 | |
Available for Sale Securities, Fair Value, Due after five years through ten years | 17,440 | |
Available for Sale Securities, Fair Value, Due after ten years | 6,619 | |
Available for Sale Securities, Fair Value, Total | 53,302 | |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale Securities, Amortized Cost, Total | 196,288 | $ 185,694 |
Available for Sale Securities, Fair Value, Total | $ 191,576 |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross gains realized | $ 35 | |
Gross losses realized | $ (201) | |
Net gain realized | $ 35 | $ (201) |
SECURITIES (Details 3)
SECURITIES (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available for sale, Less Than 12 Months Gross Unrealized Losses | $ 12 | $ 199 |
Available for sale, Less Than 12 Months Fair Value | 1,044 | 20,178 |
Available for sale, Over 12 Months Gross Unrealized Losses | 5,733 | 9,727 |
Available for sale, Over 12 Months Fair Value | 213,995 | 227,083 |
Government-Sponsored Mortgage-Backed Securities [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 12 | 74 |
Available for sale, Less Than 12 Months Fair Value | 1,044 | 7,354 |
Available for sale, Over 12 Months Gross Unrealized Losses | 4,165 | 6,181 |
Available for sale, Over 12 Months Fair Value | 146,695 | 148,762 |
Corporate Bonds [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 110 | |
Available for sale, Less Than 12 Months Fair Value | 9,995 | |
Available for sale, Over 12 Months Gross Unrealized Losses | 389 | 1,541 |
Available for sale, Over 12 Months Fair Value | 25,671 | 38,173 |
States and Municipal Bonds [Member] | ||
Available for sale, Over 12 Months Gross Unrealized Losses | 11 | 65 |
Available for sale, Over 12 Months Fair Value | 1,576 | 1,532 |
Government-Sponsored Enterprise Obligations [Member] | ||
Available for sale, Over 12 Months Gross Unrealized Losses | 511 | 1,203 |
Available for sale, Over 12 Months Fair Value | 24,639 | 23,947 |
US Government Guaranteed Mortgage-Backed Securities [Member] | ||
Available for sale, Less Than 12 Months Gross Unrealized Losses | 15 | |
Available for sale, Less Than 12 Months Fair Value | 2,829 | |
Available for sale, Over 12 Months Gross Unrealized Losses | 657 | 737 |
Available for sale, Over 12 Months Fair Value | $ 15,414 | $ 14,669 |
SECURITIES (Details Narrative)
SECURITIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Cumulative-effect adjustment due to change in accounting principle | $ 7 | $ 237 | |
Proceeds from redemptions and sales | 21,642 | 5,635 | |
Investments in restricted stock | 12,407 | $ 14,695 | |
Government-Sponsored Enterprise Obligations [Member] | |||
Fair value of collateralized public deposits | 6,900 | ||
Collateralized Mortgage Backed Securities [Member] | |||
Fair value of collateralized public deposits | 54,500 | ||
Securities [Member] | |||
Cumulative-effect adjustment due to change in accounting principle | $ 237 | ||
Securities [Member] | Accounting Standards Update (ASU) 2017-08 [Member] | |||
Cumulative-effect adjustment due to change in accounting principle | $ 7 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | $ 1,676,313 | $ 1,692,456 | ||
Premiums and deferred loan fees and costs, net | 4,353 | 4,401 | ||
Allowance for loan losses | (11,879) | (12,053) | $ (11,370) | $ (10,831) |
Net loans | 1,668,787 | 1,684,804 | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 770,776 | 768,881 | ||
Allowance for loan losses | (5,205) | (5,260) | (5,199) | (4,712) |
Residential Real Estate - Residential 1-4 Family [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 575,561 | 577,641 | ||
Residential Real Estate - Home Equity [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 95,997 | 97,238 | ||
Commercial And Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 228,709 | 243,493 | ||
Allowance for loan losses | (2,954) | (3,114) | (2,681) | (2,733) |
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 5,270 | 5,203 | ||
Allowance for loan losses | $ (144) | $ (135) | $ (78) | $ (71) |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Servicing Asset | ||
Balance at the beginning of period: | $ 286 | $ 352 |
Amortization | (17) | (17) |
Balance at the end of year | 269 | 335 |
Fair value at the end of year | $ 416 | $ 537 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Beginning Balance | $ 12,053 | $ 10,831 |
Provision (credit) | 50 | 500 |
Charge-offs | (293) | (36) |
Recoveries | 69 | 75 |
Ending Balance | 11,879 | 11,370 |
Commercial Real Estate [Member] | ||
Beginning Balance | 5,260 | 4,712 |
Provision (credit) | 24 | 452 |
Charge-offs | (116) | |
Recoveries | 37 | 35 |
Ending Balance | 5,205 | 5,199 |
Residential Real Estate [Member] | ||
Beginning Balance | 3,556 | 3,311 |
Provision (credit) | 108 | 71 |
Charge-offs | (94) | |
Recoveries | 1 | 15 |
Ending Balance | 3,571 | 3,397 |
Commercial And Industrial [Member] | ||
Beginning Balance | 3,114 | 2,733 |
Provision (credit) | (127) | (59) |
Charge-offs | (37) | |
Recoveries | 4 | 7 |
Ending Balance | 2,954 | 2,681 |
Consumer [Member] | ||
Beginning Balance | 135 | 71 |
Provision (credit) | 28 | 25 |
Charge-offs | (46) | (36) |
Recoveries | 27 | 18 |
Ending Balance | 144 | 78 |
Unallocated [Member] | ||
Beginning Balance | (12) | 4 |
Provision (credit) | 17 | 11 |
Ending Balance | $ 5 | $ 15 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Amount of allowance for non-impaired loans | $ 11,879 | $ 12,053 | ||
Total allowance for loan losses | 11,879 | 12,053 | $ 11,370 | $ 10,831 |
Impaired loans | 14,550 | 12,396 | ||
Non-impaired loans | 1,647,262 | 1,665,031 | ||
Impaired loans acquired with deteriorated credit quality | 14,501 | 15,029 | ||
Total loans | 1,676,313 | 1,692,456 | ||
Commercial Real Estate [Member] | ||||
Amount of allowance for non-impaired loans | 5,205 | 5,260 | ||
Total allowance for loan losses | 5,205 | 5,260 | 5,199 | 4,712 |
Impaired loans | 7,156 | 5,237 | ||
Non-impaired loans | 753,175 | 752,770 | ||
Impaired loans acquired with deteriorated credit quality | 10,445 | 10,874 | ||
Total loans | 770,776 | 768,881 | ||
Residential Real Estate [Member] | ||||
Amount of allowance for non-impaired loans | 3,571 | 3,556 | ||
Total allowance for loan losses | 3,571 | 3,556 | 3,397 | 3,311 |
Impaired loans | 4,041 | 4,754 | ||
Non-impaired loans | 664,340 | 666,883 | ||
Impaired loans acquired with deteriorated credit quality | 3,177 | 3,242 | ||
Total loans | 671,558 | 674,879 | ||
Commercial And Industrial [Member] | ||||
Amount of allowance for non-impaired loans | 2,954 | 3,114 | ||
Total allowance for loan losses | 2,954 | 3,114 | 2,681 | 2,733 |
Impaired loans | 3,300 | 2,345 | ||
Non-impaired loans | 224,530 | 240,235 | ||
Impaired loans acquired with deteriorated credit quality | 879 | 913 | ||
Total loans | 228,709 | 243,493 | ||
Consumer [Member] | ||||
Amount of allowance for non-impaired loans | 144 | 135 | ||
Total allowance for loan losses | 144 | 135 | 78 | 71 |
Impaired loans | 53 | 60 | ||
Non-impaired loans | 5,217 | 5,143 | ||
Total loans | 5,270 | 5,203 | ||
Unallocated [Member] | ||||
Amount of allowance for non-impaired loans | 5 | (12) | ||
Total allowance for loan losses | $ 5 | $ (12) | $ 15 | $ 4 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total Past Due | $ 15,103 | $ 12,495 |
Total Current Loans | 1,661,210 | 1,679,961 |
Total loans | 1,676,313 | 1,692,456 |
Non-Accrual Loans | 15,312 | 13,484 |
30-59 Days Past Due [Member] | ||
Total Past Due | 5,434 | 5,142 |
60 - 89 Days Past Due [Member] | ||
Total Past Due | 3,079 | 2,041 |
Greater than 90 Days Past Due [Member] | ||
Total Past Due | 6,590 | 5,312 |
Commercial Real Estate [Member] | ||
Total Past Due | 8,455 | 4,722 |
Total Current Loans | 762,321 | 764,159 |
Total loans | 770,776 | 768,881 |
Non-Accrual Loans | 6,547 | 4,701 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 3,238 | 1,857 |
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Total Past Due | 2,327 | |
Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Total Past Due | 2,890 | 2,865 |
Residential Real Estate - Residential 1-4 Family [Member] | ||
Total Past Due | 5,090 | 4,249 |
Total Current Loans | 570,471 | 573,392 |
Total loans | 575,561 | 577,641 |
Non-Accrual Loans | 4,945 | 5,856 |
Residential Real Estate - Residential 1-4 Family [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 1,513 | 1,798 |
Residential Real Estate - Residential 1-4 Family [Member] | 60 - 89 Days Past Due [Member] | ||
Total Past Due | 378 | 572 |
Residential Real Estate - Residential 1-4 Family [Member] | Greater than 90 Days Past Due [Member] | ||
Total Past Due | 3,199 | 1,879 |
Residential Real Estate - Home Equity [Member] | ||
Total Past Due | 498 | 847 |
Total Current Loans | 95,499 | 96,391 |
Total loans | 95,997 | 97,238 |
Non-Accrual Loans | 369 | 391 |
Residential Real Estate - Home Equity [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 301 | 600 |
Residential Real Estate - Home Equity [Member] | 60 - 89 Days Past Due [Member] | ||
Total Past Due | 5 | |
Residential Real Estate - Home Equity [Member] | Greater than 90 Days Past Due [Member] | ||
Total Past Due | 197 | 242 |
Commercial And Industrial [Member] | ||
Total Past Due | 963 | 2,562 |
Total Current Loans | 227,746 | 240,931 |
Total loans | 228,709 | 243,493 |
Non-Accrual Loans | 3,399 | 2,476 |
Commercial And Industrial [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 305 | 794 |
Commercial And Industrial [Member] | 60 - 89 Days Past Due [Member] | ||
Total Past Due | 357 | 1,463 |
Commercial And Industrial [Member] | Greater than 90 Days Past Due [Member] | ||
Total Past Due | 301 | 305 |
Consumer [Member] | ||
Total Past Due | 97 | 115 |
Total Current Loans | 5,173 | 5,088 |
Total loans | 5,270 | 5,203 |
Non-Accrual Loans | 52 | 60 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Total Past Due | 77 | 93 |
Consumer [Member] | 60 - 89 Days Past Due [Member] | ||
Total Past Due | 17 | 1 |
Consumer [Member] | Greater than 90 Days Past Due [Member] | ||
Total Past Due | $ 3 | $ 21 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Total Impaired loans: | ||||
Recorded Investment | [1] | $ 29,051 | $ 27,425 | |
Unpaid Principal Balance | [1] | 37,913 | 36,021 | |
Average Recorded Investment | [1] | 28,238 | $ 26,817 | |
Interest Income Recognized | [1] | 212 | 245 | |
Commercial Real Estate [Member] | ||||
Total Impaired loans: | ||||
Recorded Investment | [1] | 17,601 | 16,111 | |
Unpaid Principal Balance | [1] | 20,722 | 19,081 | |
Average Recorded Investment | [1] | 16,856 | 15,404 | |
Interest Income Recognized | [1] | 131 | 190 | |
Residential Real Estate [Member] | ||||
Total Impaired loans: | ||||
Recorded Investment | [1] | 6,823 | 7,558 | |
Unpaid Principal Balance | [1] | 7,900 | 8,614 | |
Average Recorded Investment | [1] | 7,190 | 6,578 | |
Interest Income Recognized | [1] | 44 | 10 | |
Residential Real Estate - Home Equity [Member] | ||||
Total Impaired loans: | ||||
Recorded Investment | [1] | 395 | 438 | |
Unpaid Principal Balance | [1] | 445 | 468 | |
Average Recorded Investment | [1] | 417 | 737 | |
Interest Income Recognized | [1] | 1 | ||
Commercial And Industrial [Member] | ||||
Total Impaired loans: | ||||
Recorded Investment | [1] | 4,179 | 3,258 | |
Unpaid Principal Balance | [1] | 8,782 | 7,788 | |
Average Recorded Investment | [1] | 3,718 | 3,990 | |
Interest Income Recognized | [1] | 37 | 44 | |
Consumer [Member] | ||||
Total Impaired loans: | ||||
Recorded Investment | [1] | 53 | 60 | |
Unpaid Principal Balance | [1] | 64 | $ 70 | |
Average Recorded Investment | [1] | $ 57 | $ 108 | |
[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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Loans receivable - Contractual Required Payments Receivable beginning | $ 24,793 | $ 29,362 |
Collections - Contractually Required Payments Receivable | (702) | (1,412) |
Dispositions - Contractually Required Payments Receivable | (71) | 27,950 |
Loans receivable - Contractual Required Payments Receivable ending | 24,020 | |
Loans receivable - Cash Expected To Be Collected beginning | 19,883 | 23,158 |
Collections - Cash Expected to be Collected | (646) | (1,194) |
Dispositions - Cash Expected to be Collected | (71) | |
Loans receivable - Cash Expected To Be Collected ending | 19,166 | 21,964 |
Loans receivable - Non-Accretable Discount beginning | 4,910 | 6,204 |
Collections - Non-Accretable DIscount | (56) | (218) |
Loans receivable - Non-Accretable Discount ending | 4,854 | 5,986 |
Loans receivable - Accretable Yield beginning | 4,854 | 6,033 |
Collections - Accretable Yield | (158) | (175) |
Dispositions - Accretable Yield | (31) | |
Loans receivable - Accretable Yield ending | 4,665 | 5,858 |
Loans receivable - Outstanding beginning | 15,029 | 17,125 |
Collections | (488) | (1,019) |
Dispositions | (40) | |
Loans receivable - Outstanding ending | $ 14,501 | $ 16,106 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 1,676,313 | $ 1,692,456 |
Pass (Rated 1 - 4) [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,593,886 | 1,612,606 |
Special Mention (Rated 5) [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 23,903 | 30,177 |
Substandard (Rated 6) [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 58,524 | 49,673 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 770,776 | 768,881 |
Commercial Real Estate [Member] | Loans rated 1-4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 732,542 | 732,729 |
Commercial Real Estate [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,101 | 17,929 |
Commercial Real Estate [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 22,133 | 18,223 |
Residential Real Estate - Residential 1-4 Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 575,561 | 577,641 |
Residential Real Estate - Residential 1-4 Family [Member] | Loans rated 1-4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 569,124 | 570,428 |
Residential Real Estate - Residential 1-4 Family [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,437 | 7,213 |
Residential Real Estate - Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 95,997 | 97,238 |
Residential Real Estate - Home Equity [Member] | Loans rated 1-4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 95,422 | 96,643 |
Residential Real Estate - Home Equity [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 575 | 595 |
Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 228,709 | 243,493 |
Commercial And Industrial [Member] | Loans rated 1-4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 191,580 | 207,663 |
Commercial And Industrial [Member] | Loans rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,802 | 12,248 |
Commercial And Industrial [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 29,327 | 23,582 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,270 | 5,203 |
Consumer [Member] | Loans rated 1-4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,218 | 5,143 |
Consumer [Member] | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 52 | $ 60 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Narrative) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)$ / Loans | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Receivables [Abstract] | |||
Serviced commercial loans for participants | $ 35,200 | $ 35,400 | |
Mortgage loans serviced for others | 55,200 | $ 56,600 | |
Net service fee income | $ 18 | $ 25 | |
Weighted average internal rate of return | 12.05% | ||
Weighted average servicing fee | 0.25% | ||
Net cost to service loans | $ / Loans | 84.30 | ||
Percentage of non-accrual loans | 0.80% |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Amortization of core deposit intangible | $ 94 | $ 94 |
Future amortization of core deposit intangible assets years 1-5 | 375 | |
Core Deposit Intangibles [Member] | ||
Acquired core deposit liabilities | 4,500 | |
Future amortization of core deposit intangible assets thereafter | $ 1,700 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Options, Outstanding | |
Outstanding at beginning of period | shares | 238,075 |
Exercised | shares | (12,550) |
Outstanding at end of period | shares | 225,525 |
Exercisable at end of period | shares | 225,525 |
Options, Outstanding, Weighted Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ 6.33 |
Exercised | $ / shares | 5.12 |
Outstanding at end of period | $ / shares | 6.40 |
Exercisable at end of period | $ / shares | $ 6.40 |
Options, Outstanding, Weighted Average Remaining Contractual Term (in years) | |
Outstanding at beginning of period | 3 years 5 months 8 days |
Exercised | 8 months 26 days |
Outstanding at end of period | 3 years 3 months 29 days |
Exercisable at end of period | 3 years 3 months 29 days |
Options, Outstanding, Aggregate Intrinsic Value | |
Outstanding at beginning of period | $ | $ 877 |
Exercised | $ | 60 |
Outstanding at end of period | $ | 633 |
Exercisable at end of period | $ | $ 633 |
SHARE-BASED COMPENSATION (Det_2
SHARE-BASED COMPENSATION (Details 1) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 | 7.90% |
LTI Plan for 2017 [Member] | Original Threshold [Member] | |
December 31, 2019 | 6.50% |
LTI Plan for 2017 [Member] | Original Target [Member] | |
December 31, 2019 | 7.20% |
LTI Plan for 2017 [Member] | Adjusted Threshold [Member] | |
December 31, 2019 | 7.09% |
LTI Plan for 2017 [Member] | Adjusted Target [Member] | |
December 31, 2019 | 7.85% |
LTI Plan for 2017 [Member] | Adjusted Maximum [Member] | |
December 31, 2019 | 8.61% |
LTI Plan for 2018 [Member] | Original Threshold [Member] | |
December 31, 2019 | 6.85% |
December 31, 2020 | 7.40% |
LTI Plan for 2018 [Member] | Original Target [Member] | |
December 31, 2019 | 7.35% |
December 31, 2020 | 7.90% |
LTI Plan for 2018 [Member] | Stretch [Member] | |
December 31, 2019 | 7.75% |
December 31, 2020 | 8.30% |
LTI Plan for 2019 [Member] | Original Threshold [Member] | |
December 31, 2019 | 5.75% |
December 31, 2020 | 6.00% |
December 31, 2021 | 6.25% |
LTI Plan for 2019 [Member] | Original Target [Member] | |
December 31, 2019 | 6.13% |
December 31, 2020 | 6.75% |
December 31, 2021 | 7.00% |
LTI Plan for 2019 [Member] | Stretch [Member] | |
December 31, 2019 | 7.00% |
December 31, 2020 | 7.75% |
December 31, 2021 | 8.00% |
SHARE-BASED COMPENSATION (Det_3
SHARE-BASED COMPENSATION (Details 2) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted Stock Awards | |
Beginning balance | shares | 155,712 |
Shares granted | shares | 108,718 |
Shares vested | shares | (53,465) |
Ending balance | shares | 210,965 |
Weighted Average Grant Date Fair Value | |
Beginning balance | $ / shares | $ 9.87 |
Shares granted | $ / shares | 9.77 |
Shares vested | $ / shares | 8.75 |
Ending balance | $ / shares | $ 10.10 |
SHARE-BASED COMPENSATION (Det_4
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2019 | Jan. 31, 2018 | May 31, 2017 | May 31, 2016 | Jan. 31, 2015 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | May 31, 2014 | |
Stock Options | |||||||||
Cash received for options exercised | $ 64 | $ 104 | |||||||
Restricted Stock Awards | |||||||||
Share-based compensation expense | $ 195 | $ 232 | |||||||
RSA Plan [Member] | |||||||||
Restricted Stock Awards | |||||||||
Share based compensation, shares available for grant | 127,335 | ||||||||
LTI Plan for 2016 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 26,197 | 62,740 | |||||||
Vesting term | 3 years | ||||||||
Percent of awards participants may earn | 6.82% | ||||||||
LTI Plan for 2017 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 89,042 | ||||||||
LTI Plan for 2018 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 83,812 | ||||||||
LTI Plan for 2019 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 108,718 | ||||||||
New Stock-Based Compensation Plan ("RSA Plan") [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares authorized | 516,000 | ||||||||
Shares granted | 48,560 | ||||||||
Vesting term | 5 years | ||||||||
Time Based Shares [Member] | LTI Plan for 2016 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 36,543 | ||||||||
Percent of awards under plan | 50.00% | ||||||||
Time Based Shares [Member] | LTI Plan for 2016 [Member] | Award, Tranche One [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 10,352 | ||||||||
Vesting term | 1 year | ||||||||
Time Based Shares [Member] | LTI Plan for 2016 [Member] | Award, Tranche Two [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 26,191 | ||||||||
Vesting term | 3 years | ||||||||
Time Based Shares [Member] | LTI Plan for 2017 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 55,159 | ||||||||
Percent of awards participants may earn | 100.00% | ||||||||
Time Based Shares [Member] | LTI Plan for 2017 [Member] | Award, Tranche One [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 21,276 | ||||||||
Vesting term | 1 year | ||||||||
Time Based Shares [Member] | LTI Plan for 2017 [Member] | Award, Tranche Two [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 33,883 | ||||||||
Vesting term | 3 years | ||||||||
Time Based Shares [Member] | LTI Plan for 2018 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 50,852 | ||||||||
Time Based Shares [Member] | LTI Plan for 2018 [Member] | Award, Tranche One [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 17,908 | ||||||||
Vesting term | 1 year | ||||||||
Time Based Shares [Member] | LTI Plan for 2018 [Member] | Award, Tranche Two [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 32,944 | ||||||||
Vesting term | 3 years | ||||||||
Time Based Shares [Member] | LTI Plan for 2019 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 64,496 | ||||||||
Time Based Shares [Member] | LTI Plan for 2019 [Member] | Award, Tranche One [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 20,262 | ||||||||
Vesting term | 1 year | ||||||||
Time Based Shares [Member] | LTI Plan for 2019 [Member] | Award, Tranche Two [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 44,234 | ||||||||
Vesting term | 3 years | ||||||||
Performance Shares [Member] | LTI Plan for 2016 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 26,197 | ||||||||
Vesting term | 3 years | ||||||||
Percent of awards under plan | 50.00% | ||||||||
Performance Shares [Member] | LTI Plan for 2017 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 33,883 | ||||||||
Vesting term | 3 years | ||||||||
Percent of awards participants may earn | 50.00% | ||||||||
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% | ||||||||
Performance Shares [Member] | LTI Plan for 2019 [Member] | |||||||||
Restricted Stock Awards | |||||||||
Shares granted | 44,222 | ||||||||
Vesting term | 3 years | ||||||||
Performance Shares [Member] | LTI Plan for 2019 [Member] | Original Maximum [Member] | |||||||||
Restricted Stock Awards | |||||||||
Percent of awards participants may earn | 150.00% | ||||||||
Performance Shares [Member] | LTI Plan for 2019 [Member] | Original Threshold [Member] | |||||||||
Restricted Stock Awards | |||||||||
Percent of awards participants may earn | 50.00% | ||||||||
Performance Shares [Member] | LTI Plan for 2019 [Member] | Original Target [Member] | |||||||||
Restricted Stock Awards | |||||||||
Percent of awards participants may earn | 100.00% |
SHORT-TERM BORROWINGS AND LON_2
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Long-term debt | $ 196,039 | $ 208,018 |
FHLBB Ideal Way Line of Credit [Member] | ||
Line of credit available | 9,500 | $ 9,500 |
Correspondent Bank [Member] | ||
Line of credit available | 50,000 | |
Correspondent Bank [Member] | ||
Line of credit available | $ 15,000 | |
FHLBB Advances [Member] | ||
Weighted average rate | 2.69% | 3.28% |
Short-term borrowings | $ 35,000 | $ 59,300 |
Long-term debt | 196,000 | $ 208,000 |
FHLBB Advances [Member] | Maximum [Member] | ||
Borrowing capacity | $ 229,500 |
PENSION BENEFITS (Details)
PENSION BENEFITS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan [Abstract] | ||
Service cost | $ 274 | $ 303 |
Interest cost | 284 | 253 |
Expected return on assets | (308) | (347) |
Amortization of actuarial loss | 32 | 57 |
Net periodic pension cost | $ 282 | $ 266 |
PENSION BENEFITS (Details Narra
PENSION BENEFITS (Details Narrative) | 3 Months Ended |
Mar. 31, 2019h | |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Minimum working hours needed for eligibility | 1,000 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities [Member] | Interest Rate Swap Agreement [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative liability | $ 1,518 | $ 1,259 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES (Details 1) - Interest Rate Swap Agreement [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Notional Amount | $ 35,000 | $ 35,000 |
Weighted Average Maturity | 3 years 6 months | 3 years 8 months 12 days |
Weighted Average Rate Received | 2.61% | 2.79% |
Weighted Average Rate Paid | 3.54% | 3.54% |
Estimated Fair Value | $ (1,518) | $ (1,259) |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Rate Swap [Member] | Derivatives Designated As Cash Flow Hedges [Member] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ (328) | $ 678 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Termination value of derivatives in a net liability position | $ 1,500 | $ 1,300 | |
Collateralized Mortgage Backed Securities [Member] | |||
Fair value of mortgage backed securities collateralized | 850 | $ 830 | |
Interest Rate Swap [Member] | |||
Interest rate swap amount reclassified accumulated other comprehensive income | $ 332 | $ 435 |
FAIR VALUE OF ASSETS AND LIABLI
FAIR VALUE OF ASSETS AND LIABLITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available for sale securities | $ 244,878 | |
Marketable equity securities | 6,518 | $ 6,408 |
Interest rate swaps - Liabilities | 1,518 | 1,259 |
Fair Value Level 1 [Member] | ||
Marketable equity securities | 6,518 | 6,408 |
Fair Value Level 2 [Member] | ||
Interest rate swaps - Liabilities | 1,518 | 1,259 |
Recurring [Member] | ||
Marketable equity securities | 6,518 | 6,408 |
Total assets | 251,396 | 260,156 |
Interest rate swaps - Liabilities | 1,518 | 1,259 |
Recurring [Member] | Government-Sponsored Mortgage-Backed Securities [Member] | ||
Available for sale securities | 172,622 | 159,351 |
Recurring [Member] | US Government Guaranteed Mortgage-Backed Securities [Member] | ||
Available for sale securities | 18,954 | 19,338 |
Recurring [Member] | Corporate Bonds [Member] | ||
Available for sale securities | 25,671 | 48,168 |
Recurring [Member] | States and Municipal Bonds [Member] | ||
Available for sale securities | 2,992 | 2,944 |
Recurring [Member] | Government-Sponsored Enterprise Obligations [Member] | ||
Available for sale securities | 24,639 | 23,947 |
Recurring [Member] | Fair Value Level 1 [Member] | ||
Marketable equity securities | 6,518 | 6,408 |
Total assets | 6,518 | 6,408 |
Recurring [Member] | Fair Value Level 2 [Member] | ||
Total assets | 244,878 | 253,748 |
Interest rate swaps - Liabilities | 1,518 | 1,259 |
Recurring [Member] | Fair Value Level 2 [Member] | Government-Sponsored Mortgage-Backed Securities [Member] | ||
Available for sale securities | 172,622 | 159,351 |
Recurring [Member] | Fair Value Level 2 [Member] | US Government Guaranteed Mortgage-Backed Securities [Member] | ||
Available for sale securities | 18,954 | 19,338 |
Recurring [Member] | Fair Value Level 2 [Member] | Corporate Bonds [Member] | ||
Available for sale securities | 25,671 | 48,168 |
Recurring [Member] | Fair Value Level 2 [Member] | States and Municipal Bonds [Member] | ||
Available for sale securities | 2,992 | 2,944 |
Recurring [Member] | Fair Value Level 2 [Member] | Government-Sponsored Enterprise Obligations [Member] | ||
Available for sale securities | $ 24,639 | $ 23,947 |
FAIR VALUE OF ASSETS AND LIAB_3
FAIR VALUE OF ASSETS AND LIABLITIES (Details 1) - Nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Impaired Loans [Member] | |||
Total losses | $ 130 | $ 170 | |
Fair Value Inputs Level 3 [Member] | |||
Impaired loans | $ 2,115 | $ 1,676 |
FAIR VALUE OF ASSETS AND LIAB_4
FAIR VALUE OF ASSETS AND LIABLITIES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 44,482 | $ 26,789 |
Securities available-for-sale | 244,878 | 253,748 |
Marketable equity securities | 6,518 | 6,408 |
Federal Home Loan Bank of Boston and other restricted stock | 12,407 | 14,695 |
Loans - net | 1,627,630 | 1,631,558 |
Accrued interest receivable | 5,640 | 5,652 |
Mortgage servicing rights | 416 | 456 |
Liabilities: | ||
Deposits | 1,628,896 | 1,592,521 |
Short-term borrowings | 35,000 | 59,247 |
Long-term debt | 195,575 | 206,789 |
Accrued interest payable | 608 | 530 |
Derivative liabilities | 1,518 | 1,259 |
Fair Value Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 44,482 | 26,789 |
Marketable equity securities | 6,518 | 6,408 |
Fair Value Level 2 [Member] | ||
Assets: | ||
Securities available-for-sale | 244,878 | 253,748 |
Mortgage servicing rights | 416 | 456 |
Liabilities: | ||
Short-term borrowings | 35,000 | 59,247 |
Long-term debt | 195,575 | 206,789 |
Derivative liabilities | 1,518 | 1,259 |
Fair Value Level 3 [Member] | ||
Assets: | ||
Federal Home Loan Bank of Boston and other restricted stock | 12,407 | 14,695 |
Loans - net | 1,627,630 | 1,631,558 |
Accrued interest receivable | 5,640 | 5,652 |
Liabilities: | ||
Deposits | 1,628,896 | 1,592,521 |
Accrued interest payable | 608 | 530 |
Carrying Value [Member] | ||
Assets: | ||
Cash and cash equivalents | 44,482 | 26,789 |
Securities available-for-sale | 244,878 | 253,748 |
Marketable equity securities | 6,518 | 6,408 |
Federal Home Loan Bank of Boston and other restricted stock | 12,407 | 14,695 |
Loans - net | 1,668,787 | 1,684,804 |
Accrued interest receivable | 5,640 | 5,652 |
Mortgage servicing rights | 269 | 286 |
Liabilities: | ||
Deposits | 1,629,834 | 1,595,993 |
Short-term borrowings | 35,000 | 59,250 |
Long-term debt | 196,039 | 208,018 |
Accrued interest payable | 608 | 530 |
Derivative liabilities | $ 1,518 | $ 1,259 |
LEASES (Details)
LEASES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of right-of-use assets | $ 242 |
Interest on lease liabilities | 63 |
Operating lease cost | $ 305 |
LEASES (Details 1)
LEASES (Details 1) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 292 |
LEASES (Details 2)
LEASES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 02, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 6,993 | $ 7,200 |
Operating lease liabilities | $ 7,005 | $ 7,200 |
LEASES (Details 3)
LEASES (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 02, 2019 |
Years Ending December 31, | ||
2019 | $ 836 | |
2020 | 995 | |
2021 | 916 | |
2022 | 887 | |
2023 | 700 | |
Thereafter | 4,333 | |
Total lease payments | 8,667 | |
Less imputed interest | (1,662) | |
Total | $ 7,005 | $ 7,200 |
LEASES (Details Narrative)
LEASES (Details Narrative) | Mar. 31, 2019 |
Weighted average remaining lease term for operating leases | 11 years |
Weighted average discount rate | 3.52% |
Minimum [Member] | |
Operating lease, term of contract | 1 year |
Operating lease, renewal term | 5 years |
Maximum [Member] | |
Operating lease, term of contract | 19 years |
Operating lease, renewal term | 15 years |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Details Narrative) - USD ($) $ in Thousands | Jan. 02, 2019 | Mar. 31, 2019 |
Accounting Changes and Error Corrections [Abstract] | ||
Right-of-use assets | $ 7,200 | $ 6,993 |
Lease liabilities | 7,200 | $ 7,005 |
Cumulative-effect adjustment, tax | $ 7 |