Western New England Bancorp (WNEB) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 05, 2020
Cover [Abstract]
Entity Registrant Name	Western New England Bancorp, Inc.
Entity Central Index Key	0001157647
Document Type	10-Q
Entity File Number	001-16767
Entity Incorporation State	MA
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		25,644,334
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

CONSOLIDATED BALANCE SHEETS - U

CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 16,298	$ 16,640
Federal Funds Sold	1,453	1,635
Interest-bearing deposits and other short-term investments	8,924	6,466
Cash and cash equivalents	26,675	24,741
Securities available-for-sale, at fair value	215,118	227,708
Marketable equity securities, at fair value	6,875	6,737
Federal Home Loan Bank stock and other restricted stock, at cost	11,994	14,477
Loans, net of allowance for loan losses of $15,837 and $14,102 at March 31, 2020 and December 31, 2019, respectively	1,788,338	1,761,932
Premises and equipment, net	24,147	23,763
Accrued interest receivable	5,220	5,313
Bank-owned life insurance	71,492	71,051
Deferred tax asset, net	8,329	9,161
Goodwill	12,487	12,487
Core deposit intangible	3,219	3,312
Other assets	16,434	20,794
Total Assets	2,190,328	2,181,476
Deposits:
Non-interest-bearing	394,669	393,303
Interest-bearing	1,311,315	1,284,561
Total deposits	1,705,984	1,677,864
Short-term borrowings	45,000	35,000
Long-term debt	177,358	205,515
Other liabilities	34,177	31,073
Total Liabilities	1,962,519	1,949,452
SHAREHOLDERS' EQUITY:
Common stock - $0.01 par value, 75,000,000 shares authorized, 25,644,334 shares issued and outstanding at March 31, 2020; 26,557,981 shares issued and outstanding at December 31, 2019	256	266
Additional paid-in capital	157,133	164,248
Unearned compensation - ESOP	(4,430)	(4,574)
Unearned compensation - Equity Incentive Plan	(1,850)	(1,124)
Retained earnings	82,968	82,176
Accumulated other comprehensive loss	(6,268)	(8,968)
TOTAL SHAREHOLDERS' EQUITY	227,809	232,024
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,190,328	$ 2,181,476

CONSOLIDATED BALANCE SHEETS -_2

CONSOLIDATED BALANCE SHEETS - UNAUDITED (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 15,837	$ 14,102
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	25,644,334	26,557,981
Common stock, outstanding	25,644,334	26,557,981

CONSOLIDATED STATEMENTS OF NET

CONSOLIDATED STATEMENTS OF NET INCOME - UNAUDITED - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest and dividend income:
Residential and commercial real estate loans	$ 15,654	$ 14,971
Commercial and industrial loans	3,006	3,002
Consumer loans	87	85
Debt securities, taxable	1,346	1,629
Debt securities, tax-exempt	17	20
Equity securities	36	41
Other investments	182	236
Short-term investments	62	76
Total interest and dividend income	20,390	20,060
Interest expense:
Deposits	4,236	3,969
Long-term debt	1,014	1,139
Short-term borrowings	587	626
Total interest expense	5,837	5,734
Net interest and dividend income	14,553	14,326
Provision for loan losses	2,100	50
Net interest and dividend income after provision for loan losses	12,453	14,276
Non-interest income:
Service charges and fees	1,774	1,633
Income from BOLI	441	425
Gain on available-for-sale securities, net	23	35
Net unrealized gains on marketable equity securities	102	70
Other income	185	8
Total non-interest income	2,525	2,171
Non-interest expense:
Salaries and employees benefits	7,172	6,780
Occupancy	1,167	1,171
Furniture and equipment	391	405
Data processing	715	665
Professional fees	599	705
FDIC insurance assessment	151	176
Advertising	252	364
Other expenses	1,867	1,757
Total non-interest expense	12,314	12,023
Income before income taxes	2,664	4,424
Income tax provision	584	994
Net income	$ 2,080	$ 3,430
Earnings per common share:
Basic earnings per share (in dollars per share)	$ 0.08	$ 0.13
Weighted average shares outstanding (in shares)	25,565,138	27,037,520
Diluted earnings per share (in dollars per share)	$ 0.08	$ 0.13
Weighted average diluted shares outstanding (in shares)	25,617,920	27,153,160

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income		$ 2,080	$ 3,430
Unrealized gains on available-for-sale securities:
Unrealized holding gains		4,150	4,334
Reclassification adjustment for net gains realized in income	[1]	(23)	(35)
Unrealized gains		4,127	4,299
Tax effect		(999)	(1,113)
Net-of-tax amount		3,128	3,186
Cash flow hedges:
Change in fair value of derivatives used for cash flow hedges		(1,123)	(328)
Reclassification adjustment for loss realized in interest expense	[2]	163	68
Reclassification adjustment for termination fee realized in interest expense	[3]	266	264
Unrealized (losses) gains on cash flow hedges		(694)	4
Tax effect		195	(1)
Net-of-tax amount		(499)	3
Defined benefit pension plan:
Amortization of defined benefit plans actuarial loss	[4]	99	32
Tax effect		(28)	(9)
Net-of-tax amount		71	23
Other comprehensive income		2,700	3,212
Comprehensive income		$ 4,780	$ 6,642
[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 $5,000 and $10,000 for the three months ended March 31, 2020 and 2019, 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 $46,000 and $19,000 for the three months ended March 31, 2020 and 2019, 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 $75,000 and $74,000 for the three months ended March 31, 2020 and 2019.
[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 $28,000 and $9,000 for the three months ended March 31, 2020 and 2019, respectively.

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Income tax expense (benefits) on realized gains and losses on available-for-sale securities	$ 5,000	$ 10,000
Income tax benefit on derivative instruments	46,000	19,000
Income tax benefit on termination fee on derivative instruments	75,000	74,000
Income tax benefit, defined benefit plans	$ 28,000	$ 9,000

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Unearned Compensation - ESOP [Member]	Unearned Compensation - Equity Incentive Plan [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Total
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				195			195
Forfeited equity incentive plan shares reissued		(45)		45
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 on common stock					(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
BALANCE AT BEGINNING at Dec. 31, 2019	$ 266	164,248	(4,574)	(1,124)	82,176	(8,968)	232,024
BALANCE AT BEGINNING (shares) at Dec. 31, 2019	26,557,981
Comprehensive income					2,080	2,700	4,780
Common stock held by ESOP committed to be released		47	144				191
Share-based compensation - equity incentive plan				182			182
Forfeited equity incentive plan shares reissued		(186)		186
Common stock repurchased	$ (11)	(8,069)					(8,080)
Common stock repurchased (in shares)	(1,015,055)
Issuance of common stock in connection with equity incentive plan	$ 1	1,093		(1,094)
Issuance of common stock in connection with equity incentive plan (shares)	101,408
Cash dividends declared and paid on common stock					(1,288)		(1,288)
BALANCE AT ENDING at Mar. 31, 2020	$ 256	$ 157,133	$ (4,430)	$ (1,850)	$ 82,968	$ (6,268)	$ 227,809
BALANCE AT ENDING (shares) at Mar. 31, 2020	25,644,334

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Common stock held by ESOP committed to be released (shares)	85,101	88,117
Forfeited equity incentive plan shares reissued	18,645	5,835
Cash dividends declared and paid on common stock (per share)	$ 0.05	$ 0.05

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
OPERATING ACTIVITIES:
Net income	$ 2,080	$ 3,430
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,100	50
Depreciation and amortization of premises and equipment	494	529
Accretion of purchase accounting adjustments, net	(72)	(10)
Amortization of core deposit intangible	93	94
Net amortization of premiums and discounts on securities and mortgage loans	589	540
Share-based compensation expense	182	195
ESOP expense	191	209
Net gain on available-for-sale securities	(23)	(35)
Net change in unrealized gain on marketable equity securities	(102)	(70)
Income from bank-owned life insurance	(441)	(425)
Net change in:
Accrued interest receivable	93	12
Other assets	4,114	(7,249)
Other liabilities	2,755	9,231
Net cash provided by operating activities	12,053	6,501
INVESTING ACTIVITIES:
Purchases	(22,345)	(15,294)
Proceeds from sales and redemption	8,243	21,642
Proceeds from calls, maturities, and principal collections	30,263	6,296
Loan originations and principal payments, net	(28,497)	15,912
Redemption of Federal Home Loan Bank of Boston stock	2,483	2,288
Purchases of premises and equipment	(888)	(374)
Proceeds from sale of premises and equipment		27
Net cash (used in) provided by investing activities	(10,741)	30,497
FINANCING ACTIVITIES:
Net increase in deposits	28,132	33,875
Net change in short-term borrowings	10,000	(24,250)
Repayment of long-term debt	(28,142)	(11,951)
Cash dividends paid	(1,288)	(1,375)
Common stock repurchased	(8,080)	(15,668)
Issuance of common stock in connection with stock option exercises		64
Net cash provided by (used in) financing activities	622	(19,305)
NET CHANGE IN CASH AND CASH EQUIVALENTS:	1,934	17,693
Beginning of period	24,741	26,789
End of period	26,675	44,482
Supplemental cash flow information:
Interest paid	5,790	5,655
Taxes paid	$ 575	832
Net change in cash due to broker for common stock repurchased		$ (221)

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
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 23 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. Our newest branch in Huntington, Massachusetts opened on February 25, 2020. In addition, we have announced plans to open two full-service branches in Bloomfield, Connecticut and West Hartford, Connecticut, which are currently undergoing construction and are anticipated to open in 2020. The West Hartford branch will be a Financial Solution Center and is expected to serve as our Connecticut hub, housing Commercial Lending, Cash Management and a Mortgage Loan Officer (“MLO”). Wholly-owned Subsidiaries of the Bank Principles of Consolidation Estimates Basis of Presentation. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2019, included in our Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”). Reclassifications.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2020
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 to stock options and certain performance-based restricted stock awards 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, 2020 and 2019. Earnings per common share have been computed based on the following: Three Months Ended March 31, 2020 2019 (In thousands, except per share data) Net income applicable to common stock $ 2,080 $ 3,430 Average number of common shares issued 26,293 27,834 Less: Average unallocated ESOP Shares (612 ) (700 ) Less: Average unvested equity incentive plan shares (116 ) (96 ) Average number of common shares outstanding used to calculate basic earnings per common share 25,565 27,038 Effect of dilutive equity incentive plan — 79 Effect of dilutive stock options 53 36 Average number of common shares outstanding used to calculate diluted earnings per common share 25,618 27,153 Basic earnings per share $ 0.08 $ 0.13 Diluted earnings per share $ 0.08 $ 0.13

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
COMPREHENSIVE INCOME (LOSS)	3. COMPREHENSIVE INCOME (LOSS) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss). The components of accumulated other comprehensive loss included in shareholders’ equity are as follows: March 31, December 31, (In thousands) Net unrealized gains (losses) on securities available-for-sale $ 3,734 $ (393 ) Tax effect (928 ) 71 Net-of-tax amount 2,806 (322 ) Fair value of derivatives used for cash flow hedges (2,733 ) (1,773 ) Termination fee on cancelled cash flow hedges (1,260 ) (1,526 ) Total derivatives (3,993 ) (3,299 ) Tax effect 1,123 928 Net-of-tax amount (2,870 ) (2,371 ) Unrecognized actuarial loss on the defined benefit plan (8,629 ) (8,728 ) Tax effect 2,425 2,453 Net-of-tax amount (6,204 ) (6,275 ) Accumulated other comprehensive loss $ (6,268 ) $ (8,968 ) The following table presents changes in accumulated other comprehensive loss for the periods ended March 31, 2020 and 2019 by component: Securities Derivatives Defined Benefit Pension Plan Accumulated Other Comprehensive Loss (In thousands) Balance at December 31, 2018 $ (7,400 ) $ (2,770 ) $ (3,246 ) $ (13,416 ) Cumulative-effect adjustment due to change in accounting principle (ASU 2017-08) 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 ) Balance at December 31, 2019 $ (322 ) $ (2,371 ) $ (6,275 ) $ (8,968 ) Current-period other comprehensive income 3,128 (499 ) 71 2,700 Balance at March 31, 2020 $ (2,806 ) $ (2,870 ) $ (6,204 ) $ (6,268 )

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
SECURITIES	4. SECURITIES Available-for-sale investment securities are summarized as follows: March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: State and municipal bonds $ 2,716 $ 94 $ — $ 2,810 Corporate bonds 7,789 33 (477 ) 7,345 Total debt securities 10,505 127 (477 ) 10,155 Mortgage-backed securities: Government-sponsored mortgage-backed securities 190,560 4,192 (148 ) 194,604 U.S. government guaranteed mortgage-backed securities 10,319 132 (92 ) 10,359 Total mortgage-backed securities 200,879 4,324 (240 ) 204,963 Total available-for-sale $ 211,384 $ 4,451 $ (717 ) $ 215,118 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 20,150 $ — $ (136 ) $ 20,014 State and municipal bonds 2,718 95 — 2,813 Corporate bonds 7,800 88 (22 ) 7,866 Total debt securities 30,668 183 (158 ) 30,693 Mortgage-backed securities: Government-sponsored mortgage-backed securities 186,236 780 (1,015 ) 186,001 U.S. government guaranteed mortgage-backed securities 11,197 33 (216 ) 11,014 Total mortgage-backed securities 197,433 813 (1,231 ) 197,015 Total available-for-sale $ 228,101 $ 996 $ (1,389 ) $ 227,708 At March 31, 2020, mortgage-backed securities with a fair value of $56.4 million were pledged to secure public deposits and for other purposes as required or permitted by law. On January 1, 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, 2020, 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, 2020 Amortized Cost Fair Value (In thousands) Available-for-sale securities: Debt securities:: Due after one year through five years $ 8,600 $ 8,161 Due after five years through ten years 323 362 Due after ten years 1,582 1,632 Total debt securities 10,505 10,155 Mortgage-backed securities 200,879 204,963 Total available-for-sale securities $ 211,384 $ 215,118 Gross realized gains and losses on available-for-sale securities for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31, 2020 2019 (In thousands) Gross gains realized $ 148 $ 35 Gross losses realized (125 ) — Net gains realized $ 23 $ 35 Proceeds from the sales and redemptions of available-for-sale securities amounted to $8.2 million for the three months ended March 31, 2020, while proceeds from the redemption of available-for-sale securities amounted to $21.6 million for the three months ended March 31, 2019. Information pertaining to securities with gross unrealized losses at March 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: March 31, 2020 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 $ 11 $ 1,906 $ 137 $ 9,245 U.S. government guaranteed mortgage-backed securities — — 92 3,514 Corporate bonds 477 4,208 — — Total available-for-sale $ 488 $ 6,114 $ 229 $ 12,759 December 31, 2019 Less Than 12 Months Over 12 Months Gross Fair Value Gross Fair Value (In thousands) Available-for-sale: Government-sponsored mortgage-backed securities $ 122 $ 42,834 $ 893 $ 70,581 U.S. government guaranteed mortgage-backed securities 13 2,783 203 4,688 Corporate bonds 16 1,623 6 3,046 Government-sponsored enterprise obligations 126 14,524 10 1,490 Total available-for-sale $ 277 $ 61,764 $ 1,112 $ 79,805 During the three months ended March 31, 2020 and year ended December 31, 2019, 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, 2020, 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, 2020
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, 2020 2019 (In thousands) Commercial real estate $ 835,750 $ 816,886 Residential real estate: Residential 1-4 family 597,740 597,727 Home equity 104,416 102,517 Commercial and industrial 256,687 248,893 Consumer 5,356 5,747 Total gross loans 1,799,949 1,771,770 Premiums and deferred loan fees and costs, net 4,226 4,264 Allowance for loan losses (15,837 ) (14,102 ) Net loans $ 1,788,338 $ 1,761,932 There were no residential real estate loan purchases during the three months ended March 31, 2020 and year ended December 31, 2019. 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, 2020 and December 31, 2019, the Company was servicing commercial loans participated out to various other institutions totaling $24.0 million and $24.2 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, 2020, include weighted average prepayment speed for the portfolio using the Public Securities Association Standard Prepayment Model (243 PSA), weighted average internal rate of return (12.05%), weighted average servicing fee (0.25%), and net cost to service loans ($83.58 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, 2020 and December 31, 2019, the Company was servicing residential mortgage loans owned by investors totaling $47.0 million and $48.2 million, respectively. Net service fee income of $14,000 and $18,000 was recorded for the three months ended March 31, 2020 and 2019, respectively, and is included in service charges and fees on the consolidated statements of net income. A summary of the activity in the balances of mortgage servicing rights follows: Three Months Ended March 31, 2020 2019 (In thousands) Balance at the beginning of year: $ 219 $ 286 Capitalized mortgage servicing rights — — Amortization (16 ) (17 ) Balance at the end of period $ 203 $ 269 Fair value at the end of period $ 252 $ 416 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. The recent COVID-19 pandemic has put significant pressure on the local business community and increased unemployment. On March 23, 2020, the Governor of Massachusetts issued an emergency order requiring all businesses and organizations that do not provide COVID-19 Essential Services to close their physical workplaces and facilities to workers, customers and the public from March 24, 2020 until April 7, 2020, which was subsequently extended to May 18, 2020. Because of the mandated shutdowns, near the end of March 2020, a record number of individuals filed for unemployment benefits. Sectors that have been materially impacted include, but are not limited to: hospitality, retail, restaurant and food service, and fuel services. As of March 31, 2020, the Bank added a new qualitative factor category to the allowance calculation – “Economic Impact of COVID-19”. The allocation of additional reserves for the COVID-19 qualitative factor at March 31, 2020 was based upon an analysis of the loan portfolio that included identifying borrowers sensitive to the shutdown (i.e. accommodation and food service, recreation, construction, manufacturing, and wholesale & retail trade) as well as a general allocation for the negative economic outlook given the record number of unemployment benefits claims during the period. Excluding the COVID-19 qualitative factor category, there were no additional 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. The extent to which COVID-19 impacts our borrower’s ability to repay and therefore the classification of a loan as impaired is highly uncertain and cannot be predicted with confidence as it is highly dependent upon the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures. 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, 2020 and 2019 is as follows: Commercial Residential Commercial Consumer Unallocated Total (In thousands) 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 Balance at December 31, 2019 $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Provision (credit) 1,010 357 655 61 17 2,100 Charge-offs (37 ) (106 ) (199 ) (37 ) — (379 ) Recoveries — 1 1 12 — 14 Balance at March 31, 2020 $ 7,780 $ 4,172 $ 3,640 $ 239 $ 6 $ 15,837 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, 2020 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 7,780 4,172 3,640 239 6 15,837 Total allowance for loan losses $ 7,780 $ 4,172 $ 3,640 $ 239 $ 6 $ 15,837 Impaired loans $ 11,025 $ 3,535 $ 741 $ 39 $ — $ 15,340 Non-impaired loans 816,742 696,070 255,196 5,317 — 1,773,325 Impaired loans acquired with deteriorated credit quality 7,983 2,551 750 — — 11,284 Total loans $ 835,750 $ 702,156 $ 256,687 $ 5,356 $ — $ 1,799,949 December 31, 2019 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 6,807 3,920 3,183 203 (11 ) 14,102 Total allowance for loan losses $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Impaired loans $ 3,457 $ 3,575 $ 588 $ 42 $ — $ 7,662 Non-impaired loans 805,007 694,080 247,499 5,705 — 1,752,291 Impaired loans acquired with deteriorated credit quality 8,422 2,589 806 — — 11,817 Total loans $ 816,886 $ 700,244 $ 248,893 $ 5,747 $ — $ 1,771,770 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 60 – 89 Days 90 Days or Total Past Due Total Current Loans Total Loans Non-Accrual (In thousands) March 31, 2020 Commercial real estate $ 1,473 $ 423 $ 3,273 $ 5,169 $ 830,581 $ 835,750 $ 3,653 Residential real estate: Residential 2,477 1,463 834 4,774 592,966 597,740 4,551 Home equity 185 123 149 457 103,959 104,416 311 Commercial and industrial 1,212 358 442 2,012 254,675 256,687 1,110 Consumer 17 4 15 36 5,320 5,356 39 Total loans $ 5,364 $ 2,371 $ 4,713 $ 12,448 $ 1,787,501 $ 1,799,949 $ 9,664 December 31, 2019 Commercial real estate $ 2,784 $ 1,234 $ 2,637 $ 6,655 $ 810,231 $ 816,886 $ 3,843 Residential real estate: Residential 2,574 683 1,433 4,690 593,037 597,727 4,548 Home equity 80 38 149 267 102,250 102,517 445 Commercial and industrial 1,356 645 148 2,149 246,744 248,893 1,003 Consumer 24 — 17 41 5,706 5,747 42 Total loans $ 6,818 $ 2,600 $ 4,384 $ 13,802 $ 1,757,968 $ 1,771,770 $ 9,881 Impaired Loans. The following is a summary of impaired loans by class: Three Months Ended At March 31, 2020 March 31, 2020 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) Impaired Loans (1) Commercial real estate $ 19,008 $ 21,040 $ — $ 15,443 $ 110 Residential real estate 5,687 6,479 — 5,691 14 Home equity 399 454 — 434 3 Commercial and industrial 1,491 3,889 — 1,443 57 Consumer 39 52 — 40 — Total impaired loans $ 26,624 $ 31,914 $ — $ 23,051 $ 184 Three Months Ended At December 31, 2019 March 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) Impaired Loans (1) Commercial real estate $ 11,879 $ 13,914 $ — $ 16,856 $ 131 Residential real estate 5,695 6,383 — 7,190 44 Home equity 469 539 — 417 — Commercial and industrial 1,394 4,192 — 3,718 37 Consumer 42 56 — 57 — Total impaired loans $ 19,479 $ 25,084 $ — $ 28,238 $ 212 (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 non-accrual impaired loans during the three months ended March 31, 2020 and March 31, 2019. 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, 2020, we have lent an additional $169,000 to a customer with a loan relationship already classified as impaired. The new loan was designated impaired and classified as a TDR at March 31, 2020, and is included in the table below. At March 31, 2020, we had 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, 2020 and 2019 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. Loans modifications classified as TDRs during the three months ended March 31, 2020 are included in the table below. There were no loan modifications classified as TDRs during the three month ended March 31, 2019. During the three months ended March 31, 2020 and 2019, no TDRs defaulted (defined as 30 days or more past due) within 12 months of restructuring. There were no charge-offs on TDRs during the three months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 Number Pre- Post- (Dollars in thousands) Troubled Debt Restructurings Commercial and Industrial 1 $ 169 $ 169 Total 1 $ 169 $ 169 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, 2020 and 2019. Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2019 $ 20,689 $ 15,909 $ 4,780 $ 4,092 $ 11,817 Collections (964 ) (608 ) (356 ) (108 ) (500 ) Dispositions (238 ) (238 ) — (205 ) (33 ) Balance at March 31, 2020 $ 19,487 $ 15,063 $ 4,424 $ 3,779 $ 11,284 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 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 Residential Home Commercial and Industrial Consumer Total (In thousands) March 31, 2020 Pass (Rated 1 – 4) $ 784,437 $ 592,084 $ 103,942 $ 218,714 $ 5,318 $ 1,704,495 Special Mention (Rated 5) 20,931 — — 14,932 — 35,863 Substandard (Rated 6) 30,382 5,656 474 23,041 38 59,591 Total $ 835,750 $ 597,740 $ 104,416 $ 256,687 $ 5,356 $ 1,799,949 December 31, 2019 Pass (Rated 1 – 4) $ 766,124 $ 591,911 $ 101,908 $ 222,847 $ 5,705 $ 1,688,495 Special Mention (Rated 5) 23,138 — — 2,796 — 25,934 Substandard (Rated 6) 27,624 5,816 609 23,250 42 57,341 Total $ 816,886 $ 597,727 $ 102,517 $ 248,893 $ 5,747 $ 1,771,770

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLES	6. GOODWILL AND OTHER INTANGIBLES Goodwill. At March 31, 2020 and December 31, 2019, 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, 2020 or the year ended December 31, 2019. 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 $93,000 for the three months ended March 31, 2020 and March 31, 2019. At March 31, 2020, future amortization of the core deposit intangible totaled $375,000 for each of the next five years and $1.3 million thereafter.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	7. SHARE-BASED COMPENSATION Stock Options. A summary of stock option activity for the three months ended March 31, 2020 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2019 218,214 $ 6.42 2.62 $ 695 Exercised — — — — Outstanding at March 31, 2020 218,214 $ 6.42 2.37 $ 77 Exercisable at March 31, 2020 218,214 $ 6.42 2.37 $ 77 Cash received for options exercised during the three months ended March 31, 2019 was $64,000. There were no options exercised during the three months ended March 31, 2020. Restricted Stock Awards. In May 2014, the Company’s shareholders approved a stock-based compensation plan (the “RSA Plan”). Under the RSA Plan, up to 516,000 shares of the Company’s common stock were reserved for grants of stock awards, including stock options and restricted stock, which may be granted to any officer, key employee or non-employee director of WNEB. Any shares that are not issued because vesting requirements are not met, will be available for future issuance under the RSA Plan. 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, with the final tranche of shares vesting in January of 2020. On an annual basis, the Compensation Committee (the “Committee”) approves long-term incentive awards out of the RSA Plan, whereby shares will be granted to eligible participants of the Company that are nominated by the Chief Executive Officer and approved by the Committee, with vesting over a three-year term for employees and a one-year term for directors. Annual employee grants provide for 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 award 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. In May 2017, there were 89,042 shares granted. 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 performance metric. Vesting is realized after a three-year period. The primary performance metric for 2017 grants 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. Eligible participants will be able to earn between 50% (“threshold” performance), 100% (“target” performance) and 150% (“maximum” 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 grant 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 % As of December 31, 2019, the three-year performance period for the 2017 grants ended. Performance-based shares were earned based on the Company achieving the annual 2017 performance metrics adjusted threshold, target or maximum metrics at the end of each year of the three-year performance period. Of the original 33,883 performance-based shares granted in 2017, 15,898 performance-based shares vested and were issued to eligible recipients, while 17,985 shares were forfeited in February of 2020. Shares forfeited become available for reissuance under future grants. In January 2018, there were 83,812 shares granted. 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 performance metric. The primary performance metric for 2018 grants 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 grant 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). In February 2019, there were 108,718 shares granted. 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. The primary performance metric for 2019 grants 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 grants 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). In February 2020, there were 120,053 shares granted. Of the 120,053 shares, 69,898 shares were time-based, with 19,760 vesting in one year and 50,138 vesting ratably over a three-year period. The remaining 50,155 shares granted are performance-based and are subject to the achievement of the 2020 long-term incentive performance metrics, with 50% of the performance-shares vesting for each performance metric. The primary performance metrics for the 2020 grants were return on equity and earnings per share. 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 for return on equity metrics and for a three-year cumulative performance period for earnings per share, but will be distributed at the end of the three-year period as earned. The threshold, target and stretch metrics under the 2020 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2020 5.00 % 5.48 % 6.00 % December 31, 2021 5.62 % 6.24 % 6.86 % December 31, 2022 6.29 % 6.99 % 7.69 % Earnings Per Share Metrics Performance Period Ending Threshold Target Stretch Three-year Cumulative Diluted Earnings Per Share $ 1.50 $ 1.65 $ 1.80 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, 2020, there were an additional 25,927 shares available for future grants under the RSA Plan. A summary of the status of restricted stock awards at March 31, 2020 is presented below: Shares Weighted Average Balance at December 31, 2019 172,866 $ 10.07 Shares granted 101,408 9.11 Shares forfeited (16,803 ) 10.15 Shares vested (41,894 ) 9.54 Shares reissued 18,645 9.11 Balance at March 31, 2020 234,222 $ 9.67 We recorded total expense for restricted stock awards of $182,000 and $195,000 for the three months ended March 31, 2020 and 2019, respectively.

SHORT-TERM BORROWINGS AND LONG-

SHORT-TERM BORROWINGS AND LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2020
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. Borrowings from the Federal Reserve Bank (“FRB”) Discount Window are secured by certain securities from the Company’s investment portfolio not otherwise pledged. FHLB advances with an original maturity of less than one year totaled $45.0 million and $35.0 million at March 31, 2020 and December 31, 2019 with a weighted average rate of 0.71% and 1.86%, respectively. At March 31, 2020, based on qualifying collateral less outstanding advances, the Bank had the capacity to borrow up to approximately $247.8 million from the FHLB. In addition, at March 31, 2020 and December 31, 2019, 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, 2020 and December 31, 2019, 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, 2020 and 2019. 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 this line at March 31, 2020 and 2019. As of March 31, 2020, we also have an available line of credit of $23.9 million with the FRB Discount Window at an interest rate determined and reset on a daily basis. There were no advances outstanding under this line at March 31, 2020 or December 31, 2019. Long-term debt consists of FHLB advances with an original maturity of one year or more. At March 31, 2020, we had $177.4 million in long-term debt with the FHLB, compared to $205.5 million in long-term debt with the FHLB at December 31, 2019.

PENSION BENEFITS

PENSION BENEFITS	3 Months Ended
	Mar. 31, 2020
Retirement Benefits [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 2020. No contributions have been made to the plan for the three months ended March 31, 2020. 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, 2020 2019 (In thousands) Service cost $ 356 $ 274 Interest cost 293 284 Expected return on assets (382 ) (308 ) Amortization of actuarial loss 99 32 Net periodic pension cost $ 366 $ 282

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	3 Months Ended
	Mar. 31, 2020
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. The following table presents information about interest rate swaps at March 31, 2020 and December 31, 2019: March 31, 2020 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB borrowings $ 35,000 2.5 0.74 % 3.54 % $ (2,777 ) Non-hedging derivatives: Loan-level swaps – dealer 13,688 13.2 3.40 % 3.75 % (1,858 ) Loan-level swaps – borrower 13,688 13.2 3.75 % 3.40 % 1,858 Total $ 62,376 $ (2,777 ) December 31, 2019 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB borrowings $ 35,000 2.7 1.89 % 3.54 % $ (1,798 ) Non-hedging derivatives: Loan-level swaps – dealer 6,484 13.2 3.45 % 3.79 % (149 ) Loan-level swaps – borrower 6,484 13.2 3.79 % 3.45 % 149 Total $ 47,968 $ (1,798 ) At March 31, 2020, the Company had $35.0 million in derivatives designated as hedging instruments and $27.4 million in derivatives designated as non-hedging instruments, compared to $35.0 million in derivatives designated as hedging instruments and $13.0 million in derivatives designated as non-hedging instruments at December 31, 2019. 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 its exposure to interest rate movements. To accomplish these objectives, 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. For derivatives designated as cash flow hedges, the 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. 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). Non-hedging Derivatives. Derivatives not designated as hedges are not speculative, but rather result from a service the Company provides to certain customers. The Company executes loan-level derivative products such as interest-rate swap agreements with commercial banking customers to aid them in managing their interest-rate risk by converting floating-rate loan payments to fixed-rate loan payments. The Company concurrently enters into offsetting swaps with a third-party financial institution, effectively minimizing the Company’s net risk exposure resulting from such transactions. The third-party financial institution exchanges the customer's fixed-rate loan payments for floating-rate loan payments. As the interest-rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings. Fair Values of Derivative Instruments on the Balance Sheet. The table below presents the fair value of our derivative financial instruments designated as hedging and non-hedging instruments as well as our classification on the balance sheet as of March 31, 2020 and December 31, 2019. March 31, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps – cash flow hedge Other Assets $ — Other Liabilities $ 2,777 Total derivatives designated as hedging instruments $ — $ 2,777 Derivatives not designated as hedging instruments: Interest rate swap – with customers Other Assets $ 1,858 $ — Interest rate swap – with counterparties — Other Liabilities 1,858 Total derivatives not designated as hedging instruments $ 1,858 $ 1,858 December 31, 2019 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps – cash flow hedge Other Assets $ — Other Liabilities $ 1,798 Total derivatives designated as hedging instruments $ — $ 1,798 Derivatives not designated as hedging instruments: Interest rate swap – with customers Other Assets $ 149 $ — Interest rate swap – with counterparties — Other Liabilities 149 Total derivatives not designated as hedging instruments $ 149 $ 149 Effect of Derivative Instruments in the Consolidated Statements of Net Income and Changes in Shareholders’ Equity. The table below presents the pre-tax net losses of our cash flow hedges for the periods indicated: Amount of Loss Recognized in OCI on Derivative Three Months Ended March 31, 2020 2019 (In thousands) Interest rate swaps $ (1,123 ) $ (328 ) 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 table below presents the amount reclassified from accumulated other comprehensive loss into net income for interest rate swaps and termination fees: Amount of Loss Reclassified from OCI into Expense (Effective Portion) Three Months Ended March 31, 2020 2019 (In thousands) Interest rate swaps $ (429 ) $ (322 ) During the next 12 months, we estimate that $1.8 million will be reclassified as an increase in interest expense. 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, 2020 and December 31, 2019, we had a net liability position of $2.8 million and $1.8 million with our counterparties, respectively. As of March 31, 2020, we had minimum collateral posting thresholds with certain of our derivative counterparties and had mortgage-backed securities with a fair value of $1.9 million and $2.8 million in cash posted as collateral against our obligations under these agreements. If we had breached any of these provisions at March 31, 2020, 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, 2020
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. The securities measured at fair value in Level 1 are based on quoted market prices in an active exchange market. These securities include marketable equity securities. All other securities are measured at fair value in Level 2 and are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. These securities include government-sponsored enterprise obligations, state and municipal obligations, residential mortgage-backed securities guaranteed and sponsored by the U.S. government or an agency thereof. Fair value measurements are obtained from a third-party pricing service and are not adjusted by management. Interest rate swaps. The valuation of our interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. We have determined that the majority of the inputs used to value our interest rate derivatives fall within Level 2 of the fair value hierarchy. 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, 2020 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale $ — $ 215,118 $ — $ 215,118 Marketable equity securities 6,875 — — 6,875 Interest rate swaps — 1,858 — 1,858 Total assets $ 6,875 $ 216,976 $ — $ 223,851 Liabilities: Interest rate swaps $ — $ 4,635 $ — $ 4,635 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale $ — $ 227,708 $ — $ 227,708 Marketable equity securities 6,737 — — 6,737 Interest rate swaps — 149 — 149 Total assets $ 6,737 $ 227,857 $ — $ 234,594 Liabilities: Interest rate swaps $ — $ 1,947 $ — $ 1,947 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. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets at March 31, 2020 and December 31, 2019. 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, 2020 March 31, 2020 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired loans $ — $ — $ 78 $ 106 At Three Months Ended December 31, 2019 March 31, 2019 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired loans $ — $ — $ 1,836 $ 130 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, 2020 and December 31, 2019. Summary of Fair Values of Financial Instruments. The estimated fair values of our financial instruments are as follows: March 31, 2020 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 26,675 $ 26,675 $ — $ — $ 26,675 Securities available-for-sale 215,118 — 215,118 — 215,118 Marketable equity securities 6,875 6,875 — — 6,875 Federal Home Loan Bank of Boston and other restricted stock 11,994 — — 11,994 11,994 Loans - net 1,788,338 — — 1,764,293 1,764,293 Accrued interest receivable 5,220 — — 5,220 5,220 Mortgage servicing rights 203 — 252 — 252 Derivative assets 1,858 — 1,858 — 1,858 Liabilities: Deposits 1,705,984 — — 1,711,946 1,711,946 Short-term borrowings 45,000 — 45,030 — 45,030 Long-term debt 177,358 — 179,661 — 179,661 Accrued interest payable 572 — — 572 572 Derivative liabilities 4,635 — 4,635 — 4,635 December 31, 2019 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 24,741 $ 24,741 $ — $ — $ 24,741 Securities available-for-sale 227,708 — 227,708 — 227,708 Marketable equity securities 6,737 6,737 — — 6,737 Federal Home Loan Bank of Boston and other restricted stock 14,477 — — 14,477 14,477 Loans - net 1,761,932 — — 1,729,150 1,729,150 Accrued interest receivable 5,313 — — 5,313 5,313 Mortgage servicing rights 219 — 345 — 345 Derivative assets 149 — 149 — 149 Liabilities: Deposits 1,677,864 — — 1,679,851 1,679,851 Short-term borrowings 35,000 — 35,004 — 35,004 Long-term debt 205,515 — 205,850 — 205,850 Accrued interest payable 525 — — 525 525 Derivative liabilities 1,947 — 1,947 — 1,947

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2020
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	12. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses 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, 2020
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 23 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. Our newest branch in Huntington, Massachusetts opened on February 25, 2020. In addition, we have announced plans to open two full-service branches in Bloomfield, Connecticut and West Hartford, Connecticut, which are currently undergoing construction and are anticipated to open in 2020. The West Hartford branch will be a Financial Solution Center and is expected to serve as our Connecticut hub, housing Commercial Lending, Cash Management and a Mortgage Loan Officer (“MLO”).
Wholly-owned Subsidiaries of the Bank	Wholly-owned Subsidiaries of the Bank
Principles of Consolidation	Principles of Consolidation
Estimates	Estimates
Basis of Presentation	Basis of Presentation. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2019, included in our Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”).
Reclassifications	Reclassifications.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2020
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, 2020 2019 (In thousands, except per share data) Net income applicable to common stock $ 2,080 $ 3,430 Average number of common shares issued 26,293 27,834 Less: Average unallocated ESOP Shares (612 ) (700 ) Less: Average unvested equity incentive plan shares (116 ) (96 ) Average number of common shares outstanding used to calculate basic earnings per common share 25,565 27,038 Effect of dilutive equity incentive plan — 79 Effect of dilutive stock options 53 36 Average number of common shares outstanding used to calculate diluted earnings per common share 25,618 27,153 Basic earnings per share $ 0.08 $ 0.13 Diluted earnings per share $ 0.08 $ 0.13

COMPREHENSIVE INCOME (LOSS) (Ta

COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
Schedule of accumulated other comprehensive loss included in sharesholders' equity	The components of accumulated other comprehensive loss included in shareholders’ equity are as follows: March 31, December 31, (In thousands) Net unrealized gains (losses) on securities available-for-sale $ 3,734 $ (393 ) Tax effect (928 ) 71 Net-of-tax amount 2,806 (322 ) Fair value of derivatives used for cash flow hedges (2,733 ) (1,773 ) Termination fee on cancelled cash flow hedges (1,260 ) (1,526 ) Total derivatives (3,993 ) (3,299 ) Tax effect 1,123 928 Net-of-tax amount (2,870 ) (2,371 ) Unrecognized actuarial loss on the defined benefit plan (8,629 ) (8,728 ) Tax effect 2,425 2,453 Net-of-tax amount (6,204 ) (6,275 ) Accumulated other comprehensive loss $ (6,268 ) $ (8,968 )
Schedule of changes in accumulated other comprehensive loss by component	The following table presents changes in accumulated other comprehensive loss for the periods ended March 31, 2020 and 2019 by component: Securities Derivatives Defined Benefit Pension Plan Accumulated Other Comprehensive Loss (In thousands) Balance at December 31, 2018 $ (7,400 ) $ (2,770 ) $ (3,246 ) $ (13,416 ) Cumulative-effect adjustment due to change in accounting principle (ASU 2017-08) 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 ) Balance at December 31, 2019 $ (322 ) $ (2,371 ) $ (6,275 ) $ (8,968 ) Current-period other comprehensive income 3,128 (499 ) 71 2,700 Balance at March 31, 2020 $ (2,806 ) $ (2,870 ) $ (6,204 ) $ (6,268 )

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Schedule of securities available for sale	Available-for-sale investment securities are summarized as follows: March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: State and municipal bonds $ 2,716 $ 94 $ — $ 2,810 Corporate bonds 7,789 33 (477 ) 7,345 Total debt securities 10,505 127 (477 ) 10,155 Mortgage-backed securities: Government-sponsored mortgage-backed securities 190,560 4,192 (148 ) 194,604 U.S. government guaranteed mortgage-backed securities 10,319 132 (92 ) 10,359 Total mortgage-backed securities 200,879 4,324 (240 ) 204,963 Total available-for-sale $ 211,384 $ 4,451 $ (717 ) $ 215,118 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale securities: Debt securities: Government-sponsored enterprise obligations $ 20,150 $ — $ (136 ) $ 20,014 State and municipal bonds 2,718 95 — 2,813 Corporate bonds 7,800 88 (22 ) 7,866 Total debt securities 30,668 183 (158 ) 30,693 Mortgage-backed securities: Government-sponsored mortgage-backed securities 186,236 780 (1,015 ) 186,001 U.S. government guaranteed mortgage-backed securities 11,197 33 (216 ) 11,014 Total mortgage-backed securities 197,433 813 (1,231 ) 197,015 Total available-for-sale $ 228,101 $ 996 $ (1,389 ) $ 227,708
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, 2020, 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, 2020 Amortized Cost Fair Value (In thousands) Available-for-sale securities: Debt securities:: Due after one year through five years $ 8,600 $ 8,161 Due after five years through ten years 323 362 Due after ten years 1,582 1,632 Total debt securities 10,505 10,155 Mortgage-backed securities 200,879 204,963 Total available-for-sale securities $ 211,384 $ 215,118
Schedule of gross realized gains and losses on available-for-sale securities	Gross realized gains and losses on available-for-sale securities for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31, 2020 2019 (In thousands) Gross gains realized $ 148 $ 35 Gross losses realized (125 ) — Net gains realized $ 23 $ 35
Schedule of securities with gross unrealized losses in continuous loss position	Information pertaining to securities with gross unrealized losses at March 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: March 31, 2020 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 $ 11 $ 1,906 $ 137 $ 9,245 U.S. government guaranteed mortgage-backed securities — — 92 3,514 Corporate bonds 477 4,208 — — Total available-for-sale $ 488 $ 6,114 $ 229 $ 12,759 December 31, 2019 Less Than 12 Months Over 12 Months Gross Fair Value Gross Fair Value (In thousands) Available-for-sale: Government-sponsored mortgage-backed securities $ 122 $ 42,834 $ 893 $ 70,581 U.S. government guaranteed mortgage-backed securities 13 2,783 203 4,688 Corporate bonds 16 1,623 6 3,046 Government-sponsored enterprise obligations 126 14,524 10 1,490 Total available-for-sale $ 277 $ 61,764 $ 1,112 $ 79,805

LOANS AND ALLOWANCE FOR LOAN _2

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Schedule of loans	Major classifications of loans at the periods indicated were as follows: March 31, December 31, 2020 2019 (In thousands) Commercial real estate $ 835,750 $ 816,886 Residential real estate: Residential 1-4 family 597,740 597,727 Home equity 104,416 102,517 Commercial and industrial 256,687 248,893 Consumer 5,356 5,747 Total gross loans 1,799,949 1,771,770 Premiums and deferred loan fees and costs, net 4,226 4,264 Allowance for loan losses (15,837 ) (14,102 ) Net loans $ 1,788,338 $ 1,761,932
Schedule of mortgage servicing rights	A summary of the activity in the balances of mortgage servicing rights follows: Three Months Ended March 31, 2020 2019 (In thousands) Balance at the beginning of year: $ 219 $ 286 Capitalized mortgage servicing rights — — Amortization (16 ) (17 ) Balance at the end of period $ 203 $ 269 Fair value at the end of period $ 252 $ 416
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, 2020 and 2019 is as follows: Commercial Residential Commercial Consumer Unallocated Total (In thousands) 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 Balance at December 31, 2019 $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Provision (credit) 1,010 357 655 61 17 2,100 Charge-offs (37 ) (106 ) (199 ) (37 ) — (379 ) Recoveries — 1 1 12 — 14 Balance at March 31, 2020 $ 7,780 $ 4,172 $ 3,640 $ 239 $ 6 $ 15,837
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, 2020 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 7,780 4,172 3,640 239 6 15,837 Total allowance for loan losses $ 7,780 $ 4,172 $ 3,640 $ 239 $ 6 $ 15,837 Impaired loans $ 11,025 $ 3,535 $ 741 $ 39 $ — $ 15,340 Non-impaired loans 816,742 696,070 255,196 5,317 — 1,773,325 Impaired loans acquired with deteriorated credit quality 7,983 2,551 750 — — 11,284 Total loans $ 835,750 $ 702,156 $ 256,687 $ 5,356 $ — $ 1,799,949 December 31, 2019 Amount of allowance for impaired loans $ — $ — $ — $ — $ — $ — Amount of allowance for non-impaired loans 6,807 3,920 3,183 203 (11 ) 14,102 Total allowance for loan losses $ 6,807 $ 3,920 $ 3,183 $ 203 $ (11 ) $ 14,102 Impaired loans $ 3,457 $ 3,575 $ 588 $ 42 $ — $ 7,662 Non-impaired loans 805,007 694,080 247,499 5,705 — 1,752,291 Impaired loans acquired with deteriorated credit quality 8,422 2,589 806 — — 11,817 Total loans $ 816,886 $ 700,244 $ 248,893 $ 5,747 $ — $ 1,771,770
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 60 – 89 Days 90 Days or Total Past Due Total Current Loans Total Loans Non-Accrual (In thousands) March 31, 2020 Commercial real estate $ 1,473 $ 423 $ 3,273 $ 5,169 $ 830,581 $ 835,750 $ 3,653 Residential real estate: Residential 2,477 1,463 834 4,774 592,966 597,740 4,551 Home equity 185 123 149 457 103,959 104,416 311 Commercial and industrial 1,212 358 442 2,012 254,675 256,687 1,110 Consumer 17 4 15 36 5,320 5,356 39 Total loans $ 5,364 $ 2,371 $ 4,713 $ 12,448 $ 1,787,501 $ 1,799,949 $ 9,664 December 31, 2019 Commercial real estate $ 2,784 $ 1,234 $ 2,637 $ 6,655 $ 810,231 $ 816,886 $ 3,843 Residential real estate: Residential 2,574 683 1,433 4,690 593,037 597,727 4,548 Home equity 80 38 149 267 102,250 102,517 445 Commercial and industrial 1,356 645 148 2,149 246,744 248,893 1,003 Consumer 24 — 17 41 5,706 5,747 42 Total loans $ 6,818 $ 2,600 $ 4,384 $ 13,802 $ 1,757,968 $ 1,771,770 $ 9,881
Schedule of impaired loans by class	The following is a summary of impaired loans by class: Three Months Ended At March 31, 2020 March 31, 2020 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) Impaired Loans (1) Commercial real estate $ 19,008 $ 21,040 $ — $ 15,443 $ 110 Residential real estate 5,687 6,479 — 5,691 14 Home equity 399 454 — 434 3 Commercial and industrial 1,491 3,889 — 1,443 57 Consumer 39 52 — 40 — Total impaired loans $ 26,624 $ 31,914 $ — $ 23,051 $ 184 Three Months Ended At December 31, 2019 March 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In thousands) Impaired Loans (1) Commercial real estate $ 11,879 $ 13,914 $ — $ 16,856 $ 131 Residential real estate 5,695 6,383 — 7,190 44 Home equity 469 539 — 417 — Commercial and industrial 1,394 4,192 — 3,718 37 Consumer 42 56 — 57 — Total impaired loans $ 19,479 $ 25,084 $ — $ 28,238 $ 212 (1) Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings.
Schedule of troubled debt restructurings	There were no charge-offs on TDRs during the three months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 Number Pre- Post- (Dollars in thousands) Troubled Debt Restructurings Commercial and Industrial 1 $ 169 $ 169 Total 1 $ 169 $ 169
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, 2020 and 2019. Contractual Cash Expected Non- Accretable Loans (In thousands) Balance at December 31, 2019 $ 20,689 $ 15,909 $ 4,780 $ 4,092 $ 11,817 Collections (964 ) (608 ) (356 ) (108 ) (500 ) Dispositions (238 ) (238 ) — (205 ) (33 ) Balance at March 31, 2020 $ 19,487 $ 15,063 $ 4,424 $ 3,779 $ 11,284 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
Schedule of loans by risk rating	The following table presents our loans by risk rating for the periods indicated: Commercial Real Residential Home Commercial and Industrial Consumer Total (In thousands) March 31, 2020 Pass (Rated 1 – 4) $ 784,437 $ 592,084 $ 103,942 $ 218,714 $ 5,318 $ 1,704,495 Special Mention (Rated 5) 20,931 — — 14,932 — 35,863 Substandard (Rated 6) 30,382 5,656 474 23,041 38 59,591 Total $ 835,750 $ 597,740 $ 104,416 $ 256,687 $ 5,356 $ 1,799,949 December 31, 2019 Pass (Rated 1 – 4) $ 766,124 $ 591,911 $ 101,908 $ 222,847 $ 5,705 $ 1,688,495 Special Mention (Rated 5) 23,138 — — 2,796 — 25,934 Substandard (Rated 6) 27,624 5,816 609 23,250 42 57,341 Total $ 816,886 $ 597,727 $ 102,517 $ 248,893 $ 5,747 $ 1,771,770

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule of stock option activity	A summary of stock option activity for the three months ended March 31, 2020 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2019 218,214 $ 6.42 2.62 $ 695 Exercised — — — — Outstanding at March 31, 2020 218,214 $ 6.42 2.37 $ 77 Exercisable at March 31, 2020 218,214 $ 6.42 2.37 $ 77
Schedule of original and adjusted threshold and target metrics	The original and adjusted threshold, target and maximum metrics for 2019 under the 2017 grant 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 grant 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 grants 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 % The threshold, target and stretch metrics under the 2020 grants are as follows: Return on Equity Metrics Performance Period Ending Threshold Target Stretch December 31, 2020 5.00 % 5.48 % 6.00 % December 31, 2021 5.62 % 6.24 % 6.86 % December 31, 2022 6.29 % 6.99 % 7.69 % Earnings Per Share Metrics Performance Period Ending Threshold Target Stretch Three-year Cumulative Diluted Earnings Per Share $ 1.50 $ 1.65 $ 1.80
Schedule of the status of restricted stock awards	A summary of the status of restricted stock awards at March 31, 2020 is presented below: Shares Weighted Average Balance at December 31, 2019 172,866 $ 10.07 Shares granted 101,408 9.11 Shares forfeited (16,803 ) 10.15 Shares vested (41,894 ) 9.54 Shares reissued 18,645 9.11 Balance at March 31, 2020 234,222 $ 9.67

PENSION BENEFITS (Tables)

PENSION BENEFITS (Tables)	3 Months Ended
	Mar. 31, 2020
Retirement Benefits [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, 2020 2019 (In thousands) Service cost $ 356 $ 274 Interest cost 293 284 Expected return on assets (382 ) (308 ) Amortization of actuarial loss 99 32 Net periodic pension cost $ 366 $ 282

DERIVATIVES AND HEDGING ACTIV_2

DERIVATIVES AND HEDGING ACTIVITIES (Tables)	3 Months Ended
	Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of information about cash flow hedges	The following table presents information about interest rate swaps at March 31, 2020 and December 31, 2019: March 31, 2020 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB borrowings $ 35,000 2.5 0.74 % 3.54 % $ (2,777 ) Non-hedging derivatives: Loan-level swaps – dealer 13,688 13.2 3.40 % 3.75 % (1,858 ) Loan-level swaps – borrower 13,688 13.2 3.75 % 3.40 % 1,858 Total $ 62,376 $ (2,777 ) December 31, 2019 Notional Weighted Average Weighted Average Rate Estimated Fair Amount Maturity Receive Pay Value (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB borrowings $ 35,000 2.7 1.89 % 3.54 % $ (1,798 ) Non-hedging derivatives: Loan-level swaps – dealer 6,484 13.2 3.45 % 3.79 % (149 ) Loan-level swaps – borrower 6,484 13.2 3.79 % 3.45 % 149 Total $ 47,968 $ (1,798 )
Schedule of fair values of derivative financial instruments	The table below presents the fair value of our derivative financial instruments designated as hedging and non-hedging instruments as well as our classification on the balance sheet as of March 31, 2020 and December 31, 2019. March 31, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps – cash flow hedge Other Assets $ — Other Liabilities $ 2,777 Total derivatives designated as hedging instruments $ — $ 2,777 Derivatives not designated as hedging instruments: Interest rate swap – with customers Other Assets $ 1,858 $ — Interest rate swap – with counterparties — Other Liabilities 1,858 Total derivatives not designated as hedging instruments $ 1,858 $ 1,858 December 31, 2019 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps – cash flow hedge Other Assets $ — Other Liabilities $ 1,798 Total derivatives designated as hedging instruments $ — $ 1,798 Derivatives not designated as hedging instruments: Interest rate swap – with customers Other Assets $ 149 $ — Interest rate swap – with counterparties — Other Liabilities 149 Total derivatives not designated as hedging instruments $ 149 $ 149
Schedule of pre-tax net losses of cash flow hedges	The table below presents the pre-tax net losses of our cash flow hedges for the periods indicated: Amount of Loss Recognized in OCI on Derivative Three Months Ended March 31, 2020 2019 (In thousands) Interest rate swaps $ (1,123 ) $ (328 ) 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 table below presents the amount reclassified from accumulated other comprehensive loss into net income for interest rate swaps and termination fees: Amount of Loss Reclassified from OCI into Expense (Effective Portion) Three Months Ended March 31, 2020 2019 (In thousands) Interest rate swaps $ (429 ) $ (322 )

FAIR VALUE OF ASSETS AND LIAB_2

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2020
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, 2020 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale $ — $ 215,118 $ — $ 215,118 Marketable equity securities 6,875 — — 6,875 Interest rate swaps — 1,858 — 1,858 Total assets $ 6,875 $ 216,976 $ — $ 223,851 Liabilities: Interest rate swaps $ — $ 4,635 $ — $ 4,635 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: (In thousands) Securities available-for-sale $ — $ 227,708 $ — $ 227,708 Marketable equity securities 6,737 — — 6,737 Interest rate swaps — 149 — 149 Total assets $ 6,737 $ 227,857 $ — $ 234,594 Liabilities: Interest rate swaps $ — $ 1,947 $ — $ 1,947
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, 2020 and December 31, 2019. 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, 2020 March 31, 2020 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired loans $ — $ — $ 78 $ 106 At Three Months Ended December 31, 2019 March 31, 2019 Total Level 1 Level 2 Level 3 Losses (In thousands) (In thousands) Impaired loans $ — $ — $ 1,836 $ 130
Schedule of estimated fair values of financial instruments	The estimated fair values of our financial instruments are as follows: March 31, 2020 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 26,675 $ 26,675 $ — $ — $ 26,675 Securities available-for-sale 215,118 — 215,118 — 215,118 Marketable equity securities 6,875 6,875 — — 6,875 Federal Home Loan Bank of Boston and other restricted stock 11,994 — — 11,994 11,994 Loans - net 1,788,338 — — 1,764,293 1,764,293 Accrued interest receivable 5,220 — — 5,220 5,220 Mortgage servicing rights 203 — 252 — 252 Derivative assets 1,858 — 1,858 — 1,858 Liabilities: Deposits 1,705,984 — — 1,711,946 1,711,946 Short-term borrowings 45,000 — 45,030 — 45,030 Long-term debt 177,358 — 179,661 — 179,661 Accrued interest payable 572 — — 572 572 Derivative liabilities 4,635 — 4,635 — 4,635 December 31, 2019 Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents $ 24,741 $ 24,741 $ — $ — $ 24,741 Securities available-for-sale 227,708 — 227,708 — 227,708 Marketable equity securities 6,737 6,737 — — 6,737 Federal Home Loan Bank of Boston and other restricted stock 14,477 — — 14,477 14,477 Loans - net 1,761,932 — — 1,729,150 1,729,150 Accrued interest receivable 5,313 — — 5,313 5,313 Mortgage servicing rights 219 — 345 — 345 Derivative assets 149 — 149 — 149 Liabilities: Deposits 1,677,864 — — 1,679,851 1,679,851 Short-term borrowings 35,000 — 35,004 — 35,004 Long-term debt 205,515 — 205,850 — 205,850 Accrued interest payable 525 — — 525 525 Derivative liabilities 1,947 — 1,947 — 1,947

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Mar. 31, 2020Number
Massachusetts and Granby and Enfield, Connecticut [Member]
Number of banking offices in which bank operates	23

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings per common share:
Net income applicable to common stock	$ 2,080	$ 3,430
Average number of common shares issued	26,293,000	27,834,000
Less: Average unallocated ESOP Shares	(612,000)	(700,000)
Less: Average unvested equity incentive plan shares	(116,000)	(96,000)
Average number of common shares outstanding used to calculate basic earnings per common share	25,565,138	27,037,520
Effect of dilutive equity incentive plan		79,000
Effect of dilutive stock options	53,000	36,000
Average number of common shares outstanding used to calculate diluted earnings per common share	25,617,920	27,153,160
Basic earnings per share (in dollars per share)	$ 0.08	$ 0.13
Diluted earnings per share (in dollars per share)	$ 0.08	$ 0.13

COMPREHENSIVE INCOME (LOSS) (De

COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, net of tax amount	$ (6,268)	$ (8,968)	$ (10,197)	$ (13,416)
Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, before tax	3,734	(393)
Tax effect	(928)	71
Accumulated other comprehensive loss, net of tax amount	(2,806)	(322)	(4,207)	(7,400)
Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Fair value of derivatives used for cash flow hegdes	(2,733)	(1,773)
Termination fee on cancelled cash flow hedges	(1,260)	(1,526)
Accumulated other comprehensive loss, before tax	(3,993)	(3,299)
Tax effect	1,123	928
Accumulated other comprehensive loss, net of tax amount	(2,870)	(2,371)	(2,767)	(2,770)
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, before tax	(8,629)	(8,728)
Tax effect	2,425	2,453
Accumulated other comprehensive loss, net of tax amount	$ (6,204)	$ (6,275)	$ (3,223)	$ (3,246)

COMPREHENSIVE INCOME (LOSS) (_2

COMPREHENSIVE INCOME (LOSS) (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (8,968)	$ (13,416)
Cumulative-effect adjustment due to change in accounting principle (ASU 2017-08)		7
Current-period other comprehensive income	2,700	3,212
Ending balance	(6,268)	(10,197)
Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(322)	(7,400)
Cumulative-effect adjustment due to change in accounting principle (ASU 2017-08)		7
Current-period other comprehensive income	3,128	3,186
Ending balance	(2,806)	(4,207)
Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(2,371)	(2,770)
Current-period other comprehensive income	(499)	3
Ending balance	(2,870)	(2,767)
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(6,275)	(3,246)
Current-period other comprehensive income	71	23
Ending balance	$ (6,204)	$ (3,223)

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale securities:
Amortized Cost	$ 211,384	$ 228,101
Gross Unrealized Gains	4,451	996
Gross Unrealized Losses	(717)	(1,389)
Fair Value	215,118	227,708
Government-Sponsored Enterprise Obligations [Member]
Available-for-sale securities:
Amortized Cost		20,150
Gross Unrealized Losses		(136)
Fair Value		20,014
State And Municipal Bonds [Member]
Available-for-sale securities:
Amortized Cost	2,716	2,718
Gross Unrealized Gains	94	95
Fair Value	2,810	2,813
Corporate Bonds [Member]
Available-for-sale securities:
Amortized Cost	7,789	7,800
Gross Unrealized Gains	33	88
Gross Unrealized Losses	(477)	(22)
Fair Value	7,345	7,866
Debt Securities [Member]
Available-for-sale securities:
Amortized Cost	10,505	30,668
Gross Unrealized Gains	127	183
Gross Unrealized Losses	(477)	(158)
Fair Value	10,155	30,693
Government-Sponsored Mortgage-Backed Securities [Member]
Available-for-sale securities:
Amortized Cost	190,560	186,236
Gross Unrealized Gains	4,192	780
Gross Unrealized Losses	(148)	(1,015)
Fair Value	194,604	186,001
US Government Guaranteed Mortgage-Backed Securities [Member]
Available-for-sale securities:
Amortized Cost	10,319	11,197
Gross Unrealized Gains	132	33
Gross Unrealized Losses	(92)	(216)
Fair Value	10,359	11,014
Collateralized Mortgage Backed Securities [Member]
Available-for-sale securities:
Amortized Cost	200,879	197,433
Gross Unrealized Gains	4,324	813
Gross Unrealized Losses	(240)	(1,231)
Fair Value	$ 204,963	$ 197,015

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Schedule of Investments [Line Items]
Available for Sale Securities, Amortized Cost, Total	$ 211,384	$ 228,101
Available for Sale Securities, Fair Value, Total	215,118
Debt Securities [Member]
Schedule of Investments [Line Items]
Available for Sale Securities, Amortized Cost, Due after one year through five years	8,600
Available for Sale Securities, Amortized Cost, Due after five years through ten years	323
Available for Sale Securities, Amortized Cost, Due after ten years	1,582
Available for Sale Securities, Amortized Cost, Total	10,505
Available for Sale Securities, Fair Value, Due after one year through five years	8,161
Available for Sale Securities, Fair Value, Due after five years through ten years	362
Available for Sale Securities, Fair Value, Due after ten years	1,632
Available for Sale Securities, Fair Value, Total	10,155
Collateralized Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available for Sale Securities, Amortized Cost, Total	200,879	$ 197,433
Available for Sale Securities, Fair Value, Total	$ 204,963

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Gross gains realized	$ 148	$ 35
Gross losses realized	(125)
Net loss realized	$ 23	$ 35

SECURITIES (Details 3)

SECURITIES (Details 3) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available for sale, Less Than 12 Months Gross Unrealized Losses	$ 488	$ 277
Available for sale, Less Than 12 Months Fair Value	6,114	61,764
Available for sale, Over 12 Months Gross Unrealized Losses	229	1,112
Available for sale, Over 12 Months Fair Value	12,759	79,805
Government-Sponsored Mortgage-Backed Securities [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses	11	122
Available for sale, Less Than 12 Months Fair Value	1,906	42,834
Available for sale, Over 12 Months Gross Unrealized Losses	137	893
Available for sale, Over 12 Months Fair Value	9,245	70,581
US Government Guaranteed Mortgage-Backed Securities [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses		13
Available for sale, Less Than 12 Months Fair Value		2,783
Available for sale, Over 12 Months Gross Unrealized Losses	92	203
Available for sale, Over 12 Months Fair Value	3,514	4,688
Corporate Bonds [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses	477	16
Available for sale, Less Than 12 Months Fair Value	$ 4,208	1,623
Available for sale, Over 12 Months Gross Unrealized Losses		6
Available for sale, Over 12 Months Fair Value		3,046
Government-Sponsored Enterprise Obligations [Member]
Available for sale, Less Than 12 Months Gross Unrealized Losses		126
Available for sale, Less Than 12 Months Fair Value		14,524
Available for sale, Over 12 Months Gross Unrealized Losses		10
Available for sale, Over 12 Months Fair Value		$ 1,490

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cumulative-effect adjustment due to change in accounting principle		$ 7
Proceeds from redemptions and sales	$ 8,243	21,642
Collateralized Mortgage Backed Securities [Member]
Fair value of collateralized public deposits	$ 56,400
Securities [Member]
Cumulative-effect adjustment due to change in accounting principle		7
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, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 1,799,949	$ 1,771,770
Premiums and deferred loan fees and costs, net	4,226	4,264
Allowance for loan losses	(15,837)	(14,102)	$ (11,879)	$ (12,053)
Net loans	1,788,338	1,761,932
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	835,750	816,886
Allowance for loan losses	(7,780)	(6,807)	(5,205)	(5,260)
Residential Real Estate - Residential 1-4 Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	597,740	597,727
Residential Real Estate - Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	104,416	102,517
Commercial And Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	256,687	248,893
Allowance for loan losses	(3,640)	(3,183)	(2,954)	(3,114)
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	5,356	5,747
Allowance for loan losses	$ (239)	$ (203)	$ (144)	$ (135)

LOANS AND ALLOWANCE FOR LOAN _4

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Servicing Asset
Balance at the beginning of period:	$ 219	$ 286
Amortization	(16)	(17)
Balance at the end of period	203	269
Fair value at the end of period	$ 252	$ 416

LOANS AND ALLOWANCE FOR LOAN _5

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Balance at beginning	$ 14,102	$ 12,053
Provision (credit)	2,100	50
Charge-offs	(379)	(293)
Recoveries	14	69
Balance at end	15,837	11,879
Commercial Real Estate [Member]
Balance at beginning	6,807	5,260
Provision (credit)	1,010	24
Charge-offs	(37)	(116)
Recoveries		37
Balance at end	7,780	5,205
Residential Real Estate [Member]
Balance at beginning	3,920	3,556
Provision (credit)	357	108
Charge-offs	(106)	(94)
Recoveries	1	1
Balance at end	4,172	3,571
Commercial And Industrial [Member]
Balance at beginning	3,183	3,114
Provision (credit)	655	(127)
Charge-offs	(199)	(37)
Recoveries	1	4
Balance at end	3,640	2,954
Consumer [Member]
Balance at beginning	203	135
Provision (credit)	61	28
Charge-offs	(37)	(46)
Recoveries	12	27
Balance at end	239	144
Unallocated [Member]
Balance at beginning	(11)	(12)
Provision (credit)	17	17
Balance at end	$ 6	$ 5

LOANS AND ALLOWANCE FOR LOAN _6

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Amount of allowance for non-impaired loans	$ 15,837	$ 14,102
Total allowance for loan losses	15,837	14,102	$ 11,879	$ 12,053
Impaired loans	15,340	7,662
Non-impaired loans	1,773,325	1,752,291
Impaired loans acquired with deteriorated credit quality	11,284	11,817
Total loans	1,799,949	1,771,770
Commercial Real Estate [Member]
Amount of allowance for non-impaired loans	7,780	6,807
Total allowance for loan losses	7,780	6,807	5,205	5,260
Impaired loans	11,025	3,457
Non-impaired loans	816,742	805,007
Impaired loans acquired with deteriorated credit quality	7,983	8,422
Total loans	835,750	816,886
Residential Real Estate [Member]
Amount of allowance for non-impaired loans	4,172	3,920
Total allowance for loan losses	4,172	3,920	3,571	3,556
Impaired loans	3,535	3,575
Non-impaired loans	696,070	694,080
Impaired loans acquired with deteriorated credit quality	2,551	2,589
Total loans	702,156	700,244
Commercial And Industrial [Member]
Amount of allowance for non-impaired loans	3,640	3,183
Total allowance for loan losses	3,640	3,183	2,954	3,114
Impaired loans	741	588
Non-impaired loans	255,196	247,499
Impaired loans acquired with deteriorated credit quality	750	806
Total loans	256,687	248,893
Consumer [Member]
Amount of allowance for non-impaired loans	239	203
Total allowance for loan losses	239	203	144	135
Impaired loans	39	42
Non-impaired loans	5,317	5,705
Total loans	5,356	5,747
Unallocated [Member]
Amount of allowance for non-impaired loans	6	(11)
Total allowance for loan losses	$ 6	$ (11)	$ 5	$ (12)

LOANS AND ALLOWANCE FOR LOAN _7

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Total Past Due Loans	$ 12,448	$ 13,802
Total Current Loans	1,787,501	1,757,968
Total loans	1,799,949	1,771,770
Non-Accrual Loans	9,664	9,881
30-59 Days Past Due [Member]
Total Past Due Loans	5,364	6,818
60 - 89 Days Past Due [Member]
Total Past Due Loans	2,371	2,600
Greater than 90 Days Past Due [Member]
Total Past Due Loans	4,713	4,384
Commercial Real Estate [Member]
Total Past Due Loans	5,169	6,655
Total Current Loans	830,581	810,231
Total loans	835,750	816,886
Non-Accrual Loans	3,653	3,843
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Total Past Due Loans	1,473	2,784
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member]
Total Past Due Loans	423	1,234
Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member]
Total Past Due Loans	3,273	2,637
Residential Real Estate - Residential 1-4 Family [Member]
Total Past Due Loans	4,774	4,690
Total Current Loans	592,966	593,037
Total loans	597,740	597,727
Non-Accrual Loans	4,551	4,548
Residential Real Estate - Residential 1-4 Family [Member] | 30-59 Days Past Due [Member]
Total Past Due Loans	2,477	2,574
Residential Real Estate - Residential 1-4 Family [Member] | 60 - 89 Days Past Due [Member]
Total Past Due Loans	1,463	683
Residential Real Estate - Residential 1-4 Family [Member] | Greater than 90 Days Past Due [Member]
Total Past Due Loans	834	1,433
Residential Real Estate - Home Equity [Member]
Total Past Due Loans	457	267
Total Current Loans	103,959	102,250
Total loans	104,416	102,517
Non-Accrual Loans	311	445
Residential Real Estate - Home Equity [Member] | 30-59 Days Past Due [Member]
Total Past Due Loans	185	80
Residential Real Estate - Home Equity [Member] | 60 - 89 Days Past Due [Member]
Total Past Due Loans	123	38
Residential Real Estate - Home Equity [Member] | Greater than 90 Days Past Due [Member]
Total Past Due Loans	149	149
Commercial And Industrial [Member]
Total Past Due Loans	2,012	2,149
Total Current Loans	254,675	246,744
Total loans	256,687	248,893
Non-Accrual Loans	1,110	1,003
Commercial And Industrial [Member] | 30-59 Days Past Due [Member]
Total Past Due Loans	1,212	1,356
Commercial And Industrial [Member] | 60 - 89 Days Past Due [Member]
Total Past Due Loans	358	645
Commercial And Industrial [Member] | Greater than 90 Days Past Due [Member]
Total Past Due Loans	442	148
Consumer [Member]
Total Past Due Loans	36	41
Total Current Loans	5,320	5,706
Total loans	5,356	5,747
Non-Accrual Loans	39	42
Consumer [Member] | 30-59 Days Past Due [Member]
Total Past Due Loans	17	24
Consumer [Member] | 60 - 89 Days Past Due [Member]
Total Past Due Loans	4
Consumer [Member] | Greater than 90 Days Past Due [Member]
Total Past Due Loans	$ 15	$ 17

LOANS AND ALLOWANCE FOR LOAN _8

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Total Impaired loans:
Recorded Investment	[1]	$ 26,624		$ 19,479
Unpaid Principal Balance	[1]	31,914		25,084
Average Recorded Investment	[1]	23,051	$ 28,238
Interest Income Recognized	[1]	184	212
Commercial Real Estate [Member]
Total Impaired loans:
Recorded Investment	[1]	19,008		11,879
Unpaid Principal Balance	[1]	21,040		13,914
Average Recorded Investment	[1]	15,443	16,856
Interest Income Recognized	[1]	110	131
Residential Real Estate [Member]
Total Impaired loans:
Recorded Investment	[1]	5,687		5,695
Unpaid Principal Balance	[1]	6,479		6,383
Average Recorded Investment	[1]	5,691	7,190
Interest Income Recognized	[1]	14	44
Residential Real Estate - Home Equity [Member]
Total Impaired loans:
Recorded Investment	[1]	399		469
Unpaid Principal Balance	[1]	454		539
Average Recorded Investment	[1]	434	417
Interest Income Recognized	[1]	3
Commercial And Industrial [Member]
Total Impaired loans:
Recorded Investment	[1]	1,491		1,394
Unpaid Principal Balance	[1]	3,889		4,192
Average Recorded Investment	[1]	1,443	3,718
Interest Income Recognized	[1]	57	37
Consumer [Member]
Total Impaired loans:
Recorded Investment	[1]	39		42
Unpaid Principal Balance	[1]	52		$ 56
Average Recorded Investment	[1]	$ 40	$ 57
[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) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)Number
Troubled Debt Restructurings:
Number of Contracts | Number	1
Pre-Modification Outstanding Recorded Investment	$ 169
Post-Modification Outstanding Recorded Investment	$ 169
Commercial And Industrial [Member]
Troubled Debt Restructurings:
Number of Contracts | Number	1
Pre-Modification Outstanding Recorded Investment	$ 169
Post-Modification Outstanding Recorded Investment	$ 169

LOANS AND ALLOWANCE FOR LOAN_10

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) - Chicopee Bancorp Inc [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Loans receivable - Contractual Required Payments Receivable beginning	$ 20,689	$ 24,793
Collections - Contractually Required Payments Receivable	(964)	(702)
Dispositions - Contractually Required Payments Receivable	(238)	(71)
Loans receivable - Contractual Required Payments Receivable ending	19,487	24,020
Loans receivable - Cash Expected To Be Collected beginning	15,909	19,883
Collections - Cash Expected to be Collected	(608)	(646)
Dispositions - Cash Expected to be Collected	(238)	(71)
Loans receivable - Cash Expected To Be Collected ending	15,063	19,166
Loans receivable - Non-Accretable Discount beginning	4,780	4,910
Collections - Non-Accretable DIscount	(356)	(56)
Loans receivable - Non-Accretable Discount ending	4,424	4,854
Loans receivable - Accretable Yield beginning	4,092	4,854
Collections - Accretable Yield	(108)	(158)
Dispositions - Accretable Yield	(205)	(31)
Loans receivable - Accretable Yield ending	3,779	4,665
Loans receivable - Outstanding beginning	11,817	15,029
Collections	(500)	(488)
Dispositions	(33)	(40)
Loans receivable - Outstanding ending	$ 11,284	$ 14,501

LOANS AND ALLOWANCE FOR LOAN_11

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	$ 1,799,949	$ 1,771,770
Pass (Rated 1 - 4) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	1,704,495	1,688,495
Special Mention (Rated 5) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	35,863	25,934
Substandard (Rated 6) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	59,591	57,341
Commercial Real Estate [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	835,750	816,886
Commercial Real Estate [Member] | Pass rated 1-4 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	784,437	766,124
Commercial Real Estate [Member] | Special Mention (Rated 5) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	20,931	23,138
Commercial Real Estate [Member] | Substandard (Rated 6) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	30,382	27,624
Residential Real Estate - Residential 1-4 Family [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	597,740	597,727
Residential Real Estate - Residential 1-4 Family [Member] | Pass rated 1-4 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	592,084	591,911
Residential Real Estate - Residential 1-4 Family [Member] | Substandard (Rated 6) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	5,656	5,816
Residential Real Estate - Home Equity [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	104,416	102,517
Residential Real Estate - Home Equity [Member] | Pass rated 1-4 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	103,942	101,908
Residential Real Estate - Home Equity [Member] | Substandard (Rated 6) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	474	609
Commercial And Industrial [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	256,687	248,893
Commercial And Industrial [Member] | Pass rated 1-4 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	218,714	222,847
Commercial And Industrial [Member] | Special Mention (Rated 5) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	14,932	2,796
Commercial And Industrial [Member] | Substandard (Rated 6) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	23,041	23,250
Consumer [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	5,356	5,747
Consumer [Member] | Pass rated 1-4 [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	5,318	5,705
Consumer [Member] | Substandard (Rated 6) [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	$ 38	$ 42

LOANS AND ALLOWANCE FOR LOAN_12

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / Loans	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Receivables [Abstract]
Serviced commercial loans for participants	$ 24,000		$ 24,200
Mortgage loans serviced for others	47,000		$ 48,200
Net service fee income	$ 14	$ 18
Weighted average prepayment speed, PSA	243.00%
Weighted average internal rate of return	12.05%
Weighted average servicing fee	0.25%
Net cost to service loans | $ / Loans	83.53
Loan-to-value ratio requiring private mortgage insurance	80.00%
Troubled debt restructuring	$ 169

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2016	Mar. 31, 2020	Mar. 31, 2019
Amortization of core deposit intangible		$ 93	$ 94
Core Deposit Intangibles [Member]
Acquired core deposit intangible	$ 4,500
Amortized period of core deposit intangible	12 years
Future amortization of core deposit intangible assets years 1-5		375
Future amortization of core deposit intangible assets thereafter		$ 1,300

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Options, Outstanding
Outstanding at beginning of period | shares	218,214
Outstanding at end of period | shares	218,214
Exercisable at end of period | shares	218,214
Options, Outstanding, Weighted Average Exercise Price
Outstanding at beginning of period | $ / shares	$ 6.42
Outstanding at end of period | $ / shares	6.42
Exercisable at end of period | $ / shares	$ 6.42
Options, Outstanding, Weighted Average Remaining Contractual Term (in years)
Outstanding at beginning of period	2 years 7 months 13 days
Outstanding at end of period	2 years 4 months 13 days
Exercisable at end of period	2 years 4 months 13 days
Options, Outstanding, Aggregate Intrinsic Value
Outstanding at beginning of period | $	$ 695
Outstanding at end of period | $	77
Exercisable at end of period | $	$ 77

SHARE-BASED COMPENSATION (Det_2

SHARE-BASED COMPENSATION (Details 1)	3 Months Ended
	Mar. 31, 2020$ / shares
LTI Plan for 2017 [Member] | 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] | Adjusted Threshold [Member]
December 31, 2019	7.09%
LTI Plan for 2017 [Member] | Original Target [Member]
December 31, 2019	7.20%
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%
LTI Plan for 2020 [Member] | Original Threshold [Member]
December 31, 2020	5.00%
December 31, 2021	5.62%
December 31, 2022	6.29%
Three-year Cumulative Diluted Earnings Per Share	$ 1.50
LTI Plan for 2020 [Member] | Original Target [Member]
December 31, 2020	5.48%
December 31, 2021	6.24%
December 31, 2022	6.99%
Three-year Cumulative Diluted Earnings Per Share	$ 1.65
LTI Plan for 2020 [Member] | Stretch [Member]
December 31, 2020	6.00%
December 31, 2021	6.86%
December 31, 2022	7.69%
Three-year Cumulative Diluted Earnings Per Share	$ 1.80

SHARE-BASED COMPENSATION (Det_3

SHARE-BASED COMPENSATION (Details 2) - Restricted Stock [Member]	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Restricted Stock Awards
Beginning balance | shares	172,866
Shares granted | shares	101,408
Shares forfeited | shares	(16,803)
Shares vested | shares	(41,894)
Shares reissued | shares	18,645
Ending balance | shares	234,222
Weighted Average Grant Date Fair Value
Beginning balance | $ / shares	$ 10.07
Shares granted | $ / shares	9.11
Shares forfeited | $ / shares	10.15
Shares vested | $ / shares	9.54
Shares reissued | $ / shares	9.11
Ending balance | $ / shares	$ 9.67

SHARE-BASED COMPENSATION (Det_4

SHARE-BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands	1 Months Ended						3 Months Ended
	Feb. 29, 2020	Feb. 28, 2020	Feb. 28, 2019	Jan. 31, 2018	May 31, 2017	Jan. 31, 2015	Mar. 31, 2020	Mar. 31, 2019	May 31, 2014
Stock Options
Cash received for options exercised								$ 64
Restricted Stock Awards
Share-based compensation expense							$ 182	$ 195
LTI Plan for 2019 [Member]
Restricted Stock Awards
Shares granted			108,718
RSA Plan [Member]
Restricted Stock Awards
Share based compensation, shares available for grant							25,927
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 2020 [Member]
Restricted Stock Awards
Shares granted		120,053
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
Time Based Shares [Member] | LTI Plan for 2017 [Member]
Restricted Stock Awards
Shares granted					55,159
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 2020 [Member]
Restricted Stock Awards
Shares granted		69,898
Time Based Shares [Member] | LTI Plan for 2020 [Member] | Award, Tranche One [Member]
Restricted Stock Awards
Shares granted		19,760
Vesting term		1 year
Time Based Shares [Member] | LTI Plan for 2020 [Member] | Award, Tranche Two [Member]
Restricted Stock Awards
Shares granted		50,138
Vesting term		3 years
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] | 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%
Performance Shares [Member] | LTI Plan for 2017 [Member]
Restricted Stock Awards
Shares granted					33,883
Shares vested	15,898
Shares forfeited	17,985
Vesting term					3 years
Performance Shares [Member] | LTI Plan for 2017 [Member] | 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] | 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 2020 [Member]
Restricted Stock Awards
Shares granted		50,155
Vesting term		3 years
Performance Shares [Member] | LTI Plan for 2020 [Member] | Maximum [Member]
Restricted Stock Awards
Percent of awards participants may earn		150.00%
Performance Shares [Member] | LTI Plan for 2020 [Member] | Original Threshold [Member]
Restricted Stock Awards
Percent of awards participants may earn		50.00%
Performance Shares [Member] | LTI Plan for 2020 [Member] | Original Target [Member]
Restricted Stock Awards
Percent of awards participants may earn		100.00%
New Stock-Based Compensation Plan ("RSA Plan") [Member]
Restricted Stock Awards
Shares authorized									516,000
Shares granted						48,560
Vesting term						5 years

SHORT-TERM BORROWINGS AND LON_2

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Long-term debt	$ 177,358	$ 205,515
FHLBB Ideal Way Line of Credit [Member]
Line of credit available	9,500	9,500
Correspondent Bank 1 [Member]
Line of credit available	15,000		$ 15,000
Correspondent Bank 2 [Member]
Line of credit available	50,000		$ 50,000
FRB Discount Window [Member]
Line of credit available	$ 23,900	$ 23,900
FHLBB Advances [Member]
Weighted average rate	0.71%	1.86%
Short-term borrowings	$ 45,000	$ 35,000
Long-term debt	177,400	$ 205,500
FHLBB Advances [Member] | Maximum [Member]
Borrowing capacity	$ 247,800

PENSION BENEFITS (Details)

PENSION BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Retirement Benefits [Abstract]
Service cost	$ 356	$ 274
Interest cost	293	284
Expected return on assets	(382)	(308)
Amortization of actuarial loss	99	32
Net periodic pension cost	$ 366	$ 282

PENSION BENEFITS (Details Narra

PENSION BENEFITS (Details Narrative)	3 Months Ended
	Mar. 31, 2020Number
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	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Notional Amount	$ 62,376	$ 47,968
Estimated Fair Value	(2,777)	(1,798)
Non-Hedging Derivatives [Member]
Notional Amount	27,400	13,000
Loan-Level Swaps - Dealer [Member] | Non-Hedging Derivatives [Member]
Notional Amount	$ 13,688	$ 6,484
Weighted Average Maturity	13 years 2 months 12 days	13 years 2 months 12 days
Weighted Average Rate Received	3.40%	3.45%
Weighted Average Rate Paid	3.75%	3.79%
Estimated Fair Value	$ (1,858)	$ (149)
Loan-Level Swaps - Borrower [Member] | Non-Hedging Derivatives [Member]
Notional Amount	$ 13,688	$ 6,484
Weighted Average Maturity	13 years 2 months 12 days	13 years 2 months 12 days
Weighted Average Rate Received	3.75%	3.79%
Weighted Average Rate Paid	3.40%	3.45%
Estimated Fair Value	$ 1,858	$ 149
Derivatives Designated As Cash Flow Hedges [Member] | Interest Rate Swap Agreement [Member]
Notional Amount	$ 35,000	$ 35,000
Weighted Average Maturity	2 years 6 months	2 years 8 months 12 days
Weighted Average Rate Received	0.74%	1.89%
Weighted Average Rate Paid	3.54%	3.54%
Estimated Fair Value	$ (2,777)	$ (1,798)

DERIVATIVES AND HEDGING ACTIV_4

DERIVATIVES AND HEDGING ACTIVITIES (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Designated as Hedging Instrument [Member]
Fair value of derivative liability	$ 2,777	$ 1,798
Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Other Liabilities [Member]
Fair value of derivative liability		1,798
Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Derivatives Designated As Cash Flow Hedges [Member] | Other Liabilities [Member]
Fair value of derivative liability	2,777
Non-Hedging Derivatives [Member]
Fair value of derivative assets	1,858	149
Fair value of derivative liability	1,858	149
Non-Hedging Derivatives [Member] | Interest Rate Swap Agreement [Member] | Customers [Member]
Fair value of derivative assets	1,858	149
Non-Hedging Derivatives [Member] | Interest Rate Swap Agreement [Member] | Counterparties [Member]
Fair value of derivative liability	$ 1,858	$ 149

DERIVATIVES AND HEDGING ACTIV_5

DERIVATIVES AND HEDGING ACTIVITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest Rate Swap [Member] | Derivatives Designated As Cash Flow Hedges [Member]
Amount of Gain (Loss) Recognized in OCI on Derivative	$ (1,123)	$ (328)

DERIVATIVES AND HEDGING ACTIV_6

DERIVATIVES AND HEDGING ACTIVITIES (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest Rate Swap [Member]
Amount of Gain (Loss) Reclassified from OCI into Expense (Effective Portion)	$ (429)	$ (322)

DERIVATIVES AND HEDGING ACTIV_7

DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivatives notional amount	$ 62,376	$ 47,968
Estimated amount to be reclassified during the next 12 month period	1,800
Termination value of derivatives in a net liability position	2,800	1,800
Cash posted as collateral	2,800
Collateralized Mortgage Backed Securities [Member]
Fair value of mortgage backed securities collateralized	1,900
Designated as Hedging Instrument [Member]
Derivatives notional amount	35,000	35,000
Non-Hedging Derivatives [Member]
Derivatives notional amount	$ 27,400	$ 13,000

FAIR VALUE OF ASSETS AND LIABLI

FAIR VALUE OF ASSETS AND LIABLITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available for sale securities	$ 215,118
Marketable equity securities	6,875	$ 6,737
Interest rate swaps - Assets	1,858	149
Interest rate swaps - Liabilities	4,635	1,947
Fair Value Level 1 [Member]
Marketable equity securities	6,875	6,737
Fair Value Level 2 [Member]
Interest rate swaps - Assets	1,858	149
Interest rate swaps - Liabilities	4,635	1,947
Recurring [Member]
Available for sale securities	215,118	227,708
Marketable equity securities	6,875	6,737
Interest rate swaps - Assets	1,858	149
Total assets	223,851	234,594
Interest rate swaps - Liabilities	4,635	1,947
Recurring [Member] | Fair Value Level 1 [Member]
Marketable equity securities	6,875	6,737
Total assets	6,875	6,737
Recurring [Member] | Fair Value Level 2 [Member]
Available for sale securities	215,118	227,708
Interest rate swaps - Assets	1,858	149
Total assets	216,976	227,857
Interest rate swaps - Liabilities	$ 4,635	$ 1,947

FAIR VALUE OF ASSETS AND LIAB_3

FAIR VALUE OF ASSETS AND LIABLITIES (Details 1) - Fair Value Inputs Level 3 [Member] - Nonrecurring [Member] - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Impaired Loans	$ 78	$ 1,836
Total Assets	$ 106	$ 130

FAIR VALUE OF ASSETS AND LIAB_4

FAIR VALUE OF ASSETS AND LIABLITIES (Details 2) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets:
Cash and cash equivalents	$ 26,675	$ 24,741
Securities available-for-sale	215,118	227,708
Marketable equity securities	6,875	6,737
Federal Home Loan Bank of Boston and other restricted stock	11,994	14,477
Loans - net	1,764,293	1,729,150
Accrued interest receivable	5,220	5,313
Mortgage servicing rights	252	345
Derivative assets	1,858	149
Liabilities:
Deposits	1,711,946	1,679,851
Short-term borrowings	45,030	35,004
Long-term debt	179,661	205,850
Accrued interest payable	572	525
Derivative liabilities	4,635	1,947
Fair Value Level 1 [Member]
Assets:
Cash and cash equivalents	26,675	24,741
Marketable equity securities	6,875	6,737
Fair Value Level 2 [Member]
Assets:
Securities available-for-sale	215,118	227,708
Mortgage servicing rights	252	345
Derivative assets	1,858	149
Liabilities:
Short-term borrowings	45,030	35,004
Long-term debt	179,661	205,850
Derivative liabilities	4,635	1,947
Fair Value Level 3 [Member]
Assets:
Federal Home Loan Bank of Boston and other restricted stock	11,994	14,477
Loans - net	1,764,293	1,729,150
Accrued interest receivable	5,220	5,313
Liabilities:
Deposits	1,711,946	1,679,851
Accrued interest payable	572	525
Carrying Value [Member]
Assets:
Cash and cash equivalents	26,675	24,741
Securities available-for-sale	215,118	227,708
Marketable equity securities	6,875	6,737
Federal Home Loan Bank of Boston and other restricted stock	11,994	14,477
Loans - net	1,788,338	1,761,932
Accrued interest receivable	5,220	5,313
Mortgage servicing rights	203	219
Derivative assets	1,858	149
Liabilities:
Deposits	1,705,984	1,677,864
Short-term borrowings	45,000	35,000
Long-term debt	177,358	205,515
Accrued interest payable	572	525
Derivative liabilities	$ 4,635	$ 1,947